Code J is correct.
After entering the Form 1099-R, click the Continue button on the page that lists the Forms 1099-R that you have entered. Answer Yes when TurboTax asks if you want TurboTax your Roth IRA basis, When TurboTax asks for your Roth IRA contribution basis, enter $5,500. TurboTax will calculate on Part III of Form 8606 the zero taxable amount of your Roth IRA distribution. Because the distribution is nontaxable it is also not subject to any penalty.
