Search found 7237 matches

by Alan S.
Sat Feb 17, 2018 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: Substantially Equal Periodic Payments (Funding Early Retirement)
Replies: 14
Views: 956

Re: Substantially Equal Periodic Payments (Funding Early Retirement)

SEPP is better than forgoing Traditional account and investing in taxable. When I looked into it, it did not seem that difficult. It is not entirely without flexibility, but does require you to lock up some of your portfolio for at least five years. While you can't take additional withdrawals, you ...
by Alan S.
Sat Feb 17, 2018 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Substantially Equal Periodic Payments (Funding Early Retirement)
Replies: 14
Views: 956

Re: Substantially Equal Periodic Payments (Funding Early Retirement)

No, the SPIA does work. They code the 1099R at any age with a distribution code 7 / Exception Applies, so there is no penalty. It really works. Fidelity/Vanguard/TIAA/T Rowe Price all confirmed this to me. Code 7 only applies for distributions after 59.5. If an IRA custodian wanted to reflect a SEP...
by Alan S.
Sat Feb 17, 2018 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: 403(b) RMDs while still working?
Replies: 14
Views: 694

Re: 403(b) RMDs while still working?

Terms of the plan govern The plan’s terms may allow you to wait until the year you actually retire to take your first RMD (unless you are a 5% owner). Alternatively, a plan may require you to begin receiving distributions by April 1 of the year after you reach age 70½, even if you have not retired....
by Alan S.
Fri Feb 16, 2018 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: Substantially Equal Periodic Payments (Funding Early Retirement)
Replies: 14
Views: 956

Re: Substantially Equal Periodic Payments (Funding Early Retirement)

In case you didn't know already, note that SEPP does not work well with Roth accounts. The reason that Roth accounts are rarely included in the SEPP is that it is generally harmful to draw down your Roth IRA at a time when you are not working. Roth accounts are typically the last accounts you tap. ...
by Alan S.
Fri Feb 16, 2018 9:39 pm
Forum: Investing - Help with Personal Investments
Topic: Substantially Equal Periodic Payments (Funding Early Retirement)
Replies: 14
Views: 956

Re: Substantially Equal Periodic Payments (Funding Early Retirement)

You can get an SPIA of any size within an IRA that automatically constitutes Substantially Equal Payments (no 10% penalty). This is not correct. An IRA distribution qualifying for the SEPP penalty exception is required to calculate the annual distribution using one of the 3 approved methods describ...
by Alan S.
Fri Feb 16, 2018 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: 403(b) RMDs while still working?
Replies: 14
Views: 694

Re: 403(b) RMDs while still working?

I think the old plan is considered “frozen”, I’ll have to call Newport and see if it’s considered “maintained”. Please post what Newport says. Even better if they can refer to a specific cite. As Gronnie mentioned, if the old plan can be rolled into the new plan, if RMDs were required on the old pl...
by Alan S.
Fri Feb 16, 2018 9:13 pm
Forum: Investing - Help with Personal Investments
Topic: Roll deductible tira contributions to 401k and Roth converting the non-deductible portion
Replies: 2
Views: 132

Re: Roll deductible tira contributions to 401k and Roth converting the non-deductible portion

Yes, but note that the pre tax portion includes both deductible contributions and gains on those contributions. What should be rolled into the 401k is the total balance of all your non Roth IRAs LESS your basis (non deductible contributions). You must have reported the non deductible contributions o...
by Alan S.
Fri Feb 16, 2018 9:04 pm
Forum: Investing - Help with Personal Investments
Topic: 403(b) RMDs while still working?
Replies: 14
Views: 694

Re: 403(b) RMDs while still working?

Whether you are contributing to the current plan is not a factor. Here is the IRS Reg defining the required beginning date for RMDs: Q-2. For purposes of section 401(a)(9)(C), what does the term required beginning date mean? A-2. (a) Except as provided in paragraph (b) of this A-2 with respect to a ...
by Alan S.
Fri Feb 16, 2018 7:19 pm
Forum: Investing - Help with Personal Investments
Topic: 403(b) RMDs while still working?
Replies: 14
Views: 694

Re: 403(b) RMDs while still working?

