You can file a 1041 with TurboTax here.
Based on what you've said here the $5000 seems to be the only income for the estate. The K1 will show that income as paid to you minus any expenses that the estate had. It will also show a $500 tax payment made to the IRS from the 1099-R.
Because you are the sole heir for this estate you can skip the 1041 and enter this 1099-R directly on your personal tax return. That would mean that you would not be able to deduct expenses for the estate. It would also mean that you would have to mail in your tax return and include a copy of the 1099-R with it with 'received as nominee' written on it. That would delay the processing of your return for a while. But you would be able to skip the 1041.
The 1041 process in TurboTax is a little more complex than the personal return. But you have a pretty simple estate return so you should be ok. If you run into any hiccups come back here with questions.
@ahsile
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