Thanks for your response. Where on the  Form 1041/K-1 can you designate Non-taxable distributions to the beneficiaries? Since I only have prepared one 1041 before I would like to confirm with the tax preparer the line items on the form so not to show the Roth IRA as a taxable distribution. 

As far as getting a letter ruling, I am not familiar with this as does it relate to the beneficiaries probating the estate? If you can clarify for me. I would just like the Estate to handle this correctly but I am not involved with this but only handling the return of the "beneficiary". The traditional IRA is valued at roughly $1Mil of which my client is a 50% beneficiary of the estate.

Your assistance is greatly appreciated. 

Anmarie