I know, if a retirement plan reduces Income, that the losses are not deductible.
What are the rules for a Roth plan that Taxpayer held for 4 years and cashed out? (Cashed out before the losses consumed it all)
TP invested 7400 in the plan cashed out for 6500, received 1099R for 6500.
If you close out all of your Roth IRA's, you can take a loss on Schedule A subject to the 2% of AGI rule and AMT. Thus, the loss might be worthless if your AGI is high. But be sure to combine all your misc deductions together (tax prep fees, fees you pay people to manage your money, etc).
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