Search found 8418 matches

by Alan S.
Mon Jun 24, 2019 6:53 pm
Forum: Personal Investments
Topic: After Tax 401(k) Rollover
Replies: 11
Views: 694

Re: After Tax 401(k) Rollover

If you take a distribution from the after tax sub account, any earnings must also be distributed, pro rating the earnings in the case of a partial distribution. If the earnings are small enough not to create much of a tax bill, you should do a direct rollover to your Roth IRA of the entire amount in...
by Alan S.
Sun Jun 23, 2019 2:04 pm
Forum: Personal Investments
Topic: Question on Roth 403b to Roth IRA rollover
Replies: 3
Views: 306

Re: Question on Roth 403b to Roth IRA rollover

Yes, your Roth IRA distributions will be tax free up to the amount of your contributions to the Roth 403b, same as if you had made the contributions to your Roth IRA. That amount will show in Box 5 of the 1099R reporting the direct rollover. Once in your Roth IRA, you will need to track your regula...
by Alan S.
Sun Jun 23, 2019 11:25 am
Forum: Personal Investments
Topic: Can you help me clean up my Roth IRA mess?
Replies: 22
Views: 1679

Re: Can you help me clean up my Roth IRA mess?

No matter how many Roth accounts you have, when you take a distribution they are all treated as one combined account. Did you ask VG what the account balance minimum is to initiate a direct transfer to pull the small accounts over to them? If it turns out they will accept only a couple larger accoun...
by Alan S.
Sat Jun 22, 2019 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Accidental Rollover from Pretax 401k to Roth 401k
Replies: 13
Views: 776

Re: Accidental Rollover from Pretax 401k to Roth 401k

What is an after tax retirement account? This is not IRS terminology for account types. Both 401k after tax and pre tax amounts can be transferred into a current 401k account, but the transferring 401k plan must provide documentation to the receiving 401k if any amounts are after tax. You have indic...
by Alan S.
Fri Jun 21, 2019 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: Accidental Rollover from Pretax 401k to Roth 401k
Replies: 13
Views: 776

Re: Accidental Rollover from Pretax 401k to Roth 401k

Thanks everyone for the feedback. Full disclosure this was my wife's account and I was assisting her in the process of the rollover. We spoke with Vanguard and they opened a case to switch the funds. Following the instructions they provided, the default account for the rollover was set for the wron...
by Alan S.
Wed Jun 19, 2019 10:17 pm
Forum: Personal Investments
Topic: Question on Roth 403b to Roth IRA rollover
Replies: 3
Views: 306

Re: Question on Roth 403b to Roth IRA rollover

Hello all, The general question: After separating from service, am I able to roll funds from a Roth 403b into a Roth IRA, and then withdraw the contributions (that originally went into the Roth 403b) without any penalties before 59.5 years old? This is assuming that the both the Roth 403b and Roth ...
by Alan S.
Wed Jun 19, 2019 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: How to ensure POA is acting in best interest of grantor?
Replies: 65
Views: 3451

Re: How to ensure POA is acting in best interest of grantor?

"Best interest" is subjective. And like executors, the attorney in fact is typically a family member with little or no experience dealing with the challenges in effectively using the POA. So the bar will have to set low since the parties are not professionals, and in many cases are not even qualifie...
by Alan S.
Tue Jun 18, 2019 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Aftertax conversion to Roth and tax implications for withdrawals
Replies: 6
Views: 651

Re: Aftertax conversion to Roth and tax implications for withdrawals

Since the after tax conversions and their earnings are typically distributable anytime, that status is also typically transferred to the Roth 401k when an IRR is done. In the Roth these amounts are referred to as "otherwise distributable amounts". In other words, moving these after tax contributions...
by Alan S.
Tue Jun 18, 2019 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Looking for help with my parents' finances - dad's death, RMDs, social security
Replies: 35
Views: 2899

Re: Looking for help with my parents' finances - dad's death, RMDs, social security

Once the more urgent issues have been addressed, Mom should proceed with the IRAs as follows: 1) Submit death Cert and her personal info including SSN, mailing address, e mail etc to each IRA custodian 2) State that she has elected to assume ownership of the inherited IRA. The custodian will open a ...
by Alan S.
Sun Jun 16, 2019 12:49 pm
Forum: Personal Investments
Topic: Mega backdoor roth, keep in Roth 401k or do in service rollover to Roth IRA
Replies: 11
Views: 938

