Search found 4520 matches

by kaneohe
Tue Jan 16, 2018 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Accidentally made direct Roth IRA contribution
Replies: 7
Views: 643

Re: Accidentally made direct Roth IRA contribution

................................................ What does it mean that the earnings are calculated using the Roth IRA? Say my Roth IRA is up 50% overall. Does that mean that $5500 comes out and gets put in the nondeductible traditional IRA as basis, and $2750 comes out and put in there as earnings...
by kaneohe
Mon Jan 15, 2018 7:35 pm
Forum: Personal Consumer Issues
Topic: Will IRS make paper tax forms available?
Replies: 23
Views: 1326

Re: Will IRS make paper tax forms available?

I remember the good old days when you could order them during Xmas break and they would be delivered in mid-Jan or so. The last few yrs when I order them the 1st wk in January, right after I give up hope and re-order them in late Feb, they get delivered in early March. Be interested to know how you...
by kaneohe
Mon Jan 15, 2018 10:45 am
Forum: Personal Consumer Issues
Topic: Will IRS make paper tax forms available?
Replies: 23
Views: 1326

Re: Will IRS make paper tax forms available?

1) irs.gov
2) forms/instructions (upper right hand side)
3) order forms/pubs (left hand side)
4) forms/pubs by US mail (see search box in middle of page)
by kaneohe
Sun Jan 14, 2018 11:52 pm
Forum: Personal Consumer Issues
Topic: Will IRS make paper tax forms available?
Replies: 23
Views: 1326

Re: Will IRS make paper tax forms available?

I remember the good old days when you could order them during Xmas break and they would be delivered in mid-Jan or so. The last few yrs when I order them the 1st wk in January, right after I give up hope and re-order them in late Feb, they get delivered in early March. Be interested to know how your...
by kaneohe
Sun Jan 14, 2018 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Rolling old Roth IRAs to 529s
Replies: 22
Views: 747

Re: Rolling old Roth IRAs to 529s

Can you just use the Roth IRA for college tuition? If it happens you have enough to pay for college by other means then you haven’t overcomitted to your 529s. Blue man depends on circumstances.........if this little Roth is their only Roth, the earnings if withdrawn early are subject to both tax an...
by kaneohe
Sun Jan 14, 2018 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Rolling old Roth IRAs to 529s
Replies: 22
Views: 747

Re: Rolling old Roth IRAs to 529s

Can you just use the Roth IRA for college tuition? If it happens you have enough to pay for college by other means then you haven’t overcomitted to your 529s. Blue man depends on circumstances.........if this little Roth is their only Roth, the earnings if withdrawn early are subject to both tax an...
by kaneohe
Sun Jan 14, 2018 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Rolling old Roth IRAs to 529s
Replies: 22
Views: 747

Re: Rolling old Roth IRAs to 529s

Can you just use the Roth IRA for college tuition? If it happens you have enough to pay for college by other means then you haven’t overcomitted to your 529s. Blue man depends on circumstances.........if this little Roth is their only Roth, the earnings if withdrawn early are subject to both tax an...
by kaneohe
Sun Jan 14, 2018 10:42 am
Forum: Investing - Help with Personal Investments
Topic: How to fix Roth IRA over-contribution? Not eligible for backdoor
Replies: 10
Views: 354

Re: How to fix Roth IRA over-contribution? Not eligible for backdoor

Yes, you can withdraw the contribution. You will have to make it clear that you are withdrawing current yr contributions. The custodian should then return that and associated earnings . You will be taxed on earnings at your usual tax rate and perhaps a 10% additional penalty. http://fairmark.com/ret...
by kaneohe
Sun Jan 14, 2018 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Funding 529s and retirement from taxable investment accounts
Replies: 11
Views: 761

Re: Funding 529s and retirement from taxable investment accounts

If you have a taxable acct w/ little gain, seems like it would be more tax-efficient to put in a more tax-efficient account. Both taxable and Roth/529 get no tax breaks for the contribution. However after that, both Roth/529 aren't taxed on withdrawals (if rules followed) while taxable is taxed on C...
by kaneohe
Sun Jan 14, 2018 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Rolling old Roth IRAs to 529s
Replies: 22
Views: 747

