The reply from dmertz doesn't apply to a non-spouse beneficiary's direct rollover to an Inherited IRA.
I did a direct rollover of my father's 401k to an Inherited IRA, permissible by law. I received a 1099-R for the rollover amount, and a separate 1099-R for the annual RMD (required minimum distribution). The payer confirmed that a 1099-R must be issued for any and all distributions, whether the money is paid to another qualifying plan or received personally. The code in Box 7 indicates the type of distribution, which determines whether or not the event was taxable. (My rollover 1099-R, Box 7 has code 4G, indicating a direct roll-over to a qualified plan, and Box 2a shows no taxable amount.)
TurboTax prompts are confusing. The 2019 tax year software only has options to indicate rollovers to a Roth 401k or Roth IRA. (An Inherited IRA has a different tax treatment.) I answered "No" to this being a Roth 401k or a Roth IRA, and "No" to the question: "Was this withdrawal an RMD?" The answer "No" is shown as "not common." I doubt Inherited IRAs are uncommon, so I've provided this response to help other, potentially confused users.
(Note: The second 1099-R, for my annual RMD, is a "Yes" to the RMD withdrawal question, and correctly has a taxable amount in box 2a.)
