How an IRA gets titled depends on the purpose for which it was opened, not how it is subsequently funded. At issue is how it was funded. According to the code 4 Form 1099-R, it was funded illegally.
What needs to be determined is whether the funding was done legally and the code 4 Form 1099-R was issued erroneously, or if the code 4 Form 1099-R is correct and the new inherited IRA account was funded illegally. That depends *entirely* on the payee shown on the check.
