401k after tax to IRA – two checks

Submitted by mark mercer on Thu, 2018-02-22 21:50

401k trustee sent two check to new IRA trustee. One for the pre tax amounts, then a separate check for the after tax amounts.
New IRA trustee has both in an IRA account. (apparently new trustee did not have instructions that the after tax would be ideal for a Roth a/c). Is it now too late to get one into Roth status? (the after tax check).
New IRA trustee won’t just set up a new Roth and receive that after tax amount from the IRA a/c that just received both checks.

How can we perhaps unwind this, or any other alternatives to get the after tax to Roth status.
Thank you very much



Submitted by Alan - IRA critic on Fri, 2018-02-23 02:54

This could be a problem. Was this done? >>>>>Speaking of a situation where a direct rollover goes to more than one retirement plan, it says: 

[I]f the direct rollover is to two or more plans, then the recipient can select how the pretax amount is allocated among these plans. To make this selection, the recipient must inform the plan administrator of the allocation prior to the time of the direct rollovers.

 Note the importance of telling the company in advance which dollars (pre-tax or after-tax) are going to which IRA! This may seem like a trivial matter, but you haven’t followed the rules if you simply say, “Pay $30,000 to my traditional IRA and $10,000 to my Roth.” You need to say, “Pay the pre-tax dollars to my traditional IRA and the after-tax dollars to my Roth.”  >>>>  

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