Probably the estate received the 1099-R form which listed the estate tax ID number on it. If the estate earned over $600 in income, then an estate tax return should be filed. As part of the estate tax return a schedule K-1 would be prepared and given to the beneficiaries so they could report their share of the estate income on their tax return.
If the money is from a 401-k, then it would normally be fully taxable. If an estate return is not prepared, I would suggest the recipient of the distribution enter a mock form 1099-R in TurboTax and report the income as being in box 1 (gross distribution), and in box 7 use code 7 (normal distribution).
Also, if you can find the form 1099-R that was issued to the estate, you can use that information to enter the form in TurboTax, but just enter the amount that the beneficiary received.
The form 1099-R in entered in the "Retirement Plans and Social Security" section, which is in the "Income and Expenses" area of TurboTax.
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