jblarson2002
Feb 17 2004, 07:59 PM
Can I write off the amount of the money lost in an illegal investment fund closed down by the SEC in 2003 against funds withdrawn in 2003?
mbozek
Feb 18 2004, 01:25 PM
If the funds were held in a pre tax account the answer is no, because you will not be taxed on the funds which will never be distributed to you. See IRS Pub. 590, P 38. You can recognize a loss in Roth IRA if the total distributions from all your Roth accounts are less than the amounts contributed to the Roth. See IRS pub 590, P. 62.