Search found 5085 matches

by kaneohe
Wed Nov 14, 2018 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Contribute to Roth IRA now or tIRA later (to save tax)?
Replies: 13
Views: 888

Re: Contribute to Roth IRA now or tIRA later (to save tax)?

If you have a phase out for being able to deduct tIRA, one or both of you has some kind of pension plan or 401k type plan at work. In many to most circumstances, that should be a pre-tax account. Supplementing that with Roth IRA (instead of more pre-tax IRA) is frequently a good idea. So based on j...
by kaneohe
Wed Nov 14, 2018 8:59 am
Forum: Personal Finance (Not Investing)
Topic: 2018 Tax Time is upon us
Replies: 13
Views: 2339

Re: 2018 Tax Time is upon us

All the stuff that used to go on form 1040 now goes on a 1040 worksheet and the key items on the worksheet go to line items on the POSTCARD . :twisted: Stuff that used to go on Form 1040 will go on Form 1040 and up to six schedules. I'll be going from filing a single sheet of paper for Form 1040 to...
by kaneohe
Wed Nov 14, 2018 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Contribute to Roth IRA now or tIRA later (to save tax)?
Replies: 13
Views: 888

Re: Contribute to Roth IRA now or tIRA later (to save tax)?

Are you maxing out your 401K plans? If you aren't, contributing more to them would be equivalent to contributing to TIRA and possibly might lower your MAGI to enable more deductible contributions toTIRA. If you are maxing out your 401K plans, you could consider contributing now to either Roth or TIR...
by kaneohe
Mon Nov 12, 2018 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: RMDs in the year one becomes 70 1/2
Replies: 24
Views: 1830

Re: RMDs in the year one becomes 70 1/2

Dottie57 wrote:
Mon Nov 12, 2018 4:00 pm
Is the RMD pro-rated or do you need to take the full year RMD?
Asking about the first yr RMD? You can delay the 1st RMD until April 1 of the yr after you turn 70.5.
Therefore the 1st RMD can be 0-100% of the full yr RMD.
by kaneohe
Mon Nov 12, 2018 12:12 am
Forum: Personal Finance (Not Investing)
Topic: How long must you hold a Traditional IRA
Replies: 8
Views: 912

Re: How long must you hold a Traditional IRA

see the tables here on if you can deduct your TIRA contributions. It depends on if you have a workplace retirement plan or not and if not, if your spouse has one so there are separate tests for each spouse
https://www.irs.gov/retirement-plans/ir ... ion-limits
by kaneohe
Sun Nov 11, 2018 8:02 am
Forum: Personal Finance (Not Investing)
Topic: Do I need more than Original Medicare?
Replies: 110
Views: 6080

Re: Do I need more than Original Medicare?

.......................................... Can you switch between Medigap and Medicare Advantage? If so, are there any restrictions such as underwriting? Who sets the premiums of Medigap, Medicare or individual insurance companies? Is Medigap subject to IRMAA? https://www.google.com/search?q=can+i+...
by kaneohe
Sat Nov 10, 2018 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Early withdrawal penalty ?
Replies: 9
Views: 490

Re: IRA Early withdrawal penalty ?

I think I've read of folks who are unaware they're supposed to take RMDs for years and then upon realizing that error, make the required withdrawals and then beg for mercy from IRS from the penalty there. OP's case has some similarities to that.........any chance of IRS waiving the penalty here for ...
by kaneohe
Sat Nov 10, 2018 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion complications- tax help needed!
Replies: 12
Views: 1421

Re: Roth conversion complications- tax help needed!

That would be my first guess. Would be good to get Alan S. to verify. If you don't get a reply soon here, you
should be able to reach him at the fairmark.com retirement forum. https://fairmark.com/forum/subject/retirement/
by kaneohe
Sat Nov 10, 2018 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion complications- tax help needed!
Replies: 12
Views: 1421

Re: Roth conversion complications- tax help needed!

