Search found 745 matches

by clydewolf
Fri Nov 01, 2019 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Closed Pension Payout or Transfer
Replies: 4
Views: 358

Re: Closed Pension Payout or Transfer

How about a cash payout and putting it in an IRA? To avoid any tax,you would need to come up with the 20% that will be withheld. You would have 60 calendar days to complete this action. It appears nothing would be withheld if you transfer to the 401k. Read all of the paper that you get for this tran...
by clydewolf
Mon Oct 28, 2019 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Help Dad do estate planning math and make adjustments
Replies: 45
Views: 2615

Re: Help Dad do estate planning math and make adjustments

When willing physical assets it is impossible to distribute the assets equally. People's likes/desires needs are not the same. Why did Mom will the real estate to daughter #1? Is it possible that the real estate is also daughter's home that was being rented from Mom? But then does the rent that was ...
by clydewolf
Tue Apr 23, 2019 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Late tax payment penalty
Replies: 7
Views: 692

Re: Late tax payment penalty

For 2019 taxes have it withheld from their IRA distribution.
by clydewolf
Tue Mar 12, 2019 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Rollover 401k - Can I take a loan from it?
Replies: 12
Views: 842

Re: Rollover 401k - Can I take a loan from it?

Kinda weird rule, it is my money, so it does not make sense why I could not loan it out from an IRA. You can take your money from your IRA any time you want. If your contributions were tax deductible (tax deferred), you will need to pay the income tax when the money is distributed to you. If you ha...
by clydewolf
Sat Mar 09, 2019 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Cash Balance Pension to IRA Rollover
Replies: 11
Views: 787

Re: Cash Balance Pension to IRA Rollover

The OP should call Vanguard or their broker and discuss what they want to do. Vanguard will generate the paper work that is needed to transfer the funds from the various accounts where they are today to Vanguard. The OP can learn more here: https://investor.vanguard.com/investing/rollover-iras-trans...
by clydewolf
Mon Feb 11, 2019 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Siblings and Inherited Property
Replies: 53
Views: 6797

Re: Siblings and Inherited Property

I think the sellers should have a requirement that the house can not be sold for 3 years. They do want the buyers to quickly turn around and sell the house for a large profit.
by clydewolf
Sun Feb 03, 2019 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: United States tax software
Replies: 10
Views: 791

Re: United States tax software

Yes, the AARP Tax Aide Program most likely can help you for free!
You do not need to belong to AARP, and you do not have to be a Senior Citizen.

How to find a location near you? Call your county office for the aging and ask. Or call your local Senior Center.
by clydewolf
Thu Jan 10, 2019 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Quarterly Taxes Question
Replies: 5
Views: 768

Re: Quarterly Taxes Question

You could handle the income tax for your K1 income in several ways: - Increase your withholding from your wages. - If you are at least age 59-1/2 take a December distribution from an IRA in the amount of your K1 tax due and have it all withheld for income tax. - Use the IRS Direct Pay from your bank...
by clydewolf
Tue Jan 08, 2019 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Another Generic Medicare / Social Security Question Part 2
Replies: 11
Views: 877

Re: Another Generic Medicare / Social Security Question Part 2

You will have to tell me if it seems normal. Box 3 tells you where her benefits were sent: - Direct Deposit to her bank account - Medicare Part B premiums - Federal Income Tax Withheld - Medicare Advantage Plan Premiums - Does your wife have a Medicare Advantage Plan that requires a premium? - Medic...
by clydewolf
Wed Dec 19, 2018 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Forex Tax Question
Replies: 2
Views: 258

Re: Forex Tax Question

All US tax calculations are done in US Dollars. Using the spot exchange rates there is no gain or loss. If you are investing in foreign currencies, your gain is ordinary income. Here is more that may help you: https://www.irs.gov/individuals/international-taxpayers/foreign-currency-and-currency-exch...
by clydewolf
Tue Dec 18, 2018 7:33 pm
Forum: Personal Finance (Not Investing)
Topic: Maryland 529 Tax Deduction
Replies: 1
Views: 176

Re: Maryland 529 Tax Deduction

Good morning- I know that there is a penalty on an distributed earnings for non-qualified withdrawals. If you only withdraw some of your "base" contributions (not the earnings), is there a penalty related to the MD state tax deduction you took for the contribution? Thanks When there is a distributi...
by clydewolf
Mon Dec 17, 2018 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Marriage and separate accounts - how does it work?
Replies: 98
Views: 5765

Re: Marriage and separate accounts - how does it work?

