Thank you for your reply DianeW777. To add more context the 1099-R was coded as D4 in box 7. I did try to enter the data into the 1099-R section of Turbo Tax but it then asked questions like when my aunt was born (to determine her age had she lived) and whether the distribution was an RMD or not. Any suggestion how to answer the RMD question? That's when it got more confusing because it started treating it like my IRA or pension and after going thru the motions it shows up in my income summary on 2 lines as Pensions - taxable and Pensions - non-taxable even though I am not retired yet. This all seems puzzling to me. Will the IRS think I'm retired and drawing from pension even though this was something my aunt had paid for and which I became a beneficiary? Appreciate any further insight or advice you can provide.
