BEWARE! Your State may be "stealing" your retirement funds!!!!

[TitanMike]

Believe it or not, it's true. I just found out that my State requires all banking institutions to turn over all un-accessed accounts regardless of type, including ordinary CD's and IRA CD's if they haven't been "accessed" in a 3 year period (varies by state).

Found this out today when I got a notice that one of my IRA CD's was in danger of being handed over to the State I live in because I hadn't contacted ("accessed the account") the bank for some time. Well DUH!, it involves a 60 month CD and last I heard, that's 5 years. What's this 3 year "excrement"?

It even gets better. The State doesn't care if it triggers a taxable event (like the tax due when you cash in an IRA CD) which can separate you for a lot of money until you can claim it back from the IRS when you file taxes NEXT YEAR.

Last but not least, the State does not pay any interest on YOUR money their holding for safekeeping.

Good thing the banking institutions I deal with all have nice yields on 30 month IRA CD's and I only have to give up .1% in interest rate.

How to avoid this? From what I gather you have to contact the bank you have your money stashed in at least every other year or so. Some require that you mail of fax them a signed form (that they will send you) just to prove you are still alive.

Why are the States doing this? Simple, while the cash is still yours, the time the state gets to hold it in THEIR piggy-bank means that cash can be spent by the state and they write IOU's in your name, only paying them off when they find out the State has your money and you demand it back.


Great huh?

Final note, 26 out of 50 have laws now demanding that banks do this. Is "yours" one? How long before they all find out they can get short term interest free loans?

[Daycruiser]

Whew, that was a close one, good thing I don't have any money. Yes the term is "Escheatment", rules vary by state greatly on what it affects and for how long. But the most common is 3 years. So hug you money at least once every three years and you'll be fine.

[TitanMike]

Originally Posted by Daycruiser

Whew, that was a close one, good thing I don't have any money. Yes the term is "Escheatment", rules vary by state greatly on what it affects and for how long. But the most common is 3 years. So hug you money at least once every three years and you'll be fine.

Funny how a certain part of that word just pops right out.


So much for putting it in a 60 mo CD and thinking it will be safe for 5 years.

[Oaklevel]

Virginia is 5 years for dormant accounts and has been that way for at least 50 years nothing new. They do not bother IRAs though.

[Greg in michigan]

I can't believe they would do that
Pund intended
Income tax,
Sales tax
Fed tax
State tax
Property tax
Inheritance tax
Village tax
Capital gains tax
Ect, ect, ect
But the rest is all ours

[KyDan]

So your bank issues a 5 year CD and then surrenders it to the state after only 3 years???
Not buying it......

[Jfkmk]

Yup, same in New Jersey. $#&@ politicians will do anything to steal your money.

[Flybob]

In most states the money in the account stays at the bank but is listed as an unclaimed account. The bank makes several attempts to contact the owners after that the state posts a periodic list of unclaimed accounts. If you haven't checked your states unclaimed money list recently you should do so. You just need to search for it for your state. There are companies that also use the lists and contact owners and offer to get the money for you for a percentage. Don't use them.

[W5CI]

I get a 1099 at the end of each year and pay taxes on that amount

[TitanMike]

Originally Posted by Greg in michigan

I can't believe they would do that
Pund intended
Income tax,
Sales tax
Fed tax
State tax
Property tax
Inheritance tax
Village tax
Capital gains tax
Ect, ect, ect
But the rest is all ours

Our state even taxes when you die. Sales tax is charged on your coffin and I believe our state legislature is making professional services subject to sales tax too. Lawyers, CPA's, Barbers, and yes, even Funeral Directors. Here that's a 10% hit.

Another tax insult is property tax. Even after my house is paid for I'll have a $400/more pmt just for the property tax.

[TitanMike]

Originally Posted by W5CI

I get a 1099 at the end of each year and pay taxes on that amount

I even have to pay income tax on 85% of my SS benefits.

[clarkbre]

Originally Posted by TitanMike

I even have to pay income tax on 85% of my SS benefits.

But you're out of the RTA tax zone so don't feel too taxed! My wife's '17 Explorer costs $450 a year to license as opposed to $105 for my '16 F250. My old '11 F150 was about $300 a year to license. You can bet that buying both those vehicles used, we still had to pay state sales tax too. And, when I sold my wife's 4Runner privately to buy the Explorer, I had to pay $8.75 to report the sale to a private party.

