I am not from Turbotax, but I this year, did exactly the same transaction you did, and turbotax processed it as expected.
To clarify the jargon, IRS uses the terms "recharacterized" and "contributions", and turbotax uses the IRS terms. "Recharacterized" basicly means "moved" from one type of IRA to another.
"Contributions" means adding new money.
If you need to blame someone, blame the IRS.
