Search found 6768 matches

by Alan S.
Sat Aug 19, 2017 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: Best Book on Roth Conversions
Replies: 21
Views: 3080

Re: Best Book on Roth Conversions

Here is a technical article by Robert Keebler on conversions. Everything stated about 2010 conversions applies now except that paying the taxes over two years only applied to conversions actually done in 2010. There have also been some changes to the unified credit for estate taxes. https://www.atax...
by Alan S.
Sat Aug 19, 2017 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Recharacterizing invested Roth excess 2016 contribution questions
Replies: 2
Views: 127

Re: Recharacterizing invested Roth excess 2016 contribution questions

Like I normally do, tossed $5,500 into my Roth on Jan 1st (well, 4th) in 2016 and thought nothing of it (invested it immediately in a few index funds). Got married last year and filed married filing separately in April because my wife has a low paying job in the public sector and 100k in federal lo...
by Alan S.
Mon Aug 14, 2017 11:51 pm
Forum: Investing - Help with Personal Investments
Topic: Unitized ESOP Fund in Company 401k Eligible for NUA?
Replies: 6
Views: 431

Re: Unitized ESOP Fund in Company 401k Eligible for NUA?

Hi, My company matches my 401k contribution through Unitized ESOP Company Stock Fund. I have no way of changing this option. Currently, 9-10% of my 401k portfolio is in this Unitized ESOP Company Stock Fund. My question is: Further down the road, should I decide to liquidate the Unitized ESOP Compa...
by Alan S.
Mon Aug 14, 2017 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Withdrawal Rules for Surviving Spouse age 57
Replies: 7
Views: 794

Re: IRA Withdrawal Rules for Surviving Spouse age 57

Please see my first post here for background..... https://www.bogleheads.org/forum/viewtopic.php?f=2&t=225336&p=3488103#p3488103 Where do I find the rules for IRA withdrawals for a younger surviving spouse? Spefically wife age 57 when husband dies at age 65 or 66? Husband has both TIRA and Roth IRA...
by Alan S.
Sun Aug 13, 2017 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA possible excess contributions for 2015 and 2016
Replies: 2
Views: 238

Re: Roth IRA possible excess contributions for 2015 and 2016

I opened a Roth IRA with Fidelity and contributed $5500 (December, 2015) for 2015 and $5500 (April, 2017) for 2016. I've been working abroad on an expat assignment, and made a bad assumption that my MAGI would be less than the Roth IRA thresholds. My taxes are prepared by a big accounting firm hire...
by Alan S.
Sat Aug 12, 2017 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: Recharacterization madness: Roth excess contribution --> TIRA --> Roth
Replies: 36
Views: 2950

Re: Recharacterization madness: Roth excess contribution --> TIRA --> Roth

If you remove an excess contribution, the IRS issues a 1099R coded in Box 7 to indicate which tax year the earnings shown in Box 2a are taxable and will be reported on line 15b of Form 1040. The 10% penalty applies to the earnings shown in Box 2a. The IRS gets a copy of the 1099R, so you do not send...
by Alan S.
Thu Aug 10, 2017 11:19 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA basis
Replies: 26
Views: 11242

Re: Roth IRA basis

I was incorrect about Box 5 for direct rollovers from a Roth 401k to a Roth IRA. The 1099R Inst. are a mess, as they do not mention Box 5 in the section for reporting direct rollovers from designated Roth accounts. However, since posting that I noticed that a few pages later in the 1099R Inst. under...
by Alan S.
Wed Aug 09, 2017 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: question about taxes in Rollover IRA
Replies: 7
Views: 488

Re: question about taxes in Rollover IRA

After you retire and your annual income is very low, particularly if you delay claiming SS for awhile, this is an ideal time to convert modest amounts to your Roth IRA. You would pay taxes on the conversion at a lower rate than you will on your RMDs later on when you will also be collecting SS. Conv...
by Alan S.
Wed Aug 09, 2017 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Mega Backdoor Roth IRA - what to do with gains?
Replies: 15
Views: 1239

Re: Mega Backdoor Roth IRA - what to do with gains?

