Bogleheads.org

In addition to dividing your transfer into smaller chunks, you can change your allocations in other accounts to compensate. For example, if you have 100k with a desired AA of 70/30, you could transfer the 30k of bond funds, where the volatility is expected to be less, first. Once in the new account, exchange the bond funds for stock funds. Transfer another 30k from the first account (originally stock funds, now cash). When that transfer is complete, re-invest in stock funds. Transfer the remaining 40k. Reinvest appropriately to achieve your desired AA. By doing the transfer in pieces, and maintaining your stock allocation throughout, you will be less at risk to severe market changes during the transfers. Of course, the above works best if t...

I met with TIAA and obviously your mileage may vary but I was not impressed. I received a plan which seemed to be driven by they need to recommend change or what is the point. When asked to explain why I needed 6 funds or more the rep could not really give a coherent answer. At this forum the free advice will be DIY a 3 fund portfolio with an AA ranging mostly from 40/60 to 70/30. For what it is worth I transferred everything but my TIAA traditional to Vanguard. I will provide a second negative anecdotal experience with TIAA advisors. I used the "free" (paid for by my University's contract with TIAA) advising service once. They ran a Monte Carlo simulation. They said that my current allocations (TIAA traditional and several CREF ...

Charles Joseph wrote: ↑Tue Mar 21, 2023 8:00 am Too general of a question? With VFIAX (SP 500, in taxable of course) at Vanguard, I don't have a choice.

Of course you have a choice, And, at Vanguard, you can choose SpecID at any time. If you have never sold that fund, then it applies retroactively (at least that is how it has been for me). If you have sold using average cost, then that locks in all prior lots as average cost, irrespective of brokerage.

SpecID is very helpful if you want to tax-loss harvest. Average cost is helpful if you want to spread large capital gains out over all of your existing holdings. There are personal finance reasons to prefer one over the other.

Basis is what prevents you from being taxed twice. Could you illustrate the scenario wherein I'd be taxed twice because of not having basis? I made a Roth conversion when I had losses while the funds were in the traditional IRA. In fact, it was that situation that led me to bogleheads! For a year after that, I had a traditional IRA with a value of $0 and a basis of $X. I'm a little OCD, so the next year I allowed a small amount of growth before I converted the new contributions. That cleared out the remaining basis. Subsequently, I have chosen to wait to invest in funds until after the conversion going forward so that I don't leave basis behind. In regards to being taxed twice: your basis is a record of the non-deductible (already taxed) c...

I made a silly mistake. On February 3, 2022, I made a contribution of $6,000 for 2021 and $6,000 for 2022 to a Traditional IRA. The next day, I converted both to Roth IRA. (aka Backdoor Roth conversion method.) I am not a tax expert, but I am pretty dangerous with TurboTax. Can someone please point me in the right direction for how to fix the mess I created? (The issue is that I would have had to contribute the 2021 contribution before December 31, 2021 in order to do the Backdoor Roth conversion.) I am doing my 2022 tax return right now (with TurboTax). I have not filed yet. Thank you! If you filled an IRS Form 8606 documenting your nondeductible contribution for 2021, I don't see a "mistake" here. If you have not yet filed IRS ...

I have until now been unable to benefit from a backdoor Roth IRA because I’ve had a large IRA balance, and the Roth conversion would be mostly taxed. I have now (March 2023) rolled over the IRA to a 401k, so the backdoor Roth should now work well 1) can I contribute to IRA & do a backdoor Roth now for calendar year 2022, or should I not because in 2022 I still had the IRA? 2) backdoor Roth for 2023 should be fine for this year, I assume, even if the IRA was rolled over just 1 month ago? Thanks for any advice on this. If you had a non-zero IRA balance on Dec 31, 2022, you are subject to the pro-rata rule for your 2022 taxes. You're in the clear for 2023. When you make your IRA contribution, make sure it's tagged for 2023. Your broker mi...

I believe you have misunderstood the backdoor Roth process. Putting a contribution into a separate IRA does not let you avoid pro-rating a Roth conversion with all the money that you have in traditional IRA (including SEP IRA, SIMPLE IRA, and rollover IRA). It's unclear just what you did in 2022 although I'm pretty sure there is a problem that needs to be corrected or addressed on your 2022 tax return. Can you describe what you did without using the word "backdoor"? This was for 2021 though I planned on doing the same for 2022. Prior to April 2022, there was a $6,000 non deductible contribution made for 2021 to a traditional IRA (There was a from 8606 filed with the tax return). This IRA had previous investments in it. The 2021 c...

