Search found 783 matches

by clydewolf
Mon Sep 11, 2023 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: How to distribute deceased person's Roth
Replies: 21
Views: 2036

Re: How to distribute deceased person's Roth

Vanguard recently did this for my wife's Roth IRA. Her's was invested in one fund, and distributed equally to our children.

The children must take distributions to empty their inherited Roth IRA by the end of 2033. At least one child plans on taking the maximum yearly IRA contribution amount and then make a contribution to their own Roth IRA.

It took Vanguard about 3 days to be ready to set up the inherited IRAs.
by clydewolf
Fri Jun 23, 2023 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for just Widowed Sister
Replies: 7
Views: 1365

Re: Advice for just Widowed Sister

I recently went through the loss of my spouse.
I found this outline of actions and suggestions helpful.
It is put out by the CFPB: https://s3.amazonaws.com/files.consumer ... ooklet.pdf
by clydewolf
Fri Jun 23, 2023 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: senior living
Replies: 32
Views: 5193

Re: senior living

Is there an Ombudsman program you could discuss this issue with?
by clydewolf
Mon Jun 05, 2023 10:44 am
Forum: Personal Finance (Not Investing)
Topic: SS tax withholding for state income tax
Replies: 8
Views: 1024

Re: SS tax withholding for state income tax

There are 11 states that tax SS benefits.
by clydewolf
Sun Jun 04, 2023 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Genworth LTCI Class Action Settlement
Replies: 0
Views: 447

Genworth LTCI Class Action Settlement

My LTCI is included in a recent class action settlement. My reasons for having the LTCI have gone away earlier this year, so I am selecting a cash payment plus basic paid-up benefits.

In the information about the settlement, there is a section titled Taxes where it states: "Your policy, including any reduced benefits associated with the selection of a settlement option, is intended to be a federally tax qualified long term care insurance contract under Section 7702B(b) of the internal Revenue Code of 1986 as amended." I called to ask if I would receive a 1099-B in January 2024.
The CSR spoke to the tax people and then stated, "They only issue 1099's to beneficiaries."

What can I expect?
by clydewolf
Sat Jun 03, 2023 11:43 am
Forum: Personal Finance (Not Investing)
Topic: List with a realtor vs FSBO?
Replies: 58
Views: 5229

Re: List with a realtor vs FSBO?

There is more to selling real estate than knowing the market.
There are many legal items, and how to attract the right prospective buyers.

The real estate agent deals with these items daily. You deal with these issues maybe a few times a lifetime.
by clydewolf
Mon Apr 03, 2023 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Supporting a Grandnephew's College Education w/o Deincentivizing his Parents??
Replies: 81
Views: 7914

Re: Supporting a Grandnephew's College Education w/o Deincentivizing his Parents??

Allow the parents and student work things out.
If student loans are needed let them borrow.

After he graduates or dropping out because of financial strain, offer to pay off the loans.
by clydewolf
Thu Mar 30, 2023 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Excess IRA Distributions to Reduce Taxes Later
Replies: 9
Views: 815

Re: Excess IRA Distributions to Reduce Taxes Later

When your parents are age 70-1/2 they can make Qualified Charitable Distributions (QCD) from their TIRA.

The QCD is not taxable and can be considered as RMD amounts. The QCD also may reduce the taxable amount of their SS benefit.
by clydewolf
Tue Aug 23, 2022 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: RMD Wash sale Brokerage vs Mutual Fund
Replies: 7
Views: 512

Re: RMD Wash sale Brokerage vs Mutual Fund

When your IRA contains all tax deferred contributions and gains/losses, You pay ordinary income tax on the value of the distributed shares on the date distributed.

That amount would be your basis for any sales from your taxable account.
by clydewolf
Mon Aug 08, 2022 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Genworth Long Term Care Class action Settlement
Replies: 19
Views: 6229

Re: Genworth Long Term Care Class action Settlement

I received my letter in December 2021. Like you i decided to do nothing.
I also have heard nothing and expect nothing.
by clydewolf
Sat May 28, 2022 12:48 pm
Forum: Personal Consumer Issues
Topic: New car purchase
Replies: 31
Views: 3895

Re: New car purchase

by clydewolf
Sun Mar 20, 2022 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Retired....okay to leave it in the 401k?
Replies: 23
Views: 2810

Re: Retired....okay to leave it in the 401k?

