Question:
I have several stock investments in my solo 401k plan that have not panned out well. If I sell these stocks can I treat it as a loss?
ANSWER:
In short, no. A retirement plan including a self-directed solo 401k is a tax sheltered account; meaning, it receives tax sheltered status until distributions commence. As a result tax-loss harvesting, which is the practice of selling stock investments that are down in order to realize a capital loss, which may be used to offset taxes in the current tax year or carried forward to use in future years, does not apply to stock investments held in a solo 401k plan that are then sold at a loss.
