Mods: Obviously, feel free to move this if it doesn’t fit in GQ
Details… My mother died a few months ago, and had two IRA’s. I informed both of the investment companies about her death.
Company A sent me a condolence letter, an information packet, and a form to fill out to disperse the funds in the account. They gave me the option of rolling it over, or taking the money out as a disbursement, as long as I checked the proper boxes and allowed them to withhold federal and state taxes. I sent back the form, the paperwork they required, and a week later, the money was in the bank.
Company B sent nothing. After repeated phone calls, they have still sent nothing. Not one letter, form, instructions, just… nothing. They have promised to return calls, and on the third one, finally gave me a case number. I did send in the death certificate, and the PR letter, and several letters requesting information.
Now, yesterday, after me calling them again, I am informed that they have opened an account with them in my name, and the funds will be transferred to that account. I told them that I never agreed to that, and have never signed anything (indeed, never received anything) from them. The representative explained that “This is required by the law. This is how all such claims are handled”.
She also stated that I would probably be receiving a letter with my account information sometime next week, but she could put me through to the “Members” department if I wanted to receive my account number now. I’m going to wait for the letter.
Legal question: Is this even legal? Or is it strikingly familiar to Wells Fargo?
Financial question: Since it sounds as if this is being handled as a pure roll-over, am I going to have a more serious tax hit on taking the money out?
Thanks for reading.