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Personal Investments • Wash sales risk across taxable and tax-deferred accounts

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Correct, I do not hold these funds in my tax-deferred accounts. I am planning to buy VTI and VEA with the proceeds from selling the bond funds in my taxable account.

As I rollover my 401K, I was hoping to stay with a simple three funds approach (VTI, VEA and BND), but it sounds like I'll need to add another bond fund to avoid a wash sale, correct?

Thank you for the feedback.
1) Is NOT rolling over the 401(k) to a Rollover IRA an option? Unless the 401(k) has atrocious expense ratios, it is better to keep the 401(k) as is, due to the much stronger ERISA protections.

2) If you still decide to go with the rollover, why not wait to buy BND until 30 days later? As I said, park your money in VUSXX or something similar, the yields between the short term and intermediate term are not that much different, with the edge actually going to short term funds.
1) Yes, I should have been more specific. I am rolling to a rollover IRA. We live in a state that protects IRAs. My main motivations for rolling the money over is to consolidate and simplify for my wife in case something were to happen to me.

2) Good point about parking the money in VUSXX for 30 days instead of adding another bond fund. Thank you for highlighting that again for me.

Statistics: Posted by YetiPlease — Wed Dec 04, 2024 9:21 am — Replies 9 — Views 222



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