There is no real bug in the software with regard to this. The issue comes in when the payer does not properly show a zero in box 2a when box 2b Taxable amount not determined is not marked. If the Form 1099-R properly shows a zero in box 2a for a rollover from a qualified retirement plan like a 403(b) to a traditional IRA, TurboTax does not include the rollover in taxable income and it does not add to AGI.
