Search found 8501 matches

by Alan S.
Sat Aug 17, 2019 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Qualified Charitable Distributions
Replies: 5
Views: 285

Re: Qualified Charitable Distributions

Note that you must secure the same acknowledgement from the charity as you would if you were deducting a charitable contribution. This must state there is no benefit received (no quid pro quo) for the donation. Any benefit received no matter how small will negate the QCD, as the QCD requirements spe...
by Alan S.
Fri Aug 16, 2019 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: Moving after tax 401k to Roth
Replies: 3
Views: 302

Re: Moving after tax 401k to Roth

Hi All, I have been a follower of this forum for a long time now. Previously I had posted for a review and one of the suggestions offered was to look into a after tax 401k (https://www.bogleheads.org/forum/viewtopic.php?p=3094442#p3094442). Researching more on that, I found that at my work, I can a...
by Alan S.
Fri Aug 16, 2019 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Form 8606 not filed with Taxes for last 3 yrs, now what ??
Replies: 7
Views: 999

Re: Form 8606 not filed with Taxes for last 3 yrs, now what ??

A separate 8606 must be filed for each year for each spouse. If any distributions were taken including any conversions in any of these years, an amended return will be needed for the distribution year. The taxable amount of any distribution/conversion will be reduced. The 2019 conversions can be don...
by Alan S.
Wed Aug 14, 2019 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Mom inheriting variable annuity within IRA from Dad
Replies: 14
Views: 1106

Re: Mom inheriting variable annuity within IRA from Dad

The policy lists the death benefit as just over $374,000. I don't know how this will be paid out, if it will be as cash within the IRA or within the variable annuity. I was going to call Monday to ask some questions. I want to help my mom get this right, so we don't want to make any moves until we ...
by Alan S.
Mon Aug 12, 2019 10:18 pm
Forum: Personal Finance (Not Investing)
Topic: Trust 403(b) beneficiary question
Replies: 8
Views: 355

Re: Trust 403(b) beneficiary question

It should be noted that the consequences of having a trust beneficiary fail qualification or having your estate as the beneficiary of a qualified plan are more severe than having these failures for an inherited IRA. For an inherited IRA, the executor or trustee can generally assign the IRA to the be...
by Alan S.
Mon Aug 12, 2019 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion Conundrum
Replies: 46
Views: 3127

Re: Roth Conversion Conundrum

Dear Bogleheads, I am new here and am *so* grateful to have found you. Hoping for help on my topic, as I did not see this particular situation posted already: - My husband opened Traditional IRAs for himself ($6,000) and me ($6,000) on January 1, 2019 with after-tax money, with the intent of conver...
by Alan S.
Sat Aug 10, 2019 2:58 pm
Forum: Personal Investments
Topic: RMD, still working, and retiring
Replies: 3
Views: 705

Re: RMD, still working, and retiring

That is correct about the "retirement date". If your last day on the company books is 12/31, you are deemed retired in that year and the still working exception does not apply. Extending employment into January (and date) will add another year to avoid RMDs under the still working exception by avoid...
by Alan S.
Fri Aug 09, 2019 10:50 pm
Forum: Personal Finance (Not Investing)
Topic: Testamentary trust as beneficiary of an IRA?
Replies: 16
Views: 739

Re: Testamentary trust as beneficiary of an IRA?

A testamentary trust can meet the IRS qualifications for look thru treatment just like an inter vivos trust. It can not be just instructions for a trust. The will must contain all of the terms of the testamentary trust in the will. Thanks Spirit Rider. I guess I'm a bit confused by what will consti...
by Alan S.
Fri Aug 09, 2019 10:35 am
Forum: Personal Investments
Topic: Do you pause while doing a Backdoor Roth?
Replies: 16
Views: 1150

Re: Do you pause while doing a Backdoor Roth?

Agree. The IRS has clarified that this is not an issue. However, the one timing consideration that you should heed is that your solo K agreement includes IRA rollover acceptance, and that the SEP has been deposited into the solo K before you convert your IRA basis from non deductible contributions. ...
by Alan S.
Thu Aug 08, 2019 1:04 pm
Forum: Personal Investments
Topic: [ETF vs. Mutual Fund and additional questions]
Replies: 65
Views: 2101

Re: need to sell roth IRA

Hello BH I need to sell and cash out my Roth IRA and I’m 40 So what do I have to pay, capital gain and any penalty Please don't ask why I need to sell, I have to have money in urgency. Need help your input Thank you Did you do any conversions to your Roth, or just regular contributions? If you only...
by Alan S.
Thu Aug 08, 2019 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA (401k) and RMDs...
Replies: 25
Views: 1420

Re: Inherited IRA (401k) and RMDs...

