Elder Abuse IRA Distribution
It breaks my heart to share this. Elder Law Attorneys contacted me to asking me to open an IRA account for their client who suffers from dementia. Her sons are the conservators of the IRA. The rush is because attorneys discovered a fraudulent IRA distribution of over $270,000 was taken almost 60 days ago and they are under the illusion that they will get the funds returned within 60 days.
We are at the 50th day and it’s looking bleak. The funds never landed in the IRA owner’s account and was sent to a “non profit”.
If there is no miracle , may these victims be able to roll back the funds under the IRS ” restorative payments” doctrine?
I read something about this in your September 2023 Issue on retirement scams.
P.S. Must they return the funds to the same IRA custodian or can it be sent to the IRA with a different custodian?
thank you
Permalink Submitted by Alan - IRA critic on Sat, 2025-06-21 10:24
This article addresses various issues:
Are you concerned about the 60 day deadline if the funds can be retrieved, or the restorative payment alternative if the funds are recovered through litigation.
RP 2020-46 does not include elder abuse as a reason, but perhaps because the IRA owner’s dementia triggered the requirement for an abused conservatorship, it might be possible to stretch the “serious illness” of the IRA owner to enable an IRA custodian (any custodian) to accept a self certification form and a delayed rollover, but it would be easier if the current custodian’s IRA account received the late rollover.