Search found 13493 matches
- Wed Feb 12, 2025 7:02 pm
- Forum: Personal Finance (Not Investing)
- Topic: Homeowners Insurance content replacement number
- Replies: 10
- Views: 675
Re: Homeowners Insurance content replacement number
Just received my Homeowners policy renewal and they are increasing it from about 1240 to 1650.
American Family through Costco in California.
We live in an area with zero wildfire risk.
My question pertains to the inside the house content replacement. Furniture, clothes, electronics, etc.
We live in a 1350 sq ft house and the policy listed it at $390,000 for the content replacement.
I started thinking how ridiculous that number is, at least for us or actually anyone unless they have priceless art or something.
Just taking a quick ballpark survey, I am estimating about 40 to 50,000.
I forgot to ask the agent if it included flooring, showers, sinks and such but I am thinking no on that. I am assuming that would be part of rebuilding the ...
- Mon Feb 10, 2025 10:00 pm
- Forum: Personal Finance (Not Investing)
- Topic: Net Unrealized Appreciation - capital gains
- Replies: 4
- Views: 583
Re: Net Unrealized Appreciation - capital gains
I had a very low cost basis in some old company stock and so, just before the year when I would start taking RMDs, I closed out my old 401K and moved the stock into a taxable brokerage account and rolled all the rest into an IRA. I am about to pay ordinary income taxes on the cost basis. I was tempted to also sell some of that company stock but quickly realized that, the tail end of the ordinary income was starting to curtail the sizable QBI deduction I get for my Schedule C activities. With that ordinary income out of the way, I expect I can sell some of the company stock each subsequent tax year and not threaten the QBI deduction. It will take quite a few years to sell it all but I guess I can live with that. Please let me know if some ...
- Mon Feb 10, 2025 8:02 pm
- Forum: Personal Finance (Not Investing)
- Topic: 401K roth to traditional IRA Rollover mistakes: how to fix?
- Replies: 84
- Views: 12079
Re: 401K roth to traditional IRA Rollover mistakes: how to fix?
yes everything looks good. Fidelity told me that "the transaction will be reported on IRS Form 1099-R, which will be mailed to you next January. You also may be required to file IRS Form 5329 with your tax return." Looks like I don't need to do anything until next year to file tax? it's more than 60 days rollover, but they count it as "rollover 60 day" because the computer system will reject "Direct rollover contribution".
If you got back a small amount of gains with the corrective distribution, those gains must be reported as taxable income on your 2024 return because you made the excess contribution to the TIRA in 2024. The 5329 shows exception code "21" on line 2, which waives the 10% penalty on that small amount of gain.
And the ...
- Mon Feb 10, 2025 5:38 pm
- Forum: Personal Investments
- Topic: NUA Question- are reinvested shares eligible?
- Replies: 6
- Views: 556
Re: NUA Question- are reinvested shares eligible?
Do you have a choice for partial and still rake advantage of NUA?
usually one can choose the number of shares, but I'm not sure if you can do it by lot or need to use average cost
Most plans use average cost, but you can still utilize NUA on only a portion of the employer shares. The rest would either be sold in the plan or rolled to an IRA where they could be sold tax free for diversification purposes.
But if the plan allows the use of different cost basis on various lots, it may be beneficial to select only the lowest cost basis shares for NUA because your total taxable cost per share will be less (the amount in Box 2a of the 1099R). These lower cost basis shares are therefore more beneficial for NUA use and the higher cost ...
- Mon Feb 10, 2025 5:16 pm
- Forum: Personal Finance (Not Investing)
- Topic: 401K roth to traditional IRA Rollover mistakes: how to fix?
- Replies: 84
- Views: 12079
Re: 401K roth to traditional IRA Rollover mistakes: how to fix?
Yes, the gain on the return of excess must remain in a non retirement account (eg your checking or savings account). If there were gains, I assume the 160k was rolled into your Roth IRA?spinli wrote: Mon Feb 10, 2025 11:00 am hi, Alan! Looks like i have solved all the issues about my Rollover IRA switching to Roth IRA. I just got a check from Fidelity and it's a check of the final distribution of the yields from my Rollover IRA after the switch. it's just a few hundred dollars, and i plan to put it in my non-retirement account as a withdraw and pay the tax. is it ok? i just don't want to do the switch again as its too stressful. Thanks.
Did you receive the 1099R coded H, and is that the amount that was rolled into your Roth IRA?
- Mon Feb 10, 2025 11:51 am
- Forum: Personal Finance (Not Investing)
- Topic: 1099 for direct rollover of IRA to SPIA
- Replies: 12
- Views: 785
Re: 1099 for direct rollover of IRA to SPIA
Then the 1099R is incorrect and should not have been issued. You should ask that it be rescinded.
Alan S. frequently points out that a tax form shouldn't have been generated for a rollover (even to another tax-deferred account at the same custodian). But the custodians still generate them anyways. They are not going to "rescind" them even if there is no tax consequence. (They have no idea what else is on your tax return. I've also never noticed a post here where the customer was able to get an outgoing 1099-R rescinded.) In fact, if I was the withdrawal custodian, I would generate the form to protect my company in case the new custodian put the money in Roth or Taxable.
But I don't see any problem since both forms are consistent in ...
- Mon Feb 10, 2025 11:41 am
- Forum: Personal Finance (Not Investing)
- Topic: 1099 for direct rollover of IRA to SPIA
- Replies: 12
- Views: 785
Re: 1099 for direct rollover of IRA to SPIA
The SPIA is in an IRA at Nationwide. Funds went directly from Met Life to Nationwide.
