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Re: Need help with taxes on TurboTax with backdoor Roth IRA

Your basis is not 0; you should have a basis of $5500 from your contribution this year, or else enter the contribution as non-deductible somewhere. I am making the whole contribution non-deductible, the link says my basis should be 0. Is that not correct? What does Preview 1040 show? Here is the in...
by boglenerd
Tue Feb 11, 2014 10:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need help with taxes on TurboTax with backdoor Roth IRA
Replies: 15
Views: 1512

Re: Need help with taxes on TurboTax with backdoor Roth IRA

FYI, I followed the steps listed in http://thefinancebuff.com/how-to-report-backdoor-roth-in-turbotax.html and I am guessing it added as the income because I added the 1099-R information about TIRA withdrawal, but I did specify that it was immediately converted to the Roth IRA (without any gain). I...
by boglenerd
Tue Feb 11, 2014 1:06 am
 
Forum: Personal Finance (Not Investing)
Topic: Need help with taxes on TurboTax with backdoor Roth IRA
Replies: 15
Views: 1512

Re: Need help with taxes on TurboTax with backdoor Roth IRA

Something does not seem right to me. After all the information are put in correctly (or at least I think so). Turbotax gives me this detailed info for federal taxes for 2013. Total income: Wages $181,847 (this number is coming from W2) Interest & dividend $ 854 Income from Stock $ 187 IRA $ 11,0...
by boglenerd
Tue Feb 11, 2014 12:50 am
 
Forum: Personal Finance (Not Investing)
Topic: Need help with taxes on TurboTax with backdoor Roth IRA
Replies: 15
Views: 1512

Re: Need help with taxes on TurboTax with backdoor Roth IRA

Thanks folks. So I decided to forego the deduction for my wife to keep my life simple. Federal filing looks good. When I am filing the state tax (in this case NJ), it looks like the distribution ($5,500 x 2 = $11,000 reported on 1099-R) is counted as taxable income for NJ and thus increases my tax l...
by boglenerd
Wed Feb 05, 2014 2:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need help with taxes on TurboTax with backdoor Roth IRA
Replies: 15
Views: 1512

Re: Need help with taxes on TurboTax with backdoor Roth IRA

Thank you very much for the prompt response, really appreciate this. So, I understand you are suggesting me to NOT take the deduction to keep it simple and that is what I'll do. Out of curiosity though, can you please explain why taking this deduction makes things more complicated? I mean I funded a...
by boglenerd
Sun Jan 26, 2014 10:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Need help with taxes on TurboTax with backdoor Roth IRA
Replies: 15
Views: 1512

Need help with taxes on TurboTax with backdoor Roth IRA

Hi all, I would spare you the unnecessary details (but willing to give them if they will help you help me in a better way). I am 33 working, my wife is a stay home mom. I have 401(k) plan at work and she does not (because she does not work). I have been contributing to both of our Roth IRA accounts ...
by boglenerd
Sat Jan 25, 2014 1:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need help with taxes on TurboTax with backdoor Roth IRA
Replies: 15
Views: 1512

Re: Need help with personal investing advice

You aren't allowed to put in more than the maximum (which at your age is $5.5K for 2013). If in May 2013 you make a $5.5K non-deductible contribution to a traditional IRA and a couple of days later convert the entire amount to a Roth IRA, any earnings will be negligible. If there is a small gain it...
by boglenerd
Thu Apr 04, 2013 10:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need help with personal investing advice
Replies: 13
Views: 1268

Re: Need help with personal investing advice

Even at age 33 with good earnings its wise to hold bonds, a reasonable asset allocation would be 75/25 stocks/bonds. Benjamin Graham, legendary value investor (and mentor to Warren Buffett) suggested a minimum of 25% in bonds for even the most aggressive investor, Wiki article link: Asset Allocatio...
by boglenerd
Thu Apr 04, 2013 10:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need help with personal investing advice
Replies: 13
Views: 1268

Re: Need help with personal investing advice

You have $1.2MM in Term Life Insurance. Of that, how much is payable to your wife and how much to you? Right now, your wife acts as homemaker and chief daycare to your daughter, should something unfortunate befall your wife, you will want some coverage to provide backup childcare and take care of o...
by boglenerd
Thu Apr 04, 2013 10:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need help with personal investing advice
Replies: 13
Views: 1268

Re: Need help with personal investing advice

You have no bonds (other than the piddly amount in your Roth IRAs). Why? What are you thinking? And with these two funds you're missing US mid/small caps and foreign emerging markets, small caps, and Canada. Your portfolio is incredibly not diversified. What are the options in your 401k plan? The w...
by boglenerd
Thu Apr 04, 2013 8:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Need help with personal investing advice
Replies: 13
Views: 1268

Need help with personal investing advice

Hi all, I am looking for an advice related to investment. Here is the situation Myself: Male, 33, in NY area. Annual income 160k (base) + 50k (bonus). Job is in a software development company, pretty safe with very good benefits. I am guessing a ~10% annual raise (on combined base + bonus) in future...
by boglenerd
Wed Apr 03, 2013 10:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Need help with personal investing advice
Replies: 13
Views: 1268

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