Tax treatment for class action settlement from stock in an IRA?

[Guest rkal66]

I owned PSI stock in my IRA. The company went bankrupt, a class action suit was filed, and I received a check for around $100 from the settlement. There is a 1099-DIV included that says it was a non-taxable distribution. However, since this amounts to a witdrawal from the IRA, should I report this as income on my tax return? Where does it get reported so that it does not confuse the IRS computers? Or is it non-taxable? I am over 59.5 so there is no penalty.

Dick

[JAMES PATRICK]

Redeposit it in your IRA and don't report on 1040 as it was listed as non-taxable.