Search found 4 matches

by jofij
Tue Oct 21, 2014 1:02 pm
Forum: Investing - Theory, News & General
Topic: What Are We Doing To Our Young Investors?
Replies: 29
Views: 5231

Re: What Are We Doing To Our Young Investors?

I was so angry upon reading this "advice" that I decided to write my own blog post in response:

http://jofijoseph.weebly.com/jofi-josep ... ngs-advice

Arnott appears perplexed over the fundamental purpose of 401(k) accounts. Hint: they're not supposed to be your rainy day fund.

I welcome any thoughts you may have.

Jofi Joseph
by jofij
Fri May 18, 2012 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Audit - Backdoor Roth
Replies: 59
Views: 23586

Re: IRS Audit - Backdoor Roth

I finally got a letter from the IRS, but only acknowledging they received my letter on April 11th and will respond in due time! It takes them a month to simply acknowledge receipt???

The kicker here is they encourage you to pay your assessed back tax in case you are found that you do owe it -- because they remind you that interest continues to accumulate!

Amazing ...
by jofij
Wed Mar 28, 2012 7:33 am
Forum: Personal Finance (Not Investing)
Topic: IRS Audit - Backdoor Roth
Replies: 59
Views: 23586

Re: IRS Audit - Backdoor Roth

The topic is not correct. What is being described is a standard Roth Conversion .... not a Backdoor Roth. Agree this looks like a bug in the IRS's auditing software. Out of curiosity--what's the difference between a "backdoor roth" and a "standard Roth conversion" where the conversion consists principally of nondeductible contributions? A "standard Roth conversion", as likely intended by the framers of the original legislation, is one where individuals convert Traditional IRAs funded with deductible contributions and/or deductible 401(k) contributions subsequently rolled over into a Roth IRA. Under this scenario, the IRS collects a large tax bill, as you are paying tax not just on the growth in value of the IR...
by jofij
Tue Mar 27, 2012 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Audit - Backdoor Roth
Replies: 59
Views: 23586

Re: IRS Audit - Backdoor Roth

Hi there, Have lurked on this great message board for a while, never had a reason to register until now. I received the exact same letter yesterday with respect to my Roth IRA conversion in 2010. (Was there something special about March 26, 2012?) The letter was a CP2000 and said I owed $3 K in taxes and penalties for failing to report appropriate income. I had converted $13 K in 2010 from a Traditional IRA to a Roth IRA, and after completing Form 8606, only declared $1074 of that taxable income, since the remaining balance was due to non-deductible contributions I had made in previous years. Exact same situation as Alan S. Was totally freaked out, but now that I see this appears to be a pattern, I'm less stressed. My only issue is that I u...