1099-R Life Insurance Policy Cashed In --- Turbo Tax Glitch

[JAVDMC]

I am preparing my in-laws 2024 taxes. My father-in-law received a 1099-R from a life insurance company for a small cashed-out policy.  The 1099-R shows the gross distribution ($18k), the net distribution ($15k), the premiums paid ($3k), the total distribution box is checked, and the distribution code is 7.  This is a non-qualified distribution. When I try to enter this 1099-R into Turbo tax as non-qualified, I am then asked to choose if it is a "qualified" distribution such as a 403(b) or another "qualified" plan.  It is NEITHER, but I can't bypass this question without choosing a qualified option.  When I try to choose one or the other two choices to move on and finish entering the 1099-R, TT keeps finding this as an error, but there is no way to correctly enter it and says no plan type should be chosen. Is this a known TT software glitch?

[BillM223]

Is there a second distribution code that is "D"? 

Your description sounds just like an issue with distribution code 4D or 7D (or any D, I think) wherein recipients of non-qualified annuities are forced to choose between qualified plans.

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