401K and income tax filing

[Ndoyle65]

What is the name of your state (only U.S. law)? MA.

I am asking a general question...

I would like to know if someone has lost part or all of their 401K due to the economy situation that is going on, can they get any part of it back by taking it as a loss on their 2008 income tax filing??
What would they need to do?
Thanks eek:

 

[efflandt]

Your 401k contributions were never federally taxed, therefore, you can never take any federal tax deduction on any losses, even if you lose it all.

Even with an IRA, the only way you could ever take a loss is if your total "distributions" (not transfers) when the account reaches $0 exceeds your nondeductible (taxed) contributions. You still can never claim any loss for deductible contributions.

If your state taxes 401k contributions you would have to research that. But if they have state provisions for losses, that would likely not apply unless the account has been totally distributed and depleted.