Search found 4446 matches

by kaneohe
Sun Oct 15, 2017 11:01 am
Forum: Personal Finance (Not Investing)
Topic: 2016 tax help before deadline!!! 401k excess
Replies: 21
Views: 929

Re: 2016 tax help before deadline!!! 401k excess

Interesting to see that same $26 difference show up so somehow TA is treating the 1099R as effectively more income than the W2. Might be useful to compare the 1040s line by line for the 2 cases......AGI, deductions, taxable inc, credits, taxes, etc..........might give a clue. Also the 1099R .......w...
by kaneohe
Sun Oct 15, 2017 9:58 am
Forum: Personal Finance (Not Investing)
Topic: 2016 tax help before deadline!!! 401k excess
Replies: 21
Views: 929

Re: 2016 tax help before deadline!!! 401k excess

how about doing your what if again........leave the 1099R info in the return; then reduce your wages by that 1636+ and see if the same thing happens...and check the 1040 esp p. 2 for any differences
by kaneohe
Sun Oct 15, 2017 9:13 am
Forum: Personal Finance (Not Investing)
Topic: 2016 tax help before deadline!!! 401k excess
Replies: 21
Views: 929

Re: 2016 tax help before deadline!!! 401k excess

try posting in retirement forum at fairmark.com if you don't get response here. https://www.irs.gov/retirement-plans/fixing-common-plan-mistakes-excess-deferrals you're supposed to get excess contribution & earnings returned to you. you calculated 28% on 1636..........is that excess contribution or ...
by kaneohe
Sat Oct 14, 2017 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: HELP! 2016 taxes down to the wire: form 1116 help
Replies: 25
Views: 1117

Re: HELP! 2016 taxes down to the wire: form 1116 help

[....................................... I’m using itemized deductions. If filling out 1116 was easy I’d do it but quite frankly I don’t understand it. Why would my credit be smaller (potentially) if my foreign tax paid exceeds 300? What is the percentage for the interest penalty, if applied? going...
by kaneohe
Sat Oct 14, 2017 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: HELP! 2016 taxes down to the wire: form 1116 help
Replies: 25
Views: 1117

Re: HELP! 2016 taxes down to the wire: form 1116 help

You can either do what some have suggested, and take the $300 credit by reducing the amount of foreign tax paid reported on you 1099-B. . It's not really kosher, but you could do it. Or, you can try filling out the worksheets. Or, you can do what I suggested earlier: leave the credit off and later ...
by kaneohe
Fri Oct 13, 2017 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Tax issue: Made a mistake on Inherited IRA RMDs for five years
Replies: 38
Views: 3048

Re: Tax issue: Made a mistake on Inherited IRA RMDs for five years

I made this exact same mistake for 8 years and underpaid by $130 over that time period. After discovering the mistake I began using the correct factor from then on without going back an making any adjustment or corrections. Your error is so small I wouldn't worry about it. Just do it correctly goin...
by kaneohe
Fri Oct 13, 2017 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Tax issue: Made a mistake on Inherited IRA RMDs for five years
Replies: 38
Views: 3048

Re: Tax issue: Made a mistake on Inherited IRA RMDs for five years

Plus, the bright side of RMDs is that they can be used as estimated payments that were paid through the year even though you may take them as late as Dec 31. You can withhold 100% of the RMD as a tax payment and the IRS considers it like quarterly payments. Sometimes, I personally think this abilit...
by kaneohe
Fri Oct 13, 2017 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Advantage vs. Supplemental
Replies: 58
Views: 4205

Re: Medicare Advantage vs. Supplemental

One option to consider: since this is all new to you and you're still learning, consider making your initial choice something that you can wiggle out of easily if you change your mind. My impression is that you can change from the supplement to an advantage plan later . Going the other way is more c...
by kaneohe
Fri Oct 13, 2017 9:13 am
Forum: Investing - Theory, News & General
Topic: IRMAA, MAGI and ROTH Conversion
Replies: 4
Views: 444

Re: IRMAA, MAGI and ROTH Conversion

Tax exempt bond funds won't be exactly predictable or the same as last yr but they should be reasonably predictable esp. late in the yr. and fairly close to previous yr. They typically won't give off large surprise last minute LTCG like some actively managed stock funds do. Mine have monthly distrib...
by kaneohe
Thu Oct 12, 2017 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: pay taxes from long term gains on a taxable account
Replies: 18
Views: 1460