The magic words are "qualified plan."
I rolled over my IRA to a qualified plan and received no 1099R from Vanguard.
I was perfectly ready to report it if they had sent one but it was not a taxable event because a qualified plan is comparable to a trad IRA.
But a custodian will rarely take a position on taxability.
An IRA direct rollover to a qualified plan is required to be reported on a 1099R, code G. And that must also be reported on your tax return with an explanatory statement.
Or a distribution and rollover rather than a direct rollover should also be reported on a 1099R, code 1 or 7 (after 59.5).
If VG never issued a 1099R ...
- Sun Feb 09, 2025 9:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: 1099 for direct rollover of IRA to SPIA
- Replies: 12
- Views: 785
Re: 1099 for direct rollover of IRA to SPIA
OK, if you are factoring in the amount in Box 2a that should not be there and still do not have to file.Ret2018 wrote: Sun Feb 09, 2025 9:00 pmHalf of social security and other income is less than 25K, so no return will be filed.Alan S. wrote: Sun Feb 09, 2025 7:41 pm
Then the 1099R is incorrect and should not have been issued. You should ask that it be rescinded. Then you will not have to report the transfer on your return. Isn't your tax program questioning the entry for the 1099R that you received?
- Sun Feb 09, 2025 7:41 pm
- Forum: Personal Finance (Not Investing)
- Topic: 1099 for direct rollover of IRA to SPIA
- Replies: 12
- Views: 785
Re: 1099 for direct rollover of IRA to SPIA
There is a conflict with your info which could lead to problems filing your return.
Is the nationwide SPIA that received the rollover in an IRA or qualified plan? While it would be rare for it to be purchased in a qualified plan using rollover IRA money, that's the only scenario for which this 1099R could be correct.
If the SPIA is in an IRA, a 1099R should not have been issued at all as the funds would have moved by non reportable direct transfer.
Please clarify these questions.
The SPIA is in an IRA at Nationwide. Funds went directly from Met Life to Nationwide.
Then the 1099R is incorrect and should not have been issued. You should ask that it be rescinded. Then you will not have to report the transfer on your return. Isn't ...
- Sun Feb 09, 2025 6:24 pm
- Forum: Personal Investments
- Topic: NUA Question- are reinvested shares eligible?
- Replies: 6
- Views: 556
Re: NUA Question- are reinvested shares eligible?
[This thread has been split from a previous thread https://www.bogleheads.org/forum/viewtopic.php?t=435225 as it is a new question. Moderator Pops1860]
I have a question that i can't find a clear pronouncement on. I will be doing NUA on the Msft shares that i have in my 401K (since 2002!). My question is are the subsequent shares accumulated through dividend reinvestment eligible for NUA treatment? Given that i have held onto these shares for so long, the quantity of the reinvestment shares are nearly as big as the original shares purchased in my 401K.
So, are all of the shares i have eligible, or just the originally purchased shares?
Dividends on the employer shares reinvested in more shares within the plan prior to the LSD are ...
- Sun Feb 09, 2025 6:00 pm
- Forum: Personal Finance (Not Investing)
- Topic: 401K roth to traditional IRA Rollover mistakes: how to fix?
- Replies: 84
- Views: 12079
Re: 401K roth to traditional IRA Rollover mistakes: how to fix?
Tax time question hoping Alan S. will share his wisdom.
Tax software is asking me if my retirement savings credit amounts are correct (I have contributed less in the 2024 tax year than I had to remove due to my mistake of depositing ROTH funds into a TIRA). On this section, it asks if I took any distributions from an IRA since 2022. The answer to this is yes?
1.Is a corrective action such as what I did (mingled accounts of ROTH and TIRA funds, removed them before tax deadline, paid income tax on the gains, etc.) a distribution that should be reported here? I have made 2 of these errors: one in 2023 and one in 2024 ((both errors happened in 2023 but due to the lengthy process of convincing two financial institutions to remove the money ...
- Sun Feb 09, 2025 5:23 pm
- Forum: Personal Finance (Not Investing)
- Topic: 1099 for direct rollover of IRA to SPIA
- Replies: 12
- Views: 785
Re: 1099 for direct rollover of IRA to SPIA
The 1099R received from Met Life for direct rollover to Nationwide to purchase a period specific immediate annuity lists the complete distribution amount in Box 1 (gross distribution); the complete distribution amount in box 2a (taxable amount); box 2b (taxable amount not determined) is checked; the code in box 7 (distribution code) is G (direct rollover); and the IRA box is checked.
I looked at the instructions for completing 1099R. Based on those instructions, it seems that box 2b should have been zero (taxable amount). Is the fact that "taxable amount not determined" is checked sufficient? Or do I need to get Met Life to send a corrected 1099R with zero taxable amount in box 2b? I don't want to have a problem with the IRS.
FWIW ...
- Sat Feb 08, 2025 6:20 pm
- Forum: Personal Finance (Not Investing)
- Topic: 1099-R question (inherited annuity)
- Replies: 13
- Views: 940
Re: 1099-R question (inherited annuity)
Do you know when the NQ annuity was annuitized? If before all the earnings were distributed, there should have been some earnings included in the annuity payouts.fourier wrote: Sat Feb 08, 2025 4:44 pmWell, that would be a surprise. I guess I need to call them. I can't say I was in a great state of mind when this all went down, so maybe I misunderstood something. But I do have an exact dollar amount written down for how much of the funds are taxable. I thought they had told me this number. Maybe I made it up!Stinky wrote: Sat Feb 08, 2025 2:35 pm
That would be my guess.
