Search found 7543 matches

by Alan S.
Mon Jun 18, 2018 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: RMDs based on 1986 life expectancy versus today?
Replies: 23
Views: 1944

Re: RMDs based on 1986 life expectancy versus today?

Good point. Your OWN life expectancy has much more to do with this than nationwide actuarial statistics. You DO have some control over your life expectancy, know family mortality history, etc. Some cohorts have actually experienced stalled mortality improvements in the last few years. This is probab...
by Alan S.
Mon Jun 18, 2018 1:45 pm
Forum: Investing - Theory, News & General
Topic: Vanguard email about transition fund accounts to new brokerage platform
Replies: 37
Views: 1936

Re: Vanguard Brokerage Acct. WHY ?

Also, be aware that as the MF accounts gradually disappear and VG reps turn over, the knowledge required to service MF accounts will be seriously diffused. The end result is likely to be comparatively poor service for the MF accounts to the extent that the processing platforms remain different. This...
by Alan S.
Thu Jun 14, 2018 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: Will Vanguard/Fidelity automatically deduct QCD from RMD?
Replies: 27
Views: 2378

Re: Will Vanguard/Fidelity automatically deduct QCD from RMD?

The date of the QCD is the date the check is mailed from the IRA custodian in order to conform to 1099R reporting requirements. Mailing is the actual date of distribution. Depending on the procedures of the custodian and weekend/holiday considerations, the mailing date might be up to 3 or 4 days aft...
by Alan S.
Wed Jun 13, 2018 8:42 pm
Forum: Personal Finance (Not Investing)
Topic: Cost-basis step-up at death
Replies: 9
Views: 942

Re: Cost-basis step-up at death

There are many cases that include multiple variations from a simple case, probably far more than the simple cases. For example, there are account registrations that may or may not have changed the actual character of the property. There are divorces, quasi community property, different state statute...
by Alan S.
Wed Jun 13, 2018 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Long-term gains and Tax Bracket
Replies: 14
Views: 1517

Re: Long-term gains and Tax Bracket

So, for MFJ taxable income that includes LTCGs between 77,200 and 77,400 you have a LTCG rate of 15%, 3 points HIGHER than the ordinary income rate of 12?
by Alan S.
Wed Jun 13, 2018 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: Cost-basis step-up at death
Replies: 9
Views: 942

Re: Cost-basis step-up at death

A non spouse joint tenancy registration should result in the basis adjustment being made for the portion that the decedent contributed. Most, but not all joint accounts with a parent are for accounts where the parent contributed 100% of the invested funds, and therefore 100% of the value on the DOD ...
by Alan S.
Wed Jun 13, 2018 1:12 pm
Forum: Investing - Help with Personal Investments
Topic: cost basis step-up on death?
Replies: 1
Views: 284

Re: cost basis step-up on death?

How should the cost basis be stepped up on mutual funds in my mother's taxable account that was jointly held with my father (now deceased)? They were married at the time of his death and living in an non-community property state. The basis adjustment is not necessarily a step up, it could be a step...
by Alan S.
Tue Jun 12, 2018 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: One IRA contribution was non-deductible, but no records
Replies: 14
Views: 998

Re: One IRA contribution was non-deductible, but no records

All things considered, I would simply spurn the 8606 if you want to. Roughly, I come to about $73 of increased taxable income if your first RMD on a balance of 800k was due this year (if you were 70.5 now). A 2,000 basis is .25% of your balance, and that will drop further if your balance grows the n...
by Alan S.
Tue Jun 12, 2018 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: No Roth 401k - Workaround?
Replies: 9
Views: 770

Re: No Roth 401k - Workaround?

Asking for a friend who just got a new job with a 401k, but no roth option. Can he do in-service rollovers to IRA and then convert to Roth as a work around? Any potential issues with this route? 1) Contribute maximum to traditional 401k 2) Do an in-service roll over (prior to the end of the year) t...
by Alan S.
Tue Jun 12, 2018 11:46 am
Forum: Investing - Help with Personal Investments
Topic: 401k to Traditional IRA to new 401k in same year?
Replies: 4
Views: 221

Re: 401k to Traditional IRA to new 401k in same year?

