Because this was an inherited IRA annuity and the 1099 R shows Code 4 for the death with the IRA/SEP/SIMPLE box checked, the distribution is taxable unless there is after-tax (basis) in the original IRA.
Box 2b is common for inherited IRAs and simply means the custodian does not know the taxable portion. If the original IRA was a pre-tax Traditional IRA (most are), then the entire amount is taxable. If there were any nondeductible (after-tax) contributions, only that portion will be tax free, but that will require records (Form 8606) from the original owner.
Since you do not have evidence of after-tax contributions, TurboTax treats the full amount as taxable.
For the question asking how much applies to your December 3, 2025 distribution, if you fully closed the inherited IRA in 2025, select "Entire distribution.”
The RMD amount you entered earlier does not change the taxable amount. It’s only used to verify the RMD was satisfied.
@XAM330
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