Sep IRA to IRA to Roth

[Guest alitrac]

I went from a Sep IRA to IRA to Roth and bought a stock that we thought would be good but it tanked. I paid taxes on the money in 2001. The roth is about worthless now. Is there any way to recover the tax that I paid. I'm sure not, but just trying to get some answers. And yes, I know only pick stocks that are going up.

[John G]

A common issue. You can find multiple threads using the search feature and key words like "Roth IRA Tax Loss".

Here are some refs:

http://www.benefitslink.com/mbmirror/12927.html

http://www.benefitslink.com/mbmirror/8252.html

http://www.benefitslink.com/mbmirror/17047.html

Note, the imbedded reference to the Motley Fool article - it is worth a read.

[mbozek]

You can find out how to claim IRA tax losses by reading IRS Pub 590 available on the iRS web site.

[Appleby]

This URL takes you directly to the section of IRS publication 590 that addresses Recognizing Losses on Investments (in Roth IRAs)

http://www.irs.gov/formspubs/page/0,,id%3D...31,00.html#T102