You cannot roll your Roth IRA into a Roth 401k, the tax code does not allow it. That said, leaving your Roth IRA in place will not affect your ability to do a back door Roth, and you can convert into the existing Roth IRA account. The critical piece is having the pre tax TIRA value rolled into your ...
by Alan S.
Sun Jun 10, 2018 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Trad, RMDs and working pastt age 70 and 1/2
Replies: 12
Views: 1074

Re: TIAA Trad, RMDs and working pastt age 70 and 1/2

2019 is considered the first "RMD distribution year". That means an RMD is required to be taken for 2019, but can be deferred up to 4/1/2020 in whole or in part. 4/1/2020 is the "RBD", or required beginning date. For an IRA, the RBD is always 4/1 of the year following the year you reach 70.5. For a ...
by Alan S.
Sun Jun 10, 2018 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Form 5498 or 1099R (IRA to Roth Conversion)
Replies: 43
Views: 2832

Re: Form 5498 or 1099R (IRA to Roth Conversion)

The IRS knows that gain/loss must be transferred, so they expect the figures to vary. However, they really are not sure HOW MUCH of your conversion was recharacterized and therefore how much should still be reported as converted. To clarify this, you are supposed to include an explanatory statement ...
by Alan S.
Sun Jun 10, 2018 11:22 am
Forum: Investing - Help with Personal Investments
Topic: "Mega" backdoor Roth withdrawal rules questions
Replies: 2
Views: 358

Re: "Mega" backdoor Roth withdrawal rules questions

Once a direct rollover is made to your Roth IRA, the Roth IRA accounting and ordering rules apply, so you would treat the rollover like you would a TIRA to Roth IRA conversion. If your Roth IRA(s) hold regular contributions or older conversions, those amounts must be distributed prior to your most r...
by Alan S.
Sun Jun 10, 2018 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA within Trust- Can you roll over to personal Inherited IRA
Replies: 5
Views: 329

Re: Inherited IRA within Trust- Can you roll over to personal Inherited IRA

Even if the trust provisions allow for termination, and the trustee assigns the IRA to individual inherited IRAs, the RMD has been determined. If the trust is qualified for look through treatment, which requires the trustee providing trust information to the IRA custodian no later than 10/31/2019, F...
by Alan S.
Sun Jun 10, 2018 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Capital Loss in IRA
Replies: 5
Views: 506

Re: Capital Loss in IRA

Is there any way to take advantage of an unrealized capital loss in a traditional IRA? Tax loss harvesting, for example. if I do a transfer in kind does the cost basis (and date) transfer? You could convert it if you expect the value to recover, but tax would be due on the amount converted (less an...
by Alan S.
Fri Jun 08, 2018 3:52 pm
Forum: Investing - Help with Personal Investments
Topic: IRA' s and separate beneficiaries
Replies: 5
Views: 260

Re: Ira' s and separate beneficiaries

<t>Received an email from our Flagship rep stating we had not designated beneficiaries for our T-Iras and Roths. I submitted back that these were all covered in our 2 revocable Trust(s)...one in my name, the other in my wife's Trust and did not need to name beneficiaries for the 4 accounts. She res...
by Alan S.
Fri Jun 08, 2018 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Next step after removing Roth IRA excess contribution?
Replies: 6
Views: 452

Re: Next step after removing Roth IRA excess contribution?

Yes, turbotax allows you to do an ammendment. You just need the software of that year, print the returns and send it via mail So let me understand.. If you over contribute to Roth-2017 $1000 and this $1000 generate $100 in gains, you will get a check for $1100 Then you have to do an ammendment for ...
by Alan S.
Thu Jun 07, 2018 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: TSP participants cannot use the mega-backdoor Roth, right?
Replies: 5
Views: 1498

Re: TSP participants cannot use the mega-backdoor Roth, right?

The TSP Modernization Act only eliminated some of the withdrawal restrictions, not all of them. It did not reach into any other areas of the TSP or any other federal plans. Therefore, no after tax non Roth contributions can be made to the TSP, and nothing to this effect seems to be under considerati...
by Alan S.
Thu Jun 07, 2018 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: all RMD withholding at YearEnd
Replies: 11
Views: 592

Re: all RMD withholding at YearEnd

In addition, the IRS knows that considerable time passes before beneficiaries become aware of accounts and submit paperwork to have retirement accounts re titled in beneficiary format, to determine the effect of the RMD aggregation rules on RMDs from various accounts, etc. The IRS will therefore rou...
by Alan S.
Wed Jun 06, 2018 10:38 pm
Forum: Personal Finance (Not Investing)
Topic: Joint Account Beneficiary Designation
Replies: 6
Views: 451

