Search found 6424 matches

by Alan S.
Fri Mar 24, 2017 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Follow up: What is RMD for wife (61) after death of husband (72)
Replies: 7
Views: 881

Re: Follow up: What is RMD for wife (61) after death of husband (72)

The IRA annuity cannot be in the accumulation stage unless other IRA funds were being transferred into it. Any automatic transfers should be stopped ASAP after his date of death since his authorization to do those transfers no longer is valid in most cases. The current creditor protection limit for ...
by Alan S.
Thu Mar 23, 2017 10:36 pm
Forum: Investing - Help with Personal Investments
Topic: Ameriprise/RiverSource inherited annuity 1035 help/questions....
Replies: 9
Views: 401

Re: Ameriprise/RiverSource inherited annuity 1035 help/questions....

Here is an article by Michael Kitces outlining the PLR from 2013 that approved 1035 exchanges for inherited annuities: https://www.kitces.com/blog/irs-opens-door-in-plr-201330016-for-1035-exchange-by-beneficiary-of-fixed-and-variable-inherited-annuities/ There is also an article on VG's site that ma...
by Alan S.
Thu Mar 23, 2017 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: Recharacterization Roth back to TIRA
Replies: 14
Views: 1707

Re: Recharacterization Roth back to TIRA

You are correct. You need the 8606 to report the portion of the conversion you retained. Also correct on 15a and 15b. 15a will match the 1099R reporting the conversion and 15b will be the amount from Form 8606 line 18. You also need to attach an explanatory statement indicating the date and amount o...
by Alan S.
Thu Mar 23, 2017 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: Overcontribution and HCE refund for same year
Replies: 1
Views: 75

Re: Overcontribution and HCE refund for same year

I cannot locate the reg that addresses this, but it appears that the plan 1099R reporting should avoid duplicate amounts. They would likely proceed according to which distribution was processed first. In your case that was evidently the excess contributions to HCEs. When you contact them regarding t...
by Alan S.
Wed Mar 22, 2017 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: QCD and H&R Block tax Software
Replies: 8
Views: 450

Re: QCD and H&R Block tax Software

That harmless looking IRA/SEP/SIMPLE portion of Box 7 is critical to how tax software treats the code shown in Box 7. If that box is not completed properly by the issuer or not entered correctly by the tax preparer, the result will be badly skewed in many situations. For example, for an IRA distribu...
by Alan S.
Wed Mar 22, 2017 9:56 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss harvesting wash sale rules with an HSA?
Replies: 7
Views: 1133

Re: Tax Loss harvesting wash sale rules with an HSA?

Should the unlikely occur, you would just not buy any additional such securities in your HSA that you hold in your taxable accounts. Or if you did, you would do so outside the wash sale window. Incidentally, should you want to read more on this topic, here is the actual IRS Revenue Ruling regarding ...
by Alan S.
Wed Mar 22, 2017 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI for Roth IRA Purposes
Replies: 3
Views: 408

Re: MAGI for Roth IRA Purposes

I agree, you are correct. If you do not have pre tax non Roth IRAs, you should just do the back door procedure in the future. Make a non deductible contribution and convert it right away. That eliminates all the MAGI hassle and excess contributions. Also, if you can do this you can contribute a year...
by Alan S.
Wed Mar 22, 2017 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: converting part of 401k to Roth 401k
Replies: 4
Views: 362

Re: converting part of 401k to Roth 401k

You can undo a Roth IRA conversion by recharacterization, but you cannot recharacterize an IRR (401k to Roth 401k rollover). Therefore, you need to be a little more careful before you pull the trigger on the IRR. This becomes a factor not only for the taxes due or bracket you end up in, but also wit...
by Alan S.
Wed Mar 22, 2017 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Inheriting an IRA versus a Roth IRA
Replies: 1
Views: 146

Re: Inheriting an IRA versus a Roth IRA

My mother is currently at the end of life and will be leaving my sibling and my self an IRA currently worth $320,000 and $150,000 in cash. My sibling and I are both in a high federal tax bracket (35% and 39.6% respectively) and live in high tax states. Our mom has a very low income. Questions: 1. W...
by Alan S.
Mon Mar 20, 2017 10:32 pm
Forum: Investing - Help with Personal Investments
Topic: Yet another mega backdoor rollover question
Replies: 8
Views: 380

Re: Yet another mega backdoor rollover question

Yes, I was asking about earnings in the after tax sub account being rolled into the pre tax account. And if that were not allowed when doing an IRR, if those earnings could be rolled into a TIRA. An increasing number of accounts only allow IRRs, not rollovers to Roth IRAs, but it is not clear what t...
by Alan S.
Mon Mar 20, 2017 9:55 pm
Forum: Investing - Help with Personal Investments
Topic: Maximum contribution for 403B, 457 & SEP IRA combined?
Replies: 12
Views: 382

Re: Maximum contribution for 403B, 457 & SEP IRA combined?