Married for a looong time. Most of the time we were a one income family.
All bank accounts and CCs were/are joint.
Our budget has always included a weekly allowance for each. No strings, no questions.
by clydewolf
Sun Dec 16, 2018 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA RMD - End of Previous Year Value
Replies: 7
Views: 612

Re: Inherited IRA RMD - End of Previous Year Value

First, did the deceased have an RMD requirement in 2017? Was the 2017 RMD taken? That needs to be done first. The RMD for 2018 would be determined using the account balance on December 31, 2017. The first money coming out of the 401k should be RMD money. The remainder would go to the beneficiary's I...
by clydewolf
Thu Dec 06, 2018 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion for backdoor: wait?
Replies: 25
Views: 1558

Re: Roth conversion for backdoor: wait?

If I were you, I would not foreclose the option of contributing to a non-deductible IRA. The opportunity to contribute would not come again once the tax deadline (April 15th) passes. That is right! After April 15, 2019 you can not make a 2018 contribution to your IRA. 2018 maximum IRA contribution ...
by clydewolf
Thu Dec 06, 2018 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion for backdoor: wait?
Replies: 25
Views: 1558

Re: Roth conversion for backdoor: wait?

For DW, should we: A) bite the bullet and convert the $40k to a Roth right now and pay the taxes (peak income years for me, high marginal rate), I would not suggest this action as it would likely be very tax inefficient. B) contribute $5500 annually post-tax to her tIRA but not convert until we ret...
by clydewolf
Wed Dec 05, 2018 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: How far back can HSA Expenses go?
Replies: 14
Views: 1690

Re: How far back can HSA Expenses go?

If you qualify and use a Schedule A medical deduction, you can not use your HSA to reimburse those expenses.
by clydewolf
Wed Dec 05, 2018 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Whoops, thought wife's tIRA was Roth...help!
Replies: 30
Views: 2417

Re: Whoops, thought wife's tIRA was Roth...help!

[ b] 2003-2007 maxed out post tax tIRA with Scottrade/TD Ameritrade and thought it was Roth: current account value $34,000 2008-2016 maxed out backdoor Roth with advisor (now with Vanguard): current account value $88,000 2017: old employer 401k rolled over to IRA with advisor (now transferred to Van...
by clydewolf
Mon Dec 03, 2018 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Amended tax return / CP2000
Replies: 3
Views: 378

Re: Amended tax return / CP2000

How did the IRS determine your basis for your 2016 sales? Were they on your 1099-B? Did the IRS tell you, you do not need to file a 1040-X for 2016? I think that would be a must do. Anyway, for 2017 your AGI will change because of your Capital Loss Carry Forward. That causes an entry on your 1040-X ...
by clydewolf
Sat Dec 01, 2018 4:33 pm
Forum: Personal Investments
Topic: Please double check our backdoor Roth plan
Replies: 6
Views: 990

Re: Please double check our backdoor Roth plan

Move the IRA gains (tax deferred money) to the 401k first. This will leave only basis in the IRA, then do the conversion to the Roth IRA. The 401k can not legally accept non deductible funds. The Pro-Rata rules take into account ALL Traditional IRAs (including the SEP) to determine the taxable amoun...
by clydewolf
Tue Nov 27, 2018 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: What happens to balance in 401k Rollover after 27 years of withdrawals?
Replies: 9
Views: 843

Re: What happens to balance in 401k Rollover after 27 years of withdrawals?

Or the IRA has no assets or money.... The RMD is a percent of the balance at the end of the previous year. In that respect the account can not be zero and an RMD is then required. On a practical matter some administrators have a minimum account balance, go below that amount and your account will be ...
by clydewolf
Tue Nov 27, 2018 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: What happens to balance in 401k Rollover after 27 years of withdrawals?
Replies: 9
Views: 843

Re: What happens to balance in 401k Rollover after 27 years of withdrawals?

As long as you have a balance in your 401k/IRA you must take an RMD. That will continue until all funds are distributed. Should you die before the account is emptied, remaining funds will become property of your designated beneficiaries. That person(s) will need to take RMDs until the account is dep...
by clydewolf
Sun Nov 18, 2018 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: CDCTC vs FSA
Replies: 6
Views: 474

Re: CDCTC vs FSA

Doesn't your income disqualify you? Didn't look it up. There is no income limit for the Dependent Care Tax Credit (DCTC), form 2441. The FSA cancels out the DCTC. Using the FSA, you can save federal, state, social security and Medicare payroll taxes for their Dependent Care FSA salary reductions.
by clydewolf
Thu Nov 15, 2018 11:20 am
Forum: Personal Finance (Not Investing)
Topic: HSA Rollover?
Replies: 3
Views: 425

Re: HSA Rollover?

