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xtallographer wrote: ↑Mon Mar 27, 2023 8:29 am Do I need to subtract the 903.44 which was a match from my previous w2 employer?

No. Unlike the employEE deferral, the employER contribution is per plan.

If the OP has an excess due to high income, isn't any excess contribution to an IRA, Roth or regular, not allowed? I'm trying to understand how one would recharacterize it if phased out due to high income..... If he can't do a Roth, why would a regular be allowed? I don't see it. There is an income limit for direct Roth IRA contributions. There can be an income limit for deductible TIRA contributions depending on work retirement plans. But there is no income limit on non-deductible TIRA contributions and no income limit on TIRA conversions to a Roth IRA. So if the OP's income is too high to contribute to a Roth IRA directly, he can recharacterize the Roth IRA contribution to a TIRA, then convert the now non-deductible TIRA contribution to ...

Can the $3,000 of loss be attributed to either spouse as they see fit? Does the use of the loss have to be prorated based on the amount of the total loss carryover of each spouse? Some other method? Here's what I found using Google: Planning with Capital Loss Carryovers How are capital loss carryovers allocated between spouses? Capital loss carryovers are deductible by the taxpayer who sustained the loss. If the property is held jointly, then the loss is allocated between taxpayer and spouse proportionally to their interest in the underlying property. __ It is not always evident to which taxpayer a loss carryover is attributable to. It is important to consider the owner of the property whose sale or disposal generated the loss to make that...

For god knows what reason, a lot of the "Needs Review" sections don't clear out after you go through them. For example, I had a negligible amount of 1099-NEC income (< $1,000). The self-employment income and expenses continues to flag as Needs Review. It appears there is some discrepancy on your Schedule C. Check the schedule information against the 1099-NEC. The one complexity we did have this year was a mixup with our backdoor Roth. We did not contribute to trad until the end of December because of a miscommunication with the spouse. Then in the couple days we were waiting for it to clear so we could recharacterize to Roth had a family crisis. A conversion is not a recharacterization. Don't mix up the terms. Which did you do? D...

I’m about to turn 30 and recently started a new job with a $94k salary and the option of a 401(k) through ADP. My previous employer used Betterment, which I didn’t love, so I rolled all of my investments there into Fidelity. Here’s the current breakdown: ADP: - 401(k): $1.7k, contributing 15% (~$1200/mo), all allocated to MFS Lifetime 2060 Fund - Class R6. For reference, the current breakdown is ~ 64% domestic stocks, 30% international, 5% bonds. What are the other options? We need the fund names, ticker symbols, and especially the plan expense ratios. Costs matter. If you have a decent bond fund this would be the best account for it. Fidelity: - Rollover IRA: $4k (though planning to make max contributions of $6k + $6.5k for 2022/2023 once...

RetiOpening wrote: ↑Thu Mar 23, 2023 6:15 pm

fabis wrote: ↑Thu Mar 23, 2023 6:13 pm Does she still need to follow the new 10 year inhertiance rule?

I’m not familiar with this rule.

That rule applies to inherited IRAs, not taxable assets. And certainly not assets from a foreign country.

I decided to move most of the Federal Money Market $ to a Settlement Federal Money Market to buy a CD, so now I have a Brokerage MM and a Settlement MM in (2 different basket). You could move all the rest of the Brokerage MM (BMM) money into the Settlement MM (sometimes called the Sweep program) and close the BMM for simplicity. Now I want to transfer some of this money to Fidelity. Do I need to walk backwards and put all the settlement fund $ back into mutual (brokerage) fund again? And then have them mail me a check? What's worse, is this is all an IRA. You do not need to move the IRA settlement fund cash back into another IRA mutual fund. Although you are allowed to transfer assets "in kind", it's easier to cash out the IRA mu...

