Self-directed IRA tax question

[Anja Brey]

Hi,

I recently dissolved a note in my self-directed IRA that was in default and took a significant loss.

The amount I received is not really enough to get another note or do anything with it in the self-directed IRA. Due to the quarterly fees on the self-directed IRA, I would like to close the account.

A law suit was initiated regarding the defaulting note (and other notes that were in the same situation) and further down the road, there might be some money coming my way from that.

My question is:

Does the money from the law suit need to go into the current self-directed IRA where the note was - I therefore can't close the account until the law suit is settled - or could I ask for any law suit funds to go into for example a Vanguard IRA in my name?

Any other alternatives?

Thank you for any guidance.

Anja