Asset rejected upon conversion
My tax client converted his IRA’s and 401Ks to ROTH IRA’s at the end of the year 2008. The assets of one of the 401Ks was held in a partnership. The brokerage company where the ROTH IRAs were set up denied taking the partnership hold because they decided to not add any more alternative investments. The representative from the brokerage company had told my client that they would take the asset. My client just found out about this denial. The 401K administrator issued the 1099R indicating the distribution was a conversion. The client has another company who will take the asset. Can this conversion still be accomplished for 2008 based upon the rejection by the first brokerage company and late notification to the client? If so what do we need to do. If not what do we need to do?
Permalink Submitted by Alan Spross on Sat, 2009-03-28 21:34
Where are these partnership units now? What happened to them? Was this a direct rollover that was only partially accepted, or was the entire rollover rejected?
It is also difficult to understand how the client could not be notified for almost 3 months.
If any assets are not in the Roth yet, then those values cannot be considered a 2008 conversion.