Bogleheads.org

rocket354 wrote: ↑Fri Mar 31, 2023 11:06 pm I have to disagree with everyone who says that people didn't lump sum at the top of the market. Every day you're invested, you've essentially just lump-summed. You have $X and you have it all in the market rather than anywhere else, regardless of how or how periodically you've been invested. When the market collapses then it has the same effect on $1 million that's been built up by saving and investing over 30 years as it has on $1 million that someone had just received that morning. And, it might hurt a lot more in the former case.

If $100,000 grows to $1 million and then crashes to $500,000, you're still up $400,000.

Good luck. What will your mom say to you when her portfolio falls 20% in a year? I feel like this was said kind of sarcastically; please refrain from being harsh. In all seriousness, I don't claim to be an oracle just like everyone else here. I just believe there is an inherent conflict of interest between financial advisors and their clients. I have my parents' best interests at heart obviously. Thank you for your feedback. I'm not being sarcastic nor harsh. I'm being honest about the difficulty of managing investments for someone you know. You need to be honest with yourself about how prepared you are to deal with the consequences of your mother thinking you did a bad job because she had hired a professional financial advisor with years ...

Hi, I'm a college educated person in my 30's with a background in healthcare and some tech. I've been a hobbyist personal finance learner on and off since grade school. My dad encouraged me to watch Suze Orman and Jim Cramer growing up. My parents have assets in the single millions. My mom received a few million from my grandmother, and she left it in the hands of a CFP who has been managing it for over 20 years. I looked at the 2022 end-of-year statement; my mom is paying this person about $8k a year to manage the money, which is outrageous to both my dad and me. My dad has been trying to persuade my mom to stop paying these management fees for years, but she did not agree. I proposed that I take a CFP course, and upon passing, that she g...

sman09 wrote: ↑Fri Mar 31, 2023 7:39 pm - there is nothing to report in this year's tax return even if suppose we contribute to 2022's non-deductible tIRA and convert it to a Roth. Is that correct?

Wrong. You need to report your 2022 contribution on form 8606 with your 2022 tax return.

To add to the above queries - is it okay to have (at last temporarily) IRA accounts with 2 firms? Our Roth IRA is presently with M1. Considering the time it takes for the funds to go from our bank (BOA) to M1, we are thinking of making this year's contribution to BOA ME tIRA account (into VOO) and then initiating the transfer to Roth. We do not have a ME account and this would be the first investment account. We thought once the Backdoor Roth conversion is completed at ME (this year), we could then possibly initiate transfer of our Roth money with M1 to also be moved into this account. This may to some extent also help count towards the balance we have with BOA which determines the cc reward. Any downside to the plan above or things to wat...

Not to take up too much room with a detailed elaboration of the theory, but let’s pretend that the US stock market experiences something like what occurred in Japan in 1991. During that time, if you invested in the Nikkei, it has not regained close to those levels until over 30 years later. Had one been passively indexing into their total market (once very overvalued, yet assumed to never crash), they would not have fared very well over perhaps even a lifetime of investing. That is just not true. You don't earn your lifetime of retirement savings as a windfall at the age of 30 and lump-sum it into the market. The Nikkei 225 tripled over the last 20 years. A steady stay-the-course investor in Japan over the last 30 years would have averaged...

D. C. Pline wrote: ↑Fri Mar 31, 2023 6:10 pm

rkhusky wrote: ↑Fri Mar 31, 2023 5:42 pm
A straightforward non taxed rollover would be added into 1040 line 5a with Rollover written to the left of 5b.

I added the 1099-R and it did exactly this! Whew! I think I'm just about done!

You should have two 1099-Rs, one for the 403b rollover to the IRA which goes on line 5a, and the other for your Roth conversion which goes on form 8606 lines 16 and 18 and form 1040 line 4b.

