Search found 4584 matches

by kaneohe
Wed Jan 03, 2018 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2094

Re: Roth IRA 5 year rule

Given that, will I be taxed on earnings from post-2013 conversions if I withdraw them in 2018? No. The first question to ask is "Is the withdrawal qualified?" Since you are over 59.5 and your first Roth was opened more than five years ago the answer is yes. Qualified withdrawals are tax and penalty...
by kaneohe
Wed Jan 03, 2018 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2094

Re: Roth IRA 5 year rule

@kaneohe: Thanks for kawill's table frome fairmark.com From the article again: "Unlike the 5-year rule for contributions, in the case of conversions, each conversion amount has its own 5-year time period (Treasury Regulation 1.408A-6, Q&A-5(c)), and thus with multiple conversions there may be multi...
by kaneohe
Wed Jan 03, 2018 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2094

Re: Roth IRA 5 year rule

@MarkNYC: Thank you. So my 30December 2013 conversion is indeed counted as 01January 2013? It doesn't have to been made before 15April? Any time in 2013 is good? From the posted article, it sounds like I can only withdraw tax-free from that first conversion. Subsequent conversions each have their o...
by kaneohe
Tue Jan 02, 2018 3:22 am
Forum: Personal Finance (Not Investing)
Topic: First Time Consulting - how to pay self employment taxes
Replies: 4
Views: 576

Re: First Time Consulting - how to pay self employment taxes

Although your focus seems to be on SE taxes, now that you are retired you should be concerned about the total picture which includes your regular taxes on all your income (including your net SE income which is your gross SE income less expenses) as well as the SE taxes. You can use a tax calculator ...
by kaneohe
Mon Jan 01, 2018 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs
Replies: 43
Views: 3687

Re: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs

Thanks Chip and Kaneohe. With nothing very much to do on a New Year's day, I found the IRS table for employers - glad I'm not an employer. Page 45 of Pub 15 has the method one can use to calculate with holdings.This can be based on the period of payment (e.g. monthly, annually). Then based on one's...
by kaneohe
Mon Jan 01, 2018 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs
Replies: 43
Views: 3687

Re: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs

For those who fill in W4's for pensions, how do you calculate the amount to be withheld? I know it will change in 2018. The problem I have with both my pension(s) and the RMD taken last year is that the corporation assumed that that was my only taxable income (I think). So for example, my one pensi...
by kaneohe
Mon Jan 01, 2018 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs
Replies: 43
Views: 3687

Re: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs

Each year when I file my taxes in April, I know what I paid in taxes, so since things don't change much and my taxes, before the new law, were low, I just make one estimated tax payment for the next whole year then. Next year I will probably do the same, since although my taxes will increase they w...
by kaneohe
Mon Jan 01, 2018 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs
Replies: 43
Views: 3687

Re: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs

For those who fill in W4's for pensions, how do you calculate the amount to be withheld? I know it will change in 2018. The problem I have with both my pension(s) and the RMD taken last year is that the corporation assumed that that was my only taxable income (I think). So for example, my one pensi...
by kaneohe
Mon Jan 01, 2018 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs
Replies: 43
Views: 3687

Re: Retirees: No earned income, how do you pay tax for pensions, SS and RMDs

For those who fill in W4's for pensions, how do you calculate the amount to be withheld? I know it will change in 2018. The problem I have with both my pension(s) and the RMD taken last year is that the corporation assumed that that was my only taxable income (I think). So for example, my one pensi...
by kaneohe
Mon Jan 01, 2018 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Paying estimated quarterly taxes, what is the process?
Replies: 10
Views: 1143

Re: Paying estimated quarterly taxes, what is the process?

.............................................................. I am in the 25 % federal tax bracket. Would it be as simple as just multiplying 5,000 by 15 % and sending that to the IRS, as well as my state tax collector (at my state rate). .............................. Is there a reason for the di...
by kaneohe
Mon Jan 01, 2018 9:40 am
Forum: Personal Finance (Not Investing)
Topic: Paying estimated quarterly taxes, what is the process?
Replies: 10
Views: 1143

Re: Paying estimated quarterly taxes, what is the process?

