Back before I was 21 and eligible for my company 401k, my father helped me open a small IRA. I got statements on it for a while, but nothing for a while and recently I remembered it and decided I need to track it down and figure out what to do with it. I called the company it was with and they couldn't find anything under my name or SSN. Could they have just closed it if I hadn't done anything on it for many years?

It happens. For example, if you moved and they didn't process a change of address, they likely would have escheated the balance to the state of record.

Some fund companies close accounts on a regular basis due to small balances/lack of activity. If you know what investment you had, you can check the prospectus or other marketing material for specific information.

Thanks. I will check with the state to see if anything got escheated for me. It just seems odd to me, that an IRA, which is supposed to be retirement account and therefore should be around for almost another 30 years for me could be closed. Seems like it goes against the whole purpose of it.

It's been my experience that IRAs generally should only be escheated after age 70 1/2 (mandatory distributable event) + x years of inactivity & client contact. You might ask the company's policy on escheatment.

Is it possible that the account is set up under your parents SSN or other vesting? Do you have an old statement that could help in the location of the account?

It was definitely under my SSN. I need to dig through some old records so I can find an old statement so I can call them back and see if they can find out what happened to it. My other thought is that maybe it just got eaten away by fees over the years and there wasn't anything left.

Where did you ever get that idea? IRAs are subject to state laws on abandoned property which allow property to be escheated after a number of years of no activity by the owner and/or failure of the owner to contact the institution. Escheat does not apply to qualified plans subject to ERISA for which state laws on escheat are preempted.

Example: Ala. Code, Sec. 35-12-72 (a)(6): “Property in an IRA, qualified defined benefit plan, or other account or plan that is qualified for tax deferral under the income tax laws of the U.S., three years after the earlier of: (a) the date of the distribution or attempted distribution of the property, (b) the date of the required distribution as stated in the plan or trust agreement governing the plan, or (c) the date, if determinable by the holder, specified in the income tax laws of the U.S. by which distribution of the property must begin in order to avoid a tax penalty.“
Ill. Compiled Stat. Ann., Sec. 765 ILCS 1025/2(e): "Property of any kind held in an IRAis not presumed abandoned earlier than 5 years after the owner attains the age at which distributions from the accountbecome mandatory under law."

The above from an outline from the NAUPA National Association of Unclaimed Property Administrators. Apparently several states have similar statutes. I received this opinion many years ago from an attorney who advised a previous employer. I haven't researched this issue in many years. I agree that each states unclaimed property statutes wouild apply.

Edit below to add california Civil Procedure Code:

1518. (a) All tangible personal property located in this state and,
subject to Section 1510, all intangible personal property, and the
income or increment on such tangible or intangible property, held in
a fiduciary capacity for the benefit of another person escheats to
this state if after it becomes payable or distributable, the owner
has not, within a period of three years, increased or decreased the
principal, accepted payment of principal or income, corresponded in
writing concerning the property, or otherwise indicated an interest
as evidenced by a memorandum or other record on file with the
fiduciary.
(b) Funds in an individual retirement account or a retirement plan
for self-employed individuals or similar account or plan established
pursuant to the internal revenue laws of the United States or of
this state are not payable or distributable within the meaning of
subdivision (a) unless, under the terms of the account or plan,
distribution of all or part of the funds would then be mandatory.


Oregon Statute Below:

98.332 Property held by fiduciaries. (1) All intangible personal property and any income or increment thereon, held in a fiduciary capacity is presumed abandoned unless the owner has, within two years after it becomes payable or distributable, increased or decreased the principal, accepted payment of principal or income, corresponded in writing concerning the property, or otherwise indicated an interest as evidenced by a memorandum on file with the fiduciary.

(2) Funds in an individual retirement account or a retirement plan or a similar account or plan established under the Internal Revenue laws of the United States are not payable or distributable within the meaning of subsection (1) of this section unless, under the terms of the account or plan, distribution of all or part of the funds would then be mandatory. [1957 c.670 §9; 1983 c.716 §5; 2003 c.580 §1]

Another thought is "fees." Some companies charge monthly or quarterly or yearly fees for open accounts.

Is it possible your account got completely depleted because of fees?

That is something I am wondering myself. I still need to find my old statements.