Search found 9645 matches

by Alan S.
Wed Jul 01, 2020 3:56 pm
Forum: Personal Investments
Topic: Inherited IRA RMD/CARES Act strategy question?
Replies: 2
Views: 268

Re: Inherited IRA RMD/CARES Act strategy question?

I took my RMD from an inherited IRA back in February. Ironically as it turned out it was at the near top of the market. I confirmed with Vanguard that I can indeed return the RMD money to the account per recent IRS guidance. I do not need the money to live on and I always invest the RMD (less the t...
by Alan S.
Wed Jul 01, 2020 2:46 pm
Forum: Personal Investments
Topic: CARES Act and Roth IRA withdrawal
Replies: 2
Views: 252

Re: CARES Act and Roth IRA withdrawal

If you wished, you could take a CRD from both your TIRA and Roth IRA. For example, you could only withdraw from your Roth IRA your basis (includes conversions), and that distribution would be non taxable. If you needed more, you could withdraw from your TIRA (taxable but no penalty). The total max C...
by Alan S.
Tue Jun 30, 2020 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Planning for eventual inherited accounts
Replies: 31
Views: 2233

Re: Planning for eventual inherited accounts

The following is copied from Pub 551, p 10. While complicated by depreciation, this clarifies that the contributing JT's share of the account receives the basis adjustment, so if the decedent contributed 100%, the full account value receives a basis adjustment at death. This typifies so called "conv...
by Alan S.
Tue Jun 30, 2020 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary - Individuals or Trust
Replies: 13
Views: 659

Re: IRA Beneficiary - Individuals or Trust

Yes, there would be better asset protection. But there might be offsetting disadvantages with a trust beneficiary.
by Alan S.
Tue Jun 30, 2020 2:54 pm
Forum: Personal Investments
Topic: Company suspends 401k match. What to do?
Replies: 29
Views: 2415

Re: Company suspends 401k match. What to do?

My company has initiated cost cutting measures to offset our loss of revenue due to the COVID-19 pandemic. These actions have been welcomed by the employees, as not a single employee has been furloughed or lost their job. One of the measures is the suspension of the 401k match until further notice....
by Alan S.
Tue Jun 30, 2020 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Sent RMD Back Non-Deductible IRA Form 8606
Replies: 6
Views: 268

Re: Sent RMD Back Non-Deductible IRA Form 8606

No. Basis from the last 8606 filed (Part I) carries forward until it changes due to a contribution or distribution. Someone could have no such activity for a decade and then if they take a distribution they will have to locate the last 8606 they filed to pick up the basis from line 14 and enter it o...
by Alan S.
Tue Jun 30, 2020 2:34 pm
Forum: Personal Consumer Issues
Topic: YoutubeTV subscription now $64.99/month
Replies: 100
Views: 6227

Re: YoutubeTV subscription now $64.99/month

Just maybe they have discovered the "pain threshold" here. Stay tuned for the price reduction.
by Alan S.
Tue Jun 30, 2020 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary - Individuals or Trust
Replies: 13
Views: 659

Re: IRA Beneficiary - Individuals or Trust

Most IRA agreements provide that if there are multiple beneficiaries and one dies (or disclaims), their share goes equally to the remaining beneficiaries. If you don't want that, specify "per stirpes" or "per capita" after each beneficiaries name where you want their share to pass to their issue. If...
by Alan S.
Tue Jun 30, 2020 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Sent RMD Back Non-Deductible IRA Form 8606
Replies: 6
Views: 268

Re: Sent RMD Back Non-Deductible IRA Form 8606

Just thinking out loud early on. I do my mother's income tax preparation and she has a non-deductible IRA that requires an annual form 8606. This year she took her RMD in February and returned it (rolled it back) in April. What will be the ramifications for reporting on form 8606? None. If she roll...
by Alan S.
Mon Jun 29, 2020 10:08 pm
Forum: Personal Investments
Topic: E*Trade Commission Fee of 5 cents after selling SPY ETF
Replies: 5
Views: 501

Re: E*Trade Commission Fee of 5 cents after selling SPY ETF

Perhaps it's the SEC fee: https://www.sec.gov/news/press-release/ ... %20dollars.