Re: Mega backdoor roth, keep in Roth 401k or do in service rollover to Roth IRA

In your situation, a primary factor is to be sure that your plan accounting is set up to continue to flag these IRRs as "otherwise distributable amounts". That means that you could take distributions at any time including doing a direct rollover to your Roth IRA if you wish to. Note that this sub ac...
by Alan S.
Thu Jun 13, 2019 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: Disregard
Replies: 4
Views: 695

Re: Incorrect 1099R

I had $100,000 in a 401k that I requested to be a direct rollover to an IRA. I incorrectly asked for a direct rollover to an traditional IRA when in fact I rolled $70,000 into a traditional IRA and $30,000 into a ROTH IRA. Of the $100,000 $10,000 was after tax. I understand I made the mistake and t...
by Alan S.
Wed Jun 12, 2019 11:11 pm
Forum: Personal Consumer Issues
Topic: Toyota Sienna tire replacement at 12k miles
Replies: 72
Views: 3904

Re: Toyota Sienna tire replacement at 12k miles

Somewhat off topic, but the reverse is also a problem. Some tire dealers refuse to rotate or balance tires that are 6 years or older, even when they have very low mileage and 7/32 of tread. This started at 10 years and is moving to 6 years. Some places use the date stamped on the tires, so the 6 yea...
by Alan S.
Wed Jun 12, 2019 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: RMD and expected life span
Replies: 30
Views: 2633

Re: RMD and expected life span

The dollar amount of the RMD will go down if the account losses plus the lower balance from the prior year RMD more than offset the higher RMD %.
by Alan S.
Wed Jun 12, 2019 6:54 pm
Forum: Personal Finance (Not Investing)
Topic: RMD and expected life span
Replies: 30
Views: 2633

Re: RMD and expected life span

The IRS RMD tables take that into account and state the life expectancy "duration" at specific ages. Is the RMD designed so one dies with no money in the account? Life expectancy is the median, half will live longer and half will live less than the posted number. I hope the RMD is not that strict o...
by Alan S.
Mon Jun 10, 2019 7:36 pm
Forum: Personal Investments
Topic: Quick question about SIMPLE IRA transfers
Replies: 4
Views: 301

Re: Quick question about SIMPLE IRA transfers

If you contribute to a SIMPLE IRA, you can still make a TIRA contribution in addition. However, the SIMPLE contributions make you an active participant, and if your MAGI is too high the TIRA Contribution cannot be deducted. Without the TIRA deduction it would be better to contribute to a Roth IRA pr...
by Alan S.
Sat Jun 08, 2019 1:38 pm
Forum: Personal Investments
Topic: brokered CDs from fidelity/vanguard, bank reputation?
Replies: 28
Views: 2234

Re: brokered CDs from fidelity/vanguard, bank reputation?

As others have mentioned, FDIC insured is FDIC insured. However, just be aware of buying CDs at a premium to get a certain rate. If the bank fails, you'll eat that part. With brokered CDs, if the bank is taken over by the FDIC, you will typically have your principal plus interest to the date of rec...
by Alan S.
Sat Jun 08, 2019 1:25 pm
Forum: Personal Investments
Topic: Question about RMDs from inherited IRA
Replies: 23
Views: 1537

Re: Question about RMDs from inherited IRA

IRA owner passes before completing the year of death RMD. The responsibility to complete that RMD falls to the beneficiaries of the IRA. 1) Individual or charitable beneficiaries - the year of death RMD can be completed in any combination to these beneficiaries. The beneficiaries will get the 1099R ...
by Alan S.
Tue Jun 04, 2019 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Required Minimum Distributions
Replies: 57
Views: 4585

Re: Required Minimum Distributions

Another note: Make sure your heirs know about your RMD distribution schedule. We were fortunate--MIL died in July 2017, we had time to recognize that she hadn't done her 2017 RMDs, and the estate took them in plenty of time. There have been posts on this forum of people who lose a relative in Dec.,...
by Alan S.
Mon Jun 03, 2019 9:54 pm
Forum: Personal Investments
Topic: Any concerns with TIRA rollover to 401k, to allow backdoor Roth IRA?
Replies: 8
Views: 445

Re: Any concerns with TIRA rollover to 401k, to allow backdoor Roth IRA?