On a taxable annuity, gains are distributed (and taxed) first, followed by basis. So if the decedent withdrew all the income, then OP’s withdrawal could be all non-taxable return of basis.
Thanks for the help.
- Sat Feb 08, 2025 6:16 pm
- Forum: Personal Finance (Not Investing)
- Topic: Asset Protection in California
- Replies: 48
- Views: 5555
Re: Asset Protection in California
I did some research on some of the topics in this thread and here are the results. IANAL and I am interested if I’m wrong or simplified too much.
As mentioned above the California Homestead, i.e. house, exemption is indexed for inflation. These very depending on the county average home price but with housing price so high in California. I think they’re applicable to almost any house and certainly to my Silicon Valley house. The 2025 amounts are.
2025 cap $722,507
2025 floor $361,076
https://los-angeles-bankruptcy.net/california-homestead-exemption/
In California, the assets in an IRA are treated differently from retirement funds, which are subject to the federal ERISA law
Which Retirement Funds Can Be Exposed to Creditors?
Not ...
- Sat Feb 08, 2025 4:23 pm
- Forum: Personal Investments
- Topic: Can you surrender an annuity after drawing payments?
- Replies: 9
- Views: 957
Re: Can you surrender an annuity after drawing payments?
Thanks - Maybe I was just misunderstanding whether we're still in the accumulation phase or not. The Annuity Commencement Date is in 2058, but there's an income benefit rider that's permitted withdrawals since 2023. I spoke with a rep at the financial provider and they said we can surrender for the cash value, so must be the case that we're not in the payout phase yet (notwithstanding the income rider permitting annual payments). Do I have that generally right?
You can surrender it, but what you will get back in relation to what you paid will sting due to the high surrender fees. These contracts are designed so that the insurance company rarely takes a loss (exception being the 2008 financial crisis).
You have not annuitized, but if ...
- Sat Feb 08, 2025 3:49 pm
- Forum: Personal Finance (Not Investing)
- Topic: [Form 8606 question]
- Replies: 13
- Views: 1001
Re: [Form 8606 question]
[OP initially reopened thread https://www.bogleheads.org/forum/viewtopic.php?t=428761 , but this is a new question, so a new topic started. Moderator Pops1860]
Hi, I completed an 8606 form for tax year 2024 but I don’t think I did it correctly. Could anyone look at the numbers below which are from the 8606 form and let me know. Shouldn’t I be owing taxes on the 401K conversion to Roth IRA? If so, why is line 18 only showing $1?
a. In 2024, I contributed $7K into my traditional IRA, then immediately converted that amount to my Roth IRA.
b. In 2024, I left my job and converted $42,686.10 from my pre-tax 401K to my traditional IRA then to my Roth IRA.
Below lines are from form 8606:
Line 1: $49,686
Line 2: $0 because last year I did a ...
- Sat Feb 08, 2025 1:51 pm
- Forum: Personal Finance (Not Investing)
- Topic: Is my Roth still valid after a direct pretax transfer?
- Replies: 7
- Views: 403
Re: Is my Roth still valid after a direct pretax transfer?
I did not make any Roth contributions that year and Vanguard does not show any contributions. All they show is the 5498.
Unfortunately, I paid the tax on the conversion in a 1040X mail in. I just added 60K to my taxable income, put that on the 1040X, and and paid it.
On my IRS transcript is shows the total amount of taxable income (including the 60K) and shows my income (totaling that amount less 60K) but never makes reference to that amount again.
Can I 1040x a second time, now in 2025 for 2019? I would include a 8606? Total tax amount would remain constant. I would first like to be able to check on the status of the account directly with the IRS. Maybe another amendment is not necessary.
As long as the 2019 5498 shows that your Roth ...
- Sat Feb 08, 2025 1:13 pm
- Forum: Personal Finance (Not Investing)
- Topic: 1099-R question (inherited annuity)
- Replies: 13
- Views: 940
Re: 1099-R question (inherited annuity)
And is the box for 'taxable amount not determined' checked? It should be. And there should be an amount in box 9b for employee contributions.
It is not checked and there is nothing in 9b. Very annoying.
Amazingly my second form from them is for an inherited IRA annuity. This one shows that the full distribution amount is equal to the taxable amount (as it should be) but then the 2b box is checked, which makes no sense because the taxable amount is very much determined in that case. It is the full amount.
For the non IRA annuity that the issuer was able to determine the taxable amount, and 2a is blank, that could indicate that the owner withdrew all the gains, so what is left are the contributions (aka investment in the contract ...
- Fri Feb 07, 2025 7:56 pm
- Forum: Personal Finance (Not Investing)
- Topic: IRA excess contribution mistake. Should I amend?
- Replies: 2
- Views: 376
Re: IRA excess contribution mistake. Should I amend?
Hi, I had contributed to Roth IRA for myself and to Traditional IRA for my wife. Later realized that I was above the income limits and removed the excess contributions. Because of the gains before removal, we had taxable amount of =~$800 for me and =~$300 for my wife's account. We both received 1099-R. While filing taxes through TurboTax, I must have mistakenly identified both of the 1099-Rs as mine. So I see only one Form 5329 on my name with the combined amount of $1100, and nothing for my wife. I filed last week and both my Federal and State returns were accepted and the amount was also withdrawn from my bank account since I owed taxes.
