Search found 8640 matches

by Alan S.
Thu Nov 14, 2019 10:58 am
Forum: Personal Investments
Topic: IRA to 401K Roll In Rules, 60 Days, Vanguard Screw Ups
Replies: 12
Views: 443

Re: IRA to 401K Roll In Rules, 60 Days, Vanguard Screw Ups

I've been trying to get a rollover check from Vanguard and it's been nearly 6 weeks since I started. If I can't finish the roll in to Fidelity by the 60 day deadline because of this, can I sue Vanguard for restitution? They have sent checks to the wrong address multiple times and sent me a check ma...
by Alan S.
Tue Nov 12, 2019 2:27 pm
Forum: Personal Investments
Topic: Roth IRA Rollover
Replies: 18
Views: 625

Re: Roth IRA Rollover

This is a dumb question but never done this before and just want to make sure I'm not missing anything. I recently moved my Roth IRA to Merrill to grab a bonus and get Preferred Rewards for my credit card. Previous custodian has a $50 transfer-out fee for full account, so I left behind $500. I thou...
by Alan S.
Mon Nov 11, 2019 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Excess after tax 401K contributions - Need help with the next steps
Replies: 4
Views: 286

Re: Excess after tax 401K contributions - Need help with the next steps

You could ask the plan to distribute the annual additions (Sec 415c) excess now with allocated earnings. The following is from the EPCRS corrective measures provision in Rev Proc 2018-52: If an Excess Allocation resulting from a violation of § 415 consists of annual additions attributable to both em...
by Alan S.
Mon Nov 11, 2019 3:31 pm
Forum: Personal Investments
Topic: IRA Distribution and 403b contribution same year
Replies: 4
Views: 182

Re: IRA Distribution and 403b contribution same year

To receive the matching 403b contribution, your 403 contributions will be pre tax, but that benefit will be offset to the extent of your taxable IRA distributions. It will be worth it since the match will leave you ahead. Possible consequences of doing this: 1) If you qualify for the savers credit, ...
by Alan S.
Sun Nov 10, 2019 12:49 pm
Forum: Personal Investments
Topic: recharacterization of roth ira
Replies: 3
Views: 270

Re: recharacterization of roth ira

Mistakenly, I contributed directly to my Roth IRA rather than to my traditional and then completing a backdoor conversion. I contacted vanguard to recharacterize the IRA and in the process they took out much more than I originally contributed to the account ($3650 when I had contributed $3500). The...
by Alan S.
Sat Nov 09, 2019 6:22 pm
Forum: Investing - Theory, News & General
Topic: Non-deductible IRA and rolling into 401(K)
Replies: 4
Views: 327

Re: Non-deductible IRA and rolling into 401(K)

There is special reporting in one sense. Both Pub 590 A and the Form 1040 Inst. state that when you roll an IRA distribution into a qualified plan you must include an explanatory statement with your tax return. The reason for this statement is that qualified plans do NOT report rollover contribution...
by Alan S.
Thu Nov 07, 2019 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Roth 401k Withdrawal Rules
Replies: 11
Views: 542

Re: Roth 401k Withdrawal Rules

Even if you could withdraw from your Roth 401 possibly due to separating from service, a Roth 401k distribution includes a pro rated amount of earnings which would be taxed. There would also be a 10% penalty on the earnings because there is no "first homebuyer" penalty exception for any 401k distrib...
by Alan S.
Tue Nov 05, 2019 11:36 pm
Forum: Personal Investments
Topic: 403b to a Rollover IRA or Roth IRA
Replies: 10
Views: 528

Re: 403b to a Rollover IRA or Roth IRA

This is my wife's retirement so I don't want to make the wrong choices for her. But she worked part time for a hospital and earned 18K in a 403b. She no longer works there and is now self employed basically, and may never have an employer 401k retirement plan again. I want to move her 18k from the ...
by Alan S.
Tue Nov 05, 2019 2:11 pm
Forum: Personal Investments
Topic: (Vanguard) How to move contributions for the year from Roth IRA to IRA?
Replies: 3
Views: 376

Re: (Vanguard) How to move contributions for the year from Roth IRA to IRA?

