If there is a better group to post this question, please let me know.
I'm over 59 1/2. 6 years ago I coverted some of a traditional IRA ( say, $8,000) into a Roth IRA and paid the necessary taxes to do so. Then the market tanked. My Roth IRA is now worth $4000.
Suppose I now convert from my traditional IRA another $9000 into the same Roth, paying the conversion tax, of course. My Roth now has $13,000, $4000 from the original and $9000 that I just did.
Can I draw out $8000 without paying a penalty for early withdrawal? Because of the loss in the original conversion $4000 would have to come from the conversion ($9000) I just did and yet I originally, over 5 years ago, converted $8000. I hope the source of my confusion is clear.
Most of the tutorials I find always assume that you have a profit. Oh, if life were always so kind.