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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Six years ago I moved my retirement funds from my Sep-Ira into

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Six years ago I moved my retirement funds from my Sep-Ira into a qualified Pension Transfer Trust Plan. I then invested the money into a real estate development project that was sold but I did not receive any of my money back. Instead, I had to sue the new buyers of the real estate project. We have reached an agreement to repay me 75% of my money when they re-sell the property.
When I get some of my money back, do I have to put that back through the Pension Transfer Trust Plan or is it settlement money from the lawsuit and the Sep-Ira funds are a loss?
Thank you

MyVirtualCPA : Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
MyVirtualCPA : You invested in the real estate development with your pension funds, correct?
MyVirtualCPA : If so, it is the pension who will receive the money back
MyVirtualCPA : The pension incurred the loss, you did not personally. Therefore you will place the funds back into an account
MyVirtualCPA : back into the pension account
MyVirtualCPA : So, the settlement funds are for your pension.
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