Can you have a wash sale on a ROTH account?

Asked 4 years ago

Does the wash sale rule apply in a ROTH IRA and, if so, how is it affected?

Andia Rispah Igobwa

Monday, June 28, 2021

Yes. A wash-sale rule can also apply to a Roth IRA.
The rule might apply if you sell a losing stock within a taxable account and then purchase a similar stock within the 30-day window.
However, in case you buy and sell the same stock within an IRA, this rule doesn't apply.
This is because losses and gains don't apply to IRAs.