1st Separate out the non-deductible amount and the pre-tax amounts. Then, roll over the pretax from tIRA to 401k. Finally, convert the non-ded amount to Roth. Make sure you reflect this on 8606 at tax time. Do it this year and ensure tIRA has zero balance before Dec 31. Opens up the possibility of ...
by Alan S.
Sun Jun 02, 2019 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Reporting: ST and LT gains on same NUA tax lot
Replies: 6
Views: 387

Re: Tax Reporting: ST and LT gains on same NUA tax lot

Good suggestion. Strange that the IRS has not issued reporting guidance for this situation in the 8949 Inst, Pub 544, or Pub 550, but they never have as far as I know. In a related situation where the stock was sold for less than the NUA reported on the 1099R distribution from the plan, the simple a...
by Alan S.
Fri May 31, 2019 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Haven't filed my Nondeductible IRA form 8606
Replies: 9
Views: 689

Re: Haven't filed my Nondeductible IRA form 8606

Just to clarify, I only made non-deductible contributions of 4000 in 2007 and 5000 in 2008. I never made any non-deductible contributes before or since then (most of my contributions are traditional SEP IRA contributions in a different account. I also never took any distributions. I just basically ...
by Alan S.
Fri May 31, 2019 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Haven't filed my Nondeductible IRA form 8606
Replies: 9
Views: 689

Re: Haven't filed my Nondeductible IRA form 8606

I made some nondeductible traditional IRA contributions in 2007 and 2008 (total basis of 9000). Yesterday, I was going through my old taxes and noticed that my accountant filed the 8606 in 2008, ..., and 2011, but never since then. What do I do now. Should I just tell him to file again in 2019 and ...
by Alan S.
Wed May 29, 2019 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning - can I require only RMDs for inherited Roth IRA?
Replies: 46
Views: 2263

Re: Estate planning - can I require only RMDs for inherited Roth IRA?

I have a large Roth IRA balance that I will split between two children. I want to require RMDs rather than lump sum or 5 year liquidation. Is there a way to structure this so that my children are required to take only the minimum RMD annually? In addition, I have a decent amount saved outside of re...
by Alan S.
Mon May 27, 2019 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: Troubling Delay in Retirement Processing
Replies: 8
Views: 901

Re: Troubling Delay in Retirement Processing

If you know any other former employees who might have filed in the past year, check with them to see what they have experienced. It would be interesting to know if this situation is unique to you or has affected many. It is helpful to have multiple complainants on the city's case if possible. Comput...
by Alan S.
Fri May 24, 2019 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: 8606 confusion [IRS Form 8606]
Replies: 11
Views: 1297

Re: 8606 confusion [IRS Form 8606]

Send in 2016 by itself as follows: Lines 1,3 and 14 5500. That's it. 2017 8606: Line 1 5500; Line 2 5500; Line 3 11000; Line 4 5500; Line 5 5500; Lines 8 and 9 5501; Line 10 .9998; Lines 11, 13, and 14 5500; Line 16 5501; Line 17 5500; Line 18 1 2018 8606: Line 1 5500; Line 2 5500; Lines 3 and 5 110...
by Alan S.
Thu May 23, 2019 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: 8606 confusion [IRS Form 8606]
Replies: 11
Views: 1297

Re: 8606 confusion

You converted 11,000 in 2018, didn't you? Your 2018 return only shows 5500. The 1099R should indicate a distribution of 11,000. If so, the 2018 return will not match up to the IRS' income records, and they will send you an inquiry, probably later this year. Are you sure about the dates, year, and co...
by Alan S.
Thu May 23, 2019 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: 8606 confusion [IRS Form 8606]
Replies: 11
Views: 1297

Re: 8606 confusion

Just knowing which lines have numbers do not mean those numbers are correct. I suspect that some are wrong. Do either the 2017 or 2018 8606 forms have an amount on line 4? There should be because you were making PRIOR YEAR contributions. On the 2018 8606, what is the amount on lines 16, 17, and 18? ...
by Alan S.
Thu May 23, 2019 11:33 am
Forum: Personal Investments
Topic: IRA SEPP 5-year question
Replies: 5
Views: 398

Re: IRA SEPP 5-year question

Have you ever heard of the site 72t.net? Try going there and filling out their calculator. From what information you’ve provided plus making a couple of assumptions, your 5/19/2017 distribution would have satisfied the 5 years of distributions and that you don’t need to take the 5/19/2018 distribut...
by Alan S.
Thu May 23, 2019 11:10 am
Forum: Personal Investments
Topic: IRA SEPP 5-year question
Replies: 5
Views: 398

Re: IRA SEPP 5-year question

Any suggestions on one mutual fund that would be best to use for a SEPP of $600,000 ? I have roughly the same in fixed income so I will be right about at a 50/50 AA. I was leaning towards the Vanguard Total Stock Market Index with calculations close to a 4% withdrawal rate. The Total Stock Market I...
by Alan S.
Thu May 23, 2019 10:54 am
Forum: Personal Investments
Topic: IRA SEPP 5-year question
Replies: 5
Views: 398

Re: IRA SEPP 5-year question

Hello, I have been a reader for years, always find good advice here. I am a retired (early-out) engineer and now I teach at a college. I have always managed my own investments. I have the following question wrt SEPP IRA penalty free distributions, AKA as 72T. On 4/19/2013 At age of 55, I requested ...
by Alan S.
Wed May 22, 2019 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Which Renters Insurance Brand/Company should I use?
Replies: 13
Views: 1391

Re: Which Renters Insurance Brand/Company should I use?

