Both must be entered. When entering the code G Form 1099-R be sure to answer No to each of the questions asking about a rollover to a Roth account. The box 1 amount from the code G Form 1099-R will be included on Form 1040 line 4c but will not be included on line 4d and will not add to your taxable income. The word ROLLOVER will appear next to line 4d
Assuming that you have no basis in nondeductible traditional IRA contributions previously reported on a Form 8606, the code 2 Form 1099-R will be included on line 4b and line 4a will be blank. The amount on line 4b is the only amount that adds to your taxable income.