I suggest you instruct your employer's HSA administrator to send the check to your other HSA. IRS Pub 969, Health Savings Accounts and Other Tax Favored Health Plans has this on page 7: "If you instruct the trustee of your HSA to transfer funds directly to the trustee of another of your HSAs, the tr...
by clydewolf
Wed Nov 07, 2018 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: US I-bonds to 529 plan/ Tax question
Replies: 8
Views: 1497

Re: US I-bonds to 529 plan/ Tax question

Oddly the 8815 form doesn't mention 529s. The instructions for line 1, column b tell you what to enter here if this is a QTP (Qualified Tuition Program). Does the 529 rollover need to happen the same year you spend on the educational expenses just as if you're using the bonds directly for education...
by clydewolf
Tue Nov 06, 2018 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: What's the 'safest' decision?
Replies: 17
Views: 2454

Re: What's the 'safest' decision?

What path leads to the most financial security for me and my family? really not enough information. A. Pay off 188k 15 year 4.75% fixed rental property loan (that I occupy for small business). Eventually eliminate $1616 monthly payment. For a rental, the interest is a deduction on your schedule E. ...
by clydewolf
Sun Nov 04, 2018 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Issues
Replies: 5
Views: 1323

Re: IRS Issues

Call the IRS and explain that you need more than 30 days to retrieve the data, and suggest the amount of time you need.
Make the trip to Tahoe get your data. Then redo the whole thing as the IRS requests.
by clydewolf
Thu Nov 01, 2018 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: FSA and HSA
Replies: 4
Views: 672

Re: FSA and HSA

Hello, I just realized that today is the last day to signup for Wageworks. 1. Is there any income restriction to signup for Dependent Care Flexible Spending account? As in are we not eligible for this benefit if our joint income is beyond certain number. 2. I am eligible to signup for upto $5000 be...
by clydewolf
Mon Oct 29, 2018 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Claiming the Itemized Deduction on NY Income Tax Return for the 2018 Tax Year
Replies: 7
Views: 857

Re: Claiming the Itemized Deduction on NY Income Tax Return for the 2018 Tax Year

Any idea what this section means? For taxable years beginning on or after January 1, 2018, for purposes of the Empire State Child Credit, the provision’s reference to IRC section 24 will have the same meaning as it did before the TCJA. See this link: https://www.tax.ny.gov/pit/credits/empire_state_...
by clydewolf
Sat Oct 27, 2018 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA Simplified Needs Test now that forms 1040A and 1040EZ are gone
Replies: 21
Views: 2848

Re: FAFSA Simplified Needs Test now that forms 1040A and 1040EZ are gone

Prior to 2018, every tax payer could use Form 1040. Both the 1040-A and 1040-EZ are simplified versions of the 1040. The simplified versions of the 1040 are gone. You will just have to use form 1040.
by clydewolf
Fri Oct 26, 2018 10:24 am
Forum: Personal Finance (Not Investing)
Topic: 401K tax planning
Replies: 3
Views: 374

Re: 401K tax planning

Yes, both you and your spouse can contribute to your respective employer's 401k plan. Each of you can contribute the maximum amount as described by PFInterest. Contributing to a traditional 401k, your contributions as not included in your taxable earnings. Tax will be owed when you take a distributi...
by clydewolf
Thu Oct 18, 2018 10:18 am
Forum: Personal Finance (Not Investing)
Topic: In What Order are Tax Credits Applied?
Replies: 6
Views: 867

Re: In What Order are Tax Credits Applied?

I have not seen anything that would change applying the tax credits from 2017 to 2018 taxes. If you look at page 2 of your 2017 form 1040 you can see how the credits were used there. Pay attention to lines 48 through 54 to reduce your income tax and any excess Advanced Premium Tax Credits you receiv...
by clydewolf
Tue Oct 16, 2018 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: I-bonds to 529 to grandchild
Replies: 4
Views: 601

Re: I-bonds to 529 to grandchild

Treasury Direct has a list of information about the bonds qualifying for education expenses. One item stood out to me that the money (cash) must be in the 529 plan within 60 days. That will be calendar days.
Treasury Direct: https://www.treasurydirect.gov/indiv/pl ... cation.htm
by clydewolf
Wed Oct 10, 2018 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 32
Views: 2532

Re: Elder care tax question(s)

There is no deduction for dependents. But you can claim any medical deduction.
by clydewolf
Sun Oct 07, 2018 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question: Bought a rental property on 12/31/2017...
Replies: 4
Views: 722

Re: Tax question: Bought a rental property on 12/31/2017...

The rental that you purchased on 12/31/2017 available for rent on that day? You must have the property available for rent before you can take depreciation. Otherwise it is just personal property.
by clydewolf
Sat Oct 06, 2018 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Swap to a Roth 401k?
Replies: 12
Views: 1237

Re: Swap to a Roth 401k?

TexasCPA wrote:
Fri Oct 05, 2018 11:14 pm
Can’t I pay the conversion taxes with the funds from my 401k?
Not a good idea. If you are younger than 59-1/2 it will cost you an additional 10%.
by clydewolf
Sat Oct 06, 2018 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Swap to a Roth 401k?
Replies: 12
Views: 1237

Re: Swap to a Roth 401k?

