For your issue, Turbo Tax is likely putting the distribution on Line 1 as if they were wages, which is not correct. If you go to the Forms section and look at the "Wages,etc. Wks" form you may see that it is showing up on Line 3 which then rolls to line 1 of the Form 1040. As you noted, these amounts should go to Line 4 of the Form 1040. IRS instructions say the same thing.
Although the end result is the same, it does create a potential audit risk.
I have been on the phone with TurboTax people for well over an hour on this issue, including talking to enrolled agents. Hopefully, they recognize that this is a programming issue and will fix the issue soon.
Good luck.
