@dmertz , comment?
@Bill_L , what do you mean by "corrected with the trustee"? An indirect rollover would be you got a check. The IRS is going to look at that check as final. It's too late to send the check back and have the old trustee send the funds directly (electronically) to the new trustee. It's as set in stone as it gets. If you really can't do an indirect rollover of an inherited IRA (news to me but there's lots I don't know), the fact that you got a check is going to seal the deal as far as the IRS is concerned.
Do you want the trustee to apologize? Pay some of the tax?
Also, a point not raised by @fanfare :
If an indirect rollover is not allowed for an inherited IRA, then the money you put in the new IRA was a contribution, not a rollover, and was subject to the annual contribution limits. If the amount was more than $6000 (or $7000 if over age 50), or more than your contribution limit based on your other tax situations, you need to pull it back out of the IRA as an excess contribution.
