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Re: The Mega Backdoor Roth IRA

It should be noted that Alan's post that's quoted above was from before the IRS clarification statement that came later in the year. http://www.bogleheads.org/forum/viewtopic.php?f=2&t=150575 True, but the IRS clarification statement does not actually say anything about the tax implications of ...
by tioga
Wed Nov 26, 2014 10:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 205
Views: 34315

Re: The Mega Backdoor Roth IRA

I am the one that sets the plan parameters directly with TRowe for my company, so this is great advice. I did request from them to have a post-tax portion be separated from the safe harbor portion, but didn't stipulate a separate account. I will check with them on that. I will also ask for no restr...
by tioga
Wed Nov 26, 2014 6:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 205
Views: 34315

Re: The Mega Backdoor Roth IRA

I posted largely the same material on a different thread - reposting it here because this thread is more active. You can see from the Kitces blog that the IRS has not really clarified this issue, particularly with respect to Sec 402(c)(2). Personally, I agree with the Kaye Thomas strategies at Fair...
by tioga
Wed Nov 26, 2014 6:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 205
Views: 34315

Re: 401(k) In-Plan Roth Conversion of After-Tax Money

You can see from the Kitces blog that the IRS has not really clarified this issue, particularly with respect to Sec 402(c)(2). Personally, I agree with the Kaye Thomas strategies at Fairmark. But lets be pragmatic here. Ever since the IRS released Notice 2009-68 and these questions arose, employees...
by tioga
Wed Nov 26, 2014 5:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401(k) In-Plan Roth Conversion of After-Tax Money
Replies: 78
Views: 7208

Re: Shiller PE10 nearing nosebleed territory?

My answer to Keith's question is Yes, I would do more than just rebalance. Some call it 'tactical allocation' or 'market timing' but I just call it 'overrebalancing' as in, if my target stock/bond ratio is 60/40 and I have drifted to 65/35 because of stock gains and simultaneously PE10 goes to 26 (...
by tioga
Wed Sep 25, 2013 8:01 pm
 
Forum: Investing - Theory, News & General
Topic: Shiller PE10 nearing nosebleed territory?
Replies: 290
Views: 26055

Re: IRA rollover 1-year waiting period affects Roth conversi

My guess then is that you can't do a TIRA to Roth conversion that is not trustee-to-trustee within a yr of a previous rollover. From Pub 17 (emphasis mine): Conversions You can convert a traditional IRA to a Roth IRA. The conversion is treated as a rollover, regardless of the conversion method used...
by tioga
Sun Jan 27, 2013 11:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRA rollover 1-year waiting period affects Roth conversions?
Replies: 11
Views: 1009

IRA rollover 1-year waiting period affects Roth conversions?

Publication 590 states that a rollover from one IRA to another is subject to a waiting period. Specifically, on page 23, it states: "Waiting period between rollovers. Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you cannot, within a 1-year per...
by tioga
Sat Jan 26, 2013 11:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRA rollover 1-year waiting period affects Roth conversions?
Replies: 11
Views: 1009

Re: After tax 401(k) to Roth IRA law?

[quote="investor1"][quote="retiredjg"]Alan S. posted this link in a different thread. I think it has the answers to your original questions - in the Executive Summary. http://retirementlc.com/documents/20120528ReportingDistributionsofAfter-TaxContributions.pdf[/quote] Thanks! ......
by tioga
Mon Jan 21, 2013 9:22 am
 
Forum: Investing - Theory, News & General
Topic: After tax 401(k) to Roth IRA law?
Replies: 38
Views: 4014

Re: After tax 401(k) to Roth IRA law?

FinancialDave, there are two links posted by Alan S and retiredjg that shed much light on the rollover of 401(k) after-tax contributions+earnings into a Roth IRA. These links are: http://www.texastaxsection.org/LinkClick.aspx?fileticket=4uCK%2F6VP2gQ%3D&tabid=80 http://retirementlc.com/documents...
by tioga
Mon Jan 21, 2013 12:09 am
 
Forum: Investing - Theory, News & General
Topic: After tax 401(k) to Roth IRA law?
Replies: 38
Views: 4014

Re: Extra $32,500 in Roth IRA - too good to be true?

