Search found 6842 matches

by Alan S.
Sun Oct 22, 2017 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: Separate Roth IRA accounts for the backdoor and the mega backdoor?
Replies: 11
Views: 861

Re: Separate Roth IRA accounts for the backdoor and the mega backdoor?

I live in CA and I plan to use separate roth ira accounts for the backdoor vs the mega backdoor due to differences in creditor protection in CA. Funds in an IRA that are traceable to qualified plans have better creditor protection than regular IRA assets. https://udirectira.com/592-2rollover/ The M...
by Alan S.
Wed Oct 18, 2017 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Deciding between Roth TSP and Trad TSP
Replies: 26
Views: 1474

Re: Deciding between Roth TSP and Trad TSP

In a QRP that offers IRRs (in plan Roth rollovers), your elective deferral decision can be skewed toward pre tax because you can always do an IRR toward the end of the year to move already contributed funds to the designated Roth option. But no recharacterizations are allowed so your second decision...
by Alan S.
Wed Oct 18, 2017 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Using a broker for a Supplemental Medicare Plan?
Replies: 21
Views: 781

Re: Using a broker for a Supplemental Medicare Plan?

If you can find a Supplement provider that does not use brokers, they could use a direct to the public sales model and cut out the middleman commissions. This has worked well in the property-casualty personal lines marketplace. No reason a fairly detailed application could not be filled out on line ...
by Alan S.
Sun Oct 15, 2017 11:17 pm
Forum: Personal Finance (Not Investing)
Topic: Desperately seeking help with Roth excess contribution - 2016 taxes
Replies: 10
Views: 1005

Re: Desperately seeking help with Roth excess contribution - 2016 taxes

Using one from a 1099R would be better than from a 1099 DIV. I think they probably use the same one for all IRA distributions, but a 1099 DIV could be different for each fund as you indicated.
by Alan S.
Sun Oct 15, 2017 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: Desperately seeking help with Roth excess contribution - 2016 taxes
Replies: 10
Views: 1005

Re: Desperately seeking help with Roth excess contribution - 2016 taxes

I think I figured out the issue. I found a place near the bottom of the 1099R in TaxAct where I could indicate that I'm expecting the 1099R in 2018, and on the other page where I needed to enter my Roth excess, instead of keeping it at 1940 I changed it to 0, since I had withdrawn the money already...
by Alan S.
Sun Oct 15, 2017 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Desperately seeking help with Roth excess contribution - 2016 taxes
Replies: 10
Views: 1005

Re: Desperately seeking help with Roth excess contribution - 2016 taxes

David, it appears are you dealing with two inter related transactions here. Even though you processed a return of 2280 of your Roth contribution, that figure was based on MAGI without the following two additional income amounts: 1) The earnings of 435 on that 2280 which is taxable in 2016 (reported ...
by Alan S.
Fri Oct 13, 2017 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: mechanics of tIRA -> 401k
Replies: 7
Views: 383

Re: mechanics of tIRA -> 401k

My spouse has a tIRA at vanguard that is 90% rollover and 10% deductible contribution. His company just switched to Fidelity as 401k provider, and they will accept a rolled-in contribution (thus opening the backdoor Roth for him). I have two questions about the mechanics: 1. How does the tax report...
by Alan S.
Fri Oct 13, 2017 11:09 am
Forum: Personal Finance (Not Investing)
Topic: 2018 SS COLA contest
Replies: 7
Views: 788

Re: 2018 SS COLA contest

Congratulations to TLC contest winner, and pshonore posted just two minutes thereafter.
by Alan S.
Thu Oct 12, 2017 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 SS COLA contest
Replies: 7
Views: 788

2018 SS COLA contest

Who will be first to correctly calculate and post the 2018 SS COLA here?
Sept. CPI-W to be announced at 8:30 AM EDT tomorrow 10/13. Unofficial non govt sources will probably also post it before SSA does.
by Alan S.
Thu Oct 12, 2017 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: Beware of Malware at Equifax website
Replies: 6
Views: 981

Re: Beware of Malware at Equifax website

Equifax should probably be tagged as a "Superfund site". :P
by Alan S.
Thu Oct 12, 2017 12:01 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Conversion Timeline after recharacterization
Replies: 7
Views: 480

Re: Backdoor Roth Conversion Timeline after recharacterization

When working on our 2016 income tax in September, I realize our income is over Roth IRA contribution limit. To avoid penalty, I did a recharactization of both my husband’s and my 2016 Roth IRA contribution of $5500 to two newly created Non-Deductible IRA accounts before the tax filing deadline. The...
by Alan S.
Wed Oct 11, 2017 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Health Care for 2018, Curious About Other's Increases
Replies: 21
Views: 2533

Re: Health Care for 2018, Curious About Other's Increases

UHC MA HMO plan.