$20.70 per $1mm - check out the math if the fee is not clearly labeled.
by Alan S.
Mon Jun 29, 2020 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary - Individuals or Trust
Replies: 13
Views: 659

Re: IRA Beneficiary - Individuals or Trust

Alan, thank you for the detailed reply. To address the points you made: - All beneficiaries are in Illinois - No disabled or chronically ill - To the best of her knowledge, the trust is simply to avoid having things tied up in probate to get things to the beneficiaries as quickly as possible. We do...
by Alan S.
Mon Jun 29, 2020 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate at age 70?
Replies: 12
Views: 1249

Re: Real estate at age 70?

Another issue to consider is the Pandemic's effect on such things as rental property demand and rent control. If many people remain out of work and cannot pay their rents, collection can become difficult and rent increases can be curtailed. And it's not as simple as avoiding apartments and houses, s...
by Alan S.
Mon Jun 29, 2020 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary - Individuals or Trust
Replies: 13
Views: 659

Re: IRA Beneficiary - Individuals or Trust

My wife will (AFAweK) be both executor and trustee when her mother (currently 90+ with some health issues but still mentally sharp) dies. My wife is one of seven surviving 55 y.o.+ children (one sister has already passed but as she was never married and had no children, any inheritance claim has be...
by Alan S.
Mon Jun 29, 2020 6:05 pm
Forum: Personal Investments
Topic: For Alan S and others 2020 Covid-19 RMD
Replies: 4
Views: 381

Re: For Alan S and others 2020 Covid-19 RMD

I agree with the above, and assume indicating "Covid 19" does NOT mean that you qualify for a corona virus related distribution (CRD). Rather, you do not qualify for a CRD but just want to roll back the January RMD amount which is now allowed under Notice 2020-51. You can use your other money to rol...
by Alan S.
Mon Jun 29, 2020 3:41 pm
Forum: Personal Investments
Topic: New 2020 RMD Rules
Replies: 19
Views: 1636

Re: New 2020 RMD Rules

All correct, except for #1, which is not an option. If you replace the funds via permitted rollover, then you cannot report a QCD. You would just report a distribution and rollover on line 4a,4b of Form 1040, not a QCD. The charity keeps the money as an ordinary non QCD donation, and you can claim a...
by Alan S.
Mon Jun 29, 2020 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella without homeowners (young physician)
Replies: 2
Views: 274

Re: Umbrella without homeowners (young physician)

She could also substitute a personal liability policy for the renter's policy as the underlying non auto coverage, but the coverage value and cost of the renter's policy might be preferable over the personal liability policy.
by Alan S.
Mon Jun 29, 2020 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Planning for eventual inherited accounts
Replies: 31
Views: 2233

Re: Planning for eventual inherited accounts

+ 1. This is a good idea for everyone, but checking should be redone even more often by those up in age. Despite continued bad outcomes, many people are still allowing their tax deferred accounts to go to their estate, some intentionally but most by oversight. For some of those way up in years, even...
by Alan S.
Mon Jun 29, 2020 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Planning for eventual inherited accounts
Replies: 31
Views: 2233

Re: Planning for eventual inherited accounts

For the annuity, what is the current cash value? Was there any other premiums paid beyond the initial investment? If the death benefit is considerably more than the current cash value, do not surrender the annuity as that will eliminate the death benefit. While the inherited Roth will be tax free, s...
by Alan S.
Mon Jun 29, 2020 11:42 am
Forum: Personal Finance (Not Investing)
Topic: IRS broadens rollover options for 2020 RMD distributions
Replies: 46
Views: 2707

Re: IRS broadens rollover options for 2020 RMD distributions

The challenge here is rolling back a distribution taken by a DECEDENT which has always been a challenge for years. Most custodians will not do it without a PLR secured by the current applicant, some will do it based on prior PLRs, and some custodians will outright decline it without even suggesting...
by Alan S.
Mon Jun 29, 2020 10:49 am
Forum: Personal Investments
Topic: ESG ETFs and market cap
Replies: 8
Views: 352

Re: ESG ETFs and market cap

Those interested in ESG offerings should be interested in newly proposed DOL Regs with respect to the long standing trade off between fund performance and ESG goals. Basically, ESG offerings should not be provided if analysis concludes that fund performance is compromised. This should provide some c...
by Alan S.
Sun Jun 28, 2020 11:33 pm
Forum: Personal Investments
Topic: New 2020 RMD Rules
Replies: 19
Views: 1636

