I agree that claiming the 1099-R distribution is not an RMD in TurboTax is a workaround. If a 1099-R is issued, the provider is reporting a taxable RMD was taken (per box 2a), so the tax return (when filed) will be inconsistent with the 1099-R and an flag could result. If the 1099-R is entered in TT as received, there is a follow-up screen asking if the distribution was subsequently moved to another retirement account or returned to the same retirement account (a rollover if the account holder did it, or a transfer if the institution did it). Click yes, and the following screen says that no tax is owed on the distribution. However, the tax already taken in TT for the distribution is not backed out. I suspect it's a software bug that will eventually be corrected.
