Search found 1452 matches

by Lynette
Thu Dec 14, 2017 7:12 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3546

Re: How does the IRS know the value of my 401K at end of year for RMDs

Thanks for your advice I did not take it as a criticism. I will likely take out slightly higher RMDS that Fidelity or Vanguard estimates as I'm neurotic about not paying enough taxes. Lynette, You really don't need to do "slightly higher". Fidelity or Vanguard don't "estimate" your RMDs they comput...
by Lynette
Thu Dec 14, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3546

Re: How does the IRS know the value of my 401K at end of year for RMDs

Just be safe. Do more than RMD. I think your 401k will tell you what the RMD number. Why would you take more than the RMD (unless you need the money for expenses or are doing a Roth conversion), and pay taxes on the withdrawal and lose the continued tax deferral on earnings? I did some market timin...
by Lynette
Wed Dec 13, 2017 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3546

Re: How does the IRS know the value of my 401K at end of year for RMDs

Thanks for answers and sorry for confusion. The only reason I'm rolling over my 401K in December, 2017 is because I want to be able to take QCDs in 2018 to lower my MAGI. I knew nothing about IRMAA before retiring. I was privileged to have a good healthcare package for which I paid about $2500 p.a. ...
by Lynette
Wed Dec 13, 2017 10:10 am
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3546

Re: How does the IRS know the value of my 401K at end of year for RMDs

pshonore wrote:
Wed Dec 13, 2017 10:05 am
And there's the fact that the first RMD can be deferred until April 1 of the following year. Does that apply for 401K RMDs and does it also apply to people who continue working past 70 1/2?
I worked till I was 73 and my 401K was with my employer so I did not have to take RMDs until I retired.
by Lynette
Wed Dec 13, 2017 10:03 am
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3546

Re: How does the IRS know the value of my 401K at end of year for RMDs

I took my RMD in January which my Megacorp designated as the required amount. I took a further distribution in June. I've started the rollover in December so that I can take QCDs next year. My confusion was how the IRS would know the balance on my 401K on 12/31/2016 to ensure that I had taken suffic...
by Lynette
Wed Dec 13, 2017 6:27 am
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3546

Re: How does the IRS know the value of my 401K at end of year for RMDs

Thank you for all of the assistance. The reason I asked the question is that I am in the process of rolling over my 401K to Vanguard and Fidelity IRA's. I wanted to know how the reporting worked so that I can fill in my 1040 correctly. I understand that the balance for my 401K at the end of 2016 nee...
by Lynette
Tue Dec 12, 2017 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3546

Re: How does the IRS know the value of my 401K at end of year for RMDs

Just be safe. Do more than RMD. I think your 401k will tell you what the RMD number. Why would you take more than the RMD (unless you need the money for expenses or are doing a Roth conversion), and pay taxes on the withdrawal and lose the continued tax deferral on earnings? I did some market timin...
by Lynette
Tue Dec 12, 2017 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3546

Re: How does the IRS know the value of my 401K at end of year for RMDs

Thanks - I'm sure I've taken out enough for 2017. :D I'm trying to figure out my taxes for 2017. Medicare created a new group so I have to pay additional IRMAA. Its difficult to plan one's taxes as they only made this change at the end of 2017 for 2018.
by Lynette
Tue Dec 12, 2017 7:18 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3546

How does the IRS know the value of my 401K at end of year for RMDs

How does the IRS know the value of my 401K / IRA at the end of the year to calculate RMDs? 2017 was the first year I had to take RMDs and my former employer calculated the amount of the RMD. I was wondering if that information is given to the IRS as I think there are large penalties if you do not ta...
by Lynette
Sat Dec 09, 2017 6:49 pm
Forum: Investing - Help with Personal Investments
Topic: Retire in my early 40s? Crazy or actually doable?
Replies: 71
Views: 8690

Re: Retire in my early 40s? Crazy or actually doable?

patriciamgr2: My health insurance plans: Plan A: Join my wife's health insurance plan through her employer Plan B: Buy into the ACA exchange. I have looked into it and annual premiums would be around 3K with OOP maximum of 7K Plan C: If ACA goes away and we don't have a nationalized health care sys...
by Lynette
Sat Dec 09, 2017 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity iShares vs Index Funds for Rollover IRA
Replies: 5
Views: 339

