Retirement tax questions

Please clarify, are you sure you received a Form W2 from Fidelity?

The transfer of a retirement account is not taxable as long as long as it is done correctly. More importantly, it is never reported on a W-2 form. 

Please double check your form and then make sure you are entering it in the correct part of TurboTax. 

Assuming you actually received a 1099-R, here is where to enter it:

1. Select Federal on the left side menu.
2. Under  Wages & Income, find IRA, 401(k), Pension Plan Withdrawals (1099-R).
3. Select Add/ Edit to the right.
4. Answer Yes on the next screen.
5. Scroll to the bottom and click Skip this.
6. Click Continue.
7. Scroll to the bottom and select Change how I enter my form.
8. On the next screen select, I'll type it in myself.
9. On the next screen select 1099-R
10. Click Continue.
11. Fill in the next screen with the figures from your form. 
12. Continue until you finish this section.
13. If you are asked if you rolled the amount over, answer Yes. 

If you tried to enter your 1099-R in the W2 screens, you need to delete that as well.

1. Select Federal on the left side menu.
2. Select Income and Expenses toward upper left.
3. Select Start or Update to the right of W2 forms.
4. Delete the incorrect entry by clicking the trash can to the right of your entry.