1. Broker B reported the money to you and the IRS on a form 5498 that was probably issued in May, 2023. Do you have a copy of this form? Did broker B record this transaction as a regular contribution (box 1) or as a rollover (box 2)? When you deposited the money at broker B, did you tell them in advance that this was a rollover or were you silent, so they assumed that it was a regular contribution?
If broker B reported this as a contribution, you need to ask them to issue a corrected form 5498 to report it as a rollover. If you did not tell them in advance that it was a rollover, they may be unable to make the correction, because they may be required to assume it is a contribution unless told otherwise. If the transaction is already reported in box 2 as a rollover, then what is your problem?
2. Non-allowable contributions must be removed or the taxpayer must pay a penalty on each tax return after the non-allowable contribution. Can you provide more details about what contributions were made in which years, and why he was ineligible.
