This is all done through the entry of the Form 1099-R. Go back and remove the entry that you made under Deduction & Credits.
When you enter the Form 1099-R, indicate Yes, some or all of the distribution was RMD, that part of the distribution was RMD and enter the amount of the actual RMD (the gross amount of the distribution reduced by $5,246.50). On a subsequent page, indicate that you move some or all of the distribution to another retirement account or back to the same account, that you did a combination of rolling over, converting and cashing out, then enter $5,246.50 as the amount rolled over. TurboTax will exclude the $5,246.50 from your taxable income with the ROLLOVER notation.
