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No. of Recommendations: 3
1. The Wash Sale Rule only kicks in for sales in taxable accounts, right?

No. If you sell at a loss in a taxable account and buy back within the wash sale window (30 days before or after the sale date) in a tax deferred account, you lose the ability to deduct the loss.

Basic answer is don't do it.

A loss within a tax deferred account is meaningless for taxes because the taxable amount is determined only for distributions. A "wash sale" can't transfer a tax loss out of a tax deferred account to a taxable account.
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1. My limited understanding is that the wash sale rule applies across all accounts, including IRAs. If you sell a stock at a loss in a non-retirement account and buy within +/- 30 days in an IRA, the wash sale rule applies. If you sell at a loss in an IRA and buy within +/- 30 days in a non-retirement account, I guess technically the wash sale rule applies but as there is no 'tax' loss it is of no consequence.

2. The wash sale rule only applies to losses.

bclstu.
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No. of Recommendations: 3
1. The Wash Sale Rule only kicks in for sales in taxable accounts, right?

No. If you sell at a loss in a taxable account and buy back within the wash sale window (30 days before or after the sale date) in a tax deferred account, you lose the ability to deduct the loss.

Basic answer is don't do it.

A loss within a tax deferred account is meaningless for taxes because the taxable amount is determined only for distributions. A "wash sale" can't transfer a tax loss out of a tax deferred account to a taxable account.
Print the post Back To Top