Message Font: Serif | Sans-Serif
No. of Recommendations: 2
Are there any additional regulations (beside the "wash sale" rule) that prevent me from reinvesting the funds into a new Roth in the same year that I claim the loss?

Sorry, I can't answer your question. I do know that the concept of taking a deduction for a liquidated IRA is based on the Code provision for unrecovered payments for an annuity. Your question basically boils down to when is an IRA considered liquidated--at a point in time or at the end of the tax year? Maybe one of the pros will be along to offer some wisdom rather than SWAGs.

I do want to warn you and others off the wash sale distraction. All IRAs are tax-exempt entities, which means capital gains & losses are irrelevant, which means the wash sale rule is irrelevant regarding transactions solely within the IRA.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.