Search found 1274 matches

by cas
Mon Apr 19, 2021 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Overcontribution - What do I need to do on this year's return
Replies: 8
Views: 348

Re: Roth Overcontribution - What do I need to do on this year's return

I accidentally overcontributed to my Roth last year. I removed the overcontribution in January of this year. I understand I will receive a 1099-R for the 2021 tax year. What do I need to do on 2020's tax return -- anything? I'm guessing that when you say you "removed" the contribution and...
by cas
Fri Apr 16, 2021 8:33 am
Forum: Personal Investments
Topic: Is it worth it to continuously rollover HSA to another provider
Replies: 12
Views: 796

Re: Is it worth it to continuously rollover HSA to another provider

Optum Pros: -Expense Journal and Receipt Bank where I can save receipts and document expenses without withdrawing the money. This is a pretty big perk that I do not know if Fidelity provides. I've never had an Optum account, so I don't know exactly how this feature is set up. Maybe it is really eas...
by cas
Thu Apr 15, 2021 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2804

Re: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)

Do retail tax programs actually ask for recharacterization info to make the adjustment? Input requested. I do have to admit to some morbid curiosity as to the answer to this question from Alan S. Somehow seems that if the retail programs were actually doing the appropriate post-recharacterization a...
by cas
Thu Apr 15, 2021 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2804

Re: Moron of the year award goes to me: need help with rechar/pro rata Roth stuff

cas , if you don’t object to line 1 (recharacterized basis being reported on line 1), how can you object to line 6 (recharacterized basis and growth being reported on line 6)? I probably should have kept my mouth shut, since I'm not qualified to say anything about Section 1 of Form 8606. Never had ...
by cas
Thu Apr 15, 2021 9:57 am
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2804

Re: Moron of the year award goes to me: need help with rechar/pro rata Roth stuff

Thanks; it looks like the Vanguard tax experts didn't handle it at all. I only got one 5498 last summer for 2019, for my main Roth IRA, showing its balance and the $7000 Roth contributions (this (plus the $2300 earnings, grand total $9300) is what I recharacterized in February 2020). I didn't recei...
by cas
Thu Apr 15, 2021 8:44 am
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2804

Re: Moron of the year award goes to me: need help with rechar/pro rata Roth stuff

Your FMV on December 31, 2020 is just that. Your recharacterization will not change that. So the question now is, what should your 2020 Form 8606 look like? I am showing each line with what you likely show now and what it will be after you recharacterize. This assumes you recharacterize $4,000 (plu...
by cas
Thu Apr 15, 2021 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Calling all CPA's
Replies: 22
Views: 1878

Re: Calling all CPA's

So I do have multiple streams of income; retirement, dividends, SS, rental property. All my income combined will be under $321,450 (after the conversion and sale of stock - $150,000 in total) So my interpretation of the image is that the income tax bracket will be 24% and the capital gains tax will...
by cas
Thu Apr 15, 2021 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Calling all CPA's
Replies: 22
Views: 1878

Re: Calling all CPA's

All my income combined will be under $321,450 (after the conversion and sale of stock - $150,000 in total) Do you need to take IRMAA into account? (Do you and/or spouse buy Medicare Pt B and/or D?) Working backwards, it looks like your typical income (no Roth conversion, no sale of stock to pay tax...
by cas
Wed Apr 14, 2021 10:48 am
Forum: Personal Investments
Topic: Suggestions for 70 year old Retiree
Replies: 11
Views: 1512

Re: Suggestions for 70 year old Retiree

Tax Filing Status: Single Retirement (Annual) Income: Social Security: $27,000 Pensions (5): $22,500 RMD: $21,000 2. Any other thoughts on tax efficient portfolio set-up or activities? Are you familiar with the social security tax hump ? It can take a while to wrap your mind around, but look at the...
by cas
Wed Apr 14, 2021 10:30 am
Forum: Personal Investments
Topic: Suggestions for 70 year old Retiree
Replies: 11
Views: 1512

Re: Suggestions for 70 year old Retiree

Questions: She [. . .] isn't touching her RMD's. Can the RMD (or a portion) be transferred to her Roth vs Taxable? No, RMDs can't go into Roth. [. . .]We talked last weekend about DAF's [. . .] Since she is older than 70 1/2, and since she isn't using the RMDs, and since charitable contribution is ...
by cas
Wed Apr 14, 2021 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Calling all CPA's
Replies: 22
Views: 1878

