Yes, this is perfectly legitimate to use. The IRS mentions this in this link that you may use this if you qualify. Turbo Tax will generate Form 4972 for you once you enter your retirement plan withdrawal, and if you meet a series of special requirements.
It appears that Turbo Tax is allowing you this Special Averaging Method because it does ask you a series of questions to see if you meet the requirements. If you answered these truthfully and to the best of your knowledge, you will be allowed to use this method.
How it works is that you're treated as if you're receiving the payout over ten years for tax purposes. Instead of declaring the lump sum payment this year, the payment is spread over the next ten years in equal amounts. So if you declare the first payment this year, you will be responsible for reporting this the next 9 years in your return. Keep track of your payments. I am not certain that Turbo Tax will track this so you have the responsibility of tracking this yourself. Keep all of your tax returns together for the next ten years to track your reporting.
Here is some more information you can review regarding tax on lump sum distributions. When you read this, first scroll through the pdf until you reach the instructions for form 4972. There is a wealth of information there.
Tax on lump Sum Distributions
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