Just to be clear, I think we are talking a military death gratuity that she received and rolled into a Roth IRA in 2019 (her only Roth IRA), not a military death gratuity that you received, and she subsequently took a distribution from her Roth IRA in 2019. Assuming that I have that correct, your own retirement accounts have no bearing on this. Even if you had been the one who received and rolled over the military death gratuity, Roth accounts in employer-provided plans are not Roth IRAs and would still have no bearing on this.
The rollover of the military death gratuity by your wife to her Roth IRA became contribution basis in her Roth IRA. Distributions from her Roth IRA of the amount up to the amount of the military death gratuity are then tax-free distributions of that basis. Any amounts distributed beyond the the amount of the military death gratuity are earnings, generally taxable until she reaches age 59½ (which she apparently already has since the Form 1099-R has code T) and it has been at least 5 years since the beginning of 2019 (which would be 2024 since her first contribution to a Roth IRA was the rollover contribution of the military death gratuity).
Be sure to click the Continue button on the Your 1099-R Entries page. When TurboTax asks if any of her Roth IRAs set up before 2015, answer No (since this was her first Roth IRA, opened in 2019). Here's where TurboTax is misleading: When TurboTax asks you to Enter Prior Year Roth IRA Contributions enter the amount of the military death gratuity rolled over in 2019 even though is was not done in a prior year.
