Please read Champ Mike9241's response to a similar question.
"These proceeds are called "restorative payments" and the IRS has ruled that they can be transferred back into the account that incurred the losses as a non reportable direct transfer that is not treated as a contribution. If the IRA account in which the loss occurred is still open, the payment should be transferred to that account. The ease of depositing the payment check into a different account may depend on how the payee reads on the check. In many cases the account that incurred the loss has been closed, and the IRS does not have an issue with the check being deposited elsewhere if the check is made out in a form that the new custodian can accept."
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