Comments on: Deducting IRA Losses http://www.figuide.com/deducting-ira-losses.html FiGuide's free daily tips provides short, actionable strategies to help you achieve a successful, worry-free retirement. Wed, 08 Feb 2012 22:33:05 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Jim Blankenship, CFP®, EA http://www.figuide.com/deducting-ira-losses.html#comment-3747 Jim Blankenship, CFP®, EA Sun, 10 Apr 2011 21:44:48 +0000 http://financialducksinarow.com/?p=1837#comment-3747 Hi, Jeff - If the client has distributed all of his trad IRA accounts in the tax year then the loss (versus the basis) should be deductible as a miscellaneous itemized deduction. It shouldn't matter (as far as I know) that the distribution resulted in a Roth conversion, since it's still a distribution. He *may* have to pay all of the tax on the 2010 return (instead of spreading it) since he's recognizing the loss in 2010... you should follow up on that possibility. If it was me doing the return I'd recommend going that route to be conservative. jb Hi, Jeff -

If the client has distributed all of his trad IRA accounts in the tax year then the loss (versus the basis) should be deductible as a miscellaneous itemized deduction. It shouldn’t matter (as far as I know) that the distribution resulted in a Roth conversion, since it’s still a distribution.

He *may* have to pay all of the tax on the 2010 return (instead of spreading it) since he’s recognizing the loss in 2010… you should follow up on that possibility. If it was me doing the return I’d recommend going that route to be conservative.

jb

]]> By: Jeff http://www.figuide.com/deducting-ira-losses.html#comment-3729 Jeff Wed, 06 Apr 2011 15:13:55 +0000 http://financialducksinarow.com/?p=1837#comment-3729 I have a client who had a significant loss in tIRA's with basis. He did a conversion of all those IRA's to Roth IRA's. Does the conversion allow him to take a deduction for the losses or does he have to actually take distribution of the monies? I have a client who had a significant loss in tIRA’s with basis. He did a conversion of all those IRA’s to Roth IRA’s. Does the conversion allow him to take a deduction for the losses or does he have to actually take distribution of the monies?

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