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Faith20879

I plan to retire 6/30/2023. I will be 65 in July 2023. Retiring is a IRMMA life changing event (LCE). My MAGI will be under the IRMMA threshold for 2023 (tax year 2021). My MAGI will be over to the third IRMMA tier (due to Roth conversions) for 2024 (tax year 2022) and 2025 (tax year 2023). I expect a letter from Social Security for an IRMMA increase in 2024 based on my 2022 tax return and also the same for 2025 based upon my 2023 return. If I file form SSA-44 (appeal IRMMA) in 2024 to reduce the IRMMA amount due to the retirement of June 2023 based upon my 2024 estimated MAGI of $116,000 will this work and put me back to paying MFJ under $194,000 – at approx. $164.90. Will I also need to do another appeal in 2025 with the same MAGI of $11...

Faith20879

Here in the Mid-Atlantic Region, we get NPR, BBC, and NHK for free via over the air antenna.

Faith20879

I plan to retire 6/30/2023. I will be 65 in July 2023. Retiring is a IRMMA life changing event (LCE). My MAGI will be under the IRMMA threshold for 2023 (tax year 2021). My MAGI will be over to the third IRMMA tier (due to Roth conversions) for 2024 (tax year 2022) and 2025 (tax year 2023). I expect a letter from Social Security for an IRMMA increase in 2024 based on my 2022 tax return and also the same for 2025 based upon my 2023 return. If I file form SSA-44 (appeal IRMMA) in 2024 to reduce the IRMMA amount due to the retirement of June 2023 based upon my 2024 estimated MAGI of $116,000 will this work and put me back to paying MFJ under $194,000 – at approx. $164.90. Will I also need to do another appeal in 2025 with the same MAGI of $11...

Faith20879

2ball wrote: ↑Sun Mar 26, 2023 6:17 pm ...
I am mailing in my state return, because TurboTax wanted to charge me $25 to e file my state taxes. E-filing state taxes is not included in the bundle from amazon?

If you have not mailed it yet, you can consider using Maryland's free online iFile system. You already have the forms filled, it should be effortless to cut/paste the numbers into the online system. You will need to establish an online account.

Faith20879

I remember there was a recent discussion:
viewtopic.php?t=394307

Faith20879

Some one in this tread also complained about it (scroll to near the end) :
viewtopic.php?t=318903

Faith20879

Was just in the Galapagos in January. Snorkeled twice a day, swam with penguins, giant turtles, sea lions, sharks, iguanas, flounders, rays, and all kinds of colorful fish. I have only snorkeled once before this so can't say if this is the best place, but I almost didn't want to come home.

Faith20879

lynneny wrote: ↑Mon Mar 20, 2023 12:31 am ...I could keep my account, with some restrictions. Living outside the U.S., I can keep or sell any of my holdings, but can´t buy more, except for dividend reinvestment. ...

This is exactly what Vanguard said when I asked in a secured email a couple of years ago.

Faith20879

jebmke wrote: ↑Sat Mar 18, 2023 4:16 pm
Not sure you can do QCDs anonymously. I am pretty sureyou need to get an acknowledgement from the recipient the same as you would with a Schedule A donation. You may need this to satisfy an inquiry from the IRS.

I think this is the key point. I glanced pub 1771 but didn't see a mention of QCD, I think it is for reporting regular charity giving. Disclaimer: I have not started qcd but am very keen to learn.

Faith20879

Agree with the previous poster. It may even turn out be in your favor. For example your basis is 6000 and the value converted is 5000, you may get to use that 1000 in your advantage next year. I have a client in similar situation and ended up with about 300 extra basis. He's been using it a little bit each year by carrying 4 decimals in form 8606 line 10. The key is to keep a good 8606. HTH.

Faith20879

dcop wrote: ↑Thu Mar 16, 2023 2:16 pm Now it shows ommorrow the 17th but my pending order still shows the 16th. Is it common for this to change?

https://prnt.sc/N3fm2IKlAMW3

Where did the screenshot come from? Was it of your pending order? It shows an auction date 03/17/2023 which is consistent with TD.

Faith20879

international001 wrote: ↑Wed Mar 15, 2023 8:36 pm I found this:

https://www.ncdor.gov/taxes-forms/indiv ... 1099-int#8

Does it apply to all states?

