dmertz
Level 15

Retirement tax questions

For TurboTax to actually treat code 4 as meaning inherited, when asked on the pages that follow the entry of the Form 1099-R details, you must explicitly tell TurboTax that the distribution was from an inherited account.  If you don't do that, TurboTax will (for no good reason) treat code 4 as if it was code 2 or 7.