Search found 2541 matches
- Sun Mar 10, 2024 3:58 pm
- Forum: Investing - Theory, News & General
- Topic: state and local taxes on treasury bond interest in distant future IRA distributions
- Replies: 11
- Views: 829
Re: state and local taxes on treasury bond interest in distant future IRA distributions
From OR-17. It appears that you can take the US govt obligations earned that year in your IRA and pro rate that with your distribution. There does not appear to be a carry forward. Page 88 of OR-17. I'mnot aware of any otehr states that have this, although I am sure there may be some. Sorry for the formatting, but go to the instructions and work thru it Mike U.S. government interest in IRA or Keogh distributions (ORS 316.681) [Subtraction code 331] Interest and dividends on U.S. bonds and notes are exempt from state tax. See “Interest and dividends on U.S. bonds and notes.” Answer these questions to see if you have a subtraction on your Oregon return for exempt income related to your retirement distributions: 1. Did you have any distributio...
- Sun Mar 03, 2024 3:58 pm
- Forum: Personal Finance (Not Investing)
- Topic: Deceased acct interest.
- Replies: 9
- Views: 791
Re: Deceased acct interest.
Whose SSN is listed on the 1099? If your Dad's, and you filed a 2022 1040, then I'd ignore it, unless
your Dad had an estate or a trust that became irrevocable after his death that needs a 1041 for 2023, then I'd add that interest to that return
If in your SSN, put it on your taxes
Mike
your Dad had an estate or a trust that became irrevocable after his death that needs a 1041 for 2023, then I'd add that interest to that return
If in your SSN, put it on your taxes
Mike
- Fri Mar 01, 2024 6:48 am
- Forum: Personal Finance (Not Investing)
- Topic: Inheritance: Cost Basis for Proceed from Sale of Home
- Replies: 2
- Views: 397
Re: Inheritance: Cost Basis for Proceed from Sale of Home
yes, the house will be stepped up to it's value at her date of death.
For a very expensive house, you might get an appraisal done as of the date.
For most folks, using Zillow, or the county/city assessment if they use market value, is sufficient. If sold close to date of death (within 6 months, say, some folks use the sales price as the basis if market is fairly stable)
In all likelihood as long as home is sold within a reasonable period after her death, there won't be capital gains to the heirs, they will likely get a loss as the selling expenses reduce the proceeds. You can also deduct expenses for keeping the house available for sale (utilities, maintenance, yard work, etc)
as "other expenses" on the estate return
Mike
For a very expensive house, you might get an appraisal done as of the date.
For most folks, using Zillow, or the county/city assessment if they use market value, is sufficient. If sold close to date of death (within 6 months, say, some folks use the sales price as the basis if market is fairly stable)
In all likelihood as long as home is sold within a reasonable period after her death, there won't be capital gains to the heirs, they will likely get a loss as the selling expenses reduce the proceeds. You can also deduct expenses for keeping the house available for sale (utilities, maintenance, yard work, etc)
as "other expenses" on the estate return
Mike
- Sun Feb 25, 2024 5:13 pm
- Forum: Personal Consumer Issues
- Topic: Portugal Vacation
- Replies: 22
- Views: 2979
Re: Portugal Vacation
Use the search bar to find previous posts such as this example, as well as others
viewtopic.php?t=236746
I'm sure other folks will chime in as well.
Rick Steve does a good guidebook and has online forums
Mike
viewtopic.php?t=236746
I'm sure other folks will chime in as well.
Rick Steve does a good guidebook and has online forums
Mike
- Mon Feb 19, 2024 6:20 am
- Forum: Personal Finance (Not Investing)
- Topic: H&R Block not allowing Virginia state efile
- Replies: 15
- Views: 1585
Re: H&R Block not allowing Virginia state efile
It may be waiting on a Virginia form. Last week I had returns that couldn't efile because the Va form 760C was not yet approved for efiling (penalties)
Mike
Mike
- Sun Feb 18, 2024 3:42 pm
- Forum: Personal Finance (Not Investing)
- Topic: Help with Estate tax forms 1041 and Mass 2k-1
- Replies: 3
- Views: 398
Re: Help with Estate tax forms 1041 and Mass 2k-1
the capital losses are distributed for federal, and when the beneficiaries complete their 1040's, the cap gain will flow to MA. There isn't a separate MA capital gains deduction.
