Search found 6900 matches

by Alan S.
Mon Nov 20, 2017 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?
Replies: 15
Views: 799

Re: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?

Hi Mark, I agree that 0 is more specific and likely preferable to a blank. However, the 1099R Inst are typically specific about Box 2a showing either 0 or left blank. It is odd that the applicable paragraph in the 1099R Inst. states this: For a distribution of contributions plus earnings from an IRA...
by Alan S.
Mon Nov 20, 2017 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?
Replies: 15
Views: 799

Re: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?

So, do NOT file an 8606 in this situation. Seems to me a CORRECTED 2014 Form 8606 will have to be filed since an incorrect one has already been sent to the IRS. Yes, if a 2014 8606 was filed in error it needs to be corrected showing no entry for contributions UNLESS it is very clear that the IRS di...
by Alan S.
Sun Nov 19, 2017 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: RMD and taxes
Replies: 16
Views: 1675

Re: RMD and taxes

Alan S wrote: Taking withholding from your RMD distributions will usually eliminate the need to pay estimates. The withheld amount must meet one of the safe harbors, such as 100% of your prior year tax liability. Of course, this depends on the size of your IRA in relation to the amount of taxes you...
by Alan S.
Sun Nov 19, 2017 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: Missed deadline to re-characterize my IRA
Replies: 1
Views: 160

Re: Missed deadline to re-characterize my IRA

There have been some private letter ruling exceptions, but unless the situation is unusual and this is a large conversion there is no sense spending the money for a PLR. You may as well amend your return to report the full conversion if this was a conversion contribution. Perhaps in the long run, th...
by Alan S.
Sun Nov 19, 2017 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: RMD and taxes
Replies: 16
Views: 1675

Re: RMD and taxes

Taking withholding from your RMD distributions will usually eliminate the need to pay estimates. The withheld amount must meet one of the safe harbors, such as 100% of your prior year tax liability. Of course, this depends on the size of your IRA in relation to the amount of taxes you must pay. If y...
by Alan S.
Sun Nov 19, 2017 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Taking a 72(t) to avoid self-employment taxes?
Replies: 10
Views: 646

Re: Taking a 72(t) to avoid self-employment taxes?

Other possible pitfalls: 1) She does not continue at this church for whatever reason, including health issues, a move to another state, etc. 2) The 72t plan is busted either due to a faulty initial calculation or an error in executing the plan. A busted 72t plan results in retroactive penalties back...
by Alan S.
Sun Nov 19, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?
Replies: 15
Views: 799

Re: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?

Thank you all for chiming in! This has been very insightful. @Alan S The 1099R is coded correctly, and I assume Box 2a is blank, and "taxable amount not determined" box is NOT checked. Box 2a is blank, BUT "taxable amount not determined" box IS checked. I wonder if the custodian always checks that ...
by Alan S.
Sat Nov 18, 2017 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Part B premium unchanged for 2018
Replies: 36
Views: 2710

Re: Medicare Part B premium unchanged for 2018

It's the low COLAs that drive up the basic premiums in the first place, because the far fewer Medicare beneficiaries that are NOT protected by the HH must make up for the aggregate premiums lost to the HH. I would guess that the effect of multiple low or 0 COLA years cannot be offset by one or even ...
by Alan S.
Sat Nov 18, 2017 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?
Replies: 15
Views: 799

Re: Return of IRA contribution performed early in year, amend 1040 that year or the prior year?

The 8606 Inst do not help much since none of the examples illustrate a contribution made in the Jan-4/15 period for the PRIOR year. The 1099R is coded correctly, and I assume Box 2a is blank, and "taxable amount not determined" box is NOT checked. You would report this 1099R solely on your 2015 retu...
by Alan S.
Sat Nov 18, 2017 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Part B premium unchanged for 2018
Replies: 36
Views: 2710

Re: Medicare Part B premium unchanged for 2018

Just the type of news (mostly perceived as negative) that is released on Friday, probably Friday afternoon. Some people understood that the hold harmless would not save them for 2018 due to the 2% increase, but thought that the standard Part B premium might come down a few bucks because so many more...
by Alan S.
Sat Nov 18, 2017 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Roth transfer: Wait for December distributions?
Replies: 11
Views: 898

Re: Roth transfer: Wait for December distributions?

