I inherited an IRA from my dad this year. I had it transferred into a new inherited IRA account and it still includes his name on the new account. I received a 1099-R from the original IRA account indicating the full amount received with the code 4G. I also have a 1099-R from the new inherited IRA account for the RMD that I was required to take out before the end of the year. TT asks me questions about the inherited IRA and if I took out the RMD (yes). I indicate the full amount was the entire distribution required by 12/31/2024. TT says it looks like the difference between the RMD and what I took out is the exact same amount and is subject to penalty. My rate would be lower if I take it out during the correction window. When asked where the distribution is from, I have tried 2 different answers with the same results (Qualified gov't or pub pension OR None of the above). When asked if I missed a RMD I indicate None of the plans failed to withdraw an RMD. I am getting a penalty of $1956 unless I can indicate I missed the RMD due to a reasonable error and sign a waiver. How do I get passed this questions and avoid a penalty when I performed all the right steps?
