If the Forms has code G in box 7, make sure that box 2a has a zero to indicate that the rollover is nontaxable. The distribution from the 403(b) is considered to be income, but nontaxable income. This nontaxable income must be reported on Form 1040 line 5a but the rollover means that the entire amount is excluded from taxable income on line 5b. It has no other effect on your tax return.
