When you tell TurboTax that the distribution is from a non-qualified plan (like a commercial annuity or a non-government deferred compensation plan), the program is often programmed to append (add) Code D.
Code 4 ("Death") tells the IRS the recipient is a beneficiary.
Code D identifies the payment as being from a non-qualified annuity.
The electronic file sent to the IRS contains your data in a specific format that explains the "4D" combo. Their computers look at the Taxable Amount (Box 2a) and the Federal Tax Withheld (Box 4)... and long as those numbers match (the paper copy), a descriptive code added by software to clarify the plan type rarely triggers a mismatch notice.
You can double-check your 1040 form (Lines 4 or 5). Make sure the amount in "Taxable Amount" matches what you expected (the distribution from a non-qualified plan should only show the earnings as taxable).
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