Get your taxes done using TurboTax

that is actually correct .... I'd suggest deleting and then re-entering into TT. 

 

There is something in TT that you are not answering correctly; the Vanguard form is correct  

 

(interesting that I also flipped money at Vanguard from a TRAD to a ROth IRA and they used a code 7)

 

watch the questions closely in TT.  There should be a question asking 'what did you do with the money'.