Cleaning Up the Mess Madoff Made of IRAs

There are some measures taxpayers can take to soften the toll frauds have taken on their retirement plans

Many taxpayers have incurred huge losses in their IRAs because of the alleged or admitted fraud of Bernard L. Madoff, the Stanford Financial Group and the like.1

Taxpayers can mitigate this kind of damage — to some extent — by claiming deductions for IRA losses, reversing wasted tax payments on Roth conversions, avoiding tax on amounts recovered from the Securities Investor Protection Corporation (SIPC) or the bankruptcy estate, eliminating current tax on excess distributio

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