You have to indicate in TurboTax that the money was rolled over to an IRA, so it is not taxable.
In TurboTax Online, enter your form 1099-R by following these steps:
- Open your tax return
- Click on Federal in the left-hand column, then on Wages & Income
- Navigate to the list of income categories
- Locate the section Retirement Plans and Social Security and click on the arrow on the right
- Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).
- Enter your form 1099-R and follow the interview
- When you arrive to the page Tell us if you moved the money through a rollover or conversion, click on the radio button I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)
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