Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Is there any regulation preventing me from reinvesting funds from liquidating Roth accounts in 2008 into NEW Roth accounts (albeit different funds to avoid "wash sale" rules) also in 2008? The liquidation was performed in order to claim a Schedule A tax loss for year 2008.

I know one can borrow from an IRA and repay the monies within 60 days, no penalty. Not positive, but I think closing a fully funded Roth IRA in 2008, means you're done for 2008.

If you only have a Roth account, losses and gains in that account don't trip up wash sale rules. You need transactions of the same stocks/funds in a taxable account to have wash sale rules come into the picture.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.