Thank you very much to all who replied.

The client is "young", in his late 50th, so it's not RMD.   He works for this employer part time, so the amount he contributes is very small, and Fidelity does not want to deal with this and just distributes the money (as a check, with federal and state taxes withheld) in December.   The client then turns around and deposits the whole amount (adding the taxes withheld) to a Schwab IRA.  To add to the difficulties, he also has a 401K at his other job, and his income does not allow for a deductible IRA contribution in 2021. 

I hope it brings some clarity to the questions, and I hope I will find the solution with your help.