- 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 $2000 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?
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 It is calculated based on the total amount you have withdrawn from all your Roth IRA's, minus the total basis.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 $2K, and all of it is above the other deductions you have (which in turn is above the standard deduction of almost $6K), you save say $300 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) $8K and $35K, i.e.: you cannot deduct between $160 and $750 of the $2K, so it's already less than the maximum $300. If your AGI is $8K, the deduction doesn't matter, EIC might cover all of your taxes anyway. If your AGI is $30K, you can deduct only $1400, so if you're in the 15% bracket - you saved $210. 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.)