Make sure the 1041 is marked as first and final (which it sounds like it is since cap gains are distributing)
It is common for the state return to be zero and state K1's to have no data in a case like this
Mike
Make sure the 1041 is marked as first and final (which it sounds like it is since cap gains are distributing)
It is common for the state return to be zero and state K1's to have no data in a case like this
Mike
- Sun Feb 18, 2024 3:30 pm
- Forum: Personal Finance (Not Investing)
- Topic: Job Title Question
- Replies: 7
- Views: 815
Re: Job Title Question
yes, sorry, CFO and/or COO
Mike
Mike
- Sun Feb 18, 2024 1:26 pm
- Forum: Personal Finance (Not Investing)
- Topic: Job Title Question
- Replies: 7
- Views: 815
Re: Job Title Question
I'd less interested in the title (unless I planned to move on, then having CFO and/or CFO as your "official" title would be helpful)
I'd be more interested in the compensation as your taking on a much larger scope
Mike
I'd be more interested in the compensation as your taking on a much larger scope
Mike
- Sun Feb 18, 2024 8:40 am
- Forum: Personal Investments
- Topic: Seeking Roth IRA Income Restrictions Clarification
- Replies: 5
- Views: 458
Re: Seeking Roth IRA Income Restrictions Clarification
you are confusing the traditional IRA limits with the Roth IRa limits. just read a little further The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $146,000 and $161,000 for singles and heads of household, up from between $138,000 and $153,000. For married couples filing jointly, the income phase-out range is increased to between $230,000 and $240,000, up from between $218,000 and $228,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000. For Roth the issues around covered by retirement plan do not apply So you are Ok up to 230K of income (not j...
- Sat Feb 17, 2024 3:16 pm
- Forum: Personal Finance (Not Investing)
- Topic: Spouses with separate Schedule C businesses, only 1 profitable
- Replies: 2
- Views: 412
Re: Spouses with separate Schedule C businesses, only 1 profitable
In general, if you don't pass the 3 out of 5 years profitable test safe harbor, then you can use the following to assess your ability to deduct losses from the business Does the time and effort put into the activity indicate an intention to make a profit? • Do you depend on income from the activity? • If there are losses, are they due to circumstances beyond your control or did they occur in the start-up phase of the business? • Have you changed methods of operation to improve profitability? • Do you have the knowledge needed to carry on the activity as a successful business? • Have you made a profit in similar activities in the past? • Does the activity make a profit in some years? • Do you expect to make a profit in the future from the ap...
- Sat Feb 17, 2024 1:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: 1099-R Refund of Excess Roth 401k - Distribution Code
- Replies: 7
- Views: 670
Re: 1099-R Refund of Excess Roth 401k - Distribution Code
If you had gains instead of losses in the account, it would have shown the gains as taxable... since you had losses the taxable amount is correct at zero
Mike
Mike
- Sat Feb 17, 2024 1:29 pm
- Forum: Personal Finance (Not Investing)
- Topic: Tax treatment of real estate loss
- Replies: 11
- Views: 1272
Re: Tax treatment of real estate loss
Imagine what a difficult pill it will be to swallow if the IRs decides to question the return, and they have to explain how they are trying to claim a loss on a business asset that had no business use for the previous 10 yearsYour last paragraph makes a case that, since items were stored in the property, it became personal property, and that no loss would be deductible. I see your point here, but that would be a hard pill for the owners (or for me if this was my property and loss) to swallow, especially because no one could now know what, if anything, was stored there.
MarkNYC has given you good advice
Mike
- Sat Feb 17, 2024 12:50 pm
- Forum: Personal Finance (Not Investing)
- Topic: Estate/trust losses no 1041 filed - what to do?
