Late last year a women had been hospitalized with seizures during a time that her brother had pass away. She had just retired from a company. She and her husband were planning on moving to New Mexico to start their retirement. The husband had competed the pension form and sent it in for election. Unfortunately, she had signed off on electing the pension payout. During this period her husband passed away from COVID as they were settling in New Mexico. She received a check for the payout less 20% withholding as the check was made out to her.
We have initiated a request for reconsideration with the pension folks but have not heard back. Can she deposit the check in a traditional IRA and reclassify her distribution for a return of tax paid?