I finally spoke with someone with the knowledge and know how in the accepting financial institution. The are familiar with the IRS code you had referenced for a waiver of the 60 day rule but since it has been over the 6 months it can not be done. They had asked what IRS code could they use on their part if it were able to be done internally since the time has passed and such a long time? They would normally give an exception to the rule if it were only a couple of days but since it has been months the only procedure is to remove the money in excess and then I could place it into the Roth IRA after receiving it. As far as the money received from the excess, I would end up paying taxes on it based on the IRS calculations plus penalty since it was early distribution. Then I would receive a new 1099-R from them in January of 2024 in which I would have to report it to the IRS. He did mention that when reporting excess removal to reference 8606 instructions but not necessarily use the 8606 form. They were willing to talk to an accountant or CPA which was nice, but at this point the company procedure for them is to do an excess contribution. I read word for word on what you had written and they understood it but due to time frame. Unless you have a IRS code of some sort on how the institution would report this internal transfer?
Anyways, lesson learned before doing a rollover confirm that the money is before or after tax dollar so that you know which type of account to place it in. Just for reference, the old plan was a 403(B) but I had the option to use after-tax dollar funds to fund it. I'm grateful that is was a small amount of money only under 2k but the calculation for the IRS I was told was based on the whole IRA account and then pro-rated and not just the money that came in. He also mentioned that I don't need to move the money over to the Roth IRA if I don't want to but I would need to keep track of the cost basis if I kept it in there. But then that defeats the whole tax-free at retirement and RMDs. I do not wish this on anyone, it is going to be fun trying to file this (so I may have to spend the money to avoid the additional headaches.) To be continued.....? I would like to thank you for all the assistance and knowledge you have passed on to me and to others.
