1099-R INCLUDED IN INCOME DISTRIBUTION DEDUCTION OF A TRUST

I am preparing a 1041 for a trust that received a 1099-R from an annuity with code 4D. I included the amount in other income on the 1041indicating the source as the 1099-R. The annuity was included in the income distribution deduction and is included on line 5 of the K-1. However since it was coded as 4D on the 1099-R it is subject to NIIT. How do I reflect this on the K-1???? Box 5 flows to schedule E on the 1040 as non passive income.

It should also be included in 14E and not included in 14H.
Your software should do this.