Search found 7726 matches

by Alan S.
Thu Oct 18, 2018 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Rollover to New Employer
Replies: 7
Views: 419

Re: 401K Rollover to New Employer

401k's depending on the plan allows first time home buyer 10k withdrawal without penalty but subject to income tax. 401k loan Not correct. Only an IRA is eligible for the 10k exception. See the following penalty exceptions chart: https://www.irs.gov/retirement-plans/plan-participant-employee/retire...
by Alan S.
Thu Oct 18, 2018 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Rollover to New Employer
Replies: 7
Views: 419

Re: 401K Rollover to New Employer

Is there any advantage rolling over a previous 401K to a new employer 401K vs. rolling into an IRA. The IRA could have better choices and costs, but besides these, are there other reasons to go with the new employer? tia The IRA might have better or worse investment options and expenses than the ne...
by Alan S.
Sat Oct 13, 2018 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Bank lost beneficiary paperwork, says must go through probate
Replies: 18
Views: 2503

Re: Bank lost beneficiary paperwork, says must go through probate

Similar problem occurred in my family. A relative thought his TSP account named a beneficiary. TSP said did not have a record of it. Resulted in several $100K of taxable income for his heir. TSP is a tax differed savings plan so heirs always will pay tax on the drawn out income. Do you mean the rel...
by Alan S.
Fri Oct 12, 2018 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: Bank lost beneficiary paperwork, says must go through probate
Replies: 18
Views: 2503

Re: Bank lost beneficiary paperwork, says must go through probate

While it would not be conclusive, if he kept old bank statements for this account, those should be checked to see if they show any evidence of a POD. POD is usually the term applied to a checking or savings account, so at least this is not an IRA where a loss of designated beneficiary documentation ...
by Alan S.
Thu Oct 11, 2018 11:51 pm
Forum: Personal Finance (Not Investing)
Topic: Asterisks on Form 8606 for Backdoor Roth?
Replies: 5
Views: 519

Re: Asterisks on Form 8606 for Backdoor Roth?

I assume you are referring to a footnote for these asterisks that refers back to the Pub 590 B worksheet. The worksheet duplicates much of Form 8606, and the tax programs that do not complete portions of Form 8606 have secured the OK from the IRS to file the worksheet instead, or they would not cont...
by Alan S.
Thu Oct 11, 2018 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions on a large Roth conversion if we have a 30-40% correction.
Replies: 22
Views: 2332

Re: Opinions on a large Roth conversion if we have a 30-40% correction.

It makes some sense, but since you have no way to "call the bottom" of a bear market anyway, you might want to split the conversions over two tax years or more to keep your marginal rate from spiking too much. Along with that you might look at the top of the 12% (fed) bracket as a no brainer amount,...
by Alan S.
Wed Oct 10, 2018 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: Double Recharacterization Question
Replies: 3
Views: 240

Re: Double Recharacterization Question

Hi All, I believe I made an error with a re-characterization and not really sure how to fix. Here's the timeline. -Made accidental 2017 rIRA contribution of $600 in March 2017 (was over income limit in 2017) -Re-characterized contribution with earnings a week or so later to tIRA. -Contributed the m...
by Alan S.
Wed Oct 10, 2018 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Additional post-tax 401(k) contribution
Replies: 7
Views: 709

Re: Additional post-tax 401(k) contribution

If a plan fails the ACP test almost every year, it is odd that they would not cap the after tax contributions enough to avoid testing failures. Testing failures cost the employer (processing, 1099R etc) and the employee if excess contributions are returned, but only cost the employer if they make QN...
by Alan S.
Wed Oct 10, 2018 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard not answering their telephone
Replies: 11
Views: 1442

Re: Vanguard not answering their telephone

They are dusting off the "do not panic, stay the course" scripts. Shouldn't be too much dust on them since they were used only last February. In February there was a 10% correction, so this one has a ways to go to get to that point.
by Alan S.
Mon Oct 08, 2018 11:24 pm
Forum: Investing - Help with Personal Investments
Topic: How to fix overfunded Roth IRA due to salary limits
Replies: 8
Views: 712

Re: How to fix overfunded Roth IRA due to salary limits

You can file the 2017 return before the recharacterization is processed, but your explanatory statement regarding the recharacterization will not include the value of the recharacterized contribution actually transferred to the TIRA. But that should not cause any problem as long as the rest of your ...
by Alan S.
Mon Oct 08, 2018 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: ARA Recommendations on RMD Table Revision
Replies: 1
Views: 263

