Loss on IRA's

[Possi]

Is there ever a time when you can take a loss on closed IRA's?

My client's 44 yr old husband got cancer, then encephalitis and is now in a rehab center on a ventilator.

She had to sell his 2 cars and close the IRAs to pay the bills. The basis in the ROTHs far exceed the distributions, as the accounts have lost a lot of money over the many years they have contributed.

So, I was wondering if the basis disa-frikkin-pears or can a loss be realized?

[DaveO]

Once all IRA's are closed unrecovered basis is a Misc itemized deduction subject to 2%.

[Possi]

Oh Thanks!

Somewhere in my mind a flag was waving telling me to check it out, but I had no clue where to find it. EXCEPT HERE!
Thanks~~~ =)

[RitaB]

ROTH, yes

You can take the loss on a ROTH if you liquidate all holdings. Schedule A.

Not so with Traditional because taxes have not been paid on that money. Well, unless you have non-deductible contributions, but probably not likely.

Edit: Sorry, someone beat me to it.

[Possi]

thanks Rita

I appreciate the help, as always~

[Gene V]

Somewhere in my mind a flag was waving telling me to check it out, but I had no clue where to find it. EXCEPT HERE!
Thanks~~~ =)

Another place is Pub. 590 page 68 and page 45

Recognizing Losses on Investments

[Possi]

Gracias~

Another place is Pub. 590 page 68 and page 45

Recognizing Losses on Investments

Now I can assist the next one!