Author Topic: Buying/selling mutual funds - different IRAs same tax return  (Read 1096 times)

jeromedawg

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Buying/selling mutual funds - different IRAs same tax return
« on: January 18, 2017, 08:35:22 PM »
Hi all,

I was looking at buying/selling funds to re-balance my IRAs and taxable accounts between my wife and I. My wife has a fund (FUSVX) in her tIRA that I may want to sell and I may want to buy some FUSVX in my taxable account (under my name). Will doing this trigger a wash sale because we're on the same tax return (I would be filing joint)?

matchewed

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Re: Buying/selling mutual funds - different IRAs same tax return
« Reply #1 on: January 19, 2017, 05:00:21 AM »
I'm no expert but I don't believe so as the tIRA has tax free growth (except upon withdrawal of course). That tax free growth means tax "free" loss as well.

mskyle

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Re: Buying/selling mutual funds - different IRAs same tax return
« Reply #2 on: January 19, 2017, 05:20:26 AM »
When accounts are in the same household then yes, the wash sale rule applies. But I'm not sure it matters in your situation.

So would you be selling the FUSVX at a loss from the taxable account? If you sold the FUSVX from the your taxable account and claimed a loss then bought it in your wife's IRA, that would be a wash sale. But it sounds like you're going the other direction?

If you sell at a gain from the tIRA and then buy in the taxable account, you won't be able to tax-loss harvest that security until the wash sale period is up.

NoStacheOhio

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Re: Buying/selling mutual funds - different IRAs same tax return
« Reply #3 on: January 19, 2017, 06:18:17 AM »
Just use FSTVX for the 30-day wash sale period.

jeromedawg

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Re: Buying/selling mutual funds - different IRAs same tax return
« Reply #4 on: January 20, 2017, 02:31:10 PM »
When accounts are in the same household then yes, the wash sale rule applies. But I'm not sure it matters in your situation.

So would you be selling the FUSVX at a loss from the taxable account? If you sold the FUSVX from the your taxable account and claimed a loss then bought it in your wife's IRA, that would be a wash sale. But it sounds like you're going the other direction?

If you sell at a gain from the tIRA and then buy in the taxable account, you won't be able to tax-loss harvest that security until the wash sale period is up.

No I'm not trying to tax-loss harvest here. Just wanting to consolidate things across accounts and what not. I should probably just leave the taxable accounts out of the equation then to avoid triggering a taxable event. If I'm 'rearranging' stuff strictly between tIRAs and Roth IRAs, that shouldn't result in any issues though right? As long as I don't incur short-term fees by buying and then selling within the 30 days or whatever?

EDIT: actually, let me flip it the other way. What if I have FSEVX in a Roth IRA and I want to sell it (at a gain) and then buy FSEVX in my taxable account? Will that trigger any sort of taxable event?

Another scenario: I bought FUSVX in my wife's tIRA and I have FUSVX in my Roth IRA that I want to sell off (also at a gain) - will doing that trigger a taxable event as well?
« Last Edit: January 20, 2017, 03:23:47 PM by jplee3 »