BuckeyeAaron wrote: ↑Thu Mar 23, 2023 1:17 pm His TIRA at Fidelity
0% FSKAX - Fidelity® Total Market Index Fund (0.015%); $0.00 (only used for annual backdoor Roth contributions)

<snip>

Her TIRA at Fidelity
0% FSKAX - Fidelity® Total Market Index Fund (0.015%); $0.00 (only used for annual backdoor Roth contributions)

If these two account are solely used as conduits then I recommend using only a money market or settlement fund in them. That avoids losses and minimizes gains between contributing and converting.

How do I answer this question for my 2022? Tell us which accounts you contributed to in 2022: Check boxes for traditional and roth ira are options. I'm thinking I just check roth IRA here because later it asks me about if I recharacterized any of the roth contribution You contributed $3800 to the Roth IRA and after recharacterizing you contributed $2200 to the TIRA. You'll get there either way but you DID contribute to both. It then asks me about any nondeductible contributions to my traditional IRA and to enter my basis: Is the basis the $2200? is the basis the loss of -$500 since the current value is $1700 that was rolled over? I'm thinking the basis is $2200 but wanted to confirm. The basis is whatever you contributed. Since $2200 was r...

Long story short, filing my 2022 taxes and realized due to some unexpected income that we are just over the threshold to contribute to a roth ira. Do you expect this to happen again? So in 2022, $2,200 of each spouse's 6,000 roth ira contribution was deemed in excess. I was able to recharacterize that portion of the contribution as a traditional IRA contribution. Both accounts lost value in 2022 so the amount that was actually transferred to the traditional IRA by Vanguard's calculations was $1700 (rough loss of $500 from the initial contribution) Are your 2022 taxes on hold? What tax software are you using? Can I still use the backdoor Roth method to get it back into the Roth IRA? Yes. Is the loss on the account going to be a headache to ...

Should I open an SEP IRA now (for 2022). I understand that I have until April 15, 2023 to contribute for 2022 still. Based on my understanding, I will be able to contribute about 20% of my net income from the 1099. Will this have any negative consequences on the activities I did in connection with my W2 above? You will be contributing as the employER and there would be no issues with your W-2 contributions. If SEP IRA counts as a traditional IRA, my understanding is that roth ira back door conversion in the future will have to take into account the pro rata rule. However, for 2022 it will have no effect because the calculation is based on the IRA balance on 12/31/22, so since I am contributing to the SEP IRA now, it will not affect by Roth...

4three , welcome to the forum. In my 457 DCP, I’ve been investing 100% into Fidelity 500 Index Fund (FXAIX), which has a nice low expense ratio of 0.015%. But from what I’ve gleaned from this thread about improving the tax efficiency of my investments, I should probably switch my future investments in my 457 to 100% Fidelity U.S. Bond Index Fund (FXNAX), right? Maybe. You might want to switch both your future contributions AND switch some of your current allocation from FXIAX to FXNAX. It depends on what your desired bond allocation is and how much room you have in the 457b. But does the fact that I have a pension mean that I don’t really need bonds in my retirement portfolio? Does the pension basically serve as my fixed income investments...

I talked to my 403b provider and they said I was ok with the 402(g) limit since $3,065.87 was a required employee contribution. I was not aware that did not count towards the limit. Right, the employEE limit covers elective deferrals, not mandatory deferrals. A required 401a pension-type contribution is not the same as an optional 401k/403b contribution. Okay, that $3065.87 required employee contribution takes care of what looked like a $344 employEE over-contribution. Good. And, that added to the $31,116 gets you up to $34,181 of space for your solo 401k employER contribution. But it's likely your $174,923 net income minus one-half of your self-employment taxes times 20% won't be under that $34,181, so you'll probably still have to remove...

John Scalzi has already been mentioned but the first book of his I read got me to read everything else. Agent to the Stars is about an entertainment agent in Los Angeles who is ordered by his boss to figure out how to introduce aliens secretly orbiting earth to the human race. The problem is that the aliens look like blocks of jello and smell like rancid farts. That book introduced me to Scalzi's warped sense of humor.