Contributions New annual Contributions $15,500 his Simple IRA $22,500 her 403b no match $0 his Roth IRA $0 her Roth IRA I haven’t been able to make Roth contributions due to income limits for a long time. With the passage of the Secure Act 2.0, for the first time ever, starting in 2023, taxpayers will be allowed to make ROTH contributions to Simple IRAs. Prior to 2023, only pre-tax contributions were allowed to be made to Simple IRA plans. Would you make Roth SIMPLE contributions going forward? It seems like it would give me another option in retirement that I don’t really have at this point. I assume I will be in a lower tax bracket in retirement but we have no idea what the tax tables will look like in 15-20 years. From the listed accoun...

OP here. So quick update, I incurred about $354K of capital gains when selling the stocks and have a tax bill for my uncle of about $68K. He has a traditional Rota IRA and the consensus on here is that he should see 100%, which would net him 10K that he can use to pay for taxes. That leaves about $58K remaining for taxes. Should I just continue the sell off for him and incur another $350K of capital gains in 2023 and use money from selling the funds to pay off the tax? I am sorry to hear that you created an unnecessary large tax obligation for your uncle. As you appear to still be learning about the tax code, I strongly recommend that you learn (quickly) about the safe harbor options for 2023. Specifically, to avoid additional penalties, y...

Hi Little Star, thank you for taking the time to walk me through this. I feel the most comfortable doing the tIRA to Roth conversion every year, and keeping my tIRA contributions non-deductible because it seems the most straightforward way to proceed and I need to keep things simple for me to understand what I'm doing. There is one thing in your response that I'd like you to explain more because I don't quite understand: it is pretty straightforward to do the backdoor Roth process (provided you do not have $$ in a traditional IRA on December 31 of the year in which you do the Roth conversion). and ...potential tax implications if you have $$ in a traditional IRA on Dec 31. See my previous post if you would be so kind -- I converted my tIRA...

Hi there, Due to an increase in my wife's salary, the $6k Roth IRA contribution for 2022 that I made last year is not valid any more. I'm not 100% sure but it seems like I have 2 ways: 1) I could recharacterize to a TIRA, and then do a Roth conversion. I suspect I had losses because I had invested these $6k in VTSAX - I think Vanguard can calculate that. Say the amount is $5k. If I do a Roth conversion right after recharacterizing my 2022 Roth IRA contribution, I will end up with $5k in 2022 Roth IRA contribution. And a bunch of tax forms to file. 2) Apparently, I could also request the contribution be returned as an excess contribution rather than recharacterizing, and pay a 6% fee on the excess, which I think is $6k. The fee is therefore...

Thank you! If you will at least occasionally need to use the backdoor Roth IRA method you should not make deductible contributions. They will mess up things because of the dreaded pro-rata rule . I read the link and the language is complicated for a newbie like me, but I think I get the gist. So, because of the rule, and because my husband and I expect to be over the limit for the Roth more years than not, your advice is to NOT deduct any of my contributions to my TIRA, even if I am able to do so? (I'm not sure if I able to do so or not yet because I haven't calculated our MAGI yet, the $230,000 I listed above, is our roughly calculated AGI. I don't know yet how much our MAGI will be different from our AGI since this is the first year I'm ...

Your Social Security benefits are based on the average of your 35 highest earning years (and you are only eligible if you have at least 40 quarters of credit). If you stop working (retire), those subsequent years will have zero earnings. Whether or not that will have a significant impact on your SS benefits depends on your earning history. For example, I have multiple years of zero (or exceedingly low) earnings due to being in school and working internationally. Thus, although I have worked for more than 35 years, I am still increasing my expected benefits by continuing to work. At the same time, once I crossed into the second bend-point, my expected benefits are only increasing by 1.5-2.0 percent per year. As soon as I have 35 years of goo...

I say it depends on the balance in your Solo 401(k) -- it can take a week or more for the transfer to complete. (Try to get the check sent via overnight mail; you might have to pay for that, but it's probably worth the $40) And you could easily lose (or gain) 1-2% while being out of the market that week. So if you've got a $1M balance, is it worth losing $10,000-20,000 to be able to get your $7,500 backdoor Roth done (and how many more years are you going to do a backdoor Roth)? I would guess probably it's not worth it at that level. But if it's like $100K balance, I think it'd be worth it. (Figure any loss due to being out of the market is spread over the remaining number of backdoor Roth contributions you're going to do.) You can try to ...

