Yes, I know that the loss would migrate to any VTI shares purchased within 61 days by reinvestment in the Roth, and thus be forever lost as a capital loss deduction. And yes, to avoid that I would be turning off reinvestment of dividends in the Roth just for the VTI holding. I know, I know, this isn't ideal because I'll need to monitor for VTI distributions that end up in the Roth settlement account and then manually invest them probably into my VOO position that I also have in the Roth. It's either that or go through a bit of hassle to sell VTI in the Roth and put it into the VOO position that I also have in the Roth.What if in your Roth IRA a dividend reinvestment occurred within those 30 days back or 30 days forward? The loss, if existing in any of the Specific ID lots you sold, will "travel to" these replacement lots in your Roth IRA.
Don't tell me that you will be turning reinvestment off in Roth too![/color]
If I do sell my VTI position in my Vanguard Roth, do you know how quickly proceeds from the sale can be used to purchase additional shares of VOO in that account? Would I need to wait T+2 for the VTI sale to settle before I could use those funds to purchase VOO, or could I buy a comparable dollar amount of VOO immediately after I execute the sale of VTI? I don't want to take a lot of Roth money out of the market for even a couple of days.
Statistics: Posted by Rocinante Rider — Sat Apr 20, 2024 4:48 pm — Replies 6 — Views 364