- Replies: 1
- Views: 291
Re: Estate/trust losses no 1041 filed - what to do?
the only way to generate the K1's which would pass the losses to the beneficiaries is to file a 1041 for 2022
If the executor is not cooperating, who was the trustee of the trust? If a different person they can file the 1041
Mike
If the executor is not cooperating, who was the trustee of the trust? If a different person they can file the 1041
Mike
- Sat Feb 17, 2024 12:48 pm
- Forum: Personal Finance (Not Investing)
- Topic: FreeTaxUSA: entering two W-2s from same employer, each for different states
- Replies: 7
- Views: 820
Re: FreeTaxUSA: entering two W-2s from same employer, each for different states
Most states have credits for taxes paid to another state, but varies depending on state pair. Also make sure you have the right income allocated to each state.
Mike
Mike
- Sat Feb 17, 2024 8:57 am
- Forum: Personal Finance (Not Investing)
- Topic: FreeTaxUSA: entering two W-2s from same employer, each for different states
- Replies: 7
- Views: 820
Re: FreeTaxUSA: entering two W-2s from same employer, each for different states
Don't enter the federal from the 2nd W2. Just enter the state info, so it can handle your multi state return (assuming Freetax USA does that)
Mike
Mike
- Tue Feb 13, 2024 4:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: Sanity check - Sale of inherited land - help with tax reporting
- Replies: 5
- Views: 527
Re: Sanity check - Sale of inherited land - help with tax reporting
you would deduct them as selling expenses. When you go thru the tax software, it will ask for sales proceeds, selling expenses, and basis.
The attorney's fees are selling expenses. Reduces your profit, but is not added to basis
Mike
The attorney's fees are selling expenses. Reduces your profit, but is not added to basis
Mike
- Tue Feb 13, 2024 3:20 pm
- Forum: Personal Consumer Issues
- Topic: Chase Sapphire Preferred Not Allowing Downloads
- Replies: 16
- Views: 1461
Re: Chase Sapphire Preferred Not Allowing Downloads
I have had the Sapphire preferred for many years. On the website I see transactions, and can download into Quicken with no issues
I'd call back...
Mike
I'd call back...
Mike
- Tue Feb 13, 2024 3:16 pm
- Forum: Personal Finance (Not Investing)
- Topic: Sanity check - Sale of inherited land - help with tax reporting
- Replies: 5
- Views: 527
Re: Sanity check - Sale of inherited land - help with tax reporting
if that's all you paid, and you have documentation, then you don't need the ALTA.
Mike
Mike
- Tue Feb 13, 2024 2:46 pm
- Forum: Personal Finance (Not Investing)
- Topic: Sanity check - Sale of inherited land - help with tax reporting
- Replies: 5
- Views: 527
Re: Sanity check - Sale of inherited land - help with tax reporting
it would have been better to have an appraisal soon after she passed... but what you have is reasonable to use
Make sure he gets you the ALTA statement so in addition to 1/6 the proceeds and 1/6 the basis, you take 1/6 the selling expenses (broker fees, recording, etc) which will help reduce your capital gain
Mike
Make sure he gets you the ALTA statement so in addition to 1/6 the proceeds and 1/6 the basis, you take 1/6 the selling expenses (broker fees, recording, etc) which will help reduce your capital gain
Mike
- Sun Feb 11, 2024 7:21 pm
- Forum: Personal Finance (Not Investing)
- Topic: Head of Household when divorced
- Replies: 4
- Views: 523
Re: Head of Household when divorced
no. From IRs pub 501. you don't meet test 3
MikeHead of Household
You may be able to file as head of household if
you meet all the following requirements.
1. You are unmarried or considered unmar-
ried on the last day of the year. See Marital
Status, earlier, and Considered Unmar-
ried, later.
2. You paid more than half the cost of keep-
ing up a home for the year.
3. A qualifying person lived with you in the
home for more than half the year (except
for temporary absences, such as school).
However, if the qualifying person is your
dependent parent, your dependent parent
doesn't have to live with you.
- Sun Feb 11, 2024 4:12 pm
- Forum: Personal Finance (Not Investing)
- Topic: Form 4952: Can I choose not to deduct Interest Expense?
- Replies: 4
- Views: 558
Re: Form 4952: Can I choose not to deduct Interest Expense?
Sorry. Just like other carry forwards (cap gains, etc) you don't get to pick and choose. If you're itemizing, it will take the carry forward and apply it
you could choose not to itemize and it would carry forward to the next time you itemize.
