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Question

What is tax loss harvesting?

Right now, I have both taxable investments and retirement accounts and am starting to pay more attention to taxes. Right now, I do not want taxes to drive every investment decision, but I also do not want to create unnecessary gains, higher income, or Medicare costs. The part I am trying to resolve is how taxes fit into investment selection and withdrawals.
Financial planning

Asked in Middletown, CT · Jun 19, 2026 · 1 answer

Answer
Soradin

Soradin

General information

Posted Jul 24, 2026

It is selling an investment at a loss to offset gains, while following rules that can limit the deduction if a similar investment is repurchased too soon. Within the broader financial plan, investment taxes can be managed through account location, withdrawal sequencing, gain and loss decisions, charitable giving, and coordination with income. When the options are compared, coordinate the investment decision with a CPA or tax professional when a sale or withdrawal could materially change taxable income.

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