No. of Recommendations: 3
I guess it wouldn't be worth doing in my case then. I haven't sold any stock this year so selling some at a loss doesn't really do anything for me.

Actually, it does, and you should consider it.

Up to $3000 of the loss can be used to offset ordinary income. If you have more than $3000 in losses to take, the additional loss can be carried forward to offset either capital gains or ordinary income in future years. So you don't 'lose' the loss.

Because marginal ordinary income rates are higher than marginal capital gains rates, it is actually be more beneficial to sell stocks with capital losses in a year that you haven't sold any stocks with capital gains, especially if you limit your losses to $3000.

Your only hitch would be transaction costs to sell in your taxable account and re-buy in your IRA. Plus to avoid any appearance of tripping over the wash sale rules, you will need to wait 31 days between the sale in the taxable accounts and the buy in the IRA.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.