Re: New 2020 RMD Rules

Yes, you could roll back the QCD amount (but not more than what the RMD would have been), then itemize the donation, and instead of reporting a QCD you would report a rollover and Sch A deductions. You should already have itemized deductions at least equal to your standard deduction so that the dona...
by Alan S.
Sun Jun 28, 2020 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: CARES Act 401k withdrawal/payback question
Replies: 4
Views: 262

Re: CARES Act 401k withdrawal/payback question

A CRD can be repaid to any eligible retirement plan that accepts rollovers. Qualified plans are more likely not to accept rollovers than IRA accounts, so you may have to roll it to an IRA. You can report all the income in the distribution year or 1/3 for 3 years. By the due date for filing the 2020 ...
by Alan S.
Sun Jun 28, 2020 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Undoing your already-taken RMD for 2020
Replies: 119
Views: 7719

Re: Undoing your already-taken RMD for 2020

In January this year, I did a total distribution of my 401k, using the net unrealized appreciation (NUA) of my company shares distributed to a taxable brokerage account to satisfy both my deferred 2019 RMD (age 70 1/2 in 2019) and the 2020 RMD. The remainder of the 401k was converted to cash and ro...
by Alan S.
Sun Jun 28, 2020 11:53 am
Forum: Personal Investments
Topic: Secure Act - Qualified Inherited Annuity IRA
Replies: 22
Views: 902

Re: Secure Act - Qualified Inherited Annuity IRA

Condolences on your loss. My Mom passed away this year too and she had 2 IRAs at AIG which were invested in annuities. AIG called the accounts Individual Retirement Annuities. The beneficiary for both policies was her estate. The designated beneficiaries were dead. I tried very, very hard with AIG ...
by Alan S.
Fri Jun 26, 2020 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: IRS broadens rollover options for 2020 RMD distributions
Replies: 46
Views: 2707

Re: IRS broadens rollover options for 2020 RMD distributions

If she wants to pursue this, she should wait before assuming ownership until any potential rollover is approved and completed. If she assumes ownership by 12/31/2021 any 2021 RMD will be based on her owning the IRA the entire year, therefore the Uniform Table will apply. Initially, the custodian (V...
by Alan S.
Fri Jun 26, 2020 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: IRS broadens rollover options for 2020 RMD distributions
Replies: 46
Views: 2707

Re: IRS broadens rollover options for 2020 RMD distributions

A relative died earlier this year after taking a few RMDs from his IRA in 2020. His widow is about to send in paperwork to assume his IRA. Can his 2020 RMDs be rolled back into his IRA? Will her assuming the IRA make this more complicated so that she should wait? In other words, can she roll them b...
by Alan S.
Fri Jun 26, 2020 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Question about healthcare careers
Replies: 10
Views: 730

Re: Question about healthcare careers

As long as the virus remains a factor, there is likely to be a high burnout rate among medical and dental assistants of all types. This can only increase the salaries needed to retain staff or attract replacement staff.
by Alan S.
Thu Jun 25, 2020 8:52 pm
Forum: Personal Investments
Topic: Moving Inherited Trust From Edward Jones to Vanguard
Replies: 18
Views: 1205

Re: Moving Inherited Trust From Edward Jones to Vanguard

Just curious why EJ resisted replacement as trustee. Was there some question over your authority as beneficiary to change the trustee?
by Alan S.
Thu Jun 25, 2020 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 CARES Act Covidvirus-Related Withdrawal and Net Unrealized Appreciation (NUA)
Replies: 2
Views: 219

Re: 2020 CARES Act Covidvirus-Related Withdrawal and Net Unrealized Appreciation (NUA)

The problem here appears to be that the CRD is limited to 100k out of the total Box 1 figure on the 1099R. Box 1 includes both the cost basis and the NUA even though the NUA is not currently taxable, and therefore Box 1 will be much higher than the 100k limit for a CRD. Let's say Box 1 is 800k with ...
by Alan S.
Thu Jun 25, 2020 2:27 pm
Forum: Personal Investments
Topic: Roth contributions and the TCJA
Replies: 16
Views: 911

Re: Roth contributions and the TCJA

I have space to contribute 12,000 more in my pre-tax retirement accounts. But I'm wondering if I should just do 12,000 backdoor Roth IRA for me and my husband every year until 2025 since the tax brackets are at historic lows and they are set to revert back to the higher rates in 2026 (upon expirati...
by Alan S.
Thu Jun 25, 2020 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: IRS broadens rollover options for 2020 RMD distributions
Replies: 46
Views: 2707

