Between this message and my last one (“Why NOT To Use the Equity In Your Home”), I’m not trying to strike a somber tone, just a realistic one. The COVID pandemic has changed many people’s financial pictures, and with tax season knocking on the door, most folks are more worried than ever before.
Not a day goes by without a call here in the office asking about tax payment options, worries about judgments, and so on.
With that in mind, I’ve also had many people sharing with me how they “discovered” experienced financial accounts they’d forgotten about, they are now pulling money from to pay off bills or consolidating with other accounts.
These might be accomplished 401(k)s from earlier jobs, IRAs given from parents to new graduates, and various others, but the point of all this is simple: the institution that handles that account is going to make it sound far harder to close than it is.
One example recently shared with me was a client who had been given a tiny IRA from his parents as a 21st birthday gift. He’d never “forgotten” about it, but the bank that had originally handled the transaction had been bought and sold three times since that time. The total value wasn’t anything to write home about, and after he studied the various options he had to put these monies to work, he decided to close the account, cash it out, and invest it elsewhere.
To hear him tell it, the first three people he talked to in the bank made it appear as though he was trying to drill their teeth! My client kept calm, continued to explain his wants, and finally got through to someone who could help him.
Nearly forty-five minutes of being on hold, being transferred, and generally being told how dumb he was for doing this, when he got to someone who could actually help him, the transaction ended up taking only about fifteen minutes.
(As an aside, Hew took those funds, invested in the crypto market, and had already gained a larger return in four months than the account had produced in the last four years…)
The moral of the story is this: if you have lazy financial assets (or simply ones that you need to reallocate), you don’t always need to listen to the people at the bank. Yes, there are often financial or tax liabilities that come from closing a retirement account, but those aren’t impossible to sort out.
It’s your money, you have access to it whenever you need it! If you’ve got an account like this and aren’t sure about what – or how – to proceed, then feel free to reach out to me or my team and let’s discuss what might be the best game-plan.
IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem Make an appointment here! Or, call Toll-free 1-855-254-1892.
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