It's a great question, and I just spent over an hour checking all possible sources for clear guidance, and didn't find any. The "still working" exception applies to plans "maintained by the employer" you are employed by. There is a question whether a former 403b plan maintained at one time by this e...
by Alan S.
Fri Feb 16, 2018 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Doctor wants Social Security number
Replies: 67
Views: 8669

Re: Doctor wants Social Security number

We never provide our SS number when asked. We are on Medicare, but never use the Medicare number, only the insurance ID number on our insurance card from a Medicare Advantage policy. My wife declined to provide her SSN on new provider paperwork. The following month when the MD was going over her fi...
by Alan S.
Thu Feb 15, 2018 11:04 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Rollover
Replies: 3
Views: 285

Re: 401k Rollover

There is no need for her to set up a TIRA if she wants to simplify things and roll both checks to her Roth IRA. A Roth 401k distribution can be rolled directly to a Roth IRA, and there is no need to funnel it through a TIRA account. She needs to replace the amount withheld and write a new check for ...
by Alan S.
Thu Feb 15, 2018 10:38 pm
Forum: Personal Finance (Not Investing)
Topic: PSA: Schwab International ETFs: 1099-DIV revisions coming
Replies: 13
Views: 1129

Re: PSA: Schwab International ETFs: 1099-DIV revisions coming

Or perhaps the Schwab Notice is saying that the 19a notice was required whether or not you are getting a 1099 DIV from Schwab. And if the 1099 DIV has been issued by Schwab, the 19a notice will not affect it and you don't have to wait for a corrected 1099 DIV. I suppose it's possible, but what abou...
by Alan S.
Thu Feb 15, 2018 10:19 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Form 8606 (Nondeductible IRAs)
Replies: 53
Views: 6025

Re: IRS Form 8606 (Nondeductible IRAs)

As indicated earlier, FFFF uses several approved filing vendors and has a system for assigning your return to one of them. It appears that FFFF is not able to assign returns with an 8606 to the vendors who now support the form. Rather, FFFF will not support filing until every one of the vendors supp...
by Alan S.
Thu Feb 15, 2018 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Can I reverse a Roth -> Trad IRA Recharacterization?
Replies: 4
Views: 202

Re: Can I reverse a Roth -> Trad IRA Recharacterization?

OP is asking if the recharacterization he just did can be re characterized again, as a Roth contribution. The answer is No, it cannot. However, the original contribution, now a TIRA contribution can be returned with allocated earnings. The earnings would be taxable and subject to penalty. Then, up t...
by Alan S.
Thu Feb 15, 2018 9:50 pm
Forum: Investing - Help with Personal Investments
Topic: 401K to Roth 401K
Replies: 35
Views: 2287

Re: 401K to Roth 401K

To better clarify, what is mandatory is that the plan MUST allow you to roll out the Roth 401k money if you want to. But you don't have to if you want the Roth 401k to remain and become subject to RMDs. If you retire in the year you reach 70.5, you will have to take an RMD for that year before rolli...
by Alan S.
Thu Feb 15, 2018 1:12 pm
Forum: Investing - Help with Personal Investments
Topic: TIRA Partial Deduction & Backdoor Roth
Replies: 4
Views: 203

Re: TIRA Partial Deduction & Backdoor Roth

You do not have to take a deduction when eligible. In this case, there is an opportunity to choose which year the taxable income will be. If you want 6500 more in your 2017 income, claim the contribution as non deductible on Form 8606. Then your 2018 conversion will be non taxable except for the ear...
by Alan S.
Thu Feb 15, 2018 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: PSA: Schwab International ETFs: 1099-DIV revisions coming
Replies: 13
Views: 1129

Re: PSA: Schwab International ETFs: 1099-DIV revisions coming

Or perhaps the Schwab Notice is saying that the 19a notice was required whether or not you are getting a 1099 DIV from Schwab. And if the 1099 DIV has been issued by Schwab, the 19a notice will not affect it and you don't have to wait for a corrected 1099 DIV.
by Alan S.
Wed Feb 14, 2018 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Trad IRA or Roth IRA
Replies: 10
Views: 728

Re: Trad IRA or Roth IRA

Your actual marginal rate should include state income taxes as well, but the state rate is only a large factor if you plan to move to a lower tax state than CA. If your expected rate in retirement will be about the same as you are paying now, because you do not have any Roth assets, it would make se...
by Alan S.
Wed Feb 14, 2018 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Employer Sponsored ROTH IRA to non Employer ROTH IRA
Replies: 10
Views: 569

Re: Employer Sponsored ROTH IRA to non Employer ROTH IRA

I checked the ICMA website, and this is a payroll deduction Roth IRA. ICMA operates as the plan administrator for over 9000 public sector retirement plans. However, there the website does NOT provide any information about transferring out of the plan. Obviously, if the IRA is transferred to an outsi...
by Alan S.
Wed Feb 14, 2018 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: rmd disaster
Replies: 23
Views: 2496