Re: Joint Account Beneficiary Designation

This policy probably relates to an old lawsuit that Vanguard lost. Plaintiff might have thought that surviving spouse should have had opportunity to name her own beneficiary or perhaps some state law did not recognize the TOD on joint accounts, but this is all speculation. In any event this restrict...
by Alan S.
Wed Jun 06, 2018 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: RMD donations using checks
Replies: 26
Views: 1357

Re: RMD donations using checks

Maybe I wasn't clear. I have a checking account in my IRA. The check I would write directly to the charity would be written by me, written TO the charity, and be on a Vanguard check that is part of my Vanguard IRA account. Thus, the $$ would go directly from my Vanguard IRA to the charity, written ...
by Alan S.
Tue Jun 05, 2018 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Next step after removing Roth IRA excess contribution?
Replies: 6
Views: 452

Re: Next step after removing Roth IRA excess contribution?

I accidentally contributed too much to my Roth IRA last year, because after I was laid off in December, my former employer direct deposited payment for my unused vacation time on Dec. 31. When I did my 2017 taxes, Turbo Tax told me I had made an excess contribution of $1,910. I called Vanguard toda...
by Alan S.
Tue Jun 05, 2018 6:17 pm
Forum: Investing - Help with Personal Investments
Topic: [what to sell for] RMD
Replies: 21
Views: 1382

Re: [what to sell for] RMD

I appreciate all the useful responses. I'd like to know though, if you need to sell because you need cash or want to put some % in cash for safety, or whatever the reason... how to determine which among your assets are worth selling, based on performance or other factors? an advisor asked for unrea...
by Alan S.
Mon Jun 04, 2018 10:20 pm
Forum: Personal Finance (Not Investing)
Topic: form 709 and gift splitting??
Replies: 3
Views: 718

Re: form 709 and gift splitting??

No, not unless the total gift exceeds 30k (based on 2018 exclusion of 15k for each spouse). The 709 Inst only specify that the gift must come from community property, the definition of which varies somewhat between the CP states. There is no guidance regarding the registration of the account on whic...
by Alan S.
Mon Jun 04, 2018 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA reduction without "life changing event?"
Replies: 7
Views: 600

Re: IRMAA reduction without "life changing event?"

You also have flexibility to defer all or part of your first RMD (for the year you reach 70.5). That could delay the start of IRMAA surcharges for a year or it could make them worse 2 years after the year you must take 2 RMDs. It all depends on the numbers for the affected years, so that decision mi...
by Alan S.
Sun Jun 03, 2018 11:51 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling over a Roth 401(k) containing employer match
Replies: 32
Views: 8814

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

If the Roth 401k received contributions 5 years ago and participant is 59.5, the Roth 401k money is qualified. If it is then rolled over to a Roth IRA, the full amount of the distribution is treated as regular Roth IRA contributions if the Roth IRA itself has not met the 5 year holding requirement. ...
by Alan S.
Sun Jun 03, 2018 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA commingles Roth and non-Roth retirement funds?
Replies: 14
Views: 1071

Re: TIAA commingles Roth and non-Roth retirement funds?

As indicated earlier, a plan that requires the contribution investments to be the same for pre tax and Roth, is simply a plan that does not offer investment flexibility. In no way does this result in commingling of Roth and pre tax balances, which is not allowed per the tax code. However, many of th...
by Alan S.
Sun Jun 03, 2018 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling over a Roth 401(k) containing employer match
Replies: 32
Views: 8814

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

Received check and distribution statement from my husband's former Roth 401k managed by Fidelity. Had requested check written to Merrill Edge where existing Roth IRA is held. When rollover was requested Fidelity said they would send two checks from Roth 401k account. However, we only received one c...
by Alan S.
Fri Jun 01, 2018 9:52 pm
Forum: Investing - Help with Personal Investments
Topic: Problem with Roth Recharacterization
Replies: 8
Views: 585

Re: Problem with Roth Recharacterization

I think Form 5498 showing the recharacterization should have come in May 2017, as long as you recharacterized by April 15 or 17(?), 2017. The amount of the recharacterization will not be the same as the converted amount you put back, since gains (losses) also go back with the converted amount. Yes,...
by Alan S.
Fri Jun 01, 2018 7:31 pm
Forum: Investing - Help with Personal Investments
Topic: Problem with Roth Recharacterization
Replies: 8
Views: 585

Re: Problem with Roth Recharacterization

You should have received a 1099R and 5498 reporting the recharacterization in January. The 1099R for your Roth IRA should be coded R in Box 7 which means the recharacterization was for a 2016 conversion. If the 1099R is coded incorrectly, that could have caused the IRS Notice because it would cause ...
by Alan S.
Fri Jun 01, 2018 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: My erroneous request to recharacterize >$5500 from Roth-->Trad IRA was honored by my custodian, what do I do?
Replies: 13
Views: 1325

Re: My erroneous request to recharacterize >$5500 from Roth-->Trad IRA was honored by my custodian, what do I do?