Remember that if you have good gains on your Roth contribution, recharacterizing that contribution as a TIRA contribution takes those potentially tax free gains (once your Roth is qualified) and moves them to a TIRA where they will eventually be taxed. You would get your deduction this year assuming...
by Alan S.
Tue Nov 05, 2019 1:43 pm
Forum: Personal Investments
Topic: Excess contribution to Roth
Replies: 12
Views: 673

Re: Excess contribution to Roth

See my additional comments in my prior post regarding the earnings. I just edited that post to add that paragraph. As for the recent removal, VG decided that you were asking for a return of your (excess) contribution and proceeded accordingly or you would not have received earnings as well. Therefor...
by Alan S.
Tue Nov 05, 2019 1:23 pm
Forum: Personal Investments
Topic: Excess contribution to Roth
Replies: 12
Views: 673

Re: Excess contribution to Roth

Yes, that's what I'm doing. Of course, the first time in my life I need to contact Vanguard they have just taken away the dedicated flagship representative... Can you guys confirm that after maxing out yearly contributions ($5,600 to tIRA and $1,400 to Roth) withdrawing $1,400 from the Roth DOES NO...
by Alan S.
Thu Oct 31, 2019 11:06 pm
Forum: Investing - Theory, News & General
Topic: Placing a variable annuity in a living trust?
Replies: 7
Views: 617

Re: Placing a variable annuity in a living trust?

Be aware that when a trust owns an annuity, if a "non natural person" eg a charity becomes the remainder or other beneficiary, the annuity will lose it's tax deferred status. Therefore, she should be careful when changing the beneficiaries of the trust. See attached article by Michael Kitces: https:...
by Alan S.
Thu Oct 31, 2019 9:53 pm
Forum: Personal Finance (Not Investing)
Topic: 401k Rollover for Down Payment
Replies: 4
Views: 358

Re: 401k Rollover for Down Payment

Thank you so much for this thorough reply! I think I understand everything you wrote, except if it is possible to withdraw more than 10,000 from funds which were rolled over from a 401k to Roth Ira after 5 years. Can you clarify? If I understood you correctly, money can be withdrawn up to contribut...
by Alan S.
Thu Oct 31, 2019 9:35 pm
Forum: Personal Investments
Topic: ROTH Conversion question
Replies: 24
Views: 1553

Re: ROTH Conversion question

You may want to try one or both of these tools to help with RMD decisions. Retiree Portfolio Model i-orp extended I'm completely overwhelmed by RPM - I-Orp is more approachable. And when I use that, it seems to indicate front loading Roth conversions, instead of spreading them out over many years. ...
by Alan S.
Thu Oct 31, 2019 5:08 pm
Forum: Personal Investments
Topic: Quick RMD Question
Replies: 14
Views: 1731

Re: Quick RMD Question

12/31/2023 One reason you might want to delay your first RMD into 2025 (thus requiring 2 RMDs in 2025) would be if you’re doing a Roth conversion in 2024. This will not work. A conversion is a distribution and the first distribution in an RMD distribution year is deemed to apply to the RMD. Therefo...
by Alan S.
Thu Oct 31, 2019 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: Mistakenly Contributed to tIRA, When I Intended Roth IRA. Reversible?
Replies: 19
Views: 1490

Re: Mistakenly Contributed to tIRA, When I Intended Roth IRA. Reversible?