Should I amend my return even though it doesn't change any of the amounts? Should I leave it and ...
- Fri Feb 07, 2025 7:44 pm
- Forum: Personal Finance (Not Investing)
- Topic: Form 1099 R box 1 vs 5 discrepancies
- Replies: 3
- Views: 753
Re: Form 1099 R box 1 vs 5 discrepancies
For the Roth 401k direct rollover (Code H 1099R), Box 5 of that form shows the contributions you made to the Roth 401k. The difference between that figure and Box 1 are the gains that were included in the rollover.
Your Roth IRA contribution basis is therefore increased by 49,000. You need to track this amount in order to report any future Roth IRA distributions before your Roth IRA is qualified.
Your Roth IRA contribution basis is therefore increased by 49,000. You need to track this amount in order to report any future Roth IRA distributions before your Roth IRA is qualified.
- Fri Feb 07, 2025 4:30 pm
- Forum: Personal Finance (Not Investing)
- Topic: QCD Distribution and Tax implication
- Replies: 6
- Views: 510
Re: QCD Distribution and Tax implication
When you complete the 8606 for your IRA distributions, note that the QCD amount is not included with the distribution amount on line 7. The result is that your IRA basis is only applied to the non QCD portion, which leaves the QCD consisting solely of pre tax funds.
- Fri Feb 07, 2025 1:42 pm
- Forum: Personal Finance (Not Investing)
- Topic: Meeting safe harbor and avoiding under-payment penalty
- Replies: 8
- Views: 1071
Re: Meeting safe harbor and avoiding under-payment penalty
My plan for 2025 is to take monthly IRA distributions but not withhold federal or state taxes until the distribution in December. In December, I would withhold sufficient funds to meet safe-harbor requirements and avoid an IRS under-payment penalty.
My questions have to do with the amount of withholding taken from the December IRA distribution.
Let’s say that my 2024 AGI was over $150K. If my AGI in 2025 is only $100K do I still need to withhold 110% of my 2024 federal tax liability to avoid an IRS under-payment penalty for 2025 and meet safe-harbor requirements?
Would I meet safe-harbor requirements if the December withholding was sufficient to meet my 2025 tax liability instead (taxes on $100K AGI) – and avoid an under-payment ...
- Thu Feb 06, 2025 5:49 pm
- Forum: Personal Finance (Not Investing)
- Topic: pre-SECURE Act - successor beneficiary and 10-year rule
- Replies: 2
- Views: 309
Re: pre-SECURE Act - successor beneficiary and 10-year rule
Child's spouse is subject to the 10 year rule, but also must continue the RMD schedule child was using, reducing the divisor by 1.0 each year. Child's spouse must also complete the year of death RMD if child did not do so before passing.Hector wrote: Thu Feb 06, 2025 2:10 pm Original IRA owner passed away pre-SECURE Act
Child inherited IRA and was taking RMD. Child was older than 73.
Child passed away and child's spouse inherited IRA(successor beneficiary). Child's spouse is older than 73.
What are the withdrawal rule?
The age and relationship of the successor beneficiary to the beneficiary is irrelevant.
- Wed Feb 05, 2025 6:47 pm
- Forum: Personal Investments
- Topic: RMD and Rollover
- Replies: 12
- Views: 1177
Re: RMD and Rollover
The thing I was wondering if I were to die in that 73 year? And the answer apparently is you still must take the entire RMD anyways. Not planning on it, but seems to say just take the RMD Jan-1 and be done with it.
Not necessarily. You must consider your RBD, the required beginning date for RMDs. Your RBD is 4/1 of the year following the year you reach RMD age. So if you will reach 73 this year, and you pass prior to 4/1/2026 there will be no RMD due for 2025 or for 2026.
Therefore, if you are in poor health and take your RMD early in your first RMD year to get it out of the way, and then pass prior to 4/1 of the following year, that RMD will be taxable on your return for age 73, when it could have been avoided. But that does not mean ...
- Wed Feb 05, 2025 4:52 pm
- Forum: Personal Investments
- Topic: 1099-Q for roth conversion
- Replies: 16
- Views: 3307
Re: 1099-Q for roth conversion
Hi, I have a Fidelity 529 account for my son and I did a direct Roth conversion to my Son's Roth IRA in 2024.
I received a 1099-Q to me from fidelity, it had correct values for Box 1,2,3. Box 4 trustee-to-trustee was checked
Box 5 was state and Box 6 was checked (I think its wrong as money was transferred to beneficiary)
so I emailed fidelity to fix the Box 6 (uncheck it) and send a new 1099-Q to my son's name
After a week or so, I got a new 1099-Q from fidelity, In this form Box 1,2,3 are 0 (zero) and rest is same - Box 4,5,6 are checked.
I was expecting them to uncheck box 6 and address form to my son but they didn't.
What to do now ? ask them to fix again ? is it ok to have zero for Box 1,2,3 (meaning nothing to report) ??
TIA for ...
- Wed Feb 05, 2025 2:37 pm
- Forum: Personal Investments
- Topic: deductible and non deductible Contributions in TIRA
- Replies: 6
- Views: 616
Re: deductible and non deductible Contributions in TIRA
Hi all,
looking for advice - bit of a novice.
I have deductible and non deductible contributions in a TIRA.
