I tried your suggestions for answering all of the queries and it worked!!! Used Code 7 for both. 1040 looks correct. The screen shots of your example really helped.
Following your example did create two separate 1099s in TurboTax. Since now Schwab says they will pull down their issued 1099R where the two transaction were lumped together I feel better.
I apppreciate all of your help and lightening fast reponsiveness on this.