2018 premium up from 46 per month to 47 per month

RX
Tier 1 To 4/month from 2/month
Tier 2 To 12/month from 8/month
Tiers 3-5 Annual Deductible to 245 from 220.
by Alan S.
Wed Oct 11, 2017 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: ETrade screws up classification of 401k rollover to Roth - what now?
Replies: 10
Views: 993

Re: ETrade screws up classification of 401k rollover to Roth - what now?

The E trade CSR is incorrect when they indicated that E Trade cannot fix this. The truth is that they CAN and should issue a corrected 5498 if they were responsible for the error. Unfortunately, once the tax forms are issued (5498 forms in May), it is more of a hassle to correct an incorrect form an...
by Alan S.
Tue Oct 10, 2017 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: SEPP question
Replies: 3
Views: 344

Re: SEPP question

You should discuss this with a tax professional familiar with SEPP, but according to https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-substantially-equal-periodic-payments#4 You may use any interest rate that is not more than 120% of the federal mid-term rate published in IRS re...
by Alan S.
Tue Oct 10, 2017 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover after-tax funds in an IRA to a Roth IRA?
Replies: 12
Views: 904

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

That will work. Whether you add a Roth option to the solo K or not does not matter because you cannot roll after tax IRA money into a designated Roth account (Roth 401k) or into the pre tax 401k account. You can convert your after tax IRA basis per Form 8606 to your Roth IRA either before or after y...
by Alan S.
Sun Oct 08, 2017 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Desperately seeking help with Roth excess contribution - 2016 taxes
Replies: 10
Views: 1005

Re: Desperately seeking help with Roth excess contribution - 2016 taxes

Hello, In 2016 I contributed $5500 to my Roth IRA. I am now finishing up my 2016 taxes and with the extension deadline fast approaching I could use a hand. I am using Tax Act and I first completed nearly all of my taxes back in March. At that time, I had an issue with my former 401k that forced me ...
by Alan S.
Sat Oct 07, 2017 11:42 pm
Forum: Personal Finance (Not Investing)
Topic: Issue With Non-Deductible tIRA contribution, Solo 401k Rollover
Replies: 5
Views: 391

Re: Issue With Non-Deductible tIRA contribution, Solo 401k Rollover

You are fortunate that the Admiral shares did not transfer, otherwise it sounds like you would have rolled some IRA basis into the solo K, and that is not allowed. In an IRA rollover to a qualified plan, your basis is the last to transfer and therefore your basis remains in your TIRA in addition to ...
by Alan S.
Fri Oct 06, 2017 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Megabackdoor Roth Waiting Period?
Replies: 18
Views: 1282

Re: Megabackdoor Roth Waiting Period?

The post by banx is correct assuming that your Roth IRA consists only of mega back door Roth rollovers. However, if any of your Roth IRAs include regular contributions or conversions, the regular contributions will come out first, tax and penalty free. Then your oldest Roth conversions come out unde...
by Alan S.
Fri Oct 06, 2017 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Married filing single
Replies: 2
Views: 380

Re: Married filing single

My wife and I both pull in enough $ such that contributing to a Roth IRA is out of the question. Unfortunately, so is the backdoor roth unless we want to be subject to pro rata rules. If I were to retire or go part time, would electing to file as married filing single open up the Roth contribution ...
by Alan S.
Tue Oct 03, 2017 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: ROTH Question
Replies: 4
Views: 630

Re: ROTH Question

I believe I know the answer to this, but want to confirm I'm correct. I'm working. My wife has not worked this year. We ARE ABLE to put contributions into her ROTH account? Is this correct? Thanks in advance for your response. You can make a spousal contribution for your wife ONLY if your modified ...
by Alan S.
Sun Oct 01, 2017 8:22 pm
Forum: Investing - Help with Personal Investments
Topic: 401k over contribution and 1099R
Replies: 19
Views: 1446