I have the basis but with market going up in the last couple of years there's a big gap between basis and what it's now worth.
trying to do a backdoor Roth, what are my options?
Roll it all into 401k, (effectively paying tax twice on some contributions) creating a zero balance in TIRA and begin Roth Contributions?
use basis to allocate to Roth and traditional IRA? How do I do this, won't I still be taxed on growth of account as market has gone up?
I know I know, it's my own fault, inaction has lead to this problem but now time to put right.
Any advice appreciated
You could roll the pre tax balance in your IRA to your ...
- Wed Feb 05, 2025 1:58 pm
- Forum: Personal Investments
- Topic: Can I roll Roth IRA Funds into A Roth 401K?
- Replies: 3
- Views: 366
Re: Can I roll Roth IRA Funds into A Roth 401K?
Rolling any IRA funds into a Roth 401k is not allowed. See IRS rollover chart below:
https://www.irs.gov/pub/irs-tege/rollover_chart.pdf
https://www.irs.gov/pub/irs-tege/rollover_chart.pdf
- Tue Feb 04, 2025 5:00 pm
- Forum: Personal Finance (Not Investing)
- Topic: My Condo's HOA (in California) fire insurance is being non renewed
- Replies: 15
- Views: 3067
Re: My Condo's HOA (in California) fire insurance is being non renewed
Currently dealing with a similar issue. My condo (townhouse of 13) master policy was dropped sometime in early 2024. The HOA never told anyone, so I'm trying to figure what to do in this situation. I have walls in coverage on my townhouse, but I'm trying to see if I can do anything on the individual level to protect myself? I'm also in California and insurance here is a mess.
Sounds like in addition to the insurability issue, the directors of the HSA have been totally negligent in not disclosing the loss of coverage. They probably have been seeking replacement coverage, but that's no excuse for concealing the situation just to avoid unpleasant contacts with the unit owners. Collateral damage is probably that no one wants to be a ...
- Tue Feb 04, 2025 2:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: Self Directed IRA - avoiding self-dealing with complementary businesses
- Replies: 2
- Views: 987
Re: Self Directed IRA - avoiding self-dealing with complementary businesses
It appears this isn't quite as theoretical as I thought, based on the forum move - my apologies. In case it's not clear, I don't run a golf shop, it just seemed like a fairly benign way to describe the complementary nature of the two businesses reasonably well. To clearly eliminate UBIT issues, perhaps a better thought experiment design might be if I run a shop that sells and rents a rather extensive collection of 'exotic' products and equipment for adult use, and my SDIRA owns 'specialty' vacation homes with various interesting themes in which to enjoy said products and digitally preserve the memories of those experiences.
I'm just trying to explore whether it's realistically possible to avoid self-dealing when operating two closely ...
- Tue Feb 04, 2025 12:51 pm
- Forum: Personal Finance (Not Investing)
- Topic: Hypothetical QDRO for alimony
- Replies: 4
- Views: 551
Re: Hypothetical QDRO for alimony
QDROs apply to qualified plans, not IRAs.OKOKOK wrote: Tue Feb 04, 2025 12:13 pm Hypothetical:
Given: Lived in Colorado, moved to Mexico. Colorado court says pay alimony. Funds are at Vanguard.
Can Vanguard be court ordered to take $ from my Vanguard a) personal IRA, or b) personal, non-joint taxable account?
Thanks,
However, a court order can be obtained to split your IRA "incident to divorce" and whatever portion of your IRA awarded would be transferred to your ex in a non taxable transfer. An actual divorce is not required to secure the court order.
The taxable brokerage could also be affected by a marital settlement.
- Tue Feb 04, 2025 11:34 am
- Forum: Personal Finance (Not Investing)
- Topic: Has anyone successfully logged into Free File Fillable forms for 2024 tax year?
- Replies: 22
- Views: 3002
Re: Has anyone successfully logged into Free File Fillable forms for 2024 tax year?
Just received the confirming e mail of acceptance by the IRS. It took 6 days after the e file transmitted. This is not normal, as there was likely a glitch that was corrected.Alan S. wrote: Mon Feb 03, 2025 12:09 pmExact same situation for me as I posted above. Sounds like the acceptance e mail may not be going out like it should, but as long as the site reports that the return was accepted, that's all that matters.beedotdeedot wrote: Mon Feb 03, 2025 11:35 am I completed a submission of my 2024 return on 1/30/25 and received an email pretty quickly saying my return was queued for transmission, and to look for an email in a couple of days saying whether it was accepted or rejected. Have not (yet) received the expected email, but the FFFF website reported that my return was accepted a day or two ago.
- Mon Feb 03, 2025 8:02 pm
- Forum: Personal Investments
- Topic: Pre-Tax Gov. 457B to Post Tax 457 Roth tax penalty question
- Replies: 3
- Views: 328
Re: Pre-Tax Gov. 457B to Post Tax 457 Roth tax penalty question
Good evening,
I'm considering rolling a Gov. Pre-Tax 457B account into a newly offered plan by my employer called a Post-Tax 457 Roth account. What kind of tax penalties will I be facing? There's roughly 100K in pre-tax account. I would love to put it all in the Roth. I was told the rollover would be treated as taxable annual income for the year it was transferred. That would be a huge tax hit for me. If so, would it make more sense to let the old plan stagnate and start the Roth plan from scratch with future deferred compensation? Thank you.
You should not roll 100k of pre tax money into the 457b Roth even if you could, due to the tax hit you would incur.
