Yes, this must appear on Form 8889. You do this by entering the Form 1099-SA into TurboTax, indicating that you didn't use it entirely for medical expenses, that you didn't spend any of it on medical expenses, then enter $2,700.96 as the amount rolled over. TurboTax will include the $2,700.96 on Form 8889 lines 14a and 14b.