Yes, if you do the direct rollover to an inherited IRA by the deadline to avoid a plan's 5 year rule requirement, the following special rule from Notice 2007-7 applies: (2) Special rule. If, under paragraph (b) or (c) of Q&A-4 of § 1.401(a)(9)-3, the 5-year rule applies, the non spouse designated be...
by Alan S.
Wed Aug 07, 2019 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA (401k) and RMDs...
Replies: 25
Views: 1420

Re: Inherited IRA (401k) and RMDs...

With respect to the usual deadlines that apply to direct rollovers, if the beneficiary is not made aware of the inherited account until those deadlines have passed, unfortunately there is no relief. The deadlines will be missed with no exceptions available. The Kitces link was correct, but failed to...
by Alan S.
Wed Aug 07, 2019 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA (401k) and RMDs...
Replies: 25
Views: 1420

Re: Inherited IRA (401k) and RMDs...

The balance of this account would have to be well into 6 figures to warrant any action against Fidelity as the nature and damages caused by their error become clearer. They have tremendous resources to combat any damage demands, and calculating the potential damages is a subjective process. The firs...
by Alan S.
Tue Aug 06, 2019 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA (401k) and RMDs...
Replies: 25
Views: 1420

Re: Inherited IRA (401k) and RMDs...

Look for something similar to "Distribution requirements after death of the participant". After you locate that, let us know what it says, and we can interpret the implications, mainly if you still have the chance to preserve the stretch. Of course, everything Fidelity has done is indicative of the ...
by Alan S.
Tue Aug 06, 2019 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA (401k) and RMDs...
Replies: 25
Views: 1420

Re: Inherited IRA (401k) and MRDs...

@Alan S. - Um ok what?... Did this just go from bad to worse? Paying 3 years of penalties is one thing, but now you're saying we may be "locked in" to taking the entire amount out by 2020? Please somebody confirm/deny... Re "locked in" to the RMD provisions that applied under the 401k, see QA 19 of...
by Alan S.
Tue Aug 06, 2019 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA (401k) and RMDs...
Replies: 25
Views: 1420

Re: Inherited IRA (401k) and MRDs...

It appears that Fidelity provided flawed and costly advice if everything transpired as you indicated. Some background regarding this complex situation: When the participant passed prior to the RBD, the plan provisions must be consulted. For a non spouse beneficiary, the plan provisions can vary: 1) ...
by Alan S.
Fri Aug 02, 2019 1:52 pm
Forum: Personal Investments
Topic: Cost Basis for Uncovered Shares
Replies: 4
Views: 393

Re: Cost Basis for Uncovered Shares

You might also have to pay a research fee to the original brokerage if they have to tap into their archived data.
by Alan S.
Thu Aug 01, 2019 8:19 pm
Forum: Personal Investments
Topic: 401(k) RMD Strategy Using NUA [Net Unrealized Appreciation]
Replies: 9
Views: 561

Re: 401(k) RMD Strategy Using NUA [Net Unrealized Appreciation]

Is this correct? I would have assumed that the delta ($300-$91 = $209k) would be eligible for step up if you died while still holding it, no? It's correct; no step up. Revenue ruling 75-125 text here . Interesting. I am a long way (decades) from retirement and utilizing NUA tax treatment, but I hav...
by Alan S.
Thu Aug 01, 2019 7:41 pm
Forum: Personal Investments
Topic: Tax withholding on nonspouse beneficiary tira and roth
Replies: 7
Views: 378

Re: Tax withholding on nonspouse beneficiary tira and roth

Whether inherited or not, the default rate if you do NOT specify otherwise is 10% withholding for TIRA distributions (with or without basis), and 0 for Roth distributions because a Roth distribution is treated as if it is not taxable for withholding purposes. If these defaults do not fit your needs,...
by Alan S.
Thu Jul 25, 2019 8:01 pm
Forum: Personal Investments
Topic: Using SEPP IRA to retire at 40?
Replies: 4
Views: 365

Re: Using SEPP IRA to retire at 40?