However, the current 457b probably has an empty pre tax sub account with it ...
- Mon Feb 03, 2025 12:09 pm
- Forum: Personal Finance (Not Investing)
- Topic: Has anyone successfully logged into Free File Fillable forms for 2024 tax year?
- Replies: 22
- Views: 3002
Re: Has anyone successfully logged into Free File Fillable forms for 2024 tax year?
Exact same situation for me as I posted above. Sounds like the acceptance e mail may not be going out like it should, but as long as the site reports that the return was accepted, that's all that matters.beedotdeedot wrote: Mon Feb 03, 2025 11:35 am I completed a submission of my 2024 return on 1/30/25 and received an email pretty quickly saying my return was queued for transmission, and to look for an email in a couple of days saying whether it was accepted or rejected. Have not (yet) received the expected email, but the FFFF website reported that my return was accepted a day or two ago.
- Mon Feb 03, 2025 11:19 am
- Forum: Personal Finance (Not Investing)
- Topic: Efile taxes now or wait in case of revised 1099R
- Replies: 23
- Views: 1262
Re: Efile taxes now or wait in case of revised 1099R
What type of plan is this 1099R distribution from? Would be helpful to determine why the taxable amount would differ in relation to the total distribution and how much it differs.JayB wrote: Mon Feb 03, 2025 9:20 amDefinitely a 1099R, and a different taxable amount than last year (or other years).Alan S. wrote: Mon Feb 03, 2025 9:11 am Revised 1099R forms are very rare. Are you sure it was not a 1099DIV?
If a 1099R and it looks the same as his last year's, file now.
I will probably file now and apply the refund to 2025 Estimated taxes. If I get a revised 1099R, I will then file an amended return, which may adjust the refund. However, the refund applied to 2025 taxes is large enough that there should not be any 2024 underpayment penalty, even if that amount is revised.
- Mon Feb 03, 2025 10:33 am
- Forum: Personal Finance (Not Investing)
- Topic: 401K Direct Transfer to IRA's (ROTH and Traditional)
- Replies: 2
- Views: 390
Re: 401K Direct Transfer to IRA's (ROTH and Traditional)
I have a 401K from a former employer (I’m retired and turning 73 in 2026). Vanguard is the administrator. Total value is $735K. $35K is after tax contributions. $700K is pre tax employee contributions, employer contributions, and earnings. I want to do a direct rollover to 2 new IRA's at Vanguard ($35K to a new ROTH IRA and $700K to a new Traditional IRA (Traditional will become taxable when RMD’s start at 73).
Just in case it matters: I currently have one other 401K at Fidelity and five IRA’s at Vanguard (two ROTH’s, one Rollover IRA with all pre-tax contributions, one Traditional IRA with all after tax contributions, one traditional IRA all pre tax contributions).
I’m told by the administrator, Vanguard, that my plan allows this ...
- Mon Feb 03, 2025 9:11 am
- Forum: Personal Finance (Not Investing)
- Topic: Efile taxes now or wait in case of revised 1099R
- Replies: 23
- Views: 1262
Re: Efile taxes now or wait in case of revised 1099R
Revised 1099R forms are very rare. Are you sure it was not a 1099DIV?JayB wrote: Mon Feb 03, 2025 8:51 am I file my elderly dad's taxes via TurboTax each year and have his 2024 returns prepared in TurboTax. I am debating whether to (1) efile shortly to prevent someone from filing fraudulently as dad or (2) wait until April in case one of the 1099R forms gets reissued. Last year, I had to file an amended return because I filed early and then received a revised 1099R at the end of March; this had never happened before. Dad does not have an IRS IP PIN and one cannot be obtained for him.
So it comes down to fraud prevention vs reducing chance of having to file amended return. Advice appreciated.
If a 1099R and it looks the same as his last year's, file now.
- Sat Feb 01, 2025 2:22 pm
- Forum: Personal Finance (Not Investing)
- Topic: Has anyone successfully logged into Free File Fillable forms for 2024 tax year?
- Replies: 22
- Views: 3002
Re: Has anyone successfully logged into Free File Fillable forms for 2024 tax year?
I've used Free File Fillable from the IRS successfully for a couple of years now.
This morning, I tried to start the process for the 2024 filing year. The website is asking me to create a new account (required every tax year), and then log in.
But when I try to log in, the system just takes me back to the sign-up screen. So I can't get to the place to actually start doing anything.
Has anybody successfully started completing a return with FFF this year?
I set up the account about 3 days ago, entered all the info and e filed. This is my 5th year, and while the first year took quite awhile, once you get used to FFFF, it is quite user friendly as long as you have a good idea of what the completed forms should indicate. What was ...
- Fri Jan 31, 2025 7:51 pm
- Forum: Personal Investments
- Topic: 1099-Q for roth conversion
- Replies: 16
- Views: 3307
Re: 1099-Q for roth conversion
I have a question on a twist of this scenario. I did the 529 to Roth rollover for the beneficiary of the 529 in 2024. A 1099-Q was issued for 2024. However, I had to mail a paper form, and it arrived late in December. The Roth IRA custodian received the funds in January 2025 and consider them a 2025 contribution. The 5498 won't be issued until May 2026. Is this a problem?
The beneficiary has the option to notify the Roth custodian that this contribution is to be applied to 2024 because it was made during the period in which the contribution could be assigned either to 2024 or 2025. The following is copied from 2023 IRS Pub 590A, p 2. Update the years in the last paragraph by 1 to 2024 and 2025 to reflect what the 2024 590 A will show ...
