'For Darling Ingredients employees, one of the most effective ways to strengthen retirement planning is to pause and verify before making any significant retirement account withdrawal, because understanding the potential financial consequences of fraud and seeking guidance when something seems unusual can make an important difference in protecting long-term retirement goals.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'For Darling Ingredients employees, staying informed about the warning signs of retirement account fraud and taking time to verify unexpected requests involving IRA withdrawals can help support more informed retirement decisions and reduce the risk of costly financial setbacks.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

1. How IRA fraud scams can lead to both the loss of retirement savings and unexpected tax consequences.

2. When the IRS may grant relief for taxpayers who miss the 60-day IRA rollover deadline because of fraud.

3. Practical steps Darling Ingredients employees can take to help reduce the risk of retirement account scams and strengthen their retirement planning.

A significant problem for IRA owners is highlighted by recent IRS guidance and private letter rulings: fraud victims who are convinced to withdraw money from their IRAs may face tax consequences in addition to losing their retirement savings. For Darling Ingredients employees who have spent years building retirement assets, understanding these risks is an important part of retirement planning.

A rollover can prevent an IRA distribution from being taxed immediately, but it does not eliminate future taxes. When the money is eventually withdrawn from the IRA, it is generally subject to income tax.

Widespread IRA Fraud Reports from the FBI

The FBI's Internet Crime Complaint Center (IC3) has warned that criminals use sophisticated scams while impersonating financial institutions, government agencies, technical support representatives, and sometimes investment professionals. These scams may persuade victims to withdraw substantial amounts from their IRAs and transfer the funds into accounts controlled by fraudsters.

For many Americans, retirement accounts represent a significant portion of their lifetime savings. For Darling Ingredients employees approaching retirement, losing those assets to fraud can have lasting financial consequences.

The Taxability of IRA Distributions

In general, money withdrawn from a traditional IRA is taxable unless an exception applies. One of those exceptions is a rollover. An IRA distribution is generally not taxable if it is rolled over within 60 days into another IRA or an eligible employer-sponsored retirement plan.

However, when fraud is involved, victims often fail to meet the 60-day deadline because they no longer have access to the money needed to complete the rollover or the scam is discovered after the deadline has passed. The result can be a double financial setback: losing retirement savings while also owing income tax on the distribution.

Fortunately, recent IRS guidance indicates that relief may be available in certain situations. Additional information is available in the IRS guidance regarding waivers of the 60-day IRA rollover deadline.

The Twofold Financial Damage

In January 2025, the IRS Office of Chief Counsel released guidance examining several common scam scenarios, including phishing scams, cryptocurrency investment scams, romance scams, compromised-account scams, and kidnapping scams. In many of these cases, taxpayers withdrew money from IRAs or other accounts and transferred it to accounts they mistakenly believed they controlled as part of the fraud.

Why the Tax Issue May Continue

Many fraud victims assume that if their IRA money was stolen, the distribution will automatically be disregarded for tax purposes. Unfortunately, that is not always true. When an IRA owner voluntarily withdraws funds—even if they were deceived into sending the money to a scammer—the distribution may still be taxable. As a result, victims can lose retirement savings and still owe income tax on the withdrawn amount.

IRS Provides Relief in Specific Situations

A taxpayer requested a waiver of the 60-day rollover deadline in Private Letter Ruling (PLR) 202623022, published on June 5, 2026, after falling victim to a sophisticated fraud scheme and missing the rollover deadline.

According to the ruling, someone posing as an employee of the taxpayer's financial institution claimed fraudulent loans had been opened in the taxpayer's name and that identity theft had occurred. After obtaining remote access to the taxpayer's computer, the scammer instructed the taxpayer to withdraw money from an IRA and transfer it into another account.

The taxpayer later received letters that appeared to come from government agencies investigating the identity theft, further reinforcing the deception. One letter identified a supposed case manager assigned to investigate the matter, while another claimed documents relating to the investigation had been received.

After realizing the fraud, the taxpayer reported the incident to the appropriate authorities and was unable to recover the funds from those responsible.

The taxpayer informed the IRS that the fraud caused the missed 60-day rollover deadline and requested a waiver so the rollover could still be completed.

Based on the facts presented, the IRS granted the waiver, provided the distribution otherwise qualified for rollover treatment.

Other IRS Decisions

The IRS has previously granted relief to fraud victims who missed the 60-day rollover deadline.

