Search found 7791 matches

by Alan S.
Mon Nov 19, 2018 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Launched a SIMPLE IRA for my biz, can we make contributions for all of 2018?
Replies: 3
Views: 236

Re: Launched a SIMPLE IRA for my biz, can we make contributions for all of 2018?

Just launched a SIMPLE IRA for my small 9 person business in September. The SIMPLE IRA contribution limits are $12,500 per person plus 3% of individual compensation. So as I understand it, if my compensation is 200K for the year I can contribute $12,500 plus matching funds from the business of 3%. ...
by Alan S.
Mon Nov 19, 2018 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth rolling Trad IRA to 401K To Unblock
Replies: 4
Views: 298

Re: Backdoor Roth rolling Trad IRA to 401K To Unblock

It would be accurate to say that a 401k to IRA rollover raises the possibility of not being able to get the pre tax IRA balance back out of the IRA because now the reverse rollover is contingent on being employed and the employer plan allowing IRA rollovers into their plan. In addition, if you rolle...
by Alan S.
Mon Nov 19, 2018 11:44 am
Forum: Investing - Help with Personal Investments
Topic: Transfer Rollover IRAs now for Backdoor next year?
Replies: 2
Views: 112

Re: Transfer Rollover IRAs now for Backdoor next year?

Depends how early in 2019 you are in a position to make your full 2019 contributions. If you wait to do the IRA to 401k rollovers, you will also have to wait to make your individual TIRA contributions until the rollovers are done. Otherwise, your contributions may have gains that will be taxable if ...
by Alan S.
Sat Nov 17, 2018 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: How Much of a Hassle is it Going to be to Roll Back 2018 Roth Contributions?
Replies: 12
Views: 1089

Re: How Much of a Hassle is it Going to be to Roll Back 2018 Roth Contributions?

Here is the formula for calculating the gains or losses on your Roth contributions: http://retirementdictionary.com/definitions/netincomeattributablenia If you have a % gain in the Roth accounts, any returned contributions will include some gains. You will get a 1099R showing the taxable amount for ...
by Alan S.
Sat Nov 17, 2018 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: LOST OVER $400 on CDs in 2 Weeks!
Replies: 24
Views: 4152

Re: LOST OVER $400 on CDs in 2 Weeks!

Since brokered CDs act much like bonds, a newer 10 year CD current market value will suffer more than a much shorter term CD with each interest rate increase just as a long term bond market value will suffer more than a ST bond. As others have stated, you would ordinarily plan to hold these to matur...
by Alan S.
Fri Nov 16, 2018 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: More than $55,000 in 401k contributions this year ?
Replies: 27
Views: 3195

Re: More than $55,000 in 401k contributions this year ?

Do not forget forfeitures when considering the 415c limit. Forfeitures arise when co workers leave the company and matching contributions already made to their account revert to the employer. Some plans then pass these forfeitures on to current employees, so they act as a supplemental matching contr...
by Alan S.
Fri Nov 16, 2018 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Can I do a 2018 Roth conversion up until I file my 2018 taxes or 4/15/2019?
Replies: 4
Views: 405

Re: Can I do a 2018 Roth conversion up until I file my 2018 taxes or 4/15/2019?

I searched on the forum and on line and couldn’t seem to find a definitive answer. Can I do a Roth conversion from my traditional IRA in early 2019, up until 4/15/2019 or the date I file my 2018 taxes? I’d like to convert up to my IRMAA limit (MAGI $170k) but won’t know my income until the very end...
by Alan S.
Fri Nov 16, 2018 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Deceased year RMD of inherited IRA
Replies: 41
Views: 11520

Re: RMD for owner of Inherited IRA...year of death 2018

Let's say that there are 5 beneficiaries of 4 Inherited IRAs (I-IRA). All beneficiaries have transferred 3 of the I-IRAs into their accounts. All beneficiaries cashed the smallest I-IRA. Let's say that each received $2000...that's a total of $10,000. Let's say that the correct TOTAL RMD amount for ...
by Alan S.
Thu Nov 15, 2018 11:28 pm
Forum: Investing - Help with Personal Investments
Topic: Can you rollover a Traditional IRA into a 401k if some of the funds were non-deductible?
Replies: 35
Views: 2946

Re: Can you rollover a Traditional IRA into a 401k if some of the funds were non-deductible?

