Do investment accounts disappear?

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Topic Author
userwithconcern
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Joined: Mon Dec 23, 2019 11:35 am

Do investment accounts disappear?

Post by userwithconcern »

In a different thread, another forum member casually mentioned that one of their accounts disappeared one day, and they requested more information like driver's license and such. Can this happen many years after the account was opened? What are people's experiences?
lakpr
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Joined: Fri Mar 18, 2011 9:59 am

Re: Do investment accounts disappear?

Post by lakpr »

userwithconcern wrote: Sat Jun 12, 2021 11:30 am In a different thread, another forum member casually mentioned that one of their accounts disappeared one day, and they requested more information like driver's license and such. Can this happen many years after the account was opened? What are people's experiences?
It is called "escheating". Accounts with no activity for significant number of years may need to be turned over to the state (of either the participant, or where the custodian is located: PA for Vanguard, MA for Fidelity, MD for T Rowe Price). Usually the retirement accounts are exempt from this rule, but depending on the custodian and the state, even the IRAs / 401k plans may be subject to the rules.

IANAL -- this is my understanding only. I usually make sure that I make transactions every two years or so -- as simple as moving investments from one fund to another -- just to avoid that.

My wife's credit union account in Indiana (we have lived in NJ for the past 18 years now) disappeared, but we got back the money through the state's Unclaimed Funds site. That was over 9 years ago, so details are a bit hazy to remember.
Last edited by lakpr on Sat Jun 12, 2021 12:00 pm, edited 1 time in total.
Topic Author
userwithconcern
Posts: 194
Joined: Mon Dec 23, 2019 11:35 am

Re: Do investment accounts disappear?

Post by userwithconcern »

To be clear, this question is about accounts that are being actively used.
lakpr
Posts: 11517
Joined: Fri Mar 18, 2011 9:59 am

Re: Do investment accounts disappear?

Post by lakpr »

userwithconcern wrote: Sat Jun 12, 2021 11:59 am To be clear, this question is about accounts that are being actively used.
Then, no. Unless it's been a computer glitch.
Topic Author
userwithconcern
Posts: 194
Joined: Mon Dec 23, 2019 11:35 am

Re: Do investment accounts disappear?

Post by userwithconcern »

lakpr wrote: Sat Jun 12, 2021 12:01 pm
userwithconcern wrote: Sat Jun 12, 2021 11:59 am To be clear, this question is about accounts that are being actively used.
Then, no. Unless it's been a computer glitch.
In the case of this forum member I was talking about on the other thread, they were asking for know-your-customer information, it looks like. I just wonder how long after account opening an account may be closed or locked for missing KYC information.

Certain documents have become more difficult to immediately obtain due to covid19 restrictions in government offices.
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Wiggums
Posts: 7027
Joined: Thu Jan 31, 2019 7:02 am

Re: Do investment accounts disappear?

Post by Wiggums »

userwithconcern wrote: Sat Jun 12, 2021 12:03 pm
lakpr wrote: Sat Jun 12, 2021 12:01 pm
userwithconcern wrote: Sat Jun 12, 2021 11:59 am To be clear, this question is about accounts that are being actively used.
Then, no. Unless it's been a computer glitch.
In the case of this forum member I was talking about on the other thread, they were asking for know-your-customer information, it looks like. I just wonder how long after account opening an account may be closed or locked for missing KYC information.

Certain documents have become more difficult to immediately obtain due to covid19 restrictions in government offices.
I never had a missing or locked account in 32 years.
"I started with nothing and I still have most of it left."
placeholder
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Re: Do investment accounts disappear?

Post by placeholder »

There have been reported cases of vanguard accounts "disappearing" that seemed to be related to attempted fraud so the account was locked down from any access until things were resolved.
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Monster99
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Re: Do investment accounts disappear?

Post by Monster99 »

lakpr wrote: Sat Jun 12, 2021 11:58 am
userwithconcern wrote: Sat Jun 12, 2021 11:30 am In a different thread, another forum member casually mentioned that one of their accounts disappeared one day, and they requested more information like driver's license and such. Can this happen many years after the account was opened? What are people's experiences?
It is called "escheating". Accounts with no activity for significant number of years may need to be turned over to the state (of either the participant, or where the custodian is located: PA for Vanguard, MA for Fidelity, MD for T Rowe Price). Usually the retirement accounts are exempt from this rule, but depending on the custodian and the state, even the IRAs / 401k plans may be subject to the rules.

IANAL -- this is my understanding only. I usually make sure that I make transactions every two years or so -- as simple as moving investments from one fund to another -- just to avoid that.

My wife's credit union account in Indiana (we have lived in NJ for the past 18 years now) disappeared, but we got back the money through the state's Unclaimed Funds site. That was over 9 years ago, so details are a bit hazy to remember.
One of my sub-accounts at my credit union (my share draft sub-account) disappeared from online access - when I called they said that it was due to no activity for 12 months, even though monthly interest was deposited in the account and I log into the account monthly.... I now move 10 bucks from checking to savings about every 7 months.... then back again.
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