Hello-

My understanding is basis in an IRA is not allowed to be rolled into a 401k or 403b even if the plan allows for incoming rollovers. What happens if the client accidentally does roll basis in a Traditional IRA into a 401k or 403b? For example, they thought their IRA was 100% pre-tax funds but it wasn’t as they had actually made prior non-deductible contributions to the IRA?

What are the ramifications of this and corrective actions to pursue?

Thank you!