Need Hole Wizard Help

Good morning, I am having an issue with the hole wizard. I have a round coupling that I am trying to put threads in for a set screw. I started in the top plane and extruded the circle upards. Then to put the set screw in, I created a new plane from the right plane, and moved it out so it was tangent to my object. Then after I dimensioned my point within hole wizard I hit okay and it screwed up on me. Right at the start of the threads against the plane there is a rectangle across the opening of my hole. How do I resolve this? Is this an issue with where my new plane is? 

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