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Broker liquidated IRA Stock Acct

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C

Compufiler

Guest
What is the name of your state? California

Is it legal for a brokerage house to liquidate stocks in my small IRA acct. for past IRA custodial fees? They did this at the bottom of the stock's value and despite my having more than enough in their money market account to cover the fees. Moreover, I received no proper notice of their intentions. When I complained to their corporate offices I was told that they had the right to do so based on the agreement I signed when opening the account. They did offer to forgive the bill for the difference.

Is not an IRA protected by Federal law? If so, what is my recourse? Arbitration would cost too much, so can I take it to Small Claims Court? I had 100 shares of the stock that initially cost $21/share and hit $1.93 at it's low when they liquidated it. It went up to $4 a month later. The custodial fee was $235. To add insult to injury, they billed me for the difference: $42. I know this is very small potatoes but...it's the principle.
 


vrzirn

Senior Member
Education is always expensive. Indeed, all that stuff is in the small print of the agreement you signed. Of course, if it had been a large account and you were on very good terms with the broker, he would have been sure to give you advance notice.
They have done all they are going to do. They are not going to buy back the stock for you.
 
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