Hi there,
I'm trying to plan an investment structure which keeps the door open in the future for me to potentially tax loss harvest in a taxable account.
Structure:
Taxable: VFIAX vs VLCAX vs something else? Plus VTIAX + other stuff
Roth: VTSAX
401k: FXAIX
Due to limited funds in the 401k, it has regular buys of FXAIX (snp500). Otherwise, I would hold a total stock market fund here and would have no issues. The problem I'm facing is that it may be that FXAIX is similar enough to VFIAX or VLCAX to classify a wash sale.
Additionally, the Roth reinvests dividends into VTSAX, so a similar issue exists there. So, I'm trying to find a fund through Vanguard which would keep the option open for me to tax loss harvest in the future. VFIAX -> VTSAX would work, except I believe that the FXAIX dividends and regular DCA may classify this as a wash. So, I was thinking perhaps VLCAX, but even this may be too simliar to an SNP500 fund, correct?
I have some specific questions that would clarify for me:
1) Does having 401k purchases (dividends, DCA) of FXAIX within 30 days cause me to be unable to harvest losses from VFIAX (snp500) or VLCAX (large cap)? If not, what would be a better plan?
2) Regarding the loss harvesting itself, based on the previous answer, is it valid to exchange VFIAX for VLCAX, and vice versa, to harvest losses? I would assume not, but if this is the case I'd like to know because it would be the best for preserving asset allocation.
Submitted June 14, 2020 at 10:44PM by gaylordpimp https://ift.tt/37tTQR6
