This is a known bug with TT. Happy to report that this bug has been fixed! The issue with the Inherited IRA distributions showing on Form 8606 appears to have been resolved as of 3/5/2021. Make sure you download the updates from 3/4/2021. Recently, there have been related reports on the support forum from many saying they were getting error messages about Form 8606 when trying to file even if they didn't have an Inherited IRA. but I suspect Turbo Tax put a hold on anyone filing an 8606 until they got the Inherited IRA issue resolved. In any event, I was able to e-file successfully and the figures from the Inherited IRA distribution were correctly populated on the return. Whew!