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Thank you all! I was referring to seeing spouse accounts under my login and vice versa. 

I and my spouse would like to give each other access to accounts under a respective single login. Fidelity appears to be only requiring a notarized signature for PoA, so I am just thinking of doing full authorization and it doesn't seem to make much difference in comparison. https://www.fidelity.com/customer-servi ... s-overview. Am I missing something?

Also, I am wondering if giving full authorization and/or PoA to a spouse creates any tax and/or other complications/implications. 

Thanks, in advance for reading and contributing to the thread.

Phew, thank you all!

investing engineer wrote: ↑Sun Mar 06, 2022 2:25 pm

Curious to know how can contributions to plans like 401(k) result in excess contribution, UNLESS you've active plans at multiple employers.

investing engineer wrote: ↑Sun Mar 06, 2022 2:25 pm

[/quote]

Curious to know how can contributions to plans like 401(k) result in excess contribution, UNLESS you've active plans at multiple employers.

As I am consolidating accounts and getting things in order, I stumbled on my 2016 tax return and discovered the following. Did I make any mistake in reporting and/or do I need to amend anything with IRS? One of my previous employers was offering a traditional pension plan during 1st two years of my employment, after which they froze that plan and stopped offering it to any new employee. In 2016, I got a letter from the plan custodian/Fidelity that I have a choice to take a distribution and roll over that accrued pension plan balance into an IRA. Since it was just a 10K balance, I decided to do a direct Rollover. During the direct rollover request submission, I believe there was a question as to if I am rolling over to a traditional IRA, or ...

My niece, whose total income was $16,000 in 2022, and who qualified for the EITC in the previous year, received this notice from the IRS about 2022 taxes. Form 1099 INT Total Interest Paid or Credited $24 THIS IS NOT A TAX BILL. It shows the taxable interest paid to you during the calendar year by the Internal Revenue Service. If you are required to file a tax return, report this interest as income on your return. This amount may represent interest on an overpayment for more than one year, or more than one kind of tax. This interest may have been paid with your tax refund or part or all may have been applied against other taxes you owed. How does someone who has this little income warrant an interest Payment FROM the IRS? She surely did no...

I just closed our online-only account with Capital One after experiencing a hot mess with their customer service department. They even have a so-called cafe in our town, but the people there can't do anything except point you toward the onsite ATM machines. Up until I had a problem, online only banking was fine and I never once had a need to contact anyone, but after there was a problem, getting any sort of help was really hard. Now we stick to brick & mortar. I think that's how it goes with online banks, everything's great until it isn't, and that's when regret sets in. FWIW - Capital One is not only an online bank, and capital one 360 bank accounts are not online-only accounts, they have many B&M stores. Those cafes were from ING...

Alan S. wrote: ↑Mon Jan 23, 2023 9:10 pm The idea that a bank cannot properly code a check made out to an IRA custodian FBO taxpayer as a direct non reportable transfer is nonsense. Even if that check is handed to the taxpayer, if the taxpayer is not the payee it's a non reportable transfer. There should be no 1099R or 5498 issued. This also applies to HSA accounts.

So, just wondering, in your opinion, Fidelity shouldn't have issued a 1099-R with a code "G" and 5498?

Northern Flicker wrote: ↑Mon Jan 23, 2023 4:03 pm Some banks will code all distributions as a rollover (subject to the 12 month rule) no matter where they send a check. One bank told me they have no provision to enter this categorization in their system, and they will code all types of rollovers as distributions on 1099-R's.

I did one 401(k) to IRA rollover/trustee-to-trustee/Fidelity-to-Fidelity transfer in 2018 and Fidelity issued me a 1099-R with a distribution code "G" and also form 5498.

iamthewalrus wrote: ↑Mon Jan 23, 2023 12:31 pm The number I called was 800-544-3716 which goes straight to the HSA team. I definitely did it and the representative I talked to knew exactly what I wanted immediately, so maybe just try to roll the dice and get another representative?