Re: 401k over contribution and 1099R

NYS refund reduction of $185 due to 1,636 of additional wages. 185/1636 = 11.3%.
by Alan S.
Sat Sep 30, 2017 10:04 pm
Forum: Investing - Help with Personal Investments
Topic: 72q SEPP payments and 1035 exchanges - please help
Replies: 4
Views: 418

Re: 72q SEPP payments and 1035 exchanges - please help

The rules for a 72q SEPP plan follow those of 72t plans for qualified retirement accounts per IRS PLR 2003 13016. While thousands of partial transfers of 72t plans go through unchallenged by the IRS, there have been a couple of cases where the IRS busted a 72t plan for a partial transfer (less than ...
by Alan S.
Wed Sep 27, 2017 11:56 pm
Forum: Personal Finance (Not Investing)
Topic: Roth to Traditional to Roth conversion?
Replies: 8
Views: 558

Re: Roth to Traditional to Roth conversion?

Perhaps the conversion in 2018 is not the best idea either. If your 2018 income is otherwise the same as 2017, then the 2018 conversion will cost you 4,000 in taxes due primarily to loss of savers credit funds even if you make more deductible TIRA contributions in 2018. That's a rate of 36.4% on tha...
by Alan S.
Wed Sep 27, 2017 11:35 pm
Forum: Investing - Help with Personal Investments
Topic: 401k over contribution and 1099R
Replies: 19
Views: 1446

Re: 401k over contribution and 1099R

Yes, your refund would go down with the change in 1099R coding because the Box 2a amount is now added to your 2016 wages line 7. With the former miscoded 1099R (incorrect code P) your 2016 wages would not be increased. With code 8 your wages have been increased so the reduced refund is logical. I as...
by Alan S.
Tue Sep 26, 2017 11:06 pm
Forum: Personal Finance (Not Investing)
Topic: Schwab.com login trouble?
Replies: 15
Views: 1584

Re: Schwab.com login trouble?

I would expect that every major company, much less financial firms, are reviewing and making some security related changes following the Equifax hack. Log ins would be about the first thing they would be concerned with. Perhaps this has something to do with log in issues at various firms, Schwab inc...
by Alan S.
Fri Sep 22, 2017 10:39 pm
Forum: Personal Finance (Not Investing)
Topic: pre-tax money in a nondeductible IRA
Replies: 24
Views: 1485

Re: pre-tax money in a nondeductible IRA

Per the quote from Pub 590, you can roll the pre tax balance (for all non Roth IRAs) into an accepting qualified plan, and then convert the IRA basis tax free. Note that there is no such thing as either a deductible or non deductible IRA account. If you have basis, it floats over all your non Roth I...
by Alan S.
Wed Sep 20, 2017 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Tax implications for converting rollover IRA to Roth
Replies: 5
Views: 449

Re: Tax implications for converting rollover IRA to Roth

If you are paying your federal taxes by withholding, there will be no underpayment penalty if your total withholding at least equals 100% of your 2016 tax liability (110% if your 2016 AGI was over 150k), or 90% of this year's tax liability. If you are paying by estimates, the payments should be equa...
by Alan S.
Tue Sep 19, 2017 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Equifax Credit Freeze 100% online
Replies: 35
Views: 5210

Re: Equifax Credit Freeze 100% online

A key decision is whether to press forward with the freeze and associated requests while all 3 firms are dysfunctional and understaffed due to the sheer magnitude of this issue or wait until they have their act together. Public and political pressure will probably result in constant changes being de...
by Alan S.
Tue Sep 19, 2017 11:11 am
Forum: Investing - Help with Personal Investments
Topic: 59 1/2 Distribution Age Question
Replies: 4
Views: 453

Re: 59 1/2 Distribution Age Question

I don't ever recall a case where anyone reported mis coding of the 1099R due to incorrect age. If you are over 59.5 and Code 1 is incorrectly shown in Box 7, you can self correct it by filing a Form 5329 exception code 12. Obviously, errors made in your favor are much less likely to be reported to v...
by Alan S.
Sun Sep 17, 2017 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth: Withdrawal consequences for in-plan vs out-of-plan conversion
Replies: 10
Views: 608

Re: Mega Backdoor Roth: Withdrawal consequences for in-plan vs out-of-plan conversion

