Ask AARP Tax-Aide: Can I Take a Tax Loss on a Roth IRA

Can I Take a Tax Loss on a Roth IRA

Q: My Roth IRA, on which taxes were already paid, has lost a lot of money. Can I take a tax loss on this? A: Not while you still have ANY Roth IRA accounts.

When you liquidate the last of your Roth IRA accounts, if you get back less than the amount you converted and/or contributed, there is the potential to take a loss, which is counted as a miscellaneous deduction on line 22 of Schedule A. These questions are actual inquiries submitted by taxpayers to our AARP Tax-Aide Program. The AARP Tax-Aide Program is a volunteer-run, free tax-preparation and assistance program offered to low- and middle-income taxpayers with special attention to those age 60 and older. Our volunteers are trained and IRS-certified to understand individual federal-tax issues. Our volunteers provide tax assistance as a public service and cannot guarantee the accuracy of the information provided. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures

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