Author Topic: Robo-advisor Tax Loss Harvesting + Wash Sale + External Accounts  (Read 372 times)

FIPharm

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Hey MMMs,

How does the wash sale rule affect robo-advisor automated tax loss harvesting if your other investment accounts (i.e Vanguard, Fidelity) aren't linked up to Wealthfront? Wealthfront wouldn't be able to monitor this, correct?

I like the automated tax-loss harvesting but if I can eventually do it myself than I'll transfer the money out into Vanguard or Fidelity brokerage accounts. Would I potentially run into the wash sale rule with roboadvisers automatic tax-loss harvesting and automatic reinvesting dividend in Vanguard/Fidelity accounts?

What would you guys recommend?

Reference links:
https://www.physicianonfire.com/tax-loss-harvesting-vanguard/
https://www.physicianonfire.com/tax-loss-harvesting-fidelity/
https://support.wealthfront.com/hc/en-us/articles/211003443-How-do-you-harvest-losses-without-triggering-the-Wash-Sale-rule-

Thanks,
Eddie