Discussion:Question about IRAs and Ponzi
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Discussion Forum Index --> Advanced Tax Questions --> Question about IRAs and Ponzi
Discussion Forum Index --> Tax Questions --> Question about IRAs and Ponzi
| 30 March 2009 | |
| Person A has a nice IRA and is a retiree. A is approached by Person P, a Ponzi scammer. P tells A that she can rollover her IRA with P's trust company, and good things will happen. No indication as to what this constitutes. A then rolls over her entire IRA into P's trust company. The scheme runs out of steam and things fall apart. G men put P in jail. G men also come after the A's of the world claiming the rollover...wasn't. It's includible in income for the year it was rolled over. Doesn't matter if there's a theft loss involved because they're low income retirees. Do they have a lifeline? | |
Mtmckeecpa (talk|edits) said: | 30 March 2009 |
| IRS4,
You don't say why the rollover was not valid? But if not valid rollover for whatever reason...then A should have a theft loss under IRC 165? Perhaps you can carry the loss back....good luck. | |
| March 30, 2009 | |
| "You don't say why the rollover was not valid?"
I'll take a guess -- Because the IRA was rolled over into P's pockets and not into a legitimate IRA Rollover account? I agree, though. If they have to claim the "IRA rollover" as an IRA distribution, there might be a theft loss they could claim to offset the income. | |
| 31 March 2009 | |
| Bingo, Deback. Is there any way to offset or avoid the taxation of the distribution? There is almost no income to offset with the loss. | |
Death&Taxes (talk|edits) said: | 2 April 2009 |
| Your problem is probably that events happened in different years? | |
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