@dmertz , thank you for the explanation. However, I am a bit turned around by it. The 1099-R in this instance is for an inherited traditional IRA, $8.3k was distributed into an HSA, box 7 had code 4, and the IRA/SEP/Simple box was checked. From what you are saying, TurboTax is not recognizing code 4 as a rule to present the pop-up requesting the HSD amount. So, I would have to manually enter it on form 8889. If this is true, would this be possible with the online version or the desktop version?