Maybe I need to call Fidelity for a 3rd time and ask them about the code 1 vs. 2. I wouldn't call again. Below it looks like you'll be fine. Form 5329-T is there in TurboTax, but the only thing that is filled out is this: https://www.kerplunk.net/5329.png I was concerned with Part I: "Complete this part if you took a taxable distribution (other than a qualified disaster distribution) before you reached age 59 1/2 from a qualified retirement plan (including an IRA)" Since nothing appears in Part I it looks like Form 5329 may not even be filed with your return. It gets generated by this question: https://www.kerplunk.net/0.png Maybe I just need to leave that answer blank? No, leave it as "0". That information goes on line...

kerplunk wrote: ↑Sun Mar 19, 2023 11:21 pm Box 2b (Taxable amount not determined) is checked, yes.

Good.

kerplunk wrote: ↑Mon Mar 20, 2023 12:15 pm This is where I am at right now:

2022 Form 8606 in TurboTax

Line 1 -- 6,000
Line 2 -- 6,000
Line 3 -- 12,000
Line 5 -- 12,000
Line 10 -- x
Line 13 -- 12,000 *
Line 14 -- 0
Line 15a -- 0
Line 15c -- 0 *
Line 16 -- 12,000
Line 17 -- 12,000
Line 18 -- 0 *

Is that correct?

It looks right to me.

I don't understand Fidelity. A conversion is an obvious exception and code "2" should be used. I just hope the code "1" in box 7 does not trigger Form 5329 for the 10% penalty. It shouldn't, first because it was a conversion and second because none of the distribution was taxable. But check to make sure that form does not appear in your return.

Does the 401(k) Employee & Employer Contributions limit of $61,000 apply to all of these cumulatively or does each get a $61,000 limit since they are "unrelated employers"? Since they are "unrelated" they each get the $61,000 limit. I was wrong. :oops: It would be right except I forgot about the 403b exception . Unfortunately, because you can't have separate total limits if you have both a 401k and 403b plan, there is just one $61,000 limit across all three of your plans. But the employee deferral limit of $20,500 is spread across all three. Your employEE contributions total $20,844 which is $344 over the $20,500 limit. That needs to be dealt with. This is still accurate. Can I contribute any more employer contribut...

1099-R box 1 -- 12,000.01 box 2a -- 12,000.01 box 7 -- 1 IRA/ SEP/ SIMPLE -- X Something is wrong. This was a conversion so box 7 should be 2 not 1. Is box 2b (Taxable amount not determined) checked? It should be. Confirming, did the money end up in the Roth IRA on your statements? Was this a conversion at the same brokerage, a trustee-to-trustee transfer to another brokerage, or did you receive a check from one brokerage and mail it to the other within 60 days? This is what my 2022 Form 8606 shows currently in TurboTax: Line 1 -- 6,000 Line 2 -- 6,000 Line 3 -- 12,000 Line 5 -- 12,000 Line 10 -- x Line 13 -- 12,000 * Line 14 -- 0 Line 15a -- 0 Line 15c -- 0 * You're missing lines 16 to 18 for the $12,000.01 conversion. It looks like the 1...

One last question, will the 2022 Form 8606 essentially be the same, but with 6000 on line 2? Part I Line 1 -- 6000 (2022 non-deductible contribution) Line 2 -- 6000 (previous basis) Line 3 -- 6000 Line 14 -- 6000 (current basis, goes on line 2 next year) No. Look at the form. Line 3 is the sum of lines 1 and 2 so it will be 12,000. Since you converted in 2022 you will have to fill out the rest of Part I and all of Part II. Line 14 may be 0 or may have some basis, depending. Earlier this year you should have received a 1099-R for the TIRA to Roth IRA conversion. What is in box 1? I'm wondering if you had a gain or loss between the $12,000 contributions and the conversion. Do you have money in any other non-Roth IRAs (Traditional IRA, Rollov...

kodiac wrote: ↑Sun Mar 19, 2023 3:44 pm I have a beneficiary IRA where I can deduct 10K from my NYS tax form. TT is, however, entering a 20K NYS tax exemption, WHile 20K is allowed by NY, I share the IRA so can only take a 10K max deduction.

