You are correct. Required minimum distributions are calculated based on the previous year 12/31 account balance and the distribution factor based on your age from the life expectancy tables. If you do not withdrawal your RMD annually, there are some pretty hefty penalties. For 2020, those RMD rules were waived so no penalty for not taking RMD and you could roll it back into your IRA.
So for the RMD question in TurboTax , if you answer "None " the income will flow to your return as ordinary income.
