Search found 4000 matches

by neurosphere
Sat Apr 10, 2021 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Theory: The Only Four Situations Justifying Debt
Replies: 103
Views: 6879

Re: Theory: The Only Four Situations Justifying Debt

I don’t know if #3 is worth mentioning in general. Running a credit card balance to invest in your 401k or Roth IRA? It seems like a pretty weird edge case. A lot could go wrong. What if you lose your job? I once borrowed $1000 from my mom at 5% interest in February in order to max out an IRA for t...
by neurosphere
Sat Apr 10, 2021 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Gift Tax form 709
Replies: 13
Views: 767

Re: Gift Tax form 709

since I'll never get close to the max. Life can change in a heartbeat. You may find a lottery ticket on the ground, and all of a sudden you're hunting for estate planners to help with a future estate tax, and that one old "irrelevant" 709 form results in many thousands of extra cash for t...
by neurosphere
Fri Apr 09, 2021 1:54 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 75
Views: 4941

Re: Simplicity over Small Cap Value

As a reformed long term SCV tilter, my vote is keep it simple. Over more than two decades, I never saw a “premium”. It may not appear in my lifetime. Remember, a bet in favor of small value is a bet against all of the largest and most successful companies in America. Huh? Weren't all the current la...
by neurosphere
Thu Apr 08, 2021 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (ROTH recharacterization/conversion issues)
Replies: 25
Views: 1041

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

Thanks. My confidence in the tax guy is taking a hit. I like the idea of including a note (I imagine he might push back on this) to explain it all. I'm trying to avoid headaches down the line. Don't think of it as including a "note" or letter or asking the your tax-preparer to do "ex...
by neurosphere
Thu Apr 08, 2021 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (ROTH recharacterization/conversion issues)
Replies: 25
Views: 1041

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

And finally, what might be a situation where the 590-b method is used? Well, when one doesn't already know if some or all of a contribution/distribution/conversion may be taxable. For example, a phase-out range based on income. If the amounts contributed are all or none (deductible or non-deductible...
by neurosphere
Thu Apr 08, 2021 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (ROTH recharacterization/conversion issues)
Replies: 25
Views: 1041

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

More info. On page 16 of the 590-b pub, there is worksheet 1-1. At the bottom of that page is this message (emphasis mine): 5. If line 5 of Form 8606 is equal to or greater than line 8 of Worksheet 1-1, follow instructions 6 and 7 next. Don't complete lines 6 through 12 of Form 8606. Perhaps THOSE a...
by neurosphere
Thu Apr 08, 2021 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (ROTH recharacterization/conversion issues)
Replies: 25
Views: 1041

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

Thanks so much. I can understand organic chemistry, molecular biology, Milton, Shakespeare, Emily Dickinson, Foucault, can comprehend US Supreme Court decisions...but for some reason this stuff just puts me in a tailspin ( and I don't understand why they can't hire someone to write very clear instr...
by neurosphere
Thu Apr 08, 2021 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (ROTH recharacterization/conversion issues)
Replies: 25
Views: 1041

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

I only skimmed your post, but keep in mind that most tax software SKIPS lines 6-12. There is an alternate worksheet method to get the right information and tax due on the form, but which actually ignores the instructions printed on the actual form. Maybe this thread will help: https://www.bogleheads...
by neurosphere
Thu Apr 08, 2021 8:05 am
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 75
Views: 4941

Re: Simplicity over Small Cap Value

Simplicity. Buy the market. Both US and Ex-US. Where’s the poster with the sig line “if you have to ask whether a target date fund is right for you, the answer is yes.” Same concept here. If you can’t decide whether to tilt to small value without asking the forum, the best choice for you is probabl...
by neurosphere
Wed Apr 07, 2021 2:35 pm
Forum: Personal Investments
Topic: Employer 401K Losing Out of Matched Money
Replies: 39
Views: 2392

Re: Employer 401K Losing Out of Matched Money

The wording from TRP is so awkward it's hard to know for sure. but I read it as: -- this plan does not have an after-tax feature, and EVEN IF it did, and you contributed, it would fail compliance testing as things currently stand OF -- this plan DOES have an after-tax feature, but if you contribute ...
by neurosphere
Tue Apr 06, 2021 6:49 pm
Forum: Personal Investments
Topic: 0% LTCG vs Roth conversion under 22% bracket?
Replies: 26
Views: 2351

Re: 0% LTCG vs Roth conversion under 22% bracket?