My employer allows after-tax 401k contributions, and has an option for automatic quarterly after-tax 401k -> Roth 401k in-plan conversions. The other option for executing the mega backdoor Roth is to do an out-of-plan conversion, in which I can convert the after-tax 401k contribution to a Roth IRA,...
by Alan S.
Fri Sep 15, 2017 10:37 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Tax Threshold Estimates
Replies: 12
Views: 1420

Re: 2018 Tax Threshold Estimates

Yup. I edited my post to add a comment about the IRMAA tiers. They are also catching more people every year, but inflation adjustments on the MAGI for IRMAA purposes should return in 2020 without any more legislation.
by Alan S.
Fri Sep 15, 2017 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Tax Threshold Estimates
Replies: 12
Views: 1420

Re: 2018 Tax Threshold Estimates

Where are the inflation adjustments on SS income? One of the worst tax hits on the books with no inflation adjustment. We should march on Washington for that one! Taxes get me excited if you couldn't tell. Dan The 2018 SS COLA should be announced on 10/16 (Mon) since the Sept CPI-W will be released...
by Alan S.
Fri Sep 15, 2017 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Tax Threshold Estimates
Replies: 12
Views: 1420

2018 Tax Threshold Estimates

These estimates are typically confirmed by the IRS in a few weeks.

http://news.cchgroup.com/2017/09/15/wol ... unts-2018/
by Alan S.
Thu Sep 14, 2017 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited 401K - required minimum distributions or lump sum?
Replies: 9
Views: 922

Re: Inherited 401K - required minimum distributions or lump sum?

Probably a good move to request a direct rollover to an inherited Roth IRA. Your 2017 beneficiary RMD must be distributed first and cannot be included in the direct rollover. You will then have an inherited Roth IRA from which your beneficiary RMDs must continue starting in 2018. Because of the Roth...
by Alan S.
Wed Sep 13, 2017 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover IRA / Non Deductable IRA
Replies: 31
Views: 1160

Re: Rollover IRA / Non Deductable IRA

If you really want to eliminate the "8606 forever" prospects, you still have time to request a removal of your 2016 (now TIRA contribution after the recharacterization) from your former rollover IRA. After 10/16 this is no longer possible. Doing this would result in the following: 1) 2016 8606 sent ...
by Alan S.
Wed Sep 13, 2017 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover IRA / Non Deductable IRA
Replies: 31
Views: 1160

Re: Rollover IRS / Non Deductable IRA

A "rollover IRA" is an IRA funded exclusively from qualified retirement plan contributions. Whether the funds rolled into the rollover IRA were pre tax or after tax is immaterial. It is a rollover IRA regardless. You CAN make a regular contribution to a rollover IRA, but the IRA is no longer a rollo...
by Alan S.
Tue Sep 12, 2017 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: The 10 year car ownership "rule"
Replies: 95
Views: 10720

Re: The 10 year car ownership "rule"

How long you keep your vehicle is subject to enough variables that a "rule of thumb" is not meaningful or of value.
by Alan S.
Sun Sep 10, 2017 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Breaking IRA CD
Replies: 4
Views: 459

Re: Breaking IRA CD

This is a CU custodian specific offering, but the benefit of the EWP waiver is partially lost if the custodian will not change the CD IRA via same trustee non reportable transfer. I assume this offer only applies when the same CU provides the new CD. Due to the IRS one rollover rule some CD owners m...
by Alan S.
Sat Sep 09, 2017 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401K
Replies: 6
Views: 865

Re: ROTH 401K

That is the $64 question. If I want to transfer the 401K ROTH I would have to transfer everything from 401K to Vanguard which is ok. But I live in CA and I understand in a lawsuit the funds in 401K is protected against a lien but in IRA it can be taken. I guess that is my only hesitance. So I am de...
by Alan S.
Fri Sep 08, 2017 6:53 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401K
Replies: 6
Views: 865

Re: ROTH 401K

In order to avoid Roth 401k RMDs, you will have to directly roll the plan to your Roth IRA before 1/1/2019. But if you first contributed to the Roth 401k before 2015, your Roth 401k will be qualified and tax free in 2019 if you do not complete the rollover and become subject to RMDs. If your Roth IR...
by Alan S.
Tue Sep 05, 2017 11:34 pm
Forum: Personal Finance (Not Investing)
Topic: Homeowners Insurance - value to insure?
Replies: 14
Views: 1879

Re: Homeowners Insurance - value to insure?