I'm not sure I've ever been wrong before, this may be a first, but I'll ask my wife. I'm pretty surprised by this and after searching Google there are absolutely differing opinions (Ed slot, Fairmark agree with me). I actually used to work with HCEs who participated in multiple non profit plans and...
by Alan S.
Mon Mar 20, 2017 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: 2016 Saver's Credit + My Stupidity = No Saver's Credit?
Replies: 10
Views: 1427

Re: 2016 Saver's Credit + My Stupidity = No Saver's Credit?

Agree with above, except if the 2016 contribution is returned with allocated earnings, the earnings are taxable and subject to penalty on your 2017 return, not your 2016 return. Earnings are taxable IN the year you made the contribution, not FOR the year. You made the contribution in 2017 and so rec...
by Alan S.
Mon Mar 20, 2017 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Can Vanguard roll a pention plan to Roth IRA directly?
Replies: 13
Views: 672

Re: Can Vanguard roll a pention plan to Roth IRA directly?

Generally speaking, if you have basis from after tax contributions in either your TIRA or your pension plan, you should convert from the plan with the highest % basis. This will reduce the taxable amount of the rollover. For tax reporting: 1) Rollover directly from employer plan to Roth IRA - report...
by Alan S.
Mon Mar 20, 2017 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Roth IRA contribution withdrawal schedule
Replies: 5
Views: 265

Re: Help with Roth IRA contribution withdrawal schedule

In addition to the 5k of regular Roth IRA contributions you made, add the amount from Box 5 of the H coded 1099R reporting the Roth 401k rollover to the 5k. This box 5 amount could be either more or less than the amount of the rollover in Box 1. That total (5k plus Box 5) is treated as regular Roth ...
by Alan S.
Mon Mar 20, 2017 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Excess Contributions
Replies: 10
Views: 845

Re: Roth IRA Excess Contributions

I suggest no later than early December to avoid the risk that the distribution is not done before year end. That would trigger another year of excise taxes.
by Alan S.
Mon Mar 20, 2017 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: State Farm
Replies: 34
Views: 2154

Re: State Farm

Insurance rates are heavily local by way of rate territories. A couple years back after several State Farm rate increases, I moved my HO to Travelers and Auto to 21st Century, a combination that I did not anticipate. I prefer having both coverages in the same company, but even with a multi policy di...
by Alan S.
Mon Mar 20, 2017 12:10 pm
Forum: Investing - Help with Personal Investments
Topic: Yet another mega backdoor rollover question
Replies: 8
Views: 380

Re: Yet another mega backdoor rollover question

The after tax sub account can generally utilize a split rollover per Notice 2014-54 in which the contributions go to the Roth IRA and any earnings to your TIRA. Now that some plans want to retain 401k assets and IRRs are becoming more commonplace, I wonder how many plans offer the option of using No...
by Alan S.
Sun Mar 19, 2017 10:48 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Excess Contributions
Replies: 10
Views: 845

Re: Roth IRA Excess Contributions

They need a lot of training over there. I always suggest when you are correcting an excess contribution AFTER the due date as you are, to NOT mention anything about excess contributions to the IRA custodian. Most of them only understand corrective distributions BEFORE the due date. You do not have t...
by Alan S.
Sat Mar 18, 2017 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy for investing inherited IRA with RMDs
Replies: 20
Views: 974

Re: Strategy for investing inherited IRA with RMDs

Knowing the RMD amount just allows easier tax planning for the year as that income is known up front. Things like earnings or mutual fund distributions are not always predictable and can result in tax surprises or underpayment penalties. The following comments only apply to the portion of your inher...
by Alan S.
Sat Mar 18, 2017 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: Rollover Pension Plan to IRA or Roth IRA
Replies: 8
Views: 551

