Has anyone sold specific lots for a mutual fund (VTWAX) at Schwab. I was unable to select the option to sell specific lots on their website. I chatted with customer support and this is the response I was given:
"Clients cannot specify specific lots for a mutual fund sale if the account is set to the average cost method. When using the average cost method, the average cost per share is calculated, and clients cannot choose specific lots for sale. The sale must follow the First In, First Out (FIFO) method according to IRS guidelines. If clients wish to revoke the average cost method and specify lots for sale, they must follow specific criteria and submit a One-Time Authorization (LOA) to Schwab. For more information on revoking the average cost basis method, clients should refer to IRS Pub 550."
According to them all mutual funds must follow the FIFO method. I would need to fill out a specific form each time to sell a specific lot of a mutual fund. Does this seem right? Is this true at all brokerages?
"Clients cannot specify specific lots for a mutual fund sale if the account is set to the average cost method. When using the average cost method, the average cost per share is calculated, and clients cannot choose specific lots for sale. The sale must follow the First In, First Out (FIFO) method according to IRS guidelines. If clients wish to revoke the average cost method and specify lots for sale, they must follow specific criteria and submit a One-Time Authorization (LOA) to Schwab. For more information on revoking the average cost basis method, clients should refer to IRS Pub 550."
According to them all mutual funds must follow the FIFO method. I would need to fill out a specific form each time to sell a specific lot of a mutual fund. Does this seem right? Is this true at all brokerages?
Statistics: Posted by GXtrex — Tue Dec 17, 2024 8:19 am — Replies 5 — Views 179