If you recharacterize the TIRA contribution as a Roth contribution, be sure your income (MAGI) is not too high to qualify for the Roth contribution. If you complete the recharacterization, then get a bonus or otherwise your MAGI is too high at year end, you cannot reverse the recharacterization by r...
by Alan S.
Thu Oct 31, 2019 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: 401k Rollover for Down Payment
Replies: 4
Views: 358

Re: 401k Rollover for Down Payment

Bogleheads, Thank you in advance. I am trying to research the notion of leveraging a 401k (non-Roth) for down payment funds. Specifically, I am trying to understand if a Rollover to a Roth Ira could avoid the 10%, penalty. If you roll a 401k to a Roth IRA: 1. Is the deposit into Roth IRA considered...
by Alan S.
Wed Oct 30, 2019 5:13 pm
Forum: Personal Investments
Topic: RMD Question from Inherited Roth
Replies: 10
Views: 731

Re: RMD Question from Inherited Roth

Since your inherited Roth IRA is qualified (having met the 5 year holding requirement between the decedent and yourself) all distributions are tax free. Even better, even though any distributions would likely have been non taxable since the account WOULD HAVE become qualified before you reached any ...
by Alan S.
Mon Oct 28, 2019 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Quick, Efficient Way to Make a QCD from a Vanguard IRA when 70.5
Replies: 30
Views: 4107

Re: Quick, Efficient Way to Make a QCD from a Vanguard IRA when 70.5

cjonblanchard, Thank you for providing the QCD instructions in your 3/17/18 post. By following them, I just made six 2019 QCDs, all online without requiring telephone assistance in about 15 minutes! QCDs are a great way to make donations once one can no longer itemize deductions. QCDs are preferabl...
by Alan S.
Sun Oct 27, 2019 11:46 pm
Forum: Personal Finance (Not Investing)
Topic: Convert traditional TSP to Roth IRA
Replies: 2
Views: 359

Re: Convert traditional TSP to Roth IRA

I retired on 12/31/18 under FERS at 59. My wife retired in 2014 under CSRS. I’m thinking about moving some of my TSP to a Roth IRA. Just a few questions at this point. 1. Can I convert directly from my TSP to a Vanguard Roth IRA? 2. Are there any quick/easy calculators that would help me determine ...
by Alan S.
Sat Oct 26, 2019 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: RMDs on inherited IRA?
Replies: 5
Views: 435

Re: RMDs on inherited IRA?

Comparison of the two options: 1) Keep it as inherited. As the sole beneficiary you are not subject to beneficiary RMDs until the year your husband would have reached 70.5. Further, if you were to pass before the end of that year, your own beneficiary would be treated as a designated beneficiary. Th...
by Alan S.
Sat Oct 26, 2019 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Where and how to report excess 401k contribution on tax Return?
Replies: 5
Views: 352

Re: Where and how to report excess 401k contribution on tax Return?

Hmmm, I’m reading it differently than you. I’m reading it as “if you want the excess returned, then you must notify the employer by a certain date.” Also, my deferrals are between two unrelated companies/plans, such that neither plan individually would fail compliance testing of nothing was done. W...
by Alan S.
Sat Oct 26, 2019 11:45 am
Forum: Personal Investments
Topic: Mega-backdoor Roth Has Gains and Losses
Replies: 21
Views: 1305

Re: Mega-backdoor Roth Has Gains and Losses

Alan S said that some plans may not carry the loss over if you empty the after-tax account. I am interpreting that to mean, if you do leave a few dollars behind in the after-tax account, the plan can be forced to keep track of accounting (amount in and amount out). May be my interpretation is wrong...
by Alan S.
Fri Oct 25, 2019 7:21 pm
Forum: Personal Investments
Topic: Mega-backdoor Roth Has Gains and Losses
Replies: 21
Views: 1305

Re: Mega-backdoor Roth Has Gains and Losses

@simas, The original poster said he's limited to rolling over to in-plan Roth 401k account only once an year, and wonders what happens. Let's take a completely-made up scenario of: - after-tax contribution into VTSAX = $4000 - after-tax contribution into VTIAX = $2000 - Now it's December 2019, and ...
by Alan S.
Fri Oct 25, 2019 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: 401k rollover to personal IRA
Replies: 5
Views: 432