This had been mentioned earlier, at age 70-1/2 you can take a tax free Qualified Charitable Distribution (QCD) from your Tira.
The QCD can lower the amount of your SS benefit subject to tax.
This can not be done from a 401k.
by clydewolf
Sat Feb 05, 2022 7:47 am
Forum: Personal Finance (Not Investing)
Topic: 1099-r help
Replies: 21
Views: 2416

Re: 1099-r help

chuckles960,

You write the statement indicating what was done and when.
You have an account statement showing the money leaving the tIRA.
You have an account statement showing the same amount arriving in the employer plan at about the same time.
I would keep these notes and wait for the IRS to respond. They probably will not.
by clydewolf
Tue Feb 01, 2022 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-int
Replies: 5
Views: 690

1099-int

My wife and I are renters. We gave a deposit to the LL and it was put into an account at Big Bank. In the past we received a check each January for the annual interest earned on that account, usually less than $0.50.
This year as usual we received the check for $0.47. A few days later we received a 1099-int from Big Bank showing the interest received as $0.59, and $0.12 withheld for income tax.
How can I include the 12 cents as tax paid? Or should I just forget it?
by clydewolf
Sat Jan 22, 2022 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Renting home to a family member - tax concerns?
Replies: 14
Views: 2226

Re: Renting home to a family member - tax concerns?

OP.

Read IRS Pub 523, Sellimng Your Home ( https://www.irs.gov/pub/irs-pdf/p523.pdf ).
Page 6 has information titled "Other Facts and Circumstances", read that section , you may find some information that may be helpful to your situation
by clydewolf
Tue Jan 18, 2022 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: Can I still file my taxes with freetaxusa?
Replies: 3
Views: 754

Re: Can I still file my taxes with freetaxusa?

You need either an SSN or an ITIN and you can file using freetaxusa.

Use IRS form W7 to request an ITIn.
form W7: https://www.irs.gov/pub/irs-pdf/fw7.pdf
Instructions for form W7: https://www.irs.gov/pub/irs-pdf/iw7.pdf
by clydewolf
Tue Jan 18, 2022 7:34 am
Forum: Personal Finance (Not Investing)
Topic: Rollover from 403B to IRA to fund RMD
Replies: 2
Views: 306

Re: Rollover from 403B to IRA to fund RMD

Dantes,

You most likely have to take an RMD from the 403b for 2022. In an RMD year the first $ removed from a tax deferred plan/IRA are considered RMD $. RMD amounts can not be rolled into another tax deferred account.
by clydewolf
Mon Jan 17, 2022 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: 403(b) Roth Conversion for retired parent
Replies: 5
Views: 512

Re: 403(b) Roth Conversion for retired parent

jATAPIA20, It is good that you are looking out for your mother. If your mother turns 72 at any time during 2021 she must take an RMD for 2021. She can take the RMD any time after January 1,2021 and by April 1, 2022. The first money removed from the 403b will be go toward satisfying the RMD. The RMD must be removed from the 403b before any conversions can be made. RMD $ cannot be converted or rolled over to another tax deferred account. After the RMD is satisfied, she can convert her 403b amount to a Roth IRA. Taxes must be paid on the amount converted to the Roth IRA. To make a Roth contribution you must have earned income. She can make Roth conversions from her 403b to her existing Roth IRA or she can set up a new Roth IRA. If your mother ...
by clydewolf
Thu Sep 09, 2021 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: will withdraw from IRA
Replies: 4
Views: 592

Re: will withdraw from IRA

Use form 8606 Part III. It is not clear if you returned your contributions or took a distribution. See instructions for Form 8606 Part III (https://www.irs.gov/instructions/i8606). Scroll down about 75%.
by clydewolf
Wed Sep 08, 2021 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: will withdraw from IRA
Replies: 4
Views: 592

Re: will withdraw from IRA

Is form 5329 needed to report the 10% early distribution penalty? It depends.

This form is not needed when your 1099-r box 7 shows a code 1.

For more see tax topic 557: https://www.irs.gov/taxtopics/tc557
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: 138
Views: 15381

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: 344

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: 344

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: 5548

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: 731

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-o ... er-new-law

Interest on a refinanced mortgage is deductible. The OP would be refinancing the loan.
See this from Lending Tree: https://www.lendingtree.com/home/home-e ... deduction/
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: 548

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: 3420

Re: Rural Home: Getting Hardwired?

