Search found 10 matches

by ximmortla
Thu Mar 08, 2018 5:30 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes for deceased w/ SS and VA income
Replies: 2
Views: 434

Re: Taxes for deceased w/ SS and VA income

Thank you for the helpful information and advice!

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by ximmortla
Sun Mar 04, 2018 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Taxes for deceased w/ SS and VA income
Replies: 2
Views: 434

Taxes for deceased w/ SS and VA income

Hi all!

First, thanks to anyone that can help me figure all this out.

My mother passed away in 11/2017. She was a resident of WV. I don't believe that she had filed taxes since 2010 when her income became solely social security and VA benefits of about $2,850/month $1,600 is from social security. I'm trying to figure out the following:

1. Should she have been filing taxes over the years, state/federal?
- I think the answer is no, because VA benefits are supposedly not taxable and the social security was < 20,000 for the year.
2. I liquidated remaining stocks < $30,000 for the estate, should I file taxes for for her for 2017?
3. Anything else that I might not be aware of?

Thanks!!!

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by ximmortla
Sat Mar 18, 2017 2:54 pm
Forum: Personal Investments
Topic: Backdoor Roth IRA Contributions
Replies: 19
Views: 2233

Re: Backdoor Roth IRA Contributions

I thought I would ask a follow-on question here as it would document the whole process of undoing a botched backdoor-IRA contribution.

Contributions for 2016 were made and undone, but I received a 1099-R during the process. How do I deal with this on my taxes? Is there another form to be filled out, or do I just omit it and assume that the broker will not file with the IRS? I'm hopeful that I will not even get a 1099-R for 2017 as it should be like it never happened.

Thanks!
by ximmortla
Tue Feb 14, 2017 3:07 pm
Forum: Personal Investments
Topic: Backdoor Roth IRA Contributions
Replies: 19
Views: 2233

Re: Backdoor Roth IRA Contributions

The only thing that comes to mind is that you probably do not want to make non-deductible contributions to your IRA. Agree, as you mentioned before I'll be stuck with a 8606 form for the rest of the tIRA's life. I doubt there would be a lot of gains to pay tax on. Yes, he mentioned gains, so I would be good to cover that part. You have not mentioned it yet, but I hope you are considering moving your money to somewhere else. Are you willing to share which "very well known company" this is and how much you are paying them to help you make these bad decisions? I don't know about moving yet. The whole reason I moved in Oct. 2016 was the other company's mutual funds were losing me too much money and didn't have individual stock choice...
by ximmortla
Tue Feb 14, 2017 11:14 am
Forum: Personal Investments
Topic: Backdoor Roth IRA Contributions
Replies: 19
Views: 2233

Re: Backdoor Roth IRA Contributions

I've got another question... Thanks in advance!

So the advisor is offering two options:

1. Re-characterize the rIRA as a tIRA
2. Roll everything all the way back to the Joint account

#1 seems straight forward, no taxes to be paid...
#2 there are taxes to be paid on the gains and maybe other unknowns, he is working to figure out how much the "company" is willing to cover, which is currently up in the air.

Can you please offer pros/cons for these options, other than I would have non-deductible contributions in my tIRA with #1

Thanks!
by ximmortla
Mon Feb 13, 2017 8:27 pm
Forum: Personal Investments
Topic: Backdoor Roth IRA Contributions
Replies: 19
Views: 2233

Re: Backdoor Roth IRA Contributions

Most people in their 70's and 80's and 90's are wanting things to be simpler, not more complex. And even people in their 40's! Thanks so much for pointing this out. I contacted my adviser today and asked to back everything out, and requested that all costs incurred with such be covered by his company. He assumed it would be a couple hundred, so hopefully that is not an issue. You should know that some 401k plans are very picky about the IRAs they allow to be rolled in. Find out as much as you can about that. I'm still trying to figure out my 401k options - thanks Duckie! If you want to unwind this back to the beginning, you have until tax day (April 18 I think) to get a return on your 2016 IRA contribution. After that, I'm not sure. I need...
by ximmortla
Sun Feb 12, 2017 7:56 am
Forum: Personal Investments
Topic: Backdoor Roth IRA Contributions
Replies: 19
Views: 2233

Re: Backdoor Roth IRA Contributions

Duckie wrote:Can you roll the TIRA assets into a current employer plan like a 401k?
Thanks so much for this suggestion! This is interesting and I will find out. I know that there is a maximum contribution to a 401k per year. Would a rollover to a 401k count against this contribution? Would there be additional fees to rollover to a 401k?

By the way, I think this answer's my question about the whether the adviser messed things up by rolling over my spouses previous employer 401k to a tIRA (currently the larger tIRA) before trying to convert the Joint into a rIRA, ugh... I guess there are pros/cons here to be considered.

Thank you so much for your response!
by ximmortla
Sat Feb 11, 2017 6:40 pm
Forum: Personal Investments
Topic: Backdoor Roth IRA Contributions
Replies: 19
Views: 2233

Re: Backdoor Roth IRA Contributions

ximmortla wrote:There are transfers from the Joint, followed by partial conversion to Roth.
This means, when I look at the activity associated with my tIRA, there are a number of transactions that are typed "2017 TRAD CONTRIBUTION" that are transfers from my Joint account on 01/10/2017 and then on 01/13/2017 there are a number of transactions with type "PARTIAL CONVERSION TO ROTH IRA". These are Class A funds transferred to my rIRA.

No urgency, and again I really appreciate your help.
by ximmortla
Sat Feb 11, 2017 4:58 pm
Forum: Personal Investments
Topic: Backdoor Roth IRA Contributions
Replies: 19
Views: 2233

Re: Backdoor Roth IRA Contributions

@retiredjg - thanks so much for taking the time to answer my questions! 1) About how large was Your Traditional IRA before anything happened? Round numbers will do. Did you ever make any non-deductible contributions to Your Traditional IRA? If yes, did you fill out Form 8606 on your taxes? My tIRA was around $160,000 when I opened the new account(s). The tIRA was created from my previous employer 401k rollover. I have not made any other contributions to it. 2). What happened to the money in Your Traditional IRA? Where is it now? It is mostly there, some capital gains and dividends. There are transfers from the Joint, followed by partial conversion to Roth. 3) About how large was Spouse's Traditional IRA before anything happened? Was all of ...
by ximmortla
Sat Feb 11, 2017 10:59 am
Forum: Personal Investments
Topic: Backdoor Roth IRA Contributions
Replies: 19
Views: 2233

Backdoor Roth IRA Contributions

Hi all - first post here, so please be gentle. :) I have some real concerns about a recently new account manager for my retirement planning, who works under a very well known company. Upon the account manager making a recent error regarding contributions to a Roth IRA, he informed me of this error, but it has left me concerned on his abilities going forward. I'm looking for facts only to help me better decide on some decisions to be made. Some back story. I started this new account in November 2016 with transferring and existing traditional IRA, a Joint account, and rolling over my spouses 401k from a previous employer to a new traditional IRA. So, from this, you can assume that my spouse and I work full time, currently contribute to 401k(s...