Search found 7099 matches

by Alan S.
Tue Jan 23, 2018 3:39 pm
Forum: Investing - Help with Personal Investments
Topic: 403(b) rollover to Solo 401(k) - Withholding?
Replies: 2
Views: 81

Re: 403(b) rollover to Solo 401(k) - Withholding?

This should have been done using a direct rollover, and there is no withholding with a direct rollover. If no check was sent to x payable to x personally, this was a direct rollover and there should not have been any withholding. However, if the amount deposited into the solo K is around 20% short, ...
by Alan S.
Tue Jan 23, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking of leaving my IRA split between my wife and sons
Replies: 6
Views: 355

Re: Thinking of leaving my IRA split between my wife and sons

Need to know pros and cons in doing so and was wondering if there a post or article on site that address the subject. 1. does it protect it if I should enter a nursing home Medicaid spend down rules vary by state. But basically, prior to the year you reach 70.5 your IRA is an asset subject to the s...
by Alan S.
Mon Jan 22, 2018 11:22 pm
Forum: Investing - Help with Personal Investments
Topic: Please help with a strategy to rollover IRA to 401k
Replies: 3
Views: 205

Re: Please help with a strategy to rollover IRA to 401k

No. Basis is the amount of non deductible contributions you made and reported (or will report) on Form 8606. This is the amount on which you have already paid taxes. The rest of your balance comes from deductible contributions and gains on both deductible and non deductible contributions. Basis stay...
by Alan S.
Mon Jan 22, 2018 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Is Tax CPA really needed for Vanilla Investments ?
Replies: 25
Views: 1604

Re: Is Tax CPA really needed for Vanilla Investments ?

If you have complex tax situation, look for an Enrolled Agent; not a CPA. Yes, and if you have a relatively simple tax situation but do not wish to do your own taxes, either of the above is overkill. You can save money by using one of the retail tax services or an accounting/bookeeping firm that do...
by Alan S.
Mon Jan 22, 2018 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Roll New York Life Annuity into company 401k
Replies: 1
Views: 124

Re: Roll New York Life Annuity into company 401k

Are you planning to surrender the annuity, pay the surrender charges and roll over the net cash proceeds? If not, I would drop this idea right now and save yourself a lot of time and frustration. But if you want to investigate further, call the 401k administrator and determine: 1) Do they accept IRA...
by Alan S.
Mon Jan 22, 2018 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Getting 1099-DIV forms for closed accounts?
Replies: 8
Views: 1602

Re: Getting 1099-DIV forms for closed accounts?

They are still responsible for retaining your address for tax reporting purposes. But if you opted for on line account access in lieu of a mail 1099 and print the form, if your on line account is terminated they will either have to automatically revert to mailing the form or provide an exception for...
by Alan S.
Mon Jan 22, 2018 11:40 am
Forum: Personal Finance (Not Investing)
Topic: New tax law and changes to paycheck
Replies: 20
Views: 1826

Re: New tax law and changes to paycheck

Anyone know if the withholding in the new tables is adjusted ( reduced) to make up for the 4-6 weeks of higher withholding from the former tables?
by Alan S.
Sun Jan 21, 2018 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: Help with setting up Inherited IRA and then transferring
Replies: 10
Views: 669

Re: Help with setting up Inherited IRA and then transferring

Thanks for the heads up. We finally found out a bit more info. The largest(not really big at all) that she is inheriting is an Inherited Traditional IRA 408B which was opened in 2013. It is titled "Owner (wifes deceased grandmother) IRA FBO (wifes deceased mother). Mother inlaw inherited it back in...
by Alan S.
Sun Jan 21, 2018 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Father inlaw taxes: pension taxation
Replies: 19
Views: 1873

Re: Father inlaw taxes: pension taxation

Yes, both CA and NY are very stringent in requiring departed residents to provide documentation of established residency elsewhere. In this case CA already holds these taxes, so that will further increase the burden of proof they require to issue refunds. Therefore, I wouldn't file back tax returns ...
by Alan S.
Sun Jan 21, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Can Roth conversions count as RMDs?
Replies: 27
Views: 1684

Re: Can Roth conversions count as RMDs?

