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I agree, very frustrating this year.  TT support doesn't admit to system glitches, kept telling me it was a data entry issue.  I was an accountant and knew it was not my entry error, but a software issue.  This year Turbo Tax had so many 1099-R issues that took a couple of months to fix.  Unfortunately I cannot speak for the qualified distribution error you're having.  The problem I had was a 1099-R (inherited pension/annuity) "non-qualified" distribution that had no option for it until last week.  I had to delete, re-enter and round all of my 10099-R's to the nearest dollar to get the "Needs Review" error out once they fixed the issue.  It finally worked last week and I successfully filed my taxes via online TT.  I had been trying since the beginning of February with one glitch after another.  Seems like they fix one problem and add a new one.

Hopefully TT has fixed the Qualified distribution error you are getting.  Curious to see when they fix your issue.