Search found 760 matches

by clydewolf
Sun Jul 26, 2020 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Graph of how SS benefits can change with decreases in 2020 national wages for one born in 1960
Replies: 89
Views: 6808

Re: What the Heck, Reduced SS Benefits For Boomers Born In 1960 due to COVID

retireingwhen aske, "Doesn't this happen every time we have a recession? Why is this time different?"

This time is different because this time I am aware of what's happening and it's happening to me!
by clydewolf
Thu Jun 11, 2020 12:29 pm
Forum: Personal Investments
Topic: QCD and Inherited IRA
Replies: 4
Views: 234

Re: QCD and Inherited IRA

Thanks for the confirmation!
by clydewolf
Thu Jun 11, 2020 9:25 am
Forum: Personal Investments
Topic: QCD and Inherited IRA
Replies: 4
Views: 234

QCD and Inherited IRA

Age 75, inherited an IRA from my uncle. Can I do a QCD from this IRA?
by clydewolf
Tue May 26, 2020 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Worst House on the best block?
Replies: 52
Views: 4533

Re: Worst House on the best block?

You may not be considering using the public school system.
The next buyer of the house may want that good school system.
by clydewolf
Mon Apr 27, 2020 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Tax deduction for HELOC/home equity loan used to pay off a personal loan I used for home improvement
Replies: 10
Views: 398

Re: Tax deduction for HELOC/home equity loan used to pay off a personal loan I used for home improvement

Home Equity Lines of Credit are deductible with some limitations: https://www.irs.gov/newsroom/interest-on-home-equity-loans-often-still-deductible-under-new-law Interest on a refinanced mortgage is deductible. The OP would be refinancing the loan. See this from Lending Tree: https://www.lendingtree...
by clydewolf
Mon Apr 20, 2020 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: Helping Family Member w/Retirement income tax estimate post-layoff
Replies: 7
Views: 430

Re: Helping Family Member w/Retirement income tax estimate post-layoff

There are some differences if the SS beneficiary is married or single.

AARP has this explanation for the taxing of SS benefits: https://www.aarp.org/retirement/social- ... -ss-taxed/
by clydewolf
Mon Apr 06, 2020 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Rural Home: Getting Hardwired?
Replies: 39
Views: 2679

Re: Rural Home: Getting Hardwired?

Would you pay $10,000 for a new roof?
by clydewolf
Thu Feb 13, 2020 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Move tax deferred retirement from CPC to Fidelity
Replies: 3
Views: 239

Re: Move tax deferred retirement from CPC to Fidelity

If your account at CPC is a tax deferred account (IRA, 401k, etc), cost basis does not matter, it is of no importance. Unless you want to cash out the account and claim a loss. If your account CPC is a taxable investment account then you will need the cost basis at the time you make a sale so you ca...
by clydewolf
Wed Jan 29, 2020 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Different state residency than spouse
Replies: 4
Views: 580

Re: Different state residency than spouse

How do you file your state taxes for VA? For NC? Resident? Non-Resident?

Where do you spend most nights?

Where do you have your driver's license? Your cars are registered in NC.

Where are you registered to vote?

Where do you receive your mail?

It sounds like you are a resident of NC.
by clydewolf
Tue Jan 28, 2020 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Does High Income Ever Effect Possible 401k Contributions
Replies: 12
Views: 1292

Re: Does High Income Ever Effect Possible 401k Contributions

401k contributions can be limited if you are a Highly Compensated Employee (HCE). The employer's plan will tell you if you are an HCE and have contributed too much to the 401k plan. The plan will return the excess contribution probably some time after the plan year has ended. For IRAs, this chart sh...
by clydewolf
Tue Jan 28, 2020 2:54 pm
Forum: Personal Consumer Issues
Topic: Toy overload alternatives for grandparents
Replies: 104
Views: 5770

Re: Toy overload alternatives for grandparents

As a grand parent we gave Series E bonds when they were paper. Then we switched to cash suggesting that the child make a deposit to their savings account. We also provided magazine subscriptions appropriate for their age. Now as great grand parents, we do not buy toys. We do the magazine thing, and ...
by clydewolf
Fri Jan 24, 2020 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Help with Form 1040 Lines 4a-d
Replies: 3
Views: 461

Re: Help with Form 1040 Lines 4a-d

On line 4a report the Fidelity 1099-r converting from the IRA at Fidelity to a Roth IRA at Fidelity. "Conversion" is written on the line. The taxabe amount will show on line 4b. The distribution from TIAA will be reported on line 4c. Line 4d will be blank. "Rollover" is written on this line. Later y...
by clydewolf
Thu Jan 23, 2020 7:20 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI vs AGI with Rental for Roth IRA
Replies: 10
Views: 562

Re: MAGI vs AGI with Rental for Roth IRA

As I look at your Schedule E, you did not have any income from your rental, you had a loss. That loss figured into your AGI.

Passive income does not qualify a taxpayer for contributing to an IRA. Only earned income can qualify a taxpayer for contributing to an IRA.

Follow the IRS Pub.
by clydewolf
Thu Jan 23, 2020 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI vs AGI with Rental for Roth IRA
Replies: 10
Views: 562

Re: MAGI vs AGI with Rental for Roth IRA

IRS Pub 590a has worksheet 2.1 to help you calculate your MAGI for Roth IRA contribution purposes.
See page 40 here: https://www.irs.gov/pub/irs-pdf/p590a.pdf
by clydewolf
Fri Jan 03, 2020 5:30 pm
Forum: Personal Finance (Not Investing)
Topic: Roll 403B to IRA
Replies: 1
Views: 169

Re: Roll 403B to IRA

There will be no taxes due for this transfer.

Vanguard has no charge for this transfer.

Voya may have a fee or service charge.

Probably Voya will send your wife a check made payable to "Vanguard for benefit of your wife".
by clydewolf
Fri Nov 01, 2019 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Closed Pension Payout or Transfer
Replies: 4
Views: 446

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: 2946

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: 710

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: 914

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: 824

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: 6931

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: 810

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: 787

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: 897

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: 273

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: 198

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: 6012

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: 628

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: 1599

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: 1599

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: 1731

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: 2464

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: 392

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: 1025

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: 861

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: 861

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: 515

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: 470

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: 1577

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: 2483

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: 1355

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: 705

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: 879

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: 16
Views: 3027

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: 381

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: 917

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: 611

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: 2692

Re: Elder care tax question(s)

There is no deduction for dependents. But you can claim any medical deduction.