Non-qualified annuities are are not subject RMDs. Despite the code D indicating that the distribution is from a non-qualified annuity or insurance policy, TurboTax needlessly asks if the distribution is an RMD. Answer No, this is not an RMD.
Form 5329 is used for a distribution from a non-qualified annuity only if it is an early distribution (code 1D). Make sure that you did not mistakenly mark the IRA/SEP/SIMPLE box on TurboTax's 1099-R form. (TurboTax will flag this as a probable error if you do and will ignore the code D under the assumption that the box was mistakenly marked by the payer.)
