Search found 4701 matches

by kaneohe
Wed Jan 10, 2018 9:15 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth: Isolating Taxable Portion of Traditional IRA and IRS Publication 590-A
Replies: 6
Views: 449

Re: Backdoor Roth: Isolating Taxable Portion of Traditional IRA and IRS Publication 590-A

I'm looking at this too to unwind some IRA mess and stop having to track basis of non-deductible contributions - is it as simple as taking your tracked non-deductible basis and rolling that amount over to a qualified 401K plan ? .............................. I think this might be backwards...........
by kaneohe
Tue Jan 09, 2018 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3463

Re: Trying to understand Roth five-year rule

I have a similar question, that I think Alan S. has probably already answered above, but I'm having a hard time parsing it all out. Suppose I make an in plan Roth conversion of the after-tax source of a 403(b). I subsequently roll that Roth 403(b) over into a Roth IRA. During this time I have also ...
by kaneohe
Mon Jan 08, 2018 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Recharacterization.......one last chance?
Replies: 2
Views: 359

Recharacterization.......one last chance?

http://fairmark.com/forum/read.php?2,84769 Posted by: Kaye Thomas, January 3, 2018 06:13PM I've confirmed that the IRS will take the position that taxpayers can use the recharacterization provisions to undo Roth conversions occurring in 2017 until October 15, 2018. There is no immediate plan to pro...
by kaneohe
Sun Jan 07, 2018 1:09 pm
Forum: Forum Issues and Administration
Topic: Misuse of adverse when averse was meant
Replies: 149
Views: 8284

Re: Misuse of adverse when averse was meant

When did you guys graduate college? Even tho I see that more and more these days,my old brain refuses to accept that.......and googling finds at least 1 person in agreement.
by kaneohe
Sun Jan 07, 2018 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Should I do Deductible tIRA or Roth IRA - please see below
Replies: 3
Views: 270

Re: Should I do Deductible tIRA or Roth IRA - please see below

If you are eligible to contribute to either w/o phaseout problems, what is the point of contributing to TIRA and then converting as opposed to contributing directly to Roth? Yes , you get a deduction for contributing to TIRA but then you negate that by doing the conversion so all you've done is comp...
by kaneohe
Sun Jan 07, 2018 11:53 am
Forum: Investing - Help with Personal Investments
Topic: What to do with RMD money
Replies: 18
Views: 1820

Re: What to do with RMD money

My sister is now forced to take money from her retirement accounts. ........................ But she is pretty tight for money. ...................... Perhaps I'm misinterpreting but the above is a bit confusing to me.........."forced to take" suggests she doesn't need the money. "pretty tight for ...
by kaneohe
Sun Jan 07, 2018 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 33824

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

Note, the LTCG brackets aren't tied to the new brackets anymore, and are offset a couple hundred dollars. E.g. the 15% bracket starts at $77,200 for joint returns and $38,600 for single. Is that $77,200 after the standard deduction (or itemized)? brackets are tied to taxable income so take the exem...
by kaneohe
Sat Jan 06, 2018 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3463

Re: Trying to understand Roth five-year rule

again, I don't pretend to know this situation, but be careful and precise about your words......there are after tax contributions to 401K and there are Roth 401K contributions and they are not identical. In your last post, you use both terms....so wondering which one is the correct one? One part I a...
by kaneohe
Sat Jan 06, 2018 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Mechanics of consolidating mutual funds—is it better to....?
Replies: 4
Views: 551

Re: Mechanics of consolidating mutual funds—is it better to....?

Are you in a community property state? Don't know about other such states but in CA, all the assets in a jt. trust would get a step up in basis so it's as good a time as ever to move to low cost index funds to minimize future tax distributions from the actively managed funds.
by kaneohe
Sat Jan 06, 2018 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3463

Re: Trying to understand Roth five-year rule

I don't really know the answer about rollover from Roth 401K to Roth IRA but I am inclined to believe what libralibra says: that the age of the Roth 401K assets restarts when you transfer to Roth IRA......either taking on age of oldest Roth IRA if pre-existing or restarting at 0 yrs if no other Roth...
by kaneohe
Sat Jan 06, 2018 2:01 am
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3463

Re: Trying to understand Roth five-year rule

I have a question with regards to Roth IRA withdrawals before age 59.5. How does the money come out of the Roth IRA account if the monies within the Roth IRA account has a mixture of contributions, conversions (via back door roth), and earnings? For example, could one say leave the earnings in the ...
by kaneohe
Fri Jan 05, 2018 11:19 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 3463

Re: Trying to understand Roth five-year rule

compare to this table by kawill from fairmark.com site (vetted by Alan S.) looks like your nicely summarized result agrees. Pls recheck yourself. Re: Roth IRA Rules - Table Approach Posted by: KAWill (IP Logged) Date: October 14, 2010 11:57PM Roth IRA Distribution Table UNDER AGE 59.5 FIVE YEAR CONV...
by kaneohe
Thu Jan 04, 2018 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Paying Fed Estimated Tax for 2018 (new rates/brackets)
Replies: 7
Views: 1093

Re: Paying Fed Estimated Tax for 2018 (new rates/brackets)

what other complexities besides LTCG/QDIV are you trying to model?
by kaneohe
Thu Jan 04, 2018 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tax penalty (Fed and NYS)
Replies: 2
Views: 443

Re: Tax penalty (Fed and NYS)

Calculate the tax that will be due. For estimated taxes, the simple way is to have 4 equal payment "quarterly". The penalty is figured on each payment so the time period delinquent will vary from 3 mos. to 1 yr for an average period of about 7.5 mos. At an annual rate of 4%, take your total amount d...
by kaneohe
Wed Jan 03, 2018 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2181

Re: Roth IRA 5 year rule

Ok, I now agree it should not be taxable. To see it clearly in an IRS publication, I think the flowchart in Figure 2.1 in Publication 590 is salient. That flowchart by itself has some significant limitations: You make a Roth conversion in 2017. In 2018 , you withdraw the full amount but the earning...
by kaneohe
Wed Jan 03, 2018 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2181

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 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2181

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: 2181

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: 2181

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: 635

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: 3883

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: 3883

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: 3883

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: 3883

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: 3883

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: 1256

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: 1256

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: 33824

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: 645

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: 286

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: 33824

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: 660

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: 139
Views: 23999

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: 2166

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: 139
Views: 23999

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: 726

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: 726

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: 1740

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: 1627

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: 954

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: 532

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: 1914

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: 1627

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: 954

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: 954

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: 954

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: 954

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: 776

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: 1104

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...