Prior to 2017, you could claim a loss on the liquidation of a Roth IRA. However, with the TCJA that is no longer the case.
For an inherited Roth IRA, If the original owner dies before the five-year period has elapsed, you can satisfy the holding period by rolling the account over into an inherited Roth IRA and waiting until the holding period has passed.
Click this link for more info on Inherited IRA's and Retirement Accounts.
Although Roth IRAs have no mandatory distribution requirements for the original owners, heirs must either withdraw all funds within five years of the original owner’s death or take annual minimum withdrawals over their lifetimes.
If you liquidate the account, there are no tax consequences since the amount will be less than the original contributions.
If you take partial distributions, the income will be taxable since the 5-year rule has not been met.
[Edited 12/30/2021 12:32 pm]
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