.............................................................. I am in the 25 % federal tax bracket. Would it be as simple as just multiplying 5,000 by 15 % and sending that to the IRS, as well as my state tax collector (at my state rate). .............................. Is there a reason for the di...
by kaneohe
Fri Dec 29, 2017 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 31686

Re: Ally Bank 11 month [No-Penalty CD]

If you willing/able to tolerate the wait times on phone, I believe that the rep can make the transfer from old to new CD directly. I didn't notice any activity in savings account due to the switch. I don't think this is accurate. When I recently closed an existing No-Penalty CD on the phone and ope...
by kaneohe
Fri Dec 29, 2017 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Reinvest RMD from Inherited IRA into Roth IRA
Replies: 6
Views: 550

Re: Reinvest RMD from Inherited IRA into Roth IRA

I've got $160k in an Inherited IRA which I received as a non-spouse beneficiary. I've just taken the first RMD of $3600 using Vanguard's RMD service. At the moment, it's sitting in a non-retirement brokerage account, also Vanguard. I want to confirm a few things that are not quite clear to me: Can ...
by kaneohe
Fri Dec 29, 2017 9:31 am
Forum: Investing - Help with Personal Investments
Topic: IRA question
Replies: 3
Views: 265

Re: IRA question

Be sure to document your non-deductible contribution to TIRA on F8606. Apparently doing this w/ tax software can be tricky for some so be aware of what it should look like. Some advocate doing it on paper first to learn.
by kaneohe
Fri Dec 29, 2017 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 31686

Re: Ally Bank 11 month [No-Penalty CD]

Anyone know if there is a way to directly convert these to the higher rate (prior to maturity) without round tripping them through another account? ..................... If you willing/able to tolerate the wait times on phone, I believe that the rep can make the transfer from old to new CD directly...
by kaneohe
Thu Dec 28, 2017 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: How does the refundable part of the Child Tax Credit work for 2018?
Replies: 4
Views: 609

Re: How does the refundable part of the Child Tax Credit work for 2018?

https://www.forbes.com/sites/kellyphillipserb/2017/12/21/how-will-the-expanded-child-tax-credit-look-after-tax-reform/#7cc82a724205 Hopefully this will help. Sounds like the "up to $1400" is because it could be less if income is lower. I would think if your income is high enough, you would have the...
by kaneohe
Thu Dec 28, 2017 10:13 am
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 75
Views: 11628

Re: Muni Money Market funds starting to look good!

Thanks for pointing this out. Since money mkt funds are more for liquid funds, wouldn't the distribution yld be a more realistic/conservative guess as to what you would earn over the near term? As far as I understand it the distribution yield is backward looking - it is what you would have been pai...
by kaneohe
Thu Dec 28, 2017 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Can someone explain how AMT works?
Replies: 12
Views: 1965

Re: Can someone explain how AMT works?

.......................................... Typically it applies to households with income between $200k and $500k who have a lot of deductions, such as high state income tax. You can also have AMT even if you don't have (or take) those deductions if you have a significant components of QDIV/LTCG an...
by kaneohe
Thu Dec 28, 2017 9:40 am
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 75
Views: 11628

Re: Muni Money Market funds starting to look good!

One thing to note is that these are the SEC yields, not the actual distribution yields which have been much lower. For example, VCTXX has an SEC yield of 1.14%, but the distribution yield was 0.76% in November. Not sure what conclusion to draw from this. The distribution yields have been going up g...
by kaneohe
Sat Dec 23, 2017 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: HDHP and Miscellaneous Tax Deduction
Replies: 9
Views: 660

Re: HDHP and Miscellaneous Tax Deduction

You might be able(or not) be able to deduct as a medical expense, along w/ other medical expenses like insurance premiums subject to the 10% of AGI floor. You can use these expenses for a possible tax deduction or reimburse from HSA (not insurance premiums) but you cannot use them for both. I thoug...
by kaneohe
Sat Dec 23, 2017 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: HDHP and Miscellaneous Tax Deduction
Replies: 9
Views: 660

Re: HDHP and Miscellaneous Tax Deduction

You might be able(or not) be able to deduct as a medical expense, along w/ other medical expenses like insurance premiums subject to the 10% of AGI floor. You can use these expenses for a possible tax deduction or reimburse from HSA (not insurance premiums) but you cannot use them for both.
by kaneohe
Sat Dec 23, 2017 2:29 pm
Forum: Investing - Theory, News & General
Topic: Standard deduction tax question
Replies: 9
Views: 1677

Re: Standard deduction tax question

https://www.bogleheads.org/forum/viewtopic.php?t=86849 I like the stacked bar chart by tfb (12/11/11 post 5:26PM). It shows , not only that the deductions/exemptions first eat away at the ordinary income at the bottom of the stack but also how the QDIV/LTCG gets taxed if you straddle the 15% bracke...
by kaneohe
Sat Dec 23, 2017 12:42 pm
Forum: Personal Consumer Issues
Topic: Income tax software, "Tax Slayer".
Replies: 16
Views: 1530

Re: Income tax software, "Tax Slayer".

