Enter into box 7 of TurboTax's 1099-R form whatever codes are in box 7 of the Form 1099-R provided by the payer.
If the Form 1099-R for the distribution from the Roth IRA has code T or code Q and you properly indicate to TurboTax that you made your first Roth IRA contribution for some year prior to 2016, 2020 TurboTax will treat the distribution as nontaxable, not subject to any penalty and not includible on Form 8606. You can still report the distribution as a CRD to reserve the option to repay the distribution within three years.
