It asks about the RMD information (Birthdate) to make sure no penalties apply.
A Form 1099-R indicating your distribution as a “death distribution” – code 4 in box 7 should have been issued. Enter this form in the Wages and Income section, and you will be asked additional questions about the decedent.
Such as: if the decedent made any nondeductible contributions. This is important because nondeductible contributions are treated as return of investment and are not taxable; it may be beneficial for you to find out (often your plan administrator, broker or banker has this information or form 8606 from prior years' tax return should indicate that information ). You will also be asked if the original owner of the IRA passed away after he/she was 70 ½, did he/she take required Minimum Distribution (RMD) in the year of death. Again, your plan administrator should know and you should as well…if the RMD was not taken, a 50% penalty on not distributed amount may be applied. It's asking to make sure none of these situations apply. These things are not on your Form 1099-R, so the program needs to know.
TurboTax takes all of this information and properly applies the tax laws and enters it onto your tax return as required.
Click here for additional information on inherited IRA's.
Click here for additional tax information on inheritance.
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