It appears there is an error in how TurboTax handles 1099R forms marked F in box 7. The software should carry over a portion of the distribution to line 43 of the 1099R summary and from there to Form 8960 line 3. The explanation on the 1099R summary is that the carry-over occurs only if box 7 is D. It should carry over for both D and F distributions. Non-qualified annuities are clearly subject to the NIIT.