Search found 7437 matches

by Alan S.
Tue Apr 24, 2018 3:58 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6412
Views: 1375336

Re: U.S. stocks in freefall

Funny, a week ago Wall St was all stressed out about the flattening yield curve and it's possible indicator of a recession.

The yield curve is now steeper after today's activity, more so than in recent weeks. So Wall St should now be happy. :confused Or not.
by Alan S.
Tue Apr 24, 2018 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: 401k lawsuit settlement - Can I rollover to avoid penalty for early distribution
Replies: 2
Views: 411

Re: 401k lawsuit settlement - Can I rollover to avoid penalty for early distribution

There have been several IRS letter rulings allowing a "restorative payment" to be rolled over to an IRA. That is typically done by endorsing the check for deposit only and sending it to your IRA custodian. Typically the litigation firm will notify payees of the details for these settlements. There i...
by Alan S.
Tue Apr 24, 2018 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with an inherited Roth IRA
Replies: 10
Views: 1006

Re: What to do with an inherited Roth IRA

Good idea to verify with GF that the individuals were specifically designated as beneficiaries on the Roth contract because if the Roth goes to his estate, the 5 year rule will be the ONLY option and the opportunity for tax free gains will be compromised. That would also likely trigger considerable ...
by Alan S.
Tue Apr 24, 2018 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: Who is penalized for incorrect rollover Employer or Custodian?
Replies: 5
Views: 476

Re: Who is penalized for incorrect rollover Employer or Custodian?

By "separate account", the IRS really means separate accounting. All plans should provide separate accounting for rollovers or it would not be clear which amounts were eligible for in service distributions. A single plan can easily include several levels of plan accounting since all the portability ...
by Alan S.
Tue Apr 24, 2018 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Titling rollover IRA
Replies: 3
Views: 207

Re: Titling rollover IRA

There are benefits of keeping a rollover IRA clear of regular contributions. However, the title by itself is not conclusive since many custodians leave the "rollover" title on the IRA even after regular contributions are made or other IRAs of unknown original are transferred into the rollover IRA. I...
by Alan S.
Tue Apr 24, 2018 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Did not deduct SEP-IRA contribution
Replies: 1
Views: 157

Re: Did not deduct SEP-IRA contribution

2-year reader, 2nd time poster. In 2015 I had both W-2 ($150,000) and 1099 ($65,000) income. I contributed $5500 to my tIRA, non-deductible as usual for my high income. (I was not familiar with backdoor Roth IRA conversions at the time). In March of 2016 I opened a SEP-IRA and made a $10,000 contri...
by Alan S.
Tue Apr 24, 2018 11:28 am
Forum: Personal Finance (Not Investing)
Topic: IRA rollover to 401k question
Replies: 13
Views: 639

Re: IRA rollover to 401k question

"Measure twice , cut once" I have confirmed that we both can roll our IRA's into our company 401/403 (Gathering paperwork) . According to my most recent 8606 we each have $8,000 in non-deductible IRA contributions. Here is my plan 1) Sell assets in IRA's to MM fund. 2) Initial paperwork to move all...
by Alan S.
Mon Apr 23, 2018 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA changing contribution year
Replies: 4
Views: 335

Re: Roth IRA changing contribution year

You requested that Vanguard return your 2018 Roth contribution to you with allocated earnings? If so, you now have room for another 2018 contribution. But if the return of the contribution did not include the earnings calculation, you are still considered to have made a 2018 contribution and would h...
by Alan S.
Sun Apr 22, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Roth401k to RothIRA conversion - tax question
Replies: 3
Views: 255

Re: Roth401k to RothIRA conversion - tax question

You can withdraw up to 220,000 from your Roth IRA without tax or penalty. Your designated Roth deferrals of 70k are added to your Roth IRA contributions and the 220,000 is then treated as regular Roth IRA contributions. If you withdraw more than 220,000 from your Roth IRA before your Roth IRA become...
by Alan S.
Fri Apr 20, 2018 11:37 pm
Forum: Investing - Help with Personal Investments
Topic: wash sale for IRA?
Replies: 6
Views: 409

Re: wash sale for IRA?

Right, that would not be a wash sale.