- Fri Jan 31, 2025 7:38 pm
- Forum: Personal Investments
- Topic: 1099-Q for roth conversion
- Replies: 16
- Views: 3307
Re: 1099-Q for roth conversion
Yes, no reporting needed for this 1099 Q.tboll058 wrote: Wed Jan 29, 2025 10:51 am So is the final answer to this question that as long as Box 4 is checked (T to T) and that the 1099-Q lists the beneficiary (child, not the parent-owner) as the "Recipient" (and Box 6 is blank), then No one has to Report this 1099-Q on their Tax Return?
- Fri Jan 31, 2025 6:06 pm
- Forum: Personal Finance (Not Investing)
- Topic: Inherited IRA and Deceased RMD
- Replies: 5
- Views: 600
Re: Inherited IRA and Deceased RMD
So it is finalized that Trad IRA beneficiaries must take an RMD every year and then have the account cleared out by the 10th year? I had read that this rule was not finalized and in flux and that the account only needed to be cleared out by the 10th year.
The 10 year rule applies unless you are an EDB. A child is only an EDB if they are disabled or chronically ill. If you are an EDB, RMDs are required every year.
For 10 year rule beneficiaries RMDs in years 1-9 are required if the parent passed on or after their RBD (exception applies to 2024 in your case). Father's RBD is 4/1 of the year following the year that he reached RMD age, which is currently 73. Note that it is possible for a decedent to take an RMD but still pass prior to ...
- Fri Jan 31, 2025 11:51 am
- Forum: Personal Finance (Not Investing)
- Topic: Inherited IRA and Deceased RMD
- Replies: 5
- Views: 600
Re: Inherited IRA and Deceased RMD
If you took it in 2024, you could not have claimed/reported it for 2023 as it did not occur that year. For 2024, the 1099-R income goes on your tax return Line 4, IRA distributions. The withholding goes on the 1040 as well. How do you do your taxes? In most software, it will simply ask you to enter all the information from the little boxes, including the special code for Death benefit.
You are probably overdue on missed 2023 RMD - did you double up for 2024? If you don't make that up (and get current, i.e take the 2023, 2024, 2025 RMD all by the end of 2025) there might be penalties, though they can be waived if asked. Note that an RMD is a calculated number, not a special kind of transaction.
https://www.bogleheads.org/wiki/Required ...
- Thu Jan 30, 2025 2:55 pm
- Forum: Personal Finance (Not Investing)
- Topic: Think I over-contributed Roth IRA need guidance
- Replies: 27
- Views: 2913
Re: Think I over-contributed Roth IRA need guidance
Thank you Alan for taking the time to reply. So it sounds like I can hang tight for now and wait for my tax return to be done. I really would like to do my taxes on my own but we had a major loss on a real estate transaction many years ago where I think it is confusing for me to take the gradual loss each year in our current taxes...I'm not explaining that properly.....
I did read that the MAGI will not appear on my tax return....only the AGI. Will it be a safe bet for me to just go with that number to be sure I didn't go over the income limit.
If you have your taxes done by an accountant or tax prep firm, they have software that will flag any excess Roth contribution as long as you tell them the amounts of any regular Roth ...
- Thu Jan 30, 2025 11:03 am
- Forum: Personal Finance (Not Investing)
- Topic: Think I over-contributed Roth IRA need guidance
- Replies: 27
- Views: 2913
Re: Think I over-contributed Roth IRA need guidance
Todd thanks for the heads up on that 2024 number.
Retiredjg: As of now I have turned off the automatic contributions for my Roth IRA and am considering that backdoor option that you speak of. I think I probably could lower my MAGI enough every year to qualify but if I ever need to make a big purchase like a car it would trigger capital gains from my taxable account that would cause a major headache with the Roth IRA. Your idea is definitely the way to go. In your opinion what would be the advantage of using the Roth IRA space instead of just using my employer Roth 457 and Roth 403b space that I have that has no income limits.
Also, if I am missing something on this MAGI calculation for 2024 what are the consequences/penalty for me ...
- Wed Jan 29, 2025 8:32 pm
- Forum: Personal Investments
- Topic: How to get an unrequested withdrawal restored to Vanguard Roth
- Replies: 12
- Views: 1447
Re: How to get an unrequested withdrawal restored to Vanguard Roth
While you only asked about restoring the funds to your Roth IRA, there are some other issues created by this error:
1) While a QCD from a Roth IRA is legal, there is seldom an advantage, and no advantage if your Roth IRA is qualified. If you are RMD age, I am sure that your Roth is qualified and tax free anyway, which means that you do not have to report the Roth 1099R on Form 8606. Therefore, I would not even bother reporting this as a QCD. Just enter the 600 on line 4a of Form 1040, nothing on 4b.
2) It may or may not make sense to convert 600 to restore the distributed amount to the Roth IRA, but if you do choose to do so be sure to complete your 2025 RMD before doing a conversion.
Returning to the original error, it is probably ...
1) While a QCD from a Roth IRA is legal, there is seldom an advantage, and no advantage if your Roth IRA is qualified. If you are RMD age, I am sure that your Roth is qualified and tax free anyway, which means that you do not have to report the Roth 1099R on Form 8606. Therefore, I would not even bother reporting this as a QCD. Just enter the 600 on line 4a of Form 1040, nothing on 4b.
