Q: A Roth 401(k) (designated Roth) can ONLY be rolled into a Roth IRA.
A: I thought so too, but either they changed that, or the agent doing the transfer screwed up. Their process was screwy to begin with, I actually think they have a flaw in their system and I told them that, but they claim I made the mistake in transferring my traditional 401k to my Roth IRA account. I'm not here to point fingers, I just don't want to get taxed for a big transfer all at once from a traditional 401k to a Roth IRA account that should never have occurred.
How was it put into the Roth IRA? Was it an electronic transfer or did you received a check made out to your IRA any you deposited it without telling the IRA custodian which type of IRA it was to go to?
While 401(k) custodians are supposed to make checks payable to xxx's Traditional IRA or xxx's Roth IRA many do not and leave it up to you to tell the IRA custodian what type of IRA the money is to go to.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