I have about $18,000 in a traditional 401k Is this 401k from a former employer? If "yes", do a transfer to your Roth IRA. and pay the income tax from other savings or current income. and I'm wondering if I should instead pay the taxes and roll this over to my employer's Roth 401k Does your current ...
by clydewolf
Wed Oct 03, 2018 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Help me help my parents with Medicare/Medigap, ACA, and Roth conversion questions
Replies: 6
Views: 798

Re: Help me help my parents with Medicare/Medigap, ACA, and Roth conversion questions

If they make charitable contributions, once they reach age 70-1/2 they can use the Qualified Charitable Distribution (QCD) as their RMD up to $100,000 per year. The QCD does not show up on your 1040 as taxable income. Here is more: https://www.kiplinger.com/article/retirement/T054-C000-S004-ira-qcd-...
by clydewolf
Wed Oct 03, 2018 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Upcoming Medicare Open Enrollment - Widowed Mom
Replies: 6
Views: 502

Re: Upcoming Medicare Open Enrollment - Widowed Mom

My MA provider provides a book describing the 2018 coverage and the 2019 coverage in table form so the two years are shown side by side. The prescription formulary is included in a separate book. Watch for your carrier to hold seminars that explain the changes for 2019 and plan to attend one of thos...
by clydewolf
Wed Sep 26, 2018 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: 529 for Private Elementary School? Minimize capital gains?
Replies: 11
Views: 1253

Re: 529 for Private Elementary School? Minimize capital gains?

There is little time for growth if using a 529 for K-12. Probably the largest benefit comes if you can deduct your contributions from your income on your state income tax return.
by clydewolf
Wed Sep 26, 2018 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Section 179 vehicle purchase vs a new lease
Replies: 3
Views: 477

Re: Section 179 vehicle purchase vs a new lease

The 179 depreciation is an accelerated depreciation. If you would normally depreciate the vehicle over 3 years, you would take the depreciation in smaller amounts over the 3 years. If you were to dispose of the vehicle after one year you would not get the depreciation for years two and three. The sa...
by clydewolf
Wed Sep 26, 2018 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Another Roth IRA conversion question
Replies: 3
Views: 702

Re: Another Roth IRA conversion question

As the others have said, "YES You Can" IF your 401k ALLOWS Accepts Rollovers From IRAs.

I'd do as Wizzard suggests and convert the full amount and pay the tax on the $2,000.
by clydewolf
Mon Sep 24, 2018 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Nursing Home/Medicaid issues
Replies: 10
Views: 1162

Re: Nursing Home/Medicaid issues

Maybe he would talk with a counselor at the local Office for The Aging. This just requires an appointment. Other than time it is at no cost to him.
by clydewolf
Fri Sep 21, 2018 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Attorney Says Putting tIRA in a Revocable Trust is "Complicated" - True?
Replies: 45
Views: 3440

Re: Estate Planning Attorney Says Putting tIRA in a Revocable Trust is "Complicated" - True?

Read your beneficiary agreement with your IRA custodian. Ira beneficiaries are meant to be individuals. Often when there is a trust involved, the entire IRA is distributed and taxed at the time the IRA owner dies. The ability for any "stretch" of the IRA is lost.
by clydewolf
Fri Sep 21, 2018 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Can we use a 529 plan to pay for tuition for daycare and PreK programs ?
Replies: 20
Views: 12228

Re: Can we use a 529 plan to pay for tuition for daycare and PreK programs ?

What is the advantage of using the 529 plan for early elementary tuition?

This is a young child, there has been little time to build savings in the 529 and little time for growth.
Contributions are after tax at the federal level, while there may be some savings at the state level.
by clydewolf
Wed Sep 19, 2018 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Can I reverse a TIRA/Roth IRA distribution and not pay taxes?
Replies: 4
Views: 428

Re: Can I reverse a TIRA/Roth IRA distribution and not pay taxes?

That 60 days is a hard and fast rule of 60 calendar days.
Includes Saturdays Sundays and Holidays.
by clydewolf
Wed Sep 19, 2018 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Dad Died - Handling Mom's Finances
Replies: 17
Views: 2491

Re: Dad Died - Handling Mom's Finances

OP wrote: "My mom is in the process of transferring the IRA into her name" I did not see any place that indicated if your mother was over or under age 59-1/2. If she is less than 59-1/2 she may want to keep some of the IRA as an inherited IRA . She must take penalty free distributions from the inher...
by clydewolf
Thu Sep 13, 2018 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Withholding from RMD'S
Replies: 10
Views: 1017

Re: Withholding from RMD'S

Last December I asked Vanguard to withhold 100% of a distribution for income tax. I was told the most they would withhold is 99% from the distribution for federal income tax. Vanguard had to mail me a check for the 1%.

I am not enrolled in their RMD service.