Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Author: Ilmono Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Washsale and Roth IRA/401Ks Date: 12/25/2000 7:49 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Been scanning the board unsuccessfully for an answer:

In my regular brokerage account, I sold on December 23 three stocks, realizing (short-term) losses on each one.

In my Roth IRA, I repurchased two positions under the (maybe wrongful) impression that transactions in my retirement account do not affect my taxable transactions.

I also would like to realize losses on the third stock I sold. Unfortunately, I purchase this stock regularly, including December, with every paycheck through my 401K contribution plus my employers match.

It appears that repurchasing within 30 days in your Roth IRA would contradict the spirit of the wash sale rule. However, on the flipside, I cannot take Roth IRA losses and apply it against my taxable positions, which could be viewed as an argument that the retirement accounts may be seen as a seperate "entity". Further, where do you draw the line? Does my 401K contribution affect the amount I can declare as losses in my regular brokerage account?

Any thoughts or IRS references containing clarifications?
Print the post Back To Top
Author: RooCat Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 43372 of 121061
Subject: Re: Washsale and Roth IRA/401Ks Date: 12/25/2000 9:19 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Although there are more of us on the side that even your retirement accounts count for wash sales, there are no rulings, court cases or code exactly so stating. There are a few of us who feel that retirement accounts are outside the wash sale rules but they are the minority.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Advertisement