Re: Calling all CPA's

Could you explain what you mean by: This increases the marginal rate you are paying on the Roth conversion? Marginal tax rates can get really odd (and unexpectedly high at points) for some/many retirees in some income ranges, including, possibly, depending on exact circumstances: interaction of inc...
by cas
Wed Apr 14, 2021 8:17 am
Forum: Personal Finance (Not Investing)
Topic: 1099-INT from the IRS
Replies: 13
Views: 1464

Re: 1099-INT from the IRS

Is the 1099-INT from the IRS taxable by states ? Is it considered a Federal Government obligation that is not taxable, like Treasuries ? It was taxable in my state. I suppose your state could differ. At the very least, for me it was in the instructions for the state income tax return, for the sched...
by cas
Tue Apr 13, 2021 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Physician paying estimated taxes for the first time
Replies: 11
Views: 763

Re: Physician paying estimated taxes for the first time

Gotcha. So basically my current withholding is insufficient and my options are to talk to my HR and up my withholding or file quarterly taxes payments. That's very helpful, thank you! I'll cut a check and get it in the mail today. Note that the 4/15 deadline doesn't apply to withholding. Just to es...
by cas
Tue Apr 13, 2021 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Physician paying estimated taxes for the first time
Replies: 11
Views: 763

Re: Physician paying estimated taxes for the first time

Short answer: No, withholding isn't necessarily automatically sufficient. You either need to increase withholding or pay estimated taxes if you don't want to owe an underpayment penalty next year. In your situation, most people would choose to fiddle with withholding. There are lots of other people ...
by cas
Mon Apr 12, 2021 9:48 am
Forum: Investing - Theory, News & General
Topic: Vanguard Portfolio Watch has a new look
Replies: 101
Views: 8362

Re: Vanguard Portfolio Watch has a new look

Does anyone know how to delete an unwanted Group in the new Portfolio Watch? In the "Select an Account Group" pulldown menu in the new Portfolio Watch, select "View/Modify Account Grouping". (Yes, this option is mixed in with the actual account group names.) Selecting that optio...
by cas
Sun Apr 11, 2021 1:47 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Portfolio Watch has a new look
Replies: 101
Views: 8362

Re: Vanguard website revamp

The new Portfolio Watch bond issue is discussed, among other topics, in the consolidated thread on new Portfolio Watch.
by cas
Sat Apr 10, 2021 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Incorrect Tax Calculation by IRS FreeFile [or Excel1040.com]
Replies: 9
Views: 657

Re: Incorrect Tax Calculation by IRS FreeFile

Did your income perhaps include a significant amount of long term capital gains that it doesn't usually include? (Or qualified dividends, but those are usually more steady year-to-year, except in cases of inheritance or other windfall.) If it did, the tax tables aren't used to calculate the tax. (Th...
by cas
Sat Apr 10, 2021 9:00 am
Forum: Personal Finance (Not Investing)
Topic: capital gains taxes need to be paid in quarter they occur?
Replies: 6
Views: 740

Re: capital gains taxes need to be paid in quarter they occur?

So, if I pay more than 110% of the 2020 taxes, the timing of the payments doesn't matter? If you reach 110% of 2020 taxes via * withholding * (estimated tax payments NOT included), then timing doesn't matter. This is accomplished on page 1 of Form 2210. If you want to reach 110% of 2020 taxes via w...
by cas
Fri Apr 09, 2021 9:57 am
Forum: Investing - Theory, News & General
Topic: Vanguard Portfolio Watch has a new look
Replies: 101
Views: 8362

Re: Vanguard Portfolio Watch has a new look

Just happened to look at Portfolio Watch this morning (curiosity). It reports that I have 16% in international bonds but the only funds I hold that have any non-US bonds is Investment Grade (short and intermediate) and the fund report shows that international is < 5% for those funds alone; my total...
by cas
Thu Apr 08, 2021 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2804

Re: desperately seeking help understanding Form 8606 on 2020 tax filing (ROTH recharacterization/conversion issues)

I like the idea of including a note (I imagine he might push back on this) to explain it all. The instructions for form 8606 -> Recharacterizations -> Reporting Recharacterizations -> "2" specify the words/information that needs to go in the statement, if there needs to be one. The same p...
by cas
Thu Apr 08, 2021 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: So when are taxes actually due?
Replies: 5
Views: 1000

Re: So when are taxes actually due?

