Search found 18 matches

by kambyvk
Sun Mar 08, 2020 6:38 am
Forum: Personal Investments
Topic: Guidance on investing Indian money in India and reducing tax liability in US
Replies: 4
Views: 536

Re: Guidance on investing Indian money in India and reducing tax liability in US

India and US have a Double Taxation Avoidance Agreement (DTAA). This protects you from having to pay taxes in both countries on the same item. Therefore, while you must declare your worldwide income in your US return, you can claim credit for taxes paid in India on certain items in your US return. S...
by kambyvk
Wed Jan 08, 2020 1:25 am
Forum: Personal Investments
Topic: How to revert Roth IRA contribution when income eligibility exceeded
Replies: 26
Views: 1488

Re: How to revert Roth IRA contribution when income eligibility exceeded

retiredjg: Yes, I did get the $6500 back from 2018 to my cash account. They (Fidelity) advised me to leave the earnings on the contribution in the Roth IRA as IRS guidelines are unclear on how to treat them. Options 3 or 4 are my best bets given that the nondeductible portion in the Rollover IRA is ...
by kambyvk
Wed Jan 08, 2020 1:05 am
Forum: Personal Investments
Topic: How to revert Roth IRA contribution when income eligibility exceeded
Replies: 26
Views: 1488

Re: How to revert Roth IRA contribution when income eligibility exceeded

4. My employer 401K will accept a roll-in from my Rollover IRA but only the part of it that is deductible i.e. the portion without the funds from the recent Roth --> tIRA recharacterization. This is not easy to separate because of 3. There is still hope! With 2018 excess contribution removed from y...
by kambyvk
Fri Jan 03, 2020 4:02 am
Forum: Personal Investments
Topic: How to revert Roth IRA contribution when income eligibility exceeded
Replies: 26
Views: 1488

Re: How to revert Roth IRA contribution when income eligibility exceeded

Since many of you took the time to respond and make valuable suggestions, which I greatly appreciate, I feel obligated to bring this to closure with the following updated info. from a recent call to Fidelity. I had misunderstood what was actually done. 1. 2018 contribution: was handled as a return o...
by kambyvk
Thu Dec 26, 2019 11:31 am
Forum: Personal Investments
Topic: How to revert Roth IRA contribution when income eligibility exceeded
Replies: 26
Views: 1488

Re: How to revert Roth IRA contribution when income eligibility exceeded

That's what Fidelity suggested and what was done.
2018 contribution: recharacterize to tIRA (nondeductible)
2019 contribution: return of excess back to cash
by kambyvk
Thu Dec 26, 2019 11:23 am
Forum: Personal Investments
Topic: How to revert Roth IRA contribution when income eligibility exceeded
Replies: 26
Views: 1488

Re: How to revert Roth IRA contribution when income eligibility exceeded

I did the recharacterization of the 2018 contribution in December 2019 (after my initial message posted 12/2/2019), Fidelity took me through it. Had I done it before October 2019, I could have done a "return of excess" on the 2018 contribution too.
by kambyvk
Thu Dec 26, 2019 10:51 am
Forum: Personal Investments
Topic: How to revert Roth IRA contribution when income eligibility exceeded
Replies: 26
Views: 1488

Re: How to revert Roth IRA contribution when income eligibility exceeded

No worries, appreciate the already provided insights and help.

Just for info., for the 2019 contribution, Fidelity took me thru' a "return of excess" form and that amount has been credited to my cash account.
by kambyvk
Thu Dec 26, 2019 10:26 am
Forum: Personal Investments
Topic: How to revert Roth IRA contribution when income eligibility exceeded
Replies: 26
Views: 1488

Re: How to revert Roth IRA contribution when income eligibility exceeded

Many thanks retiredjg for detailing the various options, much appreciated. Yes, this ended up being the only non-deductible contribution (made in 2018, originally as a Roth IRA contribution and recently recharacterized to a tIRA - would have liked to do a "return of excess" on this but the...
by kambyvk
Thu Dec 26, 2019 9:47 am
Forum: Personal Investments
Topic: How to revert Roth IRA contribution when income eligibility exceeded
Replies: 26
Views: 1488

Re: How to revert Roth IRA contribution when income eligibility exceeded

Correction to my earlier post

I do have another deductible IRA (Janus), again a relatively small amount, but won't this have to be dealt with - I thought the "to be converted" tIRA had to be the only tIRA at the time of conversion to Roth IRA.
by kambyvk
Thu Dec 26, 2019 9:45 am
Forum: Personal Investments
Topic: How to revert Roth IRA contribution when income eligibility exceeded
Replies: 26
Views: 1488

