What code is in box 7 on the 1099R? A G is a direct transfer and not taxable.
If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 and make sure it’s right. For 1099R check 1040 line 4b or 4d for any taxable amount. If it was a rollover it should say ROLLOVER by it and 0 taxable.
That's correct, it's nontaxable income, meaning that it is reportable on your tax return but is not included in your AGI. You should see it being included on Form 1040 line 4c but excluded from the taxable amount on line 4d, along with the "ROLLOVER" notation next to line 4d.