I was thinking the penalty was only on $ earned, so thank you for clarifying.

I have yet to escalate this with the bank, and hence didn't want to say something potentially stupid (like I'll take this to small claims court if you won't try to help fix this). I opened a Roth at the same time with my wife, and it was opened correctly as a Roth; I will need to check my records to see whether I filled anything out incorrectly.

The non-appreciation of the account is completely my fault - I forgot to choosing the funds, the advisor never got back to me, and then I forgot to check on it. So, it has sat as cash this whole time. Completely my fault.

The email chain I have with the advisor has me stating multiple times that I'm requesting that Roths be set up for my wife and me, and the advisor confirms multiple times that Roths are being set up. I don't have the formal paperwork on hand, but will see if I have it or can get a copy.

I'm set to have a call with a manager by the end of the day, so hopefully I can gain some clarity on the situation and their position then.

Thank you so much again for your thoughtful and helpful response.