I received a 1099-R but I did not withdraw any money from this 401k. The verbiage on TurboTax is as if I utilized this money. Should I report this 1099-R?

Yes, enter the 1099-R form exactly as it appears on the form. Be certain to answer all of the follow up questions. Your answers determine how the 1099-R reported amounts are taxed or not. 

A Form 1099-R from the 401(k) implies that you moved money out of a 401(k), a transaction that is required to be reported whether taxable or not.  If that money was moved to another retirement account, that's a rollover.