When you enter your Roth IRA into Turbo Tax, the entire amount of the distribution will be reported on line 15a (Form 1040) or line 11a (Form 1040A). That just reports it; it doesn't mean it's taxable.
If code T is in box 7, then it should show as non-taxable on line 15b (Form 1040) or line 11b (Form 1040A).
If it's still showing up as taxable, delete it from the input screen, then try again.
