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Yes, you must report this. Enter the Form 1099-R under Wages & Income -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R). In the follow-up, indicate that you moved the money to another retirement account and that you rolled the money over. The total amount distributed from the traditional IRA will appear on Form 1040 line 15a or Form 1040A line 11a but the amount rolled over will be excluded from the amount on line 15b or 11b. The word ROLLOVER will appear next to the line.
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