Re: Rollover Pension Plan to IRA or Roth IRA

Thanks, all. I plan to roll it over to Vanguard Roth IRA. What kind of forms should I expect from both the old admin for my pension plan and Vanguard? I know I will get 1099 R for the distribution. Will I get anything from Vanguard for the rollover? The plan will send you a 1099R with the taxable a...
by Alan S.
Sat Mar 18, 2017 10:09 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy for investing inherited IRA with RMDs
Replies: 20
Views: 974

Re: Strategy for investing inherited IRA with RMDs

It wasn't totally clear whether or not you understand that your annual inherited IRA RMD divisor is reduced by 1.0 each year after determining the first year divisor from Table I. Therefore, there is no need to ever check the table again. This depletes the inherited IRA faster than getting each divi...
by Alan S.
Sat Mar 18, 2017 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Recharacterization madness: Roth excess contribution --> TIRA --> Roth
Replies: 17
Views: 970

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

If you were sure that your 2017 MAGI would allow a full Roth contribution, you could ask for a return of enough of your 2017 contribution to create the space to apply your 2016 excess to 2017. But since your MAGI seems destined to be in or around the phaseout range for 2017 and beyond, there is not ...
by Alan S.
Fri Mar 17, 2017 10:26 pm
Forum: Investing - Help with Personal Investments
Topic: TSP withdrawal
Replies: 17
Views: 1608

Re: TSP withdrawal

Well, I found out the date that IRS looks at for deductible and non-deductible prorate is Dec 31. So I missed the window for 2016. How are you going to "separate the regular TSP assets from the Roth TSP assets into separate traditional and Roth Vanguard IRAs" in step 2? 12/31 is the date ...
by Alan S.
Fri Mar 17, 2017 8:18 pm
Forum: Investing - Help with Personal Investments
Topic: 401k to Roth IRA transfer
Replies: 4
Views: 204

Re: 401k to Roth IRA transfer

If you wanted to do a direct rollover from your 401k to your Roth IRA, and your plan and age permitted it you could do that. This is essentially a conversion and will be taxable, just like a converting a TIRA to a Roth IRA. But this has nothing at all to do with regular Roth contributions or catchup...
by Alan S.
Fri Mar 17, 2017 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: Can I cancel a recent IRA contribution?
Replies: 13
Views: 969

Re: Can I cancel a recent IRA contribution?

Reporting recharacterization situations is outlined with some examples in the 8606 Instructions. Now that you have recharacterized your conversion, you can still request a return of your TIRA contribution with any earnings. Your amended 2016 return will be the same as described earlier. You do not r...
by Alan S.
Fri Mar 17, 2017 1:36 pm
Forum: Investing - Help with Personal Investments
Topic: Can I cancel a recent IRA contribution?
Replies: 13
Views: 969

Re: Can I cancel a recent IRA contribution?

Following up on prior discussion, what if you make nondeductible contribution to traditional IRA in early 2017 and designate the funds as a 2016 contribution, file your 2016 return, including form 8606 showing the nondeductible contribution, and then decide to withdraw the funds? Would you amend yo...
by Alan S.
Fri Mar 17, 2017 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: Not Withdrawing HSA Excess Contribution
Replies: 4
Views: 357

Re: Not Withdrawing HSA Excess Contribution

With regards to point 2 . Do you mean to say that I will pay the Income Tax and Penalty on Excess Contribution in my 2016 Return ( as the over contribution happened in 2016) and then i will pay the Income Tax again( one 2017 return) on the same over contributed money , when i withdraw that money fo...
by Alan S.
Thu Mar 16, 2017 10:48 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth IRA conversion - is my technique allowed?
Replies: 12
Views: 963

Re: Backdoor Roth IRA conversion - is my technique allowed?

If your MAGI for regular Roth IRA contribution purposes is too high for the 4,000 Roth contribution, you can still recharacterize that contribution as a non deductible TIRA contribution and convert back to Roth. While you can do this, it would have been easier to have just contributed the entire 550...
by Alan S.
Thu Mar 16, 2017 10:37 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Help
Replies: 19
Views: 1200

Re: Backdoor Roth Help

It is isolated since the rollover to the Roth IRA is not going through a TIRA account. It is going directly from a qualified plan to your Roth IRA. An IRR functions in much the same way. You make employee after tax contributions to your 401k and if your plan allows IRRs but does not allow distributi...
by Alan S.
Thu Mar 16, 2017 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: Not Withdrawing HSA Excess Contribution
Replies: 4
Views: 357

