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Grantor Letter from Trust for Bankruptcy of Investment inside an IRA portfolio
I have an IRA portfolio managed by Kingdom Trust. Within that portfolio were shares of GWG. GWG went bankrupt and assets were transferred to a court-ordered GWG Wind-Down Trust. The Wind-Down Trust notified me by a Grantor Letter (in lieu of a K-1) that I had reportable interest, expenses, and losses for 2024. Normally, I would ignore this because it is "behind the curtain" of the IRA, and like any other loss of value in an IRA is invisible until I withdraw the funds via 1099R at which time they become ordinary income and are reportable.
My confusion this year is that I have been taking my RMD from my Kingdom Trust portfolio. The losses for 2024 are roughly twice the RMD I took from Kingdom Trust for 2024 and roughly 25% of the total RMDs I took from all my investment portfolios in 2024. They are not insignificant.
SO, are the losses still "behind the curtain" and unreportable? Or, do I report them on this year's 1040 & Sched D? NOTE: If I need to report them, I believe I know how to enter them in Turbotax, so my question is not HOW TO report, but WHETHER I NEED TO or CAN?.