And of course the obvious: If you expect the shares to drop or are overly concentrated in them, now you are talking about lost principal. Harvest the gain. This is also true for older investors hoping to avoid CGs via the death basis adjustment. Preventing loss of principal always trumps letting the...
by Alan S.
Sun Jan 21, 2018 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with excess IRA/Roth contributions
Replies: 9
Views: 540

Re: Need help with excess IRA/Roth contributions

Thanks again. I am also looking at this as a foundation step for future investment planning. Hence more questions. For YOUR contribution: Since your MAGI appears set to exceed the Roth income limit indefinitely, keeping the contribution and paying the excise tax so you can assign it to a future yea...
by Alan S.
Sun Jan 21, 2018 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: Mega back door roth
Replies: 13
Views: 1367

Re: Mega back door roth

Yes, a single check is a bad idea and should be avoided if possible. People have reported that incorrect amounts were deposited into the IRA accounts. However, the split rollover will affect any regular back door Roth you are doing now or later. Perhaps you are not doing a back door Roth because the...
by Alan S.
Sun Jan 21, 2018 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Mega back door roth
Replies: 13
Views: 1367

Re: Mega back door roth

Thanks everyone for your replies. This is very helpful. Apologies for late reply as I was out travelling. Update on my end: I called ML (they manage my wife's 401K) and spoke to 3 different people over phone who all gave me conflicting reply. After further digging it turns out they do allow out of ...
by Alan S.
Sun Jan 21, 2018 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Please help with a strategy to rollover IRA to 401k
Replies: 3
Views: 205

Re: Please help with a strategy to rollover IRA to 401k

What you should do first is to roll the pre tax balance of your IRA (total value less your basis) into the 401k. Be sure not to roll the entire balance. If the 401k accepts the partial rollover, all you have left in the IRA is basis and you can then convert that tax free. Do not convert first, becau...
by Alan S.
Sat Jan 20, 2018 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: Can Roth conversions count as RMDs?
Replies: 27
Views: 1684

Re: Can Roth conversions count as RMDs?

Can someone taking RMDs satisfy the requirement with a Roth conversion if the RMD is not needed for current living expenses? The short answer considering the entire picture is No. The detailed answer is more complicated. If you execute a conversion as your first TIRA withdrawal in an RMD year, it a...
by Alan S.
Sat Jan 20, 2018 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Rollover kills deduction?
Replies: 4
Views: 437

Re: Rollover kills deduction?

hey guys, I maxed out my roth IRA in 2017 and then decided to re-characterize $6k ($5.5k contributed, $0.5k return) over into a traditional IRA as that made sense for my expected MAGI. But on the Vanguard website for tax year 2017, there is no 1099-R available for my traditional IRA, only the Roth....
by Alan S.
Sat Jan 20, 2018 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1099-R IRA/SEP/SIMPLE box affecting refund
Replies: 52
Views: 1841

Re: Form 1099-R IRA/SEP/SIMPLE box affecting refund

But somewhere in the process you are telling the software that this is a conversion, correct? Just did our 2017 taxes using as only source/proof of income a Vanguard 1099-R and Code for Box 7 = 07. HR Block 2017 Deluxe did not ask me if we did a conversion when moving funds from a T-IRA to a Roth I...
by Alan S.
Sat Jan 20, 2018 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with excess IRA/Roth contributions
Replies: 9
Views: 540

Re: Need help with excess IRA/Roth contributions

Btw I had talked with Fidelity yesterday to explore the possibility of recharacterizing excess ROTH to Traditional, and then back to ROTH. The rep told me that IRS no longer allows 2 recharacterizations. The IRS never did allow a regular contribution to be recharacterized more than once. For YOUR c...
by Alan S.
Sat Jan 20, 2018 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1099-R IRA/SEP/SIMPLE box affecting refund
Replies: 52
Views: 1841

Re: Form 1099-R IRA/SEP/SIMPLE box affecting refund

I don't think TurboTax will care about fallout caused by incorrect entry of the 1099R. The 1099R instructions include several differences depending on the type of distributing account. Once the IRA box is unchecked, the remaining check in Box 2b becomes problematic because for non IRA accounts if th...
by Alan S.
Sat Jan 20, 2018 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: consolidating ROTH IRAs?
Replies: 23
Views: 978

Re: consolidating ROTH IRAs?

