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wash sale question and also a RMD query

Ok, quick query:

Suppose on Dec. 20th, I buy XYZ stock. I sell it all on 12/21 for a $1000 LOSS.

Ok, on 1/5 of the following year, I buy XYZ stock again, same number of shares. Now, at this point, the previous loss is a wash sale and can?t be claimed. But, on 1/6 I sell XYZ (I don?t think it matters if it is a gain or loss ? does it?). This removes the wash sale.

My question: is this loss now logged in 2016? If so, I guess it is a way to move a December loss from 2015 to 2016.

Also, a different query. This year, I have to start taking my RMD from my traditional IRAs. Suppose I have five IRAs and the aggregate RMD is $1000. I assume I can withdraw the funds from ONE of my IRAs. Correct? Finally, when I do the withdrawal, do I have to specify that it is an RMD withdrawal? I assume there is no such specification and I just have to withdraw the funds out whenever I want, but during 2016 (I know I have until April, 2017, but I don?t want to do TWO withdrawals in 2017)

Mel

Reply to
MZB
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I assume you're selling all of it.

Correct. The whole point of the wash sale rule is that you have to defer the tax benefit of the loss. So the government will have your tax money for an extra year, where it's earning interest in their account rather than yours.

Reply to
Barry Margolin

Barry:

Thanks for the response. Yes, it would be somewhat rare for the TP to WANT to move a loss from 2015 to 2016. But I actually want to lower my

2016 income (due to future MediCare costs). So this would be a way to do that!

Mel

Reply to
MZB

Yes, assuming that they are all traditional IRAs and not inherited where you are the beneficiary.

That is also correct. You do not specify that it's an RMD. All withdrawals are considered RMD withdrawals until you have withdrawn the full RMD amount.

Bob Sandler

Reply to
Bob Sandler

Thanks for the reply.

Mel

Reply to
MZB

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