Yes, the code is the reason this shows as taxable. Code 4 means this is a distribution from a traditional account (not Roth) that was made due to the death of the original owner.
If the original account was a Roth account, the box 7 code is wrong. If that's the case you need to contact the payer of the 1099-R to get a correction.
You say that you reinvested the money. Does that mean you rolled it over to another IRA?
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