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The code "G" in box 7 denotes that you made a direct rollover from your 401k to an IRA. That's allowed without penalty, and that's why you don't need a 5329. (That's the form on which you calculate a penalty, if one applies.) As to how you report this, if you look closely at the back it probably says to put the gross distribution amount (from box 1) on line 16a of your Form 1040. Since nothing is taxable, you'll put zero on line 16b. And you write "rollover" somewhere in the vicinity of line 16. (This is all spelled out in the detailed instructions for Lines 16a and 16b in the 1040 instruction booklet.) Do not attach the 1099-R to the return, but keep it for your records.

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