Emptying a Roth IRA account
If I withdraw money from my single Roth IRA account to make it
empty, will the account be closed?
Is there any expense to open a new Roth IRA account?
If my purpose of emptying my Roth IRA account is to claim about
00 capital loss in the account, is it worth any expenses that may
occur, for example, for later opening a new Roth IRA account?
By the way, is there usually some maintenance fee for keeping a Roth
IRA account charged by most brokery companies?
(2)2 Comments
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If you have multiple accounts, you have to empty them all before you can deduct any losses.
Your loss is not a capital loss, its a deduction. It is calculated based on the total amount you have withdrawn from all your Roth IRA's, minus the total basis. It will be subject to the 2% AGI treshhold (i.e.: if your AGI is > 100K, none of it is deductible, and you have to itemize to get it).
Bottom line - think twice.
Summarizing the discussion in comments:
If you have a very low AGI, I would guess that your tax liability is pretty low as well. Even if you deduct the whole K, and all of it is above the other deductions you have (which in turn is above the standard deduction of almost K), you save say 0 if you're in 15% tax bracket. That's the most savings you have.
However I'm assuming something here: I'm assuming that you're itemizing your deductions already and they're above the standard deduction.
This is very unlikely, with such a low income. You don't have state taxes to deduct, you probably don't spend a lot to deduct sales taxes, and I would argue that with the low AGI you probably don't own property, and if you do - you don't have a mortgage with a significant interest on it.
You can be in 15% bracket with AGI between (roughly) K and K, i.e.: you cannot deduct between 0 and 0 of the K, so it's already less than the maximum 0. If your AGI is K, the deduction doesn't matter, EIC might cover all of your taxes anyway. If your AGI is K, you can deduct only 00, so if you're in the 15% bracket - you saved 0. That, again, assuming it's above your other deductions, which in turn are already above the standard deduction. Highly unlikely.
As I said in the comments - I do not think you can realistically save on taxes because of this loss in such a manner.
Ask your broker. Probably not. They will keep the account open in case you want to deposit money into it in the future.
Not with most brokers. They want your business. There may be a minimum deposit, but there will probably not be a fee for opening an account.
(addressed in other answers)
Account fees depend on your broker. Look at the fee schedule online at the broker's website. Some companies do charge fees. The companies I personally use do not charge me any fees. (Vanguard waives the fees for its mutual funds with the use of electronic statements; E*Trade makes its money off brokerage commissions in the account.)
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