Donna, is it getting clearer now? How much was it? Like did you take out 150,000 and so they took 20% (30,000) for taxes? You have to use the code 7. Code G would be only if they put the whole 100% (150,000) into the IRA (or back into the 401K). But it sounds like you only rolled over 80%. You should have 150,000 on 1040 line 5a and 30,000 (the 20%) as taxable on line 5b with the word ROLLOVER by 5b .
The 20% for taxes would be like if they sent you a check for the 100% to start with and then you sent the 20% to the IRS yourself as an estimated tax payment. You got the full 100% but you only rolled over 80%.
Are you using the Online version or the Desktop program? Sounds like the Desktop program if you can see the forms? By the way, The income summary and review screens will show the full gross amount as income so you need to check the actual 1040 line 4 or 5 and make sure it says ROLLOVER by 4b/5b and has the right taxable amount. Which in your case should be the 20%.
