THE MONEY YOU PUT INTO A ROTH IRA CAN ALWAYS BE WITHDRAWN, TAX AND
PENALTY FREE, ANY TIME YOU WISH. TAXATION AND PENALTIES APPLY ONLY TO
EARNINGS WHICH, APPARENTLY, YOU DON'T HAVE. TAKING OUT LESS THAN YOU
PUT IN ALSO MEANS YOU MAY HAVE A CAPITAL LOSS YOU CAN APPLY AGAINST ANY
CAPITAL GAIN YOU MIGHT HAVE FROM OTHER NON-SHELTERED INVESTMENTS. TAKE
YOUR MONEY AND RUN.

L Hao wrote:
- quote -

In article <T_lWb.3993$jk2.14906[at]attbi_s53> , "L Hao" <lhaoNOSPAM[at]comcast.netwrites:

- quote -

You can remove _regular_contributions_ at any time, any purpose, without tax or
penalty. You might have to fill out Form 8606.

Furthermore, if you withdraw funds from _all_ your Roth IRA accounts and close
them, and the total amount withdrawn (including past withdrawals, if any) is
less than all the regular contributions you had made, the net loss can be
claimed as a miscelaneous investment expense on Schedule A (Itemized
Deductions) in the section subject to 2% AGI exclusion (same section used for
investment expenses, safe deposit box, tax filing epenses, and unreimbursed
employee expenses), that is, one would have to itemize and then only the
portion of this section of Schedule A would benefit you only for the part of
the total that exceeds 2% of your AGI. For most people, that 2% AGI is a
hurdle.

I don't know how the above gets complicated if any of the Roth IRAs contain
conversions--you may need to consult a tax professional if there are
conversions and you plan to close all your Roth IRA accounts.

Another option would be to transfer your Roth IRA to a different custodian that
doesn't charge such fees. You might see if you have a high enough balance for a
mutual fund, e.g., if you have over $1,000 left in the Roth IRA you could
transfer it to Vanguard and use one of the funds that requires a minimum
investment amount in a retirement account of $1,000, or you might check out one
of TIAA-CREF's funds (e.g., Equity Index). If you are going to do this, make
sure that you would have enough after the current Roth IRA custodian collects
commissions on selling your investments and charging you an account closing
fee.

In article <T_lWb.3993$jk2.14906[at]attbi_s53> , "L Hao" <lhaoNOSPAM[at]comcast.netwrites:

- quote -

You can remove _regular_contributions_ at any time, any purpose, without tax or
penalty. You might have to fill out Form 8606.

Furthermore, if you withdraw funds from _all_ your Roth IRA accounts and close
them, and the total amount withdrawn (including past withdrawals, if any) is
less than all the regular contributions you had made, the net loss can be
claimed as a miscelaneous investment expense on Schedule A (Itemized
Deductions) in the section subject to 2% AGI exclusion (same section used for
investment expenses, safe deposit box, tax filing epenses, and unreimbursed
employee expenses), that is, one would have to itemize and then only the
portion of this section of Schedule A would benefit you only for the part of
the total that exceeds 2% of your AGI. For most people, that 2% AGI is a
hurdle.

I don't know how the above gets complicated if any of the Roth IRAs contain
conversions--you may need to consult a tax professional if there are
conversions and you plan to close all your Roth IRA accounts.

Another option would be to transfer your Roth IRA to a different custodian that
doesn't charge such fees. You might see if you have a high enough balance for a
mutual fund, e.g., if you have over $1,000 left in the Roth IRA you could
transfer it to Vanguard and use one of the funds that requires a minimum
investment amount in a retirement account of $1,000, or you might check out one
of TIAA-CREF's funds (e.g., Equity Index). If you are going to do this, make
sure that you would have enough after the current Roth IRA custodian collects
commissions on selling your investments and charging you an account closing
fee.

In article <T_lWb.3993$jk2.14906[at]attbi_s53> , "L Hao" <lhaoNOSPAM[at]comcast.netwrites:

- quote -

You can remove _regular_contributions_ at any time, any purpose, without tax or
penalty. You might have to fill out Form 8606.

Furthermore, if you withdraw funds from _all_ your Roth IRA accounts and close
them, and the total amount withdrawn (including past withdrawals, if any) is
less than all the regular contributions you had made, the net loss can be
claimed as a miscelaneous investment expense on Schedule A (Itemized
Deductions) in the section subject to 2% AGI exclusion (same section used for
investment expenses, safe deposit box, tax filing epenses, and unreimbursed
employee expenses), that is, one would have to itemize and then only the
portion of this section of Schedule A would benefit you only for the part of
the total that exceeds 2% of your AGI. For most people, that 2% AGI is a
hurdle.

I don't know how the above gets complicated if any of the Roth IRAs contain
conversions--you may need to consult a tax professional if there are
conversions and you plan to close all your Roth IRA accounts.

Another option would be to transfer your Roth IRA to a different custodian that
doesn't charge such fees. You might see if you have a high enough balance for a
mutual fund, e.g., if you have over $1,000 left in the Roth IRA you could
transfer it to Vanguard and use one of the funds that requires a minimum
investment amount in a retirement account of $1,000, or you might check out one
of TIAA-CREF's funds (e.g., Equity Index). If you are going to do this, make
sure that you would have enough after the current Roth IRA custodian collects
commissions on selling your investments and charging you an account closing
fee.

Mark A. Young

In article <T_lWb.3993$jk2.14906[at]attbi_s53> , "L Hao" <lhaoNOSPAM[at]comcast.netwrites:

- quote -

You can remove _regular_contributions_ at any time, any purpose, without tax or
penalty. You might have to fill out Form 8606.

Furthermore, if you withdraw funds from _all_ your Roth IRA accounts and close
them, and the total amount withdrawn (including past withdrawals, if any) is
less than all the regular contributions you had made, the net loss can be
claimed as a miscelaneous investment expense on Schedule A (Itemized
Deductions) in the section subject to 2% AGI exclusion (same section used for
investment expenses, safe deposit box, tax filing epenses, and unreimbursed
employee expenses), that is, one would have to itemize and then only the
portion of this section of Schedule A would benefit you only for the part of
the total that exceeds 2% of your AGI. For most people, that 2% AGI is a
hurdle.

I don't know how the above gets complicated if any of the Roth IRAs contain
conversions--you may need to consult a tax professional if there are
conversions and you plan to close all your Roth IRA accounts.

Another option would be to transfer your Roth IRA to a different custodian that
doesn't charge such fees. You might see if you have a high enough balance for a
mutual fund, e.g., if you have over $1,000 left in the Roth IRA you could
transfer it to Vanguard and use one of the funds that requires a minimum
investment amount in a retirement account of $1,000, or you might check out one
of TIAA-CREF's funds (e.g., Equity Index). If you are going to do this, make
sure that you would have enough after the current Roth IRA custodian collects
commissions on selling your investments and charging you an account closing
fee.

Mark A. Young

L Hao:

If this is the only Roth IRA you have, you should be able to close the account with no tax ramifications. You should consult your CPA for your specific tax questions. You may be able to decuct losses from your taxes???

I have opened a Roth IRA account with $2000 before the NASDAQ crash in 2000.
Now, there is little left in there. And I no longer qualify for contributing
into Roth IRA. The brokerage firm is starting to charge me for balance below
certain level or inactivity. What would my options be? Should I just close
the account and get whatever left back? And if I do that, am I going to get
penalized by early withdrawal? Please advice. Thanks.

Lee