Accidental IRA conversion – any recourse or suggestions?
Hello,
My wife recently attempted to roll over a pre-tax IRA account from a previous employer’s 403(b) to her personal Vanguard IRA rollover account. Unfortunately, filling out the paperwork, she inadvertently put in the account number for her Vanguard Roth account which resulted in a Roth conversion. Given that it was $300k, I think we are looking at an additional 100k in taxes this year.
There has been a lot of phone calls to try to get it corrected but with no luck.
I’m not a tax expert, so I’m looking for any advice or suggestions. Is there anything that can be done at this point? Any tips on reducing the tax burden or spreading it out? Should we pay the taxes with the Roth money (we are not 59.5 yet so I think there would be an additional 10% hit) or bite the bullet and pull it out of savings. Is there any bright side to this mess?
I’m sick to my stomach and trying to keep things calm around the home, any help or advice is appreciated.
Kind regards,
Sean
Permalink Submitted by Alan - IRA critic on Tue, 2022-09-06 22:48