Many SEPPs that last longer than 10 years do not end well. 20 years is exceptionally long and very rare. The problem is that the annual distribution is inflexible and rarely matches up with the changes in your financial situation over that long a period. That said, you do have excellent flexibility ...
by Alan S.
Thu Jul 25, 2019 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Where would you move to?
Replies: 130
Views: 9426

Re: Where would you move to?

As already mentioned, I would look at total tax burden, not just income taxes. And even then, you should factor in your financial living style. Consider RE taxes for the value home you will probably buy, for sales taxes your spending projections, and for income taxes how the rates apply to you. Some...
by Alan S.
Thu Jul 25, 2019 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Medigap Broker or Not
Replies: 26
Views: 1075

Re: Medigap Broker or Not

My son is a Medigap/Medicare Advantage broker. Many of his clients, including me needed a full explanation of what Medicare Advantage Plans are available and their differences. Ultimately, went with an N Medigap plan and Part D. I needed an explanation to determine what was best for me. Same premiu...
by Alan S.
Tue Jul 23, 2019 10:37 pm
Forum: Personal Finance (Not Investing)
Topic: Equifax settlement: how to file claim?
Replies: 130
Views: 10989

Re: Equifax settlement: how to file claim?

Marketwatch article titled Consumers could get up to $20,000 apiece in Equifax settlement — how to get your share . Link --- https://www.marketwatch.com/story/consumers-could-get-up-to-20000-apiece-in-equifax-settlement-how-to-get-your-share-2019-07-22 Yes, and the earth could also be flat. :idea: ...
by Alan S.
Tue Jul 23, 2019 10:30 pm
Forum: Personal Investments
Topic: Vanguard transaction: "Death distribution" ?
Replies: 18
Views: 2250

Re: Vanguard transaction: "Death distribution" ?

Originally, you thought that the MMF distributions were in addition to your RMD amount. Instead, it turns out that the total of both distributions X 12 is needed to reach your annual RMD. It's easy to do the math and check that the numbers confirm this.
by Alan S.
Mon Jul 22, 2019 11:35 pm
Forum: Personal Investments
Topic: 55 Age Rules w/403b
Replies: 10
Views: 773

Re: 55 Age Rules w/403b

Well... I got in touch with our 457 administrator today. I learned two things: the same index fund I've been using for the past 26 years in my 403b (Vanguard) is forty bases points higher in the offered 457. In addition, rolling over my 403b would NOT allow me to access said funds upon my retiremen...
by Alan S.
Mon Jul 22, 2019 12:21 pm
Forum: Personal Investments
Topic: 55 Age Rules w/403b
Replies: 10
Views: 773

Re: 55 Age Rules w/403b

Let's say you did work until 55 and had a plan balance with that employer. The age 55 penalty exception is automatic, but what is not automatic and varies with the plan is how flexible your distribution options will be. Of course, complete discretion is the best situation, and a lump sum distributi...
by Alan S.
Mon Jul 22, 2019 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Rolling over after-tax 401(k) withdrawal to Roth IRA
Replies: 16
Views: 1195

Re: Rolling over after-tax 401(k) withdrawal to Roth IRA

If you receive a distribution from the after tax sub account and decide to do IRA rollovers including pre tax to a TIRA, you MUST do that 60 day pre tax rollover prior to rolling the after tax contribution balance to your Roth IRA. The tax code says that the first dollars rolled over are deemed the ...
by Alan S.
Mon Jul 22, 2019 11:30 am
Forum: Personal Investments
Topic: 55 Age Rules w/403b
Replies: 10
Views: 773

Re: 55 Age Rules w/403b

Let's say you did work until 55 and had a plan balance with that employer. The age 55 penalty exception is automatic, but what is not automatic and varies with the plan is how flexible your distribution options will be. Of course, complete discretion is the best situation, and a lump sum distributio...
by Alan S.
Sun Jul 21, 2019 10:34 pm
Forum: Personal Investments
Topic: Roth or SEP IRA?
Replies: 2
Views: 227

Re: Roth or SEP IRA?

Good evening: I'm new to this forum as well as the investing world. I recently opened a small LLC to work as a 1099 contractor for a large company. I very recently opened a SEP IRA with Vanguard so I can start investing for the future. Its so new that I just made my first contribution. I opened the...
by Alan S.
Sun Jul 21, 2019 10:05 pm
Forum: Personal Investments
Topic: Vanguard transaction: "Death distribution" ?
Replies: 18
Views: 2250

Re: Vanguard transaction: "Death distribution" ?