A 401k is considered a "qualified trust". http://retirementdictionary.com/definitions/401kplan Note that Sec 401k is a portion of all of the plans included under 401(a), as 401(a) describes a qualified trust. 401(a) plans that are not 401ks include defined benefit plans and money purchase pension pl...
by Alan S.
Thu Nov 15, 2018 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: IRS announces 2019 Tax Rates, Standard Deduction, etc.
Replies: 27
Views: 5466

Re: IRS announces 2019 Tax Rates, Standard Deduction, etc.

It is important to note that these inflation adjustments are LESS THAN they would have been under the former rules, as the 2018 tax cut bill starts to be whittled down year by year leading up to 2026 when all of this sunsets. Of course, there is no guarantee that changes will not be passed well befo...
by Alan S.
Wed Nov 14, 2018 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: Failed to take RMD for 5 yrs. Inherited IRA from trust.
Replies: 9
Views: 1363

Re: Failed to take RMD for 5 yrs. Inherited IRA from trust.

Yes, it is correct that the IRS almost always waives the penalty if the taxpayer self reports and makes up the missing RMDs. This is true even when the "reasonable cause" for the omission is weak (Eg, did not know RMDs were required, etc.). If late tax returns will be filed soon, just include the 53...
by Alan S.
Wed Nov 14, 2018 7:31 pm
Forum: Investing - Help with Personal Investments
Topic: Question re: brokered CD at maturity
Replies: 10
Views: 906

Re: Question re: brokered CD at maturity

Face value + accrued interest up to the insured limit max.
by Alan S.
Tue Nov 13, 2018 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Oops! Edward Jones tops Vanguard in customer survey
Replies: 50
Views: 5143

Re: Oops! Edward Jones tops Vanguard in customer survey

Apparently, this result is largely due to the fact that many EJ clients have no idea of what they are paying, although that is hard to understand given the amount of ER advertising in recent years. Perhaps the question was phrased to downplay the overall value client's receive for their dollar spent...
by Alan S.
Tue Nov 13, 2018 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Coverdell to 529 rollover and 365-day rule
Replies: 6
Views: 345

Re: Coverdell to 529 rollover and 365-day rule

You may have to tell your tax program that the distribution from the ESA is for QHEE, which it is per Zach's investment research: Permitted Transfers A distribution from an ESA to a 529 plan counts as a qualified education expense and is therefore not subject to any taxes or penalties if the benefic...
by Alan S.
Tue Nov 13, 2018 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Coverdell to 529 rollover and 365-day rule
Replies: 6
Views: 345

Re: Coverdell to 529 rollover and 365-day rule

Thanks for the response. I did see one website say it is not really a rollover, it is a withdrawal for a qualified expense - the contribution to the 529, and therefore not subject to the 365-day rule. So that would be yet another way to look at it. That is correct, it is not a rollover in the retir...
by Alan S.
Tue Nov 13, 2018 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: 401K plan changing funds.. ugh
Replies: 8
Views: 453

Re: 401K plan changing funds.. ugh

Employees should ask employer WHY this change was made. It is possible that some action by Vanguard triggered this. It is also possible that Callan is being given a look with possible further changes considered for next year. Of course, anytime an employer fields questions of this type, the response...
by Alan S.
Tue Nov 13, 2018 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Rollover and tax implications
Replies: 2
Views: 143

Re: Rollover and tax implications

I am doing a rollover from an old pension plan to a current 401k plan. The original check was issued on 10/1. I'm having the bank reissue a check today because the 401k provider never received it. I know there is a 60 day rule so that there is not any tax implications, but I find it highly unlikely...
by Alan S.
Mon Nov 12, 2018 10:53 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401(k) conversion question
Replies: 3
Views: 673

Re: Roth 401(k) conversion question

I'm not sure if this question was answered before, but I'm going to ask it. If I started to do Traditional 401(k) to Roth 401(k) partial conversions, does each conversion have a separate 5 year clock like the Roth IRA and can I withdraw the Roth 401(k) conversions penalty free under age 59.5 AFTER ...
by Alan S.
Mon Nov 12, 2018 6:56 pm
Forum: Investing - Help with Personal Investments
Topic: Direct Rollover from Fidelity IRA to TSP
Replies: 3
Views: 269

Re: Direct Rollover from Fidelity IRA to TSP

Technically, this is a direct rollover that must be reported on Form 1099R (Code G), and therefore on your tax return. And because the TSP (or any non IRA plan) does not issue a Form 5498 reporting contributions, you will need to include an explanatory statement on your tax return explaining the rol...
by Alan S.
Mon Nov 12, 2018 1:18 pm
Forum: Investing - Help with Personal Investments
Topic: Spouse Roth IRA Contribution Limits
Replies: 4
Views: 686