Is there any sense to keeping Roths separate for the purpose of tracking them by dates so as to have 'proof' of the minimum 5 years before withdrawing w/o penalty? No. You can withdraw your regular contribution total for Roth accounts without tax or penalty anytime. The IRS knows when the 5 years s...
by Alan S.
Sat Jan 20, 2018 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: 403b rollover headache
Replies: 7
Views: 433

Re: 403b rollover headache

Do you know the total fees with the current 403b plan? Just because Vanguard products are offered in the plan it does not mean the costs are low. This plan could be adding their own fees, and note that one of the recent fee litigation cases was filed against a plan using Vanguard funds. If the fees ...
by Alan S.
Sat Jan 20, 2018 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Tax reporting for 'mid-air' 401k to Roth IRA conversion -- how?
Replies: 6
Views: 411

Re: Tax reporting for 'mid-air' 401k to Roth IRA conversion -- how?

As tfb indicated, ANY rollover from any non Roth source to a Roth account will produce a 1099R showing the taxable amount. It would be preferable if Vanguard would drop this "mid-air" term. Apparently it is meant as a depiction of a direct rollover transfer where no check is payable to you, the part...
by Alan S.
Sat Jan 20, 2018 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Rollover spouse to spouse?
Replies: 9
Views: 698

Re: Rollover spouse to spouse?

If the plan administrator indicates that any cash out in lieu of future annuity payments is eligible for rollover, it most likely is. That said, the present value calculation used to determine the lump sum could be punitive and include certain fees. Such a calculation should include the value of any...
by Alan S.
Fri Jan 19, 2018 11:17 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with excess IRA/Roth contributions
Replies: 9
Views: 540

Re: Need help with excess IRA/Roth contributions

What are the chances that your MAGI falls under 189k for 2018?
Does each contribution have a gain of around 15%?
by Alan S.
Fri Jan 19, 2018 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Year for Return of Ineligible Roth Contribution Earnings?
Replies: 5
Views: 324

Re: Tax Year for Return of Ineligible Roth Contribution Earnings?

Re Colorado exclusion, here is the applicable info: https://www.colorado.gov/pacific/sites/default/files/Income25.pdf You should be able to exclude this as retirement income as long as there is no early distribution penalty. Generally, that means you can exclude it if you are over 59.5 on the date o...
by Alan S.
Fri Jan 19, 2018 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with changed mind on IRA contrib.
Replies: 9
Views: 454

Re: Need help with changed mind on IRA contrib.

Tax aspects of the returned contribution. 1) Do not report a non deductible contribution on Form 8606 since the contribuition will be returned with allocated income. 2) You will report the total amount returned on line 15a of Form 1040, and only the earnings returned (amount in Box 2a of the 1099R) ...
by Alan S.
Fri Jan 19, 2018 7:28 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with changed mind on IRA contrib.
Replies: 9
Views: 454

Re: Need help with changed mind on IRA contrib.

Yes, you could do that. If so be sure to ask for a return of your 2018 TIRA contribution, and NOT ask for a dollar amount distribution. Also, since you had planned to convert this to Roth rather than making a regular Roth contribution, I assume that your income is too high for a regular Roth contrib...
by Alan S.
Fri Jan 19, 2018 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: CPA says home sale capital gains tax exclusion criteria changed for 2018?
Replies: 13
Views: 1412

Re: CPA says home sale capital gains tax exclusion criteria changed for 2018?

A lot of CPAs and tax preparers ignore most proposals until they are signed into law. Saves them from mentally inserting themselves into the legislative meat grinder. Now if one was going to read either the House or Senate Bill, the Senate bill would have been preferable because a very high portion ...
by Alan S.
Fri Jan 19, 2018 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Help with setting up Inherited IRA and then transferring
Replies: 10
Views: 669

Re: Help with setting up Inherited IRA and then transferring

If an already non spouse inherited IRA is inherited again, the RMD schedule does not change. In other words, if your MIL was taking RMDs using the correct divisor based on her age in the year after she inherited and reducing the divisor by 1.0 each year as required, your wife would have to simply co...
by Alan S.
Fri Jan 19, 2018 1:26 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with changed mind on IRA contrib.
Replies: 9
Views: 454

Re: Need help with changed mind on IRA contrib.

Yes, return of contribution or return of excess contributions are handled exactly the same. However, it is not clear why you changed your mind about the IRA contribution or the investment you made in the IRA. If we knew where you were going with this, the advice might change. Do you simply need the ...
by Alan S.
Fri Jan 19, 2018 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: SEI vs. T. Rowe Price or Vanguard
Replies: 5
Views: 380

Re: SEI vs. T. Rowe Price or Vanguard

Take a look at this thread regarding a situation where an advisor used SEI and what the result is. To save time, go to the end of thread:

viewtopic.php?f=2&t=238344
by Alan S.
Thu Jan 18, 2018 11:07 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth in 2018. Has anything changed?
Replies: 14
Views: 2991

Re: Backdoor Roth in 2018. Has anything changed?

