The program should allow you to treat these distributions as a covid-related distribution. It is being worked on in TurboTax and will hopefully be updated soon. There are a few situations in which TurboTax is still not allowing the covid relief to eligible distributions. Hold tight for right now, don't go changing your forms as you don't want to make a mistake that is going to take more work to fix in the future. Please sign up using the link found here to be notified of updates. I realize that the issue in the article is regarding the penalty, but your issue is related and should be fixed at the same time. @IDF783
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