Re: IRS broadens rollover options for 2020 RMD distributions

FYI- When 2020-51 was released, I was surprised that the IRS was able to offer some aspects of this relief, since I understood they did not have such authority. One example is the rollover of a beneficiary RMD when such distributions are never rollover eligible. As it turns out, much of this IS outs...
by Alan S.
Thu Jun 25, 2020 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Rolling back RMDs taken at the beginning of 2020
Replies: 4
Views: 204

Re: Rolling back RMDs taken at the beginnign of 2020

RBD = required beginning date. For IRA owners who reach 70.5 in 2019, their first RMD for 2019 can be postponed up to 4/1/2020. For those people who postponed the 2019 RMD until early 2020, that RMD distributed in 2020 was waived. Therefore, if taken in 2020 for 2019, it can be rolled back to the IR...
by Alan S.
Thu Jun 25, 2020 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Rolling back RMDs taken at the beginning of 2020
Replies: 4
Views: 204

Re: Rolling back RMDs taken at the beginnign of 2020

Just saw this article and would like some confirmation. It says the IRS has extended the time you have to roll-back your 2019 RMD. https://www.marketwatch.com/story/do-you-regret-taking-a-distribution-from-your-retirement-plans-the-irs-says-you-can-give-it-back-11593017937?mod=home-page Also - It's...
by Alan S.
Thu Jun 25, 2020 9:30 am
Forum: Personal Finance (Not Investing)
Topic: IRS broadens rollover options for 2020 RMD distributions
Replies: 46
Views: 2707

Re: IRS broadens rollover options for 2020 RMD distributions

A relative died earlier this year after taking a few RMDs from his IRA in 2020. His widow is about to send in paperwork to assume his IRA. Can his 2020 RMDs be rolled back into his IRA? Will her assuming the IRA make this more complicated so that she should wait? In other words, can she roll them b...
by Alan S.
Thu Jun 25, 2020 9:11 am
Forum: Personal Finance (Not Investing)
Topic: IRS broadens rollover options for 2020 RMD distributions
Replies: 46
Views: 2707

Re: All 2020 IRA RMD's may be returned

The IRS announced on June 23 "that anyone who already took a required minimum distribution (RMD) in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020. "In addition to the rollover opportunity,...
by Alan S.
Thu Jun 25, 2020 8:49 am
Forum: Personal Finance (Not Investing)
Topic: IRS broadens rollover options for 2020 RMD distributions
Replies: 46
Views: 2707

Re: All 2020 IRA RMD's may be returned

The original and longer thread for 2020-51 is this: viewtopic.php?f=2&t=318399
by Alan S.
Wed Jun 24, 2020 9:58 am
Forum: Personal Finance (Not Investing)
Topic: IRS Expands eligibility for Corona Virus Related Distributions
Replies: 61
Views: 5565

Re: IRS Expands eligibility for Corona Virus Related Distributions

I'm using a CRD from my traditional IRA as money for my early retirement. If I run across extra money (rich parents are generous) could I put up to $100K back in my Roth and pull the contribution part back out if I need it? My Roth account is 5 years old and if it was considered a contribution I co...
by Alan S.
Tue Jun 23, 2020 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Expands eligibility for Corona Virus Related Distributions
Replies: 61
Views: 5565

Re: IRS Expands eligibility for Corona Virus Related Distributions

The intent of CRDs was to facilitate liquidity during a period of intense need. If your hours were cut or salary reduced in April and you took a CRD based on current conditions, then later in the year you did very well and reported a higher annual income than ever before, the IRS is not going to que...
by Alan S.
Tue Jun 23, 2020 8:23 pm
Forum: Personal Investments
Topic: Roth IRA contributions after backdoor conversion
Replies: 16
Views: 704

Re: Roth IRA contributions after backdoor conversion

The Roth was started in 2015 via backdoor with a $6000 contribution. Then contributed directly 2016, 2018, 2019, and 2020 at the maximum amount of $6000/year. Based on this info, and assuming that no contribution was made for 2017 and that none of your 2016 excess could be absorbed as a 2017 contri...
by Alan S.
Tue Jun 23, 2020 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: I.R.S. form 5498 - IRA Contribution Information
Replies: 11
Views: 1140

Re: I.R.S. form 5498 - IRA Contribution Information

Goes to show that someone at the IRS has a sense of humor! Anyone who has retained all of this info for even 25 years should step up for a special award. But of course, the IRS said until the accounts are fully distributed. Such accounts are not even fully distributed by death in many cases, since m...
by Alan S.
Tue Jun 23, 2020 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: IRS broadens rollover options for 2020 RMD distributions
Replies: 46
Views: 2707