Re: 401k rollover to personal IRA

Wife and I have a solo 401k we won't be funding anymore since I retired July 1. Are there any drawbacks to rolling it into personal IRA accounts? Main motivation is to avoid the yearly $320 fee charged by our sponsor (Ubiquity); we won't be doing backdoor Roth conversions. Logistics through Schwab ...
by Alan S.
Thu Oct 24, 2019 10:54 pm
Forum: Personal Finance (Not Investing)
Topic: If I replace an tIRA deduction in 60 days, does that count as my contribution for the year?
Replies: 6
Views: 348

Re: If I replace an tIRA deduction in 60 days, does that count as my contribution for the year?

Good point. In fact, because the 6000 happens to be the exact regular IRA contribution max, there would probably be less risk of the custodian miscoding the rollover if you distributed 6100 or some other figure than 6000 on the nose. As for withholding, if you do not plan to be seriously underwithhe...
by Alan S.
Thu Oct 24, 2019 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: 401k rollover to Roth after 70...
Replies: 5
Views: 254

Re: 401k rollover to Roth after 70...

I mentioned the five year rule. He does not think it applies as he will be over 70. I see nothing written that backs that up. Does anyone know if he is correct? Figure 2-1 in publication 590B seems to disagree. Side note, under current law, you can't directly contribute to a Roth IRA post age 70 (n...
by Alan S.
Wed Oct 23, 2019 11:43 am
Forum: Personal Investments
Topic: RMD's For Multiple Types of Accounts
Replies: 10
Views: 1041

Re: RMD's For Multiple Types of Accounts

OP apparently turns 70.5 in 2021. To actually reduce RMDs for any year OP would have to work at least until Jan, 2022. The 401k RMD for 2021 would be avoided. And if the IRA was rolled into the 401k no later than 12/31/2020, the IRA RMD for 2021 would also be avoided. So without a change in the prop...
by Alan S.
Tue Oct 22, 2019 9:39 pm
Forum: Personal Investments
Topic: Non Deductible IRA Contribution Question
Replies: 24
Views: 771

Re: Non Deductible IRA Contribution Question

As noted, since you can file retroactive 8606 for each year you made a ND contribution, and can do so without an amended return, with some research it should be fairly easy to document your IRA basis with the IRS. When this becomes a mess is when you have also taken distributions from your TIRA acco...
by Alan S.
Tue Oct 22, 2019 9:29 pm
Forum: Personal Investments
Topic: QCDs in first year of RMDs
Replies: 10
Views: 855

Re: QCDs in first year of RMDs

GerryL & Sport: Of course, you are both correct. QCDs are RMDs, and what I want to do will result in two RMDs in 2020. I made my question unnecessarily complicated by including the fact that I am mostly meeting the RMD requirement through QCDs. QCDs actually have nothing to do with the question. Th...
by Alan S.
Mon Oct 21, 2019 11:22 pm
Forum: Investing - Theory, News & General
Topic: Timing of Rollover
Replies: 2
Views: 498

Re: Timing of Rollover

I have a large CD expiring late Dec. Too late for a direct transfer-so I'll take distribution and rollover in Jan. I realize, I have 60 days to complete. How do I handle the 2019 tax return that will show 1099R. Can I still show 0 in line 4 B since I'll have rollover prior to filing tax return? I'm...
by Alan S.
Mon Oct 21, 2019 11:05 pm
Forum: Personal Investments
Topic: Changing 2019 Traditional IRA Contributions to Roth IRA Contributions
Replies: 8
Views: 481

Re: Changing 2019 Traditional IRA Contributions to Roth IRA Contributions

Thanks for your time. I had already read the wiki I just assumed there was a way to re-characterize this years contributions online and I couldn't find how to do it. Didn't even think of calling to ask. My bad. Thanks again for your answer. Before you recharacterize, be sure that your modified AGI ...
by Alan S.
Sat Oct 19, 2019 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question - RMD on Inherited IRA
Replies: 16
Views: 1162

