It's working correctly on my desktop Deluxe (I had an update yesterday). Go thru the interview again or Try deleting the 1099-R and re-entering it. In particular there's a question "Was this money rolled over to a Roth IRA?" Be sure you answered No.
If you did roll it over to a Roth, instead of a traditional IRA, then it is a "Conversion" and is taxable.
