We investigated the magnetic correlations in the Fe spin ladder system Na2Fe2(C2O4)3(H2O)2 by magnetic susceptibility and 57Fe Mössbauer spectroscopy between 2 and 310K. The susceptibility exhibits a broad maximum at about 20K indicating antiferromagnetic coupling and a S=0 dimer formation. The Mössbauer measurements reveal a temperature dependent quadrupole splitting and a non-magnetic ground state. The orbital ground state is identified as a singlet with an excited doublet at 383K in the T2g manifold.