Traditional IRA - Losses

[ejb73]

I rolled over a 401k from a previous employer into an traditional IRA (non roth).  I bought some stocks and sold some stocks.  Overall I lost about $1,200.  Is there any way to realize those losses on my 2019 taxes.  I only had the one IRA (no others of any other kind) and I have liquidated it completely before the end of 2019.

[dmertz]

No, you cannot realize these losses.  These losses simply represent an amount on which you would have otherwise had to pay taxes had the losses not occurred.  (Actually, I guess in a sense that means that you are realizing the losses.  Simply report the distribution by entering the Form 1099-R and include in income what is left.)

[NCperson]

the money within the IRA is all pre-tax money - you have never paid taxes on it.  So the IRS is not going to let you take a loss on something that was never taxed in the first place. 

Let's say I put $10,000 in an IRA.  It's all pre-tax.  I invest it and lose it all.  Since i never paid tax on the $10,000, the IRS is not going to let me take a tax deduction on something I never paid tax on in the first place! 

[fanfare]

Your gains or losses in an IRA are not recognized. It's that simple.