The sweet spot is to first come up with the replacement cost. If you live where total catastrophe losses are very possible, increase your estimate by 15%-20%. Determine what % guaranteed replacement will provide. If 20%, then reduce the amount of insurance target to 100/120 of your figure. That will...
by Alan S.
Sun Sep 03, 2017 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA or Backdoor Roth?
Replies: 22
Views: 1674

Re: Roth IRA or Backdoor Roth?

Is there a downside to doing ved's #2? That's what I was going to suggest to my son, who has a Roth but no pre-tax IRAs (of any flavor). It seems to be a no-harm-no-foul situation that works whether you're over income limits or not. You get an extra year or so in the market, as opposed to waiting u...
by Alan S.
Sat Sep 02, 2017 11:18 pm
Forum: Investing - Help with Personal Investments
Topic: 401k over contribution and 1099R
Replies: 19
Views: 1446

Re: 401k over contribution and 1099R

Ok is option B a 1099R 2017 coded P? Yes, that is the correction they should make. It appears the using either the 8 or P code with the corresponding 1099R edition is intended to treat the distribution as having been made to you by 4/15 even if it was distributed later than that. That would provide...
by Alan S.
Sat Sep 02, 2017 10:25 pm
Forum: Investing - Help with Personal Investments
Topic: 401k over contribution and 1099R
Replies: 19
Views: 1446

Re: 401k over contribution and 1099R

The W2 Box 12 D total across my W2s is 19600. The 1099 R is 2016. No 1099 R coded 8. What next? Was the 1099 R 2016 dated the wrong year? The code should not be P as P indicates a prior year. A P code on a 2016 1099R would indicate that the taxable wages would be increased for 2015, which is obviou...
by Alan S.
Sat Sep 02, 2017 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: 401k over contribution and 1099R
Replies: 19
Views: 1446

Re: 401k over contribution and 1099R

icedtea, There are two issues here. First, what happened to your money and second your 2016 tax return. Right now, only addressing the second issue which is filing your return using the W-2 and 1099R forms that were issued. Can you confirm what your 2016 W-2 forms total for Box 12 Code D? Was it 19,...
by Alan S.
Sat Sep 02, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Disclaiming Multiple IRAs
Replies: 14
Views: 1151

Re: Disclaiming Multiple IRAs

Given multiple combinations of accounts, beneficiaries, generation skipping, and potential disclaimers, the obvious question is whether VG is the best place for these IRAs. VG has by far more obscure beneficiary restrictions historically than other major IRA custodians. Disclaimers have a strict 9 m...
by Alan S.
Fri Sep 01, 2017 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: mega backdoor Roth 401k practical issues
Replies: 12
Views: 948

Re: mega backdoor Roth 401k practical issues

Be sure that the IRR is requested very clearly. Although an IRR can include the pre tax dollars in the 401k account as well as the after tax sub account, you will NOT normally want the IRR to include any of the pre tax portion of the account. Therefore, the request should be clearly limited to the r...
by Alan S.
Fri Sep 01, 2017 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: What happens if I over-contribute on a mega-backdoor Roth?
Replies: 2
Views: 319

Re: What happens if I over-contribute on a mega-backdoor Roth?

Hopefully, the plan will have controls in place to avoid after tax contributions from breaching either the annual additions limit (54k) or discrimination testing. In many cases, the plan limits your after tax contributions up front to reduce these violations. However, if the annual additions limit i...
by Alan S.
Wed Aug 30, 2017 8:08 pm
Forum: Investing - Theory, News & General
Topic: The Age 55 Rule for 401K Accounts
Replies: 38
Views: 6552

Re: The Age 55 Rule for 401K Accounts

Your dilemma is that you need a certain amount distributed for living expenses before you hit 59.5. There are different ways to go, but a plan which limits you to a lump sum distribution hems you in somewhat. You could distribute as much as you think you will need and roll over the rest, but two yea...
by Alan S.
Wed Aug 30, 2017 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Net Unrealized Appreciation (NUA) of company stock in 401k
Replies: 5
Views: 275

Re: Net Unrealized Appreciation (NUA) of company stock in 401k

Ok I've numbered them. Thanks for answering. Regarding answer 1: So in theory if the NUA cost basis was the only income the person had during the tax year, would it be taxed progressively, just like ordinary income, or would the whole amount be taxed at the marginal rate? I agree with geologist. If...