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Re: Short-term cap gains on Target Retirement fund?

Sorry for the delay, but thank you both for the replies! Very helpful.
by bortery
Thu Jan 23, 2014 3:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Short-term cap gains on Target Retirement fund?
Replies: 5
Views: 498

Short-term cap gains on Target Retirement fund?

I am looking to invest money in a three-fund portfolio (I’ve already maxed out 401k, IRA, and have a year’s worth of emergency funds). Ideally, I would invest the money and not worry about rebalancing or paying taxes until I am ready to take money out (I have no plans for this money in the near futu...
by bortery
Mon Jan 13, 2014 3:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Short-term cap gains on Target Retirement fund?
Replies: 5
Views: 498

Re: Incorrect total basis on form 8606 for a prior year

Alan S. wrote:Yes, that will work. In the attached letter indicate that although your 2011 8606 was incorrect, this revision has no other affect on your 2011 return.


Wonderful. Once again, thank you for all of your help!
by bortery
Thu Mar 28, 2013 4:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Incorrect total basis on form 8606 for a prior year
Replies: 21
Views: 2503

Re: Incorrect total basis on form 8606 for a prior year

OK, you have it correct now. The amount on line 2 of your 8606 is the amount indicated on the prior year 8606 line 14. If that line 14 is wrong, you can see that the error will just carry forward to later years. With your corrected 8606 forms, you will now have 15,000 of total basis to apply to fut...
by bortery
Thu Mar 28, 2013 2:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Incorrect total basis on form 8606 for a prior year
Replies: 21
Views: 2503

Re: Incorrect total basis on form 8606 for a prior year

Sounds like your 2010 contribution was non deductible as well, so your basis on your 2010 Form 8606 would be the full amount of your contribution (5,000). Same for 2011 except your 2011 8606 starts with the 5,000 basis from 2010 on line 2 and the current year 5,000 on line 1. Total line 3 of 10,000...
by bortery
Tue Mar 26, 2013 2:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Incorrect total basis on form 8606 for a prior year
Replies: 21
Views: 2503

Re: Incorrect total basis on form 8606 for a prior year

It's not clear that you are understanding basis correctly. IRA basis comes from making non deductible contributions to a TIRA account. Form 8606 is cumulative, so first we need to determine if you have a basis at the end of 2009. If your 2010 contribution was not deducted, you would add that 5,000 ...
by bortery
Mon Mar 25, 2013 4:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Incorrect total basis on form 8606 for a prior year
Replies: 21
Views: 2503

Incorrect total basis on form 8606 for a prior year

I contributed the maximum amounts to a traditional IRA for 2010, 2011, and 2012. When filing my 2010 taxes, I correctly put the total basis on form 8606 as $0. When filing my 2011 taxes, I mistakenly put the total basis on form 8606 as $0. I have two questions: 1. What should I put as my total basis...
by bortery
Mon Mar 25, 2013 2:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Incorrect total basis on form 8606 for a prior year
Replies: 21
Views: 2503

Re: IRA Recharacterization when other contributions *were* m

1) Good point. I should have clarified that line 15a should show the converted amount, but NOT 15b if you recharacterized the full conversion (per Form 8606 Inst). 2) The explanatory statement regarding the 2013 rollover of your pre tax TIRA balance to your 401k plan will provide assurance to the I...
by bortery
Tue Mar 19, 2013 3:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA Recharacterization when other contributions *were* made
Replies: 13
Views: 805

Re: IRA Recharacterization when other contributions *were* m

I went through this years ago at Wells Fargo. I just filled out the recharacterization form, then they calculated the share of earnings and asked me which funds to move over to the TIRA. I attached a written explanation of what happened to my tax forms. The IRS did not ask me any questions about it...
by bortery
Tue Mar 19, 2013 3:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA Recharacterization when other contributions *were* made
Replies: 13
Views: 805

Re: IRA Recharacterization when other contributions *were* m

So if I add the other rollover contributions that were made to the Roth during the time the conversion was in the Roth to the Adjusted Opening Balance, do I also have to take into account any earnings that money gained in the Roth? In other words, if I made $10,000 in rollover contributions, do I a...
by bortery
Tue Mar 19, 2013 3:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA Recharacterization when other contributions *were* made
Replies: 13
Views: 805

Re: IRA Recharacterization when other contributions *were* m

Ah, yes, this clears things up. Because Vanguard lists out my accounts as: "Rollover IRA, Traditional IRA, and Roth IRA," I always refer to all three separately. But yes, the rollover IRA actually being a traditional IRA makes sense. And now I understand what you were saying about rolling ...
by bortery
Fri Mar 15, 2013 1:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA Recharacterization when other contributions *were* made
Replies: 13
Views: 805

Re: IRA Recharacterization when other contributions *were* m

Sorry for the bump, but I think my post got a little buried. Did Alan or anyone else have any thoughts on my last few questions? Thanks to all who have replied thus far!
by bortery
Thu Mar 14, 2013 2:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA Recharacterization when other contributions *were* made
Replies: 13
Views: 805

Re: IRA Recharacterization when other contributions *were* m

OK - your overall plan will work as long as you can roll your rollover IRA into your current plan before the end of 2013. 1) The earnings on your recharacterization of the 2012 conversion will be determined by the formula. The formula reflects the earnings generated on all assets in your Roth durin...
by bortery
Wed Mar 13, 2013 1:59 am
 
Forum: Investing - Help with Personal Investments
Topic: IRA Recharacterization when other contributions *were* made
Replies: 13
Views: 805

Re: IRA Recharacterization when other contributions *were* m

Typically, the Roth custodian will do the calculation. But if you want to determine the earnings allocation (NIA) yourself before requesting the recharacterization, the other rollover contributions you made to the Roth during the time your conversion was in the Roth are simply added to your opening...
by bortery
Tue Mar 12, 2013 3:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA Recharacterization when other contributions *were* made
Replies: 13
Views: 805

IRA Recharacterization when other contributions *were* made

In March of 2012, I contributed $5,000 to a non-deductible Traditional IRA. A few days after, I converted it to a Roth IRA. Throughout the year, I made contributions to the Roth IRA by way of putting money into my company's after-tax 401(k) plan* and rolling it over into the very same Roth IRA. Now ...
by bortery
Tue Mar 12, 2013 2:26 am
 
Forum: Investing - Help with Personal Investments
Topic: IRA Recharacterization when other contributions *were* made
Replies: 13
Views: 805

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