The 1099R will have Code G if the 401K plan did a Direct Transfer to the IRA. You are not understanding the prior posts. Your 1099R code 7 is right. Now another problem is....when you put it in the IRA did you also put back in the 20% that was withheld for taxes? If you did not replace the 20% from your own money then the 20% became a distribution itself and taxable income.
After you enter the 1099R say NO it was NOT a RMD (since RMDs were not required) Then it will ask what you did with the money. Say you rolled it over. Then it will show on on 1040 line 5a gross amount and the word ROLLOVER by line 5b Taxable amount. Line 5b will be zero or the 20% if you didn't put it back.
