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    #1

    Loss on Roth IRA

    Client put money in a Roth IRA in a mutual fund. He made contributions of 4500 but when he drew it out he only got $3000 and left a few dollars still in the account.

    Can you take a loss on something like this?

    Linda, EA
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    #2
    I believe you can, but don't you have to cash in all IRA accounts with basis to do that? Can't "leave a little in the account." Or have others still in effect.

    Comment

      #3
      Correct

      Burke is correct, you have to withdraw the account balances in all ROTH IRA's. I THINK you take the loss on Sch A, line 21. See TTB 4-26.
      If you loan someone $20 and never see them again, it was probably worth it.

      Comment

        #4
        So if they don't itemize they can't take the loss. The total loss was around $1500. If it had been larger it might have helped.

        In 2008 they itemized by they had a huge amount of medical bills.....now not so much.

        Thanks for the help.

        Linda, EA

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