Re: Fidelity iShares vs Index Funds for Rollover IRA

On the other hand, I gather that some of the issues against ITOT are it may not have enough trades in a day and that the spread can be too large. ITOT typically gets $36 million in trades a day, with a usual spread of $0.02 (relative to around $60 share price). That's not as good as some alternativ...
by Lynette
Sat Dec 09, 2017 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity iShares vs Index Funds for Rollover IRA
Replies: 5
Views: 339

Re: Fidelity iShares vs Index Funds for Rollover IRA

How much fun can rebalancing once a year be? :happy I think your reasons to not use the ETF make sense. Look at what happened with TDA that recently got rid of free Vanguard ETF trades. To be honest, I likely trade a little more :D I also have a Vanguard Roth IRA and taxable so I have to work acros...
by Lynette
Sat Dec 09, 2017 11:31 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity iShares vs Index Funds for Rollover IRA
Replies: 5
Views: 339

Fidelity iShares vs Index Funds for Rollover IRA

I'm busy rolling over 50% of my 401K to Fidelity and 50% to Vanguard so that I can do QCDs to reduce my MAGI for IRMAA payments next year. From the Wiki, I find that I can either use Blackrock iShares or Fidelity Funds. Is there any strong reason to choose the one or the other? These are the choices...
by Lynette
Fri Dec 08, 2017 11:22 pm
Forum: Personal Consumer Issues
Topic: Moto G5 Plus: Software updates?
Replies: 76
Views: 3960

Re: Moto G5 Plus: Software updates?

Hi Victoria, If your phone is unlocked, you could go to any AT&T, Verizon or T-Mobile office. You can get a non-contract prepaid plan with them. They will put in the Sim for you as well as activate it. If you go in the off-hours when they are not busy, I'm sure that they will be happy to help you wi...
by Lynette
Fri Dec 08, 2017 9:55 am
Forum: Forum Issues and Administration
Topic: Thank you Admins
Replies: 18
Views: 1525

Re: Thank you Admins

Thanks and apologies for ranting because my IRMAA was unexpectedly increased.
by Lynette
Thu Dec 07, 2017 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: What did you do with your first RMD withdrawal money?
Replies: 63
Views: 4317

Re: What did you do with your first RMD withdrawal money?

I used part of it to fix up my house. The rest is in my checking account. I'm busy moving my 401K to Vanguard and Fidelity in equal amounts so that I can do some QCDs next year. I likely won't get it all done this year as I only started a few days ago and my former employer insists on sending the ch...
by Lynette
Tue Dec 05, 2017 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: Medicare and retirement for high earner
Replies: 49
Views: 2376

Re: Medicare and retirement for high earner

I also suggest to make lemonade out of lemon, convert your IRA to Roth IRA for the top of the income band. The reason is you already pay the penalty, ie the high premium, but let’s say your income for 2018 is $121k then you still have about $40k before you hit the next band. I worked till I was 73 ...
by Lynette
Tue Dec 05, 2017 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Medicare and retirement for high earner
Replies: 49
Views: 2376

Re: Medicare and retirement for high earner

My gripe with the system is that you only have to work for 40 quarters to get SS and medicare and pay the same as those who worked for 50 years. True - but such folks are overwhelmingly low or very low income. While the SS retirement system is slanted toward paying more to such individuals, nonethe...
by Lynette
Tue Dec 05, 2017 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Medicare and retirement for high earner
Replies: 49
Views: 2376

Re: Medicare and retirement for high earner

I also suggest to make lemonade out of lemon, convert your IRA to Roth IRA for the top of the income band. The reason is you already pay the penalty, ie the high premium, but let’s say your income for 2018 is $121k then you still have about $40k before you hit the next band. I worked till I was 73 ...
by Lynette
Tue Dec 05, 2017 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: Medicare and retirement for high earner
Replies: 49
Views: 2376

Re: Medicare and retirement for high earner

So IRMAA counts your last two year MGI. If you start take medicare at 65, you need to planning at 63. Single $85000, Married $170000. Let assume your MGI=RMD+SS+Pension+Dividend Cap gain+Roth Conversion. Thanks OP for the story. As someone who plans my whole life (till something changes :D ), I'd s...
by Lynette
Tue Dec 05, 2017 1:02 pm
Forum: Investing - Help with Personal Investments
Topic: Medicare and retirement for high earner
Replies: 49
Views: 2376