Interesting, good note about the retirement fund. Though it seems like you and @novelbogle are sharing different feedback on this regarding bond allocation. Yes the value of the account is roughly 1k (rolled over from a previous part time job 401k years back). 2 questions on that if you don’t mind: - How do I ensure (Vanguard) does not withhold taxes while converting the shares to Roth? - Can this conversion be done while handling the wash sale stuff? Also Per new research and notes from both you and @novelbogle I am considering pivoting to this plan. I would appreciate feedback from you both on this. - wait 31 days from Jan 8th to February - Sell off VOO and VT in taxable. Sell off VTI in Roth only if it is advantageous to do so since I w...

If I understand your plan correctly, at the end of your "rebalancing" sequence you will have: Taxable: mixture of VTI and VXUS 401k: Target Retirement 2065 Fund IRAs: VT It sounds like you are on a good path. Holding different funds in your taxable account than in your retirement accounts will help avoid disallowed wash sales in the future. Holding VXUS in your taxable account will allow you to take advantage of foreign tax credits. The target retirement fund in your 401k will gradually increase your bond allocation over time. However, in the long term, you may need to add a bond fund (or change year of the target retirement fund) in your 401k plan to increase the overall bond allocation in your portfolio. At this stage, though, a...

I contributed the max to my Roth IRA (at Vanguard) in 2022, $6000. My MAGI was expected to be below the Roth income limit (and my w2 wages were). However, during 2022 I sold some rental properties that had capital gains and I did not realize at the time that those realized capital gains would increase my MAGI. This year, I expect my MAGI to be above the Roth contribution limit so I began a backdoor at the 2023 max, which is $6500. I opened a traditional IRA at Vanguard and funded it. I am currently waiting for that transaction to settle so I can convert to Roth. This should occur on Monday or Tuesday of next week (Jan 9/10). Since I was in the personal finance mood I began doing my taxes for 2022 and only then realized that my $6000 2022 R...

I turn 70 ½ in mid-2023. All of my retirement funds are in a 401K, and I plan to transfer about half to a traditional IRA by December 31 of the year prior to my needing to take RMDs so that I can make QCDs. This was going to mean that I needed to transfer this money to my IRA by December 31 2023, and could no longer do a backdoor Roth for 2023. With the new bill giving me an extra year before needing to take RMDs, I won’t need to take my first RMD until 2025, meaning I can have another year to do a backdoor Roth. I still, however, want to make QCDs in 2023. My question is: Can I do a backdoor Roth IRA in January 2023, and then rollover as much as I’d like to use as QCDs in mid-2023 (after I turn 70 ½), and make those QCDs, leaving me with ...

There has been some incorrect information posted on this thread. It is important to remember that the backdoor Roth process is two steps. Step 1: make a non-deductible contribution to a traditional IRA. This step must be completed within the relevant tax-year (January 2022 - April 2023). Step 2: convert the funds in the traditional IRA to a Roth IRA. This step can take place at any time after Step 1 (no time limit). Whether or not you will need to make a pro-rata calculation is based on the value of pre-tax dollars in traditional IRAs (SEP, SIMPLE, Rollover, etc) on December 31 of the calendar year in which you make the conversion. If you have growth while in the traditional IRA, be sure to convert the full $$ amount (you are not limited in...

sailaway wrote: ↑Thu Dec 29, 2022 8:49 am Is that $5k earned income or a graduate stipend. Ie, are you paying FICA taxes on it?

I don't think this matters any more. As long as it is taxable compensation (earned income), it is eligible for IRA contributions. This includes graduate student fellowships, even if not reported on a W-2.

I concur with the recommendations to fund a Roth IRA to the maximum legal limit for both 2022 and 2023. You have until April 2023 to make your 2022 Roth IRA contribution, so you can wait until you have a firm number for your earned income (which is likely to be the limiting value for your 2022 IRA contribution) before you make the contribution. By making the Roth IRA contributions using funds made available via withdrawal from the Inherited IRA you are essentially converting funds with a time-limited tax deferral to ones that are tax-advantaged for your entire lifetime.

