Search found 4586 matches

by kaneohe
Mon Jan 22, 2018 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Do my wife and I need POA's if we live in community property state?
Replies: 4
Views: 372

Re: Do my wife and I need POA's if we live in community property state?

You can also use POA to manage spouse's IRA/401K if spouse is not interested in financial details.
by kaneohe
Mon Jan 22, 2018 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Cost Basis for Roth IRA
Replies: 11
Views: 727

Re: Cost Basis for Roth IRA

I took a distribution on my Roth older than 5 years. Tax form is asking for basis . I made many conversions in prior years and would have to look thru many tax returns. Is there an easier way I hope What line of what specific tax form is asking for the basis? In general, the basis of a Roth IRA is ...
by kaneohe
Sun Jan 21, 2018 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth with Existing Traditional IRAs
Replies: 11
Views: 997

Re: Backdoor Roth with Existing Traditional IRAs

................................................ In my case, we've been considering rolling my rollover IRAs to my 401k, making the traditional IRA to Roth conversion, paying the tax on traditional IRA earnings and then returning the rollover IRAs to Schwab because of superior investment options. A...
by kaneohe
Sun Jan 21, 2018 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Can Roth conversions count as RMDs?
Replies: 27
Views: 1831

Re: Can Roth conversions count as RMDs?

Isn't the theory on this that generally the best time to try and do conversions is after 59.5 and up to 70.5 (i.e. after withdrawal without penalty and before RMD), so long as the amounts withdrawn (to be converted) are such that they do not take you to an unacceptably higher income tax bracket? .....
by kaneohe
Sat Jan 20, 2018 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Schwab vs fidelity
Replies: 25
Views: 2357

Re: Schwab vs fidelity

To the OP -- You can first rollover to a Fidelity IRA, and then do an IRA to IRA transfer, as a previous poster suggested. It's fairly simple. Both Fido and Schwab allow you to sell funds without transaction fees, so you can setup a proper asset allocation in either. Just bear in mind that you are ...
by kaneohe
Sat Jan 20, 2018 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA with basis Form 8606 TaxAct
Replies: 5
Views: 433

Re: Inherited IRA with basis Form 8606 TaxAct

Does TaxAct allow you to override entries on the forms (which could be dangerous if not used properly). If so , could you calculate the taxable part of the distribution separately and then enter that in line 15b of the 1040. Be sure the total distribution is in 15a. Since there is a discrepancy betw...
by kaneohe
Fri Jan 19, 2018 10:00 pm
Forum: Personal Finance (Not Investing)
Topic: Money Chimp has a Tax Calculator that figures QDI for Tax year 2018
Replies: 11
Views: 1610

Re: Money Chimp has a Tax Calculator that figures QDI for Tax year 2018

Both Taxcaster and the HR Block tax calculators calculate the 2017 taxes and at the end also show the 2018 results. Surprisingly both Taxcaster and HR Block agree w/ each other for both yrs..............but 2018 is lower than 2017 in the example I tried. edit to clarify wording of previous response.
by kaneohe
Fri Jan 19, 2018 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Qualified Dividends Chevron
Replies: 8
Views: 511

Re: Qualified Dividends Chevron

In previous years put full amount on line 9a Form 1040 from 1099 form 1a (Total Ordinary Dividends) and left line 9b Form 1040 blank even though 1099 box 1b (Qualified Dividends) shows same amount as box 1099 1a. Like many am always learning which is what I appreciate about the BH community.. Did I...
by kaneohe
Fri Jan 19, 2018 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Qualified Dividends Chevron
Replies: 8
Views: 511

Re: Qualified Dividends Chevron

You are the victim of what I consider to be very poor naming by IRS.........I think box 1 should be called Total Dividends to avoid the trap you fell into. Why they had to add that "ordinary" term escapes me. Some payments which look like dividends are not dividends at all, and thus are taxed diffe...
by kaneohe
Fri Jan 19, 2018 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Qualified Dividends Chevron
Replies: 8
Views: 511

Re: Qualified Dividends Chevron

You are the victim of what I consider to be very poor naming by IRS.........I think box 1 should be called Total Dividends to avoid the trap you fell into. Why they had to add that "ordinary" term escapes me. Chevron's dividends are qualified which you will see on the 1099-DIV. Qualified dividends a...
by kaneohe
Fri Jan 19, 2018 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Federal tax estimator that includes Social Security income?
Replies: 21
Views: 2443

Re: Federal tax estimator that includes Social Security income?

