The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Murse on December 21, 2016, 10:45:55 AM
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Hello, about a month ago I sold all of my vtsax to prepare for another investment that didn't quite work out. they gave me some kind of notice on me not being able to buy it back for a specific amount of time but I can't remember that time-frame. Anyone here know the answer?
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I think you're referring to a wash sale, though your account may have different limits.
http://www.investopedia.com/terms/w/washsalerule.asp
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There are two numbers to consider: the Vanguard-imposed frequent-trading policy (https://personal.vanguard.com/pdf/vbsfreq.pdf), which says you have to wait 30 days (60 for some types of accounts), and the IRS-imposed Wash Sale rule, which is more complicated but really only applies if you realized a loss on the sale.
So you should be able to buy VTSAX again soon, but another thing you could do if you didn't want to wait is just buy a similar fund, e.g., VFIAX (which tracks the S&P 500).