HELP Roth conversion gone wrong

Submitted by Nick Pappas on Wed, 2018-11-07 20:20

Admin assistant converted $197k to Roth instead of $77k for client. I know recharacterizations are gone but are there any exceptions for when the investment firm screws up?

Any thoughts or suggestions would be greatly appreciated.

Thanks in advance
NIck



Submitted by Alan - IRA critic on Thu, 2018-11-08 02:13

Nick, no easy solutions to this. Generally, the client should seek a correction from the investment firm ASAP and ask for a decision within a couple weeks if they will comply. If they refuse, all that is left is a legal solution and these tend to be very expensive since investment firms have plenty of experienced attorneys and deep pockets to fend off plaintiffs. Would have been easy a year ago before recharacterizations ended.

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