Folks:

Joe died and left his workplace retirement account to his friend Mark.  The employer issued a check to Mark for $900,000 and withheld $100,000 for federal income taxes.  Mark then deposited $450,000 into an inherited IRA account and sent $450,000 to a charity.

How do I report this?

The 1099 distribution code is 4, death, and box 2 says the entire amount is taxable.  Which would be true if this were an actual distribution, but instead it was a non-trusteed rollover.

Help?

Micah