Ok....I will call him tomorrow and try again but this time I will include, "to accept self-certification under IRS Rev. Proc. 2020-46 (reason 3.02(a), financial institution error, and 3.02(c), the distribution was deposited into and remained in an account that the taxpayer mistakenly thought was an eligible retirement plan" as a code for the institution. Basically, if they did transfer it internally they would still need to do the calculations on the gain since the IRA has additional funds and was established before this rollover. The person assisting me is probably also confused or has never done it this way hence the reason why he is asking me how they would file that internally as a brokerage or report it to the IRS is my assumption. But he did mention that is how they resolved it with another client by requesting an excess distribution and then putting it into the Roth. But your logic makes a lot more sense since I would not necessarily be rolling over excess funds. I will retry again and file for the extension. I will give you a follow up but in the meantime are you for hire to help explain this to him? Thanks again.