In 2018, I inherited a Vangaurd IRA, for which the 2018 RMD was taken by the original owner. By the end of 2018, the original account was closed because all beneficiaries claimed their benefits. I had Vanguard calculate my RMD. I took their calculated RMD early in 2019. The RMD is showing up as a "...
by Alan S.
Sun Jul 21, 2019 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: Rolling over after-tax 401(k) withdrawal to Roth IRA
Replies: 16
Views: 1195

Re: Rolling over after-tax 401(k) withdrawal to Roth IRA

Alan S, Thank you so much for weighing in on my post. So if I understand you correctly, MBR amounts can be withdrawn if there is an emergency if the plan allows in-service withdrawals (mine does not, but it sounds like OP's does). When I say MBR, I specifically mean contributing after-tax, then doi...
by Alan S.
Sun Jul 21, 2019 5:27 pm
Forum: Personal Investments
Topic: Vanguard transaction: "Death distribution" ?
Replies: 18
Views: 2250

Re: Vanguard transaction: "Death distribution" ?

Agree that VG should be called for an explanation. One possible explanation is that VG determined that aunt did not complete her 2018 RMD before passing. That becomes the responsibility of the beneficiary, although that type of shortfall is usually distributed in a lump sum, not added to periodic di...
by Alan S.
Sun Jul 21, 2019 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Rolling over after-tax 401(k) withdrawal to Roth IRA
Replies: 16
Views: 1195

Re: Rolling over after-tax 401(k) withdrawal to Roth IRA

Aren't In-Plan Roth Conversions not an option? Basically you ask the plan administrator to convert the after-tax contributions into Roth 401k subaccount within the plan. You aren't allowed to withdraw from the plan once it's been converted this way, but if you have enough income to maximize after-t...
by Alan S.
Sat Jul 20, 2019 5:00 pm
Forum: Investing - Theory, News & General
Topic: What are the benefits of 403(b) over IRA?
Replies: 17
Views: 1354

Re: What are the benefits of 403(b) over IRA?

For old timers - your 403b balance as of 12/31/1986 (if tracked by the plan) is not subject to RMDs until age 75.
by Alan S.
Sat Jul 20, 2019 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: 72(t) distributions for terminally ill
Replies: 8
Views: 883

Re: 72(t) distributions for terminally ill

The following is the IRS definition of disability for purposes of the early distribution penalty waiver: Sec 72(m)(7) Meaning of disabled For purposes of this section, an individual shall be considered to be disabled if he is unable to engage in any substantial gainful activity by reason of any medi...
by Alan S.
Fri Jul 19, 2019 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Distributions after Roth Conversion
Replies: 4
Views: 529

Re: Distributions after Roth Conversion

Now that back door Roth contributions are so popular, we get plenty of questions regarding the "recapture tax" (early withdrawal penalty) in the event that portions of these conversions must be distributed within 5 years. If your conversion included a few dollars of gains that were taxed when you co...
by Alan S.
Fri Jul 19, 2019 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Scenario on Gains / Losses
Replies: 15
Views: 964

Re: Mega Backdoor Scenario on Gains / Losses

My 401(K) provider said they won't carry forward any losses to offset future gains. Did they answer this question in a manner that clearly indicates that they understood the question? Many reps would not understand the question. If so, would their answer be different if you left a couple bucks in t...
by Alan S.
Thu Jul 18, 2019 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: Safe harbor rule if I have large capital gain this year?
Replies: 5
Views: 454

Re: Safe harbor rule if I have large capital gain this year?

I'm retired and under normal circumstances our income tax is about the same each year. Usually the tax due is based on RMD's plus Social Security. But I just inherited a house and will hopefully sell it this year generating a large long term capital gains. If I pay 110% of last year's taxes (safe h...
by Alan S.
Thu Jul 18, 2019 10:53 am
Forum: Personal Investments
Topic: Required Minimum Distribution Questions
Replies: 17
Views: 2007

Re: Required Minimum Distribution Questions

RMDs are required from 401k accounts separately, but IRAs can be aggregated and the total RMD required can be taken from one or more accounts. Even in the case of IRAs, automatic RMDs are often taken in proportion. If you manually take distributions >= to the RMD amount, you can take them in any pr...
by Alan S.
Wed Jul 17, 2019 3:51 pm
Forum: Personal Investments
Topic: Gold?
Replies: 137
Views: 7443

Re: Gold?

