5-11-2011 my Bank converted from Wachovia to Wells Fargo. A Roth IRA that I had for many years was inadvertently changed to a Traditional IRA during the conversion. I did not catch the mistake until 11/2012 at which time I had it converted back to a Roth. Now I have received a 1099-R that states the entire amount is taxable income. I paid taxes on the Roth all those years that I had it. It was only a traditional for about 18 months. Do I really have to pay taxes on the entire amount rolled over to the Roth?

1 Answer 1


I think the issue would be that Wachovia/Wells Fargo who converted the Traditional IRA to a Roth IRA has told the IRS that you did the conversion, and so the IRS will want taxes on the money that came out of the Traditional IRA. You need to get Wells Fargo to issue a corrected 1099-R saying that it was a Roth to Roth roll-over, and possibly get a corrected 5498 for 2011 showing that the Wachovia Roth was converted to a Wells Fargo Roth. Else, the IRS might want an excise tax for a premature withdrawal from your Wachovia Roth, and assess penalties for excess contributions to a Traditional IRA in 2011 when the erroneous conversion was made, because to them it might look like you withdrew money from a Roth IRA, and made an excessive contribution to a Traditional IRA.

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    Definitely take it up with the bank, and not to be shy about it - scream and kick until they fix it.
    – littleadv
    Commented Mar 27, 2013 at 4:23

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