Unclaimed property assets turned over to the state are held for their rightful owner to claim. Each state holds and uses the assets in accordance with their individual state statutes.
Please note that states require fund companies, including Columbia Threadneedle Investments, to redeem abandoned fund shares and turn over the redemption proceeds in cash. Shareholders who reclaim their assets from a state will receive the dollar amount of the redemption but will not receive any dividends, interest or market appreciation that may otherwise have been earned on their investment if the shares had not been redeemed. It is therefore very important that you or your client maintain contact with Columbia Threadneedle as described above.
Additionally, please note that under IRS rules, the escheatment of traditional IRA accounts are subject to federal and state tax withholding rules for IRAs.
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