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Messed up!! Did rollover of traditional 401K to new employer's Roth 401K. Now what?

I am helping my 25 year old son doing his own taxes in turbo tax for the first time ever. And discovered he has made a big mistake!! Luckily, the mistake was made in 2024 and we discovered it while doing his taxes, which we haven't filed because this has to be straightened out first! But I have no idea how!!

He decided to do a rollover of his traditional 401K from an old job he had had at Walmart, to his "new" (he has been there four years) job's Roth 401K plan. My understanding is this should not have even been allowed, but he must have completed something incorrectly. My question is HOW TO FIX THIS?!?!   They never told me parenting young adults would be this difficult! LOL

 

 

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1 Reply
MaryK4
Expert Alumni

Messed up!! Did rollover of traditional 401K to new employer's Roth 401K. Now what?

Unfortunately, there is no way to recharacterize the Roth 401k contribution.  

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