So improvements & repairs over all the years I've owned it can be used towards offsetting the gain? I was concerned that only costs accumulated in the tax year of sale (or some other short term period) could only be used to offset the gain. So if I have replaced roof 2X over the period I owned the house the cost of both of those events could be used to offset the gain at sale? And I did some renovations 10 or 12 years ago... those can go towards offsetting the gain? Improvements, yes. Repairs, no. (Generally speaking, unless the repairs were done as part of a larger remodel.) You cannot deduct the roof twice. Your renovations from 10 years ago are good, as long as they are still there. (The IRS gives the example of putting in carpet an...

Like many people suggest here, was maintaining a collision coverage with a large deductible : drive very little in the city, wife is super-careful driver to the point of never ever breaking a speed limit by 1 mph, can afford a full replacement and definitely can afford 2.5k deductible, last time wife had accident 4 years ago got paid by other guy liability no questions asked. So today noticed that my car was side-swiped while being parked - no note, no info on the guilty party (nice people we have in Brooklyn). Have dash cam - yet it looks forward only and did not get activated (probably other guy was parking and hit the car very slowly), people on the street claim their cameras do not see (lies - they just don't want to help ) and police ...

CharlatanPrime wrote: ↑Fri Mar 31, 2023 10:16 am
Is paying it off suboptimal? Definitely. Do people still do it, even knowing that? Yes! I can't measure the emotional/psychological value of having a paid off mortgage. Some people sleep better at night not having a mortgage. That may not be something that occurs for you or me or lots of people here, but it is still a thing.

I sleep better at night having enough money in the bank to keep paying my mortgage if I lose my job. I would not sleep better with no mortgage and no savings.

So improvements & repairs over all the years I've owned it can be used towards offsetting the gain? I was concerned that only costs accumulated in the tax year of sale (or some other short term period) could only be used to offset the gain. So if I have replaced roof 2X over the period I owned the house the cost of both of those events could be used to offset the gain at sale? And I did some renovations 10 or 12 years ago... those can go towards offsetting the gain? Improvements, yes. Repairs, no. (Generally speaking, unless the repairs were done as part of a larger remodel.) You cannot deduct the roof twice. Your renovations from 10 years ago are good, as long as they are still there. (The IRS gives the example of putting in carpet an...

CharlatanPrime wrote: ↑Fri Mar 31, 2023 8:44 am
But nobody can measure the peace of mind you'll gain by paying off your mortgage, so from an overall perspective it may be worth more to you to own your house free and clear.

People always say this, but I don't understand why you would have more peace of mind with $1,000,000 and no mortgage than you would with $1,500,000 and a $500,000 mortgage.

Earlier this month we, somewhat impulsively, made a principal curtailment payment of 22k which knocked over a year off that date. The money was sitting in our housing account earning very little interest, so it was a smarter choice vs maintaining the status quo. Now the question is whether we should start making monthly curtailment payments of $1000, plus apply my wife's annual bonus (~6-8k net), towards the principal. This would result in us paying off our mortgage in 2025, more than four years early. I know that, financially, investing this extra $$$ in a taxable account would very likely yield a higher return . However, being entirely debt free at 41 or 42 years old would feel great. A smarter choice? You had any number of options avail...

This is just the save-at-marginal-withdraw-at-average/effective tax rates argument that has always been made for choosing traditional over Roth. The main issue with this argument is that while it is reasonable when considering your entire investment, do the math at the margin: assume you've saved $34,000 in the traditional IRA in the first example, and figure out where you should put the next $1,000. Another issue is social security. Thank you toddthebod! I did find the following in the Wiki ... and in the "Common misconceptions" section there is a part on the "top" vs "bottom". https://www.bogleheads.org/wiki/Traditional_versus_Roth However, the wiki example of starting with $1m seems to be less than honest a...

