Search found 4701 matches

by kaneohe
Tue Jan 20, 2009 11:30 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional non-deductible IRA conversion - negative earning
Replies: 3
Views: 1122

I guessed I missed reading the notes about not filling in Pt I. I get what you said if I just do pt II. You don't suppose they left out an instruction for line 18......if less than 0, enter 0? Interesting......you might run it by the guys at fairmark.com in the retirement section to see what their r...
by kaneohe
Tue Jan 20, 2009 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: 2008 Unrealized Losses
Replies: 4
Views: 1190

perhaps the title should be something like: $$$ lost from peak
or something similar. The current title helps to perpetuate the idea that loss from a interim high is something that can be harvested.
by kaneohe
Tue Jan 20, 2009 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Question about cost basis when selling entire fund
Replies: 4
Views: 1033

If you knew nothing and did nothing special, by IRS rules you would be using FIFO (first-in, first out) which, since it gives you the same result and preserves your flexibility to choose which method you use in the future, is not a bad thing to happen.
by kaneohe
Sat Jan 17, 2009 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: 1099-B Question
Replies: 6
Views: 1653

IRS wants to check that you are reporting all the sales so it compares the 1099B number against your sales proceeds on
Sch D.
by kaneohe
Sat Jan 17, 2009 8:22 pm
Forum: Investing - Help with Personal Investments
Topic: complicated question re: 60-day IRA rule
Replies: 7
Views: 1388

I think OP wants to pay taxes w/ non-IRA funds to maximize amount in the Roth. edit: and avoid the 10% penalty on the withheld funds.
by kaneohe
Sat Jan 17, 2009 8:19 pm
Forum: Investing - Help with Personal Investments
Topic: IRA contribution question
Replies: 6
Views: 1427

jsavage wrote:How much was the unemployment? It's considered earned income.
not according to this:

http://www.kiplinger.com/columns/ask/ar ... /q0409.htm
by kaneohe
Sat Jan 17, 2009 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Incorrect 1099 from Social Security
Replies: 6
Views: 1373

Re: Incorrect 1099 from Social Security

dm200 wrote: I would file a request for an extension, and wait until I received the correct 1099s. When you file the extension request, make sure you make a rough estimate of what you might owe, if anything.
.......and perhaps pay that amount to stop the accrual of interest/penalties.
by kaneohe
Sat Jan 17, 2009 2:02 pm
Forum: Investing - Help with Personal Investments
Topic: Simple tax question
Replies: 7
Views: 1602

If you look at Form 1040 carefully, you will see that capital gains or losses are adjustments to income. So, in your case, take your W-2 income, subtract your $3000 capital loss, then subtract your standard deduction, then subtract your personal exemption, and pay tax on what's left. In other words...
by kaneohe
Sat Jan 17, 2009 1:29 pm
Forum: Investing - Theory, News & General
Topic: Rollover and Trad-IRA. Combine or keep separate?
Replies: 25
Views: 3787

Creditor protection under federal bankruptcy law is 1M for regular contributory IRAs and unlimited for rollovers from qualified plans like 401ks (and, I think, 403bs). If you mix them, it is not clear what protection you will get. Safer to keep them separate but, depending on your situation, may not...
by kaneohe
Sat Jan 17, 2009 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: 401k vs IRA: do they have different RMD's?
Replies: 4
Views: 3576

I think the RMD is calculated the same and my impression is that for 401Ks (if you have more than 1), the RMD must come from each and every one according to the calculation. With IRAs, you can choose where you want the RMDs to come from if you have multiple accounts.
by kaneohe
Sat Jan 17, 2009 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Simple tax question
Replies: 7
Views: 1602

Re: Simple tax question

I have a deduction of $3000 in capital gains losses (who doesn't in 2008...), but it seems I'm still no where near the $5,450 standard deduction. you might already know this.......the $3000 in "excess" capital losses ( in excess of gains) reduces your taxable income (like the standard deduction) bu...
by kaneohe
Fri Jan 16, 2009 11:10 pm
Forum: Investing - Help with Personal Investments
Topic: disallowed loss
Replies: 3
Views: 961

Re: disallowed loss

. Life is expensive without wisdom. More accurately....can be expensive ....but not necessarily. From Pub 550 http://www.irs.gov/publications/p550/ch04.html#en_US_publink100010601 check out the section on wash sales where the number of shares are not equal. If the reinvested shares were a small fra...
by kaneohe
Fri Jan 16, 2009 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional non-deductible IRA conversion - negative earning
Replies: 3
Views: 1122