Re: Not Withdrawing HSA Excess Contribution

I have around 500$ ( Total 1500$ balance , Only have 1 HSA Account ) of Excess Contribution in my HSA account from 2016. I am not eligible for an HSA account anymore ( I was only eligible from May 2016 to Oct 2016) . What are my options ? 1. I request the HSA bank now to return me the excess contri...
by Alan S.
Thu Mar 16, 2017 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand 1099-R
Replies: 3
Views: 343

Re: Trying to understand 1099-R

The return of your excess contributions plus earnings will be taxable in the year received (2017). The amount distributed will be added to your line 7 wages for 2017 and there is no 10% penalty. Also, you cannot roll the amount you receive to an IRA because it is not eligible. For 2017, just enterin...
by Alan S.
Thu Mar 16, 2017 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: Undo a recharacterization
Replies: 12
Views: 466

Re: Undo a recharacterization

As you do not want the Roth rollover, just request that Vanguard recharacterize that rollover to a VG TIRA account. That will erase any taxes due on the Roth rollover. You will have to include an explanatory statement with your 2016 return indicating the date and amount of the Roth rollover, that yo...
by Alan S.
Thu Mar 16, 2017 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Characterization and Back Door Plan – Please check my logic?
Replies: 2
Views: 173

Re: Roth Characterization and Back Door Plan – Please check my logic?

It is not clear exactly whether you have done these transactions or just plan to do them. If your MAGI is in the Roth contribution phaseout range, and because contributions you made more than a year probably now have impressive gains, you would not recharacterize any more of your contributions than ...
by Alan S.
Thu Mar 16, 2017 7:05 pm
Forum: Investing - Help with Personal Investments
Topic: Undo a recharacterization
Replies: 12
Views: 466

Re: Undo a recharacterization

This is a strange one. Please clarify if this is correct. You wanted a direct rollover to your Roth IRA and that is why you requested withholding (withholding on Roth rollovers is not a good idea). Then due to some miscommunication, the direct rollover check went into your VG TIRA. You then converte...
by Alan S.
Thu Mar 16, 2017 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: TSP withdrawal
Replies: 17
Views: 1608

Re: TSP withdrawal

Re creditor protection - IRA creditor protection is a function of state law and most states fully protect owned IRAs (not inherited) from creditors. A couple states do not provide equal protection for Roth IRAs as for TIRAs. Some states use the federal bankruptcy Act with or without modifications. U...
by Alan S.
Thu Mar 16, 2017 6:22 pm
Forum: Investing - Help with Personal Investments
Topic: TSP withdrawal
Replies: 17
Views: 1608

Re: TSP withdrawal

So step 3 is NOT to circumvent some TSP peculiarity. Upon withdrawal, how does TSP determine the proportion of traditional vs. Roth? Is it based on contributions from way back when? It would be based on the current pre tax and Roth account balances. For example, if your Roth contains 40k and pre ta...
by Alan S.
Wed Mar 15, 2017 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: Help finding deceased grandparents money
Replies: 4
Views: 777

Re: Help finding deceased grandparents money

As far as your item 3: it is possible that some of their accounts have gone though the escheatment process (abandoned property that is turned over to the the state after a certain time period, usually 3 - 5 years). You can look for accounts in your grandparents names that have gone through the esch...
by Alan S.
Wed Mar 15, 2017 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: IRA RMDS
Replies: 8
Views: 531

Re: IRA RMDS

What is the rule for people with multiple IRA accounts older than age 70 1/2. Must they take a RMD from EACH account, or is there a way to make the calculation, recognizing the total amount in all of the accounts, but just taking the required amount from one of the accounts? In determining the RMD ...
by Alan S.
Wed Mar 15, 2017 5:49 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Rollovers
Replies: 3
Views: 251

Re: IRA Rollovers

Yes, you have the choice to roll the SIMPLE IRA over to either a TIRA or a Roth IRA. The Roth conversion will of course be taxable, so the best decision on which IRA type to roll the SIMPLE into is based on the comparison of the marginal rate you would pay for the conversion to the marginal rate you...
by Alan S.
Tue Mar 14, 2017 8:00 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Transfer into TSP?
Replies: 18
Views: 624

Re: IRA Transfer into TSP?