Hello all, In the process of completing my first Mega Backdoor Roth IRA: I got 2 checks from Fidelity, #1 with my after-tax contributions and #2 with the gains for those contributions, in the #2 check Memo section says T IRA. My questions are: :?: 1- What should I do with check #2: put it in a trad...
by Alan S.
Sun Aug 06, 2017 6:54 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor and Mega backdoor Roth IRA beginner questions
Replies: 8
Views: 977

Re: Backdoor and Mega backdoor Roth IRA beginner questions

You are asking about your Roth IRA distributions. These follow "ordering rules" under which your regular Roth IRA contributions come out first, and are tax and penalty free. Next out are your Roth IRA conversions and qualified Roth rollovers such as from your mega back door rollovers. These contribu...
by Alan S.
Sat Aug 05, 2017 7:03 pm
Forum: Investing - Help with Personal Investments
Topic: FERS Refund of Retirement Deductions
Replies: 12
Views: 1829

Re: FERS Refund of Retirement Deductions

I am going through the process of getting a FERS Refund with less than 3 years service. Total contributions are around $30k. It seems pretty clear from the Reimbursement Form and this thread that the Interest Portion (Taxable) can be rolled over to TSP, which is great. Regarding the Contribution Po...
by Alan S.
Sat Aug 05, 2017 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Roth, Taxes and Mistakes
Replies: 41
Views: 3999

Re: Roth, Taxes and Mistakes

I currently contribute to my school's 457, and my husband and I also contribute to our Roths. Through casual reading last night I learned that you cannot file separately and do a Roth IRA. When our tax advisor suddenly passed away, his daughter in law took over. She was the one that had us move to ...
by Alan S.
Fri Aug 04, 2017 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: Recharacterizing a Roth IRA - Need help with Vanguard form
Replies: 18
Views: 642

Re: Recharacterizing a Roth IRA - Need help with Vanguard form

Part 5 of the form does not seem to provide for the listed investments to be transferred in order of listing. Schwab's and some other forms are set up to have the transferred investments done in order from top down. For example, you could specify Fund A in either dollars or # of shares, when that am...
by Alan S.
Fri Aug 04, 2017 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Asset Protection - ERISA and Rollover IRA
Replies: 4
Views: 479

Re: Asset Protection - ERISA and Rollover IRA

Here is the VA statute: http://law.justia.com/codes/virginia/2016/title-34/chapter-4/section-34-34/ Note that a rollover IRA is protected without limit in VA under the Fed BK Act of 2005. However, you still must file BK in the proper court to apply this exemption, meaning your other assets are at ri...
by Alan S.
Fri Aug 04, 2017 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Recharacterizing a Roth IRA - Need help with Vanguard form
Replies: 18
Views: 642

Re: Recharacterizing a Roth IRA - Need help with Vanguard form

An additional question I just thought of: What happens to your RMD when you a Roth recharacterization? Does Vanguard automatically recalculate it for you when the recharacterization is done? Under the "outstanding rollovers and recharacterizations" rule, the IRA custodian must add the amount transf...
by Alan S.
Tue Aug 01, 2017 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: How far off are Zillow's estimates?
Replies: 82
Views: 7308

Re: How far off are Zillow's estimates?

For a large tract, particularly of cookie cutter homes where there are a lot of comps, Zillow should be reasonably accurate. For custom homes on the other hand, not knowing much of the details in each particular home and with few comps, they could be way off. So it depends. Have a neighbor with a ho...
by Alan S.
Tue Aug 01, 2017 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Contribution to satisfy RMD
Replies: 43
Views: 3584

Re: Contribution to satisfy RMD

It's clear that IRA owner check writing can be used for a QCD for IRS purposes, but each custodian can restrict the check writing in any manner they wish. For example, the check could be limited to the cash balance in the account, or could trigger redemption of shares in specific funds, but not for ...
by Alan S.
Tue Aug 01, 2017 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Contribution to satisfy RMD
Replies: 43
Views: 3584

Re: Contribution to satisfy RMD

Anyone with IRA basis and also doing a QCD for less than the total distributions in that year will have to separate the reporting. 1) Since a QCD comes only from the pre tax IRA balance, you report the QCD on line 15, but DO NOT show it on Form 8606. 2) The rest of your distributions that year pro r...
by Alan S.
Tue Aug 01, 2017 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Non-Deductible Traditional IRAs
Replies: 7
Views: 772

Re: Non-Deductible Traditional IRAs

My wife and I made non-deductible contributions to our traditional IRAs from 1987 through 2007. We are cleaning our house in preparation to move to a smaller house and discovered that our tax return files fro 1987 through 1995 are missing, thus we are missing the completed form 8606 for those years...
by Alan S.
Tue Aug 01, 2017 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Contribution to satisfy RMD
Replies: 43
Views: 3584