I've never done a conversion before ....just went thru the form for fun...I get 0 for line 18......I assume you get a loss there (negative number)??? Did you get 1.25 for line 10? I got 1.00 from the restrictions on the answer in the notes. If I use that 1.00 , then I end up w/ 0 in line 18. That ag...
by kaneohe
Thu Jan 15, 2009 7:05 pm
Forum: Investing - Help with Personal Investments
Topic: Question- Trad. IRA to Roth IRA Conversion
Replies: 3
Views: 1137

Re: Question- Trad. IRA to Roth IRA Conversion

Copied from IRS publication 590: You are not a married individual filing a separate return. Note.If you did not live with your spouse at any time during the year and you file a separate return, your filing status, FOR THIS PURPOSE, is single." This is an interesting question.... the quote from MV f...
by kaneohe
Thu Jan 15, 2009 6:30 pm
Forum: Investing - Theory, News & General
Topic: Janus class action suit settlement
Replies: 12
Views: 4474

You should ask the fund company to give you the url for the settlement/tax consequences website. I have received a number of these checks in recent years. When I have gone to the settlement websites, typically they have said that settlements from taxable accounts are considered a return of capital s...
by kaneohe
Wed Jan 14, 2009 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated Taxes
Replies: 20
Views: 3711

from Pub 505...capitalized the key word which is withholding. As dm200 suggested, withholding is more equal than paying estimated taxes. Exceptions Generally, you do not have to pay an underpayment penalty if either: Your total tax is less than $1,000, or You had no tax liability last year. Less Tha...
by kaneohe
Tue Jan 13, 2009 10:15 pm
Forum: Investing - Help with Personal Investments
Topic: Buying/selling specific shares?
Replies: 10
Views: 1795

If you sold all the shares, never had used average basis for that fund before, and didn't use average basis at final sale by using the designation AVGB on your tax return, you are free to use FIFO or specific shares or even average basis in the future. Once you use AVGB, you can't use FIFO or specif...
by kaneohe
Tue Jan 13, 2009 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: Buying/selling specific shares?
Replies: 10
Views: 1795

My impression is that VG (like most fund cos. I know) is not particularly friendly for specific-shares folks who end up having to keep their own records. If you didn't specify specific shares before you sold, your default could be that you sold the oldest shares (FIFO). That may/may not be what you ...
by kaneohe
Fri Jan 09, 2009 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: Can you convert a Roth IRA to a traditional?
Replies: 9
Views: 1616

just curious....why would you want to go "backwards"?
by kaneohe
Fri Jan 09, 2009 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: Can you convert a Roth IRA to a traditional?
Replies: 9
Views: 1616

Met Income wrote:So being offered a 401K automatically disqualifies me from contributing to a traditional IRA? (I gross about 80K).
As Tramper Al has already said, if you are single, you can contribute but not deduct your contribution.
by kaneohe
Wed Jan 07, 2009 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: y cable to mixer
Replies: 2
Views: 677

Both the CG and the conversion add to your AGI. Tough call on which to do....conversion will be at 10/15% this yr; probably in excess of 25% when both of you finish school. CG 0% now, probably in excess of 15% later. Delta is about 15% in both cases w. perhaps a slight edge to CG. Can you do some th...
by kaneohe
Wed Jan 07, 2009 8:39 am
Forum: Personal Finance (Not Investing)
Topic: How do I liquidate my Parents' Stocks?
Replies: 27
Views: 4651

and if I recall correctly, worthless means that literally.
If stock is worth $0.01, it is not yet worthless so cannot be written off . You have to pay the commission and sell it to take the loss. Same w/ OP's $2.52.
by kaneohe
Mon Jan 05, 2009 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: How do I liquidate my Parents' Stocks?
Replies: 27
Views: 4651

Did you add the reinvested dividends to the original cost to get the basis? No. That's why I'm posting the details of what I'm doing- rookie mistakes :oops:. I've got a lot of year-end statements showing the reinvested dividends, but not all. I assume that not including the dividends would just low...
by kaneohe
Mon Jan 05, 2009 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: How many reinvest dividends in a muni fund?
Replies: 18
Views: 2919

You could try a hybrid system.....take the monthly distributions in cash and then reinvest manually annually. Much less recordkeeping and still have the benefits of reinvesting.
by kaneohe
Mon Jan 05, 2009 9:41 am
Forum: Personal Finance (Not Investing)
Topic: How do I liquidate my Parents' Stocks?
Replies: 27
Views: 4651

Question #2: How do I liquidate BLU? The broker wanted a $10 fee to process the transaction. My Dad wouldn't do it for $2 worth of stock. How do I handle it? Choices: - Asset transfer (liquidate) to one of my Dad's taxable VG accounts. IOW, use Vanguard as the broker. Is it a problem for only $2.52...
by kaneohe
Mon Jan 05, 2009 9:32 am
Forum: Investing - Help with Personal Investments
Topic: First time TLH, Need help w/Wash Sale Reporting :-o
Replies: 18
Views: 2329

Re: Thanks!

