The instructions for Form 1040, line 4a and 4b, are poorly written. As noted in previous comments, the instructions for more than one distribution are only in the IRA discussion and hence should apply only to the IRAs. That is almost certainly not what the IRS intended. If TurboTax wants to resolve this issue, it merely needs to obtain a clarification from the IRS and then ensure that interpretation is implemented. In the meantime, the taxable amount appears to be determined correctly and the fact that the total distribution is less than the taxable amount does not affect the return.
