Losses on Roth IRA Distribution

[Guest losses]

I started a Roth IRA in 1999 with a Charles Schwab S&P 500 Mutual Fund. I contributed the full $2000 in 1999 and in 2000. In 2001 I had contributed an additional $800 making my total basis in the Roth IRA $4800.

In August of 2001, I liquidated the Mutual Fund. The total distribution was $4084 (A loss of $716). Can I claim the loss, and if so, How?

Any help you have is greatly appreciated.

[John G]

See this link:

http://www.benefitslink.com/mbmirror/12458.html

Also note Barry Picker has at least one article on this subject posted at www.rothira.com

It is a sad commentary on the last two year investment results that this question comes up so often. But, markets rarely are down three years in a row, 2002 looks like an up year to me.