Re: rmd disaster

Given this plan's potential restrictions and rules, I suggest doing a direct rollover (avoids withholding) to an IRA account. You can open an IRA at most large firms and they will assist with the rollover process from this plan. However, the plan MUST distribute your 2018 RMD to you before rolling ...
by Alan S.
Wed Feb 14, 2018 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Ramifications of naming your trust as your 401k beneficiary
Replies: 7
Views: 924

Re: Ramifications of naming your trust as your 401k beneficiary

Are you sure that the trust will have to pay taxes on the RMD versus being spun out to the beneficiaries with K-1 forms? No, the K-1 will transfer tax to the beneficiary 1040s. The trust would only pay the higher rates if the RMDs were accumulated in the trust or allowed the trustee discretion to d...
by Alan S.
Wed Feb 14, 2018 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: CD rates on the rise. Should I break my CD...
Replies: 5
Views: 1360

Re: CD rates on the rise. Should I break my CD...

The calculator should clarify that it assumes your CD is not in an IRA, where you cannot write off the EWD as an adjustment to income. The break even rate would be higher for an IRA CD, and require a more refined calculator, even more refined if the difference between a TIRA and Roth IRA was reflect...
by Alan S.
Wed Feb 14, 2018 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover IRA for 1st Home Purchase
Replies: 5
Views: 297

Re: Rollover IRA for 1st Home Purchase

You can always decline withholding from a TIRA distribution, but if don't the default withholding rate is 10%. Generally, the best approach is to decline withholding from an IRA distribution except where you have a specific plan in place that depends on IRA withholding. And if you do, you will proba...
by Alan S.
Wed Feb 14, 2018 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA and contribution deadline question
Replies: 8
Views: 489

Re: Roth IRA and contribution deadline question

Yes, do that if you can. This is probably a good time to comment on direct IRA contributions of tax refunds using this form: https://www.irs.gov/pub/irs-pdf/f8888.pdf As you can see from reading the form, what could possibly go wrong? Almost anything. So if someone suggests this my advice would be t...
by Alan S.
Wed Feb 14, 2018 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: 401K to Roth 401K
Replies: 35
Views: 2287

Re: 401K to Roth 401K

Also you may not be aware of this (many aren't) but Roth 401ks require RMDs at 70 1/2 unlike Roth IRAs. Therefore you will have to rollover your Roth 401k money into a Roth IRA at 70 1/2 to avoid RMDs. Not a major deal, but something to be aware of. While my 457(b) representative has encouraged the...
by Alan S.
Tue Feb 13, 2018 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover IRA for 1st Home Purchase
Replies: 5
Views: 297

Re: Rollover IRA for 1st Home Purchase

The penalty waiver for a first home purchase is not available with a 401k distribution, just available for IRA distributions. So if up to 10,000 is rolled to a TIRA, a distribution can be taken without penalty. The waiver must be claimed on Form 5329, exception code 09. The 10,000 limit is a lifetim...
by Alan S.
Tue Feb 13, 2018 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: First time 1099-R, look okay?
Replies: 4
Views: 420

Re: First time 1099-R, look okay?

Yes, we have had reports of this problem when too many different types of rollovers are combined on a single 1099R. I think you would have had this problem even without the IRR. The rollover to your Roth IRA and the IRR have the same reporting instructions - Box 2a shows the taxable amount and 5 the...
by Alan S.
Tue Feb 13, 2018 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: rmd disaster
Replies: 23
Views: 2496

Re: rmd disaster

Given this plan's potential restrictions and rules, I suggest doing a direct rollover (avoids withholding) to an IRA account. You can open an IRA at most large firms and they will assist with the rollover process from this plan. However, the plan MUST distribute your 2018 RMD to you before rolling o...
by Alan S.
Tue Feb 13, 2018 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Ramifications of naming your trust as your 401k beneficiary
Replies: 7
Views: 924

Re: Ramifications of naming your trust as your 401k beneficiary

Sorry for your loss. The last post is correct regarding the year of death RMD. For all direct rollovers of qualified plans, RMDs due up to and including the year of the rollover must be distributed before a direct rollover to an IRA is allowed. This of course assumes that 2018 would have been an RMD...
by Alan S.
Tue Feb 13, 2018 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: RMD Two in One Year
Replies: 15
Views: 1262