Alan - thank you! I think I get it now. In the eventuality that there are earnings in box 2a, the taxpayer would have to pay the regular income taxes and the 10% penalty for early withdrawal on them - right? Your point on what happens post separation is very interesting. My plan (is this true for mo...
by tioga
Sun Dec 16, 2012 10:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Extra $32,500 in Roth IRA - too good to be true?
Replies: 159
Views: 37483

Re: Extra $32,500 in Roth IRA - too good to be true?

Alan S, and others: I have gotten myself very confused on this topic. On the one hand, it looks like several Bogleheads are performing rollovers of their after-tax 401k dollars into ROTH IRAs. On the other hand, the Fairmark article (http://www.fairmark.com/rothira/09030801-401k-basis.htm) points ou...
by tioga
Sun Dec 16, 2012 9:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Extra $32,500 in Roth IRA - too good to be true?
Replies: 159
Views: 37483

Re: Sale of ESPP stock

The calculations are tedious and depend on whether you have a qualifying or a non-qualifying disposition.
The following has a pretty good explanation of what you have to do:
http://fairmark.com/execcomp/espp/dispositions.htm

Good luck
by tioga
Mon Feb 06, 2012 1:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Sale of ESPP stock
Replies: 1
Views: 198

Re: Help! I am getting the itch to chase performance again

I have a friend who has exactly the same problem you have, (albeit with a significantly smaller savings amount per year and assets). Reading the OP, a couple of things leap out at me: 1) You state your savings were 200K last year which amounted to 80% of your income. Are you sure this is correct? Af...
by tioga
Sun Feb 05, 2012 2:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help! I am getting the itch to chase performance again
Replies: 28
Views: 1846

Re: Advisor Service for Managing Parents' Portfolio?

Two points: 1. Personally, I like the "insurance" of having an investment advisor who can take care of my family's finances should something happen to me. 2. LadyGeek is 100% correct. Ultimately, you are the ONE person who has their best interests at heart. But these two do not have to be ...
by tioga
Sat Feb 04, 2012 12:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Advisor Service for Managing Parents' Portfolio?
Replies: 17
Views: 859

Re: Should You Calculate Your Rate of Return!? NO!

[quote]For those who insist that they need to calculate it, my question then is: How do you plan to use this number once you calculate it?[/quote] I calculate this number for a couple of reasons. It acts as a sanity check against a set of benchmark(s). It helps me determine whether I am on track for...
by tioga
Sun Jan 22, 2012 2:02 pm
 
Forum: Investing - Theory, News & General
Topic: Should You Calculate Your Rate of Return!? NO!
Replies: 95
Views: 5937

Re: Helping My Employer With Our 401K

Can anyone comment on whether their retirement plans include DFA funds? I've heard that some companies do offer DFA funds.
by tioga
Fri Jan 20, 2012 6:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Helping My Employer With Our 401K
Replies: 25
Views: 2193

Re: How to report I-bonds interest annually?

So what happens if you report interest on an accrual basis but then end up using the redeemed funds for an exempt purpose (such as higher education)?
by tioga
Fri Jan 20, 2012 6:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to report I-bonds interest annually?
Replies: 25
Views: 1586

Re: Buying electronic I-Bonds in January 2012

Not only is the tax on interest deferred until when the bond is redeemed, it is also exempted if the proceeds are used for higher education. There are many subtleties in the rules (income exclusions), but this is definitely worth considering as the fixed income component of a college savings plan. h...
by tioga
Thu Jan 12, 2012 7:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buying electronic I-Bonds in January 2012
Replies: 52
Views: 5000

So here is something that has been bothering me while reading this thread. As many here have indicated, a true Boglehead should (1) identify their risk tolerance, (2) pick an asset allocation, and (3) rebalance periodically so as to meet that asset allocation. But isn't rebalancing to the chosen ass...
by tioga
Tue Jun 07, 2011 1:32 pm
 
Forum: Investing - Theory, News & General
Topic: Valuation-based market timing with PE10 can improve returns?
Replies: 675
Views: 89861

Finally, I did not find in the paper where it details the 50/50 approach. Since it is the basis of comparison for the thesis, is it not meaningful to know whether the 50/50 allocation is rebalanced daily, weekly, annually, or bi-annually? (newbie, so system does not let me paste link to the paper) ...
by tioga
Tue Jun 07, 2011 10:40 am
 
Forum: Investing - Theory, News & General
Topic: Valuation-based market timing with PE10 can improve returns?
Replies: 675
Views: 89861

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