Before you decide to TLH, you need to have a plan regarding the partner fund that you will use. Your partner fund should be (a) something that you are willing to hold long term, (b) have similar (but not identical!) attributes as the fund you are TLH from. Do you know what you would buy to replace the shares of Wellington that you plan to sell? Picking the wrong partner fund can introduce additional anxiety into the process (I speak from experience here...I picked the wrong fund for my first TLH exchange and spent 31 days waiting to see if I would win/lose on the exchange back to my preferred fund). Also, today is not the only day to TLH. You can do it any day of the year. However, it is getting close to the end of opportunities for TLH pro...

In 2023, assuming that you have successfully rolled your pre-tax $$ into employer-sponsored plans, you can make and convert your 2022 contribution (assuming you contribute prior to April 2023). There is no time limit associated with the conversion. Be sure to convert everything within your IRA (contribution + gains) so that you will have nothing in traditional IRAs (SEP, SIMPLE, Rollover, etc) on December 31, 2023 (the year in which you do the conversion) to avoid the pro rata calculations. It is recommended that you complete an example IRS Form 8606 *before* you make the conversion so that you are aware of potential tax consequences. Roth conversions can no longer be undone. So let's say by Feb 1st 2023, all of the pre-tax $$$ is into our...

Thank you livesoft! Great. So it seems it doesn't really matter if I keep x shares in fund A or not. Related to that hypothetical money fund question, I was talking about exchanging all of fund A in to that money market fund B ( or just sell fund A and the money goes to a core settlement money market fund), since money market fund can't have higher cost basis than its value, where in the account will this raised cost basis (due to unallowed loss) be allocated? I am just curious. Thanks Larry If you have sold the replacement shares (either by specifying them specifically, or by selling your entire position), then you have resolved the issue. A wash sale simply postpones the realized losses until you sell the replacement shares (except when ...

If I were in your situation, I would wait until 2023 to take any action related to the backdoor Roth process (step 1: contribution. step 2: conversion.). This will give you time to roll your existing pre-tax IRA $$ into the 401k plans without worrying about accidently transfering non-deductible $$ and/or not being able to do the rollover at all. You will lose a bit of time (and potential for growth) in the Roth by waiting, but remove the risk of major headaches if something goes wrong with the rollover. Just make certain that you make the (2022) non-deductible contribution to the traditional IRA prior to the tax filing deadline and file IRS Form 8606 with your 2022 taxes, documenting your non-deductible contribution for the 2022 tax year. I...

If you have access to a low-fee 401k plan with good options, then it does make sense to roll your prior 401k $$ into the plan to enable the backdoor Roth process. However, because there are sometimes problems rolling funds into a 401k, it is often best to complete this process before making the non-deductible IRA contribution. There is no problem waiting until 2023 to make the conversion of 2022 non-deductible contributions. However, you do need to file IRS Form 8606 with your 2022 taxes to document the non-deductible contribution (even if this contribution is made during the Jan - April 15, 2023 window). It is straight foward to do this for the first time (with no conversion in the calendar year of the tax year). However, in subsequent yea...

If you want your donation to be fully eligible for deduction without any potential complications, you could choose to donate to support the institution's primary mission: providing educational opportunities for its students.

If you are planning on converting the existing pre-tax $12k (i.e., not trying to roll it into an employer sponsored 401k/403b etc), then there is no need to do separate conversions. You can contribute and convert. Or you can convert, contribute, convert. Or convert part, contribute, convert more, etc. You will document your non-deductible contribution and your conversion(s) on IRS Form 8606. This form is straightforward provided that you have no $$ in a traditional IRA on December 31 of the year in which you do the conversion (i.e., your last conversion should be 100% of the traditional IRA account, not a specific value). I highly recommend completing the form (by hand) IN ADVANCE of completing a Roth conversion so that you are aware of the...

Your nephew should look at the NASA "Space Grant" website for his home state and for the state where he goes to college (if they are different). I believe that almost every state has a Space Grant consortium, usually run out of one of the universities, but with scholarships and internship opportunities for anyone affiliated with the state. My state's version of this lists all NASA internship opportunities, in addition to small scholarship awards. All NASA internships are competitive, but they have to be awarded to someone...and your nephew is only eligible if he applies! In addition to the above, your nephew should consult with career services at his college. There are often good relations between specific schools and specific com...

Because this is in an IRA, there will be no tax consequences to change funds. As retired@50 states, you just click the "exchange" option (if this is held at Vanguard). However, you do not need to change the fund just because you are changing your planned retirement date. The Target Date Funds (TDF) are designed to change their asset allocations (AA) over time. Before changing to a different TDF, you should decide what your preferred asset allocation is, which includes not just your retirement date but also your willingness and ability to take risks. If you have a substantial pension, you may have the ability, but not the willingness, to take risks and thus desire a TDF with a closer date (2035 instead of 2045). However, if you are...