Re: How to revert Roth IRA contribution when income eligibility exceeded

I was put on a long hold while the Fidelity rep checked with Fidelity Shell (my former employer) reps and came back with the "good news" as he put it, and said it was possible to move the Rollover IRA into the 401K even though I am no longer with the company. That maybe because the funds i...
by kambyvk
Thu Dec 26, 2019 9:15 am
Forum: Personal Investments
Topic: How to revert Roth IRA contribution when income eligibility exceeded
Replies: 26
Views: 1488

Re: How to Revert Roth IRA Contribution When Income Eligibility Exceeded

Thanks lakpr, apologies for the late response I saw your post just now. Indeed, I had not thought through the ramifications of the recharacterization fully and realized it after the fact. I did not expect the recharacterized funds to end up in the Rollover IRA. When I called Fidelity later, they sai...
by kambyvk
Thu Dec 26, 2019 5:33 am
Forum: Personal Investments
Topic: How does IRA rechar work?
Replies: 9
Views: 716

Re: How does IRA rechar work?

I had to do this recently. You will have to do a 'return of excess' and the Fidelity rep can take you through the process while on call and it takes a few button clicks to complete. Basically this will result in your Roth IRA contribution returned to your cash account and the gains on your Roth stil...
by kambyvk
Mon Dec 02, 2019 11:38 am
Forum: Personal Investments
Topic: How to revert Roth IRA contribution when income eligibility exceeded
Replies: 26
Views: 1488

Re: HOW TO REVERT ROTH IRA CONTRIBUTION WHEN INCOME ELIGIBILITY EXCEEDED

Just completed recharacterizing 2019 to tIRA and did a "return of excess" for 2018 (6% penalty). Fidelity rep took me thru the process for both and it was quite easy. Thanks again!
by kambyvk
Mon Dec 02, 2019 11:15 am
Forum: Personal Investments
Topic: How to revert Roth IRA contribution when income eligibility exceeded
Replies: 26
Views: 1488

Re: HOW TO REVERT ROTH IRA CONTRIBUTION WHEN INCOME ELIGIBILITY EXCEEDED

First of all, apologies. The intention was not to shout, copied the contents from a Word document where I typed the post and the header was in caps, should have been bit more aware of how this may come across. Thanks for your response. I could recharacterize the 2019 contribution to a tIRA but subse...
by kambyvk
Mon Dec 02, 2019 4:09 am
Forum: Personal Investments
Topic: How to revert Roth IRA contribution when income eligibility exceeded
Replies: 26
Views: 1488

How to revert Roth IRA contribution when income eligibility exceeded

I made Roth IRA contributions in 2018 and 2019 and in hindsight my income in both years exceeded the MAGI levels stipulated to be eligible for contribution. The contribution amount ($6500+$7000=$13500) is the only amount sitting anywhere in a Roth IRA account for me, in this case at Fidelity. What I...
by kambyvk
Thu Mar 07, 2019 9:28 am
Forum: Personal Investments
Topic: Recent Retiree Portfolio Advice: Allocation, Tax Efficiency
Replies: 4
Views: 806

Re: Recent Retiree Portfolio Advice: Allocation, Tax Efficiency

Delamer - good point. Things could be different in the future and low ER funds are better. Thanks!
by kambyvk
Wed Mar 06, 2019 10:40 pm
Forum: Personal Investments
Topic: Recent Retiree Portfolio Advice: Allocation, Tax Efficiency
Replies: 4
Views: 806

Re: Recent Retiree Portfolio Advice: Allocation, Tax Efficiency

Duckie - many thanks for your review and suggestions. It helps me greatly and provides the validation to accelerate transitioning to a bond heavy Retirement account and an equity tilted Taxable account. Cheers!
Kam
by kambyvk
Wed Mar 06, 2019 12:11 pm
Forum: Personal Investments
Topic: Recent Retiree Portfolio Advice: Allocation, Tax Efficiency
Replies: 4
Views: 806

Recent Retiree Portfolio Advice: Allocation, Tax Efficiency

BACKGROUND I am retired since July 2017. I intend to work again in the future but not in a fulltime job. Received approx. a year’s severance pay and took the lumpsum option for pension. Our annual expenses average around $80K/year. Starting around the time of retirement, I started making changes to ...