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Security Litigation Settlement Proceeds Deposited Into IRA Account

emhamiltn Member ✭✭
edited August 2019 in Investing (Windows)
I receieved a litigation settlement check related to the New York State Teachers’ Retirement System v. General Motors Company class action litigation settlement.

- The shares were owned inside my Traditional IRA.
- I no longer own the GM shares, as they were sold back in 2014.
- The settlement check was made out to the custodian (Fidelity for my benefit) and forwarded to Fidelity for deposit into my IRA as a "restorative payment".

How should the deposit be treated in Quicken ???

(I temporarily recorded it as per the attached image)

Best Answer


  • emhamiltn
    emhamiltn Member ✭✭
    Thx q_lurker, I was hoping you'd chime in on this :) I agree regarding the categorization being a personal choice. I elected to treat it in this manner because it truly isn't an income item (the cost basis of the disposed shares would have been less) and certainly not a tax reportable item as it simply made me whole (restorative payment) and occurred in a traditional IRA (where cost basis is generally ignored for tax purposes)
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