I withdraw money from differed compensation plan , then roll over to traditional IRA. Do I need to report this.?

You will need to report the rollover, but you won't be taxed on the "income".  TurboTax tends to show it in the income summaries (so that you can see that it was entered), but it isn't counted as income on your tax return.  

Typically, your 1099-R form will be coded so that the rollover is treated as tax-free automatically if it is done in a transaction directly between the plan and your IRA custodian.  If the rollover is "indirect", meaning that you receive the funds and then contribute them to your IRA, you will adjust for this in the interview questions in the retirement income section of the software.