Search found 4584 matches

by kaneohe
Mon Nov 13, 2017 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Long term capital gains tax - effective tax is higher than 15%
Replies: 15
Views: 1281

Re: Long term capital gains tax - effective tax is higher than 15%

Is the LTCG a significant part of the income? Perhaps AMT is affecting you.
by kaneohe
Mon Nov 13, 2017 9:37 am
Forum: Investing - Help with Personal Investments
Topic: 401k / IRA questions
Replies: 8
Views: 886

Re: 401k / IRA questions

Well it seems that it's time for me to learn more about these backdoor Roths. It is possible that someday I'm phased out of Roth - I'm not counting on it, but it's possible. Can you help me get a couple things straight? This whole backdoor roth conversion is very very confusing to me... 1. I curren...
by kaneohe
Sat Nov 11, 2017 11:03 am
Forum: Personal Finance (Not Investing)
Topic: 11 month no pnealty CD 1.55% 1K Minnimum
Replies: 11
Views: 2117

Re: 11 month no pnealty CD 1.55% 1K Minnimum

Thanks, grok. Guess I'll have to interrogate Ally again re: those words "we reserve" vs the marketing of No-penalty CDs.
by kaneohe
Fri Nov 10, 2017 11:50 pm
Forum: Personal Finance (Not Investing)
Topic: 11 month no pnealty CD 1.55% 1K Minnimum
Replies: 11
Views: 2117

Re: 11 month no pnealty CD 1.55% 1K Minnimum

Sure its no penalty if the bank agrees to give you your money back early. They reserve the right not to. From depositaccounts.com I have a No-Penalty CD. How do I access my funds? You can make a request to access the total balance and interest earned on your No-Penalty CD as long as it is 7 days af...
by kaneohe
Fri Nov 10, 2017 11:16 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Rollover 1 per year rule
Replies: 19
Views: 1748

Re: IRA Rollover 1 per year rule

[................................... There are three ways to transfer IRA assets: ....................................... [*] Indirect rollover where a check from Custodian #1 is mailed to you and made out to WorkToLive. You then deposit it into your account and write a check for Custodian #2. You ...
by kaneohe
Fri Nov 10, 2017 9:29 am
Forum: Investing - Theory, News & General
Topic: Please help me understand tax loss harvesting
Replies: 12
Views: 848

Re: Please help me understand tax loss harvesting

You might want to look at Sch D to see how things work. ST losses are applied against ST gains and LT losses against LT gains; then the net ST and net LT are combined. If you have a 6K loss and a 6K gain, they offset each other w/ a net of 0. If you have a 6K loss and no gains, you can use 3K of the...
by kaneohe
Thu Nov 09, 2017 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: 11 month no pnealty CD 1.55% 1K Minnimum
Replies: 11
Views: 2117

Re: 11 month no pnealty CD 1.55% 1K Minnimum

Chicago60 wrote:
Thu Nov 09, 2017 6:54 pm
Why be satisfied with 1.55% for 11 months, when over 20 different financial institutions listed on that same website have rates exceeding 1.55% for 12 month term CDs, with several showing rates at 1.70+%?
what is EWP on those?
by kaneohe
Thu Nov 09, 2017 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Will my IRA contributions be tax deductible?
Replies: 4
Views: 416

Re: Will my IRA contributions be tax deductible?

If 67K is gross income, then 12K contribution to 401K should reduced Fed. gross (reported on tax return) to 55K. 18K gross of SS is reported on tax return at a max (could be less) of 85% of that value which reduces your AGI another 2.7K so you should be comfortably below the 99K limit. Even if you w...
by kaneohe
Tue Nov 07, 2017 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: Does an Traditional IRA contribution lose its deductibility if converted to a ROTH IRA?
Replies: 12
Views: 899

Re: Does an Traditional IRA contribution lose its deductibility if converted to a ROTH IRA?

But you do realize there is no point in doing that, right? You achieve the same thing by contributing directly to Roth IRA...with less paperwork and more flexibility about withdrawing the money if needed. O.P. could just do a Non-deductible IRA contribution and then convert to Roth inexpensively (i...
by kaneohe
Mon Nov 06, 2017 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Simulating impact of W-4 changes?
Replies: 5
Views: 430

Re: Simulating impact of W-4 changes?

