You will receive a form 1099-R reporting ordinary income in box 2(a) and the net unrealized appreciation (NUA) on the stock in box 6. The amount in box 2(a) will be listed as ordinary income on line 5(b) of your Form 1040, pension income. You don't pay tax on the NUA until you sell the stock, at which time the stock sale will be reported on a form 1099-B. So, until you sell any of the stock, you just need to report the 1099-R in the Retirement Plans and Social Security seciton of TurboTax. When you sell stock, you will report the Form 1099-B in the Investments and Investment Income section of TurboTax, and then Stocks, Mutual Funds, Bonds, Other.
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