I received a death benefit from my Mother's TSP and did a direct rollover via my Schwab account to create an inherited IRA during 2021. The check went directly to Schwab, establishing the inherited IRA. When entering the Thrift Savings Plan 1099-R into TurboTax, the total distribution block in 2b is checked, and block 7 shows 4 (death) and G (Direct rollover).
My question is: Why is TurboTax showing the entire amount of the TSP distribution (that was a direct rollover to an Inherited IRA) as all taxable this year? The only taxes that should be paid are when I am receiving a distribution from the inherited IRA, within the period I have to take the distributions.
