Was it inherited from a spouse? What code is in box 7? Is the IRA/SEP/SIMPLE box checked?
If a non-spouse then the it can only be moved to another account as follows (and a Trustee-to-trustee transfer does not generate a 1099-R.) It is not clear just what the credit union did.
IRS Pub 590-B https://www.irs.gov/publications/p590b#en_US_2020_publink1000230538
Inherited from someone other than spouse.
If you inherit a traditional IRA from anyone other than your deceased spouse, you can't treat the inherited IRA as your own. This means that you can't make any contributions to the IRA. It also means you can't roll over any amounts into or out of the inherited IRA. However, you can make a trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of you as beneficiary.
Like the original owner, you generally won't owe tax on the assets in the IRA until you receive distributions from it. You must begin receiving distributions from the IRA under the rules for distributions that apply to beneficiaries.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