Re: Spouse Roth IRA Contribution Limits

We have been contributing to a Roth IRA for my non-working spouse at the maximum limit for several years. However, my income has increased to a point that our AGI on jointly filed taxes is above the $199k limit for contributions, so I believe that is no longer possible. Two questions for verificati...
by Alan S.
Mon Nov 12, 2018 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: 401k rollover to Roth IRA - timing & taxes
Replies: 8
Views: 421

Re: 401k rollover to Roth IRA - timing & taxes

Have you done one of these recently so you know the process and the time it takes. If there is any doubt call the plan now and ask them the date in December that you should consider a deadline if you want to be sure the distribution is done before year end. Consider the holidays and lots of holiday ...
by Alan S.
Mon Nov 12, 2018 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion complications- tax help needed!
Replies: 17
Views: 2094

Re: Roth conversion complications- tax help needed!

I think you are pretty close to being able to handle the taxes yourself, as you understand most of it, probably as much or more than the average tax preparer. Anecdotally, indications are that CPAs are great at complex business returns, depreciation and the like, but not necessarily on the finer poi...
by Alan S.
Mon Nov 12, 2018 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: RMDs in the year one becomes 70 1/2
Replies: 24
Views: 1849

Re: RMDs in the year one becomes 70 1/2

If there is any chance you will re locate to a low income tax state, that would be a major factor in conversion planning. But you probably know that.
by Alan S.
Sun Nov 11, 2018 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion complications- tax help needed!
Replies: 17
Views: 2094

Re: Roth conversion complications- tax help needed!

Alan S., Thank you very much for the detailed information. I think it's time for Plan B! If it would be challenging to find a CPA to do it correctly :shock: , I'm not feeling up to the task. I'm also not very confident the bank will generate the 1099R's correctly and don't want red flags to the IRS...
by Alan S.
Sun Nov 11, 2018 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: RMDs in the year one becomes 70 1/2
Replies: 24
Views: 1849

Re: RMDs in the year one becomes 70 1/2

Thanks all. Very helpful. So to dig deeper.....I understand that the rmd would come before a conversion. However, as long as I leave enough to satisfy the RMD amount, can I convert to a Roth in the year I turn 70.5 prior to doing a QCD after I become 70.5? If you do that, you cannot apply the QCD t...
by Alan S.
Sun Nov 11, 2018 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: How long must you hold a Traditional IRA
Replies: 8
Views: 920

Re: How long must you hold a Traditional IRA

First, verify that they can deduct TIRA contributions. Do they have any workplace plans, 401(k) etc. Second, do they have near-term need for the money? Otherwise it would be better to convert to a Roth next year instead of withdrawing. Exactly. In the 22% bracket, either one or both of them may not...
by Alan S.
Sun Nov 11, 2018 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion complications- tax help needed!
Replies: 17
Views: 2094

Re: Roth conversion complications- tax help needed!

Celia- Thank you so much for all the great information. This has helped clear up a number of questions for me. I just want to be sure that I'll be able to handle the taxes correctly. The non-deductible contributions are fairly close in percentage for both of their IRAs, and they are a pretty low pe...
by Alan S.
Sun Nov 11, 2018 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs Taxable accounts - early withdrawal
Replies: 14
Views: 674

Re: Roth 401k vs Taxable accounts - early withdrawal

If you are leaving the country, will you have separated from service? If so, any Roth 401k balance would normally be rolled over to a Roth IRA. From the Roth you could take tax and penalty free distributions up to the amount you contributed to the Roth 401k. Earnings would come out last and be subje...
by Alan S.
Sat Nov 10, 2018 11:37 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion/Tax Withheld Then Deposited
Replies: 7
Views: 613

Re: Roth Conversion/Tax Withheld Then Deposited

Don't know why they withheld 20%. The default withholding rate for IRA distributions is 10%. Perhaps you asked for 20%? You still have a chance to have VG change the contribution to a conversion contribution, since VG has not reported this yet on Form 5498. They may or may not change it, but your ch...
by Alan S.
Sat Nov 10, 2018 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Early withdrawal penalty ?
Replies: 9
Views: 498

Re: IRA Early withdrawal penalty ?

