Tax Loss Harvesting Question

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Milujo
Posts: 52
Joined: Fri Nov 30, 2018 2:18 pm

Tax Loss Harvesting Question

Post by Milujo »

Question: Would TLH-ing depreciated shares of an S&P500 fund in my taxable account trigger a wash sale if I bought within the past 30 days shares of a different S&P500 fund in my 529 account?

30+ days ago, I paused all purchasing (and reinvesting of dividends) of S&P 500 funds in all of my retirement accounts, knowing that I wanted to TLH. But today, I realized that I failed to pause our monthly purchases of New Hampshire's S&P500 fund in our 529 plan. Thanks for any input!
mega317
Posts: 5249
Joined: Tue Apr 19, 2016 10:55 am

Re: Tax Loss Harvesting Question

Post by mega317 »

My opinion is that two different S&P 500 index funds are substantially identical. So yes.

If you really get into it, you would have to define what you mean by "trigger". You will never never never get into any trouble for doing this and not reporting a wash sale. That doesn't make it right though.

Just sell the shares you bought in the 529, and then do your TLH.
https://www.bogleheads.org/forum/viewtopic.php?t=6212
Post Reply