Re: Contribution to satisfy RMD

Does anyone know if you can use Fidelity's check writing ability to make a QCD contribution by writing a check directly to the charity and avoid having to make a check request, etc? I believe Fidelity lets you write checks directly from an IRA. If you have check writing authority on your IRA accoun...
by Alan S.
Mon Jul 31, 2017 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: Is a TSP considered an IRA? Post-tax IRA Conversion Question
Replies: 9
Views: 823

Re: Is a TSP considered an IRA? Post-tax IRA Conversion Question

PS I did roll ~$10,222 of an old TIRA from USAA into my TSP within this calendar year. About $8,000 of it was contributions, so around $2200 in profit. I guess I'd need to figure that in somehow if I just did the "cut a big check for the outstanding difference of my Defined Contribution Limit&...
by Alan S.
Mon Jul 31, 2017 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: Is a TSP considered an IRA? Post-tax IRA Conversion Question
Replies: 9
Views: 823

Re: Is a TSP considered an IRA? Post-tax IRA Conversion Question

Even if you can't go directly, with a split rollover you can send the after-tax contributions to the Roth and the earnings to a TIRA. You could, if you wanted, then roll that TIRA into the TSP. Or you could leave it if you aren't doing regular Backdoor Roth operations. Thanks! I will still hopefull...
by Alan S.
Mon Jul 31, 2017 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Is a TSP considered an IRA? Post-tax IRA Conversion Question
Replies: 9
Views: 823

Re: Is a TSP considered an IRA? Post-tax IRA Conversion Question

The TSP and 401a or 401k accounts are qualified plans, they are NOT IRA accounts and do not affect TIRA to Roth IRA conversion taxes. Their balance is not entered on Form 8606 and is not pro rated with IRA money. You can do a direct rollover from these accounts to your Roth IRA, and taxes will be du...
by Alan S.
Sat Jul 29, 2017 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion or invest in taxable account
Replies: 4
Views: 529

Re: Roth conversion or invest in taxable account

Designated Roth account earnings will be tax free, but only after the Roth is qualified (5 years and 59.5). Until that time, any distribution will be pro rated between contributions and earnings with the earnings being taxable. Because a 457 is not subject to Sec 72t there is no 10% penalty for earl...
by Alan S.
Sat Jul 29, 2017 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Recharacterization madness: Roth excess contribution --> TIRA --> Roth
Replies: 36
Views: 2950

Re: Recharacterization madness: Roth excess contribution --> TIRA --> Roth

OP here. It took ages to fix my W-2 issue, and I'm finally getting around to addressing my 2016 Roth excess. I'm withdrawing the excess and gains with Vanguard. Am I supposed to report the gains and pay tax on them with my 2016 return or 2017 return? I'd like to go ahead and withdraw the expected e...
by Alan S.
Fri Jul 28, 2017 7:12 pm
Forum: Investing - Help with Personal Investments
Topic: AF Simple IRA to VG Simple IRA monthly "transfer"
Replies: 3
Views: 280

Re: AF Simple IRA to VG Simple IRA monthly "transfer"

I hope you do not get a 1099R. This will happen even when the funds move by non reportable transfer if the transferor firm thinks the funds did NOT go into another SIMPLE IRA in the first two years. And most of their later transfers do NOT go into another SIMPLE IRA. If you get a 1099R in January, g...
by Alan S.
Fri Jul 28, 2017 3:12 pm
Forum: Investing - Theory, News & General
Topic: Treasury ends myRA program
Replies: 31
Views: 3218

MyRA bites the dust

Program cost taxpayers $2 for every dollar saved.

People have plenty of savings options, they simply would rather spend. Yet another plan was not needed, but perhaps some self discipline could be generated in some way.

http://money.cnn.com/2017/07/28/retirem ... index.html
by Alan S.
Thu Jul 27, 2017 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover 401k deposited in to Roth IRA on accident
Replies: 1
Views: 205

Re: Rollover 401k deposited in to Roth IRA on accident

Vanguard's solution is not viable or even applicable, but you can take some comfort in the fact that this error is not nearly as serious as when Roth money is rolled into a TIRA because you can always fall back on recharacterization (full or partial) of the pre tax money that was rolled into your Ro...
by Alan S.
Thu Jul 27, 2017 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: solo 401k sep and pro rata rule
Replies: 13
Views: 558

Re: solo 401k sep and pro rata rule

I agree. Chances are that how your personal financial profile develops will mean far more than any tax code changes that occur throughout the rest of your lifetime. People focus far too much on future tax code changes. Such things as very early retirement or employer downsizing, major and possibly u...
by Alan S.
Thu Jul 27, 2017 11:57 am
Forum: Personal Finance (Not Investing)
Topic: IRA "registration error" (?) Roth vs Traditional at American Funds
Replies: 37
Views: 1982