One point about capital-gains harvesting that is seldom mentioned: in real terms, cost basis is a depreciating asset. This isn't a consideration if the the proceeds will be spent, but matters if reinvested for the long term. I'm unclear what you mean and how I would use the information if I underst...
by neurosphere
Tue Apr 06, 2021 5:07 pm
Forum: Personal Investments
Topic: Are converted Roth IRA Contributions Penalty Free Withdrawal?
Replies: 36
Views: 2437

Re: Are converted Roth IRA Contributions Penalty Free Withdrawal?

Great idea, but suggest a change. Row B is not taxable income - you already paid taxes on it when you did the conversion. It will not be taxed again. It is, however, subject to the 10% penalty if the 5 tax year conversion clock is not finished running. FIXED! (thanks!) I got turned around somewhere...
by neurosphere
Tue Apr 06, 2021 4:34 pm
Forum: Personal Investments
Topic: Are converted Roth IRA Contributions Penalty Free Withdrawal?
Replies: 36
Views: 2437

Re: Are converted Roth IRA Contributions Penalty Free Withdrawal?

Here is how the IRS will look at withdrawals from your IRA. [Not saying anything new here, just saying the same things in a different way...] One way to look at it visually, assign a value to each row: A: all prior direct/regular roth contributions (for all years, just lump them together) B: Taxabl...
by neurosphere
Tue Apr 06, 2021 12:28 pm
Forum: Personal Investments
Topic: Solo 401(k) Contributions Deadline Dates
Replies: 30
Views: 1515

Re: Solo 401(k) Contributions Deadline Dates

Sole proprietors can make both employee and employer contributions this year, for 2021, until taxes are due . I just went through the process of setting both up and double checked with Vanguard who said their compliance team confirmed this. Can someone clarify for me whether the due date includes a...
by neurosphere
Tue Apr 06, 2021 12:25 pm
Forum: Personal Investments
Topic: Solo 401(k) Contributions Deadline Dates
Replies: 30
Views: 1515

Re: Solo 401(k) Contributions Deadline Dates

Sole proprietors can make both employee and employer contributions this year, for 2021, until taxes are due . I just went through the process of setting both up and double checked with Vanguard who said their compliance team confirmed this. Can someone clarify for me whether the due date includes a...
by neurosphere
Tue Apr 06, 2021 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Old employer closed my 401K and withheld taxes
Replies: 16
Views: 1684

Re: Old employer closed my 401K and withheld taxes

Plan closed--company no longer exists. Ah makes sense. When you originally wrote "My old employer closed my old 401k" it got closed for everyone and not just you. There are still rules/laws about what happens in these situations. "Automatic rollovers" to an IRA are built into so...
by neurosphere
Tue Apr 06, 2021 8:40 am
Forum: Non-US Investing
Topic: Can someone help me understand this annuity?
Replies: 15
Views: 1639

Re: Can someone help me understand this annuity?

Oh I think I understand better now. Is it like even my principal paid is 1000, and I am guaranteed to get 2000 face value when retired, they would decide how this 2000 will be cashed out monthly based on the annuity rate they set by then, which is always in their favor. Yep. It's a "50% off&qu...
by neurosphere
Tue Apr 06, 2021 8:34 am
Forum: Personal Finance (Not Investing)
Topic: Old employer closed my 401K and withheld taxes
Replies: 16
Views: 1684

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 neurosphere
Tue Apr 06, 2021 8:24 am
Forum: Personal Investments
Topic: 0% LTCG vs Roth conversion under 22% bracket?
Replies: 26
Views: 2351

Re: 0% LTCG vs Roth conversion under 22% bracket?

Not sure if it's been mentioned, but yet another unknown to think about. Your standard deduction will go down and brackets will jump for a given amount of income if one of you dies earlier than expected, and Roth conversions now are a hedge against the tax consequences, likely (?) more valuable than...
by neurosphere
Mon Apr 05, 2021 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.
Replies: 11
Views: 607

Re: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.

I am surprised to hear of your job dissatisfaction. I thought I had read somewhere along the way that you had vetted this job carefully. I worry about our system driving the good people away. ...But then corona changed many aspects of the job, and I think also changed me. But in late 2020 I agreed ...
by neurosphere
Mon Apr 05, 2021 4:10 pm
Forum: Personal Investments
Topic: Are converted Roth IRA Contributions Penalty Free Withdrawal?
Replies: 36
Views: 2437

Re: Are converted Roth IRA Contributions Penalty Free Withdrawal?