That said, the foreign tax credit is not a factor since you will not get it in either IRA account. Further, since the start of 2017 VG total international has outperformed total stock by over 3%, so perhaps the longer term trend has reversed.
by Alan S.
Fri Apr 20, 2018 5:55 pm
Forum: Investing - Help with Personal Investments
Topic: Brokered CD Interest Compounding
Replies: 13
Views: 1421

Re: Brokered CD Interest Compounding

Note that in addition to interest implications, for larger CDs affected by the FDIC limit you can purchase a larger brokered CD paying out periodic interest payments than you could with a bank CD which reinvests interest. Roughly, at today's 3 year CD rates you would have to hold the bank CD purchas...
by Alan S.
Thu Apr 19, 2018 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Overcontribution to 401K
Replies: 2
Views: 524

Re: Overcontribution to 401K

You retire in Q217, transfer your 401K to an IRA with a different brokerage, and get a letter a couple months later from the brokerage house that held your 401K that you "overcontributed" in 2016, and that a 1099 along with a recommendation to withdraw an amount certain is coming in time for the 20...
by Alan S.
Thu Apr 19, 2018 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: What is best strategy for taking RMD from VG IRA
Replies: 26
Views: 1948

Re: What is best strategy for taking RMD from VG IRA

You can't draw checks yourself on the IRA. Also, why do you need the money market fund? Vanguard will issue the checks payable to the charities. Gill Yes you can draw check yourself. I have recently asked for such checks and Vanguard sent them to me. The reason for the checks is that I know they ar...
by Alan S.
Mon Apr 16, 2018 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: early withdraw of Roth IRA - Tax form questions
Replies: 8
Views: 605

Re: early withdraw of Roth IRA - Tax form questions

If your only Roth contribution was the conversion, and you never made a regular Roth contribution, then you have nothing to enter on line 22 of Form 8606. On line 24 enter the total amount you converted to your Roth IRA. Perhaps there was just the one. Of course, you will enter your distribution on ...
by Alan S.
Mon Apr 16, 2018 7:39 pm
Forum: Investing - Help with Personal Investments
Topic: Recharacterization of a Recharacterization of IRA
Replies: 2
Views: 170

Re: Recharacterization of a Recharacterization of IRA

You CANNOT recharacterize an already recharacterized contribution per the following from p 31 of Pub 590 A: Election can’t be changed . After the transfer has taken place, you can’t change your election to recharacterize. However, you can still withdraw the contribution with allocated earnings up to...
by Alan S.
Mon Apr 16, 2018 6:49 pm
Forum: Investing - Help with Personal Investments
Topic: Excess roth IRA contribution
Replies: 3
Views: 242

Re: Excess roth IRA contribution

When did you make the last 2,000 of your Roth contribution, in 2017 or 2018?
by Alan S.
Mon Apr 16, 2018 6:45 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k and Roth IRA
Replies: 6
Views: 593

Re: Roth 401k and Roth IRA

There are income limits to be able to contribute to a Roth IRA, but not to a Roth 401k. The Roth IRA income limits start to limit your Roth contributions at 120k modified AGI if you are single or 189k modified AGI if you are married filing jointly. If you make the Roth contribution and your income i...
by Alan S.
Sun Apr 15, 2018 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: Which states are similar to NJ in the sense that they do not allow one to deduct contributions to 403b, 457, TSP, etc?
Replies: 16
Views: 2043

Re: Which states are similar to NJ in the sense that they do not allow one to deduct contributions to 403b, 457, TSP, et

Most all of the states that opted to deviate from the IRS contribution rules are in the Northeast. However, CA had a period of similar non conformity in the early 80s for IRAs: Nondeductible Contributions Made Before 1987 If you made nondeductible contributions before 1987, none of your distribution...
by Alan S.
Sun Apr 15, 2018 10:48 pm
Forum: Personal Finance (Not Investing)
Topic: Roth overcontribution
Replies: 6
Views: 352

Re: Roth overcontribution

Hello, I am just getting ready to submit my taxes and realized that I contributed $16,500 to my Roth in the 2016 year ($5,500 was intended to go towards 2017). I was able to have $5,500 switched to 2017 but still have a $5,500 overcontribution that was withdrawn. From my understanding, I need to am...
by Alan S.
Sun Apr 15, 2018 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: What to do about withdrawal this year if market doesn't go up?
Replies: 32
Views: 2856

Re: What to do about withdrawal this year if market doesn't go up?

