No 1 cylinder has two TDC"s, one for the compression stroke and one for the exhaust stroke. When No1 is at TDC for one of those strokes, No 4 is at TDC for the other.
The best way to do this is to mark on the distributor body, the location of the wire for the No 1 spark plug wire. Use a colored marker (not black) to go down the cap to the body. Remove the cap and turn the engine until the rotor approaches the mark. Fine tune the location by using the timing marks on the timing belt cover and front pulley. Align the marks to the 5° BTDC location.
Now from here I'm going on the distributor we have. I expect that all Toyotas will be similar. Undo the hold down bolt. carefully pull out the distributor. The rotor will turn a little because it is engaged to a spiral gear. Once it stop turning as you pull it out, and it should only turn a little bit for the first half inch of removal, then don't allow it to turn any more. It should not want to turn anymore, just be careful that you don't bump it or anything.
Look at the gear end. There should be a drift pin holding the gear onto the shaft. Next to one end of this pin, there is a drill mark. On the end of the pin next to the drill mark, there should be a protrusion on the shaft housing that lines up the the pin. Align the gear on the new distributor the same way and slip it into the hole. The rotor should turn to point to where the No 1 spark plug wire comes out of the new distributor cap. You can temporarily put the cap in place to check.
With the cap off, remove the rotor. Now on the shaft, you will see the vanes. On the pickup (Toyota calls it the ignitor) you will see a metal blade imbedded in plastic face. Turn the distributor until the nearest vane lines up with this blade on the ignitor and tighten down the holding bolt for the distributor. Replace the rotor and check that it still points to the No 1 spark plug wire on the cap. Install the cap and wire everything up. Your timing should be dead (spot) on.