Re: pay taxes from long term gains on a taxable account

........................................................... I don't believe my withholdings would be within 90% but I am fairly certain by withholding this year is greater than my total tax last year! Too be safe, I guess I could have my company withhold additional taxes for the reminder of this ye...
by kaneohe
Wed Oct 11, 2017 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Tax issue: Made a mistake on Inherited IRA RMDs for five years
Replies: 38
Views: 3048

Re: Tax issue: Made a mistake on Inherited IRA RMDs for five years

Here are instructions about pleading for mercy from F5329 instructions: Using the wrong table sounds like reasonable error and taking additional distributions now (to be taxed this yr) to compensate for the shortfall seems like a reasonable compensatory action so it seems likely that your waiver wou...
by kaneohe
Mon Oct 09, 2017 11:49 pm
Forum: Investing - Help with Personal Investments
Topic: Does Anyone Here Buy Callable Munis?
Replies: 6
Views: 588

Re: Does Anyone Here Buy Callable Munis?

Are you looking at the actual yields or the coupon rate? The ones I'm familiar with always are callable....typically at 10 yrs and their YTM (maturity) is typically similar to the YTC (call) (on average; individual YTC can range from 0.3% lower to 0.3% higher than YTM with typical yield around 3%.)
by kaneohe
Mon Oct 09, 2017 11:18 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Question
Replies: 6
Views: 794

Re: Backdoor Roth Question

............................... -I don't actually know how to do this. People say it's not hard, but given that I need to both convert and do a backdoor for her, I'm a little confused and now it's October. ................................. maybe the solution is to stop thinking about it and actuall...
by kaneohe
Mon Oct 09, 2017 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare High Earner Premium
Replies: 15
Views: 2415

Re: Medicare High Earner Premium

I would love a definitive answer on this. I had thought it was based on your 1040 2 years back. And if you had an outlier large income one year that raised your Medicare premiums that it would adjust back the next year based on your 1040. But in a discussion on another forum I read you have to appe...
by kaneohe
Sun Oct 08, 2017 11:08 pm
Forum: Personal Finance (Not Investing)
Topic: Tax basis after death of spouse
Replies: 7
Views: 1002

Re: Tax basis after death of spouse

In CA, a community property state, capital assets held in a jt. revocable trust have a 100% basis step up upon the first death. I don't know how the different states (trust creation/current domicile) affect things but it is interesting that they are both community property states so it seems possibl...
by kaneohe
Sun Oct 08, 2017 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to pay estimated taxes on a K-1 from an estate?
Replies: 3
Views: 565

Re: Do I need to pay estimated taxes on a K-1 from an estate?

Possibly because of lower wages this yr., you may not meet the safe harbor of 100%(110%) of last yrs taxes. Perhaps the other safe harbor of 90% of
this yrs taxes may apply but you will have to do a simulated tax return to see.
by kaneohe
Sun Oct 08, 2017 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA
Replies: 9
Views: 1133

Re: Backdoor Roth IRA

There is no income limit for contributing to TIRA and no income limit for doing Roth conversion so no violations. However you should be aware of tax issues if you have other deductible contributions in this TIRA or any other TIRA accounts. https://www.bogleheads.org/wiki/Backdoor_Roth_IRA
by kaneohe
Sat Oct 07, 2017 12:53 am
Forum: Personal Consumer Issues
Topic: Medigap Policies--So Much Conflicting Information
Replies: 29
Views: 2398

Re: Medigap Policies--So Much Conflicting Information

FWIW, I moved from PA to FL and my medigap policy was good in both states. I also was able to switch from one medigap plan insurer to another lower-cost one without any problems or underwriting. from the link above: ..I'm moving out of state. You can keep your current Medigap policy regardless of w...
by kaneohe
Fri Oct 06, 2017 5:47 pm
Forum: Personal Consumer Issues
Topic: Medigap Policies--So Much Conflicting Information
Replies: 29
Views: 2398

Re: Medigap Policies--So Much Conflicting Information

https://www.medicare.gov/supplement-other-insurance/when-can-i-buy-medigap/switching-plans/switch-medigap-.html This link says that there is no Federal right to change medigap plans except under a few specific conditions. Certain states may give you additional rights.....e.g. CA has a birthday rule...
by kaneohe
Fri Oct 06, 2017 8:38 am
Forum: Investing - Help with Personal Investments
Topic: Dumb question -LTCG like marginal or step function & bonus question
Replies: 8
Views: 500