Based on the posted information, there is no way to avoid this penalty. If you have examined the IRA penalty exceptions, there may be a possibility of incurring certain qualified expenses before year end that could qualify to waive the penalty on these amounts, but likely such expenses would be far ...
by Alan S.
Fri Nov 09, 2018 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: IRA "direct rollover"
Replies: 5
Views: 460

Re: IRA "direct rollover"

Here is a comprehensive description of a "direct rollover".

http://retirementdictionary.com/directrollover

The above was posted in 2009, and the only update needed appears to be for rollovers to a SIMPLE IRA. These can now be done after the SIMPLE IRA has met the 2 year waiting period.
by Alan S.
Fri Nov 09, 2018 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH withdrawal rule clarification needed
Replies: 3
Views: 408

Re: ROTH withdrawal rule clarification needed

Note that the 5 year holding period for conversions ends at 59.5, no matter how long you have held your Roth. Therefore, your first conversion never did have a holding period even if that conversion 4 years ago was the first Roth contribution you ever made. But you do need the 5 years from your firs...
by Alan S.
Fri Nov 09, 2018 10:13 pm
Forum: Investing - Help with Personal Investments
Topic: Catch up Contributions
Replies: 3
Views: 504

Re: Catch up Contributions

I've been searching but I'm a bit confused on one item regarding catch up contributions for those over the age of 50. The limit appears to be $6,000. My question is: Do I have to do this through my employer? Or if I have rollover 401Ks from previous employers, can I simply deposit $6,000 into one o...
by Alan S.
Fri Nov 09, 2018 10:02 pm
Forum: Investing - Help with Personal Investments
Topic: IRA rollover vs. transfer
Replies: 9
Views: 434

Re: IRA rollover vs. transfer

Just because the Vanguard form has a place for a Medallion Signature, doesn't mean that it is required. The firm that is giving up the money is the one to decide if it's required. I think you should follow Vanguard's directions and don't worry about the MS. If Union Bank objects to completed Vangua...
by Alan S.
Fri Nov 09, 2018 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Did VG make a mistake on my 1099R?
Replies: 7
Views: 915

Re: Did VG make a mistake on my 1099R?

It's unlikely they will re issue the form this late. The distribution of exactly 6500 suggests that you might have requested a distribution of 6500 instead of the specific 2015 contribution. So you are probably stuck with the tax and penalty. However, your distribution of the 6500 excess amount in 2...
by Alan S.
Thu Nov 08, 2018 10:02 pm
Forum: Personal Finance (Not Investing)
Topic: Handling and stretching an IRA through TWO trusts?
Replies: 7
Views: 807

Re: Handling and stretching an IRA through TWO trusts?

How are these trusts structured? For example, do the trust provisions allow the trustee to terminate all but the SNT? If so, the trustee could assign 50% of the IRA to the non disabled beneficiary. As for RMDs, if the trust is qualified for look through, the RMD divisor would be based on the oldest ...
by Alan S.
Tue Nov 06, 2018 6:17 pm
Forum: Investing - Help with Personal Investments
Topic: TIRA Transfer Fiasco
Replies: 11
Views: 817

Re: TIRA Transfer Fiasco

Let's see if I have this right. First you requested the transfer from VG on line. You indicated the TIRA account number, but the form contained other problems such that VG did not accept it. VG filled in a new form, but substituted the Roth account for the TIRA account. You then signed the new form ...
by Alan S.
Tue Nov 06, 2018 1:16 pm
Forum: Investing - Help with Personal Investments
Topic: TIRA Transfer Fiasco
Replies: 11
Views: 817

Re: TIRA Transfer Fiasco

Push hard for VG to make the rollover contribution to your TIRA, and if they want confirmation from Ally ask VG if there is anyway you can help. If Ally reports this as a conversion on the 1099R, you will have a problem since conversions can no longer be recharacterized. And even if Ally does not is...
by Alan S.
Mon Nov 05, 2018 11:04 pm
Forum: Investing - Help with Personal Investments
Topic: More Help with a Roth 401k Rollover to new 401k
Replies: 5
Views: 416

Re: More Help with a Roth 401k Rollover to new 401k

Hello, I have both a Trad 401k and a Roth 401k with Wells Fargo (WF) Plan Administrator from a previous job that I worked at for only 1 year, so the balances are really small. $1600 Trad 401k $2666 Company Match account (not sure why is this a separate "account" in the plan) $1066 Roth 401k The Rec...
by Alan S.
Mon Nov 05, 2018 10:01 pm
Forum: Investing - Theory, News & General
Topic: Mega backdoor Roth: Losing basis
Replies: 14
Views: 1454

