A direct transfer of this account should not be reported by the custodian on Form 1099-R as a distribution, nor should it appear on Form 5498 as a rollover contribution, and it will not be reportable on your tax return. If reported by the custodian, the custodian will be improperly indicating that there was a distribution and rollover. Usually this would not be a problem since you could report it on your tax return as a nontaxable distribution and rollover, but given that you are only allowed to roll over one IRA distribution paid to you in a 12-month period, this could jeopardize your ability to do an actual IRA-to-IRA distribution and rollover.