Thank you. I recently transferred to Fidelity, and before Vanguard closed my accounts, it looked like I only could download statements from my and her Roth IRAs when they became brokerage accounts (approx 2012). I could not find statements for my Roth IRA contributions from 2007-2011. ... It could ...
by neurosphere
Mon Apr 05, 2021 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.
Replies: 11
Views: 607

Re: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.

Accordingly, when you enter the Box 7 code into the program, you can expect some questions regarding how long you have held a Roth IRA. If your Roth is not yet qualified, the program will ask about your regular contribution basis, and if that figure is less than your distribution, it will ask for y...
by neurosphere
Mon Apr 05, 2021 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.
Replies: 11
Views: 607

Re: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.

For the life of me, I can't figure out who to model a pre-60 Roth withdrawal correctly. I suspect it's because i'm not using the appropriate code on the 1099-R. I'm off to research how a custodian might report a (for example) $50,000 Roth withdrawal for my age (taxable amount not determined? What c...
by neurosphere
Mon Apr 05, 2021 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.
Replies: 11
Views: 607

Re: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.

For the life of me, I can't figure out who to model a pre-60 Roth withdrawal correctly. I suspect it's because i'm not using the appropriate code on the 1099-R. I'm off to research how a custodian might report a (for example) $50,000 Roth withdrawal for my age (taxable amount not determined? What co...
by neurosphere
Mon Apr 05, 2021 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.
Replies: 11
Views: 607

Re: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.

The TT worksheet has lots of IRA data so it can handle almost anything. The Roth section actually starts with the carryovers from the previous year, then a section on current year contributions, conversions, and distributions, and then the final numbers to carryover to next year. The final Roth sec...
by neurosphere
Mon Apr 05, 2021 1:28 pm
Forum: Personal Investments
Topic: Are converted Roth IRA Contributions Penalty Free Withdrawal?
Replies: 36
Views: 2437

Re: Are converted Roth IRA Contributions Penalty Free Withdrawal?

You would need to keep track of contribution, conversion taxable portion, conversion non-taxable portion each year. I found this page from the Finance Buff very helpful: https://thefinancebuff.com/roth-ira-contributions-withdrawals-spreadsheet.html btw, I just now made this post (https://www.bogleh...
by neurosphere
Mon Apr 05, 2021 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.
Replies: 11
Views: 607

Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.

For the first time ever, I helped prepare a set of taxes for someone that needed to pay a 6% penalty on an excess Roth contribution, so I researched/learned about form 5329 and then...WHOA, discovered my tax software has a worksheet I had never know about that keeps tracks (or otherwise allows enter...
by neurosphere
Mon Apr 05, 2021 10:07 am
Forum: Investing - Theory, News & General
Topic: The Atlantic: The Autopilot Economy -- Economists ... are Worried That Index Funds are Hurting Markets
Replies: 28
Views: 3400

Re: The Atlantic: The Autopilot Economy -- Economists ... are Worried That Index Funds are Hurting Markets

Read the entire article. She surprisingly spends a lot of time extolling the virtues of passive index investing for individuals! Most of the fears and concerns she raises (or are raised by others with vested interests) are speculative with little to no research or data behind them. The words “might...
by neurosphere
Sun Apr 04, 2021 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?
Replies: 33
Views: 2281

Re: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?

I did a mega backdoor Roth to move my after-tax 401k contributions to a Roth IRA, and this is how I entered it in TaxAct: Wow, I never ever ever would have figured that out. Partly because I could not have imagined that I would have to go through the Q&A for the 1099-R, give all the correct inf...
by neurosphere
Sun Apr 04, 2021 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Any reason to file taxes before May 17?
Replies: 34
Views: 3619

Re: Any reason to file taxes before May 17?

File as early as possible to prevent identity theft by someone fraudulently filing for you first. Just get the IRS Identity Protection PIN! The PIN is very helpful like mentioned. Otherwise it is a real issue as I’ve experienced in the past. Just tried to sign up for an IRS account but my Google Vo...
by neurosphere
Sun Apr 04, 2021 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Any reason to file taxes before May 17?
Replies: 34
Views: 3619

Re: Any reason to file taxes before May 17?

chemocean wrote: Sat Apr 03, 2021 11:51 pm If you wait, establish an IRS online account and get a PIN for this year's return to avoid fraud from someone else filing your return for you.
How is it I've never considered this idea? Thanks for the suggestion.
by neurosphere
Sat Apr 03, 2021 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Downloadable Social Security Benefit Estimator
Replies: 155
Views: 21682

