The code 1 indicates that this was an indirect rollover, meaning that the money was distributed to you and you subsequently rolled the money over to another retirement account, rather than a direct rollover paid directly by your old plan custodian to the new plan custodian. As TurboTaxBillMc said, indicating in the follow-up that you rolled over this distribution will cause TurboTax to exclude the distribution from your taxable income and therefore not subject to penalty.
