I rolled over a 401(k) account from a previous job to my new 401(k). The check was rolled over directly to the new 401(k). I did not make any withdrawal. But TurboTax says that my 1099-R code is incorrect (box 7 has 'G' and the IRA/SEP box is checked). Is this an error on the form?
If the rollover was from a 401(k) plan, then the box indicating an IRA should not have been checked. Please ask the plan administration who generated the 1099-R to issue a corrected 1099-R.
When you get the corrected 1099-R, yes, please enter the 1099-R into TurboTax.
As you know, the direct rollover (code G in box 7) is a non-taxable event, but the amount of the rollover actually does print on page 1 of the 1040 in line 16a. Line 16b is, of course, zero. (On the 1040A, these are lines 12a and 12b, respectively)
TurboTax includes some of the information from your 1099-R in the e-file package that is sent to the IRS over and above what appears on the forms. You also enter the 1099-R because the IRS has been sent a copy of your 1099-R, and this keeps your reporting and the information reported to the IRS in balance (another reason why you need the corrected 1099-R).