401K institution refusing to cut two checks for pre-tax and ROTH roll-over

[aginsber]

would really appreciate any insight or advice from this group.

 

i finally chose to consolidate an old 401k from a previous employer from about 5 years ago.  making this more complex is that i had started contributing ROTH into this 401k in addition to pre-tax, another previous roll-over, and employee match.  i am trying to move it into my current employer's plan, which i have confirmed multiple times will accept ROTH.  i had called both banks at least 10 times each to ensure this process would go smoothly.  i filled out the request for separation distribution form paperwork with someone on the phone who ASSURED me i would receive two checks - one with pre-tax and one with ROTH as that is standard operating procedure and the roll-in institution insisted on two checks.  of course, i only received one check for the full account balance.  i called and asked them to void the check and send two checks - they called me back yesterday to let me know that a supervisor had 'rejected my request'.  the other institution will not accept the check and this institution is refusing to write two checks.  now i have a large check written out to an institution (FBO me) that cannot be accepted.  without getting an attorney involved, do i have any recourse?  this is extremely stressful and again would appreciate any insight or help.  thank you.

[JOH]

If they are not willing to issue two checks, are they at least willing to provide a letter explaining where the funds originated from. If not, you ask for a statement or print your transaction showing the funding from Pre-tax and Roth and see if your new employer will accept that. 

[CarolC]

Your previous employer may be able to convince them to cooperate. It is standard procedure in the industry to cut two checks (and two 1099-R forms) when pre-tax and Roth are distributed from the same account. Apparently their call center staff knows this. Your former employer may not appreciate that their bank will not comply with the usual process.