.................. What I've been doing is to look at how much federal tax we owed the prior year, and then experiment with filing new W-4's for each of us until I see the federal tax being withheld from each check reflecting the desired outcome. But that requires submitting a new W-4, waiting for ...
by kaneohe
Mon Nov 06, 2017 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Estimated Quarterly Tax Payments vs. Withholding
Replies: 8
Views: 820

Re: Estimated Quarterly Tax Payments vs. Withholding

A Roth conversion even by indirect rollover is not subject to the one rollover per 12 month period rule. Only indirect rollovers between similar IRAs; (traditional, SEP or SIMPLE) IRA -> (traditional, SEP or SIMPLE) IRA and Roth IRA -> Roth IRA are subject to the rule. SR , thanks for correction.
by kaneohe
Mon Nov 06, 2017 12:01 am
Forum: Personal Finance (Not Investing)
Topic: Estimated Quarterly Tax Payments vs. Withholding
Replies: 8
Views: 820

Re: Estimated Quarterly Tax Payments vs. Withholding

If you are going to do this regularly near yr end, just be sure you don't violate the indirect rollover rule...only 1 such rollover allowed in a 12 mo
period (NOT calendar yr)
by kaneohe
Sun Nov 05, 2017 7:57 am
Forum: Personal Finance (Not Investing)
Topic: How does a conversion to a Roth IRA affect cap gains tax rate?
Replies: 8
Views: 870

Re: How does a conversion to a Roth IRA affect cap gains tax rate?

.................................................................... If this is all correct, you may wish to seriously consider recharacterizing that Roth conversion and waiting until a year when you either make much more or much less money. ............................ OP should seriously consider...
by kaneohe
Thu Nov 02, 2017 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Rollover to Existing Roth IRA
Replies: 7
Views: 725

Re: Roth IRA Rollover to Existing Roth IRA

If you go the indirect rollover route, be sure you didn't have any other indirect rollovers in either TIRA or Roth within the last 12 mos.
by kaneohe
Wed Nov 01, 2017 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Form 709 help; 529 super-funding mistake
Replies: 11
Views: 930

Re: IRS Form 709 help; 529 super-funding mistake

From the instruction for F709: If a gift is of community property, it is considered made one-half by each spouse. For example, a gift of $100,000 of community property is considered a gift of $50,000 made by each spouse, and each spouse must file a gift tax return **********************************...
by kaneohe
Tue Oct 31, 2017 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Form 709 help; 529 super-funding mistake
Replies: 11
Views: 930

Re: IRS Form 709 help; 529 super-funding mistake

From the instruction for F709: If a gift is of community property, it is considered made one-half by each spouse. For example, a gift of $100,000 of community property is considered a gift of $50,000 made by each spouse, and each spouse must file a gift tax return ***********************************...
by kaneohe
Tue Oct 31, 2017 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Help recharacterizing an IRA contribution with loss
Replies: 7
Views: 546

Re: Help recharacterizing an IRA contribution with loss

............................................... BTW, I pinged a tax expert and his recommendation was to create the amended return for my own records (for tracking basis, in case of audit, etc) but not to submit it to the IRS. They apparently get grumpy about amended returns that don't change the a...
by kaneohe
Tue Oct 31, 2017 11:44 am
Forum: Personal Finance (Not Investing)
Topic: HSA and Medical Expense Deduction in CA
Replies: 4
Views: 652

Re: HSA and Medical Expense Deduction in CA

Generally IRS frowns on double-dipping. If you have expenses of 25K and 10% of AGI = e.g. 10K, you can use 10K to satisfy the IRS floor for deductions and then deduct the remaining 15K or you can use 8K to withdraw from the HSA, 10K to satisfy IRS floor for deductions, and deduct the remaining 7K. I...
by kaneohe
Tue Oct 31, 2017 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Help recharacterizing an IRA contribution with loss
Replies: 7
Views: 546

