Can losses to a 401k fall under the category certain losses-losses from activities entered into for profit? The amount in the account at the beginning of the year clearly shows it's worth and the ending balance clearly shows it's losses as do the detailed statements. This is not just theroretical, it is an actuality. I cannot get the amount my balance said I had at the beginning of 2008 and will never recoup the loss as the compounding interest won't be the same if and when the market turns around and the value goes up. Plus, my employer has now ceased to match contributions to the plan. Would I have to close the account and reinvest it into another retirement account to claim the loss to show the differnce in value as an "actuality"?