Do you have a friend in the insurance industry that you are trying to support (financially) with this plan? If not, there is no reason to give the insurance industry some of your hard earned money. Just put $600/year (times 2) into your brokerage account. If necessary, keep a spreadsheet to track the fraction of the total account that is designated as for your children. When they reach the appropriate age, you can decide then whether or not you want to gift them these funds. Or, you could just keep saving at the maximum rate you can and give your children funds as they need them (college expenses, etc) or whenever you wish (random dates, birthday gifts, etc). There is no need to pay for the expensive wrapper of a whole life insurance policy.

When MFJ, both spouses are eligible to contribute to their individual accounts based on the combined income. Thus, if the combined earned income is greater than $12k and the MAGI is less than the income limits for direct Roth contributions, then each can contribute up to the maximum of $6k to their own account. The contributions do not have to be evenly split, but the maximum for each account remains at $6k (for those under 50).

Grt2bOutdoors wrote: ↑Wed Aug 17, 2022 8:06 am
Spouse should have a spousal IRA opened if they do not have one already.

Note that there is no account that is labeled as a "spousal IRA". Your spouse is contributing to a regular (traditional or Roth) IRA based on the joint income.

Gotcha, thank you... I'm going to convert the remaining balance of the trad ira into roth ira maybe today or tomorrow. Afterwards, should I file Form 8606 this year or can it wait to next year? Will it be more money owed if I do it next year? Please let me know. Thank you so much. Your conversion is reported on Form 8606 and thus (using the 2021 form numbers) via line 15c to Form 1040 line 4b for the tax year that is the same as the calendar year in which it occurs. That means your conversion in 2022 should be reported on tax year 2022 forms when you file in 2023. If you did not have the correct taxable income on your 2020 and 2021 forms 1040 (e.g., due to not using form 8606 correctly for those years) then amended returns should be filed ...

There are still some unresolved $$ floating around (what happened to your $18k traditional IRA, for example), but using the numbers posted here, the associated IRS Form 8606's should look something like the following. Note that you owe taxes due to the pro-rata rule and will need to submit a revised form 1040 and pay taxes (and late fees/penalties) for tax years 2020 and 2021. Tax Year 2020: $5999 contribution; $5999 conversion; ending tIRA balance $21,939.39 Line 1 (contributions): $5999 Line 2 (basis): $0 Line 3 (sum): $5999 Line 4 Line 5 (basis): $5999 Line 6 (tIRA): $21,939 Line 7 Line 8 (convert): $5999 Line 9 (sum 6,7,8): $27,938 Line 10 (ratio): 0.2147 Line 11 (line 8 * line 10): $1,288 Line 12 Line 13 (add line 11 and 12): $1,288 Li...

OP - You have been provided very good advice on this thread. I suggest you share this thread with your friend, who appears to be confused about access to retirement accounts (there is nothing about age 50 in the current regulations; the standard age is 59.5, with a possible exception of the "Rule of 55" for employer sponsored accounts) and expectations for marginal tax brackets during retirement (most people have lower or similar tax brackets during retirement). For your case, since you have access to MBR - so will be able to tax-diversify- I recommend 100% maximum contribution to the tax-deferred (traditional) 401k (currently $20,500) and as much as you can afford beyond that to Roth-space (either through MBR (401k) or regular ba...

Congratulations on your upcoming marriage! Has your soon-to-be-spouse also contributed to their IRA this year? If they have contributed directly to a Roth IRA and will now exceed the income limits (due to your combined incomes) they may need to recharacterize their contributions. If this is the case, it is best to start investigating options now, well in advance of the end-of-year scramble, particularly if they will need to do something about their existing traditional (pre-tax) IRA to open the path for a "clean" backdoor Roth process in this and future years. As others have mentioned, it is the $$ in a traditional IRA (SEP, SIMPLE, rollover, etc) on December 31 of the year in which you do the Roth conversion that factors into the...

If you decide to contribute less to tax-deferred, you should still take advantage of tax-advantaged space by contributing the maximum allowed to Roth (401k/403b/457b and IRA). There is no reason to contribute to a taxable account if you have access to Roth space (assuming the employer-sponsored plans are low fee plans with a good selection of low-fee funds).

