Wachovia telling me they don't want my money (retirement account)!?!

I just received a letter from my bank, Wachovia, telling me they are no longer able to service my account and that I must transfer my money from my retirement account or liquidate it within the next 60 days!

I just called them but no-one is available until 8am to take my call within Securities so I have to wait 2 hours to speak with someone.  The letter said to contact my financial advisor whom I have never met or spoken with before, I assume she was just assigned to me since my old one left Wachovia several months ago.

Do you think this has something to do with my UK address (since October)?

Also, I recently transferred most of my savings from my checking account via UKforex into my UK account in order to pay off some UK debt, but I don't see why that would be a problem for my retirement account.

No help here, but the investment company I use in Canada is not legally allowed to give me any advice if I call from outside the country (which is OK, I only want info, not advice), but I'm certainly allowed to keep the accounts, including the retirement funds, and I'm not even a Canadian.  Surely the rules can't be that different?

Hope you can get through to a manager soon!  Moving your retirement money around could cause a big tax headache.

Hope you can get through to a manager soon!  Moving your retirement money around could cause a big tax headache.

I know!  Hope I can get it all straightened out ASAP.  Thanks, I'll post back after I speak with someone in a couple of hours.

The letter didn't give you a reason? That seems unjust.

Could it have something to do with money laundering and the US Patriot Act and tighter rules or something, like possibly being related to having a UK / foreign address and people being uptight in interpretation or something?

http://www.wachovia.com/misc/0,,260,00.html

Good luck contacting your financial advisor. I would suggest follow up with anything in writing for your records. 

The letter didn't give you a reason? That seems unjust

I agree!  They should have explained it!  Anyway, I just got off the phone with my financial advisor's secretary.  Here's the deal:  Apparantly, England is on Wachovia's list of "unallowable countries".  She said it is because of licensing and registration requirements imposed upon the broker from the dealer in the UK--something like that.  It's not because of fear of money laundering or terrorism like I originally thought.

So now the question is (which she couldn't answer) what US banks *do* allow UK residents to hold a traditional IRA?  Any suggestions?  Commerce Bank maybe?  This is going to be a pain to do, but thank goodness for Skype at least I can call cheaply.

Also the secretary was pretty sure putting the money in a different US bank would be considred a "roll over" and I would not have to pay any tax on moving the money (is she correct?) which of course if I liquidated it I would pay loads of tax.

Can anyone point me in the right direction on how to do this easily with a minimum of phone calls?

I just spoke with someone at Commerce Bank in the investments department.  He said it was *in fact* because of the Patriot Act that I must have a US address.  He said I should just use my mom's address, that I was going to have a problem otherwise. 

He also suggested moving the money to a UK Bank in the equivalent of an IRA.  Anyone know anything about British retirement funds?  Would I have to pay taxes on this money if I moved it from the US to the UK?

The guy at Commerce was really nice and he understood my dilemma, but told me apparantly there has been loads terrorist  money being funnelled into the US through bank accounts and retirement accounts as well.  This is so annoying. 

Something didn't sound right about this, so I did some googling and found this:
http://www.aca.ch/overseas.htm

It sounds like Commerce Bank may be giving you incorrect information. Up to you whether you want to call them on it or just look for another bank. Maybe try HSBC?

My retirement savings (very small!) are in an IRA CD through a US credit union. I didn't have any trouble updating my address with them, and I haven't been told that I have to close the account.

I rolled over that money from an IRA with a former employer that I had to close because I was no longer working for them, and I didn't have to pay any tax or lose any money. So at least within the US you should be ok. I have no idea about moving it to the UK, though!

Good luck! Dealing with banks is SO annoying!!!

ETA: Here's a more official source!
http://www.usembassy.org.uk/scotland/newsletter_mar07.html

You might want to try posting about this on the tax board, as there are a couple of professionals who post there. They are specifically knowledgable about US/UK tax issues. Sounds like this guy might not have known what he was talking about, and unfortunately unless you have someone well-versed in both systems, I think that's pretty common.

From my very limited knowledge, I don't think you want to be moving it to the UK. Not even sure if it is possible, and you would probably be liable for US taxes.