When it comes to claims performance, you would need a credible amount of feedback to be viable. And even that can be tricky because many responders who are unhappy may have had their claim handled correctly. Others who are satisfied may have received more than they should have. Some states collect c...
by Alan S.
Wed May 22, 2019 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: RMDs from an inherited-inherited IRA...is Fidelity wrong?
Replies: 15
Views: 2005

Re: RMDs from an inherited-inherited IRA...is Fidelity wrong?

I went through this a little more than 10 years ago. I inherited retirement accounts from my mother who had inherited them from my father. TIAA-CREF said one thing, my lawyer said another, my CPA another. IRS pubs were quoted but were never crystal clear about my situation. TIAA-CREF changed its mi...
by Alan S.
Wed May 22, 2019 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: 401k After-tax money...transfer to Roth IRA?
Replies: 9
Views: 728

Re: 401k After-tax money...transfer to Roth IRA?

You'll be subject to the plan distribution rules, and they vary from plan to plan In most plans you could distribute the after tax sub account separately, but some plans terminate the separate account treatment after separation from service. If your plan is one of those, an allowed partial distribut...
by Alan S.
Tue May 21, 2019 9:53 pm
Forum: Personal Finance (Not Investing)
Topic: am I supposed to receive form 5498 for Roth IRA conversion?
Replies: 2
Views: 556

Re: am I supposed to receive form 5498 for Roth IRA conversion?

Hi, I contributed $5500 to my non-deductible traditional IRA in Vanguard early this year for 2018, then converted to my Roth IRA at Vanguard. Yesterday, Vanguard sent me the form 5498 for my traditional IRA with the $5500 contribution amount, but not on Roth IRA account. Am I supposed to receive fo...
by Alan S.
Tue May 21, 2019 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Payable On Death Account to Complement Will
Replies: 66
Views: 3459

Re: Payable On Death Account to Compliment Will

When the bulk of the assets pass by beneficiary designation, unknown final expenses including taxes, final cc bills, final medical bills, funeral/burial costs etc may not have adequate funding from the limited assets subject to probate. If that happens, paying all the final costs including executor ...
by Alan S.
Tue May 21, 2019 7:21 pm
Forum: Investing - Theory, News & General
Topic: TSP modernization implementation date: 9/15/2019
Replies: 24
Views: 2706

Re: TSP modernization implementation date: 9/15/2019

Many of the underlying basics of the TSP remain in place. For example, the TSP is NOT an ERISA plan, though it IS a qualified DC plan. To be honored by the TSP as a qualifying retirement benefits court order (RBCO), a court order must meet the requirements found in 5 United States Code (U.S.C.) § 84...
by Alan S.
Tue May 21, 2019 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard: should I split taxable JTWROS into 2 accounts?
Replies: 3
Views: 362

Re: Vanguard: should I split taxable JTWROS into 2 accounts?

Your basis and holding period should be transferred to any new broker. But there could be errors in the process, so you should check to see what the new broker logs as your basis on the transferred assets a couple weeks after the transfer is completed. https://investorjunkie.com/stock-brokers/how-to...
by Alan S.
Tue May 21, 2019 2:06 pm
Forum: Investing - Theory, News & General
Topic: TSP modernization implementation date: 9/15/2019
Replies: 24
Views: 2706

Re: TSP modernization implementation date: 9/15/2019

Note that the Sept improvements do nothing for non spouse beneficiaries of participants (or beneficiaries of surviving spouses) since they are still not eligible for a "beneficiary participation account", which is limited to spousal beneficiaries. A non spouse beneficiary who does not promptly elect...
by Alan S.
Tue May 21, 2019 1:28 pm
Forum: Personal Investments
Topic: Tricky Roth IRA Questions
Replies: 41
Views: 3589

Re: Tricky Roth IRA Questions

Yes, the 2018 instructions do indicate 1998-2013.

