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Financial Planning / Foolish 401(k)s


Subject:  Re: OH _____ Date:  11/27/2018  2:07 AM
Author:  aj485 Number:  26174 of 26300

I contributed $21,593.02 in a Roth 401k as an option in the 401k I had. The earnings on the roth 401k were $42,158.33. Total $63,751.33

That money should go into a Roth IRA. It is NOT a 'Rollover Roth IRA' because there is no such thing.

I contributed $100 on a After tax contribution to my 401k

That money can also be rolled over into a Roth IRA. Again, NOT a 'Rollover Roth IRA'. Or, if you would rather, you can take the $100 out without having to pay taxes on it.

What happened today was the brokerage firm Rolled over $92,718.27 pretax money in my Rollover IRA.

So, you had:
$63,751.33 in Roth 401(k)
$ 100.00 in after tax 401(k)
$28,866.94 in Traditional (pre-tax) 401(k)

The brokerage firm deposited $63,751.33 in the Rollover IRA not Roth IRA. The brokerage firm deposited $100 into Rollover IRA not Roth IRA account.

So, apparently the brokerage firm was not aware that the $63,751.33 was from a designated Roth account and the $100.00 was from an after-tax contribution. That could be because you filled out the forms incorrectly, or it could be because they didn't pay attention to what was on the forms you filled out.

Now I say If they don't fix this I could get audited by the IRS.

No, THEY (the brokerage firm) needs to fix it. You need to ask them what additional forms you need to fill out, or what letter you may need to write. But THEY need to move the money to the correct type of account. YOU should not attempt to move the money yourself.

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