I have my IRA and Roth IRA sent to my Mom's address. Just never bothered moving them, and now I think I'll keep them put.

Something didn't sound right about this, so I did some googling and found this:
http://www.aca.ch/overseas.htm

It sounds like Commerce Bank may be giving you incorrect information. Up to you whether you want to call them on it or just look for another bank. Maybe try HSBC?

My retirement savings (very small!) are in an IRA CD through a US credit union. I didn't have any trouble updating my address with them, and I haven't been told that I have to close the account.

I rolled over that money from an IRA with a former employer that I had to close because I was no longer working for them, and I didn't have to pay any tax or lose any money. So at least within the US you should be ok. I have no idea about moving it to the UK, though!

Good luck! Dealing with banks is SO annoying!!!

ETA: Here's a more official source!
http://www.usembassy.org.uk/scotland/newsletter_mar07.html

I agree that doesn't sound right. I left my money behind in a 401K 3 years ago, but when my old company merged with another and went with a new investment company, I stayed with the company but rolled the funds into an IRA so I'd have control over it, rather than be at the mercy of the merged company...anyway, I'm with Fidelity, and they have no problem with me being in the UK...I get a monthly statement from them, there wasn't even a blip on the radar when we moved and I let them know my new address...

Thanks guys!  I really *don't* want to move it to a UK bank--I will call Fidelity tomorrow (I'm done with calls for today!).

Those links are helpful, too.  I've got to write the home office a  snail mail letter though and you know the letter I received from my bank gives me 60 days to do something.  What happens after that?  The answer I was given was, "It will be very hard to move your money after that."  Hey--it's *my* money!  I hope this whole thing doesn't take more than 60 days!

No advice, but best of luck! I hope you get this sorted soon!

There is a distinction between people having their 401K account open at a US bank versus those who look for advice from an investment advisor at a bank.  In the former, you normally service the account yourself - i.e. you *normally* wouldn't go and ask an investment advisor what funds to invest in.  In the latter case, where an investor has an IRA account through their bank, it is feasible that they depend on the advice of the bank to invest their IRA.  If you have a US address, you should report this as your home address to the bank so it can continue servicing you.  You are SOL if you do not have a US address and expect investment advice from your bank.  An investment advisor cannot service your account, for money laundering reasons, if you do not have a US address.

I opened an IRA account with a UK address 2 years ago so I can assure you it is not in violation of the Patriot Act

Could it have something to do with money laundering and the US Patriot Act and tighter rules or something, like possibly being related to having a UK / foreign address and people being uptight in interpretation or something?

http://www.wachovia.com/misc/0,,260,00.html

I'm still thinking it might have something to do with people being uptight in interpretation or something regarding the Patriot Act. Is there not a consumer advisory service in the US that could help you negotiate this or go to higher management demanding a reason in writing for you to be able to dispute or something?

It just sounds strange to me......

There is a distinction between people having their 401K account open at a US bank versus those who look for advice from an investment advisor at a bank.  In the former, you normally service the account yourself - i.e. you *normally* wouldn't go and ask an investment advisor what funds to invest in.  In the latter case, where an investor has an IRA account through their bank, it is feasible that they depend on the advice of the bank to invest their IRA.  If you have a US address, you should report this as your home address to the bank so it can continue servicing you.  You are SOL if you do not have a US address and expect investment advice from your bank.  An investment advisor cannot service your account, for money laundering reasons, if you do not have a US address.

Advice is the last thing I want.  I just want my money to sit there and get interest like it has been doing for years and years.

I opened an IRA account with a UK address 2 years ago so I can assure you it is not in violation of the Patriot Act

Was that with Wachovia?

I'm still thinking it might have something to do with people being uptight in interpretation or something regarding the Patriot Act. Is there not a consumer advisory service in the US that could help you negotiate this or go to higher management demanding a reason in writing for you to be able to dispute or something?

It just sounds strange to me......

Absolutely.  I'm calling Wachovia back today and I'm not going to be nice anymore.  If it's still a problem I really don't want the hassle of a dispute; I'll just roll it over into a US bank that will take it--maybe Fidelity--I'll call them today as well.