401K Mistakenly rolled over to Roth IRA

[ggoli]

401K was mistakenly Rolledver to Roth IRA. This was happend by 1) Employer not objected to it 2) Receiving Brokers Clearing house not objected and rolled over to Roth IRA.

Now this mistake is realized and Broker is asking me to rectify it by withdrawing ‘excess contributions’.

If I withdraw I will be paying huge taxes and penalities.

I contacted IRS and got the advice that Broker should recharacterize it. But broker is insisting that they can not do recharacterization because it was not a contribution but rollover.

I need help. Please advice how to make broker to follow the IRS instructions.

[Coronita]

Do a search on undoing a roth conversion. If I recall you can undo a roth conversion if you do so before the end of the tax year.

http://www.rothira.com/reverse.htm

[Coronita]

Do a search on undoing a roth conversion. If I recall you can undo a roth conversion if you do so before the end of the tax year.

http://www.rothira.com/reverse.htm

[ggoli]

Thank you very much. TD Ameritrade is saying I can not do it because it is a rollover.

The issue happened because TD ameritrade allowed a transaction which was never supposed to happen.
The problem is ‘ They allowed something which they are not supposed to do. They are NOT allowing me to do something which I need to do.

The information you pointed out is saying ‘Finally, the regulation explains what contributions cannot be recharacterized. These include tax free rollovers, SIMPLE IRA contributions, and SEP contributions.

[ggoli]

Thank you very much. TD Ameritrade is saying I can not do it because it is a rollover.

The issue happened because TD ameritrade allowed a transaction which was never supposed to happen.
The problem is ‘ They allowed something which they are not supposed to do. They are NOT allowing me to do something which I need to do.

The information you pointed out is saying ‘Finally, the regulation explains what contributions cannot be recharacterized. These include tax free rollovers, SIMPLE IRA contributions, and SEP contributions.

[Coronita]

I don’t think your accidental rollover was tax free, a simple, or sep, so Ameritrade is giving you the runaround (no surprise.)

[Coronita]

I don’t think your accidental rollover was tax free, a simple, or sep, so Ameritrade is giving you the runaround (no surprise.)

[ggoli]

Thanks a lot for your help and this is giving me a sign of relief.

It appears I have to fight with them with the response from IRS and showing them the definition of ‘taxfree’. Can you please direct me to where I look for the meaning of ‘taxfree’.

Thanks a lot.

Regards.

Gowri Goli

[ggoli]

Thanks a lot for your help and this is giving me a sign of relief.

It appears I have to fight with them with the response from IRS and showing them the definition of ‘taxfree’. Can you please direct me to where I look for the meaning of ‘taxfree’.

Thanks a lot.

Regards.

Gowri Goli

[ggoli]

Once again,

I checked the original statement. They have stated that it is a cash received/60day rollover.

I am thinking of claiming that that should be treated as cash received not as a 60day rollover because it was NOT allowed as rollover. Hence they should allow recharacterization.

Let me see their response.

[ggoli]

Once again,

I checked the original statement. They have stated that it is a cash received/60day rollover.

I am thinking of claiming that that should be treated as cash received not as a 60day rollover because it was NOT allowed as rollover. Hence they should allow recharacterization.

Let me see their response.

[Author]

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