Search found 10642 matches

by Alan S.
Sat Jun 12, 2021 7:14 pm
Forum: Personal Investments
Topic: Correcting a Vanguard mistake - IRA distribution
Replies: 8
Views: 654

Re: Correcting a Vanguard mistake - IRA distribution

What does it matter how it affects the OP. His broker made an error and admits to it. How in the world should he NOT need to have this corrected. No, his broker did not make the error or admit to anything. OP made the error by not showing the desired IRA account number. Usually, the custodian has n...
by Alan S.
Sat Jun 12, 2021 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: No Vanguard 1099-R for cashed out Transamerica variable annuity
Replies: 14
Views: 956

Re: No Vanguard 1099-R for cashed out Transamerica variable annuity

I have the same situation as the OP with my mother. Here it is June and we have received nothing, at the time that I cashed out the annuity I took a screen shot of the cost basis just in case, within the hour Vanguard had closed access to the account so that is all I have. My understanding is that ...
by Alan S.
Sat Jun 12, 2021 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: double check my understanding of new RMD rules
Replies: 7
Views: 664

Re: double check my understanding of new RMD rules

In addition, if the 2027 RMD is postponed until 2028 then the 12/31/2027 balance and therefore the 2028 RMD will be about 3.8% higher than it would have been had the 2027 RMD been distributed in 2027 and was no longer included in the year end balance.
by Alan S.
Sat Jun 12, 2021 5:17 pm
Forum: Personal Investments
Topic: Correcting a Vanguard mistake - IRA distribution
Replies: 8
Views: 654

Re: Correcting a Vanguard mistake - IRA distribution

I am in the process of moving a Rollover IRA to my current 401K provider. As part of the IRA process,Vanguard accidentally distributed funds from my Traditional IRA and not my Rollover IRA. I called Vanguard Customer Service and they confirmed that in the IRA Distribution paperwork that I did prope...
by Alan S.
Sat Jun 12, 2021 1:44 pm
Forum: Personal Investments
Topic: MYGA in Inherited IRA
Replies: 10
Views: 572

Re: MYGA in Inherited IRA

Anyone have any experience buying a MYGA (multi-year guaranteed annuity) in an inherited IRA? I have an inherited IRA from my parent who passed in 2020. I will need to withdraw all the funds by 12/31/2030. I currently have some of my FI assets in the account. I was thinking of transferring to an in...
by Alan S.
Thu Jun 10, 2021 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: 4.7% SS COLA?
Replies: 34
Views: 5144

Re: 4.7% SS COLA?

If you assume that the .9 monthly increase for the last 2 months will continue through the 3rd quarter, the 2022 COLA would be closer to 6.8%. And with wage inflation now spiking due to 9.3mm of unfilled jobs, it is more likely that this will further accelerate the increases a couple months down the...
by Alan S.
Thu Jun 10, 2021 12:16 pm
Forum: Personal Investments
Topic: Roth IRA's - RMD's for beneficiaries
Replies: 5
Views: 699

Re: Roth IRA's - RMD's for beneficiaries

Since your discussion with brother was "a few years ago", perhaps things have changed for him financially since then. I would check with him to see if he wishes to change his request in any way. Any change in his marital status or with any of the nieces could affect his decision. Since he ...
by Alan S.
Wed Jun 09, 2021 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: RMD for 90 yr. old; Inherited tIRA from Spouse
Replies: 11
Views: 1407

Re: RMD for 90 yr. old; Inherited tIRA from Spouse

I'm helping someone who turned 90 a couple months ago calculate his RMD. His spouse passed away in December 2020. The account value at the end of 2020 was approximately $276,000. He was the spousal beneficiary and had it transferred to him as a new individual tIRA. What would be his required RMD as...
by Alan S.
Wed Jun 09, 2021 5:29 pm
Forum: Personal Investments
Topic: Roth 401K to Roth IRA
Replies: 6
Views: 590

Re: Roth 401K to Roth IRA

You can withdraw the entire $6,200 at any time. Earnings from that $6,200 are subject to the 5 year rule. Not sure yet, but I don't think this is correct for this situation . If the Roth 401k was "qualified", then I think the Roth IRA - even if new - is "qualified". I'm thinking...
by Alan S.
Wed Jun 09, 2021 5:18 pm
Forum: Personal Investments
Topic: IRA recharacterization to Roth IRA - resulting contribution basis?
Replies: 8
Views: 348

Re: IRA recharacterization to Roth IRA - resulting contribution basis?

The Roth basis is 6000. Form 5498 shows 6100 as recharacterized contributions and therefore matches up with the recharacterization 1099R. But since these forms fail to clarify the amount of the original contribution that was recharacterized, the IRS requires an explanatory statement for the return y...
by Alan S.
Tue Jun 08, 2021 5:28 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Contributions - Treated as regular contribution for withdrawal purposes?
Replies: 13
Views: 643

Re: Mega Backdoor Roth Contributions - Treated as regular contribution for withdrawal purposes?