Re: IRA "registration error" (?) Roth vs Traditional at American Funds

Houseblend makes a key point. The parents made a poor call to make TIRA contributions for a minor after 1998 when the Roth became available. However, the number of possible permutations to this situation are considerable. For example, parents might have realized at some point that the contributions ...
by Alan S.
Thu Jul 27, 2017 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Timing of 401K Rollover
Replies: 9
Views: 634

Re: Timing of 401K Rollover

Not that you can do the IRA rollover very soon after separation, however there is a risk of the following for rollovers done within 18 months of separation: 1) Most recent deferrals and company matching contributions have not been credited to the account. That will result in a secondary rollover. 2)...
by Alan S.
Wed Jul 26, 2017 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: rollover 401k Roth to existing Roth IRA
Replies: 1
Views: 206

Re: rollover 401k Roth to existing Roth IRA

My apologies if this question(s) have been asked before. Searched forum but could not find thread that matched my situation. Background info: Currently 58 years old and semi-retired. In other words, not ready to take Company pension or Social Security until 62 or 65. Have been contributing to emplo...
by Alan S.
Wed Jul 26, 2017 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: IRA "registration error" (?) Roth vs Traditional at American Funds
Replies: 37
Views: 1982

Re: IRA "registration error" (?) Roth vs Traditional at American Funds

For years in which no contributions are made, the IRS requires a 5498 to report the fair market value or a statement which indicates this value. Many custodians will use a statement in that situation rather than a 5498 for the participant, but the IRS wants the 5498. That makes it harder if the IRA ...
by Alan S.
Wed Jul 26, 2017 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Top floor condo, water backup/overflow insurance?
Replies: 6
Views: 770

Re: Top floor condo, water backup/overflow insurance?

The exposure is much reduced if there is a sewer backwater valve installed between the main sewer line in the street and where your sewer line enters the building. Some cities have ordinances requiring these, but you might have a challenge determining whether your sewer line actually has one or not....
by Alan S.
Wed Jul 26, 2017 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: IRA "registration error" (?) Roth vs Traditional at American Funds
Replies: 37
Views: 1982

Re: IRA "registration error" (?) Roth vs Traditional at American Funds

American funds cannot provide him with any 5498 copies, having held this IRA for 14 years? This sounds quite devious to me. May be time to order IRS copies of all 5498 forms available, although they may not be available for the entire time period. If it turns out that Roth contributions can be docum...
by Alan S.
Wed Jul 26, 2017 12:41 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA and Marriage this year
Replies: 6
Views: 622

Re: Roth IRA and Marriage this year

There is no penalty, but there will be some taxable income on the conversion from any gains generated in the Roth before the recharacterization and in the TIRA after the recharacterization and before the conversion. The recharacterization results in the gains being TIRA gains, not Roth gains. This s...
by Alan S.
Sat Jul 22, 2017 6:17 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 5 Year Rule
Replies: 3
Views: 542

Re: Roth 5 Year Rule

It starts when you make your first allowable (not excess) Roth contribution, whether a regular contribution or a conversion. The investment selected and the time a particular investment is held is immaterial. This refers to the 5 year holding requirement for your Roth to be qualified and any earning...
by Alan S.
Sat Jul 22, 2017 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Questions
Replies: 22
Views: 2132

Re: Mega Backdoor Roth Questions

Doing a mega backdoor roth is accomplished by a non-hardship, in-service distribution of the after-tax sub-account of your 401k account (both contributions and earnings). You are not technically "withdrawing", and that too not just contributions. See if the SPD talks about in-service dist...
by Alan S.
Sat Jul 22, 2017 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Questions
Replies: 22
Views: 2132

Re: Mega Backdoor Roth Questions

That IRS link is flawed because it totally ignores after tax sub accounts under Sec 72(d)(2) which are treated as separate accounts. If you specify a distribution is to come from the separate account, the only pro rating is with earnings contained in that same separate account. This account is walle...
by Alan S.
Fri Jul 21, 2017 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Questions
Replies: 22
Views: 2132

Re: Mega Backdoor Roth Questions

I'm evaluating a job offer with a 401k plan that offers non-Roth after-tax contributions. The only downside is there is a 5 year waiting period to withdraw the money while in service. I know there is might be some 5 year rules at play regarding rollovers. Can anyone verify this contributions would ...
by Alan S.
Fri Jul 21, 2017 8:33 pm
Forum: Investing - Help with Personal Investments
Topic: Cleaning Up TIRA Basis (Form 8606)
Replies: 7
Views: 632