*If* you did not meet a safe harbor for 2020 (via one of the many methods for determining whether you underpaid withheld/estimated taxes for any particular quarter) ... ...then you have been accumulating penalty, such as it is, daily since the due date for the quarter when you first underpaid. Delay...
by cas
Thu Apr 08, 2021 10:50 am
Forum: Investing - Theory, News & General
Topic: Vanguard Portfolio Watch has a new look
Replies: 101
Views: 8362

Re: Vanguard Portfolio Watch has a new look

Portfolio Watch shows our IRAs having 76% U.S. bonds and 24% international bonds. The only fixed income holding is VFIDX. It has less than 5% foreign holdings. [ . . . ]The only other possibility I can think of to explain the disparity is U.S. Dollar denominated bonds of foreign companies are liste...
by cas
Tue Apr 06, 2021 2:29 pm
Forum: Personal Investments
Topic: Need Advice on starting a Health Savings Account
Replies: 8
Views: 463

Re: Need Advice on starting a Health Savings Account

Usually if health insurance is HSA-eligible, that is printed prominently on the health insurance card (and in the benefits enrollment info.) You may want to read this blog post by forum poster tfb (The Finance Buff): Not All High Deductible Plans Are HSA Eligible If none of that sounds familiar, the...
by cas
Tue Apr 06, 2021 1:15 pm
Forum: Personal Investments
Topic: Pay IRS Estimated Payments?
Replies: 10
Views: 1186

Re: Pay IRS Estimated Payments? (Update)

Should TurboTax have caught the penalty? (FYI, 2020 was my first full year of retirement and zero employer earnings.) There is an "Underpayment Penalty" topic, somewhere late in the Turbotax process, that you need to click on. It tells you whether there is a possible underpayment penalty ...
by cas
Tue Apr 06, 2021 1:04 pm
Forum: Personal Investments
Topic: Pay IRS Estimated Payments?
Replies: 10
Views: 1186

Re: Pay IRS Estimated Payments?

Unless you filed Form 2210 Schedule AI with your 2020 return, the IRS assumes that your income was spread evenly throughout the year. So you likely have underpayment penalty due to not meeting any safe harbor for the 1st 3 quarters of the year, after the 25% of the December conversion was assigned t...
by cas
Tue Apr 06, 2021 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Old employer closed my 401K and withheld taxes
Replies: 16
Views: 1701

Re: Old employer closed my 401K and withheld taxes

Regardless, doing a 60-day rollover to an IRA is likely what you want to do now. That's the process for getting your money into the IRA and your taxes back (when you next file, unless you reduce your withholding in other ways). I am perhaps reading between the lines here, but I think the issue migh...
by cas
Tue Apr 06, 2021 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Old employer closed my 401K and withheld taxes
Replies: 16
Views: 1701

Re: Old employer closed my 401K and withheld taxes

Did you have a pretty small balance in the 401(k)? Why? Because, when someone leaves an employer, it is standard practice for employers to close out a 401(k) account below some balance specified in the legal/tax/somewhere code (used to be $5000; don't know if it still is). If it is above that amoun...
by cas
Tue Apr 06, 2021 7:14 am
Forum: Personal Investments
Topic: Roth IRA account mysteriously disapeared from account on Vanguard.com?
Replies: 6
Views: 812

Re: Roth IRA account mysteriously disapeared from account on Vanguard.com?

From what you are describing ... sometime since you last did something with the Roth IRA, did you or your wife perhaps convert/"upgrade" an old-platform mutual fund account-style Roth IRA to the new-platform brokerage account-style Roth IRA? But .. that aside ... to get at your issue of ne...
by cas
Mon Apr 05, 2021 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Changing Roth IRA contribution to traditional IRA (deductible) contribution
Replies: 4
Views: 251

Re: Changing Roth IRA contribution to traditional IRA (deductible) contribution

"How do I recharacterize Roth contributions?" article posted at the top of the Vanguard Tax Center page after you log in. (Apparently the question gets asked a lot.)

https://investor.vanguard.com/ira/ira-r ... terization
by cas
Sun Apr 04, 2021 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Safe Harbor - Do Estimated Tax Payments Count?
Replies: 10
Views: 1192

Re: Safe Harbor - Do Estimated Tax Payments Count?

Yes and no. The simplest versions of safe harbor, on page 1 of Form 2210, which look at the whole year at once, include withholding only. The progressively more complex versions of figuring whether you owe an underpayment penalty, on pages 2-4 of Form 2210, include both withholding and estimated tax...
by cas
Sun Apr 04, 2021 6:56 am
Forum: Personal Finance (Not Investing)
Topic: Will I be getting a 1099-R for small gains from Roth IRA contribution/withdrawals?
Replies: 2
Views: 356

Re: Will I be getting a 1099-R for small gains from Roth IRA contribution/withdrawals?