Re: Downloadable Social Security Benefit Estimator

Google Sheets would be my last choice, just because I don't trust Google. But it does indeed work in Google Sheets and provided me with the same values as SS's calculator. Too bad Open Office doesn't work...I only use Open Office. Maybe I can figure out a fix. Understood. Previous users lamented th...
by neurosphere
Sat Apr 03, 2021 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: Downloadable Social Security Benefit Estimator
Replies: 155
Views: 21682

Re: Downloadable Social Security Benefit Estimator

I followed the input requirements, but get no results in the graph or table. I have tried both the Open Office and Excel versions. Any ideas what I'm doing wrong? The current version at this link is written for Google Sheets: https://docs.google.com/spreadsheets/d/1q6WcMbGESQts5uUTmNpDoY8IklMx_kfcy...
by neurosphere
Sat Apr 03, 2021 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax Credit - TaxAct help
Replies: 29
Views: 888

Re: Foreign Tax Credit - TaxAct help

TaxAct doesn't let me see the actual forms. From the form library it sends me straight to the Q&A for form 1116. I would change my answers to TaxAct until the country was not "Various" and was "RIC" or "Regulated Investment Company" instead. I printed my taxes and ...
by neurosphere
Fri Apr 02, 2021 12:40 pm
Forum: Investing - Theory, News & General
Topic: CFP historic returns
Replies: 29
Views: 1575

Re: CFP historic returns

Performance Information Generally. The rule prohibits including in any advertisement : gross performance, unless the advertisement also presents net performance any performance results, unless they are provided for specific time periods in most circumstances; any statement that the Commission has a...
by neurosphere
Fri Apr 02, 2021 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Why do I owe so much in Taxes?
Replies: 55
Views: 6737

Re: Why do I owe so much in Taxes?

Keep in mind that employers can CHOOSE the withholding method on supplemental pay or bonus. They can choose the flat 22% rate, or they can choose to treat it like any other payroll. At megacorp, we're allowed to choose between 22, 24, 32, and 35. Interesting. So an employer can choose FOR you, or a...
by neurosphere
Fri Apr 02, 2021 10:48 am
Forum: Personal Finance (Not Investing)
Topic: deductible health insurance premiums for self-employment?
Replies: 57
Views: 3596

Re: deductible health insurance premiums for self-employment?

After long deliberation, I've decided to claim the deduction described here: self-employment health insurance deduction for a COBRA policy in my wife's name that covers the whole family. I believe this meets the spirit of the tax law, where the letter of the law doesn't answer the question directly...
by neurosphere
Fri Apr 02, 2021 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Why do I owe so much in Taxes?
Replies: 55
Views: 6737

Re: Why do I owe so much in Taxes?

It is extremely common for folks to believe bonuses are taxed differently because they are withheld differently, so you're not alone. ^^ This must be printed in BIG letters... somewhere. So much confusion because lots of people don't realize that. Keep in mind that employers can CHOOSE the withhold...
by neurosphere
Fri Apr 02, 2021 9:23 am
Forum: Personal Consumer Issues
Topic: what size grommet hole for monitor arm?
Replies: 7
Views: 592

Re: what size grommet hole for monitor arm?

I have a Fully Jarvis desk, with 3" grommets for routing wires or for something like the plug insert. I'm looking into getting a monitor arm that is grommet mounted, but most arms I've seen say the hole can be no more than 2" or so. I've looked through some of the manuals for the arms Ful...
by neurosphere
Wed Mar 31, 2021 9:11 am
Forum: Personal Investments
Topic: Employer 401K Losing Out of Matched Money
Replies: 39
Views: 2392

Re: Employer 401K Screwing Me Out of Matched Money

My employer unfortunately only matches on a per payroll basis as long as I, the employee, make a contribution. I did not know this. People here are giving you a hard time for this. Don't take it personally (although I do think some of the criticism sound mean and could have been phrased diplomatica...
by neurosphere
Tue Mar 30, 2021 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: Downloadable Social Security Benefit Estimator
Replies: 155
Views: 21682

Re: Neurosphere's 2021 Downloadable Social Security Benefit Estimator (updated with 2020 CPI-W and 2019 Wage data)