Re: Cleaning Up TIRA Basis (Form 8606)

You have some time to complete an IRA rollover to your 401k, so I recommend proceding in the following order: 1) Do the research as necessary in order to be able to file accurate 8606 forms reporting your non deductible contributions. You will have to start with the oldest such year and work forward...
by Alan S.
Thu Jul 20, 2017 6:14 pm
Forum: Investing - Help with Personal Investments
Topic: Conduit IRA Requirement
Replies: 22
Views: 1153

Re: Conduit IRA Requirement

Am I missing something here ? The IRS seems to have acknowledged pretty clearly in Publication 590a that gains can be rolled over. Some custodians do not accept the growth on non-deductible contributions. Here is an example: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=222441&p=3437...
by Alan S.
Wed Jul 19, 2017 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Conduit IRA Requirement
Replies: 22
Views: 1153

Re: Conduit IRA Requirement

Yes. The wording is part of the plan and I need to sign documents declaring that it is a conduit IRA. I think my only option is to consider partial conversions as previously mentioned. Bottom line is this falls on my shoulders due to ignorance with the ratio rule when I had other rollover IRAs. Tha...
by Alan S.
Tue Jul 18, 2017 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Excess 401k Contribution / Correction 1099 Code P
Replies: 4
Views: 293

Re: Excess 401k Contribution / Correction 1099 Code P

I think there could be an issue here with the 1099R forms, but cannot tell for sure. The excess deferral coded P indicates an amount that needs to be added to your wages for 2015, which was the year the excess deferral was made. Pretty straight forward. However, the lack of a second 1099R coded 8 su...
by Alan S.
Sat Jul 15, 2017 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: bob brinker on Roth [conversion]
Replies: 26
Views: 3228

Re: bob brinker on Roth

Well, I know with 100% certainty that the tax rates for my situation will do one of three things: a) stay the same b) go up c) go down That's true, but I wouldn't assign equal probabilities. Usually, change in either direction is smaller than you think it will be, and take longer to go into effect ...
by Alan S.
Sat Jul 15, 2017 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: SEP contribution for previous year confusion
Replies: 11
Views: 538

Re: SEP contribution for previous year confusion

Various types of income on different types of 1099 forms can be reported to an entity that is not the correct recipient. In that case, the incorrect recipient files the same type of 1099 indicating payment to the correct recipient. In your case, you are filing the 1099 showing the income is estate i...
by Alan S.
Fri Jul 14, 2017 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: IRA rollover, *erroneous* 1099 (for full balance)
Replies: 36
Views: 1839

Re: IRA rollover, *erroneous* 1099 (for full balance)

Thanks for the update. You put a lot of effort into this. Considering everything to date, and assuming that the friend knows not to move any more IRA funds by rollover prior to 12/12/2017, the friend should go with the accountant's advice. Despite the incorrect 1099R, this should be reported as a ro...
by Alan S.
Thu Jul 13, 2017 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover after-tax funds in an IRA to a Roth IRA?
Replies: 9
Views: 564

Re: Rollover after-tax funds in an IRA to a Roth IRA?

I have, for example, an IRA with $30,000 total of which $6,000 was after-tax contributions. Can I simply extract that $6,000 of after-tax money from that IRA and roll it into a new Roth IRA account - and yes I have IRS 8606 records on the after-tax contributions. In this case, I will end up with: $...
by Alan S.
Thu Jul 13, 2017 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: Convert to ROTH and recharacterize---what did Vanguard report to the IRS?
Replies: 3
Views: 294

Re: Convert to ROTH and recharacterize---what did Vanguard report to the IRS?

Not exactly correct regarding the RMD. Any distribution taken in 2016 applies to the RMD even when distributed before actually reaching 70.5. Exact date of reaching 70.5 only applies to QCDs. The 1099R will show 130k distributed in 2016. It will not break out the converted amount from the 50k that w...
by Alan S.
Thu Jul 13, 2017 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: SEP contribution for previous year confusion
Replies: 11
Views: 538

Re: SEP contribution for previous year confusion

Alan, there was a totally unrelated mixup related to a incorrect 1099K for a decedent's estate. Because the estate EIN was not on the 1099, it would appear to the IRS that personal income was unreported, which of course would increase my tax liability if true. I am having a corrected 1099 issued in...