Yes, looks like Intuit updated Taxcaster for 18. You input your info and it spits out 2 numbers--17 and 18 tax liabilities. Can we assume that Intuit is reputable enough that their 18 forecast is accurate based on the reform? According to it, I'm looking at saving about 17K off my tax bill next yea...
by kaneohe
Fri Jan 19, 2018 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Money Chimp has a Tax Calculator that figures QDI for Tax year 2018
Replies: 11
Views: 1610

Re: Money Chimp has a Tax Calculator that figures QDI for Tax year 2018

Both Taxcaster and the HR Block tax calculators calculate the 2017 taxes and at the end also show the 2018 results. Surprisingly both Taxcaster and HR Block get the same answers for both yrs.
by kaneohe
Thu Jan 18, 2018 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Lifetime learning tax credit..whats the catch?
Replies: 14
Views: 1047

Re: Lifetime learning tax credit..whats the catch?

marcopolo wrote:
Thu Jan 18, 2018 10:13 pm
Also look into the AOTC. If you are eligible, It often works out better than the Lifetime learning credit.
OP is talking about graduate courses so likely not eligible for AOTC.
by kaneohe
Thu Jan 18, 2018 7:28 pm
Forum: Investing - Help with Personal Investments
Topic: Does my rollover IRA count for pro-rata calculations?
Replies: 13
Views: 535

Re: Does my rollover IRA count for pro-rata calculations?

Spirit Rider wrote:
Thu Jan 18, 2018 7:16 pm
TomatoTomahto wrote:
Thu Jan 18, 2018 6:55 pm
Yes. All traditional IRAs are combined for this purpose.
Make that all pre-tax balances in all traditional, SEP and SIMPLE IRAs.
Why only pre-tax balances? What there were basis in other TIRAs?
by kaneohe
Thu Jan 18, 2018 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Deducting less than actually paid
Replies: 2
Views: 508

Re: Deducting less than actually paid

https://www.irs.gov/pub/irs-pdf/i1040sca.pdf from pg. A3 of Sch A instructions: The instructions seem to tell you what things to do and also what not to do. "Line 5 .............................. State and Local Income Taxes ................ Include on this line the state and local income taxes lis...
by kaneohe
Tue Jan 16, 2018 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Accidentally made direct Roth IRA contribution
Replies: 10
Views: 1248

Re: Accidentally made direct Roth IRA contribution

................................................ What does it mean that the earnings are calculated using the Roth IRA? Say my Roth IRA is up 50% overall. Does that mean that $5500 comes out and gets put in the nondeductible traditional IRA as basis, and $2750 comes out and put in there as earnings...
by kaneohe
Mon Jan 15, 2018 7:35 pm
Forum: Personal Consumer Issues
Topic: Will IRS make paper tax forms available?
Replies: 23
Views: 1465

Re: Will IRS make paper tax forms available?

I remember the good old days when you could order them during Xmas break and they would be delivered in mid-Jan or so. The last few yrs when I order them the 1st wk in January, right after I give up hope and re-order them in late Feb, they get delivered in early March. Be interested to know how you...
by kaneohe
Mon Jan 15, 2018 10:45 am
Forum: Personal Consumer Issues
Topic: Will IRS make paper tax forms available?
Replies: 23
Views: 1465

Re: Will IRS make paper tax forms available?

