Failure to return the plan agreement

[Guest mvangri]

When you open an IRA account you have to complete a Roth/Traditional plan agreement, right?

What if you don't ever return it to the financial institution? On the institutions side, what due diligence do they have to make sure it is returned? Can they return your funds if say after a year you never return the plan agreement? Is there any reporting for that since they have held your funds for so long?

[K2retire]

I've never heard of a company accepting money if you haven't completed their forms.

[Guest mvangri]

I've never heard of a company accepting money if you haven't completed their forms.

Even online banks?

[mbozek]

When you open an IRA account you have to complete a Roth/Traditional plan agreement, right?

What if you don't ever return it to the financial institution? On the institutions side, what due diligence do they have to make sure it is returned? Can they return your funds if say after a year you never return the plan agreement? Is there any reporting for that since they have held your funds for so long?

Financial institutions have strict requirements that plan documents must be returned in a stipulated amount of time after which the IRA owner will receive a request to submit the documents within X days or the account will be closed and the funds returned to the owner. If the documents are not completed and returned the account will be closed. IRA agreement usually has language somewhere on the responsibility of the IRA owner to return the signed application. Return of funds is treated as a distribution.

[Borsley]

I've never heard of a company accepting money if you haven't completed their forms.

Even online banks?

I would assume most online banks have an electronic solution for forms and signatures so they shouldn't be any different.

[Appleby]

When you open an IRA account you have to complete a Roth/Traditional plan agreement, right?

What if you don't ever return it to the financial institution? On the institutions side, what due diligence do they have to make sure it is returned? Can they return your funds if say after a year you never return the plan agreement? Is there any reporting for that since they have held your funds for so long?

Financial institutions have strict requirements that plan documents must be returned in a stipulated amount of time after which the IRA owner will receive a request to submit the documents within X days or the account will be closed and the funds returned to the owner. If the documents are not completed and returned the account will be closed. IRA agreement usually has language somewhere on the responsibility of the IRA owner to return the signed application. Return of funds is treated as a distribution.

True- usually 30-days