Any IRS response depends on two things: 1) What Fidelity actually does and how the new reported forms issued by Fidelity report those actions. 2) While this is a rare situation that the IRS rarely encounters, there is no way to predict what they will do, if anything. While reversal is technically th...
by Alan S.
Thu May 31, 2018 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard admits 2 of 3 software problems what can I do
Replies: 2
Views: 1075

Re: Vanguard admits 2 of 3 software problems what can I do

Vanguard admits 2 of 3 software problems that turned up on my account and are working to fix one. Is there anything I can do? Issue 1: Their database says that my wife owns my trust brokerage account that is in the name of my revocable trust. They say they are working on this. My wife and I have a ...
by Alan S.
Thu May 31, 2018 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Writing Checks on a Schwab IRA
Replies: 22
Views: 1000

Re: Writing Checks on a Schwab IRA

If you want to write a QCD check, I recommend mailing that check no later than 11/15. When your IRA custodian issues a check, it is recognized as a reportable distribution on Form 1099R at the time of issue. But if YOU write the check and the charity is slow to deposit it your distribution may not b...
by Alan S.
Wed May 30, 2018 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Escheatment of an IRA Account
Replies: 2
Views: 583

Escheatment of an IRA Account

The IRS has just issued the following RR: https://www.irs.gov/pub/irs-drop/rr-18-17.pdf The need for the ruling suggests that some IRA custodians have either been treating escheatment of IRAs as a non reportable transfer, such that the state was acting custodian of the account, or reported a taxable...
by Alan S.
Wed May 30, 2018 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Sale of inherited house by estate: tax question
Replies: 15
Views: 1328

Re: Sale of inherited house by estate: tax question

The loss is allowed as long as nothing is done to convert the house into personal use (eg a beneficiary moves into the house, it is held for rent etc). If none of these things are done, the house is considered investment property of the estate. When the estate closes, the applicable LT loss can be p...
by Alan S.
Wed May 30, 2018 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity MM Fund Q's
Replies: 19
Views: 1681

Re: Fidelity MM Fund Q's

It seems that the MM Reform provisions of 2016 created some confusion regarding the interaction of the following: 1) Which funds are core, settlement, or sweep funds, which all mean basically the same thing. 2) Which funds are guaranteed to never break the buck and will not have redemption restricti...
by Alan S.
Sun May 27, 2018 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: What was your experience inheriting assets held at Vanguard?
Replies: 24
Views: 2204

Re: What was your experience inheriting assets held at Vanguard?

When it comes to efficiency of the holding custodian at the time of death, I cite an analogy from the sports world: "It's not WHO you play, it's when you play 'em". Holds very true for specialty depts. in large institutions and for large institutions themselves. While VG has confessed to some of the...
by Alan S.
Sun May 27, 2018 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Conversion snag due to existing Rollover IRA
Replies: 7
Views: 691

Re: Roth IRA Conversion snag due to existing Rollover IRA

The pro rating referred to is documented on Form 8606, Parts I and II. The 8606 instructions are based on following portion of Sec 408(d) of the tax code which clarifies Sec 72 application to IRA accounts: Sec 408(d)(2)Special rules for applying section 72 For purposes of applying section 72 to any ...
by Alan S.
Sat May 26, 2018 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: Genworth LTC (Again)
Replies: 19
Views: 1779

Re: Genworth LTC (Again)

You seem to have the perfect profile to self insure this exposure, and that is my recommendation. If the time ever comes, without insurance your decision is simpler meaning that you will not have to meet some coverage restriction or requirement. In addition you will not have to agonize over a new de...
by Alan S.
Sat May 26, 2018 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: Move "after tax" 401K contributions to Roth?
Replies: 9
Views: 922

Re: Move "after tax" 401K contributions to Roth?

Yes, it sounds like you can. And I’d say you should. That’s a great option to have. My 401k allows this (which I do), but my wife’s does not. By doing it you grow tax free, don’t have to pay taxes on withdrawals AND don’t have any RMDs to contend with. Win, win, win! Don’t you get taxed on the earn...
by Alan S.
Sat May 26, 2018 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: Move "after tax" 401K contributions to Roth?
Replies: 9
Views: 922

Re: Move "after tax" 401K contributions to Roth?

