"I have #1 cylinder at TDC and the timing mark lined up."
Are you SURE you have #1 at TDC at the end of the compression stroke? If you didn't verify that by rocker arm position or putting a finger OVER the #1 sparkplug hole and noting air being forced out as the piston came up to TDC you very well may be 360 crank degrees/180 rotor degrees "off".
Did you note rotor position BEFORE pulling mag?
Also, did you by any chance remove the 2 screws and cover behind the rotor and get the rotor "out of time" with the mag?
Complete H4 mag repair, rotor timing, and mag timing instructions can be found at the link below.
You will have to copy it and paste it into your browser, as it won't work here as a clickable link.