Since your mother is going to own both her original TIRA and your father's original TIRA, can't she just add the remaining basis in both to get the new basis for the combined account?
by kaneohe
Sat Nov 10, 2018 7:57 am
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 168
Views: 21026

Re: IRS publishes draft 2018 1040 - Huge changes made

The Draft of the Instructions for Schedule D with capital gains worksheet have not be released yet. So need to wait for the capital giants worksheet to work through the calculations before I complete my Roth conversion to the top of my tax bracket. https://www.irs.gov/pub/irs-dft/i1040gi--dft.pdf p...
by kaneohe
Fri Nov 09, 2018 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: Doing taxes by hand
Replies: 83
Views: 4786

Re: Doing taxes by hand

For folks doing paper. Do you print all forms and instructions at home? Or order them somehow? Last year I was gonna try by hand as well. our library didn’t have the forms. I already had TurboTax, and was too cheap to want to also print everything I would have needed to do by hand. You can order th...
by kaneohe
Fri Nov 09, 2018 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Doing taxes by hand
Replies: 83
Views: 4786

Re: Doing taxes by hand

If your situation is simple enough , tax calculators like this https://www.mortgagecalculator.org/calcs/1040-calculator.php will give you an answer you can check your work against. Better yet, check against several others too.......like Taxcaster and the HR Block tax calculator. You will probably le...
by kaneohe
Fri Nov 09, 2018 7:43 am
Forum: Personal Finance (Not Investing)
Topic: capital loss from stock reducing income
Replies: 5
Views: 527

Re: capital loss from stock reducing income

i did the worksheet thanks. and no matter it carries over or not,............................................. Not sure what you mean above. Could you elaborate? In the normal use of the wksht (when there is "normal" income) as an example: 1) You have 10K capital loss; if you have no cap gains, you...
by kaneohe
Thu Nov 08, 2018 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: capital loss from stock reducing income
Replies: 5
Views: 527

Re: capital loss from stock reducing income

You must use your capital loss each yr. If you don't have capital gains to offset it, then up to 3K offsets ordinary income. This would reduce your AGI. If your income is low enough as you point out, the std deduction might have reduced your taxable income to zero even w/o the capital loss. However ...
by kaneohe
Wed Nov 07, 2018 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Reversing/Undoing a ROTH IRA contribution
Replies: 5
Views: 261

Re: Reversing/Undoing a ROTH IRA contribution

Why not just recharacterize the contribution from Roth to TIRA?
by kaneohe
Tue Nov 06, 2018 9:45 pm
Forum: Investing - Theory, News & General
Topic: I-bonds to 529, tax exemption
Replies: 7
Views: 818

Re: I-bonds to 529, tax exemption

https://forum.savingforcollege.com/t/st ... -tax/11759

The 2 links within the article are also useful.
by kaneohe
Tue Nov 06, 2018 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Optimizing ROTH conversion calculation
Replies: 5
Views: 361

Re: Optimizing ROTH conversion calculation

I have been toying with the idea of substantially increasing the ROTH conversion to $180K-200K and accepting the one year Medicare hit so that we stay under that cliff for a few more years. This would also incur Net Investment Income Tax (NIIT). You could enter your situation into the personal fina...
by kaneohe
Tue Nov 06, 2018 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Optimizing ROTH conversion calculation
Replies: 5
Views: 361

Re: Optimizing ROTH conversion calculation

sounds like you have most of the pieces......one other thing to check........if you make a single big lump, you might go from 24% to 32% on some part of that lump. You'll have to weigh the one time big IRMAA plus added taxes against the smaller IRMAA in future yrs.
by kaneohe
Mon Nov 05, 2018 7:07 am
Forum: Personal Finance (Not Investing)
Topic: Do I need more than Original Medicare?
Replies: 110
Views: 6080

Re: Do I need more than Original Medicare?

Medigap and Plan D insurance is just that - insurance. I also have fire insurance on my home and vehicle insurance on my vehicles - and hope that I never file a claim. It is very difficult to predict what the future will bring. :confused This summarizes it perfectly.................you hope that yo...
by kaneohe
Sun Nov 04, 2018 7:11 am
Forum: Investing - Help with Personal Investments
Topic: Potential TLH Mistake
Replies: 11
Views: 1018

Re: Potential TLH Mistake

https://fairmark.com/forum/topic/cost-basis-for-mutual-fund-sale-of-covered-shares/ "November 3, 2018 at 7:29 pm #1476REPLY Kaye Thomas Moderator These rules allow you to “revoke” an election to use the averaging method, or “change from” the averaging method. Once you’ve made a sale under the avera...
by kaneohe
Fri Nov 02, 2018 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: Is "recharacterizing" the correct method/term?
Replies: 14
Views: 618

Re: Is "recharacterizing" the correct method/term?