In essence, I agree with others that you should tax-defer sufficient to bring yourself into the 24% marginal tax bracket and put the remainder into Roth. This will give you a good balance of traditional, Roth, and pension when you retire.

While the above posts are well meaning, they seem to have missed the fact that you are using the backdoor Roth process for your IRA contributions. In this circumstance, you should NOT rollover your 401k to a traditional IRA, as it will subject you to pro-rata taxation. Your choices, as you stated in the original post, are to leave your old 401k where it is or to rollover into your new 401k plan. The decision to move it or leave it depends on the fees, the availability of low cost funds, and your desire (or not) to simplify your accounts. If your new plan has a good selection of low cost funds (and does not charge fees based on account balance), then I would recommend rolling your old plan into your new one just for the simplicity. Even if y...

The only way to officially track it is on your last filed IRS Form 8606. This is why it is sometimes recommended to continue to file (or at least fill out) form 8606 even if you have not made a non-deductible contribution, just to keep a current record of your basis (non-deductible contributions). Specifically, if you do not know the basis in your traditional IRA, it will almost certainly be impossible for your beneficiaries to do so at a later date. If you can no longer find your Form 8606s, you will only be able to make an estimate based on your contribution history (did you always max out your IRA contributions?) and salary history (as an approximation for MAGI eligibility for a deductible contribution in a given year). However, if you c...

It all depends on how much of those two contributions were non-deductible contributions in 2021 and 2022. And whether they are documented as non-deductible contributions on Form 8606 for 2021 and 2022. The way you wrote your post, I'm not sure you are actually ready to move forward with using the backdoor process. well 2021 was non-deductible and we are in 2022 so there's no forms for taxes yet...but based on my income its looking like 2022 will be non-deductible as well based on income. Did you document the 2021 non-deductible contribution on IRS Form 8606 with your 2021 tax filing? Before you do anything further, I recommend that you complete a draft form 8606 for 2022, assuming that you do the conversion as planned and assume that all o...

I would like to move 401k money into a stock index fund from current holdings with high ER. The fund I'd like to concentrate the money into is: STATE STREET S&P 500 INDEX CMG2 .01 ER Is there any reason for me not to move money from other stock funds into the one S&P 500 Index fund and to do it now? Of course, our account total is down due to the market trend but I'd like to capture the shares in the index fund and pay less expenses going forward. There is no tax consequence. This represents the majority of our stock holdings, so is this S&P 500 fund too narrow? I have some work to do in the near future regarding Roth Conversions, and flipping stock holdings to taxable funds (from tax deferred) for tax and RMD-reduction purpose...

Regarding steps 1-4: You want to *exchange* so that the purchase of VFIAX occurs the same evening as the sale of VTSAX. If you sell and then buy, you may be out of the market for a day. With exchange, Vanguard sells and then buys the relevant mutal funds on the same date.

Before doing this, be certain that you are prepared regarding potential wash sales. This is particularly important if you (or your spouse) hold substantially identical funds in tax advantaged accounts, as wash sales with tax advantaged funds result in permanent disallowed losses. Other than that, wash sales just increase the paperwork, so should be avoided for simplicity, if you prefer the simple life.

joetro29 wrote: ↑Sun Jul 03, 2022 10:25 am Thanks. But with step 1 I really only put 3000 into traditional directly as I originally contributed the first 3K to my Roth

Your re-characterization of the Roth contribution makes it *as if* you had contributed directly to the traditional IRA instead. So you made a total of $6k non-deductible contributions to a traditional IRA in 2021. You will need to document your recharacterization with a brief statement along the lines of "I contributed $3000 to a Roth IRA on [DATE]. I recharacterized the $3000 contribution, with a value of $3956, on [DATE]."

The conversion is documented on Line 8 of Form 8606. Since all of your "distributions" are conversions, Line 15a is 0 and you can proceed directly to Part II.

This appears to be a common problem with certain tax software. You need to answer the questions in the correct time-sequence order, not in the order presented, so that the software knows that you made a $6k non-deductible contribution. If you fill out the form by hand, you should have no problems. Line 1: $6000 (non-deductible contribution) Line 2: $0 (existing basis from previous years) Line 3: $6000 Line 4: $0 Line 5: $6000 Line 6: $0 (Balance of tIRA accounts on Dec 31, 2021) Line 7: $0 (Distributions) Line 8: $6963 (amount converted) Line 9: $6963 Line 10: 0.8617 Line 11: $6000 (muliply line 8 and 10) Line 12: blank Line 13: $6000 Line 14: $0 Part II Line 16: $6963 Line 17: $6000 Line 18: $963 Unless you have taken a distribution (not i...

