The 1099-R received from a large plan administrator shows a line 1 and 2a taxable distribution from a 401K.  The taxpayer used the proceeds to fund a Roth IRA with the same firm that is the plan administrator.  The taxpayer funded the taxes from another source. Line 7 of the 1099-R is marked "G" which represents a rollover to a qualified plan.  The line 7 G entry in Proseries causes the distribution to be treated as tax free even though line 2A indicates the distribution is taxable.  Having no entry in Line G causes an error notice but does result in the distribution being taxable.  Living with the error notice appears to be the correct way to complete the return.  Seems like there should be some override created to eliminate an error notice where Line 2a indicates the distribution is taxable despite Line 7 being marked with code G.