Thank you, kaneohe. Don't know why Vanguard classified the disallowed wash sale as "short term", but maybe it had something to do with using the average cost basis method. Thanks again for having the patience to read through the numbers. :thumbsup --Pete I don't know either. You could ask them. I d...
by kaneohe
Mon Jan 05, 2009 2:33 am
Forum: Investing - Help with Personal Investments
Topic: First time TLH, Need help w/Wash Sale Reporting :-o
Replies: 18
Views: 2329

I read Ex 1 in Pub 550 following the paragraph you cited and agree w/ your calculations.
by kaneohe
Mon Jan 05, 2009 1:45 am
Forum: Personal Finance (Not Investing)
Topic: How do I liquidate my Parents' Stocks?
Replies: 27
Views: 4651

Did you add the reinvested dividends to the original cost to get the basis?
by kaneohe
Sun Jan 04, 2009 8:42 pm
Forum: Personal Finance (Not Investing)
Topic: non deductible IRA conversion to Roth IRA
Replies: 9
Views: 2013

This is one of the most mis-understood concepts. You cannot cherry-pick which IRA funds to convert. The IRS views all of your IRAs (deductible and non-deductible) as one big pot. You don't have to convert all of your IRA balances. However, some of the conversion will have a pro-rated tax liability ...
by kaneohe
Sun Jan 04, 2009 2:52 pm
Forum: Investing - Theory, News & General
Topic: Multigeneration family investment planning?
Replies: 30
Views: 5235

kaneohe While the original owner of the Roth is not subject to RMDs, those who inherit them are and will have to pay income taxes on them. The first part is correct, the second is not. There are no taxes on distributions on Roth IRAs, from your link: A beneficiary would be well-advised to try take ...
by kaneohe
Sun Jan 04, 2009 8:46 am
Forum: Investing - Theory, News & General
Topic: Multigeneration family investment planning?
Replies: 30
Views: 5235

Part of our strategy is to convert all of our retirement funds to Roths by age 70-1/2. If we have anything left over for our sons, they'll never have to pay income tax on their inheritance. . While the original owner of the Roth is not subject to RMDs, those who inherit them are and will have to pa...
by kaneohe
Sat Jan 03, 2009 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: traditional ira deductible and nondeductible ira same time?
Replies: 4
Views: 1201

Re: traditional ira deductible and nondeductible ira same ti

LH wrote: 3)If I use a regular IRA(I do not meet roth requirement) and deduct it, can I then also use a non deductible IRA as well?
LH
You could.....but the sum of your contributions to both cannot exceed the maximum allowed to either one.
by kaneohe
Sat Jan 03, 2009 2:49 am
Forum: Personal Finance (Not Investing)
Topic: How do I liquidate my Parents' Stocks?
Replies: 27
Views: 4651

Power of Attorney is a touchy subject. I'm already looking at his statements, so he's part-way there. However, he's very protective of giving control of his finances. There hasn't been any "catastrophe" to show that he's not being responsible. . You might talk to the institutions about alternatives...
by kaneohe
Fri Jan 02, 2009 8:07 pm
Forum: Investing - Theory, News & General
Topic: Changing method for TLH
Replies: 4
Views: 1179

My understanding is the same as dbr.....the default assumed is FIFO unless you specify otherwise. You can switch methods but once you use average cost, you cannot switch to FIFO or specific shares. The reverse is not true.
by kaneohe
Fri Jan 02, 2009 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: How do I liquidate my Parents' Stocks?
Replies: 27
Views: 4651

Do they need the funds for their support now? If not and you sold after their passing, you would get a stepup in basis and pay less or no taxes. Can you get power of attorney so that statements come to you instead?
by kaneohe
Fri Jan 02, 2009 12:33 pm
Forum: Investing - Theory, News & General
Topic: IRA questions
Replies: 9
Views: 1762

Re: IRA questions

A: All your traditional IRAs are considered pooled together when you do a Roth conversion. If you have a mix of pretax and post-tax (deductible/non-deductible) traditional IRAs some proportion of each conversion will be taxed. Calculation will be based on the 8606 forms. Even if you convert an IRA ...
by kaneohe
Fri Jan 02, 2009 12:54 am
Forum: Investing - Theory, News & General
Topic: IRA questions
Replies: 9
Views: 1762

Re: IRA questions

Q: My 401k is maxed out every year. If I contribute money to a traditional IRA, out of post-tax income, is that money eventually going to be taxed (again) when I withdraw it? A: not supposed to be taxed again Q: If the answer to the previous question is no, is the custodian supposed to keep track o...
by kaneohe
Wed Dec 31, 2008 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: estate planning with stocks
Replies: 17
Views: 3243