I'm new to bogleheads.org, and thank everyone in advance for help on this subject and future ones. I have a long-held Roth (about 10 years, 40k) which I want to transfer to Vanguard. I'm a little uncertain if I should do this now or wait until LT and ST capital gains, and dividends, are distributed...
by Alan S.
Fri Nov 17, 2017 9:42 pm
Forum: Investing - Help with Personal Investments
Topic: RMD account
Replies: 16
Views: 1274

Re: RMD account

Yes, you can transfer shares into a taxable brokerage account whether the distribution is for an RMD or not. But the tax impact is the same. You might save a little from avoiding commissions to sell and re purchase in taxable. The cost basis in taxable is also the same when you eventually sell those...
by Alan S.
Thu Nov 16, 2017 9:16 pm
Forum: Investing - Help with Personal Investments
Topic: RMD's when changing broker?
Replies: 5
Views: 330

Re: RMD's when changing broker?

I have opened a new IRA at Merrill Edge, but have not moved assets from TDA. I must take my first RMD before 12/31/17. If I roll over first, how will ME know how much to take out based on 12/31/16 balance? (I do know the amount required.) Advice? You probably SHOULD take out your first RMD by 12/31...
by Alan S.
Wed Nov 15, 2017 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Form 5498 or 1099R (IRA to Roth Conversion)
Replies: 40
Views: 1776

Re: Form 5498 or 1099R (IRA to Roth Conversion)

Just curious - the IRS antiquated computer systems do whatever matching is done and it takes several months. If a mismatch is identified, is the CP 2000 automated or does an IRS staffer review the mismatches before the CP 2000 is mailed? Or perhaps some of each?
by Alan S.
Wed Nov 15, 2017 11:41 am
Forum: Investing - Help with Personal Investments
Topic: In-plan roth conversion and NUA
Replies: 2
Views: 241

Re: In-plan roth conversion and NUA

Any IRRs you do prior to separation or 59.5 will not impair your ability to utilize NUA on other employer shares in the pre tax portion of your plan. You need to have a triggering event to do the qualified lump sum distribution needed to utilize NUA. Triggering events in your lifetime are separation...
by Alan S.
Mon Nov 13, 2017 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: Joint Account Question
Replies: 4
Views: 562

Re: Joint Account Question

I was a joint account holder on my mothers checking account for several years. She wanted to add me in case any expenses needed to be paid in case she was unable. She gave me a blank check to hold on to so that I knew the account name and number. When she passed I was grateful to have access to pay...
by Alan S.
Mon Nov 13, 2017 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: 401k after-tax contributions and a Vanguard Roth IRA rollover
Replies: 12
Views: 1185

Re: 401k after-tax contributions and a Vanguard Roth IRA rollover

I fully agree with the conclusions you collectively have reached. Many people and even their plan administrators rolled the dice prior to 2014 and their gamble was rewarded by 2014-54. There were various methods of "isolating basis" prior to the Notice, but the simplest one at that time was to do a ...
by Alan S.
Sun Nov 12, 2017 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Form 5498 or 1099R (IRA to Roth Conversion)
Replies: 40
Views: 1776

Re: Form 5498 or 1099R (IRA to Roth Conversion)

The 1099R is not delayed, only the 5498. And all custodians file their 5498 in May, not just Vanguard. That gives them about a month to determine the IRA regular contributions up to the tax deadline, usually around 4/17. You report your contributions as usual based on what you have contributed for t...
by Alan S.
Sat Nov 11, 2017 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Rollover 1 per year rule
Replies: 14
Views: 1039

Re: IRA Rollover 1 per year rule

A direct rollover involving an IRA is limited to a distribution rolled into a qualified employer plan OR from a qualified plan to an IRA. There are no "direct rollovers" between IRA accounts. All direct rollovers are coded either G or H and there is a qualified plan on one end of the transaction. Si...
by Alan S.
Sat Nov 11, 2017 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Mega backdoor Roth - do both employer contributions and matching count toward the annual limit?
Replies: 5
Views: 449

Re: Mega backdoor Roth - do both employer contributions and matching count toward the annual limit?

