Client looking to do a trustee-to-trustee rollover to IRA and Roth IRA at TDA, completed Form TSP-70 and sent to custodian (TDA), which then completed its portion of the form and sent directly to TSP--inadvertently omitting one of the pages! TSP considers the page (4) to be voluntary so it processed the Roth IRA transfer fine, but ASSUMED, since pg. 4 was missing, that the $500k+ pre-tax rollover was a full distribution...sent client a check for $400k and the IRS a 20% w/h for $100k. Client contacted TSP with the above information, was told the review process was 3-5 weeks. Three HOURS later, called TSP to ask another question and was told the case was already rejected! [They also said they'd already sent the withholding to the IRS, a claim I'm a little dubious about.]
We have appealed the rejection, and included a timeline, the original form, a letter of indemnity from TDA, letters of apology from TDA acknowledging its error and other supporting information.
Beyond that, any suggestions on what could/should be done here? We have considered involving one or more Members of Congress for additional oversight, but have not done so yet.
Any thoughts/suggestions/input would be quite welcome. Fifteen years and I've never quite seen a case like this one.