[Post merged into here, see below. --admin LadyGeek] Hi all, here's the new update for 2021. It's updated to reflect all the necessary data released in 2020, and should be valid until fall of 2021. Here's the link: https://docs.google.com/spreadsheets/d/1q6WcMbGESQts5uUTmNpDoY8IklMx_kfcybT2e0WNhqw/...
by neurosphere
Mon Mar 29, 2021 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Accountant Mistake: excess tax on Backdoor IRA
Replies: 1
Views: 209

Re: Accountant Mistake: excess tax on Backdoor IRA

Our accountant filed an excess tax form for my 2020 backdoor IRA contribution of $6000. Instead it shows as if that’s a 2019 over the limit amount. This caused me to owe $360 (6%), over what we rightfully owe. Also DHs $6k contribution 8606 form was not filed. I sent her an email. Meanwhile I am ve...
by neurosphere
Mon Mar 29, 2021 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Taxact (Online version): Did I mess up my backdoor IRA? Wrong 8606.
Replies: 18
Views: 713

Re: Did I mess up my backdoor IRA? Wrong 8606.

If you simply answer the questions in order, it will put in the right basis on line 17 but does NOT put it on line 1. So you get the right answer but the form is wrong. If you enter a non-deductible contribution and a 1099, it does both the calculation and the form correctly. Do I have that right??...
by neurosphere
Mon Mar 29, 2021 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Taxact (Online version): Did I mess up my backdoor IRA? Wrong 8606.
Replies: 18
Views: 713

Re: Did I mess up my backdoor IRA? Wrong 8606.

Now main question: Can I just send in updated 8606 or do I need to amend the whole tax return. I would print and sign and mail the form to the IRS, keeping a copy for yourself. In fact, keep a copy of this forum discussion too in case you get a query from the IRS in two years. The IRS will accept F...
by neurosphere
Mon Mar 29, 2021 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Taxact (Online version): Did I mess up my backdoor IRA? Wrong 8606.
Replies: 18
Views: 713

Re: Did I mess up my backdoor IRA? Wrong 8606.

fwiw, I just went through the Q&A for reporting a Roth conversion via the step-by-step method jumping to the "IRA income" (or maybe it was "distributions") section... I asks for all the 1099-R info, then asks whether this was a Roth conversion. But no where did it ask for bas...
by neurosphere
Mon Mar 29, 2021 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Is a "fiduciary" Worth it?
Replies: 10
Views: 755

Re: Is a "fiduciary" Worth it?

Please educate me. A fiduciary is to only act in the clients best interest. If that is the case, please explain the following: 1) Who detemines what is in the clients best interest? 2) Who enforces such compliance? Is it even possible? 3) If the above are not possible, isnt this actually another fo...
by neurosphere
Mon Mar 29, 2021 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Taxact (Online version): Did I mess up my backdoor IRA? Wrong 8606.
Replies: 18
Views: 713

Re: Did I mess up my backdoor IRA? Wrong 8606.

Isn't it possible to report a roth conversion in Part II while Part I remains blank? But ... Line 17 ("basis") is 0 for a vanilla Roth conversion, so it is a bit of mystery why OP's line 17 is $6000. TaxAct dredged up $6000 in basis from somewhere. I know in Turbotax (not familiar with Ta...
by neurosphere
Mon Mar 29, 2021 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Taxact (Online version): Did I mess up my backdoor IRA? Wrong 8606.
Replies: 18
Views: 713

Re: Did I mess up my backdoor IRA? Wrong 8606.

I've only used the desktop version of taxact. Does the online version have a "forms" mode?

Your first step would be to open the worksheet called "Federal Form 1040 IRA Summary" and see if there is even an IRA contribution reported in the first place, and if so, what kind.
by neurosphere
Mon Mar 29, 2021 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Taxact (Online version): Did I mess up my backdoor IRA? Wrong 8606.
Replies: 18
Views: 713

Re: Did I mess up my backdoor IRA? Wrong 8606.

Well, I'm baffled. Are the numbers just not on the form at all or don't show up when you print the form? Is is possible your income was under the limit and TaxAct deducted it? (Schedule 1, Part II and 1040 line 10a) Probably pretty obvious that I'm grasping at straws. I can't think of any reason fo...
by neurosphere
Mon Mar 29, 2021 9:24 am
Forum: Investing - Theory, News & General
Topic: Dividends vs no dividends. A case study.
Replies: 53
Views: 3846

Re: Dividends vs no dividends quantified

I'm guessing you would have the same numbers if you compared two similar stocks/funds without dividends, but simply sold 2% each year of one of them. You'll have more at the end of the period of the stock you sold, because you had less to lose in the drop. But if over time stocks go up, spending div...