Re: Medicare and retirement for high earner

Nick, I agree with you that few know about the details of Medicare soon enough for it to make a difference to retirement planning. I did not know about IRMAA either and I'm interested in finance. I did not bother to look into the details of Medicare as none of my friends or work colleagues at my Meg...
by Lynette
Tue Dec 05, 2017 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Medicare and retirement for high earner
Replies: 49
Views: 2376

Re: Medicare and retirement for high earner

My gripe with the system is that you only have to work for 40 quarters to get SS and medicare and pay the same as those who worked for 50 years. True - but such folks are overwhelmingly low or very low income. While the SS retirement system is slanted toward paying more to such individuals, nonethe...
by Lynette
Tue Dec 05, 2017 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Medicare and retirement for high earner
Replies: 49
Views: 2376

Re: Medicare and retirement for high earner

My gripe with the system is that you only have to work for 40 quarters to get SS and medicare and pay the same as those who worked for 50 years.
by Lynette
Tue Dec 05, 2017 9:45 am
Forum: Investing - Help with Personal Investments
Topic: Medicare and retirement for high earner
Replies: 49
Views: 2376

Re: Medicare and retirement for high earner

Its particularly a bargain if you retire at 40 and then switch to Medicare at 65. As a friend of mine who also has pensions, is very healthy and pays IRMAA said, it is a welfare system. If I had a $1,000,000 house, second beach house with a lot in taxable that I did not churn, I would only have to p...
by Lynette
Tue Dec 05, 2017 9:12 am
Forum: Investing - Help with Personal Investments
Topic: Medicare and retirement for high earner
Replies: 49
Views: 2376

Re: Medicare and retirement for high earner

I have worked past the retirement age in the vain hope to get the house paid off and some cash on hand. I sat down with an insurance specialist and went over the various PARTS of Medicare. Part B,D + Supplemental and eye and vision. The insurance person asked me a million question which I answered....
by Lynette
Mon Dec 04, 2017 9:32 pm
Forum: Personal Consumer Issues
Topic: When & how much to donate?
Replies: 108
Views: 8401

Re: When & how much to donate?

Whatever you donate is up to you. $100 is fine. Anything is fine. What you don't want to do is donate to feel good about yourself. Or to tell others you donate. Or to take it off your taxes. The charitable tax deduction is a legitimate benefit that the government has made available, and there's a s...
by Lynette
Mon Dec 04, 2017 10:11 am
Forum: Investing - Theory, News & General
Topic: One answer to the Dividend stocks puzzle from behavioral finance
Replies: 166
Views: 9128

Re: One answer to the Dividend stocks puzzle from behavioral finance

I don't want no stinkin' dividends. If you don't want them, you can send them to me. :D :D Problem is I have to pay tax on them. I don't want them as it is messing up my tax planning. I have to pay taxes on dividends whether I need them or not. At this stage of my life, I'm living on pensions and S...
by Lynette
Sun Dec 03, 2017 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: How do QCDs relate to RMDs?
Replies: 22
Views: 1270

Re: How do QCDs relate to RMDs?

OK, thanks, I think I get it. For example, suppose my total RMD from my tIRA accounts is $20K and suppose that I want to donate $5K to charities. If I distribute $20K in RMDs and then donate $5K to charities from taxable accounts, my adjusted gross income (AGI) is increased by $20K. If my itemized ...
by Lynette
Sun Dec 03, 2017 7:12 pm
Forum: Personal Consumer Issues
Topic: New Medicare Retirement Plan
Replies: 5
Views: 894

Re: New Medicare Retirement Plan

Don't they have a website with the options? Each year I visit One Exchange to see what the choices are and how much they cost in my area. Both my former employers use One Exchange so there was confusion! I can change my selections online. I get Medigap payment from the HRA - till it runs out and for...
by Lynette
Sun Dec 03, 2017 1:49 pm
Forum: Personal Consumer Issues
Topic: Moto G5 Plus: Software updates?
Replies: 76
Views: 3960

Re: Moto G5 Plus: Software updates?

deleted.
by Lynette
Sat Dec 02, 2017 10:25 pm
Forum: Personal Finance (Not Investing)
Topic: How do QCDs relate to RMDs?
Replies: 22
Views: 1270

Re: How do QCDs relate to RMDs?