I found this on a TurboTax discussion board.
And the official IRS information under nominee which looks really complicated.

My first request for confirmation was if "Foreign qualified dividends and l.t. capital gains" (4355) in Fidelity form is the same as "Qualified" in Fidelity form, The Fidelity supplement shows "Qualified" dividends as $4355 and the TurboTax entry shows $4355 for "Foreign qualified dividends and l.t. capital gains". As long as you have no foreign long-term capital gains not mentioned, then $4355 is correct. and secondly if there is something I need to do to carry over the remaining to next year. For 2022 you had $748 foreign taxes paid. You have a credit on your taxes of $250. That means you have a carryover of $498. TurboTax should keep track of this, but you should also, because you might not use Tu...

(The issue is that I would have had to contribute the 2021 contribution before December 31, 2021 in order to do the Backdoor Roth conversion.) You did NOT have to contribute for 2021 in 2021. You had until mid-April 2022. You're fine. I never filed a 2021 IRS Form 8606. You are saying I can, today, file a 2021 IRS Form 8606? How do I do that? You can file the 2021 Form 8606 on paper by itself. Download the form. Print it out. Fill it out. It will be just the name and address section at the top, then lines 1, 2, 3, and 14 in Part I. Sign it and mail it in to the address you would use if NOT sending in money. It will look like this: Part I Line 1 -- 6000 (2021 non-deductible contribution) Line 2 -- 0 (previous basis) Line 3 -- 6000 Line 14 -...

I appreciate the help Duckie! Splitting into two 1099R's worked! I'm glad things worked out. Have you checked to see what appears on Form 1040? Or if that won't work does the online version show your taxes owed increasing or decreasing? I just want to make sure that $35K conversion is not being taxed on your return. Once you pay do you have the opportunity to change things on the return? Any recommendations for tax software? I use TurboTax Deluxe download version and am pleased with it. I'm sure it has some glitches but they haven't affected me and I'm used to the software. Since I have the download version I can use "Forms" mode to see what ends up on each line of the forms which is very valuable when I'm playing "what if&q...

Selling all 800 shares of ABC and not buying them or anything “similar” for 31 days will NOT be a wash sale even though I bought 300 of those 800 shares 14 days ago? I have a pretty good understanding of things but when it comes to the “can’t buy 30 days before the sale” thing just trips me up. In your example you do have a wash sale of 300 shares, but since you have sold all your shares including the replacement shares it is an "irrelevant" wash sale. Your 1099-B may show in box 1g an amount that is disallowed. But if that happens you will still get the entire loss as long as you fill out Form 8949 correctly to report the adjustment (boxes f and g). You will have to attach an explanatory statement. See the instructions for Form ...

sbb01 wrote: ↑Fri Mar 17, 2023 5:47 pm I have now (March 2023) rolled over the IRA to a 401k, so the backdoor Roth should now work well

1) can I contribute to IRA & do a backdoor Roth now for calendar year 2022, or should I not because in 2022 I still had the IRA?

Yes. The fact that you had money in the TIRA 12/31/2022 does not matter because you did not convert in 2022.

2) backdoor Roth for 2023 should be fine for this year, I assume, even if the IRA was rolled over just 1 month ago?

Yes.

