my Roth is worth less than what I put in. So, if I ever need this money and want to withdraw, do I get penalized?

No, you won't be penalized because you may take your annual Roth IRA contributions at any time for any purpose free of taxes and penalty. Your Roth IRA is now worth less than the amount you contributed, so if you close it AND if it's the only Roth IRA you have, then you may even be eligible to deduct part of the loss of that contribution. To do so, you must list the loss in the Miscellaneous section of Schedule A where you itemize deductions on your tax return. To the extent you have a loss on your basis that exceeds 2% of your Adjusted Gross Income, then you might save a little on your income tax bill.

For details on claiming a loss, see page 62 of IRS Publication 590 (Individual Retirement Arrangements) available for download at http://www.irs.ustreas.gov/forms_pubs/pubs.html.

Regards...Pixy