With no tax withholding, the details of the form are not included in your filed tax return. Whether or not the payer corrects this incorrectly coded Form 1099-R, I would select the correct code H in TurboTax's code-selection box so that TurboTax can appropriately treat the rollover as having been made to a Roth IRA. The IRS will be unaware that you made this code substitution in TurboTax.
