Search found 677 matches

by clydewolf
Mon Dec 04, 2017 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: How do QCDs relate to RMDs?
Replies: 22
Views: 1239

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: 1239

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: 1239

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: 523

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: 1858

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: 1887

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: 1887

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: 580

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: 650

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: 1578

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: 906

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: 623

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: 1547

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: 686

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: 1313

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: 580

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: 305

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: 1308

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: 1488

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: 1308

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: 1274

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: 1308

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: 887

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: 1129

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: 2969

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: 808

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: 400

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: 838

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: 5499

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: 616

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: 1280

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: 616

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: 761

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 ...
by clydewolf
Fri Oct 06, 2017 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA conversion my only "income" and when/how to pay taxes
Replies: 8
Views: 761

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.
by clydewolf
Fri Oct 06, 2017 7:14 pm
Forum: Investing - Help with Personal Investments
Topic: partial 401k to IRA questions
Replies: 5
Views: 385

Re: partial 401k to IRA questions

thanks for the advice, what again is the summary plan description? and why do I need to inform myself of it? Your 401k has a plan document that describes how the 401k operates. It lists the plan's funds, the rules for exchanging funds, taking distributions, and rules for vesting employer match and ...
by clydewolf
Wed Oct 04, 2017 10:17 am
Forum: Investing - Help with Personal Investments
Topic: Bonds in Both 401K and Taxable?
Replies: 9
Views: 738

Re: Bonds in Both 401K and Taxable?

Why would you want tax exempt munis in a 401k?
Distributions from the 401k will be taxed as ordinary income removing the tax exempt feature of the muni.

Here is more: http://www.bankrate.com/retirement/why- ... gh-a-401k/
by clydewolf
Sat Sep 23, 2017 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: grad student - how much to contrib to IRA
Replies: 14
Views: 1126

Re: grad student - how much to contrib to IRA

IRS Pub 590A, Contributions to Individual Retirement Arrangements, has this to say:
"Scholarship and fellowship payments are compen-
sation for IRA purposes only if shown in box 1 of Form
W-2."


See page 6 at: https://www.irs.gov/pub/irs-pdf/p590a.pdf
by clydewolf
Sat Sep 23, 2017 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Executor died, as beneficiary can I become executor?
Replies: 9
Views: 1184

Re: Executor died, as beneficiary can I become executor?

Sorry to hear of your loss of your mother and uncle.

You can contact the probate court that is handling your mother's estate. I am sure they have had this situation before, and will help to guide you through the process to be appointed executor.
by clydewolf
Sat Sep 23, 2017 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion conundrum
Replies: 5
Views: 631

Re: Roth conversion conundrum

The surviving spouse is likely to move into the 28% tax bracket. This is caused by the loss of one personal exemption and a change to the standard deduction to Single. Doing a Roth conversion at this time may aggravate this situation.
by clydewolf
Thu Sep 21, 2017 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Funding parent IRA
Replies: 10
Views: 865

Re: Funding parent IRA

Yes, an IRA requires earned income. Some people "hire" their children, many set up an IRA as soon as the child starts their first job and match their income. The only exception to earned income is that you can fund your spouse's IRA with your income. Alimony is also considered qualified income for ...
by clydewolf
Sat Sep 16, 2017 8:42 am
Forum: Personal Finance (Not Investing)
Topic: 2018 Tax Threshold Estimates
Replies: 12
Views: 1503

Re: 2018 Tax Threshold Estimates

In 2017 the Medicare B premium for new beneficiaries is about $134 per month. If your current medicare premium is less than the $134, you can easily see that your SS benefit adjustment will go toward paying more for Medicare B. As for the taxing of our SS benefit, when we are age 70-1/2 and have a T...
by clydewolf
Sat Sep 09, 2017 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security bend points/early retirement estimates
Replies: 17
Views: 2984

Re: Social Security bend points/early retirement estimates

SS uses your thirty-five highest earning years (including zeros for non earning years) to determine your SS benefit. For most workers the last 35 years will be their highest earning years. The bend points on the curve make the SS benefit higher for low earners vs higher income earners. So while the ...
by clydewolf
Sat Sep 09, 2017 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Moving Deduction from Remote to Desk Job at Two Different Companies
Replies: 7
Views: 765

Re: Moving Deduction from Remote to Desk Job at Two Different Companies

Hi all, I previously moved from a remote position where I worked 230 miles from HQ to a new job at a new company 10 miles from old company HQ. My commuting distance was zero as a remote employee. My new job is 240 miles from my former home where I worked remotely. I moved as a result of the offer a...
by clydewolf
Thu Sep 07, 2017 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Hurricane - Dealing with Ins. & neighbors
Replies: 19
Views: 2327

Re: Hurricane - Dealing with Ins. & neighbors

Who owns the fence?
Who is responsible for maintenance of the fence?
That is who will pay for repairs/replacement/removal.

Unless you have a unique homeowner's insurance policy, do not expect any help/reimbursement from your insurance.
by clydewolf
Fri Sep 01, 2017 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: Help me make sense of my 2017 federal tax calculation
Replies: 22
Views: 2271

Re: Help me make sense of my federal tax calculation

Looks like your wife cannot deduct her IRA contribution since you're covered by a retirement plan and your AGI is too high. Tell us more about child care expense. Is she contributing to a Dependent Care Spending account? What is the AGI limit for MFJ? See the information here for deducting IRA cont...
by clydewolf
Tue Aug 29, 2017 10:36 am
Forum: Personal Finance (Not Investing)
Topic: 529 for R&B-Off Campus Housing
Replies: 17
Views: 1536

Re: 529 for R&B-Off Campus Housing

As I understand it you are allowed to pull room and board from the 529 even if you child is still living at home. That is correct. What sort of documentation do you need to keep for this. If the school has dorms you would use the R&B amount they publish. If this is a CC without dorms, the school ma...