Mike
you could choose not to itemize and it would carry forward to the next time you itemize.
Mike
- Sun Feb 11, 2024 12:16 pm
- Forum: Personal Finance (Not Investing)
- Topic: Recording sale of house in trust
- Replies: 5
- Views: 606
Re: Recording sale of house in trust
So to clarify, the house was part of the trust, then the trust would be the vehicle that sells the property, and all individuals that were part of the inheritance would gain/loss from that activity. correct
Distribution of assets and sale of house was within 4 months of her passing so technically everything was the cost basis so there was no profits.
correct. Assuming you had some costs to sell the house (brokerage, recording fees, etc) those would contribute to a loss, which would get passed to beneficiaries
The property sale was after she passed away so she would not be recording the sale on her final federal tax return. correct
Top
- Sun Feb 11, 2024 8:33 am
- Forum: Personal Finance (Not Investing)
- Topic: Recording sale of house in trust
- Replies: 5
- Views: 606
Re: Recording sale of house in trust
in most scenarios, your Mom's trust would become irrevocable on her passing. Then any income/expenses get reported on a separate trust return (form 1041)
any gains or losses would be allocated to the beneficiaries on this form
so it sounds like all the investments got distributed, likely very little income, and the house sale would be reported also. You mention no taxes, but also a $160K gain. The house (depending on history) would have gotten a stepped up basis at her passing, so after any expenses the trust likely had a loss, which would be reported to beneficiaries on their K1
Her final 1040 should cover income and expenses thru her DOD
Mike
any gains or losses would be allocated to the beneficiaries on this form
so it sounds like all the investments got distributed, likely very little income, and the house sale would be reported also. You mention no taxes, but also a $160K gain. The house (depending on history) would have gotten a stepped up basis at her passing, so after any expenses the trust likely had a loss, which would be reported to beneficiaries on their K1
Her final 1040 should cover income and expenses thru her DOD
Mike
- Sat Feb 10, 2024 10:30 am
- Forum: Personal Finance (Not Investing)
- Topic: Real estate deposit forfeited
- Replies: 15
- Views: 2054
Re: Real estate deposit forfeited
No. You didn't actually make a purchase, so there's no transaction to take a capital loss against
Sorry that happened
Mike
Sorry that happened
Mike
- Fri Feb 09, 2024 3:37 pm
- Forum: Personal Finance (Not Investing)
- Topic: Estimated tax payment question
- Replies: 3
- Views: 370
Re: Estimated tax payment question
as long as you file jointly, you are treated as one entity. One spouse can do all the withholding and the other none if desired
Mike
Mike
- Thu Feb 08, 2024 8:24 am
- Forum: Personal Finance (Not Investing)
- Topic: Using whole life to pay off student loan debt?
- Replies: 27
- Views: 2253
Re: Using whole life to pay off student loan debt?
I couldn't connect to the website, but I believe you have diagnosed this correctly as a spin on "infinite banking". the person who makes out best in these scenarios is the insurance agent.
All of the issues you have seen with infinite banking will plague this as well. Just use the funds to pay off the student loans and get term life if insurance is needed
Mike
All of the issues you have seen with infinite banking will plague this as well. Just use the funds to pay off the student loans and get term life if insurance is needed
Mike
- Sun Feb 04, 2024 6:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: advice needed on asking for job leads
- Replies: 5
- Views: 809
Re: advice needed on asking for job leads
on the govt contact... I'd reach out and say you know my work, I'm looking to make a change, do you have any feedback on what types of roles I would be a good fit for? He/she can give feedback and leads if they have them.
The second one, that would be weird. They don't have any work relationship with you. Since you talk to his wife maybe mention to her you are looking to change roles and thinking of private sector. Maybe she brings up with her husband.
Mike
The second one, that would be weird. They don't have any work relationship with you. Since you talk to his wife maybe mention to her you are looking to change roles and thinking of private sector. Maybe she brings up with her husband.
