Even though the penalty for taking the RMD was waived, amounts taken are still RMD until the RMD is satisfied. However, TurboTax is only asking the question to determine how much of the distribution might be eligible for rollover, but a non-spouse beneficiary is not permitted to roll over a distribution from an inherited IRA, so the entire amount distributed is RMD in the context of TurboTax's question. Further, because TurboTax already prohibits reporting a rollover of a distribution paid to a non-spouse beneficiary, it really doesn't matter what answer you provide to this question. (TurboTax really shouldn't even bother asking under these circumstances.)