You cannot depend on the market rising, and with 8 1/2 months to go, there is plenty of time for the market to do about anything. You could draw down your emergency fund, but only if the balance is larger than it needs to be. Otherwise, check to see what post separation options your old 401k provide...
by Alan S.
Fri Apr 13, 2018 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: 365 Day rollover rule
Replies: 6
Views: 384

Re: 365 Day rollover rule

Hi, How strict is the 365 day rule on indirect rollovers? I made a roth distribution on April 17th of last year and am now taking a distribution today, will there be a penalty since I'm a couple of days within the window? Since you asked, did the IRA custodian alert you to this and you are checking...
by Alan S.
Fri Apr 13, 2018 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: Mistake IRA contribution to current year
Replies: 7
Views: 437

Re: Mistake IRA contribution to current year

You do not report Roth contributions on your return unless you qualify for the Savers Credit. If you claimed a Savers Credit on your 2016 return, then you will have to amend 2016 to eliminate that contribution from Form 8880. Otherwise, there is nothing to change for 2016. If you made that 2016 cont...
by Alan S.
Thu Apr 12, 2018 11:10 pm
Forum: Investing - Help with Personal Investments
Topic: Change to all pre-tax for max Saver's Credit in 2018? (not 2017 taxes)
Replies: 4
Views: 652

Re: Change to all pre-tax for max Saver's Credit in 2018? (not 2017 taxes)

I would revisit the recharacterization or partial recharacterization question next February when your exact AGI and tax liability is known. Determine how much of the Roth contribution needs to be recharacterized to bring AGI down to 37,950 or so and determine how much that would save. In most states...
by Alan S.
Thu Apr 12, 2018 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Rolling over a Roth 401(k) containing employer match
Replies: 10
Views: 7388

Re: Rolling over a Roth 401(k) containing employer match

Is your husband still working for the employer sponsoring this plan? Has he done any in plan Roth rollovers to the Roth 401k account? You said he wants to do a partial rollover and leave the rest of the Roth 401k balance intact? If he still works there, part of his balance may be eligible for distri...
by Alan S.
Thu Apr 12, 2018 11:10 am
Forum: Investing - Help with Personal Investments
Topic: Inherited IRAs and Backdoor Roths
Replies: 10
Views: 334

Re: Inherited IRAs and Backdoor Roths

The inherited IRA will have no affect on your back door Roths, as others have indicated. However, since your father passed after his required beginning date for RMDs, the inherited IRA can be distributed over his remaining life expectancy determined by what his age would have been at the end of the ...
by Alan S.
Thu Apr 12, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Deadline for IRA contribution at the point of request or settlement?
Replies: 2
Views: 164

Re: Deadline for IRA contribution at the point of request or settlement?

You are probably referring to a transfer of cash from a checking or savings account since regular IRA contributions can only be made in cash. The funds must be received by 4/17 to qualify for a 2017 contribution. If the contributions was mailed to the custodian the postmark rules can be optionally u...
by Alan S.
Wed Apr 11, 2018 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: Partial Indirect Rollover from 401k to traditional IRA
Replies: 6
Views: 372

Re: Partial Indirect Rollover from 401k to traditional IRA

This sounds like you actually wanted the 20% withholding, which is required with a distribution payable to you. However, if you want to do a full rollover you can make up the withheld amount with other funds (or part of the withheld amount for that matter), and that would eliminate the tax on all bu...
by Alan S.
Wed Apr 11, 2018 10:52 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with a dormant SEP IRA?
Replies: 5
Views: 313

Re: What to do with a dormant SEP IRA?

A SEP IRA IS a traditional IRA that allows for receiving SEP contributions. However, non SEP TIRA contributions can also be made to the SEP IRA. However, to eliminate the possibility of a non SEP contribution being coded as a SEP contribution by the SEP custodian, the SEP should be transferred. Ther...
by Alan S.
Wed Apr 11, 2018 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: Excess ROTH contribution in 2014 - Tax Deadline Looming
Replies: 6
Views: 670

Re: Excess ROTH contribution in 2014 - Tax Deadline Looming

Yes, this is all correct.

Re line 22 of Form 5329, 0 is correct because your distribution of the prior excess amount of $400 has reduced the prior year excess contributions to 0. Since you did not add a new excess amount for 2017, then you do not owe a 6% excise tax with the 2017 5329.
by Alan S.
Tue Apr 10, 2018 9:45 pm
Forum: Investing - Help with Personal Investments
Topic: IRA with basis - what can be done?
Replies: 15
Views: 1366

Re: IRA with basis - what can be done?