Mike
- Sun Feb 04, 2024 3:22 pm
- Forum: Personal Consumer Issues
- Topic: Trip to Italy
- Replies: 28
- Views: 2963
Re: Trip to Italy
Agree with other posters, 1 or perhaps 2 cities. You can day trip to Pisa from Florence
For train tickets, the long distance (Rome to Florence, Florence to Venice, Venice/Rome book as far in advance to get a great price.
Day trips like Florence to Pisa you can just book day of in Trenitalia app
Mike
For train tickets, the long distance (Rome to Florence, Florence to Venice, Venice/Rome book as far in advance to get a great price.
Day trips like Florence to Pisa you can just book day of in Trenitalia app
Mike
- Sun Feb 04, 2024 8:34 am
- Forum: Investing - Theory, News & General
- Topic: Inherited Roth that was created with multiple conversions
- Replies: 24
- Views: 2102
Re: Inherited Roth that was created with multiple conversions
since the Roth IRA's are inherited now, they have the 10 year rule to empty the IRA and the distributions are qualified, and do not have the 10% penalty see IRS pub 590B, specifically section 2c on qualified distributions https://www.irs.gov/pub/irs-pdf/p590b.pdf What Are Qualified Distributions? A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements. 1. It is made after the 5-year period beginning with the first tax year for which a contribution was made to a Roth IRA set up for your benefit. 2. The payment or distribution is: a. Made on or after the date you reach age 591/2, b. Made because you are disabled (defined earlier), c. Made to a beneficiary or to your estate after your de...
- Sun Feb 04, 2024 8:26 am
- Forum: Personal Investments
- Topic: Offsetting suspended state tax loss
- Replies: 2
- Views: 408
Re: Offsetting suspended state tax loss
When you eventually sell this passive investment in California then the passive loss should flow thru to offset an CA income you have from the dispo.
Filing a previous year to take advantage of a 24 loss does not work
Howe long do you think you'll have this passive asset/loss situation?
Mike
Filing a previous year to take advantage of a 24 loss does not work
Howe long do you think you'll have this passive asset/loss situation?
Mike
- Sat Feb 03, 2024 1:57 pm
- Forum: Personal Investments
- Topic: Help With Explaining These 2 Funds
- Replies: 15
- Views: 1067
Re: Help With Explaining These 2 Funds
SOAEX has lots of MLP's. So it returns payouts, plus return of capital
they have adopted a fixed monthly payout, and the sources for that can be dividends they receive, return of capital distributions, and return of the owners investment in the funds
https://www.soafunds.com/_files/ugd/4a0 ... 689b3b.pdf
So pays a nice "dividend" but is returning a lot of the fund holders money
In addition to the front load it's a 1.5% annual expense
The person asking should read the prospectus for both funds and understand that although they both invest in energy they are not similar funds at all
Mike
they have adopted a fixed monthly payout, and the sources for that can be dividends they receive, return of capital distributions, and return of the owners investment in the funds
https://www.soafunds.com/_files/ugd/4a0 ... 689b3b.pdf
So pays a nice "dividend" but is returning a lot of the fund holders money
In addition to the front load it's a 1.5% annual expense
The person asking should read the prospectus for both funds and understand that although they both invest in energy they are not similar funds at all
Mike
- Sat Feb 03, 2024 8:23 am
- Forum: Personal Finance (Not Investing)
- Topic: Self-directed IRA Tax time
- Replies: 5
- Views: 434
Re: Self-directed IRA Tax time
When you say started... you made a contribution? Or rolled money in from an existing IRA?
If you made a contribution you enter that in your tax software...
if a rollover you would have gotten a 1099R from the previous custodian that you enter in your tax software, making sure to tell it you rolled it over
Any transactions within the IRa don't get reported
Mike
If you made a contribution you enter that in your tax software...
