Rollover to Bene IRA
Client has a beneficiary IRA and a traditional IRA. Out of curiosity, if the wrong account number is put on a direct rollover form from a 401k plan such that the money is then rolled into the beneficiary IRA instead of the traditional IRA, what would the ramifications be?
Permalink Submitted by Alan - IRA critic on Tue, 2019-04-02 02:57
If the custodian is not able to transfer it (non reportable transfer) into an owned IRA account, it will have to be treated as an excess regular IRA contribution and distributed with any earnings so that it can be rolled into an IRA within 60 days. The receiving custodian should not have deposited a direct rollover to an account with a different title than the 401k, so they should have caught this.