Just go to the 1099R section and delete it, if there were no distributions from the IRA for 2016.
TurboTax asks about income that was reported on the prior year, just to make sure you are not overlooking anything.
It is a helpful tool, as I get questions about bank account interest that I overlooked and then I check it and report the income.
No worries, it is just ensuring the return is complete and accurate.
