They did it as an indirect rollover because they sent the check to you personally as opposed to Charles Schwab. If you deposit the check into your CS IRA within 60 days (DO THIS ASAP) and make up the $4400 out of your personal funds then there will be no taxation. If you don't have the cash to do that and only deposit the check, then only the $4400 will be taxed and penalized. You will get a tax document from EJ saying they disbursed money to you, but CS will also report they received money from you and the IRS will know the two cancel each other out.