We are located in Maryland
For a period of 69 weeks my wife's former employer deposited $50 per week into her ROTH IRA account at T.Rowe Price and withheld after taxes $50 from a differen employee with a similar name for the same period.
When this was finally discovered by her former employer back in August 2007 they contacted her in a threatening manner and said that she had to return the money. Since that money was in a ROTH IRA it was not like she could just liquidate it and send them a check.
They sent two letters to her that both threatened legal action if she did not return the money. Our problem is there is no cut and dry way to return the money. Some of the contributions occured in 2006 which would requre her to ammend and refile her income taxes for 2005.
In December 2007, we agreed to a repayment plan where we would make monthly payments to them over the course of 12 months to reimburse them for the contributions they made in error to her account.
In January 2008, my wife found out that they had written a letter to T.Rowe saying that they were going to take legal action to take the money and T.Rowe had frozen her account and now she can not modify her investments.
We have the money to pay them but we are worried about what else they may have done that will create more headaches in the future because we do not know what they have done nor have they provided any professional help to resolve this matter in a way that would not effect our taxes.
Any help would be appreciated