Just be totally sure that your 2017 MAGI will be low enough to deduct the TIRA contribution recharacterized from a Roth contribution. If at year end it turns out that you cannot deduct the contribution and you have already rolled that money into the TSP, then you have a nasty problem because the TSP...
by Alan S.
Tue Mar 14, 2017 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: Smallish IRA conversion
Replies: 6
Views: 413

Re: Smallish IRA conversion

Assuming the contributions to the tIRA pre-tax (ie, the contributions were deducted from income for tax purposes during the year(s) the contributions were made), then: 1. this account could be rolled over to her current 401k (assuming her current 401k allows incoming rollovers), without any tax imp...
by Alan S.
Tue Mar 14, 2017 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: TSP withdrawal
Replies: 17
Views: 1608

Re: TSP withdrawal

Of course, in a TSP RMD distribution year you would have to take your TSP RMD first and none of it is eligible for rollover. You could then take an additional partial (or full) distribution as a direct rollover to your TIRA and Roth IRAs respectively. Assuming you do not have a prior TIRA balance an...
by Alan S.
Tue Mar 14, 2017 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Superfunding a Roth
Replies: 24
Views: 2152

Re: Superfunding a Roth

There are two plan models for IRRs. 1) Plan allows IRRs only of "otherwise distributable amounts" (ODAs). This is easier for plan accounting to handle. It also means that the IRR money can still be distributed from the Roth 401k if participant desires. 2) Plan allows IRRs of both ODAs and ...
by Alan S.
Tue Mar 14, 2017 11:54 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion Question
Replies: 1
Views: 118

Re: Roth Conversion Question

You can convert "in kind" by transferring various holdings to your Roth IRA. The conversion amount will be based on the market value of the holdings at the time the custodian processes the conversion distribution, so you probably will not be able to select an exact dollar value for the con...
by Alan S.
Mon Mar 13, 2017 10:26 pm
Forum: Personal Consumer Issues
Topic: Do Whole House Humidifiers Work?
Replies: 50
Views: 37796

Re: Do Whole House Humidifiers Work?

I had one installed at my last place. I never did any formal tests, but felt it didn't perform anywhere near a standalone humidifier. Friends have told me they work because when they turn theirs up, their windows get condensation. I never had any condensation. I have condensation on certain windows...
by Alan S.
Mon Mar 13, 2017 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: Tax reporting of returned excess 401k deferral
Replies: 5
Views: 402

Re: Tax reporting of returned excess 401k deferral

Due to multiple employers during the last year, I ended up contributing ~$1k over the $18k 401k limit for 2016. 1) I asked my current employer to tell Fidelity to return the excess deferral. They did, I got the check, and deposited it in the bank account. 2) The excess deferral of $1k is taxable in...
by Alan S.
Mon Mar 13, 2017 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: Recharacterization madness: Roth excess contribution --> TIRA --> Roth
Replies: 17
Views: 970

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

Any help on this one? I got through to Vanguard and they said they couldn't tell me the gains on the excess contribution until the next day. They said I needed to decide if I wanted to do a recharacterization to TIRA or just remove the excess and gains before they would be able to process this and ...
by Alan S.
Mon Mar 13, 2017 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Help
Replies: 19
Views: 1200

Re: Backdoor Roth Help

Your IRA basis is simply the amount of non deductible contributions you made. Each year you made a non deductible contribution you needed to file Form 8606 to report it. Form 8606 is cumulative so each new year updates your total basis from non deductible contributions. If you did not file these for...
by Alan S.
Mon Mar 13, 2017 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Early withdrawal of backdoor Roth IRA - form 8606
Replies: 4
Views: 218

Re: Early withdrawal of backdoor Roth IRA - form 8606

Duckie is correct. Line 24 should be 11k. This is Roth IRA conversion basis since you did a conversion of your non deductible TIRA contributions. It does not matter whether this conversion was taxable or was non taxable as in your conversions. Line 25 will therefore be 0 and you will not have any ta...
by Alan S.
Mon Mar 13, 2017 5:51 pm
Forum: Investing - Help with Personal Investments
Topic: convert 403bf unds to Roth IRA with Vanguard?
Replies: 2
Views: 132

Re: convert 403bf unds to Roth IRA with Vanguard?

Since these are institutional shares, any IRA rollover will probably require liquidation to cash. But you main question is whether to do a direct rollover to a Roth IRA or to a TIRA. This is the same issue as any Roth conversion - what marginal tax rate will apply compared to the estimated tax rate ...

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