I am looking for confirmation that my entries are correct for the 1099-R I am generating. 1. I contributed $20647 into the after- tax sub account in December 2021. Are you self-employed or W-2? 2. Rolled over into a Roth IRA subsequenty. 3. Removed the execss in July 2022 and received a 1099 in January 2023 with $16443.20 in Box 1 (there was a loss of $4204.80) with a code of PJ in Box 7 from the custodian. What excess? Did you contribute to the after-tax account when you didn't have enough income to do so or did you go over the $58,000 limit? 4. But now I need to generate a 1099-R for the excess contribution as the administrator as I understand. If you removed the excess in 2022 and it shows on the 1099-R you received this January, what o...

When I do that I get a page called "Your Posts" but it's really a page of all the threads I've posted in (and sorted by last update, not by when I posted in it). Some are 20 pages long so it still is hard to find my posts. You must have "Topics" checked in your search box. If you want to see just your posts individually go here , at Search for author: type in your user name ( erp ) and down the page at Display results as: click on "Posts". That will show all your separate posts, not the entire topic thread. My search box is always set at "Posts" so when I search using the "Your posts" link it always lists them separately. If you want to find a topic thread you started then go here , at Sear...

retiredjg wrote: ↑Fri Mar 17, 2023 4:56 pm If I'm following this correctly, the problem is not the code G. I think the problem is that the poster is calling this a rollover but it was actually a conversion.

I think the problem is that HRBlock's online software has a glitch. It says (per OP above):

• "Code G indicates a direct transfer; therefore, box 2a should be zero. If there is an entry greater than zero in box 2a, contact your plan administrator. Please verify the code entered."

Since a direct transfer does not necessarily mean non-taxable and since box 2a does not have to be zero using code G, the software is wrong.

I'm not sure that is going to work, but if this were a conversion from a non-deductible TIRA to a Roth IRA, box 7 would have code 2—Early distribution, exception applies (under age 59 1/2). I see. No, this is a direct rollover from an employee sponsored plan to a Vanguard Roth IRA. I know. But since your HRBlock software is having a fit and code G alone does not work and you are thinking of splitting the 1099-R into two parts anyway, the $96.29 is the taxable amount of the rollover/conversion and that should be coded 2 in this case. Code 2 does not mean non-taxable, it just means no penalty for early withdrawal. Try splitting the 1099-R and using code 2 for the $96.29 and see what your software does. I just tried it in TurboTax and entered...

I was issued a single 1099-R. However, to fix tax software flag, I want to try entering two separate 1099-Rs into the tax software, one for the after tax rollover ( $35,519.67, non-taxable) and one for the taxable ($96.29, taxable). Is this an ok way to do this? What do I put in box 7 for the taxable 1099-R #2 entry? 1099-R #1 Box 1 (gross distro.): $35,519.67 Box 2a (taxable amount): $0 Box 5 (employee contributions): $35,519.67 Box 7 (code): G - direct rollover of a distribution to a qualified plan 1099-R #2 Box 1 (gross distro.): $96.29 Box 2a (taxable amount): $96.29 Box 5 (employee contributions): $0 Box 7 (code): ? I'm not sure that is going to work, but if this were a conversion from a non-deductible TIRA to a Roth IRA, box 7 would ...

health_concerns, welcome to the forum.

health_concerns wrote: ↑Thu Mar 16, 2023 3:52 pm If I get laid off tomorrow and don't have any more W2 income in 2023, will I be guilty of overcontributing to my retirement accounts for 2023?

No. You (not including your employer match) have contributed $62,250 into your work retirement plan. As long as your work income is more than that (and it already is) you are covered.

Plus you can even make a $7,000 backdoor Roth IRA contribution if you have no non-Roth IRAs.

If I have other earnings in 2023 (eg, dividends/interest) -- does any of that "count towards" earnings required to funnel $73,500 of my W2 income to retirement?

No. Dividends / interest are not "earned" income and do not qualify for retirement contributions..

