Folks,
I wanted to come back and post the latest on all that has happened.
First off, I have gotten this corrected - THANK GOODNESS!!
To recap, I had funds from a Regular IRA transferred over to a Regular Brokerage account unknowingly.
For the rest of this post, we will call Bank A as the bank that allowed the transfer to occur and Bank B as the bank that received the monies into a newly opened regular brokerage account.
Bank A accepted the mistake and helped to review options. Bank B wasnt much help.
Since monies were transferred about a year ago, the original portfolio which was a mix of stocks and monies had been revised quite a bit where several underperforming assets had been sold off. Remember that all along, I believed that I was dealing with a regular IRA at Bank B.
Steps to fix :
Bank A sent Bank B an indeminification letter demanding recoupment of all funds back to the account it originated from.
Bank B complied.
Bank A worked through their Backoffice to revitalize corrections given that the underlying assets had changed and grown over that 1 year period.
In parallel, I opened a fresh Regular IRA back at Bank B.
I then initiated an ACATS transfer using the correct account at Bank B to initiate a full ACATS transfer from Bank A (which should have been the right way to do it).
In the meantime, I did receive a 1099 from Bank B and have requested that to be corrected. Will post when I have an update.
Lucky for all, Bank A has not issued a 1099-R distribution letter to the IRS.
Also, Bank A has been more than willing to support me all along for an event that should have never allowed to occur on part of Bank A.
All in all, things are looking sunny!
