Regarding your thoughts:
A. Correct, reportable on a code-4 Form 1099-R from EJ.
B. Incorrect. There is required to be no Form 1099-R for the transfer because the transfer is only permitted to be done by nonreportable transfer. The distribution from the account at the new broker is reportable on a code-4 Form 1099-R from the new broker.
C. Incorrect. There is required to be no Form 1099-R for the transfer because the transfer is only permitted to be done by nonreportable transfer.
In other words, EJ and the new broker have done everything correctly and have given you correct information.
Had a Form 1099-R been issued for the movement of funds to the new broker, it would imply that there was a distribution from the account as EJ that was not permitted to be deposited into an account at the new broker because a non-spouse beneficiary is not permitted to roll over a distribution. The trustee-to-trustee transfers that were performed were neither distributions nor rollovers.
