What you see in TurboTax is correct. Your total income under tax code is indeed $150, with $50 being taxable and $100 being nontaxable. The $100 nontaxable amount must be included on Form 1040 line 5a but excluded from line 5b with the word ROLLOVER next to this line. The $50 taxable amount must be included on line 4b. The nontaxable amount has no other effect on your tax return.
