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Re: Hiring tax pro - File extension vs amending

Thanks, everyone.

I think I will go ahead and file an extension and find a good CPA to help me after April 15 to avoid their stress and last-minute craziness.
by sksavers2
Mon Apr 01, 2013 7:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hiring tax pro - File extension vs amending
Replies: 8
Views: 735

Hiring tax pro - File extension vs amending

I'm finally throwing in the towel. Our taxes have gotten complicated enough that I think I'm being penny-wise, pound foolish insisting on doing them myself. I've actually done them on TurboTax already but I'm questioning myself on several points and would just feel better having a professional's ble...
by sksavers2
Sun Mar 31, 2013 9:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hiring tax pro - File extension vs amending
Replies: 8
Views: 735

Re: Backdoor Roth recharacterization / tax problems

Scenario 2 is not possible because the recharacterization deadline for a 2011 conversion was 10/15/2012. Therefore, for 2011 all you can do is Scenario #1, ie. amend your 2011 return and correctly complete Form 8606 reflecting the rollover IRA balance. Unfortuneately, as you indicated this will pro...
by sksavers2
Thu Mar 14, 2013 9:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth recharacterization / tax problems
Replies: 2
Views: 477

Backdoor Roth recharacterization / tax problems

Hoping some of you CPAs or other tax-savvy folks can help me. A few months ago, I posted a portfolio review in which the most important and urgent piece of advice that came out was how I dealt with doing a backdoor Roth. I think I flubbed it in 2011 and am seeking advice about how to fix it. Here is...
by sksavers2
Tue Mar 12, 2013 10:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth recharacterization / tax problems
Replies: 2
Views: 477

Re: Review our portfolio - young family (updates from Newlyw

... there is a good chance we will be selling the house and moving again next year or the year after, so ... investing in paying it down is not a good idea ... This actually argues more in favor of putting all of your near term future taxable savings towards the mortgage. Any money that is used to ...
by sksavers2
Thu Jan 03, 2013 10:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Review our portfolio - young family (updates from Newlywed!)
Replies: 25
Views: 1621

Re: Review our portfolio - young family (updates from Newlyw

Example 2: 1. You have a Rollover IRA of $105,000.00 (all pre-tax) at the beginning of the year. This is the only non-Roth IRA you have. (For Form 8606 purposes a Rollover IRA is the same as a Traditional IRA.) 2. In January you make a $5,000.00 non-deductible contribution to a new Traditional IRA....
by sksavers2
Thu Jan 03, 2013 10:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Review our portfolio - young family (updates from Newlywed!)
Replies: 25
Views: 1621

Re: Review our portfolio - young family (updates from Newlyw

I, for one, just want to thank you for providing an update. It isn't often that people come back on the board to discuss how they've implemented some of the advice they've received. Kudos to you and best wishes with this next phase. :beer Thanks, 2stepsbehind. We've gotten such great advice here (m...
by sksavers2
Thu Jan 03, 2013 10:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Review our portfolio - young family (updates from Newlywed!)
Replies: 25
Views: 1621

Re: Review our portfolio - young family (updates from Newlyw

Using round numbers, if you make a non-deductible contribution of $5,000 and convert it (assuming it's the only basis), and at the end of the year have $105,000 in non-Roth IRAs, then 95.5% (105/110) is taxable. If at the end of the year you have $86,000 in non-Roths then 94.5% (86/91) is taxable, ...
by sksavers2
Mon Dec 31, 2012 3:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Review our portfolio - young family (updates from Newlywed!)
Replies: 25
Views: 1621

Re: Review our portfolio - young family (updates from Newlyw

... there is a good chance we will be selling the house and moving again next year or the year after, so ... investing in paying it down is not a good idea ... This actually argues more in favor of putting all of your near term future taxable savings towards the mortgage. Any money that is used to ...
by sksavers2
Mon Dec 31, 2012 3:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Review our portfolio - young family (updates from Newlywed!)
Replies: 25
Views: 1621

Re: Review our portfolio - young family (updates from Newlyw

Agreed. In the lower end of the AMT the effective marginal rate is 32.5% and state tax is not deductible, so your marginal rate could be 32.5% + 7.95% = 40.5%. Throw in payroll taxes and you are losing over 45% of the lower earning spouse's pay to taxes. Yes. Last year and I think 2010 we paid AMT ...
by sksavers2
Mon Dec 31, 2012 3:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Review our portfolio - young family (updates from Newlywed!)
Replies: 25
Views: 1621

Re: Review our portfolio - young family (updates from Newlyw

At the time we made the initial rollover, there were no gains (I rolled over with losses). The same year of the rollover was the first time I did backdoor Roth from a $5k contribution to a traditional nondeductible IRA. So that year I would have owed no taxes on the conversion because there was no ...
by sksavers2
Sun Dec 30, 2012 11:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Review our portfolio - young family (updates from Newlywed!)
Replies: 25
Views: 1621

Re: Review our portfolio - young family (updates from Newlyw

A few things here don't make sense to me, but I'm reverse engineering your numbers to infer your income, so I could be wrong.[list][*]To be in the 33% bracket you would have to have gross income over about $290,000. That would make your income (30% of family income) at least $90,000 and his at leas...
by sksavers2
Sun Dec 30, 2012 11:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Review our portfolio - young family (updates from Newlywed!)
Replies: 25
Views: 1621

Re: Review our portfolio - young family (updates from Newlyw

duckie wrote: The IRS considers all non-Roth IRAs to be one big fat IRA. SEP-IRAs, SIMPLE-IRAs, Traditional IRAs (with or without non-deductible contributions), and Rollover IRAs (which are considered the same as Traditional IRAs for this purpose) are all included in the mix. Mingling isn't the issu...
by sksavers2
Sun Dec 30, 2012 5:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Review our portfolio - young family (updates from Newlywed!)
Replies: 25
Views: 1621

Re: Review our portfolio - young family (updates from Newlyw

Thanks for the feedback so far! (I KNOW about the company stock...need to get DH on board...grrrr.) I think we are doing the IRA backdoor correctly, but it is also debatable. My rollover is a completely different account and has never been mingled with my regular IRA (traditional or Roth), so I thin...
by sksavers2
Sun Dec 30, 2012 12:54 am
 
Forum: Investing - Help with Personal Investments
Topic: Review our portfolio - young family (updates from Newlywed!)
Replies: 25
Views: 1621

Review our portfolio - young family (updates from Newlywed!)

Hi Bogleheads! We got great advice from this group 5 years ago, when our situation was quite different (newlywed DINKS! http://www.bogleheads.org/forum/viewtopic.php?f=1&t=14328) A couple of years ago, we hit big financial milestone and wanted opinions about whether we could stop aggressively sa...
by sksavers2
Sat Dec 29, 2012 10:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Review our portfolio - young family (updates from Newlywed!)
Replies: 25
Views: 1621

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