Your investment account should come with a TPA: third party administrator services. The TPA can help you walk through the steps and paperwork needed to shut down your account. Your nephew's company may need to send a letter on company letter head that the business is no longer a going concern and that the final tax return has been filed. It would be great if he dissolved the company but dissolution documents should not be required for your situation. If your SDI group does not put you in contact with a helpful TPA, then ask for the legal department. You will need to be persistent to get this resolved. Make it a weekly or daily to do item, as your fees will continue to run monthly invoices.
I wish your investment had paid off for you and hope you find a way to put your retirement money to work for you in the future. SDI programs are great opportunities when they can work to your benefit.
All the best- B
This information is general and will change according to your facts. While this information may apply to your situation, without more facts I can not encourage you to rely on this information. I am not your attorney. No attorney client relationship exists. You should hire an attorney for your specific business matters.
None of what you say makes much sense. I don't understand how you could have opened a SDI to invest money in your nephew's business. What type of business was it? Was it a publicly traded stock?
I also don't understand how the investment company is charging 10%. The fee is astronomical in comparison to the average industry charges.
Last, you may close an IRA anytime you want. You may have to pay taxes and penalties if you are under 59 1/2, but you can close it.
This answer does not, nor is it intended to, create an attorney-client relationship or constitute attorney advertising. Rather, it is offered solely for information purposes. Since the facts of each case are different, it is critical to consult with qualified counsel with whom information can be shared and assessed under an attorney-client privilege, so that competent advice can be obtained on which you can make informed decisions.
The fee is charged not on the amt of cash in the account, but based on the value of the investments in the account,, Normally with a SDI, you are responsible for reporting to the custodian the value of the investment. each year. If the business went belly up and the loan is not getting paid back, then the value is zero. You need to update this with your custodian, although they may charge you a minimum fee to keep the account active. Talk with your custodian and your CPA.