............................................. Why would anyone want to open a tIRA, recharacterize it to a Roth and then recharacterize it to an tIRA. ................................ Changes in circumstances. You open a traditional IRA, then change to a job with a 401(k), which means that your tra...
by kaneohe
Fri Nov 02, 2018 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Potential TLH Mistake
Replies: 11
Views: 1018

Re: Potential TLH Mistake

cadillex wrote:
Thu Nov 01, 2018 10:03 pm
also i think they are reporting all your positive losses in green .............
The charts show that proceeds exceed cost basis.......so those are gains.......perhaps the reason for green?
by kaneohe
Fri Nov 02, 2018 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 447
Views: 42413

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

............................. I asked the representative this yesterday, and she whisked off to 'ask the back-office' -- to ultimately respond No. She said the funds had to be initiated transfer by 10/31 and that was a hard date. I am sure this may not be the case for others -- but they didn't seem...
by kaneohe
Fri Nov 02, 2018 7:44 am
Forum: Personal Finance (Not Investing)
Topic: final January estimated quarterly tax payment- can it be paid in April with return?
Replies: 7
Views: 726

Re: final January estimated quarterly tax payment- can it be paid in April with return?

If you meet one of the safe harbors (100 or 110% of last yrs taxes, 90% of this yr taxes) and you've paid faster than 4 equal est. tax payments,
you should be ok.
by kaneohe
Thu Nov 01, 2018 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: Potential TLH Mistake
Replies: 11
Views: 1018

Re: Potential TLH Mistake

I think I know that if you haven't sold anything, if you switch from avg basis to specific ID, some fund companies will make that effective to all shares including past shares. The analog to that might be considered to be that if the last shares sold were in 2015, all shares bought after that might ...
by kaneohe
Thu Nov 01, 2018 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: Potential TLH Mistake
Replies: 11
Views: 1018

Re: Potential TLH Mistake

tainted-meat wrote:
Thu Nov 01, 2018 1:09 pm
I called Fidelity and they gave me a good run-down.

The Actual Cost Basis will only apply to future purchases. Since I only changed basis on Friday, the basis must stay average. I had TLH'd using this fund in the past.
When was your most recent past TLH?
by kaneohe
Thu Nov 01, 2018 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: California municipal money market vs vanguard prime money market
Replies: 19
Views: 2417

Re: California municipal money market vs vanguard prime money market

I make about $500k a year before taxes in california. I have $100k I want to keep in money market. Municipal about 1.3-1.4% while prime money maker about 2.2%z Any ideas of what’s better in my situation? Thanks back of envelope calculation: pay Fed taxes on prime 0.8-%,CA taxes 0.7%, perhaps CA tax...
by kaneohe
Thu Nov 01, 2018 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Potential TLH Mistake
Replies: 11
Views: 1018

Re: Potential TLH Mistake

I only checked the 1st 2 sale transactions but it looks like you might still be on average cost basis. They both showed the same cost basis of 10.75/sh. You might want to talk to Fidelity about how /when you changed the cost basis method. Sometimes the change only takes effect for shares purchased a...
by kaneohe
Thu Nov 01, 2018 10:05 am
Forum: Personal Finance (Not Investing)
Topic: Spouse Diagnosed Non-curable Cancer -- what now?
Replies: 54
Views: 10304

Re: Spouse Diagnosed Non-curable Cancer -- what now?

My advice, as a fellow WM patient, is to live your life the same as if you did not have it. For me, this disease has been little more than a nuisance - constant monitoring with occasional treatment here and there. The worst part of the disease so far was the fear it caused in the first year after d...
by kaneohe
Thu Nov 01, 2018 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA W/D 5 yr Rule Clarification
Replies: 10
Views: 864

Re: Roth IRA W/D 5 yr Rule Clarification

............................................................ -- from pub 590-B: The 5-year period used for determining whether the 10% early distribution tax applies to a distribution from a conversion or rollover contribution is separately determined for each conversion and rollover, and isn't nec...
by kaneohe
Wed Oct 31, 2018 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: Spouse Diagnosed Non-curable Cancer -- what now?
Replies: 54
Views: 10304

Re: Spouse Diagnosed Non-curable Cancer -- what now?

