The error message is correct. In reviewing the instructions for the 1099-R for a rollover from one IRA to another, it says, "Generally, do not report a transfer between trustees or issuers that involves no payment or distribution of funds to the participant, including a trustee-to-trustee transfer from one IRA to another IRA..." That is, they shouldn't have sent you a 1099-R at all.
If, however, you got the 1099-R anyway, here is what you do to handle the situation.
Go to where you enter a 1099-R.
After the data entry, there will be a series of screens.
On the first screen, enter this is from a traditional IRA (if it is not, then let me know).
On the next screen, say that you did not inherit the IRA, unless you did.
On the next screen when you are asked what you did with the money, enter "[name] moved the money to another retirement account"
This will expose some new lines, in which you will check, "[name] rolled over all this money to another traditional IRA..."
This will treat the 1099-R as a rollover.
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