401(k) Rollovers show as income but are not taxable. Turbotax will show the distribution on Form 1040 Line 16a (for Pensions and Annuities) with the word ROLLOVER next to it, and there will be no tax
consequence.
Please see the screenshot below that shows the screen, in TurboTax, where you would show the rollover designation.
In TurboTax, jump directly to the entry
screen for Form 1099-R:
1. In
the TurboTax search box, enter 1099-r (with the dashes) and press the Enter
key,
Then click on the jump to
1099-R link.
2. On
the Your 1099-R screen, check the Yes button by Did
you have any of these types of income in 2015?, then click Continue.
3. Follow
the prompts to either import or enter your RRB-1099-R form and finish the
interviews.
Important: if a Form 1099-R box is blank, leave
the box blank in TurboTax! Do not enter a
"0" (zero). Be sure to answer the question that you
moved the money to another retirement account (this could be the same retirement
account).
If you had tax withholding on Form
1099-R box 4, you will get it back as either a refund or when it is applied as
withholding for tax owed (liabilities) on your Form 1040.
