ROTH IRA was closed without my knowledge now I have to pay tax penalties and missed out on a year of earnings

Last spring I opened up a ROTH IRA. a couple of weeks later the agent I was working with asked me to send a fax of my drivers license. I did, and nothing else was said.

This week I received a 1099 form in the mail indicating that the entirety of my account was withdrawn.

I panicked and called the agent. She informed me that I did not send her my drivers license fax quick enough and that my account was closed. She said she mailed the check back to me months ago. However, I never received it and had no idea my account was closed. She told me she'd re issue the check and I can reopen the account.

The problem is now I've incurred a tax penalty by "closing" my account. I've also missed out on an entire year of earnings.

I believe this was an error on her part, but regardless if I didn't get her the fax in time she still never told me that my account had closed. If she had, I would have reopened it right away...now I've had 1k sitting out in space, I never cashed it but it was also not being utilized.

My question is do I have any recourse? Is there anything to be done or said for this error? Should I even bother discussing with an attorney?

Edit: Wisconsin

Posted Feb 16, 2017, 10:25 PM UTC · edited

29
Loading comments…