But I changed the 2013 to 2014 to reflect what the 2019 8606 Inst will indicate for reporting of a 2019 distribution, as the 5 years for a 2014 contribution is completed 1/1/2019.
by Alan S.
Tue May 21, 2019 1:20 pm
Forum: Personal Investments
Topic: TSP Partial Rollover to Vanguard IRA
Replies: 7
Views: 655

Re: TSP Partial Rollover to Vanguard IRA

It took about 2 weeks to get my form back from Vanguard, but I sent it to them via regular mail (https://www.bogleheads.org/forum/viewtopic.php?t=266033#p4258570). Note that Vanguard used a special "account number" on my form, so that they could link the deposit from the TSP directly to the rollove...
by Alan S.
Mon May 20, 2019 11:12 pm
Forum: Personal Investments
Topic: TSP Partial Rollover to Vanguard IRA
Replies: 7
Views: 655

Re: TSP Partial Rollover to Vanguard IRA

Your MAGI for 2019 will determine any IRMAA surcharge in 2021. However, the 170k first tier threshold will get the first inflation adjustment in years starting in 2020, another in 2021. So the 170k will be somewhat higher, but I wouldn't count on it being much higher, probably just a margin of error...
by Alan S.
Mon May 20, 2019 9:27 pm
Forum: Personal Investments
Topic: TSP Partial Rollover to Vanguard IRA
Replies: 7
Views: 655

Re: TSP Partial Rollover to Vanguard IRA

You need to give this a little more time, at least a week-10 days. But carefully check the form when you receive it from VG to make sure the account number and all else is correct. Accuracy trumps speed in this situation. With respect to IRMAA, I assume you are rolling this into a TIRA, from which y...
by Alan S.
Mon May 20, 2019 8:00 pm
Forum: Personal Investments
Topic: Tricky Roth IRA Questions
Replies: 41
Views: 3589

Re: Tricky Roth IRA Questions

Yes, your understanding is correct. Come 2022 any distributions from your Roth will not need to be reported on Form 8606, just on line 4a of Form 1040. Of course, taking distributions from an account that will otherwise generate tax free earnings should be carefully considered. Quick clarification:...
by Alan S.
Sun May 19, 2019 12:10 pm
Forum: Personal Investments
Topic: Tricky Roth IRA Questions
Replies: 41
Views: 3589

Re: Tricky Roth IRA Questions

.................................................... I just double checked, I guess my Roth IRA is not as old as I thought. Looks like I opened it in 2017. So according to my calculation it becomes qualified on 1/1/2022 Did you open it by April 15, 2017? In that case, you can count it as made for 2...
by Alan S.
Sat May 18, 2019 11:22 am
Forum: Personal Investments
Topic: Tricky Roth IRA Questions
Replies: 41
Views: 3589

Re: Tricky Roth IRA Questions

Right. There is never current taxes due for a designated Roth rollover to a Roth IRA. However, the Roth IRA accounting is changed considerably. Basis is being added that must be treated as if it was regular Roth IRA contribution basis or Roth conversion basis if the designated Roth was funded by an ...
by Alan S.
Thu May 16, 2019 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: non qualified non spouse annuity
Replies: 3
Views: 302

Re: non qualified non spouse annuity

A 1035 exchange can be done for a non spouse annuity beneficiary for purposes of improving investment options and expenses, but NOT to extend the applicable distribution period. This exchange must otherwise meet the 1035 requirements and also requires both the new and former insurer to cooperate. Th...
by Alan S.
Thu May 16, 2019 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: STATE TAXES: Predictor of Wealth Accumulation?
Replies: 21
Views: 2212

Re: STATE TAXES: Predictor of Wealth Accumulation?

If you go by actual state migration patterns, it is preferable to accumulate income in a high cost high tax state, then decumulate in in a low cost low tax state. This pattern has been going on for decades in the NE to FL migration pattern in which the vast portion of this migration takes place post...
by Alan S.
Thu May 16, 2019 2:20 pm
Forum: Personal Investments
Topic: Tricky Roth IRA Questions
Replies: 41
Views: 3589

Re: Tricky Roth IRA Questions

When a non qualified Roth 401k balance is rolled to a non qualified Roth IRA, the amount of contributions made to the Roth 401k are treated as Roth IRA basis in your Roth IRA. This amount could be distributed anytime from the Roth IRA without tax or penalty. However, if you did an IRR in your 401k, ...
by Alan S.
Wed May 15, 2019 6:20 pm
Forum: Personal Investments
Topic: Fisher Investments--again
Replies: 16
Views: 3059

Re: Fisher Investments--again

So how does Fisher get paid to manage this all stock portfolio? What custodian and trading platform do they use?