One thing that has changed are the dynamics when your back door conversion involves rolling pre tax non Roth balances into your employer plan. You have the choice to either complete the employer plan rollover first OR the conversion of IRA basis. There were trade offs in the past such that the trans...
by Alan S.
Thu Jan 18, 2018 10:45 pm
Forum: Investing - Help with Personal Investments
Topic: Which tax year does a Roth conversion fall under?
Replies: 6
Views: 428

Re: Which tax year does a Roth conversion fall under?

The distribution date determines the tax year for conversion income, and for most direct transfer conversions the date of the distribution and the conversion are the same. However, if you take a TIRA distribution in December and roll it over to a Roth IRA in January, the conversion income is reporte...
by Alan S.
Thu Jan 18, 2018 10:38 pm
Forum: Investing - Help with Personal Investments
Topic: Does my rollover IRA count for pro-rata calculations?
Replies: 13
Views: 496

Re: Does my rollover IRA count for pro-rata calculations?

I do but I would not want to keep the funds there for too long as their E/R are higher. Could I then re-roll it out to Fidelity? That depends entirely on your plan's provisions. IRS rules are not a factor here. Therefore, in many cases you will want to determine how long the rollover will be stuck ...
by Alan S.
Thu Jan 18, 2018 12:02 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard Recharacterization and Tax Form Error
Replies: 2
Views: 208

Re: Vanguard Recharacterization and Tax Form Error

You are correct. Their coding should have been R, as long as your contribution was correctly applied in the first place. Obviously, you cannot make a 2017 contribution in 2016, but is there any chance that you made the contribution at the very end of 2016, it wasn't received until 2017 and Form 5498...
by Alan S.
Wed Jan 17, 2018 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1099-R IRA/SEP/SIMPLE box affecting refund
Replies: 52
Views: 1841

Re: Form 1099-R IRA/SEP/SIMPLE box affecting refund

But 15a and 16a do not affect AGI or taxable income, just 15b and 16b do that. However, if the a line is higher than the b line the difference is the non taxable portion which does count as income for the sales tax deduction but not for AGI or taxable income. Further, if the line 16 distribution is ...
by Alan S.
Wed Jan 17, 2018 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1099-R IRA/SEP/SIMPLE box affecting refund
Replies: 52
Views: 1841

Re: Form 1099-R IRA/SEP/SIMPLE box affecting refund

Does your IRA have any basis from non deductible contributions? Livesoft floated this question earlier, but I did not see your response. If you uncheck the box the distribution will go on line 16 instead of 15, and Form 8606 will not be generated because a direct Roth rollover does not go through a ...
by Alan S.
Wed Jan 17, 2018 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: Deceased mother's Financial Advisor wants $500+ to convert to bene IRA
Replies: 31
Views: 2499

Re: Deceased mother's IRA co wants $500+ to convert to bene IRA

Note that you must have the inherited IRA retitled in beneficiary format in order to do anything, even get a lump sum distribution. While doing this it is more efficient if you coordinate with your sibling the submission of beneficiary data so they can establish separate inherited IRA accounts. Most...
by Alan S.
Wed Jan 17, 2018 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: Roth 401k Rollover clarification
Replies: 3
Views: 153

Re: Roth 401k Rollover clarification

Say you are in retirement and you have money saved up in your prior employer’s Traditional 401k and Roth 401k plans. If you wanted to rollover the Roth 401k into a Roth IRA is it mandatory that you also have to rollover a portion of your Traditional 401k into an IRA in the same transaction? You can...
by Alan S.
Wed Jan 17, 2018 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Deceased mother's Financial Advisor wants $500+ to convert to bene IRA
Replies: 31
Views: 2499

Re: Deceased mother's IRA co wants $500+ to convert to bene IRA

This is probably legal, but grossly anti competitive and in excess of anything I have heard of. Mind disclosing who this custodian is? If so, is it a bank or non bank custodian? Too bad that Congress did not proceed with a tax code change to allow 60 day rollovers of inherited IRAs, but they didn't ...
by Alan S.
Tue Jan 16, 2018 10:33 pm
Forum: Investing - Help with Personal Investments
Topic: Taxes 1099-R
Replies: 3
Views: 526

