I apologise for the frustration this software behavior has caused. This is a known issue, and there is a workaround.
In the 1099-R entry, if forced to choose between 403b and another qualified plan, go ahead and pick "another type of qualified plan" (even though it is not). If forced to enter RMD information, put some number.
Once the 1099-R has been entered, go to "complete check/review." Press the blue button next to something like "answers to review." Do NOT press the blue button that specifically mentions the 1099-R distribution.
In the review screens, delete any numbers in the RMD text boxes, and choose "No entry" radio button for type of account. Untick the "Yes RMD" box if offered. These steps should clear your error. Be sure to review your 1099-Rs, 1040, and 5329 (if applicable) carefully before filing to ensure everything is being reported as intended.
The review may or may not still show some alert related to the distribution; however it should not prevent filing.
