Yes, you can answer yes to the RMD question. The payer is paying you the required minimum distribution (RMD) as beneficiary. The IRS will not think you are retired necessarily and based on your age. The IRS requires RMD as a beneficiary and the rules can be reviewed in the link below.
The codes are normal in your situation.
- 4 – Death
- D – Annuity payments from nonqualified annuities and distributions from life insurance contracts that may be subject to section 1411 taxes
The Net Investment Income Tax is imposed by section 1411 of the Internal Revenue Code. The NIIT applies at a rate of 3.8% to certain net investment income of individuals, estates and trusts that have income above the statutory threshold amounts. Threshold before this would be included in your return is $200,000 for single ($250,000 for married filing joint).
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