77 year old client provided a 1099-MISC w/ $162,000 in box 3 'Other Income' and no other boxes are checked, no tax withholding shown.   She says this is a "Lump Sum Pension Distribution from a Non-Qualified Plan".  

If I enter this to 2023 ProSeries as a 1099-Misc Worksheet on line 3 and check the 'other income' box, this flows to Schedule 1, line 8z. From there to 1040 page 1, line 8 as 'additional income' which is fully taxable. 

Non-Qualified Plan Contributions are (normally) made with after tax money.  So why is this all flowing to taxable line 8 of the 1040 page 1?  Do we think she has the wrong tax form (1099-Misc)?  Or am I entering this incorrectly?