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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Re: Reinvesting Roth liquidated for a tax loss Date: 12/7/2008 7:11 PM
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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.

Phil
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