With regard to an IRA, if there is an appropriately prepared Form 1099-R, there is a distribution and, if there is a distribution, it's not a trustee-to-trustee transfer. A distribution from an inherited IRA paid to a non-spouse beneficiary is not permitted to be deposited into another inherited IRA. If the movement of the funds is properly done by trustee-to-trustee transfer and the original IRA custodian issues a Form 1099-R, that's an error on the part of the original IRA custodian that needs to be corrected by issuing a corrected Form 1099-R to show that the amount distributed was $0.