I am in MD and have never filed an amendment because of a 1099-G. For the following year though, I use the SALT refund worksheet to decide whether such refund is taxable. If it is, add to my income on schedule 1, otherwise ignore. This is only applicable if I itemize in previous year.

Faith20879

Frontline script wrote: NOURIEL ROUBINI, Economist:

People like myself, like Larry Summers and other, saw that that massive stimulus—it was unprecedented, an order of magnitude greater than the one we had after the global financial crisis—would lead to excessive demand, overheating and inflation.

So we had an unprecedented fiscal stimulus. An unprecedented monetary stimulus. We had bail-out checks sent to everybody—every household, every firm, every financial institution. It was too much and should have been more selective.

This statement is absolutely false. Doesn't frontline check their guests' claim?

Faith20879

RetireGood wrote: ↑Wed Mar 15, 2023 1:19 am Hi

Please let me know below.

1) I have a T-Bill matured today 03/14 @ VG, but the money (principal) is not available to buy other security (T-Bill or otherwise) yet? when will it be available?

At Vanguard, the money is available to trade on the maturity day. IOW, a Tbill is maturing 03/14, you can use it to purchase the next Tbill that has a settlement date of 03/14. The trade/balance screen on 03/14 may look a little convoluted but all will be sorted out by 03/15.

Faith20879

... Was told by the person doing my taxes that my 2021 income was above limit for Roth IRA Recharacterized the $7,500 from Roth IRA to Traditional IRA in April 2022 Contributed $4,500 to Traditional IRA + backdoor-ed all $12,000 to Roth IRA as soon as the funds settled in 2022 (I had $1.39 in accrued interest in my Traditional IRA on Dec 31 2022) ... When you recharacterized the 7500 in April 2022, did your tax person file a 8606 for 2021? It would have been essentially the same as you had contributed to a traditional IRA for 2021. This means your line #2 on your form 8606 for 2022 would have been 7500+4500=12000. No, line 2 in 2022 would be $6,000, the amount of his 2021 contribution. You are right. Total basis should be in line #3, not l...

Faith20879

... Was told by the person doing my taxes that my 2021 income was above limit for Roth IRA Recharacterized the $7,500 from Roth IRA to Traditional IRA in April 2022 Contributed $4,500 to Traditional IRA + backdoor-ed all $12,000 to Roth IRA as soon as the funds settled in 2022 (I had $1.39 in accrued interest in my Traditional IRA on Dec 31 2022) ... When you recharacterized the 7500 in April 2022, did your tax person file a 8606 for 2021? It would have been essentially the same as you had contributed to a traditional IRA for 2021. This means your line #2 on your form 8606 for 2022 would have been 7500+4500=12000. No, line 2 in 2022 would be $6,000, the amount of his 2021 contribution. You are right. Total basis should be in line #3, not l...

Faith20879

forthegoodmoments wrote: ↑Fri Mar 10, 2023 6:23 pm ...
Was told by the person doing my taxes that my 2021 income was above limit for Roth IRA
Recharacterized the $7,500 from Roth IRA to Traditional IRA in April 2022
Contributed $4,500 to Traditional IRA + backdoor-ed all $12,000 to Roth IRA as soon as the funds settled in 2022 (I had $1.39 in accrued interest in my Traditional IRA on Dec 31 2022)
...

When you recharacterized the 7500 in April 2022, did your tax person file a 8606 for 2021? It would have been essentially the same as you had contributed to a traditional IRA for 2021. This means your line #2 on your form 8606 for 2022 would have been 7500+4500=12000.

Faith20879

rolex4 wrote: ↑Fri Mar 10, 2023 5:14 pm Thanks. I have 60K emergency fund. Due to SVB issue (although it’s not relevant), I moved my emergency fund (90%) of it to Fidelity Brokerage and invested in 3 month Tbill given it is giving 4.9% yield upon maturity. Based on interest rates, I will reinvest. Do you think it’s a good idea. The HYSA that had my emergency fund is FDIC (250K protected) with 4.55% until august. however; it is managed by a bank that is FDIC.

I think it is a good idea. Tbills interests are not taxed in my state and there are other state allowed exemptions. When CDs and Tbills have comparable rates, I will choose Tbills any day.

Faith20879

acepedro45 wrote: ↑Fri Mar 10, 2023 10:50 am You could also set up a bunch of recurring daily reminders if the relative isn't comfortable controlling Alexa through an app.

