Both must be entered. Codes 1 and M are separate codes in the same box 7 and each code must be selected separately in the two box-7 drop-down boxes of TurboTax's 1099-R form.
The code 1 on each of the forms indicates that each of these distributions is subject to a 10% early-distribution penalty unless rolled over to another retirement account or you have a penalty exception that applies. The deadline for rolling over the distribution reported with only code 1 was 60-days after the date of that distribution. Should you be able to come up with the money to do so, the deadline for rolling over the offset distribution reported on the Form 1099-R that includes code M in box 7 is the due date of your tax return, including extensions, for the year of the distribution.