Re: Rolling old Roth IRAs to 529s

Why not roll these old Roths to your current Roth IRA? You can certainly pull out the contributions tac and penalty free and put in a 529. If you get a state tax deduction it might make sense to do so. With a significant time delay, Nete79's post yesterday, reminded me that I had forgotten an impor...
by kaneohe
Sat Jan 13, 2018 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Rolling old Roth IRAs to 529s
Replies: 22
Views: 747

Re: Rolling old Roth IRAs to 529s

Here's one viewpoint: https://www.kiplinger.com/article/retirement/T002-C001-S001-transfer-roth-funds-to-a-529.html Doesn't sound there's a magic door to move the funds from Roth to 529 plan so given your ages, you'll be taxed and penalized on the earnings(do you even know how much are earnings/cont...
by kaneohe
Sat Jan 13, 2018 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion confusion
Replies: 28
Views: 1178

Re: Roth conversion confusion

You will be 70.5 in June of 2020 so 2020 is the first year of your RMD. As I understand it, you get a "grace period" your first year so you could theoretically delay that payment until April 15 of 2021. I don't recommend it because that means you have to take 2 RMDs in the same tax year (2021). Whe...
by kaneohe
Sat Jan 13, 2018 11:08 am
Forum: Personal Finance (Not Investing)
Topic: What forms are required to support a Qualified Charitable Distribution?
Replies: 5
Views: 204

Re: What forms are required to support a Qualified Charitable Distribution?

1) Don't know about VG but my broker send the checks to me along w/ a list of the checks listing payee and amount. The checks have attached to each a form w/ similar info. 2) The QCD can be simultaneously a QCD and RMD so it is good to do them "early" before the RMD is satisfied. If you satisfy the ...
by kaneohe
Fri Jan 12, 2018 9:52 am
Forum: Personal Finance (Not Investing)
Topic: When does IRA contribution limit increase?
Replies: 5
Views: 491

Re: When does IRA contribution limit increase?

From Pub 590A p.6: "Example. Kristin, a full-time student with no taxable compensation, marries Carl during the year. Neither of them was age 50 by the end of 2016. For the year, Carl has taxable compensation of $30,000. He plans to contribute (and deduct) $5,500 to a traditional IRA. If he and Kris...
by kaneohe
Fri Jan 12, 2018 1:46 am
Forum: Personal Finance (Not Investing)
Topic: Deduct wife's TIRA if I'm contributing to my 401k (filing jointly)
Replies: 3
Views: 244

Re: Deduct wife's TIRA if I'm contributing to my 401k (filing jointly)

Not sure which yr you are referring to (2017 or 2018) but if you really want the tax deduction for TIRA, you could alway recharacterize part of your Roth contribution once you figure out , how much will be deductible for your income situation. If for 2017, the normal deadline would be tax filing dat...
by kaneohe
Fri Jan 12, 2018 1:04 am
Forum: Personal Finance (Not Investing)
Topic: Deduct wife's TIRA if I'm contributing to my 401k (filing jointly)
Replies: 3
Views: 244

Re: Deduct wife's TIRA if I'm contributing to my 401k (filing jointly)

This might be a more appropriate table if you are making a spousal contribution for your non-working wife. https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-not-covered-by-a-retirement-plan-at-work The income limits are higher. The table yo...
by kaneohe
Thu Jan 11, 2018 8:15 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth with AGI within phase out limits
Replies: 9
Views: 746

Re: Backdoor Roth with AGI within phase out limits

Yes,with the backdoor Roth for the full amount you are doing a Roth conversion, not a contribution, so there is no limit on how much you can convert. You could do it the other way too..........direct Roth contribution to max allowed and do the rest of contribution to TIRA and convert that but that s...
by kaneohe
Thu Jan 11, 2018 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: roth recharacterization - think I made a mistake?
Replies: 2
Views: 159

Re: roth recharacterization - think I made a mistake?

