Roycal

One would need much more info to solve the problem, of course, but there are many ways to approach this. You can look for the least expensive solution, or a solution that would make more sense from the employer's (controlled group's) compensation goals (assuming it is just not to feather the nest of the HCEs while giving most everyone else as little as possible, i.e., a shelter plan). To do the job right, you need to engage the sponsor's or controlled group's ERISA attorney (or other highly qualified expert).

Report post Posted 20 hours ago "Here is a very helpful chart from IRS that makes the question of "what can I rollover from where" a very simple glance." https://www.irs.gov/pub/irs-tege/rollover_chart.pdf I absolutely love this chart. It amply illustrates the absurdity of our tax-favored retirement plans system.

I agree with the others who say the situation as you describe it is confusing. As another contributor (maybe more than one) has said, what's important is the legal document actually adopted to establish whatever "account" was established. Was it an IRA legal document ("plan" document) or a 401(k) plan document? Or maybe only a brokerage account document? If in fact an IRA document was adopted, I don't believe it should matter that the "account" was "named" a "401(k)". If a different (non-IRA) document was adopted, then as you understand your client has a mess on his or her hands. The client apparently signed some sort of "account" application. That application should have clearly identified the legal document that governed the "account," and the client should have been given a copy of the legal document. Note that an IRA document will contain the specific legal requirements, words, necessary to have an IRA. You should get copies of the application(s) and related documents the client signed and go from there. This link may be useful: https://www.irs.gov/retirement-plans/retirement-plans-faqs-relating-to-waivers-of-the-60-day-rollover-requirement