RealAustinNative OP t1_j2amdkc wrote on December 30, 2022 at 9:13 PM

Reply to comment by BouncyEgg in Downsides to tax loss harvesting? by RealAustinNative

I didn’t realize this applied if you were re-purchasing similar funds in a different type of account.

buildyourown t1_j2aq10e wrote on December 30, 2022 at 9:37 PM

I just looked this up for my own harvesting.
The IRS has some ambiguous language. You can't buy the sma fund but you also shouldn't buy a similar fund with a different name. Ie, if you swap a vanguard s and p fund for a fidelity s and p. You can swap a total market for an s and p. That's what I did. You also can't rebuy the fund you sold. So if you have auto buys on your 401k you need to switch them.

vynm2 t1_j2ca5o0 wrote on December 31, 2022 at 4:30 AM

It definitely does, and you can effectively lose the losses if you repurchase the shares in an IRA (Roth or Traditional).