Make sure that you are answering Yes when TurboTax asks the improperly worded question asking if the IRA was inherited from a financial institution. TurboTax is just asking if the distribution was from an inherited IRA (which is actually an unnecessary question since code 4 already says that the distribution was from an inherited account).
A distribution from an inherited Roth IRA is indicated with code T or Q, the same codes as would be used for a distribution from your own Roth IRAs if you are over age 59½, so TurboTax must in this case ask if the distribution was from an inherited Roth IRA. Again answer Yes to TurboTax's badly worded question. TurboTax will automatically treat this distribution as nontaxable even though there are cases where some of the distribution might be taxable if the code in box 7 is code T rather than code Q.