Thanks, finally after multiple transfers, got the confirmation that it can be done. Since the market was up, submitted a request to liquidate the HSA account at HealthEquity earlier today.

I understand that IRA/retirement plans are restricted by a one-rollover-per-year rule if you take possession of the funds. If I rollover my previous employer's 401(k) to Fidelity and the check is written in Fidelity's name FBO myself and I deposit that check into the Fidelity rollover IRA account, would that trigger this one-a-year rule?https://www.irs.gov/retirement-plans/pl ... tributions. 

Also, does this one-rollover-per-year rule extends to HSA 60-day rollovers? i.e.if I do a 60-day Rollover for my HSA account this year, would it impact my ability to rollover any 401(k) to Rollover IRA or vice-versa? https://www.irs.gov/publications/p969#e ... 1000204068

iamthewalrus wrote: ↑Sat Jan 21, 2023 7:43 pm
Day 4. The funds showed up in my checking account as a pending transaction in the morning, I called up Fidelity HSA on the phone and requested an EFT 60 day rollover, I had already linked my checking account with my new Fidelity account and the phone representative entered the transfer amount, the balance showed up immediately in my Fidelity account and I could immediately place a trade order to purchase FXAIX, which completed at close of business 1/20.

I just called Fidelity and the rep said the Rollover contribution can't be EFT. I asked him to check his resources and got disconnected. Will try calling them again. Oddly they only list a check deposit option here for 60 days rollover...https://www.fidelity.com/go/hsa/transfer

iamthewalrus wrote: ↑Sun Jan 22, 2023 6:08 pm And btw you do have create an "expense" but you can just put in "Rollover" in as the name, the current date, and I just selected "Unknown" as the "expense" type. All this information is just for HealthEquity's website, it's not sent to the IRS or anything and it doesn't matter what you enter.

Thank you! Really helpful.

Thank you for sharing. If BoA/ME will keep using a 24-week lookback period it will be easy to collect transfer bonus every year and maintain a PH status. It baffles me that multiple banks allow multiple "new money" bonuses using basically the same money. I'm now trying to repeat a generous E*Trade bonus. The application got held up by something which the weekend help couldn't fix. Not sure yet if it will be allowed, but I think so. You don't need to open a new account to receive a bonus. You can just call and ask them to add a promo/bonus code to the existing account. For ME, they look at net new assets for the preceding 24 weeks, so if you transfer out the assets, you may not be able to qualify for the bonus for the next about 6...

You can't transfer a fund, you'll have to create a trade order to sell the balance and once it is in cash you'll just request a "reimbursement" (i.e. a withdrawal) to your linked account. I didn't close my account, I left $10 in it, it's still linked to my employer medical plan so I still expect to receive future payroll and incentive funds into it. What I would do in your situation I think is treat transferring the bulk of the investment amount and closing the account as two separate steps, I would follow the steps I described above to transfer the majority of the invested funds to your new custodian to minimize the amount of time they are not invested, and leave a nominal amount in cash in the account, and then once that is don...

... If I could earn a ME transfer bonus every year and have to keep funds only for three months to maintain Platinum Honors status, BoA/ME looks more interesting than just keeping $100K forever and having BoA CCs. We've already double-dipped this. Once you attain PH status, you're good for a year. I moved the funds elsewhere for a bonus, stayed out long enough that the 24-week lookback was passed, then moved it back as "new funds" to get another bonus. I think I dropped PH status because my timing with the other account wasn't perfect, but I got it back. If the hold requirements with the external account aren't too long, you may be able to coordinate it so your funds are back at ME in time to qualify for the bonus and keep PH sta...

Day 3. Funds showed up in my cash balance in the morning (took 1 day to settle I guess) and I initiated an electronic funds transfer to my checking account. I already had the external account linked (see HealthEquity help article at https://answers.healthequity.com/app/answers/detail/a_id/769/~/add-an-eft-account for how to link an account and the flow to start a transfer). The form you fill out is structured as if it is a reimbursement but you can just type "Rollover" (or anything) in the text field and select today's date etc. to start the transfer request. I do have an EFT bank account for reimbursements, but do not see an option to transfer a fund. The only available option is Reimbursement of the medical expenses. To transfe...