Re: Help recharacterizing an IRA contribution with loss

As your title suggests, you are recharacterizing an IRA contribution (not a conversion). This means you are treating the contribution as if you had made a TIRA contribution originally (instead of a Roth). If you had made a TIRA contribution originally and the investment had lost value, you would not...
by kaneohe
Tue Oct 31, 2017 12:03 am
Forum: Personal Finance (Not Investing)
Topic: Projecting Tax Liability - Assistance Required
Replies: 30
Views: 1932

Re: Projecting Tax Liability - Assistance Required

................................. Is there a way to calculate what the paycheck impact is going to be if we switch to married but withhold at higher single rate on our w4? If you need to w/h more, this late in the yr it may be easier to do as suggested earlier by flamesabers........withhold an addi...
by kaneohe
Fri Oct 27, 2017 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: RMD amount for IRA vs 403b (IRS instructions?)
Replies: 12
Views: 708

Re: RMD amount for IRA vs 403b (IRS instructions?)

may not apply to you but I believe if you had contributions before some yr (thinking it's 1986 but could be off), you can postpone
taking RMDs on those older contributions until some age (thinking 75 but again could be off).
by kaneohe
Sun Oct 22, 2017 5:48 am
Forum: Investing - Theory, News & General
Topic: Isn't a Roth IRA and Backdoor Roth Equally Advantageous?
Replies: 24
Views: 3181

Re: Isn't a Roth IRA and Backdoor Roth Equally Advantageous?

perhaps they were thinking more traditionally.......qualified plans, instead of Roth qualified plans.......where the deduction was important to you.
If it is not, seems like backdoor would be similar to regular Roth.
by kaneohe
Sat Oct 21, 2017 8:27 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA + Rollover Withdrawals
Replies: 5
Views: 303

Re: Roth IRA + Rollover Withdrawals

I believe it follows from what you actually did............made an original contribution to TIRA and then converted to Roth.... so it's a conversion. If you could have made an original contribution to Roth , it would have been much simpler but for some reason you didn't do that (because you couldn't...
by kaneohe
Sat Oct 21, 2017 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Why not switch from Medigap F to G now?
Replies: 43
Views: 4252

Re: Why not switch from Medigap F to G now?

.......................................................................... DH just changed carriers recently to go from Plan F at one carrier to another carrier's Plan F. It was relatively effortless. No medical underwriting is required if you transfer to the same plan letter or to one that offers ...
by kaneohe
Sat Oct 21, 2017 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA + Rollover Withdrawals
Replies: 5
Views: 303

Re: Roth IRA + Rollover Withdrawals

Here's a table you might find useful: made by kawill at the fairmark. com site and vetted by Alan S. who posts here also. It lists various time periods of your age and the age and nature of your conversions. The ordering rules specify what comes out first: original contributions, then conversions, a...
by kaneohe
Sat Oct 21, 2017 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Confusion about Part D IRMAA
Replies: 13
Views: 783

Re: Confusion about Part D IRMAA

wondering if employer sponsored Medicare Advantage Plans are treated differently than stuff you buy on the street. Like OP, wife's plan was obtained
via employer.............perhaps employer is absorbing the costs? or having the pool of retirees sharing the costs?
by kaneohe
Sat Oct 21, 2017 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Confusion about Part D IRMAA
Replies: 13
Views: 783

Re: Confusion about Part D IRMAA

If you didn't sign up for Part D, you won't have to pay either the basic premium or the IRMAA for Part D. That's my impression too. SS has annual statements once you start getting payments. They tell you coming yr SS amounts, deductions for Medicare and IRMAA deductions for pt B/pt D. I have Medica...
by kaneohe
Sat Oct 21, 2017 8:53 am
Forum: Personal Finance (Not Investing)
Topic: medicare supplement
Replies: 29
Views: 2222

Re: medicare supplment

Since I'm new to this, is it customary to call pharmacies to check prices and co-pays? perhaps more easily done at the medicare.gov website where you would go to choose a Rx drug plan . There is an annual enrollment period each year about this time. Input the drug you are interested in and the webs...
by kaneohe
Fri Oct 20, 2017 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Strange email from Equifax
Replies: 14
Views: 1985

