If you have made your first contribution to the SIMPLE IRA more than two years ago, you can roll it ( all ? ) into a Traditional IRA.
Otherwise it is a taxable distribution from the SIMPLE IRA and would be taxed on Federal and NJ income tax returns.
From the distribution code G, you can infer that the custodian determined that you do meet the rules.
If you meet the rules and can't get TurboTax to report it correctly, you'll have to override and file on paper.