It sounds like you did a "return of contribution" (not a "recharacterization"?) *in* 2021 *for* a 2020 Roth contribution? And, since you refer to contributions in the plural and list two earnings, probably for you and your spouse? Tax-reporting on that gets a bit confusing and re...
by cas
Sun Apr 04, 2021 6:30 am
Forum: Personal Finance (Not Investing)
Topic: Odd -(probably boneheaded) Tax question
Replies: 22
Views: 2226

Re: Odd -(probably boneheaded) Tax question

https://www.kitces.com/blog/long-term-capital-gains-bump-zone-higher-marginal-tax-rate-phase-in-0-rate/ In addition to the Kitces article, many bogleheads have found this tax visualizer useful for understanding how ordinary income can interact with qualified dividend/long-term capital gain income t...
by cas
Sat Apr 03, 2021 11:04 am
Forum: Personal Investments
Topic: Roth Ira
Replies: 11
Views: 771

Re: Roth Ira

You can "recharacterize" the contribution *or* request a "return of contribution" . Which one is better in your particular situation depends on 1. Whether you/your wife have any existing traditional IRAs of any type (tIRA, rollover, SEP, SIMPLE) and are/are not able to follow up ...
by cas
Sat Apr 03, 2021 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax Credit - TaxAct help
Replies: 29
Views: 892

Re: Foreign Tax Credit - TaxAct help

In addition to the pdf that livesoft linked, the relevant Vanguard Tax Center page for investors (as opposed to advisors) has this additional paragraph giving instructions on how to use the worksheet, combined with the 1099-DIV: Foreign tax credit information View foreign tax credit information for ...
by cas
Fri Apr 02, 2021 4:05 pm
Forum: Personal Investments
Topic: American Funds 401K Wife new Job
Replies: 15
Views: 708

Re: American Funds 401K Wife new Job

His salary: 115K + 10% bonus Her salary: 90K +7.5% Bonus His Roth IRA: 47K Her Roth IRA: 48K His IRA - 80K Just to have on your radar... I didn't calculate it all out***, but with your wife's new job (a good thing!), you might want to have this on your radar: -You are likely in the vicinity of the ...
by cas
Fri Apr 02, 2021 12:17 pm
Forum: Personal Investments
Topic: Portfolio advice and exiting taxable positions
Replies: 13
Views: 815

Re: Portfolio advice and exiting taxable positions

Since I think you are indicating that you are used to dealing with a $116K AGI, and realizing any cap gains (or switching from trad 401k to Roth 401k) would increase that... Be aware that... 1. Your ability to contribute directly to a Roth IRA starts phasing out at $125K AGI single. (The backdoor Ro...
by cas
Fri Apr 02, 2021 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Refile 2020 1040 for $15.00 1099R income mistake?
Replies: 10
Views: 1449

Re: Refile 2020 1040 for $15.00 1099R income mistake?

Welcome to posting on the forum. Is the Box 1 amount on the 1099-R (considerably) more than $15? (It is just the Box 2a "Taxable Amount" that is $15?) There have been several posts on these forums on recent weeks from people who got a CP2000 letter from the IRS because they forgot to inclu...
by cas
Thu Apr 01, 2021 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Nd help deciphering my mother's intentions in re: Series EE Savings Bonds in my mother's Safety Deposit Box
Replies: 19
Views: 1679

Re: Nd help deciphering my mother's intentions in re: Series EE Savings Bonds in my mother's Safety Deposit Box

If you set up a 529 with your mother as the beneficiary, and she meets the other conditions for the tax exclusion, she could cash the EE bonds and use the proceeds to make a contribution to the 529 without owing taxes on the interest. Now the funds are locked inside a 529 in your mother's name. (30...
by cas
Thu Apr 01, 2021 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA over-contribution
Replies: 7
Views: 396

Re: Roth IRA over-contribution

On the loss concept - this is the reason for my assumption that the removal of the contribution would be a "wash" - only the over-contribution would be coming out - no gain or loss. (But I have no idea how they calculate the gain / loss - I figured it would be done automatically). The cus...
by cas
Thu Apr 01, 2021 8:01 am
Forum: Personal Finance (Not Investing)
Topic: Nd help deciphering my mother's intentions in re: Series EE Savings Bonds in my mother's Safety Deposit Box
Replies: 19
Views: 1679

Re: Nd help deciphering my mother's intentions in re: Series EE Savings Bonds in my mother's Safety Deposit Box

