Was the 403b settlement for additional income outside of the rollover amount? You mention that you received a check. If you received a cash payment, then the settlement is taxable. Report the 1099-R exactly as indicated on the form. The additional distribution is taxable.
If the additional settlement was added to the rollover funds, you can indicate in the software that cash was not received on the settlement but instead rolled over into the account. While the instructions below are for an IRA, the same steps would apply.
Reporting a Rollover in TurboTax
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