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tw20444
Level 1

I had a loss form my trad IRA that was funded with after tax contributions. It was converted to a Roth IRA. Is the loss deductible, and how do I enter the loss into TT?

 
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SamS1
Expert Alumni

I had a loss form my trad IRA that was funded with after tax contributions. It was converted to a Roth IRA. Is the loss deductible, and how do I enter the loss into TT?

It is not deductible for tax years after 2017.  Click here for more information You could deduct your traditional IRA losses for 2017 and earlier only if the total balance that you withdrew was less than the after-tax amounts (basis amounts) in your traditional IRAsThe losses were deductible as miscellaneous itemized deduction on your Sch A.   Example, you invest $10K in after tax contributions to traditional IRA.  You loss $3000 in investment losses.  You withdraw $8000 to fund Roth.  Your deductible loss would be $2000 ($10,000 basis less $8000 withdrawn).

 

The pandemic has affected your taxes in many ways. Including reporting in TurboTax the amount of stimulus money you received. Click Here for more information on how the Pandemic affected your 2020  taxes.

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SamS1
Expert Alumni

I had a loss form my trad IRA that was funded with after tax contributions. It was converted to a Roth IRA. Is the loss deductible, and how do I enter the loss into TT?

It is not deductible for tax years after 2017.  Click here for more information You could deduct your traditional IRA losses for 2017 and earlier only if the total balance that you withdrew was less than the after-tax amounts (basis amounts) in your traditional IRAsThe losses were deductible as miscellaneous itemized deduction on your Sch A.   Example, you invest $10K in after tax contributions to traditional IRA.  You loss $3000 in investment losses.  You withdraw $8000 to fund Roth.  Your deductible loss would be $2000 ($10,000 basis less $8000 withdrawn).

 

The pandemic has affected your taxes in many ways. Including reporting in TurboTax the amount of stimulus money you received. Click Here for more information on how the Pandemic affected your 2020  taxes.

View solution in original post

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