Deceased Father’s IRA closed and transferred to new IRA in Mother’s Name

[Ghost190]

83yr old Mother received a 1099r for a $24,000 distribution and $2,400 fed tax withheld and a 7 in box 7 for a traditional IRA trust to trust spouse transfer from my deceased father’s traditional IRA into her newly created traditional ira.  Answered yes to the TurboTax question is this an inherited Ira, then answered yes to was this your spouse, TurboTax is treating the $24,000 distribution as non-taxable??

[dmertz]

Unless $2,400 was substituted from another source to complete the rollover of the entire $24,000, only $21,600 of the $24,000 was rolled over and $2,400 is taxable income.