I lost money in a traditional IRA due to fraud, a Ponzie Scheme, how do I handle that on my taxes, supposed to take a distribution as 70 1/2 but money lost.

[bill.moran]

It was a traditional IRA... How do I file the loss?  Can I do it thru Turbotax?

[macuser_22]

Gains or losses in an IRA are not reported anywhere.    Prior to 2018 if you lost your "basis" (unrecoverable non-deductible contributions, if any) and closed your IRA, it could be claimed as an itemized deduction reduced by 2% of AGI - that was eliminated in 2018.

When you withdraw from a Traditional IRA, unless you have non-deductible basis", it is taxed as ordinary income.   A loss within the IRA only means that there is less money to be taxed on when withdrawn.

Your 2019 RMD amount is based on the December 31, 2018 total value of your IRA (which is the aggregate total of all existing Traditional, SEP and SIMPLE IRA accounts that exist.)

[macuser_22]

As an aside - I am curious how  a financial institution, could even allow such an investment into an illegal ponzi scheme in a Traditional IRA.   You might have some recourse against the financial institution that allowed such a inappropriate investment in an IRA for a person  your age.