For tax purposes at the federal level trustee to trustee transfer is not reportable. A 60 day rollover is reported as a withdrawal, which will be reported to by HealthyEquity on Form 1099-SA included in your total withdrawals, you'll then enter this full amount on Form 8889 line 14a (link https://www.irs.gov/instructions/i8889#en_US_2022_publink37971yd0e1511), and then on line 14b you the amount of 14a that was used for a qualified rollover to another HSA custodian (i.e. rolled over within the 60 day window). So tax wise it will get reported to you and the IRS by HealthEquity that there was a withdrawal using form 1099-SA and you'll report in your tax return using Form 8889 that it was a qualified withdrawal for a rollover and won't be tax...

iamthewalrus wrote: ↑Sat Jan 21, 2023 7:43 pm I wondered the same thing and I don't have an answer to your question, but I just performed a 60 day rollover from HealthEquity to Fidelity this week and was able to do the whole thing within a week. What I did was:

Thanks. Any idea what tax forms HealthEquity would issue you in 2023 and how/what form would include this distribution/rollover? I live in a state where HSA contributions are not pre-tax, so trying to figure out if rollover may create a tax situation and if I should just do the trustee-to-trustee transfer.

Thanks!

That is what I have been thinking, but am trying to beat that 3 weeks' time. Can taking custody become a nightmare and/or create a tax situation?

Soon2BXProgrammer wrote: ↑Sat Jan 21, 2023 7:25 pm I would suggest you have your new custodian submit an account transfer to health equity (partial leaves account open or full closes account).. and never take custody of funds.

HealthEquity doesn't allow in-kind transfers, so the account that I have with them that was through a past employer must be liquidated, whether I want to do a rollover or a transfer. For transfer (trustee-to-trustee), they don't seem to have an option for wire or EFT, but they do seem to have that option for rollover, i.e. they send me monies and I deposit it in the HSA account at another trustee. Also, the transfer to another trustee can take anywhere up to 3 weeks, whereas rollover to me might be 1.5 weeks. With all that being said, my question is can I deposit monies into another custodian's HSA account after submitting the rollover request to HealthEquity but before  receiving the monies from HealthEquity, or that must be within 60 days...

retiredjg wrote: ↑Mon Dec 05, 2022 10:25 am

I received my 1099-R for removing excess Roth IRA contributions. The contribution amount was 6000 and 6000-NIA came out to be 4921.12, so technically, it was a removal of the total contributions.

Box 1. Gross distribution: 4921.12
Box 2a. Taxable Amount: $0.00
Box 7. Distribution code(s): J8
Box 15. State/Payer's state no...

All other boxes are empty or not checked including both 2b boxes.

Does Distribution code(s): J8 look accurate?

Maybe that's when pursuing the passion argument comes under real test. I teach my kids that if your passion can't put the food on the table then it's madness not passion in my view. There has always to be a reality test. In your case, I would hope that your degree eventually paid off. Well duh! Of course you feed your family first. Our kids are 6 and 11, we 529's for both boys and are pretty well funded At this point it would cover two years full for both kids, not inflation adjusted of course. We have set this as a goal in our portfoliol, so that we can concentrate more on our wealth building. A) Please explain why do you believe that there is no possibility for you to be out of business and/or out of jobs over the next 10+ years and force...

Thanks, KlangFool , teen persuasion , cshell2 , AnEngineer et al. Much appreciated. Will spend some time reading through it.