The RTA tax is based on a scheduled depreciation of the MSRP on your vehicle when it was new. And, because my F250 has a curb weight of more than 6,000 lbs, it's exempt.

I don't know what gives.

Here's another one. My first trout of the season costs me $129...Hell, that's not even for the fish....just to get my line in the water:

$29 Fresh water fishing license
$35 Boat trailer license
$35 Discover Pass to use the launch
$30 Boat license

'Merica!

[Jfkmk]

Originally Posted by TitanMike

Another tax insult is property tax. Even after my house is paid for I'll have a $400/more pmt just for the property tax.

I wish I was only paying $400/month on property taxes!

[Jfkmk]

Originally Posted by Flybob

If you haven't checked your states unclaimed money list recently you should do so. You just need to search for it for your state.

Very true, and check often! My wife checked often for us and friends. I got back $750, a friend got back more than $1000, and another $2400. My wife kept checking her and relatives names. Her mother (dead for many years) was on the list. Her and her brother put in the flame and got back more than $11,000! It was a life insurance her father had but her mother over collected because she died a month after him.

[TitanMike]

Originally Posted by clarkbre

But you're out of the RTA tax zone so don't feel too taxed! My wife's '17 Explorer costs $450 a year to license as opposed to $105 for my '16 F250. My old '11 F150 was about $300 a year to license. You can bet that buying both those vehicles used, we still had to pay state sales tax too. And, when I sold my wife's 4Runner privately to buy the Explorer, I had to pay $8.75 to report the sale to a private party.

The RTA tax is based on a scheduled depreciation of the MSRP on your vehicle when it was new. And, because my F250 has a curb weight of more than 6,000 lbs, it's exempt.

I don't know what gives.

Here's another one. My first trout of the season costs me $129...Hell, that's not even for the fish....just to get my line in the water:

$29 Fresh water fishing license
$35 Boat trailer license
$35 Discover Pass to use the launch
$30 Boat license

'Merica!

The day I get the notice I'm getting caught up in the RTA zone I "move" 20 miles North to my Daughter's house. Only reason I'm keeping this house is that it's market value is still going up and I'm making more money on my equity than i could make in any other investment.

By then i may join those who put their money in gold coins and keep on the move. Let the "taxman" try ond find me[emoji2937][emoji2937]

[tuckerdog1]

A tad OT, but if you're not familiar with civil forfeiture, do some reading up on it. Never travel with more cash than you're willing to let the police steal from you.

Tuckerdog1

[TitanMike]

Originally Posted by tuckerdog1

A tad OT, but if you're not familiar with civil forfeiture, do some reading up on it. Never travel with more cash than you're willing to let the police steal from you.

Tuckerdog1

Recent SCOTUS ruling pretty much put an end to that, at least the way it was put in practice.

[tuckerdog1]

Originally Posted by TitanMike

Recent SCOTUS ruling pretty much put an end to that, at least the way it was put in practice.

I'll have to look that up. Thanks

[TitanMike]

Originally Posted by tuckerdog1

I'll have to look that up. Thanks

Here's an article on the ruling.

https://www.nytimes.com/2019/02/20/u...eme-court.html


While it didn't involve Cash, it pretty much set the tone for future cases where the seizure amounted to an unreasonable "fine", especially if due process wasn't followed prior to the seizure.

[aceinspp]

Originally Posted by clarkbre

But you're out of the RTA tax zone so don't feel too taxed! My wife's '17 Explorer costs $450 a year to license as opposed to $105 for my '16 F250. My old '11 F150 was about $300 a year to license. You can bet that buying both those vehicles used, we still had to pay state sales tax too. And, when I sold my wife's 4Runner privately to buy the Explorer, I had to pay $8.75 to report the sale to a private party.

The RTA tax is based on a scheduled depreciation of the MSRP on your vehicle when it was new. And, because my F250 has a curb weight of more than 6,000 lbs, it's exempt.

I don't know what gives.

Here's another one. My first trout of the season costs me $129...Hell, that's not even for the fish....just to get my line in the water:

$29 Fresh water fishing license
$35 Boat trailer license
$35 Discover Pass to use the launch
$30 Boat license

'Merica!

Sure glade I live in GA. If I lived where you folks do I'd be broke in 2days. LaterRJD