Sounds correct to me.........there are 2 types of recharacterizations: you are probably thinking of recharacterizing a conversion from TIRA to Roth. You can also recharacterize a contribution either from Roth to TIRA or from TIRA to Roth if you change your mind for a variety of reasons......this sou...
by kaneohe
Wed Jan 10, 2018 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Contributions
Replies: 2
Views: 380

Re: Roth IRA Contributions

I have usually maxed out 401K with employer matching and then decided on a year by year basis whether there were funds to contribute to Roth IRAs. Consequently, funds in our Roth's at present only make up a few percent of our portfolio and we would like to increase that by contributing more from no...
by kaneohe
Wed Jan 10, 2018 9:15 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth: Isolating Taxable Portion of Traditional IRA and IRS Publication 590-A
Replies: 6
Views: 371

Re: Backdoor Roth: Isolating Taxable Portion of Traditional IRA and IRS Publication 590-A

I'm looking at this too to unwind some IRA mess and stop having to track basis of non-deductible contributions - is it as simple as taking your tracked non-deductible basis and rolling that amount over to a qualified 401K plan ? .............................. I think this might be backwards...........
by kaneohe
Tue Jan 09, 2018 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3165

Re: Trying to understand Roth five-year rule

I have a similar question, that I think Alan S. has probably already answered above, but I'm having a hard time parsing it all out. Suppose I make an in plan Roth conversion of the after-tax source of a 403(b). I subsequently roll that Roth 403(b) over into a Roth IRA. During this time I have also ...
by kaneohe
Mon Jan 08, 2018 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Recharacterization.......one last chance?
Replies: 2
Views: 300

Recharacterization.......one last chance?

http://fairmark.com/forum/read.php?2,84769 Posted by: Kaye Thomas, January 3, 2018 06:13PM I've confirmed that the IRS will take the position that taxpayers can use the recharacterization provisions to undo Roth conversions occurring in 2017 until October 15, 2018. There is no immediate plan to pro...
by kaneohe
Sun Jan 07, 2018 1:09 pm
Forum: Forum Issues and Administration
Topic: Misuse of adverse when averse was meant
Replies: 145
Views: 5692

Re: Misuse of adverse when averse was meant

When did you guys graduate college? Even tho I see that more and more these days,my old brain refuses to accept that.......and googling finds at least 1 person in agreement.
by kaneohe
Sun Jan 07, 2018 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Should I do Deductible tIRA or Roth IRA - please see below
Replies: 3
Views: 219

Re: Should I do Deductible tIRA or Roth IRA - please see below

If you are eligible to contribute to either w/o phaseout problems, what is the point of contributing to TIRA and then converting as opposed to contributing directly to Roth? Yes , you get a deduction for contributing to TIRA but then you negate that by doing the conversion so all you've done is comp...
by kaneohe
Sun Jan 07, 2018 11:53 am
Forum: Investing - Help with Personal Investments
Topic: What to do with RMD money
Replies: 18
Views: 1597

Re: What to do with RMD money

My sister is now forced to take money from her retirement accounts. ........................ But she is pretty tight for money. ...................... Perhaps I'm misinterpreting but the above is a bit confusing to me.........."forced to take" suggests she doesn't need the money. "pretty tight for ...
by kaneohe
Sun Jan 07, 2018 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 30807

Re: Ally Bank 11 month [No-Penalty CD]

Note, the LTCG brackets aren't tied to the new brackets anymore, and are offset a couple hundred dollars. E.g. the 15% bracket starts at $77,200 for joint returns and $38,600 for single. Is that $77,200 after the standard deduction (or itemized)? brackets are tied to taxable income so take the exem...
by kaneohe
Sat Jan 06, 2018 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3165

Re: Trying to understand Roth five-year rule

again, I don't pretend to know this situation, but be careful and precise about your words......there are after tax contributions to 401K and there are Roth 401K contributions and they are not identical. In your last post, you use both terms....so wondering which one is the correct one? One part I a...
by kaneohe
Sat Jan 06, 2018 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Mechanics of consolidating mutual funds—is it better to....?
Replies: 4
Views: 425

Re: Mechanics of consolidating mutual funds—is it better to....?

