You are correct - The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, waives required minimum distributions during 2020 for IRAs and retirement plans, including beneficiaries with inherited accounts.
After entering the 1099-R you can indicate that you rolled over the funds by following these steps:
- A few screens after the 1099-R input screen, you should see a screen, About this Inherited Retirement Account. Mark the radio button Yes, some or all of this withdrawal was an RMD.
- Below the grey line, mark the radio button All of this distribution was an RMD.
- On the next screen, What did you do with the money from this payer? Mark the radio button that you moved the money to another retirement account (or returned it to the same retirement account).
- Below the line that appears, choose the button that you rolled over all of this money.
- On the screen, Did [you] rollover all of this $XX (Box 1) to another retirement account? Mark the Yes button, if you rolled over the entire amount.
- The next screen should confirm that you don't have to pay tax on the rollover.