Re: Dumb question -LTCG like marginal or step function & bonus question

https://www.bogleheads.org/forum/viewtopic.php?t=86849 see the stacked bar chart by tfb on the 12/11/11 post for a graphical way of thinking about this .......... and then post the answer to your question. Thanks. First I looked at the 12/10/11 graphical representation, which didn't tell me a thing...
by kaneohe
Fri Oct 06, 2017 8:04 am
Forum: Investing - Help with Personal Investments
Topic: Company Stock Investment sale / Capital Loss carryover
Replies: 12
Views: 626

Re: Company Stock Investment sale / Capital Loss carryover

My experience is that if these are NQSO (NSO) and you did a cashless exercise (exercise & sell immediately),then your "gain" (difference between sale price and exercise price = the bargain element) is not capital gains but ordinary income which shows up in your W2 increasing your wages. There may be...
by kaneohe
Thu Oct 05, 2017 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Dumb question -LTCG like marginal or step function & bonus question
Replies: 8
Views: 500

Re: Dumb question -LTCG like marginal or step function & bonus question

viewtopic.php?t=86849

see the stacked bar chart by tfb on the 12/11/11 post for a graphical way of thinking about this ..........
and then post the answer to your question.
by kaneohe
Wed Oct 04, 2017 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: RMD Question
Replies: 30
Views: 2874

Re: RMD Question

and another https://www.irahelp.com/forum-post/2477 ... -age-70-12

The Alan there is the same Alan S. here:
by kaneohe
Tue Oct 03, 2017 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: Investing [in soon-to-be-maturing EE bonds]
Replies: 5
Views: 355

Re: Investing

EE bonds reach full maturity on the 1st day of the month 30 yrs after issue. The Nov 1988 bond will mature on Nov 1, 2018. You can use this calculator https://www.treasurydirect.gov/BC/SBCPrice to demonstrate that a bond issued in Sept 1987 has the same value as one issued in Oct 1987...........whic...
by kaneohe
Sun Oct 01, 2017 10:22 am
Forum: Investing - Help with Personal Investments
Topic: IRA contribution issue
Replies: 6
Views: 355

Re: IRA contribution issue

Can't you recharacterize the part that doesn't belong..........if you contributed to TIRA orginally, that part goes to Roth (and the opposite if you contributed to Roth). Then it's as if you contributed the correct amounts in the right places in the beginning. No backdoors necessary............
by kaneohe
Fri Sep 29, 2017 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Q - Form 8949 - Broker Refunded Commission Months After Stock Sale
Replies: 6
Views: 457

Re: Tax Q - Form 8949 - Broker Refunded Commission Months After Stock Sale

..................................................................... I think I'll just go ahead and report higher proceeds than the 1099-B shows in column (d) of form 8949. This will result in slightly increasing my tax bill vs just reporting what the 1099-B shows, but I think is more true to real...
by kaneohe
Fri Sep 29, 2017 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Tax Q - Form 8949 - Broker Refunded Commission Months After Stock Sale
Replies: 6
Views: 457

Re: Tax Q - Form 8949 - Broker Refunded Commission Months After Stock Sale

You might also want to check the basis on that transaction and the gain on that 1099B vs the correct gain. The gain is the real goal. Perhaps the broker gain is also correct but they adjusted the cost basis to make it so.......or maybe they just made an error.
by kaneohe
Fri Sep 29, 2017 12:04 am
Forum: Personal Finance (Not Investing)
Topic: Tax Q - Form 8949 - Broker Refunded Commission Months After Stock Sale
Replies: 6
Views: 457

Re: Tax Q - Form 8949 - Broker Refunded Commission Months After Stock Sale

See F8949 and the instructions https://www.irs.gov/pub/irs-pdf/i8949.pdf for col. F on p.9. If you get a 1099B that is incorrect, that page tells how to input an adjustment to correct for that error. You'll have to be careful with the sign (+ or -) of the adjustment to get the proper correction. I t...
by kaneohe
Wed Sep 27, 2017 11:06 am
Forum: Personal Finance (Not Investing)
Topic: HSA distribution exceeds contribution limit
Replies: 13
Views: 615

