Lump sum pension results in large Survivor Report tax

I expect to retire and take a pension as a lump sum in 2011 and immediately roll it into an IRA. When I modeled this, I got reasonable results in the Suggestions and Details. However the first year of the Wife’s Survivor report shows a 40% tax on the lump sum, as though the offsetting entries aren’t aggregated until after she inherits. I wonder if this is intentional, or is a bug. I ran 4 cases to examine the issue:

Case 1: Enter lump sum pension into the Pension & Annuities screen as a lump sum for 2011 with a 100% survivor benefit. Enter same into the Retirement Accounts>Contributions>Individual screen for 2011. All seems well in the Suggestions, Details and Husband’s Survivor pdf reports. However, Wife’s Survivor reports has a tax bill for ~ 40% of the pension/IRA in 2011. (Profile is set up for a married couple.)

Case 2: Repeat Case 1 with a 0% survivor benefit. The Wife’s Survivor report no longer showed the 40% tax, but now the Suggestions report required a life insurance purchase for 2010.

Case 3: Repeat Case 1 with 2011 entries only in Retirement Accounts>Contributions>Individual and an offsetting taxable entry in Special>Special Receipts. Results were the same as Case 1’s.

Case 4: No pension entry and no IRA contribution entry. Instead, I added the pension lump sum to my current IRA total in Retirement Accounts>Assets>IRAs screen. This approach resulted in a Wife's Survivor report that looks fine and does not have the extraordinary tax. However, it is a workaround that is effective only because I am close to retiring.

Is this all to be expected?

-- Mike