I’ve always done my taxes myself, paper in the old days and Turbo Tax for the last decade. If using TurboTax for 2022 you have to be careful to answer the questions in the right way to get the right information on the forms. I have TurboTax Deluxe download version and this is what has to be done in the deduction section: Under IRAs make sure both the TIRA and the Roth IRA boxes are checked. You did NOT make a contribution to a TIRA so make sure that is answered properly and keep going until you get to the Roth IRA section. You made a Roth IRA contribution of let's say $6000. Then it asks how much you switched/recharacterized? If you recharacterized all of it you enter $6000. If you only recharacterized $4500 you enter $4500. This is NOT ho...

In order to recharacterize this through our Roth custodian to a traditional IRA, will we have them recharacterize only the $4,500 excess contribution to the Trad or the full $6,000 for the year? You can do it either way. I personally prefer recharacterizing the full contribution; others differ. The custodian will remove the amount of your 2022 Roth IRA contribution that you request, plus any earnings or minus any losses. And whatever amount it is, we would have to sell enough stock to have that amount in cash ready to recharacterize, correct? I'm not sure about that. The custodian might just retitle certain shares from the Roth IRA to the TIRA, which you will need to open. Ask your custodian what the process is. And then once it settles in...

# GAIOX FUND- expense ratio 0.68, opened 04/22 with 125k and have added another 1k since then, current balance 110k with a loss of -13.08 since current investment. This is not needed money should i sit on it and wait for better days or take my loss and move to another investment. This is a decent fund but it is too expensive. Since you have a loss, sell. # AAETX FUND- expense ratio 0.67 this is a roth ira account, opened 04/22 with 21k and have since then added 10k to this for a total investment of 31k, right now the balance is 29,400 with a loss of -2.01 since opened, same question for this account This fund has 40% bonds/cash. That is a drag in a Roth IRA. Sell. Are you going to stay at Capitol Group or move the money to a different brok...

The following is a list of possible Tax-Loss Harvest (TLH) retail partners with the indexes they follow. You could use this list to compare the various options. US Total Stock VTSAX (VTI) - CRSP US Total Market Index SCHB - Dow Jones US Broad Market Index ITOT - S&P Total Market Index IWV, VTHR, TIEIX, BKTSX - Russell 3000 Index SWTSX, FSKAX - Dow Jones US Total Stock Market Index FZROX * - Fidelity US Total Investable Market Index SPTM - S&P Composite 1500 Index US Large Cap VFIAX (VOO), WFSPX (IVV), SPY, FXAIX, SWPPX - S&P 500 Index VLCAX (VV) - CRSP US Large Cap Index IWB, VONE - Russell 1000 Index SCHX - Dow Jones US Large-Cap Total Stock Market Index SCHK, SNXFX - Schwab 1000 Index FNILX * - Fidelity US Large Cap Index MGC ...

seasaw2 , welcome to the forum. The current fund selection for the 401k has a 0.5% ER. To achieve AA across the acounts, would it make sense to place the least tax efficient, e.g. bonds, into the 401k? The only bond index fund available is FXNAX which is US bonds. Or would it be wiser to go with a mix of the large cap, med cap, small cap and internationals in 401k and use something like VTEB in the taxable for the bond allocation? Your 401k is small relative to the taxable account. I would put just FXNAX in the 401k. Then put VTEB or MUB in the taxable account for the remaining portion of your bond allocation. Where are you planning to move the taxable account? Going DIY means transfering Wealthfront into a different brokerage so I can beg...

Swiss Chard , welcome to the forum. Accidentally rolled over after-tax money into 401K :oops: I needed to zero out my traditional IRA account in order to do a backdoor Roth and rolled over the entire balance into my 401K. Then I found that my T-IRA account included after-tax of $500. I heard “After-tax (nondeductible) funds cannot be rolled over into a 401k.” My nondeductible $500 is already in my 401k account. What should I do? You notify the 401k about the accidental $500 basis rollover and get them to remove it. I don't know how complicated that is for them to fix. And you might have tax-return issues. The easiest thing to do is nothing. You paid taxes on that non-deductible $500 basis. If you quietly leave it in the pre-tax 401k accoun...

radnor wrote: ↑Sun Mar 12, 2023 9:14 pm Well, I haven't seen saving my 401k statements all these years... I'll see which ones are recent enough to recover. I probably won't be able to get the older ones, though, which is unfortunate.