Very sorry to hear about your DH's diagnosis. One thing to explore when Medicare kicks in.........not sure what your insurance will not cover.........a good Medicare supplement will pick up nearly all of the expenses that Medicare does not. Since treatment can be expensive, the 20% that Medicare doe...
by kaneohe
Wed Oct 31, 2018 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: TLH to create larger Roth conversion ?
Replies: 18
Views: 949

Re: TLH to create larger Roth conversion ?

You can use this calculator to demonstrate for yourself https://www.mortgagecalculator.org/calcs/1040-calculator.php If I input:(MFJ) 1)QDIV 60K, interest income 125K , I get AGI=185K and Taxable Inc=161K 2)If I add a 60K capital LOSS to the above, I get AGI=182K and Taxable Inc= 158K Note that even...
by kaneohe
Wed Oct 31, 2018 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: TLH to create larger Roth conversion ?
Replies: 18
Views: 949

Re: TLH to create larger Roth conversion ?

While it is true that both LTCG and qualified dividends have the same favorable rates, capital losses only offset capital gains, not dividends except to the same extent as other types of income (3K). Your excess would be carried over to next yr. Here is a simplified version of the QDIV/CG wksht. If ...
by kaneohe
Tue Oct 30, 2018 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Signing up for Medigap and Drug plans for the first time
Replies: 4
Views: 470

Re: Signing up for Medigap and Drug plans for the first time

Yes, the choices automatically roll over unless you change them. How much different are the monthly premiums for the Rx drug plans? Is that difference worth the extra hassle to switch after one month? Or is the difference in the Rx drugs? If so, can you manage to delay ordering the Rx drugs for one ...
by kaneohe
Tue Oct 30, 2018 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: How do I file a Form 2210 for a Roth Conversion?
Replies: 12
Views: 826

Re: How do I file a Form 2210 for a Roth Conversion?

https://www.bogleheads.org/forum/viewtopic.php?f=1&t=262550 In another current thread is a proposed plan to withdraw from an IRA, withhold most of it, and then within 60 days replace the funds in the IRA. This will make your tax payment as a withholding instead of est. tax. Some caveats go with it....
by kaneohe
Tue Oct 30, 2018 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: Voluntary withholding from brokerage accounts
Replies: 20
Views: 1218

Re: Voluntary withholding from brokerage accounts

Several folks have mentioned IRA withdrawals and withholding from them. If you don't want the IRA withdrawal but do want the withholding, I've read suggestions to do the IRA & withholding and then within 60 days, replace the withdrawal amount into the IRA. Net result is a withholding only. This onl...
by kaneohe
Tue Oct 30, 2018 11:35 am
Forum: Investing - Help with Personal Investments
Topic: Need help / Info with TLH Short Term vs Long Term, realized vs unrealized ....
Replies: 21
Views: 1200

Re: Need help / Info with TLH Short Term vs Long Term, realized vs unrealized ....

....................................................... And if i decide to do a combo of TLH and sale with LTCG, is there a preference of selling the mutual funds vs individual stocks first? Thx If you have a crystal ball, sell the one that's going to be the worst performer in the future. If not,on...
by kaneohe
Tue Oct 30, 2018 11:21 am
Forum: Investing - Help with Personal Investments
Topic: How do I file a Form 2210 for a Roth Conversion?
Replies: 12
Views: 826

Re: How do I file a Form 2210 for a Roth Conversion?

................................................................... So, I did a conversion last night through Vanguard to get one in for this tax year, and from now on I will plan to do them every Jan. 2. Since we have a fairly predictable income stream, I understand that the simplest thing to do w...
by kaneohe
Tue Oct 30, 2018 10:57 am
Forum: Investing - Help with Personal Investments
Topic: Need help / Info with TLH Short Term vs Long Term, realized vs unrealized ....
Replies: 21
Views: 1200

Re: Need help / Info with TLH Short Term vs Long Term, realized vs unrealized ....

Interesting complex problem...........many others I'm sure struggle w/ the dilemna of being in high ER funds but have the consequence of large gains to consider when switching to efficient low cost funds. As Moto Trojan suggested, the midway solution is to do it in small pieces. Maybe you'll get "lu...
by kaneohe
Tue Oct 30, 2018 9:02 am
Forum: Investing - Help with Personal Investments
Topic: Need help / Info with TLH Short Term vs Long Term, realized vs unrealized ....
Replies: 21
Views: 1200

Re: Need help / Info with TLH Short Term vs Long Term, realized vs unrealized ....

