This is resolved, though not quite sure how! I don't know how to remove my question so I'll update it. The data I had entered appeared to be correct when viewed through the data entry form, and the correct boxes were definitely checked. I've done application trouleshooting before so I tried a nummber of sets of mods to the IRA info, like changing it to the older person (eligible for RMDs) and showing it was: Not an RMD; an RMD; and a partial RMD; and a couple other sets of changes. None got the IRA withdrawal onto line 4.
So, I then I deleted both my IRA and my wife's IRA records and re-entered them. I made it a point to first enter the one that was being shown on line 5. That did it. You can argue that it is now correct on line 4 because the original record was not correct in some way (like the IRA box was not checked). But, I had reviewd the record several times and the info was correctly entered to begin with.
Anyway, it is now ok and I'm done with the Turbotax peculiarities for another year. One more note -- one of the 1099-R "Smart Worksheets" retained and still shows some of the trial data that I entered when testing and then deleted! It shows that the 10k non-RMD distribution has a 6500 "required RMD amt"; that was one scenario I has entered when testing.
