And a potential upside of the extended holding period is that it would lower your tax obligation if you sold the replacement security less than a year after. (Normally, short-term capital gains from investments held for less than a year are taxed at the higher regular income tax rate, while...
to clear the security lockup period. This is a good reason to plan in advance by setting up an account when youaren’trushing to buy a house. But the deal still worked out, and I’m even more prepared for next time.