Hello,

I have a client who had a 401k with both pretax money and Roth money in it. They retired and rolled both balances over. They intended to roll the pretax portion to a Traditional IRA, but in error rolled it to a Roth IRA, thus making it a taxable rollover. Is the following allowable to correct this error?

1. Treat the pretax rollover amount to the Roth as an excess contribution.

2. Remove the pretax portion as a return of excess.

3. Deposit this portion to the Traditional IRA, representing an indirect rollover from the original 401k plan (assuming still within 60 days since 401k distribution).

OR….must they leave the amount in the Roth and recognize the taxes?

Thanks!