Your employee contributions should also be on your W-2 forms. Box 12 codes show pre-tax elective deferrals as "D" and designated Roth contributions as "AA". I'm not sure how after-tax contributions are coded. Look at your old W-2s and see what code is in Box 12.

In short, I’d like to know how I can properly track my Roth contributions/basis. You track them on a piece of paper or an excel sheet. You verify them with the various forms and statements. 1. For direct Roth IRA contributions, it’s form 5498. Yes, Form 5498 (box 10). You might also need proof you had the earned income, so a W-2 or tax return. 2. For backdoor Roth IRA contributions, I don't know which forms are relevant. Form 8606 for the contribution, Form 5498 (box 3) and possibly Form 1099-R for the conversion, plus possibly the above W-2. If you contributed in one year and converted later, you'd need the W-2 for the contribution year. 3. For direct Roth 401k contributions, I don't know which forms (will be) relevant. Your 401k statemen...

In contribution amounts and chronological order of transactions: 6000 to Roth IRA (2021) *never had a Roth IRA prior to this 1500 to Roth IRA (2022) 7500 recharacterized Roth to Trad (2022) *never had a Trad IRA prior to this So your income was too high in 2021 for a direct Roth IRA contribution? Was the recharacterization of the 2021 contribution reported on your 2021 taxes? It looks like it was not. And if it was not, that means you probably have to amend your 2021 taxes (1040X) to report the non-deductible TIRA contribution and the recharacterization. For Traditional IRA - I figure this is for the 12000 Backdoor It's for the conversion which is the second step of the backdoor method. But calling a conversion a "backdoor" is in...

Since I'm at a loss, I'm assuming it is better to do the excess contribution as opposed to the recharacterization, correct? I would remove the excess for both since you're already doing it for one. Any other tax issues I may be overlooking? If you are going to be using the Backdoor Roth IRA method, you need to make sure you have no other non-Roth IRAs anywhere otherwise you will be subject to the pro-rata rule. Also for 2022 taxes, assuming I remove both as excess contributions and re-contribute to a TIRA I will only have to complete Form 8606 correct? If you withdraw and re-contribute before your tax return due date you will have to file the 2022 Form 8606 only for the non-deductible TIRA contribution. But you may also have to file Form 5...

Languistic01 , welcome to the forum? I contributed to my Roth IRA at the beginning of 2022 and then did again (dumb mistake) in August 2022. Why dumb? Did you go over the $6000 limit for 2022 or is it just that the timing was bad? If over the limit did you contribute to two different Roth IRAs at two different custodians? Because the custodian should have caught that. Perhaps the first contribution is considered a 2021 contribution. Due to a larger than anticipated year-end bonus, I no longer qualify to contribute to a Roth IRA. I computed the earnings/losses for each contribution separately. The first contribution generated a loss while the second contribution had a small gain. So, it sounds like the first contribution was for 2022, was t...

retiredjg wrote: ↑Sat Mar 11, 2023 2:45 pm Next year, you will get a 1099 R for the recharacterization. It will coded as a prior year transaction. I don't know if you have to mention it a second time or not.

When shilps gets the 2023 1099-R next January it needs to be entered into the tax-software. The code in box 7 should show "R—Recharacterized IRA contribution made for 2022 and recharacterized in 2023." The information will not appear on the 2023 return but the IRS will get the data from the software and will eventually match it with other data received. Not entering it in the software could mean a CP2000 arriving in a couple years because there would be no match.

