Proceeds From a Class Action First time poster, hope I chose the right category. Anyway I tried to play the markets, invested in a company, they lied about stuff, lost a bunch of cash, class action started, and I just got paid. From the letter it says its a "qualified settlement fund" being issued for the defendant violating Federal Securities Law.
Thats the background. I purchased stock in my Roth IRA and my personal account. I claimed the losses posted to my personal account 2 years ago but couldn't claim my Roth losses (at least I don't think I could). The settlement came in two checks to me, one for personal losses one for Roth. I'm pretty sure I have to pay 15% for the personal portion, but do I have to pay any tax on the Roth portion since I never claimed losses on it? Any information would be appreciated. Thanks in advance. |