Search found 690 matches

by clydewolf
Sat Jun 16, 2018 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: RMDs based on 1986 life expectancy versus today?
Replies: 23
Views: 2063

Re: RMDs based on 1986 life expectancy versus today?

........ (and I have at least 6 years to go before RMDs start.) I say "at least" because I may work part-time indefinitely at my current employer, which further delays RMDs and also allows more time for gradual additional Roth conversions........ Oh, boy. Now I am really confused. :? I thought the ...
by clydewolf
Thu May 31, 2018 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Roommate in a house?
Replies: 32
Views: 3067

Re: Roommate in a house?

Here is some information from the IRS: https://www.irs.gov/businesses/small-businesses-self-employed/rental-income-and-expenses-real-estate-tax-tips It sounds like you SO owns the house so she can also take some depreciation. Will you beproviding services such as lawn mowing, snow shoveling? Your se...
by clydewolf
Mon May 28, 2018 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Have you ever overpaid your federal income tax bill?
Replies: 17
Views: 1547

Re: Have you ever overpaid your federal income tax bill?

Overpaid a month and a half ago. Went to put $6500 in my Roth IRA just before I filed in April and accidentally put it in my tIRA. Filed a 1040x the next week (and a state 140x). Still waiting for both refunds. You may want to make a conversion to your Roth IRA of that contribution to your tIRA. Bu...
by clydewolf
Sun May 27, 2018 11:25 am
Forum: Personal Finance (Not Investing)
Topic: HSA limit validations
Replies: 4
Views: 493

Re: HSA limit validations

Is this correct "- she is eligible to contribute up to the limit for individual $3450 in 2018?" This is correct whether she covers the children or not. - I am eligible to contribute to same $3450 (regardless of whether I cover kids or not) ? or is it family limit $6900 ? You can contribute $3450 whe...
by clydewolf
Mon Feb 19, 2018 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Early Withdrawal ira
Replies: 7
Views: 467

Re: Early Withdrawal ira

Your contributions to the Roth IRA can be distributed tax free and penalty free. Any amount beyond your contributions is gains. If you are not 59-1/2 then they will be taxed and subject to a 10% early distribution penalty. If you are age 59-1/2 and older the 10% early distribution goes away. But the...
by clydewolf
Mon Feb 19, 2018 9:02 am
Forum: Personal Finance (Not Investing)
Topic: TaxSlayer backdoor Roth IRA help
Replies: 15
Views: 1590

Re: TaxSlayer backdoor Roth IRA help

As FiveK suggests, change the 1099-R box 2a to $1. That $1 is a taxable conversion.
by clydewolf
Mon Feb 12, 2018 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule B Interest Question
Replies: 14
Views: 1320

Re: Schedule B Interest Question

Box 3 is exempted from State Income tax.

For your federal return it will not matter.
by clydewolf
Mon Feb 12, 2018 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Capital gains taxes when selling joint property?
Replies: 5
Views: 676

Re: Capital gains taxes when selling joint property?

Checkout IRS Pub 523, Selling Your Home. There are some exemptions to the 24 month live-in rule.
https://www.irs.gov/pub/irs-pdf/p523.pdf
by clydewolf
Sun Feb 11, 2018 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Converting to Roth a 2017 contribution made in 2018
Replies: 7
Views: 570

Re: Converting to Roth a 2017 contribution made in 2018

You can convert your 2017 TIRA contribution made in 2018. It will be a 2018 conversion. It will be reported on form 8606 when you file your tax return for 2018.
by clydewolf
Sun Feb 04, 2018 10:31 am
Forum: Personal Finance (Not Investing)
Topic: 529 for private elementary school?
Replies: 26
Views: 2020

Re: 529 for private elementary school?