However, if anyone can just explain this one, I would appreciate it: Q2) Our lawyer had us put spouse as beneficiary and secondary beneficary as "my estate". what does "my estate" mean. As I see it, 401ks, bank etc don't go through probate. By listing "my estate", it will go through will => probate...
by kaneohe
Tue Dec 30, 2008 6:49 pm
Forum: Investing - Theory, News & General
Topic: How Much To Tax Loss Harvest???
Replies: 4
Views: 1205

Here's another educational thread which suggests that benefits of TLH depend on your particular situtation and may not be a benefit under certain conditions:
http://www.bogleheads.org/forum/viewtop ... hlight=tlh
by kaneohe
Tue Dec 30, 2008 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: estate planning with stocks
Replies: 17
Views: 3243

I would recommend going to the library and borrowing a book on estate planning. The books in the Dummy/Idiots series are quite good on providing a basic background for many topics.
If they have one on this subject, it will probably be very useful.
by kaneohe
Mon Dec 29, 2008 10:35 am
Forum: Investing - Help with Personal Investments
Topic: How Does Roth Recharacterization Work?
Replies: 3
Views: 963

I think what I have learned from previous threads here is that next time when you convert, you should convert into a separate Roth account. That way if you have to recharacterize, only that account will be considered and you will be able to do what you intended to do. If you do multiple conversions ...
by kaneohe
Sun Dec 28, 2008 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: Am I Counting my Days correctly for tax harvesting?
Replies: 16
Views: 2397

Kaneohe- I bought my taxable fund in 2003 with money received from my late parents estate. All distributions were directed to my Money Market fund at TIAA-CREF and I have paid the tax on them. This fund is very tax efficient and is good for a taxable fund. TIAA-CREF merged my fund with their Instit...
by kaneohe
Sun Dec 28, 2008 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Am I Counting my Days correctly for tax harvesting?
Replies: 16
Views: 2397

I'm just curious, I have held this fund since 2003, what would be my capital gains tax on this taxable fund if I decided not to buy it back. I sold on 1 Dec and the dollar amount was 21,643.00 ?? Would I pay 10% or 15% Long term capital gains tax?? I'm in the 15% tax bracket. Obviously using the ca...
by kaneohe
Sun Dec 28, 2008 9:27 am
Forum: Investing - Help with Personal Investments
Topic: Am I Counting my Days correctly for tax harvesting?
Replies: 16
Views: 2397

If things really are as you say......20K TLH, no capital gains, 15% bracket......... you will deduct 3K against ordinary income, and pay 15% less in taxes against that 3K or save $450 in taxes this year. The loss carryover to future years is 17K. It is fortunate that you have no capital gains from o...
by kaneohe
Sat Dec 27, 2008 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: TLH Question, does it always make sense?
Replies: 10
Views: 2140

OP might want to read this thread also since benefits of TLH will depend on individual situtation
http://www.bogleheads.org/forum/viewtop ... hlight=tlh
by kaneohe
Sat Dec 27, 2008 10:19 am
Forum: Investing - Help with Personal Investments
Topic: Yet Another Tax Loss Harvesting Question
Replies: 8
Views: 1692

It should be easier to do than to explain to VG what you want them to do. Ex: you hold 1000 shares 6 mos. before you sell. End of June you reinvest 1 share worth $3. End of July you receive $3 dividend. Part of that is due to the 1 share you got end of June. The rest is due to the older 1000 shares....
by kaneohe
Sat Dec 27, 2008 9:43 am
Forum: Investing - Help with Personal Investments
Topic: another $5000 in traditional IRA question v. Roth IRA
Replies: 4
Views: 889

Especially this late in the yr, can't you just wait to see what your taxes turn up, and then recharacterize as a Roth (perhaps partially) then.

http://www.fairmark.com/rothira/rcrules.htm
by kaneohe
Fri Dec 26, 2008 11:39 pm
Forum: Investing - Help with Personal Investments
Topic: Yet Another Tax Loss Harvesting Question
Replies: 8
Views: 1692

Someone asked a similar question here: http://fairmark.com/forum/read.php?3,35378 You might take a look....if you're reinvested dividends, it involves figuring out how much of the dividends (tax exempt interest) came from shares held 6 mos. or less....the quantity of those shares increases each mo. ...
by kaneohe
Fri Dec 26, 2008 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Help
Replies: 9
Views: 1987

Thanks for the replies. No other capital gains, except distributions from funds. No plans to sell anything anytime soon as they are retirement savings with a 20+ years time horizon. I have 6% state income tax, and it based on federal adjusted gross income. So I should have additonal savings for sta...
by kaneohe
Fri Dec 26, 2008 10:04 am
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Help
Replies: 9
Views: 1987

incorrect response edited out

incorrect response edited out

see SL thread response below for correct answer