One thing I liked about the old Taxwise was that you could just input the relevant numbers w/o having to enter all the "garbage" info . This, of course, didn't help on the real return but when you are practicing or doing the test, it saved a lot of time.
by kaneohe
Sat Dec 23, 2017 12:39 pm
Forum: Investing - Help with Personal Investments
Topic: Selling uncovered mutual fund shares by Specific ID
Replies: 15
Views: 855

Re: Selling uncovered mutual fund shares by Specific ID

Thanks for all the info. If I sell as specific ID I'll need to take whatever the mutual fund company will offer in the way of documentation. Thinking more about it all, I may consider using average cost. It would be more tax up front, but since I'd like to sell off all the shares over the next 5 or...
by kaneohe
Fri Dec 22, 2017 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Linking Schwab accounts
Replies: 6
Views: 456

Re: Linking Schwab accounts

Try talking to Schwab. They might be able to limit withdrawals. I think 5% of account was the lowest they would go some yrs ago.
by kaneohe
Fri Dec 22, 2017 9:47 pm
Forum: Investing - Theory, News & General
Topic: A New (I think) Question About Dividends in a Roth IRA
Replies: 17
Views: 1762

Re: A New (I think) Question About Dividends in a Roth IRA

......................................... , one thing I would like to know is whether it makes sense to invest in funds that have paid historically higher dividends since those can be automatically reinvested (putting us over the 5.5k limit per Roth) thereby increasing our yearly contributions, and...
by kaneohe
Fri Dec 22, 2017 9:37 pm
Forum: Personal Consumer Issues
Topic: Income tax software, "Tax Slayer".
Replies: 16
Views: 1530

Re: Income tax software, "Tax Slayer".

My experience with the pro version of Tax Slayer is dreadful. ................................................... Maybe the pain last yr was so bad that I've forgotten everything...........but I was pleasantly surprised today when fooling around a test problem on TS Pro. I entered info from a 1099-...
by kaneohe
Fri Dec 22, 2017 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: Selling uncovered mutual fund shares by Specific ID
Replies: 15
Views: 855

Re: Selling uncovered mutual fund shares by Specific ID

here are some words from an old (2011)( Pub 550 about the requirements for specific sh ID: 1. Specify to your broker or other agent the particular shares to be sold or transferred at the time of the sale or transfer, and . 2. Receive confirmation in writing from your broker or other agent within a r...
by kaneohe
Fri Dec 22, 2017 12:12 pm
Forum: Investing - Help with Personal Investments
Topic: Selling uncovered mutual fund shares by Specific ID
Replies: 15
Views: 855

Re: Selling uncovered mutual fund shares by Specific ID

I'm still thinking you can't force the broker to comply with a request for a letter. Anyone know? I guess in this world you really can't force anyone to do anything (law or not) but I think these folks are smart enough to want to keep the customers happy (eventually) and it might take talking a sup...
by kaneohe
Fri Dec 22, 2017 11:58 am
Forum: Investing - Help with Personal Investments
Topic: Selling uncovered mutual fund shares by Specific ID
Replies: 15
Views: 855

Re: Selling uncovered mutual fund shares by Specific ID

................................................................. This mutual fund company is telling me it’s not necessary for them to provide a listing of the actual uncovered shares sold. I’m wondering if anyone has done this in a fund family other than Vanguard and how it was handled. Thanks I'...
by kaneohe
Fri Dec 22, 2017 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Selling uncovered mutual fund shares by Specific ID
Replies: 15
Views: 855

Re: Selling uncovered mutual fund shares by Specific ID

My impression of olden days specific shares ID was that you had to tell the fund co. in advance of the transaction the specific shares transaction infon and they would then have to confirm w/you in writing that same info. They could put it on their company letterhead or provide a time/dated copy of ...
by kaneohe
Fri Dec 22, 2017 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Revocable family trust & Federal tax
Replies: 8
Views: 714

