close out roth account

Forum|Forum|4 years ago
April 3, 2022
1 reply
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I CLOSED OUT MY ROTH ACCOUNT OCT 2022 AFTER LARGE LOSS. MY ORIGINAL INVESTMENT WAS AROUND $35,000 BEGINNING JAN 2021 IS WAS $3344.00 CLOSED OUT $5503.00 IT APPEARS IRS IS CHARGING MY AS A GAIN ANT TAXING ME. IS THER SOMETHING WRONG???

Best answer by skylab 1

MY QUESTION. IT IS A ROTH ,COMPLETE CLOSE OUT ,CAN YOU TAKE A TAX LOSS???? And ON WHICH FED TAX FORM/

PLEASE ANSWER

JohnB5677

Level 15

That does not sound correct. Please clarify the question.

Was it a total distribution?

What is the code in box 7?

Is this an IRA?

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skylab 1AuthorAnswer

Level 2

MY QUESTION. IT IS A ROTH ,COMPLETE CLOSE OUT ,CAN YOU TAKE A TAX LOSS???? And ON WHICH FED TAX FORM/

PLEASE ANSWER

JulieS

Level 15

No, that deduction is no longer available. The Tax Cut and Jobs Act of 2017 eliminated the deduction for a fully distributed Roth account.

The one thing you can do to minimize your tax is to enter your Roth basis in TurboTax. This is how to do that:

Select Federal from the left side menu.
Select Deductions and Credits toward the upper left.
Expand the list and scroll down to Retirement and Investments.
Expand the section and click Start to the right of Traditional and Roth IRA Contributions.
Check the type of IRA accounts you have and then answer the questions about contributions.
When you get to Let Us Track Your Roth IRA Basis, answer Yes.
Answer the remaining questions in this section to report your IRA basis.