No, you are not literally precluded from doing TLH by having both funds in the same account.1. The recommendation not to hold both in the same account is that it precludes one from doing tax loss harvesting. Is that correct? Is that only for a taxable account?
Yes, TLH only comes into play if you have at least a taxable account (having other account types like IRS also come into play).
TLH requires you the investor-taxpayer to understand the rules and conditions that let you successfully claim a loss on your taxes. It's an advanced topic, and easy to mess it up.Is there any loss for having both funds in the same account?
Even if the plan is to do TLH, as long as we don't setup 'automatic reinvestment' of dividend distributions and have them deposit in the VMFXX for 30 days, we should be fine, isn't it? Sorry but I haven't done any TLH yet and still in the planning stage and have both funds in the brokerage account, just for that reason. Of course I do have only VTSAX in the Roth account.
To the extent that having both funds in the same account complicates your ability to TLH (or your ability to even understand how to TLH), then yes it's best avoided.
krisSA, I think you're going down the right track (you mentioned some relevant aspects of TLH) but the devil is in the details. Check out the wiki article on TLH: https://www.bogleheads.org/wiki/Tax_loss_harvesting and ask more questions.
Statistics: Posted by sycamore — Tue Aug 20, 2024 6:38 am