Interesting .... maybe my math is wrong ... :happy In your tIRA portion, the deductions drop you $7K into the 12% bracket, whereas the Roth is in the 22% bracket. So, not an apples to apples comparison. Try using $145K as income. Or put $15K into the IRA. I don't see why it was not apples to apples. I made $135k and need $100k to live. Roth or tIRA were just the options with what remained after taxes, right? I'll do a $145k income example in detail, and maybe we can find my error ... Example 2: $145k income Need $100k (after taxes to live) 4 years of Roth or tIRA Then quit my job and live on what is left on year 5 Just fed taxes mfj at 2022 rates ... investments make zero return tIRA I need $100k to live so according to this I can have 109...

dual wrote: ↑Thu Mar 30, 2023 1:45 pm

toddthebod wrote: ↑Thu Mar 30, 2023 1:39 pm

avginvestor wrote: ↑Thu Mar 30, 2023 1:27 pm For some reason I thought if you owed taxes, you still had to pay on-time (Apr 18) otherwise you get penalized (interest?), but filing could be done until October.

That's always been the case as long as you submit a request for extension.

I checked on it and the IRS and the California franchise tax board both explicitly extended the deadline to file and pay.

Correct. My point is you have always been able to pay in April and file in October, so the "disaster declaration" would not have accomplished anything if they didn't delay the payment deadline.

OP, if you sell those small lots that came from dividends before you do anything else, then they won't be there to cause a wash sale anymore. since they are small, you can sell them without caring much if they have a short term loss of gain. just get them out of the way and do the bigger sale and loss recognition tomorrow without having to consider these shares anymore. I spoke with a trade specialist from Vanguard today and asked about selling the recent dividend shares first and waiting a day later after those shares are sold to then follow up with the larger sale (including shares sold for loss) in order to a avoid a wash sale. He told me this would not avoid a wash sale. Any others wish to weigh in on this? I don't know if they retroac...

JD2775 wrote: ↑Thu Mar 30, 2023 1:35 pm I thought my brother (who is in San Mateo County) had told me it was extended until May 15th. Could it really be different on a county to county basis? How confusing.

San Mateo is on the list for an October deadline as well. It was May until the end of February, then it was extended again until October.

avginvestor wrote: ↑Thu Mar 30, 2023 1:27 pm For some reason I thought if you owed taxes, you still had to pay on-time (Apr 18) otherwise you get penalized (interest?), but filing could be done until October.

That's always been the case as long as you submit a request for extension.

Hello, My HnR Block Tax prep person told me that majority of California (including San Diego where I live) is declared disaster areas and IRS extended the deadline to file and pay tax-dues until October 15, 2023. One of my friend told me that even Federal tax penalty is also waived but I cant find the reference. How does IRS knows and tracks that my return is indeed in the disaster zone and thus will not pose penalty if I pay my tax-due before Oct 15 ? Does anyone knows if IRS is also waiving the Federal tax penalty ? Thanks in advance. https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-severe-winter-storms-flooding-and-mudslides-in-california Following the disaster declaration issued by the Federal Emergency Management A...

placeholder wrote: ↑Sun Mar 26, 2023 4:31 pm

enad wrote: ↑Sun Mar 26, 2023 3:42 pm Here's an article from the Motley Fool that can help you:

Removing the excess is the less favorable approach and the op should not do that until recharacterization has been explored.

I disagree. If he has had a loss in the account, it is preferable to remove the excess and make a brand new contribution.

I've long used various companies' and websites' graphs and charts to compare various funds of particular styles. Recently there was a comment on a marketwatch article where someone said, essentially, "sure it eeks out a small advantage over [say, VT] but once you figure in fees, it is probably behind." My question is, when I look at nice graphs from reputable companies that compare, say, four etf's and mutual funds, over 1, 3, 5 and 10 years, am I seeing how they have performed accounting for their annual fees (which decrease the compounding), or am I looking at notional outcomes? In other words, if VT brought 5, 15 and 50% over 1, 3 and 5 years while IMGN [fictional, I think] brought 6, 16, and 55 according to the comparison gra...

