Background:
My wife's mother died in 2019 and she received funds (<$8k) from a life insurance policy (Genworth Life Insurance Co of NY). Her mother was well over 70 1/2 years old. We received a 1099-R form from the Genworth Life Insurance company. She has a brother and the policy proceeds were split evenly.
Question/Problem:
I've entered the 1099-R information from he company listed prior into TurboTax and it's asking if this withdrawal was an RMD. The program states that no RMDs are 'not common'. If I was to guess, I'd think that his would not be an RMD as it's an inheritance to my wife in the full amount. The fact that TurboTax states that a no RMD situation is uncommon makes me second guess myself.
Can somebody please advise me if this distribution would be considered a RMD?