dmertz
Level 15

Deductions & credits

You can't just use a different code in TurboTax without risking a challenge from the IRS.  The payer has sent a copy of the Form 1099-SA to the IRS and the code 5 on this form is telling the IRS that this distribution was not eligible for rollover, is subject to income tax and, if you are under age 65, to a 20% additional tax.