Re: Revocable family trust & Federal tax

should be the same as for individuals.......1040, supporting forms.
by kaneohe
Thu Dec 21, 2017 7:54 am
Forum: Investing - Theory, News & General
Topic: There is one scenario where taxable > Roth
Replies: 7
Views: 1086

Re: There is one scenario where taxable > Roth

What you did was not better than a Roth. All you did was offset gains with a loss but the loss now has a reset basis which just kicks the tax can down the road. The fund that you sold at a loss will now have a larger potential tax in the future unless your tax rate when you sell it in the future is...
by kaneohe
Wed Dec 20, 2017 10:54 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Reporting of Ally 11 mo. No-Penalty CD
Replies: 4
Views: 695

Re: Tax Reporting of Ally 11 mo. No-Penalty CD

Thanks, Huey, for that hard work. I don't like doing financial stuff online so I ended up doing a chat.......wait nearly as long as waiting on telephone but somehow didn't seem as bad plus didn't get ergonomic injury cradling phone between chin/shoulder. Rep's answer was basically same as yours........
by kaneohe
Wed Dec 20, 2017 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Reporting of Ally 11 mo. No-Penalty CD
Replies: 4
Views: 695

Re: Tax Reporting of Ally 11 mo. No-Penalty CD

As long as the interest is not credited to your account or paid out to you, you do not have reportable interest. And Ally’s disclosure statement for their NP CD says that interest is paid at maturity or redemption. Thanks,Huey........I agree w/ your first statement. Originally I wanted the reportab...
by kaneohe
Wed Dec 20, 2017 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Reporting of Ally 11 mo. No-Penalty CD
Replies: 4
Views: 695

Tax Reporting of Ally 11 mo. No-Penalty CD

I thought I understood this but a rep at Ally had a contrary opinion so double-checking. I thought when the CD was set up that I had the choice of reporting it on a current basis (at yr end) or at maturity (since < 1 yr maturity). The statement shows that the mo. end ending balance is the same as th...
by kaneohe
Wed Dec 20, 2017 11:13 am
Forum: Personal Finance (Not Investing)
Topic: Avoiding AMT while taking gains
Replies: 8
Views: 897

Re: Avoiding AMT while taking gains

Rather than trying to "intuit" something w/a million variables, try just calculating it w/tax software or a tax calculator like this https://www.hrblock.com/tax-calculator/#/en/te/results e.g. even you just input W2 income of 150K and LTCG 150K w/ std. deduction/exemptions,you will find AMT (you wil...
by kaneohe
Tue Dec 19, 2017 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: Can charitable deductions reduce short-term capital gains?
Replies: 8
Views: 954

Re: Can charitable deductions reduce short-term capital gains?

https://www.schwab.com/resource-center/ ... cmp=em-QYB

suggests more directly that donation to DAF also must meet the 1 yr holding period for fair market value deduction.
by kaneohe
Mon Dec 18, 2017 12:23 am
Forum: Personal Finance (Not Investing)
Topic: Can charitable deductions reduce short-term capital gains?
Replies: 8
Views: 954

Re: Can charitable deductions reduce short-term capital gains?

........................... What is your STCG from? If stocks / securities (not yet sold), I found it advantageous to gift my STCG stocks direct (in kind) to my Donor Advised Fund (DAF) (or family foundation), which in turn transfers tax free with a 'step-up' basis. (I.e. you get to deduct the full...
by kaneohe
Sun Dec 17, 2017 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: Paying for Roth Conversions
Replies: 3
Views: 614

Re: Paying for Roth Conversions

Withholding is fine for your purpose....in fact it is better than paying estimated taxes. If you pay w/ w/h, IRS does nor pay attention to when you earned your income or how/when you paid your taxes (by w/h). The assumption is that you earned and paid taxes evenly during the yr. Some folks w/h the f...
by kaneohe
Sun Dec 17, 2017 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Question on Calculating IRA Deduction
Replies: 3
Views: 310

