I suggest reviewing your entries for the form you received for this event, 1099-R, I presume.
In particular check to ensure the entry for Box 7, distribution code is correct.
For code meanings see https://www.hrblock.com/tax-center/irs/forms/reporting-form-1099-r-amounts-as-income/
To find the 1099-R :
Federal Return > Wages and income > "I'll choose what I want to work on" (button) > Scroll down to "Retirement Plans and Social Security" > Find the line for 10099-R > Click the "Update" or "Start" button on the right side of that line > Follow the conversation and enter the required data.
If the event is as you describe, Box 7, distribution code should be code = G. If not, contact your financial institution to determine why.
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