Rollover IRA Distribution
I was working with a currency trading company called Sushi Global and a manager named Ron Park. I was using them to make money on Gold exchange rates. The first trade was very successful. Then they said a big trade was coming up with a lot of customers participating and I should put in $500,000 which I did. Then they stopped talking to me. It was a scam. I found out after that there are other people who posting on the internet about this company scamming people. But because I took the money out of my Rollover IRA, now it counts as a distribution to the IRS and the taxes are very high because I can’t put the money back in within 60 days. I talked with the IRS they recommended reading the IRS Bulletin 2021-1. That is huge and not helpful.
My question is, since I can’t return the money into my Rollover IRA can I get some kind of tax relief from the IRS? Is there a form to fill out? Basically I would like the taxes to be much lower since I can’t return the funds since they were stolen.
I can put some of the money back in but not all of it. In order to pay the tax, I would have to withdraw funds from my Rollover IRA, then those funds would count as a distribution and I would have to pay tax on that amount in 2022, which I would have to pull from my Rollover IRA, and so on. It a circle.
Permalink Submitted by Alan - IRA critic on Thu, 2021-12-02 17:41
Was your 500k distribution intended to be rolled over to an IRA with the fraudulent firm, and the trade were to follow? A rule states that if you withdraw cash from your IRA, you must rollover cash. You could not have made a trade outside the IRA and then rolled back the purchased securities to your IRA even if this firm had been legit.And what was the date of your 500k IRA distribution?
Permalink Submitted by Patrick Clark on Thu, 2021-12-02 21:03
Date of distribution was November 2, 2021. I cashed out, then electronic transfer to fradulent firm. Now I am trying to put cash back into Rollover IRA but I don’t have all of it. Maybe 66% of it.Not intended to be rolled over to an IRA. Just cash.