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Originally Posted by icewing726 First time poster, hope I chose the right category. Anyway I tried to play the markets, invested in a company, they lied about stuff, lost a bunch of cash, class action started, and I just got paid. From the letter it says its a "qualified settlement fund" being issued for the defendant violating Federal Securities Law.
Thats the background. I purchased stock in my Roth IRA and my personal account. I claimed the losses posted to my personal account 2 years ago but couldn't claim my Roth losses (at least I don't think I could). The settlement came in two checks to me, one for personal losses one for Roth. I'm pretty sure I have to pay 15% for the personal portion, but do I have to pay any tax on the Roth portion since I never claimed losses on it? Any information would be appreciated. Thanks in advance. |
yes unless you close the ira account, even if you did not claim the loses on your return, you do need to report it on your return as taxable income;say, the value of your investments in a R-IRA decreases, you might wonder if there is a way to write off those losses on your federal income tax return. Having made it a point to carefully grow your retirement fund, when the value of your investments in a R-IRA decreases, you might wonder if there?s a way to write off those losses on your federal income tax return. The irs does not permit you to deduct losses from your R-IRA on a year-to-year basis, so the only way to deduct your losses is to close your R-IRA accounts;so . To qualify for the deduction, you must close all of your R-IRA accounts, including R-IRA accounts that have profits. You claim the loss as a miscellaneous itemized deduction, subject to the 2%-of AGI limit that
applies to certain miscellaneous itemized deductions on Sch Aof Form 1040.