If I sell an amount of holdings in a mutual fund on a certain date, in a non-retirement account, and purchase the exact same amount of the same fund on the same date, but in a Roth IRA, will the wash sale rule still apply?
Wash sale in different accounts
Mar 16, 2008
2 Replies
Discussed here many times. Wash rule applies if the sale was a loss. Of course if the sale was a gain, you pay the tax, and are free to repurchase in any account you wish. See
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for their explanation as well.
Joe
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I think the wash sale rule still applies, because the point of the wash rule is to subject you to market risk before you can take the loss. So the disallowed loss gets transferred to the stock in the Roth IRA, but as this is a tax-free trading account, you lose the wash- sale carryover.
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