You may have to go through and review all the the questions TT asks for this F1099-R. You might be entering the F1099-R correctly, but as to TT's handling of it, it might depend on answers to the questions for that particular 1099-R.
Also, for reference about 1099-R and the codes, see this link:
https://www.irs.gov/pub/irs-pdf/i1099r.pdf
Is this inherited IRA traditional? Roth? Did the former owner make any after tax contributions? If traditional and no after tax contributions, then it probably should be taxable.
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