Alexa, set an alarm for 9 am each day.

Alexa, set an alarm for 9:30 am each day.

Alexa, set an alarm for 10:00 am each day...

This is a workable solution. Thank you. PS, she is indeed from the pre app generation.

Faith20879

I am helping an older relative who recently had a surgery to set up a reminder on her echo to get up to walk every 30 minute.

I : "Alexa set a reminder for every 30 minutes."
Alexa : " what is the reminder for?"
I : "Get up and walk."
Alexa : "OK, will remind you in 30 minutes."

But Alexa only reminds once. I have tried words like "recurring " and "repeat" but to no avail. What do I need to say to make it repeat?

Thanks in advance for your help!

Faith20879

mbres60 wrote: ↑Thu Mar 09, 2023 3:06 pm Thanks all! I checked the MD tax booklet and see that you only need 1099r if Md tax was taken out. Spouse did not realize that. Thanks for the education. . I guess MD only cares about income with MD tax taken out or is taxable. Federal 1040 needed the info for the rollover to know that they didn't need to tax it. Therefore we don't need to worry about MD.

BTW we use the MD iFile. Spouse hates doing taxes but ours are not real complicated... mostly.

Thanks again.

I also use MD ifile and those are the two situations that you need to simulate the 1099R.

Faith20879

As mentioned in OP it was the second amount that he did the 60 day rollover to tIRA. The first distribution was his regular RMD. Also, you must have chosen the option to have TSP not take out federal taxes. We chose to have them taken out. That explained things a bit. As to MD 502, I don't enter every 1099R unless I need it to show state taxes withholding or to claim pension exclusion. Not sure what you mean here. The 1099-R needs to be entered on the Federal return. The Federal return has to be completed first to do a MD return. By then, the R is already entered. Yeah I should've said when I filed MD 502 I don't enter every 1099R... I don’t know what software OP is using, so I was just making a comment about what I did.

Faith20879

I've bought close to 60 Tbills all at Vanguard since the rate hike started. Their email confirmations have been hit-or-miss, actually more like received one out of every 20 executions. I've learned to ignore them, misfired or not. The good news is every time after settlement, I'd always download the auction result pdf from TD and compare it with VG's numbers. There has never been a discrepancy.

Unfortunately I did not participate in the auction in question so can't vouch for it.

Faith20879

jpohio wrote: ↑Thu Mar 09, 2023 8:27 am I am following this as I take my first RMD in 2023...

You didn't ask this. But I am under the impression that with the new SECURE ACT 2.0, everyone who turns 72 this year doesn’t start RMD until 2024.

Or, you actually should've started last year but elected to take two this year.

Not quizzing, just trying to check my understanding.

Faith20879

mbres60 wrote: ↑Thu Mar 09, 2023 8:50 am As mentioned in OP it was the second amount that he did the 60 day rollover to tIRA. The first distribution was his regular RMD. Also, you must have chosen the option to have TSP not take out federal taxes. We chose to have them taken out.

That explained things a bit.

As to MD 502, I don't enter every 1099R unless I need it to show state taxes withholding or to claim pension exclusion.

Faith20879

My spouse received two payments from the TSP in 2022. The first was for the exact amount of his RMD. The second was over and above the RMD. He rolled that entire amount, including withheld federal taxes, into a tIRA within the 60 day limit. Was the first payment the actual RMD for 2022? If yes, i don't believe you can roll that into an IRA. The second payment sounded like an legit rollover. Did you say TSP withheld fed taxes? That doesn't sound right. We've done the same rollover twice from TSP and never had taxes taken out. Rolling back in within 60 days is a real strategy. I've seem folks here talked about it many times, even Kiplinger's mentioned it too. The AGI on MD 502 flows from 1040. If both payments were treated as rollover, you c...

Faith20879

buildingthefuture wrote: ↑Tue Mar 07, 2023 8:51 am
I've read https://www.bogleheads.org/wiki/Backdoor_Roth and want to check my understanding please
I want to convert it to a Roth IRA as my income limits mean that i can not deduct this contribution from my tax bill.

First of all, cannot deduct your traditional IRA does not necessarily mean you cannot contribute to a Roth IRA directly. Here is what wiki says:
https://www.bogleheads.org/wiki/Roth_IRA

When you convert a nondeductible traditional IRA (which is what you have) to Roth, you will be taxed on the gains only. For example, you contributed 6000, by the time of conversion it was worth 6000.90, you will add .90 to you income and pay taxes on that.