Last year (2022), I completed a roth conversion for my entire traditional (mixed nondeductible and deductible) ira balance into my roth ira. At the end of 2022, I had no traditional/sep/simple ira balance. I’d appreciate any guidance on how to properly report this on form 8606. My 1099-R appears as follows: 1 Gross distribution $88,000 2a Taxable amount $88,000 2b Taxable amount not determined (X) Total distribution (X) 7 Distribution code 2 IRA/SEP/SIMPLE (X) 16 State distribution $88,000 In my IRA account, I had $36,000 of nondeductible contributions + $6000 (nondeductible ira contribution for 2022) = $42,000 (cost basis) of nondeductible contributions with the rest being gains. Is form 8606 supposed to look like this? 1) 6000 2) 36000 3...

This is a theory question that has been bugging me and I'd love to get this community's take on it. The bogleheads wiki indicates that risk tolerance is the primary factor in determining equity allocation, stating: How much in bonds? That's the basic question of asset allocation. Before you decide, you first need to balance your ability, willingness, and need to take risk. The more risk you can handle, the less bonds you need. I'm wondering whether the risk-free rate plays any role in determining your equity allocation, especially relevant as the 30y TIPS yield has recently swung from negative territory to exceeding 1.5%. If real yields went to say 3% on the 30y TIPS, my lizard brain would feel tempted to buy some in lieu of equities. Here...

elchris wrote: ↑Tue Mar 28, 2023 9:13 pm Thank you for the reply. So just to clarify, the taxable amount in the 1099 will/should be just the gains, not the entire distribution?

Correct. The excess deferrals are added back into your 2022 income, while the earnings will be taxable in 2023, assuming your deferrals and earnings were distributed between January 1 and April 15 this year.

It looks like I'll be moving soon. I plan to buy a new house before I close on my current house and I'm trying to work out the best way to pay for it. Some pertinent data: - I own current house free and clear and will receive ~$475K at closing - New house will cost ~$260K - I expect to buy the new house roughly 2 months before I close on my current house - I do not have a HELOC set up - I have an IRBK lite margin account with ~$1.3M all in VTI - I have various IRA/401k/HSA accounts with bonds to keep my AA at 70/30 - I don't want to mortgage the new house - I'm retired now so don't know if that would be even possible?[/list] 1. I was initially thinking of selling ~$275K of VTI in the IRBK account to pay for the house (and associated costs ...

If I sell shares on a given day for a capital loss, I need to avoid repurchasing shares of the same funds for 30 days. I hope I have that right. In addition, my concern relates to the fact that my dividends are reinvested. [...] If I understand correctly, If I make the sale tomorrow (3/29/23) I should I should be well within the time frame free from getting a wash sale from dividend reinvestment. DO i have this right? No. It's not "avoid repurchasing for 30 days"; it's "avoid repurchasing within 30 days." If you don't want to have a wash sale, you have to wait until late April, because you purchased (through reinvestment) a week or two ago. (Wash sales are not against the law, however.) Yep. And just to be even more exp...

elchris wrote: ↑Tue Mar 28, 2023 2:21 pm Please help me understand if this is correct. I overcontributed to my 401k for 2022, then corrected the overcontribution with funds being returned to me this year. As I understand it, I am being taxed on the overcontribution as income this year but then also being taxed on the funds next year when I get the 1099-R? So I am being double taxed,, to "penalize" people for overcontributing? I understand taxing the gains but taxing the amount again as a distribution this year doesn't make a lot of sense. If I had known, I would have just let the amount stay in the account.

No, that is not correct. If you had the excess deferrals returned by April 15, you will not be taxed again.

Scenario: - July 2021, I contributed $6000 to Roth IRA for myself. - March/April 2022 preparing for tax return for 2021, finding out my total income went over MAGI line - April 18, 2022 I work with Charles Schwab. They removed excess and put back $5740 stocks (some loss from $6000) to my brokerage account. - April 2022, I filed 2021 tax return WITHOUT reporting 2021 ROTH IRA $6000 contribution (in my mind it was removed so no need to report) - Jan 2023, I have 1099-R (2022) now, code PJ in box 7 - Tax software says I need to amend 2021 tax return Question: 1. Do I really need to amend 2021 and report $6000 contribution? If so, I will also add it was removed at loss of $5740? 2. My understanding is that I still need to include 1099R for 202...