It is not a problem, but an opportunity. Make sure the solo K document permits rollovers, then roll 50k into the solo K. The solo K cannot accept any IRA basis so the most you can roll into it is 50k and the most you would WANT to roll into it is 50k. Then simply convert the remaining 50k of IRA ba...
by Alan S.
Tue Apr 10, 2018 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: IRA with basis - what can be done?
Replies: 15
Views: 1366

Re: IRA with basis - what can be done?

It is not a problem, but an opportunity. Make sure the solo K document permits rollovers, then roll 50k into the solo K. The solo K cannot accept any IRA basis so the most you can roll into it is 50k and the most you would WANT to roll into it is 50k. Then simply convert the remaining 50k of IRA ba...
by Alan S.
Tue Apr 10, 2018 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: tIRA as a kid now rolling over to Roth
Replies: 4
Views: 452

Re: tIRA as a kid now rolling over to Roth

Somewhat off that those original contributions were not made to a Roth IRA, since you were probably making very little as a teenager. I assume that those TIRA contributions were deducted but check into the possibility that Form 8606 was filed to report any non deductible contribution. Depending on t...
by Alan S.
Tue Apr 10, 2018 6:25 pm
Forum: Investing - Help with Personal Investments
Topic: IRA with basis - what can be done?
Replies: 15
Views: 1366

Re: IRA with basis - what can be done?

It is not a problem, but an opportunity. Make sure the solo K document permits rollovers, then roll 50k into the solo K. The solo K cannot accept any IRA basis so the most you can roll into it is 50k and the most you would WANT to roll into it is 50k. Then simply convert the remaining 50k of IRA bas...
by Alan S.
Tue Apr 10, 2018 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional recharacterized/conversation
Replies: 9
Views: 246

Re: Traditional recharacterized/conversation

Agree. Put another way, every conversion is treated as a two part transaction - a distribution and a rollover contribution. The 2 simply means that since the rollover contribution was to a Roth IRA (conversion), there is no 10% early distribution penalty. The CPA should not be confused by this once ...
by Alan S.
Tue Apr 10, 2018 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: Rollover IRA and backdoor roth conversion issue
Replies: 7
Views: 363

Re: Rollover IRA and backdoor roth conversion issue

The reconversion waiting period is the longer of 30 days from the recharacterization transfer or Jan 1 of the CY after the conversion year. Therefore, since the recharacterization was done in the following CY (2018), the waiting period is 30 days. Starting next year we can forget about disallowed re...
by Alan S.
Tue Apr 10, 2018 3:08 pm
Forum: Investing - Help with Personal Investments
Topic: Questions on inherited IRA/401k
Replies: 8
Views: 616

Re: Questions on inherited IRA/401k

Before acting on the inherited 401k, check to determine if your inherited plan includes any: 1) After tax contributions If so, you can apply Notice 2014-54 to send the after tax amount to an inherited Roth IRA and the pre tax amount to an inherited TIRA. While both are subject to beneficiary RMDs, y...
by Alan S.
Tue Apr 10, 2018 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard 1099-R Error
Replies: 13
Views: 959

Re: Vanguard 1099-R Error

Code 2 is an early distribution penalty exception, so that code is correct for a direct transfer conversion to Roth. A conversion is not subject to penalty. If you took a distribution then did a 60 day rollover conversion, the 1099R code would be 1 (prior to 59.5) or 7 (after 59.5) because they are ...
by Alan S.
Mon Apr 09, 2018 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: Can I go from Roth to Traditional in 2018?
Replies: 2
Views: 268

Re: Can I go from Roth to Traditional in 2018?