While federal tax rules allow for 529 funds to pay for primary education, the 529 you set up prior to 2018 would not allow that. State 529 plans need to change their rules before 529 funds can be used for primary and secondary education expenses. That means the state legislature must take some action.
by clydewolf
Wed Jan 10, 2018 7:32 pm
Forum: Investing - Help with Personal Investments
Topic: Roth help - income limit
Replies: 13
Views: 1091

Re: Roth help - income limit

That plan would work as long as your IRA custodian has no restrictions.
by clydewolf
Mon Jan 01, 2018 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare - Duration of Paying in System for Full Eligibility
Replies: 3
Views: 511

Re: Medicare - Duration of Paying in System for Full Eligibility

Generally when you qualify for SS benefits, at age 65 you will qualify for Medicare part A. Here is more: https://www.hhs.gov/answers/medicare-and-medicaid/who-is-elibible-for-medicare/index.html For SS benefits, you need 10 years of employment. Working longer and higher earnings will increase your ...
by clydewolf
Sun Dec 17, 2017 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Paying for Roth Conversions
Replies: 3
Views: 673

Re: Paying for Roth Conversions

Estimated payments are not required whenever there is enough withheld from other sources.
Payroll withholding will work just fine.
by clydewolf
Mon Dec 04, 2017 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: How do QCDs relate to RMDs?
Replies: 22
Views: 1679

Re: How do QCDs relate to RMDs?

The QCD may also lower the taxable part of your SS benefit.
by clydewolf
Sat Dec 02, 2017 10:49 am
Forum: Personal Finance (Not Investing)
Topic: How do QCDs relate to RMDs?
Replies: 22
Views: 1679

Re: How do QCDs relate to RMDs?

But how about this: Late in the year, you decide to take more money out than the RMD even though that is not what you intended to do earlier in the year. What happens then if you did QCDs after some of your other withdrawals? When the RMD is satisfied, and then a QCD is made, the distribution that ...
by clydewolf
Sat Dec 02, 2017 10:41 am
Forum: Personal Finance (Not Investing)
Topic: How do QCDs relate to RMDs?
Replies: 22
Views: 1679

Re: How do QCDs relate to RMDs?

In January 2019, the OP will receive a1099-R from his IRA custodian. That will show $85,000 being distributed and a code 7 in box 7. On the OP's 2018 1040 line15a the $85,000 will show. Line 15b will show $65,000 with a note QCD in the margin for the line. The $20,000 QCD is kept out of the income c...
by clydewolf
Thu Nov 30, 2017 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: Deductible Expenses Paid by Credit Card--Timing
Replies: 6
Views: 708

Re: Deductible Expenses Paid by Credit Card--Timing

You borrowed the money to pay the medical bill.

Now you must pay the loan.
by clydewolf
Wed Nov 22, 2017 1:32 pm
Forum: Personal Consumer Issues
Topic: How do I sell silver coins?
Replies: 13
Views: 2109

Re: How do I sell silver coins?

I acquired a collection of silver coins.
When I sold them, I went to a local coin dealer. He stated a price for each coin after he viewed the coin.
by clydewolf
Tue Nov 21, 2017 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: RMD and taxes
Replies: 16
Views: 2277

Re: RMD and taxes

The RMD will probably cause more of your SS benefit to be subjected to income tax.

The QCD will not show on your 1040 line 15b so the QCD does not figure into the taxing of SS benefits.
by clydewolf
Mon Nov 20, 2017 10:26 am
Forum: Personal Finance (Not Investing)
Topic: RMD and taxes
Replies: 16
Views: 2277

Re: RMD and taxes

Another way to reduce the tax on your RMD is by making your charitable contributions using the Qualified Charitable Distribution (QCD). The QCD can be made up to $100,000 from your IRA and counts as RMD. Here is more: https://www.investopedia.com/articles/financial-advisors/032116/how-use-qcd-rule-r...
by clydewolf
Sun Nov 19, 2017 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: How to take income from IRA?
Replies: 8
Views: 768

Re: How to take income from IRA?

What is the recommended or preferred way(s) to take income from a tax-deferred account? a) take dividends & capital gains from bond funds, or b) take dividends from bond fund & reinvest capital gains, or c) take dividends & capital gains from stock funds, or d) take dividends from stock fund & rein...
by clydewolf
Fri Nov 17, 2017 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Are my husband's traditional IRA contributions deductible for 2017?
Replies: 9
Views: 819

Re: Are my husband's traditional IRA contributions deductible for 2017?

Until November of 2016, my husband worked on a federal government contract with a company that provided a 401(k) plan and other employee benefits. At that time the contract was up for rebid, and his company lost out to another company that offered no benefits. As a result, up until this point in 20...
by clydewolf
Wed Nov 15, 2017 6:34 pm
Forum: Investing - Help with Personal Investments
Topic: Been thinking about this post for a while...Mom's retirement
Replies: 13
Views: 1865

Re: Been thinking about this post for a while...Mom's retirement

Cost$2Live wrote:
Wed Nov 15, 2017 2:06 pm
My father passed away earlier this year

Tax Filing Status: Single
A minor point, Your mother will file MFJ for 2017.

