The distribution involved here is a distribution from an inherited IRA, code 4 in box 7 with the IRA/SEP/SIMPLE box marked. It appears that step-by-step mode in the download version of TurboTax fails to offer reporting that the distribution was involved an HFD. An HFD from an inherited IRA can be entered in forms mode of the download version of TurboTax. The online version of TurboTax does accommodate indicating that the distribution from an inherited IRA involves an HFD.
And as I indicated earlier, an HFD is not a rollover.