Faith20879

Outer Marker wrote: ↑Sat Mar 04, 2023 1:58 pm I'm too cheap to do it.

If you are as cheap as me

I use my state's online filing system, free and instant. Got our refunds in 7 workdays.

Faith20879

abuss368 wrote: ↑Thu Mar 02, 2023 7:19 pm
I suspect the number files grows at a fast rate over a year correct?

Yes they do. I use a couple of multi-TB hard drives for backup and they do get filled up. My problem is that I also scan certain documents with my cellphone when download is not available. These pdfs can take up a few GB, much bigger than typical. I had to zip up the early years' folders to save space and that helped.

Faith20879

A couple of thoughts came to mind:
1. Double check her earned income to see if she is eligible to contribute to a Roth IRA directly. It is worth the effort.
2. If this IRA she's been contributing to is her only IRA, then yes it is beneficial to convert to Roth now as the gains at this point should still be small. She'll be taxes only on the gains.
3. With a (nondeductible) traditional IRA the gains are tax-deferred and a Roth IRA is tax-free, you can easily see which one is more preferable.

You didn't say so I am assuming this is a nondeductible tIRA.

Faith20879

Silk McCue wrote: ↑Thu Mar 02, 2023 8:54 am
Faith20879 wrote: ↑Thu Mar 02, 2023 8:39 am Assuming the check was mailed to OP's friend and Assuming the check has not been "washed", can any John Doe deposit a check that was issued to "MS FBO someone" to his own account?
No.

Cheers

Thanks for answering my question. So for this theft to have happened, the check must've been altered first then.

Faith20879

Assuming the check was mailed to OP's friend and Assuming the check has not been "washed", can any John Doe deposit a check that was issued to "MS FBO someone" to his own account?

Faith20879

Rajsx wrote: ↑Wed Mar 01, 2023 1:24 pm
What have you used the I Bond money for ?

For retirement.

We have an old fashioned three-legged income stream: pension+SS 50%, saving bonds 30%, stocks 20%.

Faith20879

JenniferW wrote: ↑Sun Feb 26, 2023 10:03 am ...
I'll report back every few months to share how I'm doing. ...

Yes please do keep us posted on your progress. I think it is a good exercise and I applaud your effort. There is nothing wrong with setting a number as the starting point. Staying under is great but going over a little isnt going to break the bank either. I think this will show how flexible you can be when planning for retirement.

My househould never had a budget but has always tracked expenses up till our retirement. I think when you get a good handle of your expenses and when you get to as old as we are, a budget becomes not as important.

BtW, most of the items you listed aren't really discretionary, especially in this 21th century.

Faith20879

Following with interest. We will start our first RMD in 2024 (saved by SECURE Act 2.0). Hopefully things will be worked out by then.

mbres60 wrote: ↑Tue Feb 07, 2023 4:49 pm They are a mess!

Ha!
We started our FERS annuity in 2022, set a fixed amount Fed withholding and everything worked fine. Come 2023, it reverted back to the W4 that was used when we were working. OPM helpdesk couldn't explain why. They said this hasn't happened to anyone except us.

Faith20879

fogalog wrote: ↑Thu Feb 23, 2023 5:28 pm
Faith20879 wrote: ↑Thu Feb 23, 2023 2:51 pm
FreddieFIRE wrote: ↑Thu Feb 23, 2023 12:36 pm This sounds like Vanguard.
How can you tell?
Vanguard have made mistakes before related to covered / non-covered / SpecID / FIFO.

My bad and I apologize. My casual comment has sidetracked the discussion.

I think that brokerage bundling D and E types of transactions under the same fund name is a bad idea. They should be listed separately and labeled clearly as D or E.

Faith20879

I once had a friend told me:

"Index funds? Aren't those the kind that drops like a rock when markets are going down? They're just the dumbest thing in the universe."

Faith20879

FreddieFIRE wrote: ↑Thu Feb 23, 2023 12:36 pm This sounds like Vanguard.

How can you tell?

