The daughter convinced her parents that she needed funds for a fictitious legal battle.
Being “good parents” and wanting to help her out, the couple withdrew $1.1 million in IRA and pension funds in 2017 and turned the money over to the evil daughter. They were taxed on the IRS and pension distributions, given to the daughter.
They later found out about the scam, in 2019.
The couple then argued that they shouldn’t be taxed on their retirement distributions because they didn’t enjoy the benefit of those funds.
A district court said it was unjust for the couple to owe taxes on funds stolen from them.
At the end of the day, there was nothing the court could do for the couple. They received the payouts from the retirement accounts, and they’re taxed on them.
Gomas, D.C., Fla.