A box 7 code G is a direct trustee-to-trustee rollover. If you were given a check then the check shroud have been make out to your IRA.
Since box 2a has an amount (I will assume that it is the same as box 1 unless there is also an amount in box 5) and is not zero then it would appear that it was being rolled into a Roth IRA which is taxable. Box 2a would be zero if being rolled into a Traditional IRA.
For 2017, the box 2b amount should have been on the 1040 form line 15b and included in your AGI as taxable income.
However, it you entered a code G 1099-R into TurboTax and answered NO to the rollover into a Roth IRA which would be taxable, then the only other possibility is that it was rolled into a Traditional IRA that is not taxable. It would appear that is what was done since it ended up not taxable. A code "G" can ONLY be rolled into a Roth IRA (taxable) or Traditional IRA (not taxable) and nothing else. TurboTax gives you no other choice because tax law does not allow anything else with a code G.
Are you saying that you did NOT complete the rollover?
What did you do with the money?
You never should have entered the 1099-R if it did not reflect what you actually did. If the 1099-R did not match the facts then you should have requested a corrected 1099-R from the plan trustee or used a substitute 1099-R coded to fit the facts.
Unfortunately this is what can happen when you enter a form that is different from what actually happened. Unless you actually rolled the money into a Traditional IRA you will owe the tax that should have been on your 2017 tax return had the 1099-R been entered properly.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
