Q: What replacement options do I have when harvesting?
A: Advisors can choose to either hold the proceeds in cash or purchase a replacement security for each harvested symbol.
Q: How does SMArtX prevent wash sales?
A: When a security is harvested, SMArtX applies an exclusion across the Account Group that prevents the same or substantially identical security from being repurchased for 31 days.
Q: What is the “Reopen After Wash Sale Period” option?
A: This option automatically removes the exclusion 31 days after the harvest is executed, allowing the position to be repurchased or realigned.
Q: What happens if I don’t select “Reopen After Wash Sale Period”?
A: The replacement instruction and exclusion remain in place until the advisor manually reverses the harvest or removes the exclusion.
Q: What happens when I reopen a position harvested from a model?
A: When the wash sale period expires, exclusions are removed and the account will automatically trade to realign with the model.
Q: What happens when I reopen a position that is advisor-managed?
A: The advisor must submit the account through the rebalancer to realign the portfolio with its target allocations.