|Closing a Money Losing IRA|
|Discusses how to close a money-losing Roth IRA and take a capital loss.|
|FeedbackBy Preston Hunt, 23 February 2003|
In any event, it looks like you can close your Roth IRA out completely and take a loss as a miscellaneous deduction. The only gotcha is that there is a deductible of 2% of your adjusted gross income, which means that your losses have to be greater than 2% of your adjusted gross income to make this worth it.
Publication 529 from the IRS is the authoritative source on what you can and can't do.