Re: HSA distribution exceeds contribution limit

You ca't contribute more than the max allowed. You can take out until you reduce balance to 0. If contribution limit is 6.75K and bill is 16.75K and HSA balance is 6.75K you can use that 6.75K balance to pay part of the bill. If you contributed an extra 10K to HSA, depending on HSA custodian softwar...
by kaneohe
Mon Sep 25, 2017 8:04 am
Forum: Personal Finance (Not Investing)
Topic: pre-tax money in a nondeductible IRA
Replies: 24
Views: 1569

Re: pre-tax money in a nondeductible IRA

Thanks very much for the explanation. I'll have to decide whether it is worth it. ............................................................. Even taking $5000 of basis and putting it into a separate account and combining the rest doesn't do much, unless you don't invest the $5000 in anything whi...
by kaneohe
Mon Sep 25, 2017 7:41 am
Forum: Investing - Theory, News & General
Topic: Selling Taxable to Top of Bracket: What does it mean?
Replies: 33
Views: 3860

Re: Selling Taxable to Top of Bracket: What does it mean?

I find it helps to calculate your real brackets first. Subtract your standard deduction and personal exemptions from each bracket you see in the table. The bottom bracket for a single person with no dependents is 0% for income up to just over $10k. Then 10% for the amount from just over $10k to jus...
by kaneohe
Sun Sep 24, 2017 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: pre-tax money in a nondeductible IRA
Replies: 24
Views: 1569

Re: pre-tax money in a nondeductible IRA

flight - I hope I am understanding the issue you've raised and don't want to hijack your thread. But here is my question: I have just two IRAs. One is a rollover from an employer's 401(k); all contributions were made with pre-tax earnings. The other is a non-deductible IRA; the only contribution wa...
by kaneohe
Sun Sep 24, 2017 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: pre-tax money in a nondeductible IRA
Replies: 24
Views: 1569

Re: pre-tax money in a nondeductible IRA

flight - I hope I am understanding the issue you've raised and don't want to hijack your thread. But here is my question: I have just two IRAs. One is a rollover from an employer's 401(k); all contributions were made with pre-tax earnings. The other is a non-deductible IRA; the only contribution wa...
by kaneohe
Sat Sep 23, 2017 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: pre-tax money in a nondeductible IRA
Replies: 24
Views: 1569

Re: pre-tax money in a nondeductible IRA

@Alan - that's correct. But I was wondering if instead of rolling the pre-tax money to a qualified plan, it could be transferred trustee to trustee to another TIRA account at a different brokerage. Then the entire pre-tax TIRA could be rolled into the qualified plan. ..................................
by kaneohe
Sat Sep 23, 2017 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: pre-tax money in a nondeductible IRA
Replies: 24
Views: 1569

Re: pre-tax money in a nondeductible IRA

if the pro-rata rule is also suspended for the first TIRA to TIRA transaction because you are doing the move to qualified plan the same yr and TIRA2 is considered just an intermediate stop along the way. The pro-rata rule deals with assets in non-Roth IRAs as of December 31st the year of the conver...
by kaneohe
Sat Sep 23, 2017 10:45 am
Forum: Personal Finance (Not Investing)
Topic: pre-tax money in a nondeductible IRA
Replies: 24
Views: 1569

Re: pre-tax money in a nondeductible IRA

I don't know the answer to your question.......but it is an interesting one. Hopefully this reply will bump this up and catch Alan's eye again. Normally discussion about the backdoor Roth talks about moving the taxable amount in TIRA to a qualified plan first. Then the remaining TIRA is converted to...
by kaneohe
Sat Sep 23, 2017 8:57 am
Forum: Investing - Help with Personal Investments
Topic: Question re passive income
Replies: 5
Views: 689

Re: Question re passive income

Generally, yes. Both of your rentals would be considered passive activities. Under section 469, Income and losses from passive activities are aggregated, so net losses from the "home" rental could offset net income from the other rental. Mule Agree w/ Mule. Check out F8582 https://www.irs.gov/pub/i...
by kaneohe
Sat Sep 23, 2017 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion conundrum
Replies: 5
Views: 633