You can continue to recharacterize regular contributions from one IRA type to another. Before you request a recharacterization as a TIRA contribution, be totally sure that your modified AGI permits you to deduct it. If you later discover that you cannot deduct it, you cannot recharacterize back to R...
by Alan S.
Mon Apr 09, 2018 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Excess contribution to 401k
Replies: 2
Views: 248

Re: Excess contribution to 401k

That is basically right. These are excess elective deferrals, not excess contributions. It is probably too late to have the excess plus earnings returned, and the extension to file does not extend the 4/17 deadline for receipt of the distribution. Either with or without the distribution, the line 7 ...
by Alan S.
Mon Apr 09, 2018 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Mandatory IRA Distributions at 70 1/2
Replies: 6
Views: 982

Re: Mandatory IRA Distributions at 70 1/2

Yes, in those cases where there are savings, the tax for year 2 will be more than otherwise, but will not rise as much as you save on year 1 by not having the RMD income in year one. No more than 85% of SS can taxable in year 2 regardless of how much less SS income is taxed in year 1 due to not havi...
by Alan S.
Mon Apr 09, 2018 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: Is recharacterization of Roth contribution to Trad IRA a "contribution"?
Replies: 3
Views: 210

Re: Is recharacterization of Roth contribution to Trad IRA a "contribution"?

Yes, line 1 for the recharacterized ND TIRA contribution. Also on lines 3 and 14 if nothing else occurred.
by Alan S.
Sun Apr 08, 2018 11:09 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA excess contribution and flawed distribution; 1099-R only has code J
Replies: 2
Views: 179

Re: Roth IRA excess contribution and flawed distribution; 1099-R only has code J

First, your myRA account with respect to these issues is treated as if it were just another regular Roth IRA account, so essentially you had two Roth IRA accounts that were merged as far as contribution and distribution rules are concerned. Your suspicions about this are correct, and unfortunately t...
by Alan S.
Sun Apr 08, 2018 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Mandatory IRA Distributions at 70 1/2
Replies: 6
Views: 982

Re: Mandatory IRA Distributions at 70 1/2

Those earlier distributions reduced your IRA balance on which your RMDs are now based, therefore your RMDs are now less than they would have been. The year in which you reach 70.5 is your first RMD distribution year, not the year after. For that first RMD distribution year only there is an option to...
by Alan S.
Sun Apr 08, 2018 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: How to report a brokerage promotion bonus on Turbotax?
Replies: 20
Views: 1331

Re: How to report a brokerage promotion bonus on Turbotax?

Don't know about TurboTax, but the 1099 MISC should report the bonus in Box 3. Box 3 should not trigger Sch C, which does not apply. The bonus should be reported on the "Other Income" line 21 of Form 1040. TurboTax should prompt you to enter a description of the income, which would be "brokerage bon...
by Alan S.
Sat Apr 07, 2018 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth and 1099-R taxable income
Replies: 7
Views: 615

Re: Mega Backdoor Roth and 1099-R taxable income

The explanation from Wells was total bull. Seems like the rep was more concerned with avoiding a corrected 1099R than anything else. 1) The suggestion of doing an in plan rollover first would subject the amount to much more complex tax accounting than the rollover type you just executed. A much grea...
by Alan S.
Fri Apr 06, 2018 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: Correcting a poorly executed withdrawal of 2016 excess Roth IRA contributions + earnings
Replies: 2
Views: 232

Re: Correcting a poorly executed withdrawal of 2016 excess Roth IRA contributions + earnings

Of course, you probably realize that all those explanations of what you need to do did not clearly indicate that the custodian must do it for you and then code the 1099R to reflect a return of excess contributions in Box 7. Otherwise, even if you withdrew the correct amount the 1099R is not going to...
by Alan S.
Fri Apr 06, 2018 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA excess without 1099-R
Replies: 1
Views: 141

Re: Roth IRA excess without 1099-R

You should have declined tax withholding. Vanguard's excess removal form has a special section for the withholding election. However, as you know the earnings returned on the excess will be taxable on your 2017 return because you made the contribution in 2017. The 1099R you will get should be coded ...
by Alan S.
Fri Apr 06, 2018 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: HSA family max contribution lowered to $6850 for 2018
Replies: 105
Views: 11046

Re: HSA family max contribution lowered to $6850 for 2018

Here is the latest on possible relief from the 2018 contribution reduction:

http://www.seyfarth.com/publications/OMM040518-EB

Again, it is worth waiting to see if any relief granted is in a form more attractive than acting on your own.
by Alan S.
Thu Apr 05, 2018 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth and 1099-R taxable income
Replies: 7
Views: 615

Re: Mega Backdoor Roth and 1099-R taxable income

They should also know that Box 2a plus Box 5 should total to Box 1. Technically, these direct rollovers to Roth IRAs are called "qualified rollover contributions" in the tax code and in the 1099 R Inst. Plan administrators frequently omit 2a out of force of habit since the vast majority of direct ro...