Your 1099-R has been correctly coded in box 7. Code H means Direct
rollover of a designated Roth account distribution to a Roth IRA. The rollover is not taxable. And by entering code H in box 7, TurboTax will not tax it (I have tested it).
Please revisit your form 1099-R and follow the interview to the end. If it still does not work, delete the form 1099-R and reenter it.
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