Anyone know someone who purchased enough physical gold to get the free safe? :arrow:

Do they hire a 24 hr armed guard service?
by Alan S.
Wed Jul 17, 2019 3:42 pm
Forum: Investing - Theory, News & General
Topic: Quick double check on RMDs and multiple accounts
Replies: 6
Views: 505

Re: Quick double check on RMDs and multiple accounts

Yes, separate from each. I assume you are retired from the govt job. However, if your spouse is more than 10 years younger than you, the TSP does not use Table II to calculate their plan RMD. To the extent that your TSP RMD exceeds the Table II statutory RMD amount, you can roll that excess over to ...
by Alan S.
Tue Jul 16, 2019 2:21 pm
Forum: Personal Investments
Topic: i-ORP and annual Roth contributions after age 65?
Replies: 7
Views: 550

Re: i-ORP and annual Roth contributions after age 65?

If you want to increase your Roth balance and are eligible to make regular Roth contributions, you should max those out first and then convert additional amounts if you wish. Conversions generate additional taxable income, while regular Roth contributions come from income you already have. You can a...
by Alan S.
Tue Jul 16, 2019 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: EF in Roth IRA for NJ resident and withdrawal consequences
Replies: 18
Views: 835

Re: EF in Roth IRA for NJ resident and withdrawal consequences

If you are doing VITA in NJ, how are taxpayers and preparers dealing with these tax worksheets? Are they being done accurately, and are they ever challenged by the state?
by Alan S.
Tue Jul 16, 2019 11:08 am
Forum: Personal Finance (Not Investing)
Topic: EF in Roth IRA for NJ resident and withdrawal consequences
Replies: 18
Views: 835

Re: EF in Roth IRA for NJ resident and withdrawal consequences

In addition, in this case the earnings are only calculated on the Roth account to which you made your contribution. If that account is in a MM fund, you earnings would be very small. Thank you for your illustration but are you sure of that? I read before here that NJ "for taxation purposes" treat a...
by Alan S.
Mon Jul 15, 2019 10:33 pm
Forum: Personal Investments
Topic: Best strategy to deal with a (spousal) inherited IRA?
Replies: 2
Views: 508

Re: Best strategy to deal with a (spousal) inherited IRA?

Note that there is an exception to treating non spouse beneficiaries as successor beneficiaries to a surviving spouse for certain RMD purposes. The following is IRS Reg 1.401(a)(9)-4, QA 4 b. (b)Surviving spouse. As provided in A-5 of § 1.401(a)(9)-3, if the employee's spouse is the sole designated ...
by Alan S.
Mon Jul 15, 2019 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Automated In-plan conversions of after-tax to Roth 401k - disadvantages?
Replies: 6
Views: 593

Re: Automated In-plan conversions of after-tax to Roth 401k - disadvantages?

You might verify that the Roth 401k will maintain a separate sub account for the IRRs emanating from the after tax sub account. They must do that if they are to maintain the "distributable" nature of these funds. The rest of the Roth 401k including IRRs from pre tax money is only distributable upon ...
by Alan S.
Mon Jul 15, 2019 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: EF in Roth IRA for NJ resident and withdrawal consequences
Replies: 18
Views: 835

Re: EF in Roth IRA for NJ resident and withdrawal consequences

In addition, in this case the earnings are only calculated on the Roth account to which you made your contribution. If that account is in a MM fund, you earnings would be very small. Thank you for your illustration but are you sure of that? I read before here that NJ "for taxation purposes" treat a...
by Alan S.
Mon Jul 15, 2019 11:49 am
Forum: Personal Finance (Not Investing)
Topic: EF in Roth IRA for NJ resident and withdrawal consequences
Replies: 18
Views: 835

Re: EF in Roth IRA for NJ resident and withdrawal consequences

I live in NJ where ROTH IRA withdrawal could be taxable. Starting next year, I won't be able to max out all 401K's accounts in addition to Roth IRA's for retirement purposes. So, I was thinking to move my EF to Roth IRA (and put it in a MM fund), but if I needed a part of this money, I would pay st...
by Alan S.
Sun Jul 14, 2019 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited ira
Replies: 21
Views: 1706

Re: Inherited ira

Question for the forum: my father recently passed away away as a Virginia resident and named my sister and i as beneficiaries of his tira I spoke with the firm today and was presented three options: 1) roll over beneficiary ira. 2) 5 year plan, draw account down by year 5, and 3) lump sum pay tax n...