Faith20879

I've never seen that issue and I've switched the cell number that is associated with my Google number a bunch of times . The settings are overly complicated and a bit counterintuitive but it has always worked once set up correctly. I was just thinking about this scenario yesterday. What do I need to do if I have a new cell number or a new phone: 1. If my phone is still the same with a new number, GV app is still installed, would it guide me to link the new number? 2. If I now have a new phone but still have the old sim, after installing the GV, do I need to re-link the same old number? Could you please show some basic steps for this tech-challenged individual? Thank you very much! 1. No, you’ll have to go into the Google Voice app’s Settin...

Faith20879

cacophony wrote: ↑Tue Feb 21, 2023 7:25 pm I've never seen that issue and I've switched the cell number that is associated with my Google number a bunch of times. The settings are overly complicated and a bit counterintuitive but it has always worked once set up correctly.

I was just thinking about this scenario yesterday. What do I need to do if I have a new cell number or a new phone:
1. If my phone is still the same with a new number, GV app is still installed, would it guide me to link the new number?
2. If I now have a new phone but still have the old sim, after installing the GV, do I need to re-link the same old number?

Could you please show some basic steps for this tech-challenged individual?

Thank you very much!

Faith20879

oldfatguy wrote: ↑Thu Jan 26, 2023 12:55 pm Filed my (very simple)1040 yesterday. No glitches and the return was accepted by the IRS.

Same here. We have the usual stuff - 1099r, div/int, and b.

Faith20879

... I do about 24 direct rollovers a year and I don't have time for this. $tar-Lord, I feel your pain. Hope you find a solution for this to work relatively soon, it is a way more superior method than the alternative. Sending 24 checks a year via USPS is not sustainable in my opinion. As a side note, I am curious, did the App give an error message? Did it say something to the effects of "check image fuzzy", "check issued incorrectly" or something else that may show a clue? We are new adoptee to the VG App, have only been using it since 2021. Did three rollovers 2021 and three in 2022, all deposited with App without any problem (two more to go knock on wood). To keep the camera perfectly still, DH made a small platform fo...

Faith20879

AnnetteLouisan wrote: ↑Sun Feb 12, 2023 8:43 pm
Faith20879 wrote: ↑Sun Feb 12, 2023 8:40 pm
tennisplyr wrote:Doing anything unusual for Valentine's Day?
It happens to be DHs birthday too. I've asked him three time what he wants and each time he said he doesn't know with a poker face. I'm at my wit's end.
New set of knives
Steak subscription
Steakhouse gift card
New grill
Driving gloves
Carhartt gift certificate (ok that’s for you)

Faith20879

McDougal wrote: ↑Mon Feb 13, 2023 10:27 am ... why did you consider orange peel, after the orange had been consumed, to be food, and not trash?

I am not a biologist. My guess is the peel (instead the flesh inside) is actually the organism that might carry whatever harmful things, live or dead, that Dept of Arg. is trying to stop from entering.

Faith20879

tennisplyr wrote:Doing anything unusual for Valentine's Day?

It happens to be DHs birthday too. I've asked him three time what he wants and each time he said he doesn't know with a poker face. I'm at my wit's end.

Faith20879

Doom&Gloom wrote: ↑Mon Feb 06, 2023 7:17 pm
JoMoney wrote: ↑Mon Feb 06, 2023 6:59 pm Over-pay utility bills such that you have a credit that will work itself down throughout the year.
This and/or insurance payments.

This.

Our home/auto/umbrella insurance premiums easily go over 10000 and there is no surcharge for using credit card to pay.

Faith20879

theduke wrote: ↑Wed Feb 01, 2023 2:32 pm
Swansea wrote: ↑Wed Feb 01, 2023 1:32 pm
theduke wrote: ↑Wed Feb 01, 2023 1:20 pm I haven't received my federal annuity tax documents yet, anyone else?
Received mine today.
Thanks, maybe tomorrow then.

Ours came today. Hopefully it is ready for download too.

Faith20879

erishera wrote: ↑Wed Jan 25, 2023 10:55 am ...international stocks will return more than US stocks in the future. ...

LOL, this is almost like predicting a market crash. Of course a market crash IS always coming, but when? Of course the International stocks will have its day in the sun, but is it going to happen during my investment life?

Faith20879

I actually prefer PDF for multiple reasons:

1. I can cut/paste the numbers over to spreadsheets or tax software,
2. The printed statements often come in fonts too small for me. With PDF, I can zoom in to my hearts content.
3. I no longer have to ask myself every year, should i shred or keep.

And, I am not even tech-savvy.

Faith20879

Happy Birthday, Taylor!

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