You answer YES because you DID receive income even if it was not taxable income and was roiled over you simply put that income into another tax deferred retirement account. It is income but not taxable income. If not reported the IRS will assume that the rollover did not happen and you kept the money and will send a bill for the tax on the amount of the distribution.
Just enter the 1099-R exactly as it is.
That is why you report is on a income tax return.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
