I was named as the death beneficiary on a 401(k) savings plan of about $47K. The investment company cut me a check for about $38K (withholding 9 thousand and change for federal taxes). I deposited (rolled over?) this check into an IRA. When I filled out my federal return, I indicated this, and TurboTax said because it was being rolled over into another retirement account, I didn't have to pay federal tax on that "income" (and my federal refund accordingly shows that). As I'm going through my Pennsylvania return now, it's telling me that there's a discrepancy between the federal code (4, not a rollover) and the PA code (a rollover).
Do I need to change something in my federal return? Or do I enter that $38K amount in the "basis in retirement plan" box in the prompt on the Gross Compensation Worksheet?
Thank you!