Just so I understand, it looks like in 2021 you contributed to a Roth IRA directly and your income was too high, so in 2022 you recharacterized that Roth IRA contribution to a non-deductible TIRA contribution and then converted the TIRA back to your Roth IRA. Is that correct? Assuming the above is correct, you enter the 1099-Rs in the Income section and in the Deductions section you report the conversion which will trigger Form 8606. Did you recharacterize before you filed your 2021 taxes so they included Form 8606 for the non-deductible contribution? That basis will need to go on your 2022 Form 8606. The Roth IRA 1099-R is because you recharacterized which means you took a distribution, moving money from the Roth IRA to the TIRA. It proba...

whyme wrote: ↑Fri Mar 10, 2023 4:43 pm So I'll make estimated payments in the quarter when I receive the income.

Just be aware that the "quarter" for estimated payments is not always three months:

• 1st quarter -- January thru March -- 3 months
  2nd quarter -- April thru May -- 2 months
  3rd quarter -- June thru August -- 3 months
  4th quarter -- September thru December -- 4 months

imsomeguy wrote: ↑Thu Mar 09, 2023 8:49 pm Should I keep that money in old 401k plan? And if so do you think I should reallocate existing funds?
Or should I move the money to my new 401k plan?

I would roll the old 401k assets into the new 401k to consolidate.

What do you think of the investment choices in new plan? Any comments on which funds to choose?

The new 401k plan has some decent index funds. The best options are:

• Legal & General S&P 500 Index (0.01%) -- Large caps, roughly 80% of US stocks
• State Street International Index (0.09%) -- Developed markets, roughly 75% of international stocks
• State Street US Bond Index (0.02%) -- US bonds

retiredjg wrote: ↑Mon Mar 06, 2023 5:24 pm The withdrawal will be entered on line 4a of your 1040 but line 4b (the taxable amount) will be blank. I do not think TT will generate an 8606 for this.

It won't. The instructions for Form 8606 Line 19 on page 8 include:

• "Don’t include on line 19 any of the following.
  <snip>
  Distributions made on or after age 59 1/2 if you made a contribution (including a conversion or a rollover from a qualified retirement plan) for any year from 1998 through 2017."

The OP has had a Roth IRA since 2012 and is over age 59.5 so will not have to fill out Form 8606 Part III for qualified withdrawals.

hoofaman wrote: ↑Sun Mar 05, 2023 2:21 pm This all seems correct to me, but if there is anything that comes to mind that might be missing that I should double check please let me know.

It is correct for the information you have mentioned. However, we don't know what else is going on.

After you entered the 1099-R data in the income section did you go to the deduction section and answer all those questions, too? I would hope that you carefully read Form 8606, especially line 6, and that you have no other non-Roth IRAs of any kind (Traditional IRA, Rollover IRA, SEP IRA, SIMPLE IRA). The pro-rata rule can really mess up the backdoor Roth IRA process and a lot of people screw this up.

For simplicity, I may drop the US midcap stock allocation. Any significant reasons to not do this? No. If you drop Extended Market the two 500 Index funds (her 500 Index and Equity Index) will have similar results to the Total Market funds. For international stock allocation, it looks like I can use VFWAX - Vanguard FTSE All-World ex-US Index Fund Admiral Shares (0.11%) that is available in my wife's current 401k at Empower or we could use BR EAFE EQUITY IDX R; ER 0.05% available in my wife's old 401k account held at Fidelity (there is enough value in both of these accounts to cover the entire international allocation percentage in one fund/place). Is the VFWAX worth the higher ER? VFWAX is almost complete international stocks. It's missin...

TRock wrote: ↑Fri Mar 03, 2023 3:19 pm Ok, just learned that my cost basis is $52,000 and the market value is $54,000.

Great, only $2,000 in gains that might be taxed. Sell now. And since it is a gain you don't have to worry about a wash sale. In taxable you can buy VTSAX and in your IRA you can swap VTSAX for the international fund (VTIAX?) without waiting.