Are you sure the breakdown refers to 1996? It should be "pre 1987". After tax contributions can generally be distributed separately and without earnings. Contributions you made post 1986 can only be distributed with earnings generated on those contributions. The breakdown provided does not clearly i...
by Alan S.
Sat May 26, 2018 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: Purchasing CDs: Ally in Fidelity vs Ally direct
Replies: 2
Views: 478

Re: Purchasing CDs: Ally in Fidelity vs Ally direct

It's only part of the story, but if Ally wants to generate deposits by using brokered CDs, there is no sense in providing uncompetitive rates when the brokers list all their FDIC insured new issue CDs in a list where it is so easy to compare rates. Most people will make their choice for a brokered C...
by Alan S.
Fri May 25, 2018 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: combining two Roths so when is 5 year bar?
Replies: 19
Views: 1498

Re: combining two Roths so when is 5 year bar?

More custodians are declining to use Code Q at all, even when their own records clearly show completion of the 5 years, and custodians always know your age. Instead, they use Code T which means they will not expend any effort to determine how long they have held the account. Nonetheless, the IRS 860...
by Alan S.
Fri May 25, 2018 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Does IRS penalize for overpayment of taxes?
Replies: 19
Views: 2026

Re: Does IRS penalize for overpayment of taxes?

The IRS should not have used the term "overpayment" when explaining the penalty, and I don't think they did. The penalty was for underpayment for an estimated tax quarter, even though there was a total overpayment at the end of the year. Apparently, you backloaded your estimated tax payments. An und...
by Alan S.
Fri May 25, 2018 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: My erroneous request to recharacterize >$5500 from Roth-->Trad IRA was honored by my custodian, what do I do?
Replies: 13
Views: 1325

Re: My erroneous request to recharacterize >$5500 from Roth-->Trad IRA was honored by my custodian, what do I do?

The numbers you posted, while changing somewhat due to earnings or loss, confirm that the custodian recharacterized more than you made in Roth contributions for 2015. Then to offset that error, they recharacterized your second request back to the Roth. This did result in leaving the desired amount i...
by Alan S.
Thu May 24, 2018 10:57 pm
Forum: Personal Finance (Not Investing)
Topic: Received a 1099-R Form Late
Replies: 19
Views: 1831

Re: Received a 1099-R Form Late

If you can locate either an account statement or old 5498, it will show the decedent as the owner. Your inherited Roth will show you as beneficiary of that same decedent, so that is all the evidence you would need regarding meeting the 5 year holding for qualified distributions. However, the IRS wil...
by Alan S.
Thu May 24, 2018 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: My erroneous request to recharacterize >$5500 from Roth-->Trad IRA was honored by my custodian, what do I do?
Replies: 13
Views: 1325

Re: My erroneous request to recharacterize >$5500 from Roth-->Trad IRA was honored by my custodian, what do I do?

It sounds like you made a duplicate request for the Roth to TIRA recharacterization and the custodian processed it twice in error. The first recharacterization should have nullified the duplicate request because there was not enough left of your Roth contribution to meet that request. Therefore, the...
by Alan S.
Wed May 23, 2018 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: combining two Roths so when is 5 year bar?
Replies: 19
Views: 1498

Re: combining two Roths so when is 5 year bar?

5) A sole surviving spouse that inherits a Roth IRA and elects to assume ownership uses the clock of the deceased spouse unless surviving spouse already owns a Roth with a clock that started earlier. What happens if there are multiple surviving spouses? :confused --vtMaps 1) There can only be one s...
by Alan S.
Wed May 23, 2018 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Difference between 1099R and Form 5498
Replies: 2
Views: 557

Re: Difference between 1099R and Form 5498

Note that the 1099R reports distributions and the 5498 reports contributions and year end value. For a Roth conversion, the 1099R show the TIRA account you converted from, and that same amount will be a conversion contribution on the 5498, so the 5498 will be issued for your Roth IRA that received t...
by Alan S.
Wed May 23, 2018 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Over contribution on 401k for megaroth backdoor
Replies: 16
Views: 1438

Re: Over contribution on 401k for megaroth backdoor

Sure.. the $100 will be tazed after retirement, but I would be a free (pre-tax) $100 If they are returning $1100, that would make more sense. But once you start moving the money around (rollovers, investing and selling into funds), it would seem difficult to track where the money came from. In othe...