Re: RMD Two in One Year

Selling the house would not make a difference unless it would trigger a new mortgage and prop taxes that would result in itemizing or much higher itemized deductions than you have now. For most people, taking the first RMD in the first RMD year will be best since it avoids any double RMD years. Howe...
by Alan S.
Tue Feb 13, 2018 2:56 pm
Forum: Investing - Help with Personal Investments
Topic: Tax treatment of Roth IRA withdrawals with ROTH 401k rollover
Replies: 10
Views: 536

Re: Tax treatment of Roth IRA withdrawals with ROTH 401k rollover

If you have a Roth IRA, you have to keep track of your basis anyway, unless you are very sure you will not need to take a distribution before 5 years and 59.5. 1) Your regular Roth IRA basis is the amount of regular contributions you made (less distributions you took). You can withdraw this amount t...
by Alan S.
Tue Feb 13, 2018 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes for 2018 recharacterization of 2017 Roth conversion
Replies: 3
Views: 335

Re: Taxes for 2018 recharacterization of 2017 Roth conversion

My mom converted about $40,000 of her traditional IRA into a Roth IRA at the end of 2017. In the beginning of 2018, she figured that wasn't a good idea, so she undid the Roth conversion by doing a recharacterization. She got a 1099-R for the conversion. Is there another tax form for the recharacter...
by Alan S.
Tue Feb 13, 2018 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: PSA: Schwab International ETFs: 1099-DIV revisions coming
Replies: 13
Views: 1129

Re: PSA: Schwab International ETFs: 1099-DIV revisions coming

If ROC is not reported on the 1099 DIV, and cost basis is not reduced as a result, it appears that a future CG amount is being replaced by an equal current tax bill for dividends that actually are ROC. If other firms are correcting the 1099 DIV to reduce reported dividends by the ROC amount, that wo...
by Alan S.
Tue Feb 13, 2018 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Employer Sponsored ROTH IRA to non Employer ROTH IRA
Replies: 10
Views: 569

Re: Employer Sponsored ROTH IRA to non Employer ROTH IRA

A few years back I started my ROTH IRA with an employer sponsored plan with ICMA-RC. The fees are extremely high as others have stated about the company. I currently use them for my 457 plan with ICMA-RC, but would like to withdraw all the money from the ROTH IRA account and start using Vanguard RO...
by Alan S.
Tue Feb 13, 2018 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Tax treatment of Roth IRA withdrawals with ROTH 401k rollover
Replies: 10
Views: 536

Re: Tax treatment of Roth IRA withdrawals with ROTH 401k rollover

Using your assumption that the destination Roth IRA has been open for more than 5 years (it does matter, if you had no Roth IRA and you opened your first one to receive the rollover, the 5 year clock starts over from zero): 1. All contributions from the rollover may be taken out tax free (note: Rot...
by Alan S.
Mon Feb 12, 2018 11:07 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Form 8606 (Nondeductible IRAs)
Replies: 53
Views: 6025

Re: IRS Form 8606 (Nondeductible IRAs)

They have more than one list. When you log off FFFF a screen comes up to "Show supported forms". Form 8606 on that list which is different from the one you posted still shows 2/15 as the available date. I don't know what their problem is, but this is getting annoying. This must be payback for the ba...
by Alan S.
Mon Feb 12, 2018 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: One Roth rollover, two identical 1099-Rs
Replies: 2
Views: 247

Re: One Roth rollover, two identical 1099-Rs

Can't help with the bonus - but I wouldn't worry about the incorrect duplication of the 1099R forms. The IRS instructions are to combine all identical coded distributions for a year on a single 1099R. So as long as the Box 7 codes and everything else including the issuer is an exact copy, the IRS sh...
by Alan S.
Mon Feb 12, 2018 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: How Are Rollovers Represented in Vanguard 401k?
Replies: 6
Views: 412

Re: How Are Rollovers Represented in Vanguard 401k?

You did not include any dollar amounts for the 5 categories you listed, but does your statement? Statements do not necessarily include all the dollar breakdowns that the plan must track to operate. The statements might be consolidating some categories just to keep them manageable. If you roll in IRA...
by Alan S.
Mon Feb 12, 2018 9:09 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Form 8606 (Nondeductible IRAs)
Replies: 53
Views: 6025

Re: IRS Form 8606 (Nondeductible IRAs)

KC123 wrote:
Mon Feb 12, 2018 10:41 am
They just updated the availability of Form 8606 (for FFFF) to 2/22/2018. :annoyed
Where are you getting this? I just checked the FFFF site and it still shows 2/15/2018 there. Not that I would be surprised with another extension or two at this point.
by Alan S.
Mon Feb 12, 2018 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: PSA: Schwab International ETFs: 1099-DIV revisions coming
Replies: 13
Views: 1129

