@porky2 wrote:
Thank you, this is very helpful.
Does anyone have any advice or thoughts about what to do about the situation overall - apart from reporting it correctly on my tax return? From reading, I see that the organization that originally held my retirement money was required to notify me about the automatic rollover, but they did not do so. Has anyone else ever dealt with this? What's the right way forward?
There isn't any tax way to get that money back. Lots of private IRAs charge maintenance fees, $2.50 per month is not so much against $100,000 but is obviously a lot against $50.
I believe your former employer was required to give you advance warning that your account was too small for them to maintain as an ex-employee. You had the choice of taking a withdrawal (and paying tax plus a penalty), or doing your own rollover (to a private IRA or a qualified plan at your new employer). Since you didn't answer within the required time frame, your ex employer completed a rollover for you. This is what they were allowed to do, but it sounds like they didn't notify you.
Did you change addresses or other contact information and not tell them? Did you have an exit interview with HR? The issue of qualified accounts should be brought up there.
Potentially maybe you could take them to small claims court, if you can show they never attempted to notify you of your rights and options. They did have a fiduciary duty to you.
And complaining to the HR manager might help them improve their process.
But there's nothing you can put on your tax return to get the money back.
