The Army survivor death gratuity of $100,000 based on the HEART Act was rolled into a Roth IRA in 2019. A distribution of $25,000 was also received in 2019. The HEART Act appears to say that this money can be put into a Roth IRA at any time and funds can be taken out at any time with no taxation implication (no taxes). However when the 1099-R is input into Turbo Tax Deluxe, unless any other IRA was created by my Wife specifically, all of the distribution gets taxed. This does not seem to represent the definition of the HEART Act for money distribution from a Roth IRA taken out the same year the Roth IRA was created?
