I'm sorry I was incomplete. My client had a stock broker who setup her traditional IRA which had no basis. He called her to tell her he was retiring and had sold his business to a broker who she should trust. Within days the new broker called her to solicit her to roll her IRA into a better investment. The referring broker has since been barred from the securities industry for his illegal activity with this Ponzi scheme. My client met with the new broker who had a withdrawal form filled out for her to sign. He told her to call him when the check arrived. He came to her house and had her endorse the check over to "Quest IRA" FBO her name. The check cleared her account. The broker later had her sign a phony IRA application and a subscription to a phony promissory note issued by First Nationle Solution. When I met her in March as usual to do her 2017 taxes, I saw the 1099 for the $130,000 withdrawal with the taxable amount shown as not determined. She had brought the other documents she had been mailed. Five minutes of Googling confirmed what I suspected and I told her she had been defrauded and was a victim of a Ponzi scheme. I referred her to attorney who has represent a number of the victim in this $103,000,00 scheme that SEC shut down in June of 2018. The FBI indictments are pending on these men who defrauded over 600 investors. The attorney filed a complaint against the Broker/Dealer who employed her retiring broker. After months they settled for $65,000 in mediation for half her loss. The attorney took his contingency fees and she received $37,000. I worked with her and her IRA custodian and she was able to deposit a "restorative payment" of the $37,000 in to her existing legitimate IRA.  So to answer your question no she did not roll it because the company she thought would receive the money as custodian never got the money. It was diverted to the crooked broker.  The check was deposited in an account held by a phony company, First Nationle Solution and controlled by the broker. I have the copy of the endorsed check.  IRS allows Restorative Payments for taxpayers who are victims of this kind of fraud. So it will be easy for me to protect the $37,000 from tax as it is back in the IRA. But what about the rest? Can she use other funds to restore the $28,000 she was awarded in mediation but was paid over to the law firm before she received her $37,000? And what about the $65,000 lost to the fraud? The SEC investigation states the money taken was spent on lavish living and little to no assets exist with which to restore victims. I can seek a Private Letter Ruling, but there should be an easier way to help this 75 year old woman. Any ideas?