I have the same mutual fund in my joint taxable account as my wife has in her 401K.
I have about $20K in losses in my taxable account for which I want to harvest.
However, the fund just made a capital gains distribution last week and while I took the proceeds in cash in the taxable account, the proceeds in the 401K were automatically reinvested. The number of shares reinvested is about 7% of the number of shares I wish to sell in the taxable account to harvest the losses, so the amounts are significant.
Would selling all shares in the fund within the 401K a few days before we do the lost for the purpose of tax loss harvesting so that we no longer owned replacement shares when we took the loss avoid a wash sale?
I have the same question (albeit smaller amounts) if the reinvested dividend was within an IRA.
I appreciate any replies. Thanks.
- posted 1 year ago