So it sounds like if you only ever make backdoor and megabackdoor conversions, you can take it all out whenever you want? As long as there wasn't any growth prior to the conversion. Even if there was growth, the 10% penalty may still be worth it, since it is only on the growth. I note in my spreads...
by Alan S.
Mon Jun 07, 2021 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: IRA transfers - confirmation needed on 12 month IRA transfer rule
Replies: 3
Views: 272

Re: IRA transfers - confirmation needed on 12 month IRA transfer rule

Rollovers to a qualified plan (401k) from an IRA are not subject to the one rollover limit regardless of how the rollover is done (direct rollover or 60 day rollover). The one rollover limit only applies to rollovers between IRA accounts of the same type. You will also have to report this rollover o...
by Alan S.
Sun Jun 06, 2021 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Prorata Rule & Vanguard IRA to TSP
Replies: 10
Views: 641

Re: Prorata Rule & Vanguard IRA to TSP

I don't think you can do Roth conversions from a Traditional TSP as a annuitant. My understanding is that you only can contribute to a Roth in TSP, not convert. This is correct the thrift board is going to "*consider*" in plan roth conversions AFTER the record keeper transition in summer ...
by Alan S.
Sun Jun 06, 2021 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Prorata Rule & Vanguard IRA to TSP
Replies: 10
Views: 641

Re: Prorata Rule & Vanguard IRA to TSP

I have a Traditional IRA at Vanguard which consists of only deductible contributions plus earnings. I also have a Traditional IRA with Fidelity which consists of only nondeductible contributions plus earnings. The nondeductible contributions are less than 2% of tne total value of both IRAs. My thir...
by Alan S.
Sat Jun 05, 2021 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA rule
Replies: 16
Views: 1164

Re: Inherited IRA rule

I read all that and I’m still not sure what it means? Wells Fargo transitioned the IRA to me, skipping the primary beneficiary because she had passed. Again... Dads IRA - he dies at age 60, in 2015 Mom is primary beneficiary, never retitles, she’s 65 at time of death in 2021 Contingent beneficiarie...
by Alan S.
Sat Jun 05, 2021 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA rule
Replies: 16
Views: 1164

Re: Inherited IRA rule

It doesn't matter that your mother never retitled the IRA. She was still the beneficiary and she passed away post The Secure Act. This will give you a reference. https://www.montereyprivatewealth.com/blog-01/inheriting-inherited-ira Note this section: In other words, your children, no matter their ...
by Alan S.
Sat Jun 05, 2021 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA rule
Replies: 16
Views: 1164

Re: Inherited IRA rule

I have an inherited IRA question. The IRA was my dad's, with my mom as primary beneficiary and me and my brother as secondary. My question is related to what rules apply, since the death dates of the first two parties are far apart. IRA was in my dad's name - let's call him Dad. His wife was primar...
by Alan S.
Fri Jun 04, 2021 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: Some after tax contributions went to Traditional IRA after 401k roll over
Replies: 3
Views: 226

Re: Some after tax contributions went to Traditional IRA after 401k roll over

I was hoping someone could help clarify what my options are here. I've read a few other threads with similar circumstances except this one is very recent so hoping my options are different. I recently changed companies and received one check with a full 401k distribution that was all put into a new...
by Alan S.
Fri Jun 04, 2021 4:46 pm
Forum: Personal Investments
Topic: How to handle my excess Roth contributions from 2019/2020?
Replies: 9
Views: 845

Re: How to handle my excess Roth contributions from 2019/2020?

Honestly, if I'm thinking about this correctly and my math is correct, here is my best path (note: I am in Texas, so my tax deadline this year is June 15th because of the winter storm delay): 1. Withdraw excess contribution of $6000 for the 2019 year, and pay the $720 (6% x 2 years) excise tax. Lea...
by Alan S.
Fri Jun 04, 2021 1:20 pm
Forum: Personal Investments
Topic: To keep an Annuity or not to keep an Annuity?
Replies: 33
Views: 2868

Re: To keep an Annuity or not to keep an Annuity?

While you are looking into this IRA annuity, it would be wise to determine the beneficiary options upon her death. I have seen increasing posts from beneficiaries that their options are restricted both for spousal and non spousal beneficiaries. Read the beneficiary clause carefully, and if something...
by Alan S.
Thu Jun 03, 2021 9:15 am
Forum: Personal Finance (Not Investing)
Topic: IRA One-Rollover-Per-Year Rule - Clarification
Replies: 8
Views: 776

Re: IRA One-Rollover-Per-Year Rule - Clarification

AQ wrote: Wed Jun 02, 2021 10:43 pm I believe if OP transfers fund from IRA1 to IRA2, both of which are in Vanguard, then no 1099-R would be issued, and no tax reporting is required. Could someone either confirm or correct? Thanks.
Correct. No 1099R, no 5498, and no use of the one rollover permitted over 12 months.
by Alan S.
Wed Jun 02, 2021 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: RMD for 401K and traditional IRA -- how does it work?
Replies: 8
Views: 575

Re: RMD for 401K and traditional IRA -- how does it work?