HomeStretch wrote: Thu Apr 01, 2021 7:45 am Whatever your mother’s intentions were for the EE-Bonds maturing in 2033,
EE savings bonds purchased in 1993 reach final maturity in 2023. I'm guess the 2033 was a typo...
by cas
Thu Apr 01, 2021 7:54 am
Forum: Personal Finance (Not Investing)
Topic: Nd help deciphering my mother's intentions in re: Series EE Savings Bonds in my mother's Safety Deposit Box
Replies: 19
Views: 1679

Re: Nd help deciphering my mother's intentions in re: Series EE Savings Bonds in my mother's Safety Deposit Box

One thing to keep in mind is that saving bonds are one of the few assets that do not go to your estate at a stepped up cost basis so if your or your siblings inherit them then taxes would need to be paid on all the interest that they paid. Note that, when the owner of EE savings bonds dies, there a...
by cas
Thu Apr 01, 2021 7:03 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA over-contribution
Replies: 7
Views: 396

Re: Roth IRA over-contribution

Another thought ... if, by chance, you did the return of contribution during the market drop in 2020, so that you might have had *negative* earnings on the returned amount, so that Box 2a "Taxable Amount" on your 1099-R is 0 ... ... well, I can see why your tax preparer might be tearing th...
by cas
Thu Apr 01, 2021 6:55 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA over-contribution
Replies: 7
Views: 396

Re: Roth IRA over-contribution

Look at the 2020 Form 8606 instructions "Return of IRA Contributions" starting on page 5. +1 on this being the IRS publication to read for this tax topic. 2019 tax year contribution. I noticed the over contribution error (due to income) and had the excess contribution returned in April 20...
by cas
Thu Apr 01, 2021 6:28 am
Forum: Personal Finance (Not Investing)
Topic: Nd help deciphering my mother's intentions in re: Series EE Savings Bonds in my mother's Safety Deposit Box
Replies: 19
Views: 1679

Re: Nd help deciphering my mother's intentions in re: Series EE Savings Bonds in my mother's Safety Deposit Box

From IRS Pub 970: You may be able to cash in qualified U.S. savings bonds without having to include in your income some or all of the interest earned on the bonds if you meet the following conditions. • You pay qualified education expenses for ***yourself, your spouse, or a dependent*** . I doubt y...
by cas
Wed Mar 31, 2021 4:08 pm
Forum: Personal Investments
Topic: Trad IRA distribution tax optimization question
Replies: 6
Views: 382

Re: Trad IRA distribution tax optimization question

[Income] social security (~$30,000 per year) He has taxable accounts worth $500k, almost entirely in bank CDs/money market. These throw off a few thousand $$ per year in taxable interest income. His marginal tax rate is 12%. If Joe does anything, he wants to be looking at Roth conversions, rather t...
by cas
Wed Mar 31, 2021 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Federal E-File rejected due to Duplicate 1099-R
Replies: 46
Views: 3703

Re: Federal E-File rejected due to Duplicate 1099-R

Why do so many people have identical 1099-Rs? This seems very strange to me. Was it done intentionally for a 50/50 split of income? Among the boglehead's community I would guess that a very common reason is that people are doing the backdoor Roth process for both spouses. Make the max annual non-de...
by cas
Wed Mar 31, 2021 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Federal E-File rejected due to Duplicate 1099-R
Replies: 46
Views: 3703

Re: Federal E-File rejected due to Duplicate 1099-R

...or figure out a way to make it work with e-file. I checked, and there is at least one Turbotax community thread on this issue: E-File was rejected because of "duplicate" 1099-R forms Multiple people (but not everyone) report that their return was accepted when they changed one of the 1...
by cas
Wed Mar 31, 2021 7:38 am
Forum: Personal Finance (Not Investing)
Topic: Federal E-File rejected due to Duplicate 1099-R
Replies: 46
Views: 3703

Re: Federal E-File rejected due to Duplicate 1099-R

The actual 1099-R only transmits (an electronic version) if there is withholding. Similar to a W-2. If there is no withholding, then it’s just an entry in the software and the total $ amount shows up on the tax return. If it possibly helps narrow down the nature of the problem... My spouse and I di...
by cas
Tue Mar 30, 2021 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: Federal E-File rejected due to Duplicate 1099-R
Replies: 46
Views: 3703

Re: Federal E-File rejected due to Duplicate 1099-R

Entered manually For my case (where I didn't have any issues getting the IRS to accept the return this past Sunday 3/29), I imported mine from Vanguard (old style mutual fund accounts). Then went through and reviewed and answered the assorted TT questions. But I also have the difference (perhaps) t...