CAN A SETTLEMENT THAT ORIGINATED FROM AN IRA BE ROLLED INTO AN IRA?
Hello,
A prospect has this situation. She had an IRA with a brokerage firm. This client was part
of a group law suit. They won the the law suit and she received 80% of her 100k, less the
35% attorney fee.
Since the funds at issue were IRA funds, can she roll this money into an IRA to avoid
taxation?
Any help greatly appreciated, she’s getting conflicting answers.
Brady
Permalink Submitted by BRADY SCHMIDT on Fri, 2024-12-20 17:20
Hello,
My prospect has this situation. She had an IRA with a brokerage firm. This client was part of a group law suit that held the BD liability for losses from options trading and lack of oversight. The Investors won the the law suit and she received 80% of her 100k, less the 35% attorney fee.
The attorney handling the lawsuit told her she was getting a “settlement” not IRA funds & that her money can’t go into an IRA. A CPA locally said she can put it in an IRA within 60 days of getting the check.
Since the funds at issue were IRA funds, can she roll this money into an IRA to avoid taxation?
Any help greatly appreciated, she’s getting conflicting answers.
Brady