Author Topic: Tax Loss Harvesting In 401k/IRA?  (Read 7209 times)

Cashflow

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Tax Loss Harvesting In 401k/IRA?
« on: December 17, 2013, 01:07:20 PM »
Do mustachians use tax loss harvesting and tax gain harvesting in retirement accounts like 401ks and tIRA? I can see doing this in taxable accounts but not sure on this. Thanks

msilenus

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Re: Tax Loss Harvesting In 401k/IRA?
« Reply #1 on: December 17, 2013, 01:18:50 PM »
You can harvest gains out of a 401(k) whenever you can take penalty-free distributions.  You can't harvest losses.  There's no way to realize a loss out of a 401(k) plan.

If you're doing after-tax 401(k) rollovers/conversions it can be beneficial to try to time them when the market is break-even or down from when the contributions went in.  That's not harvesting a loss, but it is avoiding a taxable event.

Eric

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Re: Tax Loss Harvesting In 401k/IRA?
« Reply #2 on: December 17, 2013, 01:29:51 PM »
The Mad Fientist just had a couple of posts on tax loss and tax gain harvesting:

http://www.madfientist.com/tax-loss-harvesting/

http://www.madfientist.com/tax-gain-harvesting/

Cashflow

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Re: Tax Loss Harvesting In 401k/IRA?
« Reply #3 on: December 17, 2013, 01:30:11 PM »
Got ya makes sense.