Re: Tax Question - RMD on Inherited IRA

Correct. But it also may just so happen that one Sib needs all the cash and wants to cash out his/her inheritance. If so, that becomes the RMD for everyone. (An alternative it take out the RMD against mom's last income return, but then the RMD would have to be pulled out before the balance is distr...
by Alan S.
Sat Oct 19, 2019 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question - RMD on Inherited IRA
Replies: 16
Views: 1162

Re: Tax Question - RMD on Inherited IRA

... if a given beneficiary distributes their 1/7 share, even if certain other beneficiaries fail to act, any beneficiary who withdraws their pro rata share has never been penalized by the IRS for their share of the remaining shortfall. Alan, We know that the IRS never (or almost never) enforces RMD...
by Alan S.
Fri Oct 18, 2019 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question - RMD on Inherited IRA
Replies: 16
Views: 1162

Re: Tax Question - RMD on Inherited IRA

Usually, with as many as 7 beneficiaries there is one that opts for a distribution large enough to satisfy the total year of death RMD. If so, the others need not participate in the year of death RMD. The advisor may know this, but does not want to get into intra family communication as to who will ...
by Alan S.
Thu Oct 17, 2019 10:10 pm
Forum: Personal Investments
Topic: Too Much Company Stock In Old 401k?
Replies: 15
Views: 924

Re: Too Much Company Stock In Old 401k?

Get a cost basis quote on your employer shares for NUA purposes. A very rough ball park analysis is that it should be under 25% of the FMV in most situations where you do not have to sell the shares real soon. You also need to make sure that your lump sum distribution is qualified for NUA purposes. ...
by Alan S.
Thu Oct 17, 2019 9:29 pm
Forum: Personal Investments
Topic: Saver's Tax Credit
Replies: 12
Views: 2423

Re: Saver's Tax Credit

I suspect that automatic line 4 reduction due to reporting various pension income varies with the many tax programs out there. If a program enters a reduction for certain DB plan distributions that are not justified, the override procedures may also vary. But it will be difficult to know what you fa...
by Alan S.
Thu Oct 17, 2019 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion and form 8606
Replies: 12
Views: 774

Re: Roth Conversion and form 8606

With an eye to the future, we are starting to pull some of our traditional (non-taxed) IRA and converting it to a Roth, but the Form 8606 and instructions are a bit confusing. When we do the conversion, we have Vanguard withhold the taxes due. Looks like we don't complete part 1 of the form since w...
by Alan S.
Wed Oct 16, 2019 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Medigap pricing methods
Replies: 5
Views: 974

Re: Medigap pricing methods

It would be very interesting to know how much adverse selection increases Medigap premiums. Obviously, those expecting to need broader access to providers and more complete coverage would gravitate to these plans.
by Alan S.
Wed Oct 16, 2019 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: Switching Roth 401K to Traditional 401K
Replies: 6
Views: 690

Re: Switching Roth 401K to Traditional 401K

Plans vary on how often you are allowed to change your investment direction or contribution amounts to the plan. For example, the broadest options are to do this without limit, other plans may allow one change monthly, quarterly etc. Plans also vary on how many days lead time is required to process ...
by Alan S.
Wed Oct 16, 2019 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Taxation on inherited variable annuity
Replies: 18
Views: 744

Re: Taxation on inherited variable annuity

An inherited NQ annuity is taxed in the same manner as if the annuity owner took distributions, except for an inherited account there would be no early distribution penalty. But in this case OP appears to be over 59.5, so no penalty in any event. There is no basis step up for inherited NQ annuities....
by Alan S.
Wed Oct 16, 2019 10:01 am
Forum: Personal Investments
Topic: can you still buy and sell stocks after the age 70 in an IRA account?
Replies: 5
Views: 783

Re: can you still buy and sell stocks after the age 70 in an IRA account?

