In fact, the both *are* distributions (income) which must be reported, but the rollover from the 401(k) to the traditional IRA is not a taxable distribution (and is not taxable income). Properly entered to indicate that the code G distribution was *not* rolled over to any kind of Roth account (it was rolled over to a traditional IRA), TurboTax will include it on Form 1040 line 16a or Form 1040A line 12a but exclude it from the amount on line 16b or 12b, and will place the word ROLLOVER next to this line. The taxable distribution from the traditional IRA will be included on line 15b or 11b.
