Thanks, we got it figured out. Navy Federal sent the 1099-R with a taxable amount of the entire amount.  I went back and went with the 4 and a taxable amount of $0 and showed it as a rollover.  Since I have never had this scenario before with the rollover shown as taxable on the 1099-R I was a bit concerned that even after filing a correct and accurate return that the IRS would come looking for taxes for what was shown as taxable on the 1099-R from Navy Federal.  With the advice I have received I feel comfortable with how we will be submitting it.