Roth IRA and Traditional IRA

[Victor Xiong]

Michigan.

I started a Trad. IRA and a Roth in 99, and authorized a transfer of about $ 1000 into my Trad. IRA. But only a Roth account was set up and the transfer of was made to it. I have been make annualy contributions to my Roth account. March 02 I tried to correct the problem about that transfer, but the broker arbitrarily converted my Roth into a Trad. IRA. It turned out that they have my Trad. IRA application on file, but misplaced my application for Roth. I have all the evidence (copies of application forms, transfer form, and correspondences from broker for my Roth account prior to March 02).

My question: if the broker refuses to correct the problem (convert the Trad. IRA back to Roth minus the initial transfer of about $1000), what legal options do I have?

 

[loku]

MY QUESTION: IF THE BROKER REFUSES TO CORRECT THE PROBLEM (CONVERT THE TRAD. IRA BACK TO ROTH MINUS THE INITIAL TRANSFER OF ABOUT $1000), WHAT LEGAL OPTIONS DO I HAVE?

If the broker does not correct the problem, then you could probably sue the broker for negligence. If you could prove the facts you posted, you would surely win the suit. You would then be entitled to damages. Your damages would be the loss to you that was caused by the negligence. Probably the loss, if any, would be negligible, so the suit would probably not be worth your time, even though you could bring it In Small Claims Court.