If you are looking at a Summary screen it will show the distribution as income even when the amount distributed was rolled over to another tax deferred retirement account.
Look at your form 1040 lines 5a and 5b. On Line 5a the word ROLLOVER should be entered on Line 5b the taxable amount entered should be a 0.
If you using the desktop editions click on Forms and open your Form 1040 to view.
If you are using the online editions -
Click on Tax Tools on the left side of the online program screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.
