The purchase of Certificates of Deposit is not tax deductible. IRA distributions are taxable, unless you re-deposited them into another IRA within 60 days. If you did a "roll over" to another IRA it would not be taxable.
If you did rollover your IRA, after you enter(ed)
the 1099-R, there is a page that asks "What
Did You Do With The Money From [Retirement Plan]"?
Be sure you indicate
that you "rolled over all of this money to
an IRA or other retirement account (or returned it to the same account)."
See Screen Shot #2 below.
Answering these
questions correctly will result in your distribution showing up as non-taxable.