You're working, and you've got a family that depends on you - both now and down the road. Where do you invest your money? Do you borrow against the equity in your house? Through a preferred provider relationship with USAA, The American Legion can provide expert financial advice to just about any question.
These are both questions for your tax adviser, but we’ll give you some feedback. Generally, you can’t take a loss on investments within an IRA. In a situation where you have basis and liquidate all of your IRA (regardless of where they are held) investments, you may be able to take a loss. Check out IRS Publication 590 for all the details. Since the settlement is in effect restoring lost value to the IRA, you should be able to add it to your IRA as a rollover contribution. Ensure you keep a definitive paperwork trail and good luck!