Is this your ACCOUNTANT (CPA) or TAX PREPARER?
If it is your accountant, I’d recommend you get a new one—he is clearly wrong.
Traditional IRA—tax deferred (you get the write-off up front), and pay taxes upon withdrawal (retirement age).
ROTH IRA—contribute to it with after-tax dollars (no write-off), accrues tax-free and no taxes upon withdrawal (retirement age).
I looked into cashing out a Roth IRA early, and I would have a 10% penalty for doing it. You may be able to cash it out during the same tax year with no penalty—but it is definitely not a write-off.
Isn't the 10% penalty only on the interest? Mine hasn't made any interest. Therefore, I don't think there's any penalty, if you are only withdrawing the amount you funded it with.
Not necessarily, check my post above.