Depending on your circumstances, if you inherit a Roth IRA, RMDs may be required based on IRS rules. Generally, you must take an RMD from an inherited ROTH IRA, even though the owner did not have to. For a beneficiary that is a non-spouse, an inherited Roth IRA must be fully distributed by December 31 of the 10th year following the owner's death (the "10-year rule") with no annual RMDs required during years 1–9.
If TurboTax is asking for RMD information for your inherited ROTH IRA and stating "Needs Review" you can try deleting that Form 1099-R and re-entering it. Also, go through your follow-up screens and make sure all of the questions are answered correctly.
These distributions are taxed as ordinary income.
Code Q on Form 1099-R (Box 7) is correct as it indicates a qualified distribution from a Roth IRA. Code Q generally indicates that the five-year holding period requirement for a qualified, tax-free distribution has been met.
Click here for Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)
Click here for Retirement topics - Beneficiary
Click here for What are required minimum distributions (RMD)?
Click here for How Does an Inherited IRA Work?
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