if a rollover you would have gotten a 1099R from the previous custodian that you enter in your tax software, making sure to tell it you rolled it over
Any transactions within the IRa don't get reported
Mike
- Wed Jan 31, 2024 4:40 pm
- Forum: Personal Finance (Not Investing)
- Topic: Custodial Accounts for Kids For Simplicity...Create and Transfer to Trust Later
- Replies: 1
- Views: 255
Re: Custodial Accounts for Kids For Simplicity...Create and Transfer to Trust Later
Custodial accounts by definition belong to the person in whose name they were set up in, and transfer to them at age of majority (varies by state 18/21/25)
Once funds are in the custodial account, they are only supposed to be used for the benefit of the minor. Moving it to a trust so they don't get control of the money would violate that
If you are concerned, then keep money in your name and set up a trust at a later time of your choosing
Mike
Once funds are in the custodial account, they are only supposed to be used for the benefit of the minor. Moving it to a trust so they don't get control of the money would violate that
If you are concerned, then keep money in your name and set up a trust at a later time of your choosing
Mike
- Wed Jan 31, 2024 2:19 pm
- Forum: Personal Finance (Not Investing)
- Topic: Cash offer on home needing proof of funds
- Replies: 40
- Views: 3691
Re: Cash offer on home needing proof of funds
schwab has a function to print a balance letter you can use for this purpose.
I assume other brokerages have this as well
Mike
I assume other brokerages have this as well
Mike
- Wed Jan 17, 2024 4:29 pm
- Forum: Personal Finance (Not Investing)
- Topic: Parental leave with multiple employers
- Replies: 12
- Views: 921
Re: Parental leave with multiple employers
If you are an independent contractor and not an eligible employee of one or both of the companies, it appears your coverage depends on if you opted into the state plan
https://www.wcb.ny.gov/content/main/for ... -Sheet.pdf
New York has a pretty comprehensive site you can look thru. If you think you are covered, apply with your employers insurance. I have no idea what they will think about trying to claim from 2 employers, although If you qualify at both based on hours, could be
https://paidfamilyleave.ny.gov/eligibility
Mike
https://www.wcb.ny.gov/content/main/for ... -Sheet.pdf
New York has a pretty comprehensive site you can look thru. If you think you are covered, apply with your employers insurance. I have no idea what they will think about trying to claim from 2 employers, although If you qualify at both based on hours, could be
https://paidfamilyleave.ny.gov/eligibility
Mike
- Tue Jan 16, 2024 3:30 pm
- Forum: Personal Finance (Not Investing)
- Topic: Can Mom walk away from reverse mortgage home?
- Replies: 13
- Views: 2608
Re: Can Mom walk away from reverse mortgage home?
Assuming this is a HECM reverse mortgage, it will be non recourse. If the current balance is higher than the current value, you can hand in the keys to the servicer (HUD has a contractor that all HECM's with balance >95% of original home value take over the servicing) That is far easier said than done in my experience. When my Dad was ready to move, his balance on a HECM reverse mortgage he and my mom had taken out to buy a place was way underwater. It took me 9 months of follow up including BBB complaints, CFPB complaints, and contacting congressperson and senator to get them to process the deed in lieu of foreclosure. The lady who ran the homeowners association told me there was one unit the person had passed away 4 years previously and t...
- Mon Jan 15, 2024 10:31 am
- Forum: Personal Finance (Not Investing)
- Topic: Minor's social security benefits while parent still working
- Replies: 21
- Views: 2112
Re: Minor's social security benefits while parent still working
Appears the child only gets benefit if parent receiving benefits
https://faq.ssa.gov/en-US/Topic/article/KA-02053
Mike
https://faq.ssa.gov/en-US/Topic/article/KA-02053
Mike
- Sat Jan 13, 2024 1:09 pm
- Forum: Investing - Theory, News & General
- Topic: Preparing for a talk with my financial advisor
- Replies: 78
- Views: 10122
Re: Preparing for a talk with my financial advisor
It's not clear to me that this is a bad deal, depending on where you live (HCOL/MCOL/LCOL) and what amount of assets he is managing for you(Full disclosure, I pay him $3200/year and it includes my business and personal taxes, as well as a random business questions I have throughout the year).
You can look at Portfolio visualizer and get as feel for what the results would be in a 3 fund vs what you are in now. But the tax returns and business consulting, and any help they give you on behavioral issues (don't sell at bottom, jump in at top) may well be worth what you are paying for.
