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Financial Planning / Tax Strategies


Subject:  Re: Wash Sale Losses Date:  9/24/2001  10:22 PM
Author:  tacful Number:  54192 of 127613

To fund any IRA one must have earned income. You must fund your IRA with cash only, presumably from earnings. You are purchasing whatever is in your IRA (be it stocks, bonds, gold, or CDs) with cash from earnings, NOT from the sale of investments.

Buying a stock within your IRA and selling an identical stock in a taxable account within 30 days has no bearing on the tax treatment of the sale. IRAs & taxable accounts are like apples & oranges. Wash sale rules pertain to buying & selling in taxable accounts only, not IRAs.

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