What does it mean if an IRA has gone dormant and how do you get it re-instated to an active status?
"Dormancy" is generally associated with an account that has been inactive. That means there haven't been transactions or contact with the owner. This should mean that the bank doesn't know where the owner is, but that isn't always the case. Also, the laws pertaining to what is inactive or dormant can vary by state law.
First thing, call the bank and ask them "what does this notice mean"? That may be enough to move it back to an active status. It could mean they don't have a valid address for you, or just that the account has been inactive for some reason.
Dormancy/Inactivity is the first step in escheatment. Escheatment is a process where unclaimed assets are turned over to the state. You don't want to chase your money through state agencies. So the best thing is check what state the account may be in and to familiarize yourself with those laws, after you have first contacted the bank. One place to find links to all the states is through the National Association of Unclaimed Property Administrators. They have a website, http://www.unclaimed.org/ and you can easily navigate this site to see both what your state laws are, and if they have any funds under your name already.
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"Dormancy" is generally associated with an account that has been inactive. That means there haven't been transactions or contact with the owner. This should mean that the bank doesn't know where the owner is, but that isn't always the case. Also, the laws pertaining to what is inactive or dormant can vary by state law. 