If the OP's questions are answered, may I ask another one related to QCD's. Is it correct that a QCD can only be taken from an IRA and not a 401K? In that case I would have to rollover my 401K to an IRA. Can I do a rollover in 2018 before I've done an RMD? Its already late in the year and time is li...
by Lynette
Sat Dec 02, 2017 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: How are SPIA's taxed if taken from taxable or taxed deferred?
Replies: 31
Views: 1712

Re: How are SPIA's taxed if taken from taxable or taxed deferred?

The problem is that if I drop B, I think I will have to pay a substantial penalty if/when I want it again. For Medigap, I would have to might need medical underwriting. Its not about affordability (I get a supplement of $5,000 from two former employers) but irritation at myself for working till 73 ...
by Lynette
Sat Dec 02, 2017 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: Currently have $700,000 at 26 years old get $100,000 a year
Replies: 165
Views: 25892

Re: Currently have $700,000 at 26 years old get $100,000 a year

Do understand that even with an inheritance, medical expenses in old age become very expensive. If you don't work you will not be eligible for Medicare or Social Security. In your older years, you could be paying really high fees for medical coverage. Couldn’t I just buy health insurance? Right now...
by Lynette
Sat Dec 02, 2017 6:05 pm
Forum: Investing - Help with Personal Investments
Topic: Currently have $700,000 at 26 years old get $100,000 a year
Replies: 165
Views: 25892

Re: Currently have $700,000 at 26 years old get $100,000 a year

Do understand that even with an inheritance, medical expenses in old age become very expensive. If you don't work you will not be eligible for Medicare or Social Security. In your older years, you could be paying really high fees for medical coverage.
by Lynette
Sat Dec 02, 2017 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: How are SPIA's taxed if taken from taxable or taxed deferred?
Replies: 31
Views: 1712

Re: How are SPIA's taxed if taken from taxable or taxed deferred?

The problem is that if I drop B, I think I will have to pay a substantial penalty if/when I want it again. For Medigap, I would have to might need medical underwriting. Its not about affordability (I get a supplement of $5,000 from two former employers) but irritation at myself for working till 73 ...
by Lynette
Sat Dec 02, 2017 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: How are SPIA's taxed if taken from taxable or taxed deferred?
Replies: 31
Views: 1712

Re: How are SPIA's taxed if taken from taxable or taxed deferred?

The problem is that if I drop B, I think I will have to pay a substantial penalty if/when I want it again. For Medigap, I would have to might need medical underwriting. Its not about affordability (I get a supplement of $5,000 from two former employers) but irritation at myself for working till 73 a...
by Lynette
Sat Dec 02, 2017 8:56 am
Forum: Personal Finance (Not Investing)
Topic: How are SPIA's taxed if taken from taxable or taxed deferred?
Replies: 31
Views: 1712

Re: How are SPIA's taxed if taken from taxable or taxed deferred?

Thanks. I would likely pay for one out of my savings as I"m trying to avoid going into the next IRMAA bracket. Over time my pensions with inflation, my pensions won't be worth as much - or subject to as much IRMAA but then RMDs will grow. :oops:
by Lynette
Sat Dec 02, 2017 8:50 am
Forum: Local Chapters and Bogleheads Community
Topic: Local Chapters - What to Discuss / What's the Point?
Replies: 13
Views: 841

Re: Local Chapters - What to Discuss / What's the Point?

Hi, Thanks for organizing the local group. Happy hour? (tongue in cheek :D ). I don't know if there are too many presentations, that it gives people the chance to mingle. We are grateful for your efforts and the kind people who give us a room to meet. But with constructions, it takes me an hour to g...
by Lynette
Thu Nov 30, 2017 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: How are SPIA's taxed if taken from taxable or taxed deferred?
Replies: 31
Views: 1712

Re: How are SPIA's taxed if taken from taxable or taxed deferred?

Thanks Alan. It is also my understanding that the payout of a SPIA may increase if the tax rate goes up. Also when I'm older the payout will will be higher so it may be worth waiting a while. How do tax rates affect the payout of an annuity? Do you mean interest rates? Gill Sorry, I meant interest ...
by Lynette
Thu Nov 30, 2017 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: How are SPIA's taxed if taken from taxable or taxed deferred?
Replies: 31
Views: 1712

Re: How are SPIA's taxed if taken from taxable or taxed deferred?

