Facts:

Client age 60, retired December 2021.

In Jan 2022 with 401k custodian client processed the following rollovers:

1. 3.7M taxable portion of 401k, check to be made payable to client’s TRADITIONAL IRA

2. 20k after-tax contribution portion of 401k, check to be made payable to client’s ROTH IRA

Instead of sending two separate rollover checks, the 401k custodian (one of the largest), the custodian instead sent client 1 rollover check of $3,720,000 made payable to client’s TRADITIONAL IRA.

Client called custodian a few days ago and the custodian admitted a mistake was made and that two separate rollover checks should have been sent.

Today, however, custodian is saying they can send two checks, but the 20k after-tax contribution check must be made payable directly to client and cannot be made payable to his ROTH IRA.

QUESTION:

If the 20k after-tax contribution check is made payable to the client himself and not to his ROTH IRA, can he simply deposit this check into his checking account and make a new check payable to his ROTH IRA and roll it over within 60 days? Any other issues to worry about?

Thanks,