Most people don't make HFDs from a Roth IRA since doing so is beneficial only in limited circumstances, so TurboTax does not gracefully handle reporting a QCD from a Roth IRA. QCDs can only be made from otherwise taxable funds in an IRA, so this means that you can only make an HFD from a Roth IRA if your Roth IRAs are not qualified and you have investment earnings in your Roth IRAs of at least the amount of the intended HFD.
Assuming that the amount transferred form the Roth IRA to the HSA qualifies as an HFD and there is no other distribution included on the code J or T Form 1099-R, you can trick TurboTax into treating it as an HFD by selecting code 2 or code 7 in box 7 of the 1099-R form in TurboTax instead of the code J or code T, marking the IRA/SEP/SIMPLE box and indicate that the amount was paid the HSA. This will cause TurboTax to include the amount on Form 1040 line 4a but exclude it from line 4b with the HFD notation. TurboTax will also exclude it from Form 8606. Because the Form 1099-R shows no tax withholding, the details of the Form 1099-R will not be included in your e-filing, so the IRS will be unaware that you made the substitution of the distribution code.
(If your distribution from the Roth IRA would be a qualified distribution or your earnings are less than the amount paid to the HSA, only the amount of taxable earnings can be reported as an HFD and the remainder would have to be reported as a deductible HSA contribution.)
