Hey all. My employer offers many stock benefits through RSU, ESPP, and options. I try to max out my ESPP and as a result my non retirement holdings are heavily skewed towards my employer’s stock. I’m trying to diversify and not worry about timing the market, but what do I need to consider when it comes to timing sales of the stock to avoid wash sales? Currently we are down from the highs a 2 years ago. Should I worry about wash sales relative to timing of various acquisition dates? What am I losing by making a wash sale? Thanks.
Very helpful! Thanks for the post. If I understand correctly, the long term impact is negligible since the cost basis of newly acquired stock factors in this loss. So eventually when I sell the recent lots years down the road I’ll be effectively getting a reduced gains tax (assuming there are gain). I just wasn’t sure if wash sale considerations should impact how and when I choose to diversify my portfolio.