Yes, this is handled just like the rollover of a distribution from a 401(k). It is a reportable transaction but the amount rolled over to the traditional IRA will be treated as nontaxable income. The gross amount will appear on Form 1040 line 5a but the nontaxable amount (the entire amount if the entire gross amount was rolled over) will be excluded from line 5b. The word ROLLOVER will be present next to line 5b.
