When I rolled over my former employer Roth to my personal Roth IRA, the total distribution was worth less than what I had contributed. Can I take a deduction for that?

Fidelity is characterizing this as "Unrecovered Roth Contribution Basis". I know we can't deduct year to year losses, but what about when you rollover/close that account?

247

Expert Alumni

Feb 27, 2023 3:07:54 PM

No. You cannot deduct the loss on your Roth account.

Prior to 2018, the loss on your Roth account was deductible if and when you closed all your Roth accounts. It is a miscellaneous deduction subject to the threshold of 2% of your AGI. From 2018 on, that deduction is no longer available.

Please read this TurboTax article for more information.

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When I rolled over my former employer Roth to my personal Roth IRA, the total distribution was worth less than what I had contributed. Can I take a deduction for that?