Compliance Question of the Week

We have several IRA accounts that were opened 10 or more years ago for which our statements are being returned, and our members have not contacted us. At what point do these become dormant and get sent to the state?

Planned savings accounts are not payable or distributable until distribution of all or parts of the funds would be mandatory. Once this occurs, the accounts begin to age for unclaimed property reporting. If there is no positive owner contact after three years, the account is considered abandoned. The mandatory payout age for an IRA account holder is 70 1/2.

Related Links

RCW 63.29.060
DOR Unclaimed Property

ORS 98.308

Interested in learning more?

An archived webinar is available through the The Northwest Credit Union Association (NWCUA) until June 11 entitled, “Handling the Credit Union’s Right of Setoff,” an informative session designed for credit union personnel involved in the deposit, garnishment, or collection areas, such as deposit operations personnel, collectors, attorneys, compliance officers, member service representatives and managers.

A credit union has the right to setoff its member’s account if certain legal requirements are satisfied. This webinar will explain these requirements and will address the steps a credit union must take before exercising its right of setoff.

If a member defaults on a loan, when can the credit union apply money from the member’s checking account to pay the loan? Does the member have to be notified before the credit union exercises its right of setoff? What if the member’s checking account has more than one owner?  If the credit union receives a garnishment from another creditor, can the credit union setoff before honoring the garnishment? Learn the answers to these questions and more.

Registration and more information are available online or by contacting the NWCUA’s Education and Training Department at 800.995.9064 or training@nwcua.org.

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance.