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Calculating RMDs

I am studying IRS Publication 590, pages 35-36 and am confused. Let's assume the taxpayer turns 80 in October 2014, to avoid any discussion of when RMDs become due. And let's assume the taxpayer's spouse is either 95 or 65 - 15 years difference one direction or the other. The clear part is that the ...
by kate1234
Sat Oct 11, 2014 4:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Calculating RMDs
Replies: 14
Views: 1434

Re: Master thread for Washington DC Area Bogleheads

So bottom line, how many dollars are you estimating this costs?
by kate1234
Wed Sep 24, 2014 10:57 am
 
Forum: Local Chapters and Bogleheads Community
Topic: Master thread for Washington DC Area Bogleheads
Replies: 11
Views: 1681

Re: Car did not start: To dispose? How?

Hi Victoria, I can't answer most of your questions but I had good experience with donating my car to Salvation Army. They don't care if the car runs (but they do ask you I think because they maybe send a different kind of truck depending). They pick it up, then send it off to get it appraised, then ...
by kate1234
Wed Jul 09, 2014 6:32 pm
 
Forum: Personal Consumer Issues
Topic: Car did not start: To dispose? How?
Replies: 70
Views: 6169

Re: RMDs from TSP and traditional IRA

If I recall correctly from when I did a rollover that went through my own bank account a couple of years ago (rather than trustee to trustee), Vanguard just asked me whether this was qualified rollover money and I said yes. I didn't have to prove anything to anybody. Ultimately it was between me and...
by kate1234
Wed May 14, 2014 7:13 am
 
Forum: Investing - Help with Personal Investments
Topic: RMDs from TSP and traditional IRA
Replies: 55
Views: 3258

Re: RMDs from TSP and traditional IRA

Bless you bless you bless you. You answer not only makes sense but you provided supporting documentation!! When I first started inquiring here at bogleheads I was met with some pretty hostile remarks from people who were, um, misreading the question. So I just stopped following up. The hostility was...
by kate1234
Thu May 08, 2014 7:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: RMDs from TSP and traditional IRA
Replies: 55
Views: 3258

Re: RMDs from TSP and traditional IRA

I am not an accountant and I am not the IRS, so anything I say here is just my logic, nothing official. I do know the general rule with the IRS is that one cannot roll one's RMDs over into a retirement account. Where we in this thread are taking issue is that TSP is calling a distribution an RMD whe...
by kate1234
Thu May 08, 2014 3:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: RMDs from TSP and traditional IRA
Replies: 55
Views: 3258

Re: RMDs from TSP and traditional IRA

This would enable keeping more of your assets in the TSP, but if that were the goal you would roll the entire TIRA into the TSP, not just a portion. The general game plan is that the bond portion of my asset allocation I keep in the G fund. The equity portion of the asset allocation could of course...
by kate1234
Wed May 07, 2014 1:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: RMDs from TSP and traditional IRA
Replies: 55
Views: 3258

Re: RMDs from TSP and traditional IRA

I'm the original poster and this is pretty interesting. It makes me wonder if a circular set of transfers might be possible: 1) One rolls some of the tIRA into the TSP, custodian to custodian (if one wants). 2) TSP distributes monthly installments of RMD, but uses the Uniform Table rather than the J...
by kate1234
Tue May 06, 2014 4:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: RMDs from TSP and traditional IRA
Replies: 55
Views: 3258

Re: Inheriting money, then leaving it to your kids

I'm noodling about asset allocation and working with William Bernstein's idea of "When you've won the game, why keep playing it?" So first we follow his recommendation of having enough money invested in very safe assets - TIPS, short-term treasuries, etc - to cover our residual living expe...
by kate1234
Tue Feb 25, 2014 10:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inheriting money, then leaving it to your kids
Replies: 23
Views: 2086

Inheriting money, then leaving it to your kids

There isn't a right and wrong answer on this; I just wanted to see how people felt about enjoying money they have inherited versus being its steward for future generations.
by kate1234
Tue Feb 25, 2014 8:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Inheriting money, then leaving it to your kids
Replies: 23
Views: 2086

Business Use of Home/Schedule D

I run a business from my home and have Schedule C income and use Form 8829 Business Use of Home. This year I had some short term capital gains reported on Schedule D that were not related to the sources of income I report on Schedule C. I notice in the instructions for line 8 of Form 8829 that one c...
by kate1234
Mon Feb 24, 2014 8:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Business Use of Home/Schedule D
Replies: 2
Views: 158

Re: Cost basis relevant to Roth conversion?

Okay so since I don't have an employer plan then I won't run into the deductible vs non-deductible problem, right? That would explain why I wasn't taking pains to keep track of it.
by kate1234
Mon Feb 10, 2014 1:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cost basis relevant to Roth conversion?
Replies: 4
Views: 245

Cost basis relevant to Roth conversion?

A recent article I read said: "Because cost basis factors into the taxes due upon conversion, making a lump-sum investment to the Traditional IRA before converting will tend to be less cumbersome from an accounting paper-trail perspective than dollar-cost averaging." The article was here: ...
by kate1234
Mon Feb 10, 2014 1:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cost basis relevant to Roth conversion?
Replies: 4
Views: 245

Re: RMDs from TSP and traditional IRA

Not sure why the link didn't work. Try this:

"http://www.irs.gov/Retirement-Plans/RMD-Comparison-Chart-(IRAs-vs.-Defined-Contribution-Plans)"

I put quotes around it which took it out of an automatic link, so you'll have to copy and paste; but it works.
by kate1234
Sat Nov 09, 2013 1:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: RMDs from TSP and traditional IRA
Replies: 55
Views: 3258

Re: RMDs from TSP and traditional IRA

RMDs from 401(k)s are different than RMDs from IRAs. They have different rules. Can you please point me to the IRS literature that explains this? The only thing I can find is here: http://www.irs.gov/Retirement-Plans/RMD-Comparison-Chart-(IRAs-vs.-Defined-Contribution-Plans) which seems to say the ...
by kate1234
Sat Nov 09, 2013 1:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: RMDs from TSP and traditional IRA
Replies: 55
Views: 3258

Re: RMDs from TSP and traditional IRA

In our case the excess distribution will be about $2,000 in the first year.
by kate1234
Sat Nov 09, 2013 11:32 am
 
Forum: Investing - Help with Personal Investments
Topic: RMDs from TSP and traditional IRA
Replies: 55
Views: 3258

Re: RMDs from TSP and traditional IRA

You are correct that it is table III not table I as I had said. I'll run some numbers to see what the dollar amounts are likely to be.
by kate1234
Sat Nov 09, 2013 11:23 am
 
Forum: Investing - Help with Personal Investments
Topic: RMDs from TSP and traditional IRA
Replies: 55
Views: 3258

Re: RMDs from TSP and traditional IRA

Where I get hung up then is that for our family we would use Table II under Publication 590, the Joint Life Expectancy Table, to calculate the RMD, which requires a lower amount to be distributed each year. But TSP distributes according to the Single Life Expectancy Table, or Table I. Our plan was t...
by kate1234
Sat Nov 09, 2013 9:47 am
 
Forum: Investing - Help with Personal Investments
Topic: RMDs from TSP and traditional IRA
Replies: 55
Views: 3258

RMDs from TSP and traditional IRA

We have investments in both TSP and a traditional IRA. I recently ran across an article on Morningstar that said: "Just bear in mind that you can't combine different account types when taking RMDs--for example, you can't take RMDs from your IRA while leaving your 401(k) assets in place." T...
by kate1234
Sat Nov 09, 2013 8:47 am
 
Forum: Investing - Help with Personal Investments
Topic: RMDs from TSP and traditional IRA
Replies: 55
Views: 3258

Re: Same/Similar Allocation Plan for Spouses if Age Disparit

We struggled with this too and ultimately came up with a single asset allocation that made sense for the younger spouse; that's the timeline you've got to have covered.
by kate1234
Wed Aug 28, 2013 11:03 am
 
Forum: Investing - Theory, News & General
Topic: Same/Similar Allocation Plan for Spouses if Age Disparity?
Replies: 5
Views: 893

Re: Who manages your finances? Him/Her/Both?

We were both independent adults when we got married so had to find a compromise. He pays the bills and keeps the check register. She enters everything into Quicken, keeps the records, and does the tax returns. He has read all the investing books and hated every minute; she has read fewer but is who ...
by kate1234
Tue Aug 13, 2013 7:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Who manages your finances? Him/Her/Both?
Replies: 58
Views: 2829

Thinking of dropping life insurance policy

I am 15 years into a 30-year term life insurance policy and am thinking about stopping payments on it. Child is 16, spouse is retired, and I earn a little money (maybe $15,000 per year) just for entertainment. Due to an inheritance we have enough assets that we are set; my husband and son just would...
by kate1234
Tue Aug 13, 2013 7:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Thinking of dropping life insurance policy
Replies: 14
Views: 933

M* Article on GNMAs/Bond Diversification

I read the article about GNMAs on Morningstar with interest. For me the two big takeaways were 1) don't be afraid of them if you don't need the money within the next five years, and 2) bond diversification is a good thing. I manage my son's inherited IRA which I expect to last his lifetime - maybe 6...
by kate1234
Mon Aug 05, 2013 9:17 am
 
Forum: Investing - Help with Personal Investments
Topic: M* Article on GNMAs/Bond Diversification
Replies: 1
Views: 252

Re: asset allocation/asset placement & 529s

most states limit the tax credit/deduction to a relatively small amount, say $10k annually at most (often less). Ours, Virginia, can be tricky but they let you take $4000 per taxpayer, per kid, and per account. So if we set up multiple accounts we can get more than the base $4000 deduction. And nex...
by kate1234
Thu Aug 01, 2013 5:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: asset allocation/asset placement & 529s
Replies: 11
Views: 487

Re: asset allocation/asset placement & 529s

This thread has two components now: For the tax credit component, let's put some real numbers to this: our state school charges about $12,000 per year for tuition and about $12,000 for room & board, for a total of $24,000. So in theory I would contribute $20,000 to the 529 and would pay the firs...
by kate1234
Thu Aug 01, 2013 5:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: asset allocation/asset placement & 529s
Replies: 11
Views: 487

Re: asset allocation/asset placement & 529s

if you have a qualified educational expense, you can either take the money from a 529 federal tax free OR take a credit against your taxes (subject to certain income limits) by using the American Opportunity Tax Credit or the Lifetime Learning Credit BUT you can't do both. In other words, if you ha...
by kate1234
Thu Aug 01, 2013 1:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: asset allocation/asset placement & 529s
Replies: 11
Views: 487

Re: asset allocation/asset placement & 529s

If you want to launder because of a state tax credit/deduction, and that is worth more to you than various educational credits, then go for it. Could you please explain this part a little more? Yes I want that state tax deduction that my state allows. Tell me more about how educational credits figu...
by kate1234
Thu Aug 01, 2013 1:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: asset allocation/asset placement & 529s
Replies: 11
Views: 487

asset allocation/asset placement & 529s

We've got our asset allocation figured out, then went through the asset placement charts to put the different assets in the accounts that best suited them. We are old enough that our IRAs can be accessed without penalty and that is where we have placed our college savings. Now we have new money in a...
by kate1234
Thu Aug 01, 2013 10:07 am
 
Forum: Investing - Help with Personal Investments
Topic: asset allocation/asset placement & 529s
Replies: 11
Views: 487

RMD once a month or once a year?

If one didn't need the RMD for living expenses, would it generally be more advantageous to withdraw once a month or once a year? Initially I thought once a month to spread the risk of market rising and falling. But then I thought once a year in December to allow it to grow (or not) tax protected for...
by kate1234
Tue Jul 23, 2013 12:24 pm
 
Forum: Investing - Theory, News & General
Topic: RMD once a month or once a year?
Replies: 15
Views: 1727

Re: Virginia 529 deduction after age 70

I have the answer. I wrote to the Virginia Department of Taxation and here is what they said: "A taxpayer age 70 or older on or before December 31 of the taxable year is not required to deduct the full amount paid to the Virginia College Savings Plan during the year. "He may carry forward ...
by kate1234
Mon Jul 22, 2013 12:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Virginia 529 deduction after age 70
Replies: 1
Views: 301

Virginia 529 deduction after age 70

Virginia's Code 58.1-322(D)(7)(c) says: c. A purchaser of a prepaid tuition contract or contributor to a savings trust account who has attained age 70 shall not be subject to the limitation that the amount of the deduction not exceed $4,000 per prepaid tuition contract or savings trust account in an...
by kate1234
Tue Jul 16, 2013 6:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Virginia 529 deduction after age 70
Replies: 1
Views: 301

Re: Taxation of Social Security Benefits

For me, it's a better deal to collect spousal at FRA then switch to own at 70, than it would be to start collecting spousal at 62 with its reduced benefit and having that carry through permanently.
by kate1234
Fri Jul 05, 2013 8:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taxation of Social Security Benefits
Replies: 12
Views: 1098

Re: Taxation of Social Security Benefits

Spouse cannot switch to "own" maximum SS benefits at age 70 if Spouse begins Spousal support prior to FRA (full retirement age, probably 66 or 67 depending upon birth year). RM Oh gosh that does ring a bell and I have it wrong in my master spreadsheet. My notes also say the spousal benefi...
by kate1234
Fri Jul 05, 2013 8:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taxation of Social Security Benefits
Replies: 12
Views: 1098

Re: Money market/CD decisions

Anyway if anybody has recommendations about which of these I should choose (or stay away from) I'd appreciate it. CIT bank Discover bank Barclays GE Capital Bank (not Retail Bank) I've been using this site to do most of the comparisons. http://www.depositaccounts.com/ I too used depositaccounts.com...
by kate1234
Fri Jul 05, 2013 7:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Money market/CD decisions
Replies: 19
Views: 2025

Re: Taxation of Social Security Benefits

You wrote of "RMDs in the future", so you are not age 70.5 yet. I suppose you have also considered not taking SS benefits until age 70.5? Right. H gets to 70.5 first and will start taking then. Later W gets to 62 and will start taking spousal; then W will switch to her own at 70.5. Hence ...
by kate1234
Fri Jul 05, 2013 7:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taxation of Social Security Benefits
Replies: 12
Views: 1098

Re: Taxation of Social Security Benefits

Well I crunched the numbers $1000 at a time for all three time periods and it was a real eye opener. Really looking at what happens to the marginal tax rate up until SS is taxed at 85% is pretty obnoxious at nearly 30%. The thing that surprised me is that once I get past the 85% mark, my tax rate st...
by kate1234
Fri Jul 05, 2013 7:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taxation of Social Security Benefits
Replies: 12
Views: 1098

Taxation of Social Security Benefits

Every time I read the rules on what percentage of social security benefits gets taxed my eyes roll up backwards. I do, however, have TurboTax and can enter in sample numbers to see what results it gives me. I am trying to optimize the amount of RMDs in the future by converting some of the traditiona...
by kate1234
Fri Jul 05, 2013 2:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taxation of Social Security Benefits
Replies: 12
Views: 1098

Re: G Fund/Placing Cash Needs in a Tax-Advantaged Account

Sorry, I probably wasn't clear. We are in retirement so there are no new contributions coming in from income. I am talking about converting maybe $100,000 from our taxable account into a 529 (all in one lump sum, and filing the gift tax return). The kid is a rising junior so we've got just two years...
by kate1234
Fri Jul 05, 2013 11:19 am
 
Forum: Investing - Help with Personal Investments
Topic: G Fund/Placing Cash Needs in a Tax-Advantaged Account
Replies: 8
Views: 1177

Re: G Fund/Placing Cash Needs in a Tax-Advantaged Account

Thanks for the answers. Currently we are set up with all bonds in the G fund and the taxable account with all equities. If we shifted some of that taxable account over to a 529 Plan would the effect be the same? If the 529 were loaded with equities that had dropped by a huge amount when they were ne...
by kate1234
Fri Jul 05, 2013 10:18 am
 
Forum: Investing - Help with Personal Investments
Topic: G Fund/Placing Cash Needs in a Tax-Advantaged Account
Replies: 8
Views: 1177

G Fund/Placing Cash Needs in a Tax-Advantaged Account

I followed one of Grabiner's links today from a query about emergency funds that linked to the wiki about Placing Cash Needs in a Tax-Advantaged Account and am pondering how it might apply to our family. In our case we are in retirement so these are daily living expenses we are talking about plus bi...
by kate1234
Mon Jul 01, 2013 8:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: G Fund/Placing Cash Needs in a Tax-Advantaged Account
Replies: 8
Views: 1177

Re: iPad mini-Password Visibility

Is this just for a single password? Or is it for multiple sites during a single session? If the latter, then consider using 1Password app (well, I recommend it regardless). Although 1Password also reveals the password characters briefly when you open it, once it is open all passwords are pasted in a...
by kate1234
Mon Jul 01, 2013 1:48 pm
 
Forum: Personal Consumer Issues
Topic: iPad mini-Password Visibility
Replies: 33
Views: 3891

Re: Asset allocation for inherited IRA

You imply that your son will be using the RMDs for consumption. But note that many people simply reinvest inherited IRA RMDs -- either doing so directly or doing so indirectly by taking advantage of the influx to increase savings in other instruments, such as increasing 401K contributions, etc. If ...
by kate1234
Sun Jun 23, 2013 7:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset allocation for inherited IRA
Replies: 3
Views: 200

Asset allocation for inherited IRA

My 16-year-old has a 100K inherited IRA on which he is taking RMDs which are currently 1/66.9 of the total. The financial goal for this IRA is for it to last his lifetime and to only take out the RMDs. I am trying to wrap my head around how having this very long time frame, but combined with the RMD...
by kate1234
Sun Jun 23, 2013 4:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset allocation for inherited IRA
Replies: 3
Views: 200

investing a windfall

We knew the money was coming and have planned for it. We've got an asset allocation we're happy with that includes a mix of equities, bonds, cash, and real estate. So following the basic bogleheads advice would mean (I think) Deploy! But gosh, the market is at an all-time high and, well, the notion ...
by kate1234
Wed Mar 06, 2013 3:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: investing a windfall
Replies: 9
Views: 781

Re: Sale of LLC member share

This is a case where four siblings inherited the property. The plan is for all four to be members of the LLC and to transfer all beneficiaries' shares into it, probably directly from the decedent's trust. I have asked this question both of our lawyer and our accountant, and invited those two to talk...
by kate1234
Mon Mar 04, 2013 3:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Sale of LLC member share
Replies: 2
Views: 206

Sale of LLC member share

I am contemplating setting up an LLC in California with multiple members for which the primary asset would be commercial real estate. If one of the members then sells his share in the LLC to the other members would that incur a capital gain? Why or why not?
by kate1234
Mon Mar 04, 2013 2:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Sale of LLC member share
Replies: 2
Views: 206

Re: Mortgage during retirement

Would paying off your 365K mortgage dramatically impact your liquidity? If not, I'd suggest paying it off. Why pay 15K in mortgage interest to save 4K in Fed and State tax? For the moment we need as much liquidity as we can get - we've got a 14-year-old and need to be ready for whatever that brings...
by kate1234
Thu Mar 22, 2012 4:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage during retirement
Replies: 21
Views: 1110

Re: Mortgage during retirement

A little under 3%. Can you earn >3%, tax free, risk free? (If so please tell me where so I can buy some). Thanks for running the math. Better than that now? No. But of course in ten years there is no telling what will have happened to the economy. So I'm putting the calculations in the back of my h...
by kate1234
Thu Mar 22, 2012 4:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage during retirement
Replies: 21
Views: 1110
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