ARA Recommendations on RMD Table Revision

Attached is the letter from the ARA to the IRS containing various recommendations in conjunction with potential RMD table revisions. It appears unlikely that new tables will be effective prior to 2020:

http://asppa-net.org/Portals/2/PDFs/ARA ... 0-5-18.pdf
by Alan S.
Sat Oct 06, 2018 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: Complicated inherited IRA situation
Replies: 8
Views: 1014

Re: Complicated inherited IRA situation

I recently learned of an inherited IRA account that I inherited in 2005. It only has a few thousand dollars. I think it was the profit sharing portion for a company my father worked at for a few years. I believe the issue with the account disappearing was my social security number was off by one di...
by Alan S.
Thu Oct 04, 2018 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: 8606 mess and what to do
Replies: 41
Views: 3997

Re: 8606 mess and what to do

Good. I think this the best choice. Now you do not have to worry about a Fidelity distribution, how much it will be and how they will report it on the 1099R. The amount they would have distributed (5000 plus any gains) would be lost to your retirement accounts. You also will not have additional tran...
by Alan S.
Thu Oct 04, 2018 1:36 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Rollover Guidance
Replies: 10
Views: 620

Re: 401k Rollover Guidance

Not responding to your investment questions, but thought you should know that if you keep the 401k in place then distributions you take from the account prior to 59.5 will be penalty free under the QDRO exception. This penalty exception does NOT apply to IRA accounts. You should ask the 401k adminis...
by Alan S.
Wed Oct 03, 2018 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: 8606 mess and what to do
Replies: 41
Views: 3997

Re: 8606 mess and what to do

I would expect that Fido is not going to issue a rollover check. To them this is an excess contribution calling for a corrective distribution paid to you. It will then be coded on the 1099R as a corrective distribution, with a code (likely Code E) in Box 7 which flags the distribution. In other word...
by Alan S.
Wed Oct 03, 2018 6:54 pm
Forum: Investing - Help with Personal Investments
Topic: Question Regarding SEP-IRA Distributions
Replies: 26
Views: 1089

Re: Question Regarding SEP-IRA Distributions

You can make several types of contributions to a SEP IRA account. Typically, a SEP IRA contribution will be made, but you can also make: 1) A regular non deductible TIRA contribution 2) A deductible TIRA contribution 3) A rollover contribution So it is possible to make a combination of 4 types of co...
by Alan S.
Tue Oct 02, 2018 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: 8606 mess and what to do
Replies: 41
Views: 3997

Re: 8606 mess and what to do

2011 is a closed tax year. The IRS has been accommodating taxpayers for years by accepting old 8606 forms retroactively, but that does not mean you have to ask for that accommodation Pub 590A, page 15 indicates: Failure to report nondeductible contributions. If you don’t report nondeductible contrib...
by Alan S.
Tue Oct 02, 2018 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 403b Roth IRA questions
Replies: 5
Views: 359

Re: Roth 403b Roth IRA questions

Does not sound wise to start Roth 403b contributions. Like any Roth v pre tax choice, if you are in a higher marginal bracket in the current year than you expect to be in retirement, you would elect pre tax contributions. Early retirement is normally a time when your income drops due to wage phaseou...
by Alan S.
Mon Oct 01, 2018 11:04 pm
Forum: Personal Finance (Not Investing)
Topic: RMD Mandate from Rollover/Transfer of Retirement Account
Replies: 13
Views: 1147

Re: RMD Mandate from Rollover/Transfer of Retirement Account

If someone turns 70-1/2 in March 2018 and in February 2018, a few weeks before reaching 70-1/2, a 403(b) account from a previous employer, which is held at Institution A, is liquidated upon request and 100% of the proceeds are sent by check by A to institution B for deposit in a newly established I...
by Alan S.
Mon Oct 01, 2018 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: My biggest mistake - market timing
Replies: 62
Views: 8942

Re: My biggest mistake - market timing

Dear friends, I am here to seek help from the you all again. After going through uncertainty in 2015 and part of 2016, my husband was not comfortable in staying market with the fear of losing our principal. So we pulled out all the investments mainly from 401k and 529 accounts and put them all into...
by Alan S.
Sat Sep 29, 2018 8:51 pm
Forum: Personal Finance (Not Investing)
Topic: ESOP [Help with reporting taxes paid]
Replies: 5
Views: 450

Re: ESOP [Help with reporting taxes paid]

