Client should have done a split direct rollover per Notice 2014-54 to get the full after tax amount into his Roth IRA efficiently.  He can still do a 60 day rollover, however he now is subject to Sec 402(c)(2), which states that the first amount rolled over from a distribution he receives is the taxable amount. So if he rolls an amount to his Roth IRA, it will be a taxable conversion, when he probably wanted only the after tax amounts to be rolled to the Roth IRA.  The fact that withholding must be replaced with other funds of his complicates this further. The best way to be sure that only the after tax amounts go into the Roth IRA and still comply with Sec 402(c)(2), would be to first roll the gross taxable amount to a TIRA, and then the gross after tax amount to a Roth IRA. He must come up with other money to offset the withholding to make these rollovers complete. If he then wants to take a distribution from the TIRA, he can do that with any withholding % he wants of 10% or more, or he can decline withholding. Also, not sure where the dollar breakdown is coming from. The mandatory 20% withholding on the distribution he received only applies to the taxable amount, so if the gross taxable amount was 63,677 then the withholding should have been 12,735, and the net check to him should have been 90,610.  But he only received 86,400?   Does he have the money to replace the withheld amount, at least for a month so he can complete the rollovers to IRAs, and then take an IRA distribution for what he needs. Of course, the withheld amount has already gone to the IRS.  

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