Thanks Alan. It is also my understanding that the payout of a SPIA may increase if the tax rate goes up. Also when I'm older the payout will will be higher so it may be worth waiting a while.
by Lynette
Thu Nov 30, 2017 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: How are SPIA's taxed if taken from taxable or taxed deferred?
Replies: 31
Views: 1712

Re: How are SPIA's taxed if taken from taxable or taxed deferred?

Thanks for the information. It might be worthwhile for me to do a Roth conversion all in one year and pay the max tax and IRMAA. My pensions and full SS are about $100,000 p.a. so it will be impossible to stay out of the first IRMAA group that starts at $85,000. Otherwise I might land up paying the ...
by Lynette
Thu Nov 30, 2017 11:15 am
Forum: Personal Finance (Not Investing)
Topic: How are SPIA's taxed if taken from taxable or taxed deferred?
Replies: 31
Views: 1712

Re: How are SPIA's taxed if taken from taxable or taxed deferred?

Hi Lynette, If you purchase a SPIA with after tax funds, the payments will be partly taxable as ordinary income, partly not taxable. When you get a quote, you will see something called the exclusion ratio. That is the amount that is non taxable. You can run a rough quote at a site like www.immediat...
by Lynette
Thu Nov 30, 2017 9:35 am
Forum: Personal Finance (Not Investing)
Topic: How are SPIA's taxed if taken from taxable or taxed deferred?
Replies: 31
Views: 1712

How are SPIA's taxed if taken from taxable or taxed deferred?

My tax planning for retirement was really lousy. I worked until 73 so that my pensions would grow. I was not aware of Medicare B and D IRMAA. My pensions are worth much less now because of heavy taxation on them that also affect my SS and they are not subject to COLA. Medicare B and D IRMAA premiums...
by Lynette
Tue Nov 28, 2017 6:09 pm
Forum: Personal Consumer Issues
Topic: 2018 Goals - Financial or Otherwise
Replies: 67
Views: 5097

Re: 2018 Goals - Financial or Otherwise

I've come to terms with having to pay more Medicare B & D premiums so this is no longer a goal. 1. Continue to exercise every day at my Health Club and take more Yoga and Pilates classes. I'm an early bird so have to make an effort to attend these classes that are later. 2. Swim at least three times...
by Lynette
Tue Nov 28, 2017 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Part B premium unchanged for 2018
Replies: 52
Views: 3698

Re: Medicare Part B premium unchanged for 2018

I'm aware of QCDS. I've decided to simply pay the tax and make charitable donations as I itemize. If tax laws change, I may reconsider but I'm all for a quiet and simple life as far as taxes are concerned. QCDs will lower your MAGI; deductible donations do not. So, QCDs might lower your IRMAA payme...
by Lynette
Tue Nov 28, 2017 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Part B premium unchanged for 2018
Replies: 52
Views: 3698

Re: Medicare Part B premium unchanged for 2018

Yes, financially it would be a very good move but I have lived here for nearly 40 years and have friends here. Also Medicare does not pay overseas. In addition, do you know what a pain it is to have to deal with submitting tax forms to two countries etc. etc. At this stage it is no longer desirable ...
by Lynette
Tue Nov 28, 2017 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Part B premium unchanged for 2018
Replies: 52
Views: 3698

Re: Medicare Part B premium unchanged for 2018

I thought I would relocate which is why I went with Medicap G. My doctor followed the rules of the HMO not Medicare. I worked so yes he was wrong. I'll have to get over my bad mood about increase in IRMAA premiums. I worked until I was 73 and gave a lot of money to a charitable cause in another coun...
by Lynette
Tue Nov 28, 2017 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Part B premium unchanged for 2018
Replies: 52
Views: 3698

Re: Medicare Part B premium unchanged for 2018

No, next year I will be taxed on my pensions, SS and RMDs. I did lousy tax planning - working longer for pensions and putting money into tax deferred. If I get dividends or sell anything in taxable this will increase my MAGI. I think I'll still have to pay about the same. OK, but you then have the ...
by Lynette
Tue Nov 28, 2017 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Part B premium unchanged for 2018
Replies: 52
Views: 3698

Re: Medicare Part B premium unchanged for 2018

No, next year I will be taxed on my pensions, SS and RMDs. I did lousy tax planning - working longer for pensions and putting money into tax deferred. If I get dividends or sell anything in taxable this will increase my MAGI. I think I'll still have to pay about the same. OK, but you then have the ...