Roth to Traditional IRA ?

[utt00hh]

Looking for advice here please.
After employment term, took Roth money to bank for rollover.
Bank put Roth money into new Traditional IRA.
Upon receiving notice that short term IRA CD matured, I realized that bank should have kept Roth funds as Roth funds to avoid taxes on principle.
Now how can I have that principle reconsidered as Roth to avoid IRS income tax on it?

[disneysteve]

Just to be clear, you had a Roth IRA at one place and rolled it over to what you thought would be a Roth IRA somewhere else but they screwed up, made it a traditional IRA, and you didn't notice. is that right?

I would go into that place IMMEDIATELY and get them to fix it. How long ago did this happen?

[utt00hh]

This happened a while back, and Bank then told me I needed a private letter ruling to roll back into Roth.
I have been involved with IRS since then, since money wasn't rolled over within 60 days.

[disneysteve]

money wasn't rolled over within 60 days.

So not only did you accidentally switch from a Roth to a traditional, you also took possession of the money first rather than doing a rollover and violated the 60-day rule.

I hate to say it but you're probably out of luck. You're going to get hit with all the taxes and penalties.

You might have been able to fix it had you caught the mistake right away (although you still would have violated the 60-day rule) but if a fair amount of time has passed, there likely isn't anything to do at this point.

[utt00hh]

I thought about requesting a private letter ruling to waive the 60 day rollover requirement based on the complication of roth funds misidentified as traditional.

[disneysteve]

I thought about requesting a private letter ruling to waive the 60 day rollover requirement based on the complication of roth funds misidentified as traditional.

Can't hurt to try.

[utt00hh]

I believe the cost of private letter ruling is $1500.

[disneysteve]

I believe the cost of private letter ruling is $1500.

Oh. How much are you out in taxes/penalties if things stay as they are?