I received a 1099R from an inherited Insurance Contract. The gross distribution in Box 1 is more than the taxable amount in Box 2A, with the difference in Box 5 (insurance premium). Distribution code is 4D.
When I enter in Turbo tax it says a 25% penalty is owed on the amount that is in Box 2A. My understanding is this is an inherited RMD from the insurance company, where a portion (Box 5) is applied to the insurance premium. The RMD amount came from our financial advisor. What do I need to do in TurboTax so I don't get a penalty?