The next level of this line of inquiry now presents itself. As I mentioned above, this is my first time selling any substantial shares of anything. I can now see the lots of share displayed at Vanguard. I can see the lots that will be a loss when sold. That amount will be a small portion of what I need to sell. The question, how do I determine what the best lots are to sell assuming the next lots all show a gain. Is it just as simple as selling the lots that show the least % gain? My understanding is that long term capital gain is taxed at a lower rate than short term. 1. Sell everything that has lost value. 2. Do not sell anything you've held for less than a year. 3. Sell shares that you have held at least a year in order from lowest gain...

retiredjg wrote: ↑Tue Mar 28, 2023 10:15 am Looks like it is doing one person's conversion right and one wrong. I can't think of any other reason that only part of the $12k is being shown as taxable. Look again to be sure that each person's 8606 is correct?

But it is a little odd that it is not $6k instead of the odd number.

Ooh, maybe it thinks the entire conversion is for the same person?

retiredjg wrote: ↑Tue Mar 28, 2023 10:15 am Looks like it is doing one person's conversion right and one wrong. I can't think of any other reason that only part of the $12k is being shown as taxable. Look again to be sure that each person's 8606 is correct?

But it is a little odd that it is not $6k instead of the odd number.

Ooh, maybe it thinks the entire conversion is for the same person? That would give him the results he is seeing.

exodusNH wrote: ↑Tue Mar 28, 2023 10:24 am

toddthebod wrote: ↑Tue Mar 28, 2023 10:06 am

exodusNH wrote: ↑Tue Mar 28, 2023 9:52 am They are tracked separately

This is the part where I am confused how OP can't find the $1,400. Can he not see the balances of the two accounts?

With my 401k, the page that shows employer vs employee contributions don't show individual investment balances. If you're not sure what you're looking for, it can be hard to find.

I don't have a breakdown of Fidelity 500: $x.yz employee / $a.bc employer.

But do you have a breakdown of Roth versus pre-tax?

exodusNH wrote: ↑Tue Mar 28, 2023 9:52 am They are tracked separately

This is the part where I am confused how OP can't find the $1,400. Can he not see the balances of the two accounts?

It’s not been mentioned (possibly because I’m wrong) but my biggest frustration with Schwab is the inability to have specific ID and DIY lot selection for mutual fund transactions. At least I have been unable to do this. I believe a call is required. Vanguard makes it super easy. I have no experience with Fidelity in this regard since our only accounts are tax-deferred/free. You can do it by filling out and uploading this form: https://client.schwab.com/secure/file/P-4705302/APP105445-02-01-fill.pdf But a phone call might be faster. The control of the lots to sell at Schwab is 100% immediately and directly available online. When you click on "Sell Lots" you get an option to indicate which lots to sell, with all the options listed...

Hi I am trying to fast track the last of the major 'underwear drawer' work on the house (waterproofing, front porch rebuild, lot leveling, roof) and am considering a HELOC or 2nd mortgage. I have the cash, but it would significantly draw down my 6 month cushion, don't really want to do that. In a rising interest rate environment, which is better, HELOC or 2nd mortgage? I'm assuming the latter, but wanted to confirm. The info: Amount $30k-$50k House value: Approx $400k Equity in House: Approx $150k Current Loan Amount: $1650 per month (excludes tax, insurance) Loan term: 3 or 5 years (want to pay off quickly, likely want the flexibility of 5, but will pay in 3) Third Federal HELOC and Fixed are w/in a half point (6.49/6.99). Their bridge lo...

I don’t know where the cash is in the account, but I was looking through the contributions. On 3/6 and 3/10 of this year their are 2 contributions. The totals are $1480.72 & $1480.71 These 2 together equal $2961.43 which is exactly 4% of my total gross earnings of $74,035.86 Maybe the cash just goes into the Vanguard S&P 500 fund that I have chosen for my investment here. I’m not certain. I don't see how that's possible: Yes, your employer can make matching contributions on your designated Roth contributions. However, your employer can only allocate your designated Roth contributions to your designated Roth account. Your employer must allocate any contributions to match designated Roth contributions into a pre-tax account , just li...

