Can a loss in one Roth IRA make up for a gain in another when trying to withdraw early penalty-free?

Question

I have a Roth IRA account with $9,500 current value ($500 less than I invested in it). My wife has a Roth IRA account with $5,500 current value ($500 more than she invested in it). We pay our taxes married filing jointly.

I understand that I can withdraw up to how much I invested in the account penalty and tax free. Is there a way that we can merge these accounts, or fully withdraw from them both, and avoid penalties and taxes?

Or can we only withdraw my account fully, and her account up to the amount invested in it, while avoiding penalties and taxes? Thanks!

Answer 1

Your account is your account, hers is hers. The fact that you file taxes jointly doesn't change that. The "I" in IRA stands for Individual. You cannot merge them.

There are certain conditions when you can withdraw your IRA penalty-free, check this question for some pointers.