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Author: pmarti 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 121189  
Subject: Re: SEP-IRA/ROTH - NO CASH Date: 2/16/2000 11:50 AM
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<< I need to add $2000 to my ROTH and Approx $10000 to my SEP-IRA. Of course I do not have the cash on hand it is all tied up in stocks.

NOTE- My transactions fees for the following are going to be a total of $80 so I will not get hit hard there.

Since one must put cash in IRA's I need to sell stocks. This could end up being OK.

I have a few stocks that I have a loss on. If I sell them and then buy them back in my ROTH and SEP I in turn will be reducing my taxable income for the year because of the loss. Then, when my ROTH goes back up I will not be taxed on the income.

In the SEP I will not be taxed on the income until I pull it out.

It appears to me as long as I buy back at the same price or lower than I sell this should all be a wash(besides the transactions fees of $80)

Anyone find any flaws in my logic. >>

Just one POTENTIAL flaw: the wash sale rule.

You haven't seen long-winded until you've read the various posts on whether or not the wash sale rule applies to your case. I don't want to reignite that debate, so I'll just tell you that there's no clear answer. Search the board and enjoy.

Phil Marti
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