Re: Taxes 1099-R

I transferred a SIMPLE IRA to Vanguard Traditional IRA (and thenconverted to my Roth IRA). It was a small amount and I was in a lower bracket in 2017 than I probably will ever be again so I felt I’d take the hit now Just want to make sure I didn’t do anything wrong ... it appears to be shown as a “...
by Alan S.
Tue Jan 16, 2018 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-R Question
Replies: 5
Views: 678

Re: 1099-R Question

Your tax return should not show the conversion on Form 8606 because it was recharacterized (that is the official term to use) back to TIRA. The IRS can generally figure this out by comparing the two 1099R forms, however they still want you to include an explanatory statement with your return indicat...
by Alan S.
Tue Jan 16, 2018 2:50 pm
Forum: Investing - Theory, News & General
Topic: Roth 401k into Roth IRA
Replies: 5
Views: 360

Re: Roth 401k into Roth IRA

Even if your Roth IRA has not yet been held 5 years at the time of the Roth 401k rollover, the amount of your Roth 401k deferrals (24,500) will be treated as Roth IRA regular contributions, available anytime without tax or penalty from your Roth IRA. In fact, even if there is a loss before you do th...
by Alan S.
Tue Jan 16, 2018 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: Questions re: Backdoor Roth specifics
Replies: 1
Views: 209

Re: Questions re: Backdoor Roth specifics

You are fine. The Roth IRA balance does NOT trigger any pro rating and can be ignored for purposes of your back door Roth. Also, because the final step is the conversion and you can no longer recharacterize conversions, there is no reason to convert to a new Roth IRA. Just convert into the existing ...
by Alan S.
Tue Jan 16, 2018 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: RMD Withdrawal Plans
Replies: 6
Views: 939

Re: RMD Withdrawal Plans

You also need to determine if you want federal (or state) withholding on the RMD distributions, or if you are paying taxes through quarterly estimates or withholding from another source. And if you are planning QCDs, you will probably have to complete them all before setting up automatic distributio...
by Alan S.
Tue Jan 16, 2018 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: In-Service Roth 401(k) Rollovers
Replies: 3
Views: 289

Re: In-Service Roth 401(k) Rollovers

Assuming this is Roth 401k money at this time, the amount you may be able to roll out to your Roth IRA depends on the plan provisions. Roth 401k money can be a mixture of "Distributable" and "non distributable" amounts. Regular Roth 401k contributions are elective deferrals and therefore cannot be d...
by Alan S.
Mon Jan 15, 2018 10:26 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA tax question.
Replies: 1
Views: 184

Re: Backdoor Roth IRA tax question.

The taxable amount depends on how much reconstruction work you are able to do to document your basis of non deductible contributions over the years. If you retroactively file an 8606 for each of those years, the IRS will accept them and your 2017 conversion will have a higher non taxable portion. Th...
by Alan S.
Mon Jan 15, 2018 7:22 pm
Forum: Investing - Theory, News & General
Topic: Invested in ROTH IRA but I appear to have crossed $186K mark
Replies: 15
Views: 2150

Re: Invested in ROTH IRA but I appear to have crossed $186K mark

If your 2017 Modified AGI ends up in the Roth contribution phaseout range (186-196k) and you have gains on your investment, you would generally be better off to do a partial recharacterization to TIRA, leaving the amount you are allowed to contribute to Roth in the Roth IRA. Otherwise, if you rechar...
by Alan S.
Mon Jan 15, 2018 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Insurance: Who do you use? (Auto/Home)
Replies: 32
Views: 1802

Re: Insurance: Who do you use? (Auto/Home)

Travelers direct for HO and Auto.

Before that State Farm - left due to rate increases
Before that AARP Hartford - left due to rate increases
by Alan S.
Mon Jan 15, 2018 1:53 pm
Forum: Investing - Help with Personal Investments
Topic: traditional -> roth conversion and trustee transfer in the same year?
Replies: 3
Views: 120

Re: traditional -> roth conversion and trustee transfer in the same year?

Neither a Roth conversion or a trustee to trustee transfer counts toward the one rollover you are allowed. You can do a conversion by direct transfer OR by indirect 60 day rollover - neither one of those counts. What does count is when you do a 60 day rollover between IRAs of the same type within a ...