It's inexplicable, but the IRS link for the Sec 415c limit (described as "Overall limit for contributions" omits EMPLOYEE CONTRIBUTIONS. This is incorrect since these after tax employee contributions are included. From Sec 415(c): (2)Annual addition For purposes of paragraph (1), the term “annual ad...
by Alan S.
Fri Nov 10, 2017 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: NUA (Net Unrealized Appreciation) and Tax Returns
Replies: 9
Views: 489

Re: NUA (Net Unrealized Appreciation) and Tax Returns

As long as the 1099R is correct, there isn't much to reporting the actual distribution on line 16 of Form 1040. The NUA does not go on that tax return, but you would still enter the entire 1099R into your tax program. But beware of starting the LSD process late in the year. If there are any trailing...
by Alan S.
Thu Nov 09, 2017 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Help with proper steps to Roll 401k After-tax to Roth rest to new Employers 401k
Replies: 4
Views: 371

Re: Help with proper steps to Roll 401k After-tax to Roth rest to new Employers 401k

Hi, I searched and cannot find the exact answer to this question, which I hope will seem simple to some of you. My wife has a 401k with both pre-tax and after-tax balances held in an ex-employers plan (Hewitt). As I understand it, I should be able to convert the after-tax to Roth (Existing Vanguard...
by Alan S.
Thu Nov 09, 2017 6:50 pm
Forum: Investing - Help with Personal Investments
Topic: Mega Backdoor questions
Replies: 31
Views: 1910

Re: Mega Backdoor questions

Remember, if your rollovers from the after tax account are limited or delayed and gains have accumulated in the sub account, you can still use Notice 2014-54 to do a split rollover (contribution to Roth IRA, gains to TIRA), and there will be no current taxes. But if you are also doing a regular back...
by Alan S.
Tue Nov 07, 2017 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: Okay to paint exterior brick?
Replies: 34
Views: 1770

Re: Okay to paint exterior brick?

Beware of the hazards of efflorescence when painting brick.
by Alan S.
Tue Nov 07, 2017 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Does an Traditional IRA contribution lose its deductibility if converted to a ROTH IRA?
Replies: 12
Views: 764

Re: Does an Traditional IRA contribution lose its deductibility if converted to a ROTH IRA?

There are some other implications of the choice to deduct the contribution or not, assuming you are eligible to deduct it. In most cases it is basically a wash, however: 1) A non deductible contribution will result in the conversion being non taxable except for gains, and that means it could be dist...
by Alan S.
Tue Nov 07, 2017 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: Can an HSA Rollover be "Too Early?"
Replies: 2
Views: 303

Re: Can an HSA Rollover be "Too Early?"

A rollover can only FOLLOW a distribution. Otherwise, you could carry two HSA balances for an undetermined amount of time.
by Alan S.
Tue Nov 07, 2017 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity RMD
Replies: 2
Views: 319

Re: Annuity RMD

Yes, as long as the IRA annuity has not been annuitized.

Once it is annuitized the annual distributions are deemed to be 100% RMDs for the annuity, so none of it can be applied to the other non annuity IRA.
by Alan S.
Tue Nov 07, 2017 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: MBR Prep: Roth Conversion or 401k Reverse Rollover?
Replies: 2
Views: 135

Re: MBR Prep: Roth Conversion or 401k Reverse Rollover?

You do not have to do anything for a mega back door Roth because you will be rolling directly from the 401k to your Roth IRA. At no time do the funds pass through a TIRA account. Therefore Form 8606 does not apply and neither does pro rating. Of course, if your after tax contributions generate a sma...
by Alan S.
Tue Nov 07, 2017 11:19 am
Forum: Investing - Help with Personal Investments
Topic: Should I Move My Rollover IRA to my 401(k)
Replies: 9
Views: 770

Re: Should I Move My Rollover IRA to my 401(k)

Thanks .. Out of 4 points listed, I can confirm only 1 point. I am from Texas, how does it rank with creditor protection? Does the rollover IRA gets in the way of Mega Backdoor Roth? I just recently move monies from within 401 (K) from after tax (410) K to Roth (401)K. I was not interested in movin...
by Alan S.
Tue Nov 07, 2017 11:02 am
Forum: Investing - Help with Personal Investments
Topic: Change withdrawal pattern from inherited IRA?
Replies: 3
Views: 237

Re: Change withdrawal pattern from inherited IRA?

Yes, you can exceed the RMD for any year you wish. Many people with small inherited IRAs with a small RMD that are NOT maxing out their own retirement plans will drain the inherited IRA faster and use the distribution to subsidize increased contributions to their OWNED retirement plans. For a pre ta...
by Alan S.
Tue Nov 07, 2017 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Who would pay the inherited IRA penalty?
Replies: 13
Views: 1036

Re: Who would pay the inherited IRA penalty?

