wash sale, does it apply

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frugaltype
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wash sale, does it apply

Post by frugaltype » Sat Mar 01, 2014 6:39 am

I have some Wellesley in both my traditional IRA and my Roth IRA. I want to wind up with all of it in the Roth, but not do a conversion. That is, I want to sell it in the traditional and buy an approximately equal amount in the Roth.

Do wash sale rules apply in this case? I am thinking, no? Anything else non-obvious that might be a problem with this? Thanks.

(The advantage of doing this is that I hope to reduce my required minimum distributions, since the other stuff in the traditional generally earns less. Of course, I know there's no guarantee of that in the future.)

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Rainier
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Re: wash sale, does it apply

Post by Rainier » Sat Mar 01, 2014 6:42 am

No, it doesn't. There are no tax consequences in ira's.

Also, you'd have to have a loss, do you even have a loss?

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frugaltype
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Re: wash sale, does it apply

Post by frugaltype » Sat Mar 01, 2014 6:49 am

Rainier wrote:No, it doesn't. There are no tax consequences in ira's.

Also, you'd have to have a loss, do you even have a loss?
Thanks.

I doubt I have a loss. But I have it on automatic reinvestment, and I have not been tracking those itty bitty transactions, since it's in IRAs.

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bottlecap
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Re: wash sale, does it apply

Post by bottlecap » Sat Mar 01, 2014 10:11 am

In this case, there is no problem because both accounts a tax-advantaged. If you sold at a loss in a taxable account and bought in your tax advantaged account, however, that would be a wash sale.

JT

placeholder
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Re: wash sale, does it apply

Post by placeholder » Sat Mar 01, 2014 1:12 pm

What did you think the affect of the wash sale would have been if one were declared?

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frugaltype
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Re: wash sale, does it apply

Post by frugaltype » Sat Mar 01, 2014 6:22 pm

placeholder wrote:What did you think the affect of the wash sale would have been if one were declared?
I was worried about having to do a lot of calculations if wash sale rules applied. I didn't think they did, but better safe than sorry. Of course, in my taxable stuff, I have all transactions and reinvestments documented, so that would have been much easier.

sscritic
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Re: wash sale, does it apply

Post by sscritic » Sat Mar 01, 2014 6:36 pm

How many transactions in Wellesley do you have in the last 30 days in your IRA for which you have no records?

Not that is matters, but I was wondering what complicated computations you were expecting.

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