.......................................................... So you can do dollar for dollar (if you have ST gains) + up to $3K, if no gains, just use the $3K annually with carryover ? or Can I take current $12.7 in ST loss, add $10K unrealized loss, for total of $22.7K ST loss in 2018 AND apply that...
by kaneohe
Tue Oct 30, 2018 8:44 am
Forum: Investing - Help with Personal Investments
Topic: Voluntary withholding from brokerage accounts
Replies: 20
Views: 1218

Re: Voluntary withholding from brokerage accounts

Several folks have mentioned IRA withdrawals and withholding from them. If you don't want the IRA withdrawal but do want the withholding, I've read suggestions to do the IRA & withholding and then within 60 days, replace the withdrawal amount into the IRA. Net result is a withholding only. This only...
by kaneohe
Tue Oct 30, 2018 7:59 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA withdrawals
Replies: 8
Views: 780

Re: Roth IRA withdrawals

The IRS rules are here: https://www.irs.gov/publications/p590b#en_US_2017_publink1000231061 My understanding is you can be younger than 59-1/2 as long as you meet the 5 year rule. When you use that link, the relevant text is before the screen that shows up and may not be noticed. This one may be a ...
by kaneohe
Tue Oct 30, 2018 7:36 am
Forum: Investing - Help with Personal Investments
Topic: Need help / Info with TLH Short Term vs Long Term, realized vs unrealized ....
Replies: 21
Views: 1200

Re: Need help / Info with TLH Short Term vs Long Term, realized vs unrealized ....

........................................... My understanding is we can write off upto $3K a year in losses on our taxes (with the rest of the $12.7K carrying over). Is that the best I can do OR is there an option to TLH with long term gains from older mutual funds/stocks? Words are often easy to mi...
by kaneohe
Mon Oct 29, 2018 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: SS Taxation -Please Clarify
Replies: 16
Views: 2054

Re: SS Taxation -Please Clarify

I'm currently withholding 15% for federal, but SS has changed the options to 7%, 10%, 12%, or 22%. Is there no option to have no withholding? (I will start SS in two months, so this is withholding discussion is of interest to me). --vtMaps Yes, no withholding is an option..........in my experience,...
by kaneohe
Sun Oct 28, 2018 7:25 am
Forum: Investing - Help with Personal Investments
Topic: Double taxation
Replies: 6
Views: 1328

Re: Double taxation

My understanding is that you file in both states. Your home state may then give you a credit (generally for the lower of the taxes you paid on that double-taxed income) if you file the proper form........may depend on the specific 2 states.
by kaneohe
Fri Oct 26, 2018 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Rolling Early Withdrawal Penalty?
Replies: 13
Views: 830

Re: Roth IRA Rolling Early Withdrawal Penalty?

Thanks all for all the terrific responses. This has truly clarified a lot of the matter to me. Does anyone know what the “taxable portion” and the nontaxable portion on the table is referring to? Thanks! If you do a "normal" Roth conversion from deductible contribution, the conversion is all taxabl...
by kaneohe
Fri Oct 26, 2018 9:30 am
Forum: Investing - Help with Personal Investments
Topic: If I contributed 30k to a 529 last year, but contributed more this year, will I be penalized?
Replies: 13
Views: 1436

Re: If I contributed 30k to a 529 last year, but contributed more this year, will I be penalized?

............................. For IRAs, for example, I know there's a penalty of 6% of the excess money per year until it's withdrawn (but at least the corrective withdrawals won't be further hit with the 10% early distribution penalty, I believe). .....................................................
by kaneohe
Thu Oct 25, 2018 11:03 pm
Forum: Investing - Help with Personal Investments
Topic: If I contributed 30k to a 529 last year, but contributed more this year, will I be penalized?
Replies: 13
Views: 1436

Re: If I contributed 30k to a 529 last year, but contributed more this year, will I be penalized?

As mentioned previously, if you do the 5 yr election, you have not exceeded contribution limits. If you don't do the 5 yr election, then you have exceeded the limits and are supposed to file the gift tax return which for most only reduces the large estate tax exemption but does not result in a tax. ...