Re: Mega backdoor Roth: Losing basis

You will probably have a problem getting a straight answer. For example, the plan could track your after tax balance after each mega back door rollover, and if so they should apply all available basis to offset gains in future rollovers. However, if you then separate from service and still have left...
by Alan S.
Mon Nov 05, 2018 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Rules for Roth 401k After Leaving Company
Replies: 11
Views: 829

Re: Rules for Roth 401k After Leaving Company

I believe that early withdraws are prorated for the Roth 401k, so you may not be able to withdraw only the contributions, like you do with a Roth IRA. But you can roll it to a Roth IRA, and then there is no proration issue; the already-taxed portion in the Roth IRA can be withdrawn tax-free and pen...
by Alan S.
Mon Nov 05, 2018 9:09 pm
Forum: Personal Finance (Not Investing)
Topic: Switching 2018 contributions between Roth/tIRA "in kind"?
Replies: 8
Views: 449

Re: Switching 2018 contributions between Roth/tIRA "in kind"?

A recharacterization is always done "in kind". Only regular IRA contributions can still be recharacterized up to the extended due date for the return for the contribution year. Recharacterizations include an earnings adjustment. Another alternative which is usually not as effective in changing the c...
by Alan S.
Sun Nov 04, 2018 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: NUA [Net Unrealized Appreciation]
Replies: 8
Views: 415

Re: NUA [Net Unrealized Appreciation]

Not sure how an after tax balance complicates things. It can potentially lower tax liability. A scenario for P&G is presented here http://www.krosnowskiandscott.com/pdfs/PROCTORGAMBLE.pdf It complicates things because it produces a tax planning opportunity, ie apply the after tax contributions to r...
by Alan S.
Sun Nov 04, 2018 11:02 am
Forum: Personal Finance (Not Investing)
Topic: New State Farm Coverages
Replies: 34
Views: 6869

Re: New State Farm Coverages

Remember that any optional coverages must be priced assuming adverse selection will drive the purchases. Therefore, if you purchase this coverage you will be overpaying unless your particular exposure (eg old heating unit) is as risky as the average buyer of this coverage. This is not unlike the sit...
by Alan S.
Sat Nov 03, 2018 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: FDIC coverage in joint account for brokered CDs
Replies: 3
Views: 191

Re: FDIC coverage in joint account for brokered CDs

250,000 per co owner = 500,000. Original issue or secondary market not a factor.
by Alan S.
Sat Nov 03, 2018 2:56 pm
Forum: Investing - Theory, News & General
Topic: Mega backdoor Roth: Losing basis
Replies: 14
Views: 1454

Re: Mega backdoor Roth: Losing basis

No. Basis is the amount that is contributed post tax, ie you have already paid the taxes on it. For a Roth IRA or Roth 401k, all regular and conversion contributions are basis in your Roth. For a pre tax 401k or traditional IRA account, your basis is the after tax or non deductible contributions you...
by Alan S.
Sat Nov 03, 2018 11:36 am
Forum: Investing - Help with Personal Investments
Topic: NUA [Net Unrealized Appreciation]
Replies: 8
Views: 415

Re: NUA [Net Unrealized Appreciation]

The Kitces article is very good, but if you happen to have an after tax balance in your plan, things get complicated. After reading the article, feel free to post any questions you may have. While there are many things to consider, proper diversification tops the list, meaning you would sell some or...
by Alan S.
Fri Nov 02, 2018 7:26 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Mega ROTH conversion
Replies: 19
Views: 1287

Re: Backdoor Mega ROTH conversion

The term mega back door Roth process is somewhat different from the IRA version of a back door contribution. The IRA version of a back door refers to a work around for the Roth IRA INCOME limits on regular Roth IRA contributions. The work around consists of making a non deductible TIRA contribution ...
by Alan S.
Wed Oct 31, 2018 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: Botched ROTH IRA Recharacterization
Replies: 2
Views: 371

Re: Botched ROTH IRA Recharacterization

Hello - My wife and I requested from our plan administrator to recharacterize 2017 contributions in the amount of $1,596 (wife) and $1,200 (myself) from ROTH to TIRA (we have separate IRA accounts). The admin was able to do it for my account but not for my wife's prior to the October 15, 2018 deadl...