You need to enter the distribution as a sale of investment.
You enter investment sales in the Wages and Income section of TurboTax, then Investment Income, then Stocks, cryptocurrency, Mutual Funds, Bonds, etc... Skip the section where it asks if you want to upload your tax documents. Choose Other as the type of investment you want to enter. You'll come to a screen where you can enter in your sales proceeds and cost basis. The cost basis will be $0 in your case, since you are just reporting the distribution as taxable capital gain income.
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