Unless she remarries, she will file as Single for 2018.
by clydewolf
Sat Nov 11, 2017 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance Options
Replies: 8
Views: 1101

Re: Long Term Care Insurance Options

The feature is called non forfeiture and it will stay with the policy. The question is do you need the coverage. LTC coverage is expensive because care is expensive. Compare your rates with a new policy and you will see you still have a very competitive policy. IF you can still qualify for that new...
by clydewolf
Tue Nov 07, 2017 10:06 am
Forum: Personal Finance (Not Investing)
Topic: sell bonds to pay off boat?
Replies: 12
Views: 810

Re: sell bonds to pay off boat?

Definition of a Boat: A hole in the water where you keep throwing in more money.

I'd sell the boat.
by clydewolf
Sat Nov 04, 2017 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Parent question: does it pay for them to stretch to max 401k last year of working?
Replies: 17
Views: 1821

Re: Parent question: does it pay for them to stretch to max 401k last year of working?

LITeacher wrote:
Fri Nov 03, 2017 8:42 pm
They're in NY now
NY does not tax 401k contributions.

Moving to Fl, there is no income tax for distributions.

Maximizing contributions this year may turn out to be a good move.
by clydewolf
Fri Nov 03, 2017 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: "Re-Recharacterize" Traditional to Roth
Replies: 12
Views: 912

Re: "Re-Recharacterize" Traditional to Roth

OP, Determine if your current 401k plan will accept a transfer in from your Traditional IRA Rollover account (TIRA). A 401k can only accept Tax Deferred money. The 401k can not accept any After Tax money. So if your after tax contribution is still in your IRA, leave it there. Get the tax deferred am...
by clydewolf
Fri Nov 03, 2017 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Buying/Selling I-Bonds and taxes
Replies: 10
Views: 1519

Re: Buying/Selling I-Bonds and taxes

4) Our daughter is on NY Child Health Plus insurance, so we're trying to keep our MAGI under $81,684 to maintain a premium subsidy. Looking at form 8815, Schedule B, and form 1040, it doesn't look to me like excluded interest from I-Bonds used for education counts as "non-taxable interest" that wou...
by clydewolf
Sun Oct 29, 2017 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: 15 months for ROTH IRA
Replies: 6
Views: 771

Re: 15 months for ROTH IRA

Each year you make a contribution to your IRA, the following May you (and the IRS) will receive a Form 5498 showing how much was contributed to your IRA. Most likely your IRA custodian counted your contributions for 12 months. If that is not the case you would have over contributed only for the firs...
by clydewolf
Sun Oct 29, 2017 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion and lump sum pension
Replies: 5
Views: 410

Re: Roth conversion and lump sum pension

So my wife and I will be doing Roth conversions starting next year.I just retired and will be 66 next year and wife will be 68. We want to convert to the top of the 15pct bracket. Question I have about 750K in mine and she has 156.She will also be taking a lump sum pension of about 90K at 70 and ro...
by clydewolf
Thu Oct 26, 2017 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Breaking 5 year CD
Replies: 15
Views: 1556

Re: Breaking 5 year CD

The OP should read the penalty for early distributions from his CDs.

That and the calculator in the link above should give enough information about breaking the 5 year CDs.
by clydewolf
Thu Oct 26, 2017 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: small claim for 401k
Replies: 15
Views: 1888

Re: small claim for 401k

Did the employer make matching contributions to the 401k for the missing year?
by clydewolf
Thu Oct 26, 2017 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Breaking 5 year CD
Replies: 15
Views: 1556

Re: Breaking 5 year CD

So? The other two would still earn more (slightly) over the next two years, one ends in two years, and the other could be broken in two years if needed. The 5 year CD that was just started is a no brainer. There will be minimal/no penalty for termination today. Waiting for 2 years to terminate the ...
by clydewolf
Thu Oct 26, 2017 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Living trust and beneficiary
Replies: 12
Views: 1686

