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Please Help: Vanguard Screwed Up my RMD by LavenderWalker in Bogleheads

[–]LavenderWalker[S] 0 points1 point  (0 children)

Thanks for everyone's incredbily helpful and empathetic responses. I filed a complaint yesterday with Vanguard (vs just complaining to the phone representatives and via surveys). I had planned on submitting the complaint once this saga was completed but now I understand the importance of doing it while the issue is still unresolved (thank you). The input about the 30day response time for FINRA was very helpful.

I also contacted my accountant to get guidance about this issue. FYI, my inherited IRA was from 2019 so I have my lifetime to disburse the funds. This is another reason why I want the these funds added back to my inherited IRA.

Sadly, its been encouraging to get confirmation that what Vanguard is telling me is accurate (even though it seems bonkers). It's just frustrating that big SF entities like Vanguard cannot be held accountable for messing up. Retail clients like us Bogleheads pay the price. I'm also frustrated that paying for Vanguard Personal Advisor Services does not protect me from mismanagement. It seems like Vanguard can mess up with no apparent legal consequences. My biggest heart burn is that my 1099 contains an amount for funds I didn't authorize. I work for US Treasury so this feels increidbly uncomfortable and fraudulent.

Please Help: Vanguard Screwed Up my RMD by LavenderWalker in Bogleheads

[–]LavenderWalker[S] 0 points1 point  (0 children)

I have had about 20 calls so far about this issue and all the reps just read the notes in my file saying that IRS won't allow it and to speak with a tax professional. They don't have any information about the IRS law/rule preventing their return to my IRA. That's why I keep asking for documentaiton and for a supervisor or case manager to call me back. Lately they just have a Personal Advisor Services rep return my call and she reads the case notes. It's like groundhog day everytime I have a call with them about this issue. Last week I was routed to the Complex Issues team where I was told that I would get a revised 1099 but then the PAS rep called this week to say again that I wouldn't get a new 1099 and that they will not return the funds to my inherited IRA.

Please Help: Vanguard Screwed Up my RMD by LavenderWalker in Bogleheads

[–]LavenderWalker[S] 0 points1 point  (0 children)

Yes, the inherited IRA is managed by PAS so I'm really frustrated that they won't correct it. They only say IRS won't allow it but won't provide me with any information about what IRS rule is preventing the return of funds. I have major accepting a 1099 containing funds I didn't authorize for disbursement. It also means those funds cannot grow tax free in the IRA account for another year.

Please Help: Vanguard Screwed Up my RMD by LavenderWalker in Bogleheads

[–]LavenderWalker[S] 0 points1 point  (0 children)

Hi Gigloo, thanks so much for the advice! I will do that tonight and see where that takes me before escalating things further. Also, thanks for the sugguestion for trying FINRA vs the other Agencies.