I have always got very conflicting information and hence I was never encouraged to do 529 for kids. The info I received was that...if you have 529 for a student X, it may impact their eligibility for a scholarship or financial aid, etc. How much truth is to that argument? Also, how do parents' liquid assets, income, and retirement assets impact a student child's ability to receive financial aid or a scholarship? I max out my retirement contributions every year, but still, about 60% is in taxable(brokerage/bank) accounts, and have always wondered how any of these can affect and/or limit my children's ability to receive FinAid or a Scholarship. 4) While my kids go to college, I spend down my taxable account to pay for the college education. B...

ditto wrote: ↑Mon Jan 09, 2023 4:45 pm Can someone help me find on Vanguard website the calculated Vangaurd Rate of Return on my Portfolio for 2022? I am sure it has to be on the website but, I can not find it. All I can see is the Total rate of Return on my Portfolio form inception.

If it is just one year, and if not many contributions then it might be just a simple calculation. I mostly use the XIRR function for calculations...https://support.microsoft.com/en-us/off ... 03ad9adc9d

If she had the monies removed by the custodian as an excess contribution as was recommended in the prior thread then she can perform the Backdoor Roth now. If she simply withdrew the funds herself it’s a different ball of wax. There is no downside in her always doing a Backdoor Roth beyond a limited amount of record keeping which is far less burdensome than having to undo a disallowed direct Roth contribution. Cheers Thank you! Yes, it was removed as an excess. Due to loss/negative NIA, removal was about 22% less than contribution. Our income can be on the fence this year as well, so either I can wait to contribute for 2023 in her Roth in 2024 or just do backdoor Roth now. Seems like since I would do backdoor for 2022 (contribution would b...

If she had the monies removed by the custodian as an excess contribution as was recommended in the prior thread then she can perform the Backdoor Roth now. If she simply withdrew the funds herself it’s a different ball of wax. There is no downside in her always doing a Backdoor Roth beyond a limited amount of record keeping which is far less burdensome than having to undo a disallowed direct Roth contribution. Cheers Thank you! Yes, it was removed as an excess. Due to loss/negative NIA, removal was about 22% less than contribution. Our income can be on the fence this year as well, so either I can wait to contribute for 2023 in her Roth in 2024 or just do backdoor Roth now. Seems like since I would do backdoor for 2022 (contribution would b...

Thanks, I was just thinking to make rebalancing easier. But it seems to come with its cons. It's free for 90 days, so I might give it a shot to see the interface and what it offers.

I am a BoA PR member for many years, but ME can be a pain for IRAs. See...viewtopic.php?t=390724
viewtopic.php?t=391752

What percentage of the overall portfolio is this and how does it compare to fixed income holdings in tax advantaged because one way to reduce concerns about time out of market you can adjust the stock holdings in tax advantaged and consider the money in movement to be fixed income. This is about 5% of the total portfolio . I don't have any fixed-income holdings, most are in either ETFs or mutual funds. Since it's only 5% of your total, I'd just move it and not worry about the time out of the market. If you want to speed things up, you might be able to pay extra to have the money wired to Fidelity, or pay extra to have the check sent via overnight express with UPS or FedEx. Regards, Thanks, Fidelity did tell me that they will reimburse me f...

placeholder wrote: ↑Mon Jan 09, 2023 6:55 pm What percentage of the overall portfolio is this and how does it compare to fixed income holdings in tax advantaged because one way to reduce concerns about time out of market you can adjust the stock holdings in tax advantaged and consider the money in movement to be fixed income.

This is about 5% of the total portfolio. I don't have any fixed-income holdings, most are in either ETFs or mutual funds.

I have an old employer's 401(k) portfolio at Prudential. Unfortunately, according to them, I can't do an in-kind transfer to Rollover IRA either with them or with other outside custodians. I wanted to consolidate it at Fidelity but if I do that I might be out of the market for a good couple of weeks. Due to this, I am thinking of keeping it there for now. With that said, I have below fund choices. My target allocation is 70-75% domestic stocks and 25-30% international. Is it possible to achieve that allocation with these funds? I guess I can do 60% FXAIX, but not sure what small-mid cap I should keep for another 10-15% and 25-30% international. Description Symbol ER Current Allocation DFA Intermediate Government Fixed Income Portfolio Insti...

