Here is what happened to me in April of this year.

I lost my job in April ’08 and elected to take my 401k and role it over to an IRA I had set up. By mistake I elected the option to take a distribution. I knew better because I had been managing my money myself for years and to make matters worse, I have a business degree in finance. When I received my check from the bank it was a “net” amount of $65,000. The next day I took the check back to the bank and delivered it personally to the VP of Corporate Benefits. I told her I elected the wrong box and just wanted the bank to cut me a check for the balance in the 401k, which was $85,000, and I would “roll” it over into an IRA I had already set up. She stated to me that they could handle that, no problem. The person assigned to me also told me in email and in conversation that it was a simple fix. Well after 60 days it was not resolved. During this time I had emailed and called the person who was assigned to handle it for me. I think on day 57 or 58 the bank mailed back to me the original check. What a shock to me. I was livid. After talking to the bank they stated they could not reissue me a new check for the $85,000 and that they already sent the withholding to the IRS as required of them and that I would need to pay the taxes on the distribution. The bank finally agreed to reissue me a check with a new date, but only for the $65,000. They told me there was nothing they could do for me. They had since been acquired by another bank. Since I had already set up an IRA, I immediately deposited it into the IRA account. It still sits there today untouched. I was left to deal with the IRS myself. During this time I had spoken numerous times with my tax advisor and he finally said to let it go and that he would file paperwork to see if he could get my $20,000 back. I have tons of emails of the correspondence with the bank over this matter and am hopeful I’ll be victorious. Funny thing is, the bank advisor told me in an email and on the phone that he gave me the wrong advise on day one when I contacted him.

Question — Will I be able to get my $20,000 back? Seems to me that eventhough I made a mistake, and took all the right steps to right it, I may still lose my money.