Your income from the Survivor Annuity is considered retirement income because it is reported on form 1099-R. The reason why the program is asking if it was a required withdrawal is because usually distributions from survivor distributions can be spread over time but beneficiaries must make required withdrawals depending on the relationship they had with the account holder.
On TurboTax you should answer YES to this question, and the program will continue guiding you as you enter the rest of the required information.
For more information visit the IRS page Required Minimum Distributions for IRA Beneficiaries.
@tmheld
