SusanY1
Expert Alumni

Retirement tax questions

Yes, the losses are still "behind the curtain" and unreportable.   If any amounts are recovered during bankruptcy, they should also be deposited into your IRA without any tax consequence.  While the tax deferral in IRAs is a nice feature and the one with which we're most familar, one drawback is that losses such as this are generally not deductible losses.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post