Would you pay $10,000 for a new roof?
by clydewolf
Thu Feb 13, 2020 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Move tax deferred retirement from CPC to Fidelity
Replies: 3
Views: 332

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 can determine your capital gain or loss. If you purchased your assets since about 2011 and later, when you sell, your broker is to report to you and the IRS your cost basis. However it is still the responsibility of the investor to keep track of their basis.
by clydewolf
Wed Jan 29, 2020 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Different state residency than spouse
Replies: 4
Views: 700

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 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Does High Income Ever Effect Possible 401k Contributions
Replies: 12
Views: 1510

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 shows your contribution limits based on MAGI and filing status and also if you are covered by a plan at work: https://www.irs.gov/retirement-plans/20 ... an-at-work
by clydewolf
Tue Jan 28, 2020 1:54 pm
Forum: Personal Consumer Issues
Topic: Toy overload alternatives for grandparents
Replies: 104
Views: 7426

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 we started 529 plans for each great grand child.
by clydewolf
Fri Jan 24, 2020 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: Help with Form 1040 Lines 4a-d
Replies: 3
Views: 604

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 you will receive an form 5498 from Fidelity showing they received the money from TIAA and a second 5498 showing the amount converted to a Roth IRA. Keep these forms 5498 as long as you have a Roth IRA.

Also as FiveK said complete the form 8606 and keep that too.
by clydewolf
Thu Jan 23, 2020 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI vs AGI with Rental for Roth IRA
Replies: 10
Views: 721

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 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI vs AGI with Rental for Roth IRA
Replies: 10
Views: 721

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 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Roll 403B to IRA
Replies: 1
Views: 222

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: 544

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 transaction.
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: 3328

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 paid over the years enter into the distribution equation?

This feud will never be evened out.

Dad can try, the best way is to see that #2 and #3 each get $220,000 today.
by clydewolf
Tue Apr 23, 2019 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Late tax payment penalty
Replies: 7
Views: 891

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: 1083

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 have not reached age 59-1/2, an additional 10% penalty is applied. As another poster stated, this is to protect us from ourselves. Listed in IRS Pub 590-B are some exceptions to the 10% penalty perhaps one of these will apply to you. See the exceptions on page 22 here: https://www.irs.gov/pub/irs-pdf/p590b.pdf Whatever your reason for taking a distribution, generally the distribution can not be paid back to the IRA. But there are some exceptions to...
by clydewolf
Sat Mar 09, 2019 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: Cash Balance Pension to IRA Rollover
Replies: 11
Views: 1009

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 ... -transfers
Where it says you can move a tax deferred 401k to a Roth IRA, and adds the warning about the taxes that would be needed for the Roth conversion.

The OP should also ask Vanguard if Vanguard has any bonus offer for the transfer.
by clydewolf
Mon Feb 11, 2019 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Siblings and Inherited Property
Replies: 53
Views: 7656

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 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: United States tax software
Replies: 10
Views: 952

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 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Quarterly Taxes Question
Replies: 5
Views: 891

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 account: https://www.irs.gov/payments/direct-pay
- Make estimated quarterly payments using form 1040-ES.
by clydewolf
Tue Jan 08, 2019 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Another Generic Medicare / Social Security Question Part 2
Replies: 11
Views: 1031

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?
- Medicare Part D premiums - Does your wife have a Medicare Part D plan?

Some Advantage Plans include the Prescription coverage, some do not. It appears your wife's Advantage Plan does not include prescription coverage.

From what you provided, the math looks good.
by clydewolf
Wed Dec 19, 2018 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Forex Tax Question
Replies: 2
Views: 362

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/interna ... ange-rates
by clydewolf
Tue Dec 18, 2018 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Maryland 529 Tax Deduction
Replies: 1
Views: 284

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 distribution from the 529 plan it is part contribution and part earnings. You will receive a form 1099-Q showing the distribution amount in box 1. Box 2 will show the earnings, and box 3 will show your basis (contributions). When a distribution is used for non-qualified education expenses, the earnings are considered taxable income. For non-qualified distributions there is a 10% penalty on the part that is considered income. Because money is fung...
by clydewolf
Mon Dec 17, 2018 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Marriage and separate accounts - how does it work?
Replies: 98
Views: 7645

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.