minnesotamoney wrote:If you do wait until April 1 of 2014, then you will have two (2) RMDs recorded as income on your 2014 tax return, and that could possibly result in additional tax liability if those TWO withdrawals bump you up into a higher tax bracket in 2014 or if doing so makes more of your Social Security income taxable.
Alan S. wrote:Vanguard and other IRA custodians report a Roth conversion identical to a TIRA distribution. The RMD is also reported the same as any other TIRA distribution.
That means that if you take your RMD and then convert an additional amount, you will just get a single 1099R reporting the total. You put the total on line 15a and 15b because both are taxable.
On the other end of the conversion, the Roth custodian will issue a 5498 reporting receipt of a conversion amount, and the conversion portion is also reported on Form 8606 with the result going to the line 15b total on Form 1040.
If you instead kept the cash for both distributions, there would be no conversion on Form 8606 and no 5498, but your taxable amount would be the same.
Calm Man wrote:
Alan 15b says "taxable amount of IRA distribution". As you indicate, you know that from the 1099? As I recall I often get the forms like 5498 and 8606 months later than the 1099s as I file for my parents, and they don't affect tax reporting, right? (These are the few forms that I never care about, right?)
Alan S. wrote: For qualified plans, the plan will break out the taxable amount and show it in Box 2a.
CalPERS uses the Simplified Safe Harbor Method tables in Internal Revenue Service (IRS) Publication 575, to determine the tax-free portion of your allowance. For retirements effective on or after January 1, 1998, use one of the following tables to determine the number of your lifetime payments. Divide the amount of your “Taxed Contributions” by the “Number of Lifetime Payments” to get your monthly tax-free allowance amount.
￼Combined Ages Number of
of Annuitants Lifetime Payments
110 or less 410
￼141 or more 210
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