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Financial Planning / Tax Strategies


Subject:  Re: ROTH & TAX WRITEOFF Date:  1/29/2001  3:02 PM
Author:  TMFExRO Number:  45068 of 127747

Purchased stock with part of my Roth IRA account. The stock i purchased has went bankrupt. Is there any way to take a tax write off for this loss. One suggestion i was given by an invidual was to move stock to regular account and sell.

That wouldn't work. When stock is distributed from an IRA, it carries a basis of its value at the time of distribution, in your case not much.

The only way to get a tax benefit from a loss in a Roth IRA is to totally liquidate the IRA for less than the total of your contributions. The difference would be a miscellaneous itemized deduction, and you cannot replace the money.

Phil Marti
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