Client award
I was talking to an accountant/lawyer I do business with and he had the following situation. A client received an award from his broker and B/D regarding losses in his IRA account. The payment was not made to his IRA account and was taxable, and had to be deposited into a non-IRA account. Can the award be deposited into his IRA?
Permalink Submitted by Alan - IRA critic on Thu, 2022-05-12 19:32
Apparently this was not a restorative payment, typically resulting from class action litigation. Those checks can be deposited back into the IRA per an IRS PLR. More info is needed here regarding this particular payment, but the issuer of the payment should know whether it is eligible to be rolled over or not and should have disclosed this info.