Re: PSA: Schwab International ETFs: 1099-DIV revisions coming

Thanks.
Was their any CG distribution for SCHF?
by Alan S.
Mon Feb 12, 2018 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: 401K to Roth 401K
Replies: 35
Views: 2287

Re: 401K to Roth 401K

Gross income will be the same, but take home pay will drop if current contributions are changed to Roth. And if an IRR is done with the 1500, that has the same effect as if the earlier contributions were Roth as well, although likely some of those might have been in late 2017. The withholding tables...
by Alan S.
Mon Feb 12, 2018 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Suggest a Financial Aggregator Site
Replies: 8
Views: 656

Re: Suggest a Financial Aggregator Site

I use Morningstar Portfolio Manager. Have each retirement and taxable account we have entered separately, and it will also show a grand total. But you will have to manually enter such things as individual bonds, brokered CDs, and mm and sweep funds as you wish and update the dividends and interest p...
by Alan S.
Mon Feb 12, 2018 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: 401K to Roth 401K
Replies: 35
Views: 2287

Re: 401K to Roth 401K

Note that for an IRR to be done here, the plan would not only have to offer IRRs, but it would have to include IRRs of "otherwise non distributable amounts". These are amounts that the employee would not otherwise be able to distribute from the plan until separation, and the elective pre tax 401k de...
by Alan S.
Mon Feb 12, 2018 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: Best course of action to withdraw Roth IRA contribution?
Replies: 6
Views: 509

Re: Best course of action to withdraw Roth IRA contribution?

I wouldn't do anything until you get your W-2. Your contribution is limited to the Box 1 amount. Once you have that, you can request the corrective distribution of your excess contribution amount. The way the market is gyrating now, you could have a gain or loss on your contribution depending on whe...
by Alan S.
Sun Feb 11, 2018 7:49 pm
Forum: Investing - Help with Personal Investments
Topic: Received 1099-R from Vanguard for Roth backdoor but not for mega backdoor (?)
Replies: 8
Views: 794

Re: Received 1099-R from Vanguard for Roth backdoor but not for mega backdoor (?)

That 1099R should have been mailed to you no later than 1/31. So if you do not have it by now, there is a problem. Call the plan administrator.
by Alan S.
Sat Feb 10, 2018 11:05 pm
Forum: Investing - Help with Personal Investments
Topic: 401k->roth now overfunded
Replies: 3
Views: 458

Re: 401k->roth now overfunded

If your modified AGI is high enough to reduce or eliminate your regular Roth IRA contribution, it is NOT because of the Roth rollover. It would be other income that is doing it. See line 2 of this IRS worksheet and note that Roth rollover amounts are subtracted out: http://www.your-roth-ira.com/supp...
by Alan S.
Sat Feb 10, 2018 7:03 pm
Forum: Investing - Help with Personal Investments
Topic: 401k->roth now overfunded
Replies: 3
Views: 458

Re: 401k->roth now overfunded

No, that will not work because conversion income is not included in your modified AGI for regular Roth IRA contribution purposes. Recharacterization would reduce your taxes for 2017, but would not change your permitted Roth contribution. Further, if you conversion still has gains you would be transf...
by Alan S.
Sat Feb 10, 2018 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Accidental Rollover of after tax contributions to a traditional IRA
Replies: 29
Views: 1524

Re: Accidental Rollover of after tax contributions to a traditional IRA

Again, the reason I think you asked this relates to using the Rev Procedure to roll the shares into your IRA. If so, you should transfer the amount you removed from the brokerage account back into it, and then roll the entire brokerage balance into your IRA.

But perhaps you asked for another reason?
by Alan S.
Sat Feb 10, 2018 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: overcontributed into my 401k....
Replies: 2
Views: 428

Re: overcontributed into my 401k....

No need to contact the administrator to have the penny returned, or for any other reason. Per IRS rounding rules, the .01 will be added to your line 7 wages. Rounding only applies to the total that goes on a line in a return. So there is a 1 in 100 chance that your W-2 wages ends in .49, in which ca...
by Alan S.
Sat Feb 10, 2018 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Recharacterization? (I made a mistake)
Replies: 4
Views: 304

Re: IRA Recharacterization? (I made a mistake)

May not be worth it for a loss on a small contribution, but when there is a significant enough loss then return of the contribution and re-contribution will help boost your Roth balance and avoid a known Roth loss. With a loss there are no earnings to be taxed and penalized because you receive less ...