Client's wife passed away, and he was the beneficiary of her pre-tax pension. One of the options available to him was to take a $300k lump sum and roll it directly into a Roth IRA, which he did. He made an estimated payment to cover the tax due with other money available to him. The 1099-R he received lists the $300k distribution in boxes 1 & 2, indicating it is fully taxable, which of course it is. The distribution code in box 7 is 4 G, which prevents my software from carrying the taxable amount to line 16b. Should this have been coded 4 H, which would indicate a rollover to a Roth IRA? My other question is about form 8606. I assume that this transaction should be reported there, but I don't really see an appropriate line for it. All of the lines on the form refer to contributions, conversions, & distributions from traditional, SEP, or Simple IRA's. For the purpose of reporting this on form 8606, would this be reported as a conversion from a traditional, SEP, or Simple IRA?
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Pre-tax pension distribution to Roth IRA
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