Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I am going to very shortly receive some compensation as the result of a class action lawsuit against a company in which I invested as a part of my IRA account a few years back. The compensation will be a certain dollar amount per share for the number of shares that I held during a certain timeframe. My question is "Am I required to deposit this money back into the IRA
account?" If I do not deposit it back into the IRA account do I own tax on it.

You will owe both federal and state income tax and an early withdrawal penalty if you do not deposit it back into your IRA.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.