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In 2006, Client completed forms directing the 401(k) plan trustee to do a direct rollover to her IRA. The rollover was received by the custodian of her IRA and recredited to her IRA account. The client just found out that her IRA was a Roth IRA and not a tranditional IRA.

The client did not intend to convert this distribution to a Roth IRA, and would have told the IRA custodian to open a separate traditional IRA if she had been advised at the time of the rollover.

According to the IRS Notice on Distribtuions, the direct rollover should not have been made to a Roth IRA.

So, besides telling the IRA Custodian to transfer the distribution plus earnign to a tradtional IRA, what else has to be done to correct this error?

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