Re: Strange email from Equifax

At this point I'd be striving to minimize contact with these companies. They've had to surge a lot of temp staff to do "customer service". I'd be concerned that each additional contact just increases the likelihood of further errors. I called 3 wks ago and froze both of our accts via automated phon...
by kaneohe
Fri Oct 20, 2017 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: medicare supplement
Replies: 29
Views: 2222

Re: medicare supplment

Did you also choose a Medicare Prescription Drug Plan in addition to plan N? Yes, I have the Humana (Walmart) plan for $17/mo. Scripts need to be filled at Walmart to qualify for the reduced prices. I'm not a snob but I'll admit I was a little reluctant to depend on them for meds. However, on a pos...
by kaneohe
Fri Oct 20, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvest Question
Replies: 2
Views: 322

Re: Tax Loss Harvest Question

Take a look at Sch D https://www.irs.gov/pub/irs-pdf/f1040sd.pdf , then tell us............
by kaneohe
Thu Oct 19, 2017 9:28 pm
Forum: Investing - Help with Personal Investments
Topic: Back Door Roth IRA – is it worth paying taxes now on gains?
Replies: 5
Views: 582

Re: Back Door Roth IRA – is it worth paying taxes now on gains?

............................ Or should I transfer the traditional IRA to my current employers’ 401K plan to get a fresh start in my IRA account ($0 balance) ........................................ Can't be sure what you're thinking but you can't transfer the whole TIRA to 401K..........only the ea...
by kaneohe
Thu Oct 19, 2017 12:46 am
Forum: Personal Finance (Not Investing)
Topic: medicare supplement
Replies: 29
Views: 2222

Re: medicare supplment

https://interactive.web.insurance.ca.go ... :SESSION::

you can compare rates here for various plans
by kaneohe
Tue Oct 17, 2017 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Help Me Think About Roth Conversions and Retirement?
Replies: 17
Views: 1946

Re: Help Me Think About Roth Conversions and Retirement?

Strayshot, I already have that plotted out as you suggest. And yes, I will have a very generous pension when I retire - nearly 40 years of service in total. Current tax bracket: 33% + 9.3% - for 2017-2025. Retire Feb 2026, age 60: One month income, 10 months retirement income, fall to 25% Fed and 9...
by kaneohe
Mon Oct 16, 2017 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Sell fund cost basis
Replies: 10
Views: 891

Re: Sell fund cost basis

https://www.bogleheads.org/wiki/Cost_basis_methods

looks like FIFO could be the default method if you opt out of AVG Basis so just subtract the ST shares from the total and the rest by FIFO should be LT.
by kaneohe
Sun Oct 15, 2017 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: UGMA Taxes [Uniform Gift to Minors Act]
Replies: 4
Views: 410

Re: UGMA Taxes [Uniform Gift to Minors Act]

https://www.journalofaccountancy.com/issues/2007/jul/thedreadedkiddietax.html This is an older article......not sure if it still applies ........but sounds like it could be somewhat complex "Computing the kiddie tax is often complex, and some income normally subject to preferential tax rates, such ...
by kaneohe
Sun Oct 15, 2017 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: 2016 tax help before deadline!!! 401k excess
Replies: 21
Views: 984

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

..................................................... Looks like when I first posted I had changed my foreign tax credit (for a separate issue I was trying to figure out, which I've now resolved). That credit change threw off my refund by $10. To correct my #s, when I have my W2s entered accurately...
by kaneohe
Sun Oct 15, 2017 11:50 am
Forum: Personal Finance (Not Investing)
Topic: 2016 tax help before deadline!!! 401k excess
Replies: 21
Views: 984

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

I think you conclude that it is as advertised: no penalty on 401K excess and everything is consistent including your previous assumption that extra income would be taxed at 28% was correct? This whole adventure started w/ that $26 inconsistency?
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: 984

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: 984

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: 984

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: 1200

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: 1200

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: 40
Views: 3529

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: 40
Views: 3529

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: 4636

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: 480

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: 1555

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: 40
Views: 3529

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: 633

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%.)