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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124951  
Subject: Re: SEP-IRA/ROTH - NO CASH Date: 2/16/2000 3:23 PM
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<<<<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.>>>>

If you buy them back either 30 days before the sale (apparently not likely in your fact scenario) or 30 days after the sale, you MIGHT be triggering the Wash Sales rules. This issue is not resolved vis-a-vis the IRC and IRS, and the tax pros are split on their opinions.

There has been much discussion about this topic on this board about this issue, with all the arguments for both sides laid out. For the record, I am not a tax pro, but I believe that the Wash Sale rules are triggered.

I find it particularly telling that, however unintentionally, you wrote: "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)." Freudian slip?

Regards, JAFO

PS to Roy: Post April 15th, you might consider a separate section of the FAQ regarding wash sales across taxable and tax benefitted accounts.

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