GreekGeek1222
Dryer sheet aficionado
I want to know if anyone has had this experience and what can be done about it.
Profit sharing account was opened in 2001 with Guy A as the FBO of the account. There was a total of 4 people named in the account. Guy A & Guy B both made a one-time contribution of - let's say $8,000 each - and left it alone. Both guys were co-owners of business and blue color guys who just worked hard and never really invested or had knowledge of investing. Over the years, only the market added to its funds to where it went up and down, and no more than a 5 figure amount, sadly, in 25 yrs.
Financial advisor in charge of the account obviously took advantage, as the account never ballooned as it was supposed to. Fast forward, Guy C & D left the company in mid 2000s. Guy A & B then had disagreements to where Guy A simply left the company he helped established after long fight. No need to argue if that was wrong or right. Guy B is now left with the company, with son in charge, though not sure if Guy B is in the corp on paper or just transferred all to son. As you can imagine no communication from anyone for years. Guy A &B are in late 70s.
Now, profit sharing account remained in Guy A's name. After receiving contact about account a few years ago, Guy A decided to look into this account as it is in his name. Now, apparently on the reports, the account is referred to a '401 k.' Over the last 3 years, Guy A was dealing with the advisor who seemed to take advantage of the account. He would just buy/sell stocks - often times sell in a matter of 48 hours - just to claim his commission. Guy A said no more and wanted to take money and put it in another brokerage firm. Guy A was instructed by new broker to liquidate account, ask for check, and deposit with new brokerage firm. Here's where the problem arises:
Guy A just got check. FYI, has 60 to deposit to avoid any tax implication. Went next day to new brokerage firm - it cannot deposit the check. Here's why: the check is made as follows:
Guy A Name
Company Name of 401k
FBO Guy A Name
address etc.
Guy A is told he cannot deposit it as it is made out. It should have been made out as 'roll over distribution of 'new XYZ firm' FBC.
Guy A contacted advisor, asked to reissue check as requested. Advisor seemed to be a d*** about it - saying account with him is ZERO - 'how can I reissue a check with zero balance?'
Now advisor says, let me see if you can REOPEN account with me and then transfer over funds to new firm that way. However, advisor says, you must open other account the same way.
This is what I'm inquiring -
Does Guy A reopen and leave the funds with an advisor who is greedy and just looking after his pockets? I'm telling you, he is not looking after account. I think he just wants to slowly suck every penny.
Advisor also mentioned, even if Guy A goes with other firm, Guy A is not entitled to the whole amount - and Guy A is aware of this. However, Guy A can deduct funds by law as he is at the age to do so. However, Guy A wants to change firms period due to the poor management of the account. Keep in mind, only Guy A is named as the FBO.
Right now, Guy A has the check in his hands and has 60 days...well 57...to redeposit funds without tax implications.
What does he do?
Profit sharing account was opened in 2001 with Guy A as the FBO of the account. There was a total of 4 people named in the account. Guy A & Guy B both made a one-time contribution of - let's say $8,000 each - and left it alone. Both guys were co-owners of business and blue color guys who just worked hard and never really invested or had knowledge of investing. Over the years, only the market added to its funds to where it went up and down, and no more than a 5 figure amount, sadly, in 25 yrs.
Financial advisor in charge of the account obviously took advantage, as the account never ballooned as it was supposed to. Fast forward, Guy C & D left the company in mid 2000s. Guy A & B then had disagreements to where Guy A simply left the company he helped established after long fight. No need to argue if that was wrong or right. Guy B is now left with the company, with son in charge, though not sure if Guy B is in the corp on paper or just transferred all to son. As you can imagine no communication from anyone for years. Guy A &B are in late 70s.
Now, profit sharing account remained in Guy A's name. After receiving contact about account a few years ago, Guy A decided to look into this account as it is in his name. Now, apparently on the reports, the account is referred to a '401 k.' Over the last 3 years, Guy A was dealing with the advisor who seemed to take advantage of the account. He would just buy/sell stocks - often times sell in a matter of 48 hours - just to claim his commission. Guy A said no more and wanted to take money and put it in another brokerage firm. Guy A was instructed by new broker to liquidate account, ask for check, and deposit with new brokerage firm. Here's where the problem arises:
Guy A just got check. FYI, has 60 to deposit to avoid any tax implication. Went next day to new brokerage firm - it cannot deposit the check. Here's why: the check is made as follows:
Guy A Name
Company Name of 401k
FBO Guy A Name
address etc.
Guy A is told he cannot deposit it as it is made out. It should have been made out as 'roll over distribution of 'new XYZ firm' FBC.
Guy A contacted advisor, asked to reissue check as requested. Advisor seemed to be a d*** about it - saying account with him is ZERO - 'how can I reissue a check with zero balance?'
Now advisor says, let me see if you can REOPEN account with me and then transfer over funds to new firm that way. However, advisor says, you must open other account the same way.
This is what I'm inquiring -
Does Guy A reopen and leave the funds with an advisor who is greedy and just looking after his pockets? I'm telling you, he is not looking after account. I think he just wants to slowly suck every penny.
Advisor also mentioned, even if Guy A goes with other firm, Guy A is not entitled to the whole amount - and Guy A is aware of this. However, Guy A can deduct funds by law as he is at the age to do so. However, Guy A wants to change firms period due to the poor management of the account. Keep in mind, only Guy A is named as the FBO.
Right now, Guy A has the check in his hands and has 60 days...well 57...to redeposit funds without tax implications.
What does he do?