Re: Living trust and beneficiary

Hello everybody, I have a living trust where the house i own will go to my son when i pass away. Should i include my IRA / 401K/ assets in mutual funds and bank accounts into the trust. Or naming him as my sole beneficiary on these different accounts enough to avoid probate. Thank you so much for y...
by clydewolf
Thu Oct 26, 2017 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Breaking 5 year CD
Replies: 15
Views: 1556

Re: Breaking 5 year CD

Current CDs are 5 year periods.

newly found CD at 2.1% isa 2 year period
by clydewolf
Wed Oct 25, 2017 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Retired at 72; Timing of First RMD
Replies: 5
Views: 1038

Re: Retired at 72; Timing of First RMD

I would suggest transferring the 401k to an IRA. Then you could take advantage of the Qualified Charitable Distribution (QCD) in 2018. The QCD is available only from IRAs. The QCD is tax not taxed. The QCD will count toward your RMD up to $100,000 per year. The QCD will also help to limit the amount...
by clydewolf
Sat Oct 21, 2017 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversions... I don't get it.
Replies: 10
Views: 1354

Re: Roth Conversions... I don't get it.

So... form 8606? As you said, I see no limitation. Since it would all be at Vanguard it should be simple. I just need to look at conversion amounts and expected future RMDs (and the tax effects), to decide how much to convert. Thank you! Don't be in a hurry to claim SS benefits. You can use IRA dis...
by clydewolf
Fri Oct 20, 2017 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance and Retirement Savings
Replies: 21
Views: 3442

Re: Inheritance and Retirement Savings

So, here are my questions: what, if anything, should we be doing in 2017 to minimize short term or long-term tax hits? Part of me is thinking that doing a Roth conversion now would be a good idea. Another good idea might be maximizing our IRA/401k investments. We're also looking at paying off all o...
by clydewolf
Fri Oct 20, 2017 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Contribution Limits
Replies: 4
Views: 941

Re: 401K Contribution Limits

My employer limits contributions to my 401k at the lesser of 27% of my pay or the IRS limit ($54K). Are catch-up contributions included in the 27% calculation? I know they are not in the IRS limit (i.e. I can save up to $60k). Thanks Usually catch-up contributions are in addition to other limits. B...
by clydewolf
Thu Oct 19, 2017 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: How much tax do I pay on stocks sold through brokerage account?
Replies: 6
Views: 513

Re: How much tax do I pay on stocks sold through brokerage account?

To determine how much tax, your total income needs to be known. You will pay Capital Gains Tax on the amount of gain you have. Late January your broker will send you a 1099-B showing the sale. This document may show your basis in the stock depending on when you made the purchase, and the date of pur...
by clydewolf
Wed Oct 18, 2017 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: Beginner Seeking 401K and IRA Advice!
Replies: 10
Views: 1090

Re: Beginner Seeking 401K and IRA Advice!

Good suggestions on investing.

I do hope you are paying your parents some amount for Room and Board!
by clydewolf
Thu Oct 12, 2017 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 46
Views: 6320

Re: Tax Bracket in Retirement

Once a retiree is aged 70-1/2 they can eliminate the tax on their IRA distributions, up to $100,000 per year by taking advantage of the Qualified Charitable Distribution. This may also help to limit the amount of your SS benefit that is taxable.
by clydewolf
Mon Oct 09, 2017 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: US I-bonds to 529 plan/ Tax question
Replies: 6
Views: 788

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
Mon Oct 09, 2017 9:05 am
Forum: Investing - Help with Personal Investments
Topic: 529 help
Replies: 22
Views: 1517

Re: 529 help

Any law changes would likely grandfather 529 accounts somehow.
by clydewolf
Sun Oct 08, 2017 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: US I-bonds to 529 plan/ Tax question
Replies: 6
Views: 788

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

You will use IRS form 8815 to report the transfer: https://www.irs.gov/pub/irs-pdf/f8815.pdf You will receive a 1099-int showing you received the I bond interest and it will be reported on your 1040 schedule b line 1 along with your other interest, summed on line 2. The excludable interest from form...
by clydewolf
Sat Oct 07, 2017 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA conversion my only "income" and when/how to pay taxes
Replies: 8
Views: 976

Re: Roth IRA conversion my only "income" and when/how to pay taxes

How do you qualify for a refund with no earned income? You need earned income for the Earned Income Tax Credit (EITC). You need earned income for the Child Tax Credit. When your only income is from a Roth Conversion, you may not have any income tax to pay, but I don't see a refund. A refund may be ...