1) irs.gov
2) forms/instructions (upper right hand side)
3) order forms/pubs (left hand side)
4) forms/pubs by US mail (see search box in middle of page)
by kaneohe
Sun Jan 14, 2018 11:52 pm
Forum: Personal Consumer Issues
Topic: Will IRS make paper tax forms available?
Replies: 23
Views: 1465

Re: Will IRS make paper tax forms available?

I remember the good old days when you could order them during Xmas break and they would be delivered in mid-Jan or so. The last few yrs when I order them the 1st wk in January, right after I give up hope and re-order them in late Feb, they get delivered in early March. Be interested to know how your...
by kaneohe
Sun Jan 14, 2018 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Rolling old Roth IRAs to 529s
Replies: 22
Views: 834

Re: Rolling old Roth IRAs to 529s

Can you just use the Roth IRA for college tuition? If it happens you have enough to pay for college by other means then you haven’t overcomitted to your 529s. Blue man depends on circumstances.........if this little Roth is their only Roth, the earnings if withdrawn early are subject to both tax an...
by kaneohe
Sun Jan 14, 2018 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Rolling old Roth IRAs to 529s
Replies: 22
Views: 834

Re: Rolling old Roth IRAs to 529s

Can you just use the Roth IRA for college tuition? If it happens you have enough to pay for college by other means then you haven’t overcomitted to your 529s. Blue man depends on circumstances.........if this little Roth is their only Roth, the earnings if withdrawn early are subject to both tax an...
by kaneohe
Sun Jan 14, 2018 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Rolling old Roth IRAs to 529s
Replies: 22
Views: 834

Re: Rolling old Roth IRAs to 529s

Can you just use the Roth IRA for college tuition? If it happens you have enough to pay for college by other means then you haven’t overcomitted to your 529s. Blue man depends on circumstances.........if this little Roth is their only Roth, the earnings if withdrawn early are subject to both tax an...
by kaneohe
Sun Jan 14, 2018 10:42 am
Forum: Investing - Help with Personal Investments
Topic: How to fix Roth IRA over-contribution? Not eligible for backdoor
Replies: 10
Views: 427

Re: How to fix Roth IRA over-contribution? Not eligible for backdoor

Yes, you can withdraw the contribution. You will have to make it clear that you are withdrawing current yr contributions. The custodian should then return that and associated earnings . You will be taxed on earnings at your usual tax rate and perhaps a 10% additional penalty. http://fairmark.com/ret...
by kaneohe
Sun Jan 14, 2018 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Funding 529s and retirement from taxable investment accounts
Replies: 11
Views: 851

Re: Funding 529s and retirement from taxable investment accounts

If you have a taxable acct w/ little gain, seems like it would be more tax-efficient to put in a more tax-efficient account. Both taxable and Roth/529 get no tax breaks for the contribution. However after that, both Roth/529 aren't taxed on withdrawals (if rules followed) while taxable is taxed on C...
by kaneohe
Sun Jan 14, 2018 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Rolling old Roth IRAs to 529s
Replies: 22
Views: 834

Re: Rolling old Roth IRAs to 529s

Why not roll these old Roths to your current Roth IRA? You can certainly pull out the contributions tac and penalty free and put in a 529. If you get a state tax deduction it might make sense to do so. With a significant time delay, Nete79's post yesterday, reminded me that I had forgotten an impor...
by kaneohe
Sat Jan 13, 2018 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Rolling old Roth IRAs to 529s
Replies: 22
Views: 834

Re: Rolling old Roth IRAs to 529s

Here's one viewpoint: https://www.kiplinger.com/article/retirement/T002-C001-S001-transfer-roth-funds-to-a-529.html Doesn't sound there's a magic door to move the funds from Roth to 529 plan so given your ages, you'll be taxed and penalized on the earnings(do you even know how much are earnings/cont...
by kaneohe
Sat Jan 13, 2018 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion confusion
Replies: 28
Views: 1274

