On Feb 2, 1:19 pm, Alyce <alyce...[at]yahoo.com> wrote:

- quote -

Technically, there is only one Roth, and 2 accounts. He can take a
loss if he liquidates all of his Roth accounts and has a loss, but the
loss is subject to the 2% of AGI limitation (you can only deduct the
amount above 2% of your adjusted gross income) and the deduction is
only available if you itemize, and the deduction is not allowed under
AMT. If he converted a traditional IRA to a Roth, he can convert back
to a traditional IRA (and back to a Roth later).

http://www.irs.gov/publications/p590/ch02.html#d0e11027
http://www.fairmark.com/rothira/losses.htm

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My son started two Roth IRAs in 2007 and cashed them in in 2008.
Since these are Roths does he have to pay tax and a penalty on them?
They were both losing money and the investment advisor told him he
could take the principle out at any time.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >