Hi everyone,
So this is about the new Roth contribution rule for 401k and above-threshold earners, in short we're forced to do Roth catch-up. Fine, not great but whatever. However here's my question: the custodian (effin Milliman) has slept on this and continued to accept as always pre-tax catch-up contributions from those individuals who MUST do Roth catch-up.
It's a done deal, the money has been taken out of pay checks, deposited into the 401k just as regular pre-tax contribution. Now what? What will happen at the end of the year? Will Milliman wake up and do a forced Roth conversion of that catch-up money and nicely send everyone affected 1099-R with a hefty tax bill for $8k worth of Roth conversion?