This code B8 Form 1099-R appears to me to be correct except that box 2a should have a zero in it. Box 2a seems to have been left blank by the preparer to indicate that none of the distribution is taxable, but that's not really proper if the taxable amount is truly known to be zero, which it is in this case.
What this From 1099-R is saying is that, due to failing ADP testing, there was an excess contribution of the amount shown in box 5. However, the investments in the account lost value in the interim, so the amount distributed, shown in box 1, was less that the amount originally contributed. The amount in box 5 simply represents the amount by which the contribution basis in the Designated Roth Account has been reduced by this return of excess contribution.
To satisfy TurboTax, you'll need to enter a zero in box 2a.