AnEngineer wrote: ↑Sat Jan 07, 2023 12:27 pm Say you accidentally get a wash sale due to some dividend reinvestment or something. First, it's likely to be a small fraction of the shares you sold at a loss. For example, if you sold 100 shares for a $10 loss each and accidentally buy 5 shares. That means you still get to take the loss on 95 shares of $950. Further, the basis of those 5 shares is increased by $10 each. You can recover the $50 disallowed loss by selling the 5 shares (assuming the security otherwise trades at the same amount, if it moves the loss will be adjusted accordingly for those 5 shares).

Is this really accurate? If you sell 100 shares at a loss of 1000 and buy 5 shares, wouldn't the cost basis of those 5 shares increase by $200 each?

Does anyone know, if Fidelity's Solo Direct indexing option is worth it for $4.99/month? TIA!


 

Background: I and my spouse contributed to the Roth IRA and due to a change in income, we both are not eligible to contribute to the Roth for 2022, so we both removed that contribution minus losses in December. My detailed thread regarding removing excess contributions is here...https://www.bogleheads.org/forum/viewtopic.php?t=390724. I am not planning to do backdoor Roth for myself, due to pro-rata, because I have monies in Rollover IRA, but am thinking about doing it for my spouse Questions: Can she contribute to a traditional IRA for 2022 and do backdoor Roth, with the fact, that she removed the Roth contribution for 2022?If the person doesn't have the monies in traditional IRAs, like her, what would be the downside of just always doing...

I was checking with my current employer's 403(b) plan, where I have pre-tax and post-tax/Roth contributions options, and according to the TIAA, I can roll over my Roth IRA into the employer plan as well. Does it sound accurate?

Also, I was reading on the IRS website, and unless I am missing something, 403(b) and 401(k) plans, irrespective of the type of the accounts(i.e. whether pre-tax/traditional, or Roth) require Required Minimum Distributions (RMDs). Is it an accurate interpretation?

MNS CA wrote: ↑Thu Dec 29, 2022 1:50 pm Have you considered hedging with puts or using a collar transaction (buying puts and selling calls) instead of selling? You can also margin out cash if you need it or want to rebalance. All tax free or low tax strategies, but you'll pay margin interest and fees / bid ask spreads on the options.

Unfortunately, I have not. Don't have much expertise in options/futures trading, but surely plan to look into it.

My 401(k) from one of my previous employers with Prudential/Empower and not all mutual funds are unique, still, they said I have to liquidate before I can transfer. They told me, I can't even do in-kind to Rollover IRA, even if I open a Rollover IRA account with them.

Planner01 wrote: ↑Tue Dec 20, 2022 6:08 pm

nisiprius wrote: ↑Tue Dec 20, 2022 2:36 pm Can't you transfer "in kind?" Ask.

It must be expensive or difficult for financial firms to do, because they never seem to volunteer it as an option unless you ask.

You can’t since the options from the original 401k are unique to the employer’s portfolio offering.

What @apc said above. Just make sure that after the sale of your shares for loss on day T, there aren't any shares left that were bought between T-30 and T, and also refrain from buying the same stock/mutual fund from T to T+30. Then you are good. If there would be any shares that would remain between T-30 and T after you have identified the shares to sell for a loss, you should actually sell THOSE shares first (regardless of unrealized gains or losses), so that those "replacement shares" do not exist when you actually go to sell the shares that do have losses. Best to do this on two different days; if you sell on the same day there could be an irrelevant wash sale, since the orders may not be executed exactly in the order you in...

assuming the remaning 100 shares you DON'T sell weren't purchased within 31 days of the loss taken on the other 200 shares you DO sell (and the other conditions you mentioned are met/i.e., no other buying of any new/other shares 31 days before or after or dividend reinvestment in that time either), then you're good. you don't have to sell ALL shares. You just can't have purchased any REPLACEMENT shares (meaning shares you bought within 31 days before/after you sold other shares). with these scenarios it's helpful if you write out what you have and what you want to do. I.E.: lot #1: 100 shares META purchased 1/24/2021 lot #2: 100 shares of META purchased 5/30/2022 lot #3: 100 shares of META purchased 9/20/2022 and then state which lots you'...

