My situation is somewhat similar but different.  I contributed $6000 to my Roth IRA in 2022 but then my AGI went over the limit so I looked into removing the $6000 plus any earnings.  But The value of My Roth IRA dropped 10k from 1/1/2022 until now.  From what I read, if there’s a loss you can deduct it from $6000 but what if that leaves me with a negative number (-$4000)?  Do I do nothing?  If the value of the account later increases and I’m in the positive am I then penalized?