Naris wrote: ↑Mon Mar 27, 2023 8:28 pm
Yes, thanks. I had already tried that and it didn't work. For good measure, I just went back, deleted all the 1099-R forms, and then manually re-entered them without success. It still thinks I owe $5,168 on $12,000 of IRA distributions when I preview the draft 1040 form.

I agree with HomeStretch. The problem is not with your 1099-R. The problem seems to be that you haven't properly told TurboTax that your contributions were non-deductible.

I'm getting questions from the new tax guy we are using about our backdoor conversions. The wife got a new job at the beginning of 2022. A very nice raise came along with it. So nice, that we weren't sure that we would be under the income threshold for Roth contributions. It went down to the wire for us because we were also working quite a few OT hours during the holidays. Turns out we ended up over the income limit. She had a rollover IRA from another previous job. So she had a balance in a traditional IRA on 12/31/2022. She rolled that over to her 401k in early January 2023. The rollover funds settled in the 401k in late January 2023, which resulted in a zero balance in the traditional IRA. She then made a $6,000 contribution to the trad...

Helping my adult daughter on her taxes - she has prepared her own taxes in the past, but is in the first year of a PhD program, so things look different. Her program is fully funded and covers all of the usual tuition, fees, health insurance, etc. Her 1098-T shows an amount in Box 1 (Qualified educational expenses) - $13K, Box 5 (Scholarships and stipends) ~$60K The actual graduate student fees as listed on the Registrars webpage are $18K. The difference ($5K) is the health insurance that is provided by the University. The University requires health insurance, but does not require a student to purchase the insurance through the University. In the event that the student does not purchase insurance through the university, the health care pre...

I cleaned up my original post to clarify that its all for my wife. Apologies for the mix up of i and we. It's all the same in my head, but I recognize the confusion. Cleaned up. As for filing. both 2021 and 2022 have been filed at this point. So per reitredjg, I'll wait for 2022 1040 to be accepted, then we'll file the 8606 for both 2021 and 2022. We have an accountant as we have our own business and it necessitates it. We'll bring this to hit attention. Thanks everyone. You need to file an amended 1040 because you owe 2021 taxes on the pro-rated portion of the pre-tax IRA that was converted. You also owe additional taxes for 2022, so if you don't want to owe penalties and interest, you should figure out what you owe and pay it, even if yo...

3rdcoaster wrote: ↑Mon Mar 27, 2023 6:03 pm A simpler example, homeowners contract to build a new garage/studio/workshop for $25k cash. Their CB goes up $25K. If they pay $10K cash and finance 15K with HELOC, what is the CB increase?

$25k.

My employer is supposed to do a 4% match @ 100% in the 401k. For the whole year I contributed $16,390.97. Gross earnings are $74,035.86. The company contributed $1445.19 How did they come up with the $1445? I thought they would put in 4% of my annual income? I am paid a combination of hourly, commission, and tips (If that matters) Hourly = 15,075.18 Overtime = 651.40 Commission = 27,568.52 Tips = 28,602.47 PTO = 213.84 Where are you seeing the $1,445.67 figure? Do you have multiple 401(k) accounts when you look at the website? Does your plan have different matching rates for pre-tax and Roth deferrals? Pretax and Roth both get the same 4% @100%. I can see what was put into the 401k. They only do it once a year and it goes in as company sto...

passive101 wrote: ↑Sun Mar 26, 2023 12:09 am My employer is supposed to do a 4% match @ 100% in the 401k. For the whole year I contributed $16,390.97. Gross earnings are $74,035.86. The company contributed $1445.19

How did they come up with the $1445? I thought they would put in 4% of my annual income?



