Early Withdrawal

Question: Early Withdrawal of a Roth IRA will result in taxes and penalties on any income… but what if it lost money?

Are you still penalized for Early Withdrawal. (I’m under 59 1/2 and the money has been in a Roth ira for ten years.)
Thanks

Answer: You don’t pay tax or penalty if you simply remove your original contributions. If you take an unqualified distribution of any gains — that is, subject to the 5-year and age 59 1/2 rules — your the distribution is taxable and subject to the 10% penalty.

You can take a deduction for losses in Roth IRAs if you liquidate ALL Roth accounts for less than your original investments. This is taken as a miscellaneous itemized deduction on Schedule A, subject to the 2% floor. (This is also an AMT item, so be careful!)

Investing & Retirement Funds : IRA Early Withdrawal Rules