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Registered
Join Date: Jun 2003
Location: Fresno, CA
Posts: 7,768
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Interesting - Roth 401k Distribution to wrong account
I did an "in-service" distribution from my Roth 401k to my Roth IRA. It finally posted today and I noticed that the money went to my "regular IRA" instead of my Roth IRA. This is not good because my Roth 401k is after tax and is now moved to a pre-tax account that I will have to eventually pay taxes on (again). So, I called and they are reversing the wire and now I have to do a new transaction.
Now I'm wondering.....what if they did a distribution from my "regular 401k" and posted to my Roth IRA? Would anyone notice? Would I need to correct this mistake (for them) or chuck it up to "they made a mistake that happened to be in my favor". Last edited by Tidybuoy; 09-01-2021 at 04:30 PM.. |
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09-01-2021, 04:27 PM
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Back in the saddle again
Join Date: Oct 2001
Location: Central TX west of Houston
Posts: 55,875
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The taxman will get his one way or the other.
My guess is that "they" would eventually figure it out. And when they did, they'd grab the taxes and assess a 10% penalty.
__________________
Steve '08 Boxster RS60 Spyder #0099/1960 - never named a car before, but this is Charlotte. '88 targa  SOLD 2004 - gone but not forgotten
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09-01-2021, 04:51 PM
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Registered
Join Date: Jun 2003
Location: Fresno, CA
Posts: 7,768
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You're probably right - except I don't think the 10% penalty applies because I am of age to withdraw (over 59 1/2).
As it turns out, my brokerage is returning the wire and my 401k agency must re-send correctly. |
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09-02-2021, 09:01 AM
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Back in the saddle again
Join Date: Oct 2001
Location: Central TX west of Houston
Posts: 55,875
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Quote:
__________________
Steve '08 Boxster RS60 Spyder #0099/1960 - never named a car before, but this is Charlotte. '88 targa SOLD 2004 - gone but not forgotten
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09-02-2021, 09:28 AM
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