Are you in a community property state? Don't know about other such states but in CA, all the assets in a jt. trust would get a step up in basis so it's as good a time as ever to move to low cost index funds to minimize future tax distributions from the actively managed funds.
by kaneohe
Sat Jan 06, 2018 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3165

Re: Trying to understand Roth five-year rule

I don't really know the answer about rollover from Roth 401K to Roth IRA but I am inclined to believe what libralibra says: that the age of the Roth 401K assets restarts when you transfer to Roth IRA......either taking on age of oldest Roth IRA if pre-existing or restarting at 0 yrs if no other Roth...
by kaneohe
Sat Jan 06, 2018 2:01 am
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3165

Re: Trying to understand Roth five-year rule

I have a question with regards to Roth IRA withdrawals before age 59.5. How does the money come out of the Roth IRA account if the monies within the Roth IRA account has a mixture of contributions, conversions (via back door roth), and earnings? For example, could one say leave the earnings in the ...
by kaneohe
Fri Jan 05, 2018 11:19 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3165

Re: Trying to understand Roth five-year rule

compare to this table by kawill from fairmark.com site (vetted by Alan S.) looks like your nicely summarized result agrees. Pls recheck yourself. Re: Roth IRA Rules - Table Approach Posted by: KAWill (IP Logged) Date: October 14, 2010 11:57PM Roth IRA Distribution Table UNDER AGE 59.5 FIVE YEAR CONV...
by kaneohe
Thu Jan 04, 2018 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Paying Fed Estimated Tax for 2018 (new rates/brackets)
Replies: 7
Views: 962

Re: Paying Fed Estimated Tax for 2018 (new rates/brackets)

what other complexities besides LTCG/QDIV are you trying to model?
by kaneohe
Thu Jan 04, 2018 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tax penalty (Fed and NYS)
Replies: 2
Views: 400

Re: Tax penalty (Fed and NYS)

Calculate the tax that will be due. For estimated taxes, the simple way is to have 4 equal payment "quarterly". The penalty is figured on each payment so the time period delinquent will vary from 3 mos. to 1 yr for an average period of about 7.5 mos. At an annual rate of 4%, take your total amount d...
by kaneohe
Wed Jan 03, 2018 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2067

Re: Roth IRA 5 year rule

Ok, I now agree it should not be taxable. To see it clearly in an IRS publication, I think the flowchart in Figure 2.1 in Publication 590 is salient. That flowchart by itself has some significant limitations: You make a Roth conversion in 2017. In 2018 , you withdraw the full amount but the earning...
by kaneohe
Wed Jan 03, 2018 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2067

Re: Roth IRA 5 year rule

@kaneohe: Thanks for kawill's table frome fairmark.com From the article again: "Unlike the 5-year rule for contributions, in the case of conversions, each conversion amount has its own 5-year time period (Treasury Regulation 1.408A-6, Q&A-5(c)), and thus with multiple conversions there may be multi...
by kaneohe
Wed Jan 03, 2018 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2067

Re: Roth IRA 5 year rule

Given that, will I be taxed on earnings from post-2013 conversions if I withdraw them in 2018? No. The first question to ask is "Is the withdrawal qualified?" Since you are over 59.5 and your first Roth was opened more than five years ago the answer is yes. Qualified withdrawals are tax and penalty...
by kaneohe
Wed Jan 03, 2018 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2067

Re: Roth IRA 5 year rule

@kaneohe: Thanks for kawill's table frome fairmark.com From the article again: "Unlike the 5-year rule for contributions, in the case of conversions, each conversion amount has its own 5-year time period (Treasury Regulation 1.408A-6, Q&A-5(c)), and thus with multiple conversions there may be multi...
by kaneohe
Wed Jan 03, 2018 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2067

Re: Roth IRA 5 year rule

@MarkNYC: Thank you. So my 30December 2013 conversion is indeed counted as 01January 2013? It doesn't have to been made before 15April? Any time in 2013 is good? From the posted article, it sounds like I can only withdraw tax-free from that first conversion. Subsequent conversions each have their o...
by kaneohe
Tue Jan 02, 2018 3:22 am
Forum: Personal Finance (Not Investing)
Topic: First Time Consulting - how to pay self employment taxes
Replies: 4
Views: 540