Re: Question on Calculating IRA Deduction

Consistent with the acronym IRA (I for individual), most tax operations that involve IRAs that I'm aware of are done separately, then combined w/ the other spouse e.g. F8606 for calculating the taxable/non-taxable parts of a Roth conversion where you have a form for each spouse. There might be an ex...
by kaneohe
Sun Dec 17, 2017 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Can charitable deductions reduce short-term capital gains?
Replies: 8
Views: 954

Re: Can charitable deductions reduce short-term capital gains?

see tfb's chart on 12/11/11 for a pictorial way of thinking about this. https://www.bogleheads.org/forum/viewtopic.php?t=86849 You'll have to create the other brackets (28, 33%). The STCG is a part of the ordinary income bar at the bottom. The charitable deductions will eat away at the bottom of the...
by kaneohe
Sun Dec 17, 2017 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Can charitable deductions reduce short-term capital gains?
Replies: 8
Views: 954

Re: Can charitable deductions reduce short-term capital gains?

QDIV/LTCG are stacked on top of the ordinary income (of which ST is a part) so your ST gains would be taxed at whatever rate your other ordinary income + STCG resulted in. It might be useful to use tax software or a tax calculator to calculate tax w/ normal ord. inc. + LTCG ; and then add the STCG. ...
by kaneohe
Sun Dec 17, 2017 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: What 529 plan are you using?
Replies: 20
Views: 1962

Re: What 529 plan are you using?

RetiredCSProf wrote:
Sat Dec 16, 2017 2:37 pm
..................................... I am a resident of California, which provides no in-state plans.........................
https://www.savingforcollege.com/529-plans/california

or perhaps you meant no state tax deduction?
by kaneohe
Sun Dec 17, 2017 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Question on Calculating IRA Deduction
Replies: 3
Views: 310

Re: Question on Calculating IRA Deduction

pretty sure you are correct. Here's line 3 from your wksht: 3. Subtract line 2 from line 1. If line 3 is $10,000 or more ($20,000 or more if married filing jointly or qualifying widow(er) and you are covered by an employer plan), stop here. You can take a full IRA deduction for contributions of up t...
by kaneohe
Fri Dec 15, 2017 11:18 pm
Forum: Investing - Help with Personal Investments
Topic: 2017 tax help
Replies: 20
Views: 1875

Re: 2017 tax help

........................................... I wanted to do some Roth conversions this year because I have to take RMD in about 6 years but at 28% tax bracket I don't think it would be worth it. Thanks again, KPG You should do the calculation that Kevin suggested for your Roth conversion. You will f...
by kaneohe
Fri Dec 15, 2017 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: 2017 tax help
Replies: 20
Views: 1875

Re: 2017 tax help

I think J3 has it.....redo his calc w/ the later assumption about ord div/qdiv: ord inc. =pension 33100, 85% SS 12209, interest 221, total div minus QDIV =4994 = 50524 QDIV/LTCG= 5209 QDIV, 127293 LTCG = 132502 subtract std ded 12700, exemptions 8100 =20800 from ordinary income of 50524 to yield net...
by kaneohe
Thu Dec 14, 2017 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Accidental Ineligible Roth IRA Contributions - Recharacterization?
Replies: 7
Views: 490

Re: Accidental Ineligible Roth IRA Contributions - Recharacterization?

Oops, looks like you caught the mistake too late to correct it this year: . Is there a minimum waiting period to reconvert the money to a Roth IRA following a recharacterization? Yes, if you recharacterize all or part of a rollover or conversion to a Roth IRA, you cannot reconvert the amount rechar...
by kaneohe
Thu Dec 07, 2017 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: Which to do - Roth conversion or LTCG?
Replies: 21
Views: 1075

Re: Which to do - Roth conversion or LTCG?

I’ve been looking at this, with inherited IRA, it can be stretched. With Roth IRA, my hiers have to withdraw within 5 years. .......................... Why do you think Roth IRAs can't be stretched too? Got a link? Here is the link, note the RMD for Roth is after initial IRA owner’s death. https://...
by kaneohe
Thu Dec 07, 2017 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: Which to do - Roth conversion or LTCG?
Replies: 21
Views: 1075

Re: Which to do - Roth conversion or LTCG?

DrGoogle2017 wrote:
Thu Dec 07, 2017 4:41 pm
I’ve been looking at this, with inherited IRA, it can be stretched. With Roth IRA, my hiers have to withdraw within 5 years. ..........................
Why do you think Roth IRAs can't be stretched too? Got a link?