On Thu, 30 Dec 2004 10:57:33 CST, Trapper <Trapper[at]my-deja.nospamcomwrote:

- quote -

Somehow this cross-posted question got by the ever-vigilant moderators
<grin> . Readers wishing to comment on this thread should pay
attention to the headers and reply only to MIFP - or to this
particular post, which has corrected headers.

Apologies to those who innocently responded to the post and had their
comments returned.


-HW "Skip" Weldon
Columbia, SC

Trapper wrote:
- quote -

There are no tax consequences for rebalancing a 401(k) -- if you need
to do it, you might as well do it now. In a taxable account, selling
assets that have appreciated, before Jan 1, will trigger a capital
gains tax, with the rate depending on the holding period and your
overall income level. Conversely, selling assets that have fallen in
price since you purchased them gives you a capital loss, which you can
use to offset capital gains and then up to $3000 of ordinary (including
wage) income.

Is there an advantage to rebalancing after Jan 1 as opposed to before
that? Does it differ by 401k versus a non-retirement investment?