Adjust cost basis for fixed income securities?
Is there any reason we should have our custodian amortize and accrete cost basis for fixed income securities in non-taxable accounts? They are required to do so in taxable accounts but are asking if we’d like it done for our non-taxable accounts. Pretty sure it’s not necessary but just want to make sure I’m not missing anything. Thank you
Permalink Submitted by Alan - IRA critic on Tue, 2025-06-10 18:14
This is not a factor for tax deferred accounts. For example, in an IRA the only basis that matters is if you have made prior non deductible contributions that should have been reported. There is no tracked basis for individual securities.