You would only use code G if the Form 1099-R provided by the payer has code G in box 7. Code G indicates an amount that was moved to or from a qualified retirement plan directly between trustees as a direct rollover without the money ever being paid to the participant. The code 7 indicates that the money was NOT moved directly between trustees but was instead paid to the participant and any amount later rolled over by the participant would be an indirect rollover.
"enter the total RMD Amount by SUBTRACTING the amount of your rollover from the total reflected in Box 1."
This is backwards. The amount that is RMD is determined by law, not by the amount rolled over. The amount of the distribution that is RMD determines the amount that is eligible for rollover, not the other way around.