I am 74 years old and have been taking RMDs for 4 years I have remaining positions and cash in this traditional IRA account and am wondering whether I can use its existing cash balance to buy stocks in that account Thanks for your help Yes, you can. If you have non cash positions in your TIRA at th...
by Alan S.
Tue Oct 15, 2019 1:48 pm
Forum: Personal Investments
Topic: Can I combine two rollover iras at fidelity into one account?
Replies: 5
Views: 561

Re: Can I combine two rollover iras at fidelity into one account?

I want to do this and then convert it all to Roth? Can this be done quickly and online? No reason not to combine them as they are both rollover IRAs. There could be creditor protection issues if you combine them with a contributory TIRA or into a Roth that also received regular contributions. State...
by Alan S.
Tue Oct 15, 2019 1:34 pm
Forum: Personal Investments
Topic: Question about a rollover strategy
Replies: 6
Views: 451

Re: Question about a rollover strategy

I am about to receive a $200K lump sum pension payout from a prior employer. I am currently a federal employee soon to retire at age 58. (early 2020) I believe my rollover choices are a Traditional IRA or a rollover to my federal employee TSP plan. A benefit of the TSP rollover is low fees and acce...
by Alan S.
Fri Oct 11, 2019 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard keeps pushing their financial advisors...why?
Replies: 93
Views: 7601

Re: Vanguard keeps pushing their financial advisors...why?

Could be it's another way to make money. Brokerages do not make money in the traditional ways any longer. Commissions and ERs are either gone or heavily reduced following a barrage of competitive expense cuts. And brokerages make money in different ways from other brokers. Financial advisors can als...
by Alan S.
Fri Oct 11, 2019 11:21 am
Forum: Personal Investments
Topic: SPIA, RMD and Federal Tax
Replies: 15
Views: 1361

Re: SPIA, RMD and Federal Tax

Don't want to derail the thread but can you buy an SPIA within a Roth IRA and what are the tax consequences then? Yes, you can and the tax implications are simpler: 1) First off, there are no RMDs to be concerned with for a Roth IRA, at least not until it is inherited by a non spouse. 2) Your Roth ...
by Alan S.
Thu Oct 10, 2019 10:12 am
Forum: Personal Investments
Topic: Possibility of reducing MAGI with recharacterization
Replies: 2
Views: 309

Re: Possibility of reducing MAGI with recharacterization

My apologies!! Please disregard the question - I realized this cannot be done - any deduction for an IRA would be added back into income so it would not help to reduce MAGI. Sorry for my confusion, or rather my wishful thinking of ways to reduce modified income. No, that is incorrect. You may be lo...
by Alan S.
Wed Oct 09, 2019 9:26 pm
Forum: Personal Investments
Topic: Individual stock sold in Tax deferred IRA
Replies: 3
Views: 244

Re: Individual stock sold in Tax deferred IRA

Hello everyone. I absolutely love reading the posts on this site, and am truly impressed by the knowledge of the members here. I have a question: If you hold an individual stock in a tax deferred IRA and sell the stock but keep the money in the IRA transferring it into a Vanguard fund, how are the ...
by Alan S.
Wed Oct 09, 2019 9:19 pm
Forum: Personal Investments
Topic: Beneficiary IRA - RMD's
Replies: 11
Views: 1650

Re: Beneficiary IRA - RMD's

While the IRS remains extremely lenient with respect to granting late RMD penalty waivers, I have often wondered how many times they will approve a waiver from the same applicant. At least you would expect them to require a stronger "reasonable cause" if they formerly waived the penalty simply becau...
by Alan S.
Wed Oct 09, 2019 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Savings Rate drops to 1.8%
Replies: 43
Views: 6222

Re: Ally savings rates dropping — again — from 1.90% to 1.80%

When the fed is cutting rates, all yields will eventually come down for all institutions. There is nowhere to hide.: 1) MM funds gradually trickle down, a basis point or two at a time a couple days each week 2) Savings accounts less frequently, perhaps every one or two months, but larger drops to of...