You'd have to figure out how much you save on mgt fees vs what it would cost to get the tax stuff done and having someone to bounce things off
Mike
- Sat Jan 13, 2024 10:14 am
- Forum: Personal Investments
- Topic: Index Universal Life product
- Replies: 57
- Views: 6435
Re: Index Universal Life product
Use the search box to learn more about these. The reason your relative is pushing this hard is that there is a huge commission waiting for them if they sell this to you
Here's a sample thread
viewtopic.php?t=372827
Run, don't walk away
Mike
Here's a sample thread
viewtopic.php?t=372827
Run, don't walk away
Mike
- Sat Jan 13, 2024 8:56 am
- Forum: Personal Finance (Not Investing)
- Topic: Traditional IRA to Roth IRA conversion
- Replies: 4
- Views: 418
Re: Traditional IRA to Roth IRA conversion
search the forum for back door Roth. This is a well known path to get money into Roth
This article from the WIKI can get you started
https://www.bogleheads.org/wiki/Backdoor_Roth
Mike
This article from the WIKI can get you started
https://www.bogleheads.org/wiki/Backdoor_Roth
Mike
- Sat Jan 13, 2024 8:42 am
- Forum: Personal Finance (Not Investing)
- Topic: Contributing to both Solo 401K & Solo 401K Roth
- Replies: 22
- Views: 1699
Re: Contributing to both Solo 401K & Solo 401K Roth
yes, you can contribute in whatever mix makes sense for you, just as at a regular employer sponsored 401K. Key, as you noted, the combined total has to stay within the contribution limits
Mike
Mike
- Thu Jan 11, 2024 8:28 am
- Forum: Personal Finance (Not Investing)
- Topic: Mechanics of taking lump sum of a pension
- Replies: 5
- Views: 614
Re: Mechanics of taking lump sum of a pension
Reach out to the custodian at your former employer to get the balance you can roll over and the process they used (at my former employer it was Fidelity who also did the 401K)
You'll need to call them, get forms, if you are married your spouse will likely have to sign and get notarized a form saying the pension is being rolled over, and then they will send a check to you, or your selected custodian.
Some place may do it immediately, some may take some time/do it once qtr or some other time frame. Mine took about 8 weeks although no one could tell me why it took that long. Wasn't tied to a quarterly schedule
Mike
You'll need to call them, get forms, if you are married your spouse will likely have to sign and get notarized a form saying the pension is being rolled over, and then they will send a check to you, or your selected custodian.
Some place may do it immediately, some may take some time/do it once qtr or some other time frame. Mine took about 8 weeks although no one could tell me why it took that long. Wasn't tied to a quarterly schedule
Mike
- Thu Jan 11, 2024 8:20 am
- Forum: Personal Finance (Not Investing)
- Topic: Federal Tax Exempts S02
- Replies: 4
- Views: 757
Re: Federal Tax Exempts S02
This appears to be the federal tax withheld line... she's claiming 2 exemptions?
Easiest answer is new withholding tables for the new tax year
Mike
Easiest answer is new withholding tables for the new tax year
Mike
- Thu Jan 11, 2024 8:14 am
- Forum: Personal Finance (Not Investing)
- Topic: Taxes for selling house
- Replies: 3
- Views: 525
Re: Taxes for selling house
From Publication 523... only one spouse needs to actually own
MikeEligibility Step 2—Ownership
Determine whether you meet the ownership requirement. If you owned the home for at least 24 months (2
years) out of the last 5 years leading up to the date of sale
(date of the closing), you meet the ownership requirement. For a married couple filing jointly, only one spouse
has to meet the ownership requirement.
- Tue Jan 09, 2024 1:11 pm
- Forum: Personal Investments
- Topic: Schwab automatic investment question
- Replies: 1
- Views: 455
Re: Schwab automatic investment question
no trick I am aware of to get around that at Schwab. If you don't have the funds, the transaction does not go thru.
If you know you have a minimum it will always be then you can set that up and come back at some frequency to trade any remainder.
Mike
If you know you have a minimum it will always be then you can set that up and come back at some frequency to trade any remainder.
Mike
- Tue Jan 09, 2024 12:20 pm
- Forum: Personal Finance (Not Investing)
- Topic: One time estimated tax payment jan 16 for 2023 taxes vs extension extra payment to IRS
- Replies: 20
- Views: 1945
Re: One time estimated tax payment jan 16 for 2023 taxes vs extension extra payment to IRS
you don't need a standing arrangement. No explanations needed. Just get the money in.
