Can I claim any current losses as I rollover a 401K to a Trad IRA in 2009, and into a Roth in 2010?
So let’s say I have a cost basis of $100K in my 401K now worth $60K. In addition I have $10K in cost basis in a non-deductible traditional IRA now worth $6K. I’d like to rollover my 401K to an IRA now, giving me $66K of assets in an IRA. And in 2010, I’d like to move it all into a Roth IRA.
I figure I’d need to pay income tax on $100K (pre-tax 401K earnings) in 2010, but would there be a reduction on this due to the 40K of losses? So pay income taxes on only $60K? In addition, could the $4K of losses in my non-deductible IRA further reduce this taxable amount to $54K?
In general, how would this whole thing work?
Are capital losses considered when taxing an early 401k withdrawl?
If I have a rollover 401k that has decreased in value from $17,000 to $11,000, and I withdraw the balance, how will the capital losses be considered when taxes and penalties are charged?
Are Rollover IRA Losses Tax Deductible?
When my dad retired he decided to rollover his company 401k account into an IRA. With this bad economy he has loss a significant amount of money and it seems that no matter what he does it keeps going down. He is retired and this is all he has not including his pension. He wants to pull out the little that is remaining and is wondering if he can claim the loss on his taxes. Scary thing is this all happen with the last year and a half. Any help is much appreciated. Thanks