Does the C fund in my TSP create a wash sale problem for me if I use an S&P 500 index in a taxable account and make a TLH? I like your idea about TSM and S&P or Large Cap but I also plan to hold a U.S. stock index in my Roth which might make this a bit more complex. Can you suggest what should be kept in the Roth and also two ETFs that can be used for TLH in a taxable?The general consensus on this site seems to be that using two different total market funds that track different indexes does not meet the IRS definition of "substantially identical"....
So it doesn’t matter if, in taxable and tax advantaged accounts, I hold finds with a major overlap of stocks (but clearly not identical), knowing they are all versions of a U.S. total market fund? As long as they are with different companies and follow different indexes?
However, the IRS has only loosely defined this term, so only the IRS really knows for sure. It's a judgement call on your part as to whether or not you want to proceed.
One potential alternative would be to switch among an S&P 500 fund (or large cap index fund) and a total market fund since they hold very different numbers of underlying stocks.
Regards,
Statistics: Posted by dave.m — Tue Jan 28, 2025 7:14 pm