Frequently Asked Question

April 11 2007 | Filed Under ยป ,

I have two Roth IRAs, one of which has a balance that is much less than the total contributions I have made to the account. Can I write off the losses for that account?

It depends. You are eligible to write off the losses only if the balance for both of your Roth IRAs (combined) is less than your aggregate contributions and conversions to both Roth IRAs, and you distribute the entire balance of both Roth IRAs.

The loss is claimed on your Form 1040 - Schedule A as an itemized deduction. However, it is subject to the 2% adjusted gross income limit that applies to certain miscellaneous itemized deductions.

See Deducting Losses On Your IRA Investments for more on this topic

Question answered by Denise Appleby, CISP, CRC, CRPS, CRSP, APA
by

Denise Appleby

Denise Appleby
Denise Appleby is founder and owner of Appleby Retirement Consulting,which provides technical consultation, content, coaching, writing, editing and training services on related topics.


With more than 14 years of experience in the IRA and defined-contribution plans fields, Appleby has held several senior retirement-plan related positions with Pershing LLC, which included vice president of plans products and services, retirement plans manager, trainer, training manager, compliance consultant, technical help desk manager and writer.
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