In PLR 202244029, a taxpayer was convinced by individuals posing as federal officials, computer support personnel, and bank fraud specialists that hackers had compromised her accounts. Following their instructions, she withdrew money from her IRA and other accounts to supposedly preserve the assets. By the time she discovered the scam, the rollover deadline had expired. The IRS waived the deadline and allowed additional time to complete the rollover.

In PLR 202535015, taxpayers were told that a virus had infected their financial accounts and were instructed to move their money to different accounts. IRA assets were transferred into cryptocurrency accounts controlled by fraudsters. After government agencies helped recover the funds, the IRS again waived the 60-day rollover deadline.

These private letter rulings demonstrate that the IRS has granted relief in multiple fraud cases when the applicable requirements were satisfied.

Important Considerations

In practice, rollover relief is often most helpful when the taxpayer has other available funds to complete the rollover or when the stolen money is recovered. Even if the IRS grants relief from the deadline, completing the rollover may not be possible if the stolen funds cannot be recovered or replaced.

The ruling in PLR 202623022 does not indicate whether the taxpayer recovered the stolen money. That detail is significant because many fraud victims may still owe income tax even if the retirement assets are never recovered.

In earlier rulings, taxpayers recovered transferred funds before requesting rollover relief. It remains unclear whether recovery occurred in every case. Even with an IRS waiver, taxpayers may still face taxation on the distribution if they do not have recovered funds or other available assets to complete the rollover.

How to Help Reduce the Risk to Your Retirement Savings

Many retirement account scams share similar warning signs, although no strategy can eliminate every risk. Consider these precautions:

• - Be cautious of urgent requests involving your retirement assets.

• - Verify callers using the contact information listed on your account statements or your financial institution's official website.

• - Be suspicious of instructions to transfer money into a holding account that is described as 'safe,' 'secure,' or 'protected.'

• - Treat requests to convert retirement savings into cryptocurrency with caution.

• - Never allow unknown individuals remote access to your computer or mobile device.

• - Before making a substantial IRA withdrawal, consult a trusted advisor, attorney, accountant, family member, or friend.

• - Contact your financial institution immediately if you suspect fraud and report the incident to the FBI's Internet Crime Complaint Center and local law enforcement.

For Darling Ingredients employees, taking a few extra minutes to discuss a major retirement withdrawal with someone you trust may help identify warning signs that are difficult to recognize under pressure.

If You Think You Have Been Scammed

If you believe you have been the victim of fraud, consider taking these steps immediately:

• - Contact your financial institution.

• - Report the fraud to law enforcement.

• - File a complaint with the FBI's Internet Crime Complaint Center.

• - Preserve emails, text messages, account records, and other supporting evidence.

Acting quickly may improve the chances of recovering lost assets.

Retirement Planning Considerations

Fraud can have lasting effects on retirement resources, making thoughtful planning even more important. The Retirement Group can help answer questions about IRA rollovers, distributions, and other retirement planning topics that may affect your overall financial strategy. Call  (800) 900-5867  to discuss your retirement planning needs.

What Fraud Victims Should Know

Retirement account fraud can result in more than the loss of savings. Depending on the circumstances, victims may also owe income tax on IRA distributions used in the scam. The IRS has shown a willingness to grant relief when fraud causes taxpayers to miss the 60-day rollover deadline, although that relief is often most beneficial when the funds can be recovered. For Darling Ingredients employees preparing for retirement, staying informed about these rules may help reduce the likelihood of additional financial setbacks.

Sources:

1. Internal Revenue Service.  'Rollovers of Retirement Plan and IRA Distributions.'  Internal Revenue Service, U.S. Department of the Treasury, updated June 2026,  https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions.

2. Internal Revenue Service. **Publication 590-A: Contributions to Individual Retirement Arrangements (IRAs). ** U.S. Department of the Treasury, 2025,  https://www.irs.gov/publications/p590a.

3. Federal Bureau of Investigation.  'Elder Fraud.'  Internet Crime Complaint Center (IC3), Federal Bureau of Investigation,  https://www.ic3.gov/CrimeInfo/ElderFraud.

4. Internal Revenue Service, Office of Chief Counsel.  Chief Counsel Advice Memorandum 202511015.  U.S. Department of the Treasury, 14 Mar. 2025,  https://www.irs.gov/pub/irs-wd/202511015.pdf.

5. Bloomberg Tax Automation Staff.  'IRS Issues PLR Waiving IRA Rollover Requirement with 60-Day Completion Window.'  Bloomberg Law, 8 June 2026,  https://news.bloomberglaw.com/federal-tax-developments/irs-issues-plr-waiving-ira-rollover-requirement-with-60-day-completion-window.