The 401(k) is required to report any rollover on Form 1099-R no matter how the funds are moved.
This Form 1099-R must be entered into TurboTax. The gross amount must be included on line 5a of your Form 1040 but the amount rolled over to the traditional IRA will be excluded from the taxable amount on line 5b. TurboTax will also include the ROLLOVER notation next to this line.
