Roth IRA capital loss

[pbmunkey]

I opened my Roth IRA and contributed $12,000 in March 2020 because I didn't contribute to it in 2019. I further contributed $6,000 in Jan 2021. Total contributions was $18,000. After some losses, I decided to close the account and cut my losses. I ended up emptying the account and withdrawing $6,900 which is what's left of the $18,000 I had contributed. Is the $11,100 considered a loss that I can carry and deduct $3,000 a year from?

[ThomasM125 · Accepted solution]

No, the loss would not be allowed as a capital loss. It was once allowable as a miscellaneous itemized deduction if you withdrew all funds from IRA's, but that is not allowed in 2022 because of the restrictions on deducting miscellaneous itemized deductions.