2) It may or may not make sense to convert 600 to restore the distributed amount to the Roth IRA, but if you do choose to do so be sure to complete your 2025 RMD before doing a conversion.
Returning to the original error, it is probably ...
- Wed Jan 29, 2025 11:48 am
- Forum: Personal Finance (Not Investing)
- Topic: 457 withdrawal getting early withdrawal penalty (DROP MONEY)
- Replies: 9
- Views: 1314
Re: 457 withdrawal getting early withdrawal penalty
Man this is throwing me.
I am confused why 457 plans are even mentioned, there is no penalty for withdrawal from a 457 if you are retired.
The drop money is in my 457 account that has the same funds available that were available to me when I was working. I guess my argument is, that its not an early distribution, its in a 457 account and I am retired. and if its not in my 457 what is it in and is that a qualified plan that is subject to the public safety exception?
I'm guessing that there is no way to undo the withdrawal and put the money back?
I found a coworker that said he took money drop out and did not get the early withdrawal penalty. He has a different deferred comp vender though. The rules are the rules though right? either ...
- Tue Jan 28, 2025 8:59 pm
- Forum: Personal Finance (Not Investing)
- Topic: Annuity income reducing RMD requirement
- Replies: 14
- Views: 2180
Re: Annuity income reducing RMD requirement
Basically, that is correct. Has your IRA annuity been annuitized prior to 12/31/2024?
You should be able to use the 5498 Box 5 value to determine your RMD for the IRA annuity. But there is no way to know whether the insurance company correctly calculated that value, taking into consideration various fringe benefits that exceed the exempted fringe benefit limit. The IRS is unlikely to ever question the 5498 figure.
The IRS also receives the 5498 for this account and for other non annuity IRAs you own and can calculate your total RMD. Since the RMDs can be aggregated from all your IRA accounts, you (and the IRS) would look to have the 1099R forms for all your IRAs add up to the total RMD.
Yes, it did start in 2024. But, I do not ...
- Tue Jan 28, 2025 6:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: Annuity income reducing RMD requirement
- Replies: 14
- Views: 2180
Re: Annuity income reducing RMD requirement
Sec 204 of Secure 2.0 is meant to encourage more annuitization of retirement plans.
Most annuity payouts are higher than if that portion of the account had not been annuitized. Sec 204 will require the insurance company to make an annual calculation of the total value of the annuity had the annuity not been annuitized. That will allow the excess of the payouts to be used to reduce the distribution from the non annuitized portion. This will result in the total RMD being about the same as it would have been without the annuitization, instead of being higher because of the annuitization.
This required calculation must be provided to the participant by the end of January, and it's a new calculation that was not required previously. Will ...
- Mon Jan 27, 2025 3:28 pm
- Forum: Personal Finance (Not Investing)
- Topic: Over-contributed to Mega Backdoor Roth 401(k)
- Replies: 3
- Views: 751
Re: Over-contributed to Mega Backdoor Roth 401(k)
Hello,
somehow my company did not stop me from making this mistake and I missed the moment when my contributions went over the $69,000 limit for 2024. Just by about $1,700. I've tried to search for "what's now", but the information seems to be quite incomplete.
Dear Bogleheads, could you please help me clarify the following:
- So far I've only received a 1099-R with the G code. Am I correct in that another one with an E code will be coming?
- I was told that I will receive the refund automatically, in the month of April. It will be accounted for 2025 and I will need to report it on my 2025 tax return. Is this correct? Actually, for some reason the rep. kept saying "2026", so maybe I'm wrong in expecting this to take place in 2025 ...
- Sun Jan 26, 2025 9:12 pm
- Forum: Personal Finance (Not Investing)
- Topic: Flight Training (Part 61) via 529: Possible Path using SECURE 2.0 Act??
- Replies: 10
- Views: 1276
Re: Flight Training (Part 61) via 529: Possible Path using SECURE 2.0 Act??
My question then, is this. Under new law (SECURE 2.0) this long-existing 529 can be rolled over into a Roth IRA for him. A maximum of $7,000 per year, with a lifetime maximum of $35,000. These rolled over dollars ... are they treated the same as regular Roth IRA contributions, meaning (as contributions) could they be immediately withdrawn without penalties? I'm curious if this could be a viable path to use 529 contributions for flight training. It seems like there's likely something here that is "too good to be true" but am trying to be a helpful uncle and do the research. Thanks!
With a valid 529 to Roth rollover, the funds are treated as if they were being transferred from another Roth IRA holding contributions and gains. Therefore ...
- Sun Jan 26, 2025 12:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: 1099-R code 8J for returning excess Roth IRA contribution
- Replies: 4
- Views: 596
Re: 1099-R code 8J for returning excess Roth IRA contribution
Sec 333 of Secure 2.0 eliminated the 10% penalty on the return of earnings by the due date for all transactions completed after 12/29/2022. The quoted paragraph above overlooks that, but the example that ends on the very top of p 7 of the 8606 Instructions recognizes this. The IRS just forgot to amend the portion quoted above.
Because there is no penalty due, I don't know why the 1099R Inst still allows Code J to be used with Code 8. Code 2 would be more appropriate (8,2) as that would erase any penalty caused by Code J.
To the OP: Be sure your tax program is NOT charging you with the 10% penalty on the earnings withdrawn. If you see that penalty, re enter the 1099R with codes 8,2 instead and see if the penalty disappears. This is ...