I am paid a combination of hourly, commission, and tips (If that matters)

Hourly = 15,075.18
Overtime = 651.40
Commission = 27,568.52
Tips = 28,602.47
PTO = 213.84

Where are you seeing the $1,445.67 figure? Do you have multiple 401(k) accounts when you look at the website? Does your plan have different matching rates for pre-tax and Roth deferrals?

Basel Hodge wrote: ↑Mon Mar 27, 2023 1:26 pm The more I did into this the more questions arise.
1. Once I select a cost basis on a specific account do I need to sell future funds in that account with that same cost basis?

In reality there's only two choices that matter: average cost or specific lots. All the others (e.g. FIFO) are just specific lots where they pick which lots to sell for you. You can switch between all the different forms except for average cost at will. You can also switch back to average cost in the future. However, once you sell something using average cost, all existing lots of that stock or fund in that account are locked into average cost. Any future lots you purchase can still be switched back to specific lots.

My mother (widowed for 30 Years) lives in her home for the last 60 years Home bought in early 1960's for ~$15,000. Today's value is about ~$450,000 Improvements (addition to house) were done in the 80's. Probably no receipts from this exist. Just doing some math...If your mother was widowed 30 years ago and lived in/owned the house with your father, then her basis was probably at least half stepped-up when your father died (100% step up in a community property state). So the capital gains would be $450,000 minus the stepped up basis...and a lot less than everyone's thinking. You'll also be able to subtract any expenses of the sale itself from the capital gains. Thanks for all of you responses. I suppose, as mentioned, a real estate agent m...

My mother (widowed for 30 Years) lives in her home for the last 60 years Home bought in early 1960's for ~$15,000. Today's value is about ~$450,000 Improvements (addition to house) were done in the 80's. Probably no receipts from this exist. Just doing some math...If your mother was widowed 30 years ago and lived in/owned the house with your father, then her basis was probably at least half stepped-up when your father died (100% step up in a community property state). So the capital gains would be $450,000 minus the stepped up basis...and a lot less than everyone's thinking. You'll also be able to subtract any expenses of the sale itself from the capital gains. Thanks for all of you responses. I suppose, as mentioned, a real estate agent m...

HerkyJerky69 wrote: ↑Mon Mar 27, 2023 10:44 am Into their new IRA products. April 18 is the deadline. They have conflicting information as to whether this is by when you need to initiate or by when the rollover must be completed.

If I'm late 40s, what is my downside? There's a five year lockup effectively, but who cares at my age? I can buy VTI there just as well as my current shop.

This is $1,000 per $100k rolled. It's not unreasonable for folks to be in line for a five-figure bonus. That has to be a record, right?

Do you have a link to the rollover match? I could only find a contribution match, which is worth all of $65 this year.
https://robinhood.com/us/en/support/art ... match-faq/

Hi Sir/Madam, I have an llc taxed as an SCORP. I want to elect for PTE tax payment of 9.3% . After I add the election in my Californnia 100S, Can you please tell me how to make federal 1040 adjustment decrease . Where on 1040, can you ennter the PTE tax paymennt and get deduction. Do you also have to add in California Personal .. Could you please give me the linne items where I can enter in 1040 Federal and Personal California tax return.. Or can I adjust federal deduction in the 1120s itself, if so which line item on 1120s, can I deduct the PTE Tax Thank you so much for the all the help .. The credit should be included first on your Schedule K-1, line 15. Federally it gets reported on form 3800. From there it flows to Schedule 3, and from...

Basel Hodge wrote: ↑Mon Mar 27, 2023 9:24 am First thank you all for your thoughts and guidance.

Is my understanding correct that funds held in tIRA or Roth IRA is not subject to the same sets of cost basis choice upon selling as those held outside tax advantaged accounts? (I guess I should stipulate the question assumes the tIRA has only had 'deductible' contributions.)

There are never capital gains taxes on funds held in those accounts, so there's no basis. It doesn't matter if the contributions are non-deductible either. Whenever the IRS cares about gains and losses in a traditional IRA with basis, the calculations are based on changes in the value of the entire account, not any specific investment.