To resolve your issue, follow these steps:
After you entered the information on Form 1099-R:
- On the next screen Do any of these situations apply to you?, check I inherited this IRA
- On the next screen Who did you inherit this IRA from?, enter the name of the deceased, and the year the person passed away
- On the next screen, answer Yes or No to indicate whether you had any nondeductible IRA contributions
- Continue to the screen and answer the question that asks How much of the distribution was a RMD?
As mentioned by @fanfare, the 10% addition to tax is never imposed on inherited IRA distributions.
If you don't take the RMSs from your account, you will be subject to a penalty equal to 50% of the amount that should have been withdrawn.
@Kevin92
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