What is notable on the 1099R is that Boxes 2a and 6 indicate that there is no NUA option, apparently because the distribution did not qualify as a lump sum distribution of all similar plans of the employer. Therefore, the 1099R is reported as fully taxable, but Box 7 indicates that you are over 59.5...
by Alan S.
Sat Sep 29, 2018 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Moving rollover IRA into traditional IRA
Replies: 8
Views: 719

Re: Moving rollover IRA into traditional IRA

If you have a >$1mil IRA, and you ever file bankruptcy, not commingling a 401k rollover might provide additional exempt amounts. A contributory IRA is currently protected in bankruptcy for 1.283mm with a 3 year inflation adjustment coming 4/1/2019. A rollover IRA is protected under the same conditi...
by Alan S.
Sat Sep 29, 2018 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Advantage premiums continue to decline while plan choices and benefits increase in 2019
Replies: 17
Views: 1766

Re: Medicare Advantage premiums continue to decline while plan choices and benefits increase in 2019

I am waiting for the HMO pre authorization requirements to go away. This obviously will cause some people to delay treatment, perhaps enough to generate a reduction in the loss ratio that exceeds the added overhead from the gate keeping activities. Another expected benefit is that this is more of a ...
by Alan S.
Sat Sep 29, 2018 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: auto insurance - ??
Replies: 11
Views: 1025

Re: auto insurance - ??

In addition to the main problem, a 50% increase in the remaining auto coverage is ridiculous. Even if 10% of that 50% was due to a general rate increase in this territory, the idea that AAA saved over $300 by also having the HO policy makes no sense. The credit structure for many companies is moving...
by Alan S.
Wed Sep 26, 2018 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Converted IRA below basis, should I convert 401k money?
Replies: 10
Views: 670

Re: Converted IRA below basis, should I convert 401k money?

Note that the partial 401k rollover will work and allow the total basis to be recovered this year. However, if the 401k rollover is not completed due to various circumstances, it does not necessarily mean that some basis is forfeited. Line 14 of the current 8606 will allow that basis to be carried f...
by Alan S.
Wed Sep 26, 2018 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Secondary beneficiary for JTWROS brokerage account
Replies: 24
Views: 1326

Re: Secondary beneficiary for JTWROS brokerage account

You can easily find a custodian to add a beneficiary to a JTWROS or CPWROS account.

Had one with T Rowe Price and currently have one with Schwab. https://client.schwab.com/secure/file/P ... 0-fill.pdf
by Alan S.
Tue Sep 25, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Non-spousal Inherited IRA
Replies: 18
Views: 1410

Re: Non-spousal Inherited IRA

Note that if the RMD plus additional amounts are all used to subsidize increased pre tax contributions to 401k or similar owned accounts, there is no current tax impact because the inherited IRA distribution will be offset by the lower Box 1 W-2 amount. Essentially the money has moved into your own ...
by Alan S.
Sat Sep 22, 2018 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: Roth in-plan conversion questions
Replies: 6
Views: 571

Re: Roth in-plan conversion questions

While not a major issue, there are basis considerations. If you convert while underwater, it is a matter of plan accounting whether they preserve the unrecovered basis for future transactions, or have the unrecovered basis erased. Getting clarification of this question from the plan may not be easy ...
by Alan S.
Sat Sep 22, 2018 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Confused about Roth 401(k) and Roth IRA contributions in the same year
Replies: 6
Views: 706

Re: Confused about Roth 401(k) and Roth IRA contributions in the same year

Yes, you can, but let me clarify your question please. If you make $18,500 + $5,500 as compensation, then it is easy to see. But maybe you are asking the following: If I make only $18,500 this year and my employer (or myself if self-employed), can I contribute not only $18,500 to my Roth 401(k), bu...
by Alan S.
Sat Sep 22, 2018 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Improper Distribution from After-Tax 401k to Roth (Mega Backdoor)
Replies: 6
Views: 712

Re: Improper Distribution from After-Tax 401k to Roth (Mega Backdoor)

That's an interesting question about the plan documents. I must have missed it or something, because when I was trying to confirm what I was being told about the in-service rollovers a couple of years ago, I couldn't find anything about them. So, I'm honestly not that surprised, but I would have th...
by Alan S.
Fri Sep 21, 2018 10:02 pm
Forum: Personal Finance (Not Investing)
Topic: Improper Distribution from After-Tax 401k to Roth (Mega Backdoor)
Replies: 6
Views: 712

Re: Improper Distribution from After-Tax 401k to Roth (Mega Backdoor)