Re: Roth conversion conundrum

........................................................ is there anything to be gained by doing larger conversions into the 25% bracket now and before drawing social security? seems like one of these questions that depends on what happens...........ages,yrs to SS, bracket when receiving SS, bracke...
by kaneohe
Sat Sep 23, 2017 7:42 am
Forum: Investing - Help with Personal Investments
Topic: Question re passive income
Replies: 5
Views: 689

Re: Question re passive income

Don't business expenses include the personal deductions (mortgage interest/property tax) for the home and more?
by kaneohe
Thu Sep 21, 2017 8:49 am
Forum: Personal Finance (Not Investing)
Topic: RMD Dates
Replies: 9
Views: 848

Re: RMD Dates

Non-CPA here. I am a month older than you. Your plan is consistent with my understanding of the RMD requirements. I also asked my CPA if my RMD would trigger the AMT...a point to consider. I only got into AMT once, due to a real estate transaction. So my question: what is the simplest way to know w...
by kaneohe
Thu Sep 21, 2017 8:38 am
Forum: Personal Finance (Not Investing)
Topic: RMD Dates
Replies: 9
Views: 848

Re: RMD Dates

In order to minimize the tax bite, I'll take a distribution in Dec of 2018 and each calendar year thereafter. Am I missing anything? Don't want to get this wrong !! That is only true if your marginal tax rate will be higher and/or it will affect other things such as your IRMAA tier. In many cases e...
by kaneohe
Wed Sep 20, 2017 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion now (age 68) or RMD?
Replies: 29
Views: 1917

Re: IRA to Roth conversion now (age 68) or RMD?

Agree w/Peter Foley that after 59.5 y.o. and first Roth > 5 yrs old,OP doesn't have to worry about 5 yr rule on conversions. Even if Roth were not 5 yrs old , the ordering rules of contributions first, then conversions imply that unless OP withdraws everything at once, there likely will be no taxes/...
by kaneohe
Sun Sep 17, 2017 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Clarification on a TIRA
Replies: 3
Views: 367

Re: Clarification on a TIRA

You can only contribute 6.5K annually to TIRA. If you withdraw funds, you will be taxed on withdrawal only, no penalty. Even if you could add more top it up to 6.5K, what have you accomplished. Taken money out , replaced it, got a tax bill but same amount of funds in TIRA. Isn't it better to leave i...
by kaneohe
Fri Sep 15, 2017 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Supplemental - BCBS vs United Healthcare
Replies: 6
Views: 665

Re: Medicare Supplemental - BCBS vs United Healthcare

Here is some info for UHC (prob. not in your community) : (note this is for plan F, not G) $135/mo to $187/mo, an increase of 38.5% or about 6.7%/yr. Of this increase 3% /yr is the decrease in the AARP UHC discount . I believe they gave an 18% initial "discount" which disappears at the 3% rate/yr so...
by kaneohe
Fri Sep 15, 2017 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional IRA Deductions
Replies: 4
Views: 225

Re: Traditional IRA Deductions

You have 2 TIRAs that are in play here......yours and spouse. Different rules for each of you. Use your rule for your IRA and his rule for his.
by kaneohe
Fri Sep 15, 2017 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: How can I be more savy about taxes?
Replies: 15
Views: 1869

Re: How can I be more savy about taxes?

https://www.amazon.com/Taxes-Dummies-Eric-Tyson/dp/0764552066/ref=sr_1_1?ie=UTF8&qid=1505505483&sr=8-1&keywords=taxes+for+dummies You might be able to find this in local library. Generally reading gives you a general picture of things but if you really want to see how things work, there is nothing ...
by kaneohe
Fri Sep 15, 2017 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA/RMD question
Replies: 6
Views: 532

Re: Inherited IRA/RMD question

Do you have a fixed expense you need to pay with those funds........like a car, a house,etc? Then you need to have $$$ in hand and not take much risk. But it sounds like you are just reinvesting the funds. If you go to no risk like cash, and the market goes down, you win; if it goes up , you lose. I...
by kaneohe
Fri Sep 15, 2017 8:12 am
Forum: Investing - Help with Personal Investments
Topic: Rollover IRA / Non Deductable IRA
Replies: 31
Views: 1257

Re: Rollover IRA / Non Deductable IRA

....................................................................... My only issue now is that if i leave things the way they are i will need to file an 8606 every year i withdraw money from my tIRA in 20 years or risk paying tax twice on the 3K added from the recharacterization? Is that accurat...