Not as I understand it.If I keep div reinvestment ON in the VTSAX IRAs and turn it OFF in the main non-tax advantaged account where I would be withdrawing from for the foreseeable future, would this alleviate the issue?
The issue is that if you sell VTSAX in your taxable account within 30 days of getting dividends reinvested in VTSAX in your IRA, then it could potentially be a wash sale.
The solution is to put your IRA assets in a substantially different fund. If you want a total stock index fund in your IRA, then you could use something like SCHWB (a total US stock market index ETF). You could leave automatic reinvestments on then in your IRA and not worry about when you sell the VTSAX in your taxable account.
I agree with others that I would turn off automatic reinvestment of dividends and either take out the cash or put it into a MM fund for ready access. That is money that you will be spending.
In my own situation, we only use automatic reinvesting in retirement accounts that only hold one or two funds and not accounts that are used to rebalance our total portfolio allocations. These funds aren't duplicated in the taxable account.
Statistics: Posted by WeakOldGuy — Fri Oct 25, 2024 10:58 pm