Does anyone know if we can change the dormant account fee on an IRA Savings account?

Fee limitations are a State law issue.

You IRA disclosure and your financial projections should have noted the existence of any such fees.

As an aside, your bank got into the IRA business because they generated long term, low activity deposits. It knew good and well that there would be no activity for many years and that there would very limited activity when the participant reached mandatory distribution age.

I cannot think of any fee that would be more inappropriate.

That was my first thought upon reading the question yesterday. FWIW, I second your opinion.

Having said that...I have a problem with dormant account fees in general, so maybe I'm biased to begin with!

Me too. Dormancy fees were originally imposed because banks segregated dormant accounts and then imposed a significant level of oversight to prevent fraud. Very few institutions do that now and, since dormancy does not otherwise increase costs, I regard it as legalized pilferage; i.e. "You weren't looking, so we took your money."

What about costs of printing and mailing statements on these accounts ? and monitoring (by the internal auditor that an authorized is transacting when someone finally decides to re-activate the account in order to use it ?

"What about costs of printing and mailing statements on these accounts ?"

Whether there is a transaction or not, what is the additional cost there??? As far as the other argument, that's a one time occurrence. Weak arguments in my book.