Re: IRS broadens rollover options for 2020 RMD distributions

It is also noteworthy that an RMD distribution made to a BENEFICIARY of an IRA can even roll that distribution back to the distributing IRA (no other plan). Normally, non spouse beneficiary distributions can never be rolled over. However, the above does not extend to the beneficiary of a non IRA pla...
by Alan S.
Tue Jun 23, 2020 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: IRS broadens rollover options for 2020 RMD distributions
Replies: 46
Views: 2707

IRS broadens rollover options for 2020 RMD distributions

[Merged into existing thread on same topic in Personal Finance (Not Investing) forum- Mod Misenplace] The IRS has now broadened rollover options for distributions that would have been RMDs for 2020 per IRS Notice 2020-51: https://www.irs.gov/pub/irs-drop/n-20-51.pdf Note that such January and later ...
by Alan S.
Mon Jun 22, 2020 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Beneficiary surprise
Replies: 47
Views: 5873

Re: Vanguard Beneficiary surprise

We ran into this with our taxable Vanguard holdings. We just made sure that our will and standby trust instructions were clear on how those holdings should be distributed. Considering this is really only an issue if the joint holders die together, it wasn’t worth doing something drastic over for ou...
by Alan S.
Mon Jun 22, 2020 7:16 pm
Forum: Personal Investments
Topic: IRA account
Replies: 4
Views: 278

Re: IRA account

I’m just curious, I currently have a Roth IRA with chase bank, because I bank with them. Is there an advantage of having an IRA with vanguard or Fidelity etc... vs having one with a bank? I have all vanguard index funds in my Roth IRA But the way. Thanks Definitely. You will enjoy lower costs, more...
by Alan S.
Mon Jun 22, 2020 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Expands eligibility for Corona Virus Related Distributions
Replies: 61
Views: 5565

Re: IRS Expands eligibility for Corona Virus Related Distributions

What % of your Roth 403b will you be repaying to your Roth IRA, and will you be repaying 100% of the distribution you will receive? Your distribution will include a pro rated amount of earnings that will show in Box 2a as taxable, but as long as you repay at least that taxable amount, there will be ...
by Alan S.
Mon Jun 22, 2020 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: I.R.S. form 5498 - IRA Contribution Information
Replies: 11
Views: 1140

Re: I.R.S. form 5498 - IRA Contribution Information

Hello, I came across this thread while searching for "how long to keep 5498". The reason being I do not have old 5498s... meaning I only have about last 10 years of 5498s, I do not have 5498s for the first 10 years of my contributions. I had also changed custodians in those first 10 years. Any idea...
by Alan S.
Mon Jun 22, 2020 12:38 pm
Forum: Personal Investments
Topic: Rollover IRA to 401k
Replies: 7
Views: 1035

Re: Rollover IRA to 401k

Luck of the draw. Anecdotally, I would say that providing the statement should reduce your chances of a CP 2000 from around 75% to about 25%. The 25% reflects lost or ignored explanatory statements.
by Alan S.
Mon Jun 22, 2020 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Expands eligibility for Corona Virus Related Distributions
Replies: 61
Views: 5565

Re: IRS Expands eligibility for Corona Virus Related Distributions

If you will be making re payments of the distribution, you can manipulate the taxable year income reduction based on when and how much you repay. Basically, the repayment up to the extended due date is credited first to the income reportable for that year, and if the repayment is larger than the amo...
by Alan S.
Sun Jun 21, 2020 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth & Inherited IRA
Replies: 5
Views: 314

Re: Backdoor Roth & Inherited IRA

Sometime this year or in 2021 (depending on when the estate is closed) my wife will be inheriting an IRA. We assume it's best to assign the IRA to her name rather than liquidate it. Since last year, our income is too high to contribute directly to Roth's, so we did backdoor Roth's and intended to d...
by Alan S.
Sun Jun 21, 2020 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Any benefit to linking your Brokerage account to your Local Bank account?
Replies: 15
Views: 1198

Re: Any benefit to linking your Brokerage account to your Local Bank account?

Interesting - I guess in our case, the local bank is housing the emergency fund of 100K which I'd like more to go over into the brokerage account to make some more while just basically sitting there year after year, but the spouse likes the local bank to house that...whereas the Brokerage account o...