Nothing about these transactions is to be entered under Deductions & Credits. Remove the entry you made there.
What you did was a distribution and rollover. The Form 1099-R is correct. When you enter this form, indicate that you moved the money to another retirement account (or back to the same account), then indicate as a rollover the amount that you put back. TurboTax will include the entire distribution on Form 1040 line 4a but exclude from the taxable amount on line 4b the amount that you put back. TurboTax will also include the ROLLOVER notation next to this line.
