Why does TurboTax tax incorrectly say “you need to take a RMD” out of an inherited IRA ?

[tax311]

Why does TurboTax tax say “you need to take a RMD” out of an inherited IRA within the ten year rule? That is not true. I am the non-spouse, non-qualified beneficiary of an inherited IRA. I have to distribute 100% from my Inherited IRA to my nonretirement account within 10- years but there is not a RMD each year. I can wait until year 10 to take my first, 100% distribution for an inherited IRA. Turbo tax language is misleading/false. I am using TurboTax home and Business which is the same as TurboTax Self-Employed for 2021

See attached image: https://drive.google.com/file/d/126H2dQx-LUNdKaSI3fWqBCnXx4NuRsJA/view?usp=sharing
Related question/point 1:
https://ttlc.intuit.com/community/retirement/discussion/inherited-ira-how-much-rmd-my-beneficiaries-...
Related question/point 2:
https://ttlc.intuit.com/community/retirement/discussion/how-much-of-a-distribution-is-considered-a-r...

[MaryK4]

If the owner died on or after his or her required beginning date and you are an eligible designated beneficiary, you must base required minimum distributions for years after the year of the owner's death on the longer of:

• Your single life expectancy shown in Table I in Appendix B, as determined under Beneficiary an individual ; or

• The owner's life expectancy as determined under Death on or after required beginning date under Beneficiary not an individual later.

The 10-year rule requires the IRA beneficiaries who are not taking life expectancy payments to withdraw the entire balance of the IRA by December 31 of the year containing the 10th anniversary of the owner’s death.  The term “life expectancy payments” as a beneficiary distribution option refers to the minimum amount that must be taken by a beneficiary from her inherited IRA every year until the account is depleted.

Since you are a nonqualified beneficiary, you are required to take a life expectancy payment.

[dmertz · Accepted solution]

@MaryK4 , only Eligible Designated Beneficiaries are permitted to use life-expectancy for determining RMDs.  All other beneficiaries of decedents dying after 2019 have no option but to use the 10-year rule (unless the inherited IRA was established from the direct rollover of an inherited governmental plan, in which case it applies with respect to decedents dying after 2021).  Most non-spouse beneficiaries are not EBDs and are subject to the 10-year rule.

If you are subject to the 10-year rule, ignore what TurboTax says about being required to take an RMD.