EFTPS is easy to use
https://www.irs.gov/payments/eftps-the- ... ent-system
All the ways to pay
https://www.irs.gov/payments
Mike
EFTPS is easy to use
https://www.irs.gov/payments/eftps-the- ... ent-system
All the ways to pay
https://www.irs.gov/payments
Mike
- Tue Jan 09, 2024 10:36 am
- Forum: Personal Finance (Not Investing)
- Topic: Joint bank account between father and son
- Replies: 20
- Views: 2692
Re: Joint bank account between father and son
Too late for that now, 2023 has wrapped up. The 709 is not complex, and as noted, no tax due, just reduction of lifetime exemption.If I would return the withdrawal, would I need to file 709? I have heard horror stories on being audited.
Please be careful going forward on things you do with your Dad's money. things you meant as positive can come back and bite you later, esp if otehr siblings involved.
Mike
- Tue Jan 09, 2024 10:32 am
- Forum: Personal Finance (Not Investing)
- Topic: One time estimated tax payment jan 16 for 2023 taxes vs extension extra payment to IRS
- Replies: 20
- Views: 1945
Re: One time estimated tax payment jan 16 for 2023 taxes vs extension extra payment to IRS
Please check if your withholding meets the 110% of your tax owed last year. If it does, then you are in safe harbor and don't need to make an estimated payment (I used 110% since you mentioned 35% tax bracket)
If it doesn't, then make an estimated payment now. It will decrease any penalties for under withholding. Don't wait to make an extension payment if you are not in safe harbor as that will keep the clock running on penalties
For 2024, check in mid year and in Sept on how your year is going, and either make estimates or adjust your work withholding. Work with holding counts as being done evenly across the year even if you do it all in Q4
Mike
If it doesn't, then make an estimated payment now. It will decrease any penalties for under withholding. Don't wait to make an extension payment if you are not in safe harbor as that will keep the clock running on penalties
For 2024, check in mid year and in Sept on how your year is going, and either make estimates or adjust your work withholding. Work with holding counts as being done evenly across the year even if you do it all in Q4
Mike
- Tue Jan 09, 2024 9:11 am
- Forum: Personal Finance (Not Investing)
- Topic: TurboTax - How to Report I Bond Interest Annually?
- Replies: 7
- Views: 1443
Re: TurboTax - How to Report I Bond Interest Annually?
If you have interest income already from previous years and you want to start reporting for 2023 onwards, you make a special election (Sec 454) which tells the IRS you are moving to this method, and all interest to date on all EE/I bonds you own must be reported
Then each year you report that years interest.
I know in our tax prep software we have an election that gets submitted, but if you have been deferring but switching to accrual (every year) you can do that without IRS approval. If you want to switch back there is a form
For TT 1099, just say US Treasury, skip FEIN
the interest is Box 3, Us Govt.
https://www.treasurydirect.gov/savings- ... st--173306
Mike
Then each year you report that years interest.
I know in our tax prep software we have an election that gets submitted, but if you have been deferring but switching to accrual (every year) you can do that without IRS approval. If you want to switch back there is a form
For TT 1099, just say US Treasury, skip FEIN
the interest is Box 3, Us Govt.
https://www.treasurydirect.gov/savings- ... st--173306
Mike
- Mon Jan 08, 2024 2:37 pm
- Forum: Personal Finance (Not Investing)
- Topic: IRA tax deduction
- Replies: 12
- Views: 1077
Re: IRA tax deduction
Here are the income limits for 2023. you should be fine for a contribution, and for your spouse as well.
You don't really need to use the Spousal concept at your AGI, that would come into play if your MAGI was too high, you could still contribute for her and get the deduction as she's not covered by a retirement plan at work
https://www.irs.gov/retirement-plans/20 ... an-at-work
Mike
You don't really need to use the Spousal concept at your AGI, that would come into play if your MAGI was too high, you could still contribute for her and get the deduction as she's not covered by a retirement plan at work
https://www.irs.gov/retirement-plans/20 ... an-at-work
Mike