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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: Marmalade who wrote (23691)	12/19/2025 11:20:15 AM
From: SeeksQuality	6 Recommendations Recommended By chowder ddbpaso IncHunter Marmalade Mili21 and 1 more member Respond to of 23775

No, you can not take a tax loss on stocks held in an IRA. You cannot take a tax loss for the same reason that you wouldn't own a tax gain. This is independent of whether you execute an "in kind" distribution or a Roth rollover. In the former case, you would owe tax on the current value of the position and that would become your cost basis going forward. In the latter case, you would owe tax on the current value of the position and (since it would be held in Roth) the cost basis would continue to be irrelevant. I strongly recommend you discuss this with your tax professional, as it is much easier to achieve clarity through an in-person discussion than on a message board. Good luck!

To: Marmalade who wrote (23691)	12/19/2025 11:42:40 AM
From: Max2.0	Respond to of 23775

I am pretty sure the short answer is ---> No. If the funds are in a traditional tax deferred type IRA, any funds converted are taxed as ordinary income regardless of whether you made or lost money on the investment.

To: Marmalade who wrote (23691)	12/20/2025 11:38:20 AM
From: 2hugo	4 Recommendations Recommended By chowder eaglebear Marmalade Rincon v2.0 Read Replies (1) \| Respond to of 23775

no you can't realize any loss when you convert ira into a roth .What might be a positive tax wise is the taxes due on the conversion are less on a 8K conversion rather than 10K and would seem like a good move if the stock goes up in the roth after the conversion I firmly believe dont let the tax tail wag the dog if the stock is a bad investment sell it and find a better investment regardless of where its held.