Can anyone tell me if there is a law that prevents a mutual fund company from correcting an error or misunderstanding in the amount of taxes that are witheld after a withdrawal is made from an IRA? Case in point: contact American funds and tell them client wants to liquidate entire account and needs to net a certain amount with balance to be witheld for taxes/penalty. American service rep quotes percentages witheld would net the given amount, but is wrong(4100 wrong). Clients net less than requested amount. American now says they can’t change it one day later.
They can fix it. They may just choose not to. I work at Jones, I have made that mistake, and they fixed it several days later (after receiving check).
Now, because the entire account was liquidated, that might have something to do with it. My experience at Jones was a situation where there was just a small distribution, so it was fixable. Maybe the issue is that client would have to actually send the money back to American.
Try asking them to cancel the check and reverse the transaction. Then re-do it. No idea if it will work.