Therefore, if you are a beneficiary and create your OWN separate inherited IRA by the deadline (end of year following year of death) and have taken your share of the year of death RMD by that time (filed 5329 if late), you can totally forget about what the other beneficiaries do or don't do. The IR...
by Alan S.
Mon Nov 06, 2017 11:57 pm
Forum: Investing - Help with Personal Investments
Topic: How Can I Return Withdrawn ROTH IRA Contributions After 60 Days?
Replies: 5
Views: 494

Re: How Can I Return Withdrawn ROTH IRA Contributions After 60 Days?

Hi and thanks for the response, Alan. Unfortunately, I just self served online and took a $5500 distribution. I thought the system was smart enough to know that I was simply removing my same year contribution, but I guess not. Also, I indicated in my original post that there was no earnings. I gues...
by Alan S.
Mon Nov 06, 2017 11:34 pm
Forum: Personal Finance (Not Investing)
Topic: Wells Fargo the Custodian of Amex Employees 410k gave wrong advise now blaming me!
Replies: 12
Views: 2071

Re: Wells Fargo the Custodian of Amex Employees 410k gave wrong advise now blaming me!

It could easily have been overlooked that an IRR would not be considered an intervening distribution for NUA LSD purposes since an IRR is strictly an internal change of balances within the plan. However, Notice 2010-84 https://www.irs.gov/pub/irs-drop/n-10-84.pdf Q 3 did list 4 exceptions for which ...
by Alan S.
Mon Nov 06, 2017 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: Who would pay the inherited IRA penalty?
Replies: 13
Views: 1036

Re: Who would pay the inherited IRA penalty?

The year of death RMD can be satisfied in any combination between the beneficiaries. Often, one beneficiary needs that money and others would rather have their share grow tax deferred. It is simpler though to pro rate the year of death RMD. The IRS does NOT care whether the year of death RMD is dist...
by Alan S.
Mon Nov 06, 2017 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Multiple direct 401(k) rollovers in same calendar year?
Replies: 8
Views: 527

Re: Multiple direct 401(k) rollovers in same calendar year?

While similar to transfers, these are technically direct rollovers. A direct rollover is a two part transaction - a distribution and a rollover. The rollover term refers to the fact these are reportable as rollovers on Form 1099R and line 16 of Form 1040. The "direct" refers to the transfer componen...
by Alan S.
Mon Nov 06, 2017 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: How Can I Return Withdrawn ROTH IRA Contributions After 60 Days?
Replies: 5
Views: 494

Re: How Can I Return Withdrawn ROTH IRA Contributions After 60 Days?

I don't know if Vanguard's advice contemplates use of the waiver procedures in the following Rev Procedure or not. Review this and see if there is any justification for using the self certification process described: https://www.irs.gov/pub/irs-drop/rp-16-47.pdf With respect to your distribution, di...
by Alan S.
Mon Nov 06, 2017 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Should I Move My Rollover IRA to my 401(k)
Replies: 9
Views: 770

Re: Should I Move My Rollover IRA to my 401(k)

Some other potential benefits of rolling contributory or rollover IRA funds into your 401k: 1) You live in a state with poor IRA creditor protection, and want to have the entire amount ERISA protected 2) You will need penalty free distributions under the age 55 separation provisions, and wish to avo...
by Alan S.
Sun Nov 05, 2017 10:56 pm
Forum: Investing - Theory, News & General
Topic: consolidating 401ks?
Replies: 1
Views: 289

Re: consolidating 401ks?

Since the corporate 401k balance is high (eg 6 figures), I wouldn't roll it into the solo K. The reason is that while a solo K is fully protected in bankruptcy, it is not an ERISA plan and therefore your creditor protection for the account outside of BK is based on state law. You probably do not kno...
by Alan S.
Sun Nov 05, 2017 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Charitable Contribution from IRA
Replies: 3
Views: 239

Re: Charitable Contribution from IRA

If you have basis in your IRA (Form 8606), then the QCD reporting becomes more complex because the QCD comes out of your pre tax dollars first. That means that you would not report the QCD amount as part of your distribution on Form 8606. The 8606 will then calculate the taxable amount of the non QC...
by Alan S.
Sat Nov 04, 2017 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: I can take $15k out of my trad IRA with no taxes - should I?
Replies: 37
Views: 3291

Re: I can take $15k out of my trad IRA with no taxes - should I?

