Constancy ERROR on Rollover - Having a Panic Assault

I hope I can clarify this effectively sufficient to get some recommendation/route. Please take it down a notch so I can perceive

I received a really upsetting letter this morning from Constancy. They admit they made a mistake after they did a partial inservice rollover from my 401K final August 2023.

At the moment, Constancy zero’d out considered one of my funding sources to the tune of $435556.20 (as an example it was a Mounted Earnings fund).

I used to be quoted the next breakdown:
$346192.28 pretax – went into new Rollover IRA
$18875,56 after-tax development – went into new Rollover IRA
$42160.68 Roth 401K – went into current private Roth IRA
$28327.68 after-tax foundation – went into current private Roth IRA

I acquired 2 1099-Rs in January 2024:
G exhibits: Field 1 – Gross distribution exhibits $393395.52; Field 2a – Taxable quantity exhibits $0.00; Field 5 – Worker contrib/desig Roth contrib exhibits $28327.68.
H exhibits: Field 1 – Gross distribution exhibits 42160.68; Field 2a – Taxable quantity exhibits $0.00; Field 5 – Worker contrib/desig Roth contrib exhibits $42160.68.

The Constancy letter states: “Following a overview, it has been found that you simply acquired a distribution with earnings associated to after-tax Roth contributions that have been incorrectly attributed to pre-tax contributions leading to incorrect tax info being offered. The proper particulars of the distribution and the knowledge that ought to have been included in your IRS Kind 1099-R are offered beneath:

Distribution Date: August 2023
Gross Distribution (Field 1): $365067.84
Corrected TAXABLE Quantity (Field 2a): $365067.78 I used to be informed the whole rollover was a non-taxable occasion.
Corrected Non-Taxable Quantity: $0.06

In case you elected to roll over all or a portion of this distribution, we advocate that you simply contact your tax advisor to find out the way to:
* Tackle after-tax quantities you might have unintentionally rolled over to a standard IRA or new employer plan, and/or
* Be certain that all quantities rolled over to a standard IRA or new employer plan from this distribution are correctly recorded as pre-tax or after-tax quantities.

Because of the age of the distribution, Constancy can’t concern an amended Kind 1099-R tax kind. To compensate for inconvenience and the potential elevated tax legal responsibility Constancy pays you an quantity equal to 30% of the quantity reported in error (grossed as much as estimate present yr taxes). In January 2025, you’ll obtain a 2024 IRS Kind 1099-R reflecting this cost as taxable earnings.”

They Constancy rep. stated I’ll obtain a reimbursement verify in October. It ought to cowl 1) the taxes owed from their error 2) the taxes owed on the reimbursement verify. There may be nothing additional they’ll inform me right now… simply wait.

MY QUESTIONS:
I do not perceive why $365067.78 is being proven as TAXABLE now within the Constancy letter.
If $365067.78 is now TAXABLE and Constancy goes to pay the taxes on it, will Constancy transfer the monies to a non-IRA account?
I suppose I’ve no alternative however to go forward and money the reimbursement verify and set the cash apart. I can not sit on the reimbursement verify.
How sticky is that this?