The wonders of Excel! Here it is total invested is low seven-figures Total Stocks 70.35% of EJ Assets [clipped to show a few of the high percentage holdings] CHEVRON CORP (CVX) 10.28% EMERSON ELECTRIC CO (EMR) 5.38% MCDONALDS CORP (MCD) 6.11% NEXTERA ENERGY INC (NEE) 17.93% If you look at some of the higher percent holdings, the EJ sales rep is correct that the portfolio appears to have a strong tilt to the Energy sector. Does that mean you should sell these stocks? Maybe yes. Maybe no. One of the non-intuitive aspects of investing is that to "buy low and sell high" you need to sell the funds/stocks that are doing well to purchase funds/stocks that are underperforming. Having a target asset allocation (AA) helps get over the psyc...

Thanks to some troubleshooting help from some Bogleheads here, we were finally able to rollover my wife's old 403b funds from TIAA into a rollover IRA at Vanguard. She has another 403b from her most recent job that we will be rolling over soon too, and total funds in the rollover IRA will be about $20k once all is done. For the 2022 tax season, we will still be able to make direct Roth IRA contributions to each of our IRAs but I think in 2023 we are likely to phase out. If we file our taxes MFJ, would I still be able to do a backdoor Roth for myself using a traditional IRA at Vanguard (which has no balance currently) and be safe from the pro rata rule? My wife has a SIMPLE IRA at Vanguard through her current job, can one rollover funds fro...

Thanks to some troubleshooting help from some Bogleheads here, we were finally able to rollover my wife's old 403b funds from TIAA into a rollover IRA at Vanguard. She has another 403b from her most recent job that we will be rolling over soon too, and total funds in the rollover IRA will be about $20k once all is done. For the 2022 tax season, we will still be able to make direct Roth IRA contributions to each of our IRAs but I think in 2023 we are likely to phase out. If we file our taxes MFJ, would I still be able to do a backdoor Roth for myself using a traditional IRA at Vanguard (which has no balance currently) and be safe from the pro rata rule? My wife has a SIMPLE IRA at Vanguard through her current job, can one rollover funds fro...

... Vanguard STAR Fund (VGSTX) dating back to 1991... 1. All lots purchased in 2012-2013 are showing the identical cost of $21.77 per share. The fact that this identical share price displays across seven different lots purchased on FOUR SEPARATE DATES spanning 2 years (6/28/12, 12/28/12, 6/27/13, 12/26/13)... ... But I don't know how to either (a) confirm the historical cost data that far back, or (b) correct this in VG system, if it is wrong. Any suggestions? ... About Question #1. Using Yahoo! Finance - Historical Prices: https://finance.yahoo.com/quote/VGSTX/history?period1=1338508800&period2=1388534400&interval=1d&filter=history&frequency=1d&includeAdjustedClose=true It shows... Thursday, June 28, 2012 = $19.37 Frid...

OP here, with follow-up question(s) on this problematic holding. Without repeating the entire background, we have shares of Vanguard STAR Fund (VGSTX) dating back to 1991, held in our joint taxable brokerage account. We have been exchanging into VTSAX as share lots show losses (which has been happening more and more lately!). That's working OK, but still have two historical oddities to navigate: 1. All lots purchased in 2012-2013 are showing the identical cost of $21.77 per share. The fact that this identical share price displays across seven different lots purchased on FOUR SEPARATE DATES spanning 2 years (6/28/12, 12/28/12, 6/27/13, 12/26/13)... combined with the proximity to change in covered share reporting (i.e., these were first two ...

Hi Everyone, I was recently looking into trying to do some sort of mega-backdoor Roth or quasi-MBD Roth but recently learned about the 457(b) option I have at work. It's through the university where I work (so a government plan). Details are... "The Deferred Compensation 457(b) program is a supplemental retirement savings plan that allows you to invest a portion of your income for retirement either on a pre-tax or post-tax (Roth) basis or a combination of both. Participation in the WDC program is voluntary with employees making the entire contribution; there is no employer match." And the message I got from HR was: "If you have or will meet the 403b limit for this year (I currently max out the 403b), you may consider partici...