Re: First Time Consulting - how to pay self employment taxes

Although your focus seems to be on SE taxes, now that you are retired you should be concerned about the total picture which includes your regular taxes on all your income (including your net SE income which is your gross SE income less expenses) as well as the SE taxes. You can use a tax calculator ...
by kaneohe
Mon Jan 01, 2018 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs
Replies: 43
Views: 3579

Re: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs

Thanks Chip and Kaneohe. With nothing very much to do on a New Year's day, I found the IRS table for employers - glad I'm not an employer. Page 45 of Pub 15 has the method one can use to calculate with holdings.This can be based on the period of payment (e.g. monthly, annually). Then based on one's...
by kaneohe
Mon Jan 01, 2018 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs
Replies: 43
Views: 3579

Re: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs

For those who fill in W4's for pensions, how do you calculate the amount to be withheld? I know it will change in 2018. The problem I have with both my pension(s) and the RMD taken last year is that the corporation assumed that that was my only taxable income (I think). So for example, my one pensi...
by kaneohe
Mon Jan 01, 2018 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs
Replies: 43
Views: 3579

Re: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs

Each year when I file my taxes in April, I know what I paid in taxes, so since things don't change much and my taxes, before the new law, were low, I just make one estimated tax payment for the next whole year then. Next year I will probably do the same, since although my taxes will increase they w...
by kaneohe
Mon Jan 01, 2018 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs
Replies: 43
Views: 3579

Re: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs

For those who fill in W4's for pensions, how do you calculate the amount to be withheld? I know it will change in 2018. The problem I have with both my pension(s) and the RMD taken last year is that the corporation assumed that that was my only taxable income (I think). So for example, my one pensi...
by kaneohe
Mon Jan 01, 2018 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs
Replies: 43
Views: 3579

Re: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs

For those who fill in W4's for pensions, how do you calculate the amount to be withheld? I know it will change in 2018. The problem I have with both my pension(s) and the RMD taken last year is that the corporation assumed that that was my only taxable income (I think). So for example, my one pensi...
by kaneohe
Mon Jan 01, 2018 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Paying estimated quarterly taxes, what is the process?
Replies: 10
Views: 1093

Re: Paying estimated quarterly taxes, what is the process?

.............................................................. I am in the 25 % federal tax bracket. Would it be as simple as just multiplying 5,000 by 15 % and sending that to the IRS, as well as my state tax collector (at my state rate). .............................. Is there a reason for the di...
by kaneohe
Mon Jan 01, 2018 9:40 am
Forum: Personal Finance (Not Investing)
Topic: Paying estimated quarterly taxes, what is the process?
Replies: 10
Views: 1093

Re: Paying estimated quarterly taxes, what is the process?

.............................................................. I am in the 25 % federal tax bracket. Would it be as simple as just multiplying 5,000 by 15 % and sending that to the IRS, as well as my state tax collector (at my state rate). .............................. Is there a reason for the di...
by kaneohe
Fri Dec 29, 2017 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 30807

Re: Ally Bank 11 month [No-Penalty CD]

If you willing/able to tolerate the wait times on phone, I believe that the rep can make the transfer from old to new CD directly. I didn't notice any activity in savings account due to the switch. I don't think this is accurate. When I recently closed an existing No-Penalty CD on the phone and ope...
by kaneohe
Fri Dec 29, 2017 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Reinvest RMD from Inherited IRA into Roth IRA
Replies: 6
Views: 524

Re: Reinvest RMD from Inherited IRA into Roth IRA

I've got $160k in an Inherited IRA which I received as a non-spouse beneficiary. I've just taken the first RMD of $3600 using Vanguard's RMD service. At the moment, it's sitting in a non-retirement brokerage account, also Vanguard. I want to confirm a few things that are not quite clear to me: Can ...
by kaneohe
Fri Dec 29, 2017 9:31 am
Forum: Investing - Help with Personal Investments
Topic: IRA question
Replies: 3
Views: 257

Re: IRA question

Be sure to document your non-deductible contribution to TIRA on F8606. Apparently doing this w/ tax software can be tricky for some so be aware of what it should look like. Some advocate doing it on paper first to learn.