Have a retired client with a Traditional IRA and a SEP IRA. She has a basis in the SEP however the Traditional IRA was employer-funded and pre-tax so no basis.

Both 1099R forms have the IRA/SEP/SIMPLE box checked. The client withdrew $10k from Traditional IRA. My understanding is this should be fully taxable however the program insists on reducing the SEP IRA. Any insight?  If I uncheck the IRA/SEP/SIMPLE box the IRA becomes fully taxable.

Thanks.