If you take a close look at Form 2210 - Sch AI you probably will cringe if you have never done this before. Or if you have done it before, you may swear to never repeat the experience. What you can do is request a TIRA distribution sent to you and elect enough withheld to meet a safe harbor. Endorse...
by Alan S.
Fri Nov 03, 2017 11:18 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA to Vanguard 401k question [resolved]
Replies: 9
Views: 667

Re: Traditional IRA to Vanguard 401k question [resolved]

I cannot connect the dots on this situation. Is the IRA you are rolling over yours, or your spouse's? In most cases, an IRA can only be rolled into an accepting employer plan of the current employer, and that plan must be for the same spouse that owns the IRA to be rolled over. Eventually, it was ro...
by Alan S.
Thu Nov 02, 2017 11:04 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Rollover to Existing Roth IRA
Replies: 7
Views: 640

Re: Roth IRA Rollover to Existing Roth IRA

I am 63 years old and getting a check from a Roth IRA, where they deducted money taken out for taxes on the earnings from the account, which was only 2 years old. The Roth IRA was $27,000 and $400 was taken out in taxes; I will receive a check for $26,600. I want to roll over the money into an exis...
by Alan S.
Wed Nov 01, 2017 1:40 pm
Forum: Investing - Theory, News & General
Topic: Bogle on Vanguard's Asset Level
Replies: 5
Views: 673

Bogle on Vanguard's Asset Level

More than just the current service issues and some of the technical issues Bogle cites, there are a variety of new challenges that will arise as assets under management continue to grow into uncharted territory. A worthwhile question therefore is why is Vanguard continuing to spend a huge amount on ...
by Alan S.
Wed Nov 01, 2017 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: First RMD withdrawal - Now or next year?
Replies: 11
Views: 903

Re: First RMD withdrawal - Now or next year?

If you defer your 2017 RMD to 2018, not only will you have both year's RMDs taxable in 2018, but your 2018 RMD will also be about 3.8% higher than it would have been otherwise. This is due to not reducing your 12/31/2017 balance by not having distributed the 2017 RMD by then. That said, by doing som...
by Alan S.
Tue Oct 31, 2017 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Help recharacterizing an IRA contribution with loss
Replies: 7
Views: 461

Re: Help recharacterizing an IRA contribution with loss

............................................... BTW, I pinged a tax expert and his recommendation was to create the amended return for my own records (for tracking basis, in case of audit, etc) but not to submit it to the IRS. They apparently get grumpy about amended returns that don't change the a...
by Alan S.
Tue Oct 31, 2017 10:03 pm
Forum: Investing - Help with Personal Investments
Topic: Mom's 403b and Required Minimum Distribution(RMD)
Replies: 9
Views: 672

Re: Mom's 403b and Required Minimum Distribution(RMD)

Note that if your Mom had a 403b balance on 12/31/86 that is accounted for by the plan, RMDs on that balance do not begin until age 75. Her plan statement may break out that balance.
by Alan S.
Sun Oct 29, 2017 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Excess Roth IRA contribution for 2014
Replies: 2
Views: 170

Re: Excess Roth IRA contribution for 2014

You have to download the respective year's edition of Form 5329, complete them in chronological order and send them to the IRS. You will owe $60 with the 2014 5329 and another $60 for 2015. The 2016 form will apply the excess as a 2016 contribution and there is no additional tax due. This all assume...
by Alan S.
Sun Oct 29, 2017 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: RMD and Roth Conversion.
Replies: 5
Views: 432

Re: RMD and Roth Conversion.

The RMD (for that particular IRA account) must be completed before or at the same time as the conversion because the first distribution in an RMD distribution year is deemed to apply to the RMD. If you convert your RMD for a particular account you create an excess contribution to your Roth IRA, but ...
by Alan S.
Sun Oct 29, 2017 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Skipping a SEP IRA year and contributing to IRA instead
Replies: 3
Views: 258

Re: Skipping a SEP IRA year and contributing to IRA instead

Could be he does not want to contribute to employee SEPs, which is required if he makes a contribution for himself.
by Alan S.
Sun Oct 29, 2017 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: 15 months for ROTH IRA
Replies: 6
Views: 561

Re: 15 months for ROTH IRA

Even if you are not using monthly contributions, ANY contribution you made from Jan through 4/15 can be assigned to either the current year or the prior tax year. Therefore, you need to check at the time these contributions are recorded to be sure they are assigned to the correct year. If an error o...