Re: Roth conversion confusion

You will be 70.5 in June of 2020 so 2020 is the first year of your RMD. As I understand it, you get a "grace period" your first year so you could theoretically delay that payment until April 15 of 2021. I don't recommend it because that means you have to take 2 RMDs in the same tax year (2021). Whe...
by kaneohe
Sat Jan 13, 2018 11:08 am
Forum: Personal Finance (Not Investing)
Topic: What forms are required to support a Qualified Charitable Distribution?
Replies: 5
Views: 253

Re: What forms are required to support a Qualified Charitable Distribution?

1) Don't know about VG but my broker send the checks to me along w/ a list of the checks listing payee and amount. The checks have attached to each a form w/ similar info. 2) The QCD can be simultaneously a QCD and RMD so it is good to do them "early" before the RMD is satisfied. If you satisfy the ...
by kaneohe
Fri Jan 12, 2018 9:52 am
Forum: Personal Finance (Not Investing)
Topic: When does IRA contribution limit increase?
Replies: 5
Views: 540

Re: When does IRA contribution limit increase?

From Pub 590A p.6: "Example. Kristin, a full-time student with no taxable compensation, marries Carl during the year. Neither of them was age 50 by the end of 2016. For the year, Carl has taxable compensation of $30,000. He plans to contribute (and deduct) $5,500 to a traditional IRA. If he and Kris...
by kaneohe
Fri Jan 12, 2018 1:46 am
Forum: Personal Finance (Not Investing)
Topic: Deduct wife's TIRA if I'm contributing to my 401k (filing jointly)
Replies: 3
Views: 263

Re: Deduct wife's TIRA if I'm contributing to my 401k (filing jointly)

Not sure which yr you are referring to (2017 or 2018) but if you really want the tax deduction for TIRA, you could alway recharacterize part of your Roth contribution once you figure out , how much will be deductible for your income situation. If for 2017, the normal deadline would be tax filing dat...
by kaneohe
Fri Jan 12, 2018 1:04 am
Forum: Personal Finance (Not Investing)
Topic: Deduct wife's TIRA if I'm contributing to my 401k (filing jointly)
Replies: 3
Views: 263

Re: Deduct wife's TIRA if I'm contributing to my 401k (filing jointly)

This might be a more appropriate table if you are making a spousal contribution for your non-working wife. https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-not-covered-by-a-retirement-plan-at-work The income limits are higher. The table yo...
by kaneohe
Thu Jan 11, 2018 8:15 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth with AGI within phase out limits
Replies: 9
Views: 792

Re: Backdoor Roth with AGI within phase out limits

Yes,with the backdoor Roth for the full amount you are doing a Roth conversion, not a contribution, so there is no limit on how much you can convert. You could do it the other way too..........direct Roth contribution to max allowed and do the rest of contribution to TIRA and convert that but that s...
by kaneohe
Thu Jan 11, 2018 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: roth recharacterization - think I made a mistake?
Replies: 2
Views: 193

Re: roth recharacterization - think I made a mistake?

Sounds correct to me.........there are 2 types of recharacterizations: you are probably thinking of recharacterizing a conversion from TIRA to Roth. You can also recharacterize a contribution either from Roth to TIRA or from TIRA to Roth if you change your mind for a variety of reasons......this sou...
by kaneohe
Wed Jan 10, 2018 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Contributions
Replies: 2
Views: 401

Re: Roth IRA Contributions

I have usually maxed out 401K with employer matching and then decided on a year by year basis whether there were funds to contribute to Roth IRAs. Consequently, funds in our Roth's at present only make up a few percent of our portfolio and we would like to increase that by contributing more from no...
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: 390

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: 3267

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: 326

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: 145
Views: 6082

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: 237

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: 1679

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: 31741

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: 3267

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: 460

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: 3267

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: 3267

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: 3267

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: 1018

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: 419

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...