In that case, I agree that you should add the $10k (not $11k) to the ACB. Once the transfer is out of the account it doesn't change the NIA, so the transferred funds value on Dec 4th isn't relevant to the calculation. Got it, thanks for the feedback. It's unfortunate that I have to do the calculation, hence I would consolidate my Roth accounts at Fidelity once all this is over. On a related/side note, in the below example at https://www.law.cornell.edu/cfr/text/26/1.408-11, shouldn't the custodian return the last two contributions i.e. of Jan and Feb unless they were for the different/next year? i) Beginning in January 2004, Taxpayer B contributes $300 on the 15th of each month to an IRA for 2004, resulting in an excess regular contributio...

Your AOB (not ACB) should be increased by the $10k that was transferred in, right? (2) Adjusted closing balance. The term adjusted closing balance means the fair market value of the IRA at the end of the computation period plus the amount of any distributions or transfers (including recharacterizations of contributions pursuant to section 408A(d)(6)) made from the IRA during the computation period. Maybe you misunderstood my transfer, In my case, I transferred OUT those mutual funds, so I believe it should be ACB, wouldn't it? But, the account custodian usually makes these calculations although I don't think they are required to. Just be sure they don't recalculate your NIA on the amount you request that already includes your NIA. I believ...

retiredjg wrote: ↑Mon Dec 05, 2022 10:25 am [I cannot help you with this. A few people have reported doing it, but they may not be following this thread. If you don't get answers, you might want to start a thread about that with words in the title that will attract the right attention.

Thanks a lot for the help and feedback. I create a new thread...viewtopic.php?p=6993742#p6993742

I made a 6K Roth IRA contribution for this year/2022 in January 2022. However, based on my income this year so far and capital gains, I have determined that I'd be most likely (almost 100%) ineligible to make any Roth contributions this year. I'd rather get a 1099-R for excess contributions this year than deal with it within 2023, hence I'd like to submit the excess contributions request as soon as possible this month. Unfortunately or sadly, my Roth IRA custodian, Merrill Edge wants me to calculate the net income attributable. I understand that the formula to calculate NIA is NIA = Excess contribution X AOB/(ACB-AOB) where: AOB=Adjusted Opening Balance ACB=Adjusted Closing Balance If a Roth IRA account was untouched the entire year, it's n...

placeholder wrote: ↑Mon Dec 05, 2022 1:04 am

tACKJAYE wrote: ↑Sun Dec 04, 2022 8:48 pm Ah, thanks. I'll check. Let's say if the employer allows it, do they grow and eligible distributions during retirement are not taxed just like Roth accounts?

No the after tax grows tax deferred and you owe tax on the earnings but not the basis which is why it's usually not recommended unless you can covert to roth within the plan or roll out the after tax to a roth ira.

Thanks again for more clarity. My plan doesn't allow in-service rollover for sure unless I'm 59.5 years old; but will first if they allow these types of contributions and if they do then do I have the option to convert them into Roth within the plan?

placeholder wrote: ↑Sun Dec 04, 2022 8:19 pm There's a problem in that you seem to be conflating roth and after tax which are not the same thing so you need to make sure the plan allows after tax non roth contributions.

Ah, thanks. I'll check. Let's say if the employer allows it, do they grow and eligible distributions during retirement are not taxed just like Roth accounts?

Background: My current employer offers a 403(b) plan, managed by TIAA. The employer makes a base contribution of 4% for all employees, regardless of employee contributes or not. In addition to this 4% base contribution, the employer matches up to 4% of voluntary contributions, i.e. if I contribute 6% of my pay, the employer would contribute an additional 4%, making their total contribution to 8% (employer MAX). Due to this, if an employee makes contributions of more than 4%, there would be two accounts at TIAA. One is called Base Plus Match account and the other one is called the Voluntary account. All contributions from employers and up to 4% of employee contributions would go to the base plus match plan, and all remaining/additional empl...