If it turns out that the plan only allowed one such distribution per year from the after tax sub account, and then requested the additional distribution to be returned, then any taxable amount shown in Box 2a on the E coded 1099R should be reversed once the plan is repaid. That said, it is possible ...
by Alan S.
Wed Sep 19, 2018 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA or convert to non-IRA cash
Replies: 6
Views: 409

Re: Inherited IRA or convert to non-IRA cash

Yes, her year of death RMD was completed. Beneficiaries must take their first beneficiary RMD no later than 12/31/2019. That is also the deadline for the beneficiaries to create separate inherited IRA accounts under which each one can use their own age in 2019 to determine their RMD. If the separate...
by Alan S.
Wed Sep 19, 2018 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: Can I reverse a TIRA/Roth IRA distribution and not pay taxes?
Replies: 4
Views: 394

Re: Can I reverse a TIRA/Roth IRA distribution and not pay taxes?

That 60 days is a hard and fast rule of 60 calendar days. Includes Saturdays Sundays and Holidays. Except the last such day. Sec 7503 applies to this. Eg. 60th day is on Saturday. You have until the following Monday unless Monday is a Holiday, then Tuesday. https://www.law.cornell.edu/uscode/text/2...
by Alan S.
Wed Sep 19, 2018 7:31 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA or convert to non-IRA cash
Replies: 6
Views: 409

Re: Inherited IRA or convert to non-IRA cash

Bobby, that makes sense. The beneficiaries are the individuals - children who survived her per stirpes. Thanks for the quick reply. Even if the estate HAD BEEN the IRA beneficiary, this would not work. If the executor cashed out the inherited IRA, that income would NOT be reportable on the decedent...
by Alan S.
Wed Sep 19, 2018 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: Mechanics of IRA Rollover w/ Tax Basis into Employer Plan
Replies: 14
Views: 803

Re: Mechanics of IRA Rollover w/ Tax Basis into Employer Plan

Yes, your math and Form 8606 assumptions are correct. However, there is now a risk of converting to Roth before the 401k accepts the pre tax rollover. Should the 401k decline to accept the rollover for whatever reason (eg your TIRA has accepted regular IRA contributions and is not a rollover IRA), y...
by Alan S.
Tue Sep 18, 2018 7:19 pm
Forum: Investing - Theory, News & General
Topic: Robert Shiller interview: "Market could get a lot higher"
Replies: 28
Views: 4636

Re: Robert Shiller interview: "Market could get a lot higher"

The best plan is to train yourself to entirely ignore all "gurus". Any gut feelings they have can always be supported by some chart or comparison to some point in market history. Yes, almost anything "could happen". Everyone knows that, they just have no idea as to when. Neither do the gurus, few of...
by Alan S.
Tue Sep 18, 2018 3:05 pm
Forum: Investing - Help with Personal Investments
Topic: rmd for IRAs at multiple institutions
Replies: 18
Views: 1252

Re: rmd for IRAs at multiple institutions

This wasn't part of your question but if you 'only just' turned 70 then you do not turn 70.5 until 2019, so there is no RMD requirement until next year at the earliest. Yes, 70.5 to the day determines the first IRA distribution year. Moreover, that first distribution year RMD can be deferred to as ...
by Alan S.
Tue Sep 18, 2018 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Chase Bank used to be more customer focused
Replies: 46
Views: 6099

Re: Chase Bank is the Devil

When I left my bank after having an account for 40 years, they did not even send me a letter to ask why I was leaving. They also never sent any offers to have me return to them. Apparently, they did not care. Same here. 40 years with large nationwide bank. Left it 10 years ago due to their detached...
by Alan S.
Tue Sep 18, 2018 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: $4900.00 INHERITED IRA
Replies: 9
Views: 925

Re: $4900.00 INHERITED IRA

There is always a hybrid solution. For example, you could: 1) Take annual RMDs until it becomes too much of a hassle, then cash it out. 2) If you cash it out, even though the amount is small, if a total lump sum will spill over into a higher bracket you could cash it out over 2 years, 1/2 each year....
by Alan S.
Tue Sep 18, 2018 1:04 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Rollover tax question.
Replies: 5
Views: 294

Re: 401K Rollover tax question.

