Search found 11 matches

by Boogiebogle
Sun Feb 05, 2023 10:23 pm
Forum: Non-US Investing
Topic: Sudden departure of resident alien from US
Replies: 6
Views: 1318

Sudden departure of resident alien from US

I have been working on H1B visa in tech in US since 2008. Still waiting for my green card :oops: With waves of layoffs in tech I am preparing myself for it. I will have 60 days to leave the country if I am let go. Currently, I am using many financial instruments including multiple borkerage accounts, bank accounts, mortgage, Roth IRA, 529, HSA, 401k, treasurydirect etc. Browsing this forum it seems to me that once I don't have US address my access to my funds in these accounts might be in jeopardy. What should I be doing to my different accounts to prepare for a scenario where I need to leave the country on 60-day notice? My biggest concern is if I need to liquidate my accounts I would be hit by massive tax bill. I would like to remain inve...
by Boogiebogle
Sun Feb 05, 2023 8:39 pm
Forum: Personal Investments
Topic: Auto enrolled calsavers account beyond contribution limit
Replies: 6
Views: 587

Re: Auto enrolled calsavers account beyond contribution limit

You can have the excess contribution "recharacterized" which will switch the contribution plus earnings or minus losses from the Roth IRA to a TIRA. At that point you could convert the TIRA to a Roth IRA. If you do this you will have to file Form 8606 for 2022 to report the non-deductible contribution and add the required recharacterization statement to your 2022 Form 1040. The conversion will be reported on your 2023 Form 8606. This only works if you have no other non-Roth IRAs (Traditional IRA, Rollover IRA, SEP IRA, or SIMPLE IRA) because of the pro-rata rule. This is covered in the "Recharacterizations" section starting on page 4 of Instructions for Form 8606 : "You made a contribution to a Roth IRA and later r...
by Boogiebogle
Tue Jan 24, 2023 10:53 pm
Forum: Personal Investments
Topic: Auto enrolled calsavers account beyond contribution limit
Replies: 6
Views: 587

Re: Auto enrolled calsavers account beyond contribution limit

Thanks duckie for your reply. Very helpful. I need to choose option 2 since I did backdoor Roth IRA in 2022. Few followup questions,:
1) In this case I don't need to file 8086, correct?
2) will custodian provide ,1099-r at the same time as distribution?
3) since I know contribution and earnings I don't need 1099-r while filing taxes. Or 1099-r contains additional information I will need?

Thanks again for your help.
by Boogiebogle
Tue Jan 24, 2023 8:32 pm
Forum: Personal Investments
Topic: Auto enrolled calsavers account beyond contribution limit
Replies: 6
Views: 587

Auto enrolled calsavers account beyond contribution limit

Apparently CA forces small employers to offer calsavers retirement plan with default option of auto enrollment. As a result I got auto enrolled in it's roth IRA last year without any explicit action on my part. My 2022 income is 140k. However, combined with my spouse income we are well beyond Roth IRA contribution limit. So now I need to deal with ~2k$ which got in there as paycheck deduction. What's the best course of action for me? I don't like funds in the plan. High ER. So, can I just liquidate that IRA and move cash out of that account. Any tax implications for that? Or do I need to move it out in kind in another brokerage and then sell? Also I assume I need to pay taxes on the growth. Will I get 1099 from calsavers when I liquidate or...
by Boogiebogle
Fri Jan 06, 2023 11:42 pm
Forum: Personal Finance (Not Investing)
Topic: Over funded after tax 401k
Replies: 2
Views: 296

Re: Over funded after tax 401k

Thanks sailaway. That's useful ­čĹŹ
by Boogiebogle
Fri Jan 06, 2023 11:09 pm
Forum: Personal Finance (Not Investing)
Topic: Over funded after tax 401k
Replies: 2
Views: 296

Over funded after tax 401k

Hi,
Per more complex example listed on https://www.bogleheads.org/wiki/After-tax_401(k) limit is per employeR and not employeE. So, during a year if one worked for multiple employer then one can go over the usual limit of after tax 401k. I did this for 2022 since I changed jobs. Now, I want to make sure that this indeed is true. So, I went to the cited source on the wiki which points to IRS publication, but I cant find language in that publication that limit is per employeR. Can someone please point me to the language in official IRS source that would be great. Also, I assume folks have done this in the past, how do I handle it while filing taxes. Do I need to file additional form?
by Boogiebogle
Sun Sep 25, 2022 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Spousal contribution mechanism
Replies: 5
Views: 613

Re: Spousal contribution mechanism

Bump.
I know it might be a dumb question, still appreciate any response :happy
by Boogiebogle
Sat Sep 24, 2022 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: 401k and employer change mid-year
Replies: 10
Views: 931

Re: 401k and employer change mid-year

I believe I don't have to take any action in this scenario since 401k across two plans is within limit. After tax excess doesn't matter. Am I right
So, am I correct in above assumption?
by Boogiebogle
Sat Sep 24, 2022 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: 401k and employer change mid-year
Replies: 10
Views: 931

Re: 401k and employer change mid-year

Yes converted to Roth via mega backdoor
by Boogiebogle
Sat Sep 24, 2022 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: 401k and employer change mid-year
Replies: 10
Views: 931

Re: 401k and employer change mid-year

I have similar but not identical situation:
I changed employer in 2022 and my contributions are :

Employer A:
401k pre-tax : 0
Employer match : 0
Roth after tax : 18k

Employer B :
401k pre-tax: 19500
Employer match: 4%
Roth after tax : 24k

I believe I don't have to take any action in this scenario since 401k across two plans is within limit. After tax excess doesn't matter. Am I right?
by Boogiebogle
Sat Sep 24, 2022 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Spousal contribution mechanism
Replies: 5
Views: 613

Spousal contribution mechanism

Long time lurker, first time poster. We do our taxes MFJ. I have following questions w.r.t contributions across different instruments: a) 529 : Rules say "each parent" can contribute 16k without requiring to file 709. We have a 529 account for our son. I contributed 16k already to it from my bank account. Can I contribute another 16k from my bank account on behalf of my spouse or that 16k needs to come from her own bank account as a gift? b) backdoor Roth IRA: we don't qualify for Roth, so we do backdoor Roth IRA. I have done that for past several years. Now we want to do it for my spouse as well. We can open an IRA for her. But does the contribution in it needs to come from her own bank account or can that come from my bank accou...