This is probably a simple question. I have a 401k from a former employer with $2,100 in it as of now. I want to roll this over to current employers plan. New employers plan will accept this, but it has to be a check sent to them from old plan. The old plan is through wells fargo, I have only found ...
by Alan S.
Tue Sep 18, 2018 11:35 am
Forum: Investing - Help with Personal Investments
Topic: $4900.00 INHERITED IRA
Replies: 9
Views: 925

Re: $4900.00 INHERITED IRA

What are ways to deal with a $4900 Inherited IRA at Charles Schwab? The owner was born 1922, died 2017, and the non spouse inheritor in 1950. RMD's would be $275 and the RMD calculator takes the Traditional IRA out 20 years. $2000 is in CD's that mature in 12 months and the rest cash. Once the acco...
by Alan S.
Sun Sep 16, 2018 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: I see now why Rollovers can take FOREVER ....
Replies: 74
Views: 7895

Re: I see now why Rollovers can take FOREVER ....

In some cases it might be easier to just request a distribution and do a 60 day rollover. That way, if something goes wrong it will not involve more than one institution at a time. If the account is small you can work around the mandatory 20% withholding on qualified plans easily enough. For qualifi...
by Alan S.
Sat Sep 15, 2018 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: CP2000 - rollover Vanguard IRA to TSP
Replies: 11
Views: 766

Re: CP2000 - rollover Vanguard IRA to TSP

There was another similar thread about this problem last week. The 1040 Inst. clearly state that you should include an explanatory statement with your return when you roll over IRA money into a qualified plan. This is necessary because the IRS matching program for 1099R and 5498 forms will not work ...
by Alan S.
Fri Sep 14, 2018 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Wolters Kluwer announces 2019 Inflation Adj
Replies: 5
Views: 1161

Wolters Kluwer announces 2019 Inflation Adj

These figures are not official, however these people have an excellent record for accuracy in their annual projections. Highlights include: regular IRA contribution limits rising to 6,000. Catch up remains at 1,000. Tax brackets now adjusted using CHAINED CPI U Joint standard deduction rising to 24,...
by Alan S.
Thu Sep 13, 2018 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor question - from 401(k) to Roth IRA without intermediary traditional IRA?
Replies: 11
Views: 957

Re: Mega Backdoor question - from 401(k) to Roth IRA without intermediary traditional IRA?

It has been reported that several of these plans will not do a direct rollover to a Roth IRA, and instead require that the mega back door Roth rollover be made to the designated Roth account (in plan Roth rollover or IRR). As indicated by spiritrider and Earl, a distribution made to the participant ...
by Alan S.
Thu Sep 13, 2018 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Help w/ Backdoor Roth IRA tax forms
Replies: 6
Views: 590

Re: Help w/ Backdoor Roth IRA tax forms

Hi everyone. Can someone help me with how I should go reporting to the IRS for the situation below? I know I have to fill out form 8606, but I'm really confused on how to handle the transactions from 4/15/14 to 10/24/16. Thanks! 4/15/14: made a $5500 Roth IRA contribution for the 2014 tax year. Thi...
by Alan S.
Wed Sep 12, 2018 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: Double Step Up for Beneficiary??
Replies: 3
Views: 308

Re: Double Step Up for Beneficiary??

Is the SNT created under her will, or previously where your brother never owns any of these assets individually? If so, that is far better than having him fund the trust with his own money or money he inherited individually. The latter would result in the SNT being a "self settled trust". Such a tru...
by Alan S.
Wed Sep 12, 2018 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor question - from 401(k) to Roth IRA without intermediary traditional IRA?
Replies: 11
Views: 957

Re: Mega Backdoor question - from 401(k) to Roth IRA without intermediary traditional IRA?

I have been doing a Mega Backdoor Roth for many years. At some point, I understood that the 401(k) roll over of an in-service distribution of the after-tax 401k portion to a traditional IRA was no longer necessary? Instead, I could just deposit the proceeds of the in-service withdrawal directly int...
by Alan S.
Wed Sep 12, 2018 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor question - from 401(k) to Roth IRA without intermediary traditional IRA?
Replies: 11
Views: 957

Re: Mega Backdoor question - from 401(k) to Roth IRA without intermediary traditional IRA?

I have been doing a Mega Backdoor Roth for many years. At some point, I understood that the 401(k) roll over of an in-service distribution of the after-tax 401k portion to a traditional IRA was no longer necessary? Instead, I could just deposit the proceeds of the in-service withdrawal directly int...
by Alan S.
Tue Sep 11, 2018 12:19 pm
Forum: Investing - Theory, News & General
Topic: Possible Change to RMDs? [Executive order]
Replies: 47
Views: 6216

Re: Possible Change to RMDs? [Executive order]

For those of us dealing with RMDs on inherited IRAs wonder if they'll let us recalculate as our factors are set on date of death. When the 2002 tables were released, the divisor for inherited IRAs (single life table) was then determined by applying the 1.0 annual divisor reduction to the revised fi...