If you create a pure rollover IRA from the 401k, your IRA will probably be protected against creditors in CA. https://sdirahandbook.com/self-directed-ira-news/california-rollover-iras-can-receive-erisa-style-creditor-protection/ That said, since this ruling was a court decision interpreting the stat...
by Alan S.
Wed Jun 02, 2021 6:02 pm
Forum: Personal Investments
Topic: Taxes on Earnings from After Tax Contributions - Mega Backdoor Roth
Replies: 5
Views: 325

Re: Taxes on Earnings from After Tax Contributions - Mega Backdoor Roth

The earnings in the after tax account must be distributed pro rata with the contributions. But that does not mean that you must pay taxes on the earnings. You could request a split rollover under Notice 2014-54, and send the earnings to your TIRA. That would compromise doing a regular back door if y...
by Alan S.
Wed Jun 02, 2021 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: record-keeping question: 401k rolled to IRA
Replies: 2
Views: 226

Re: record-keeping question: 401k rolled to IRA

I have about ten years' worth of quarterly statements from a 401k plan that was rolled over into an IRA at Vanguard in 2014. Some of these funds were Roth and some traditional--the traditional funds were rolled over again, into my existing 401k at a different job, this year. Assume I have have no e...
by Alan S.
Tue Jun 01, 2021 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: Big Tax Bill because of Missing Paperwork on IRA Rollover
Replies: 23
Views: 1446

Re: Big Tax Bill because of Missing Paperwork on IRA Rollover

The most likely reason that NYL did not issue a 5498 showing a rollover contribution is that they treated the contribution as a non reportable direct transfer. If so, another indication that Schwab improperly issued a 1099R. One of those parties must be wrong when the forms do not match. The IRS rec...
by Alan S.
Tue Jun 01, 2021 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Simple question on tax owed for a Roth Conversion
Replies: 7
Views: 882

Re: Simple question on tax owed for a Roth Conversion

I just want to make sure I’m not missing anything. I do my own taxes and am trying to figure out how much I can convert. We know that when you convert from a traditional IRA to a Roth, the amount you convert is added to your gross income for that tax year which I’m assuming means before deductions....
by Alan S.
Tue Jun 01, 2021 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Big Tax Bill because of Missing Paperwork on IRA Rollover
Replies: 23
Views: 1446

Re: Big Tax Bill because of Missing Paperwork on IRA Rollover

Asking for advice from tax experts on this forum. In 2019, I directed Charles Schwab to transfer $250,000 from my IRA account to New York Life to purchase a SPIA. Schwab wired the money to New York Life (NYL), NYL received it and began sending me the monthly annuity checks in April 2019. For the 20...
by Alan S.
Tue Jun 01, 2021 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Does getting a W2 each year allow me to delay RMDs from 401K?
Replies: 29
Views: 4168

Re: Does getting a W2 each year allow me to delay RMDs from 401K?

The plan should have a policy regarding the amount of work required to meet the "still working" exception. Due to part time hours, job sharing, etc most plans should have a clear rule. It is also possible that a plan might require RMDs for all staff at 72, as a plan can be more restrictiv...
by Alan S.
Mon May 31, 2021 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Pro Rata Rule Question - 2021 and 2022
Replies: 12
Views: 694

Re: Backdoor Roth Pro Rata Rule Question - 2021 and 2022

My scenario: In May 2021, I had some money in a Rollover IRA. I rolled over all of this Rollover IRA money into my 401(K) in May 2021. My Rollover IRA balance is and will remain at $0 for the rest of 2021. I do not have any other IRA accounts. Question: Would it be possible for me to do a Backdoor ...
by Alan S.
Mon May 31, 2021 2:04 pm
Forum: Personal Investments
Topic: Backdoor-roth
Replies: 11
Views: 541

Re: Backdoor-roth

If you make after tax non Roth contributions to your plan of 20,000 and by the time the after tax sub account is rolled to your Roth IRA, it has grown to 20,300, you will get a 1099R showing the 300 as taxable in Box 2a. If within 5 years of that Roth rollover, you need to take a Roth IRA distributi...
by Alan S.
Mon May 31, 2021 12:04 pm
Forum: Personal Investments
Topic: Need to track employer 401k match when switching between traditional 401k to from Roth 401k?
Replies: 5
Views: 471

Re: Need to track employer 401k match when switching between traditional 401k to from Roth 401k?

My spouse have an old 401k account where she previously switched between 401k Traditional and Roth method a few times. 401k account online shows the balance broken out by "Roth contribution", "Traditional contribution", and "Employer contribution". We're looking to rol...
by Alan S.
Mon May 31, 2021 9:21 am
Forum: Personal Investments
Topic: Transfer brokerage to IRA?
Replies: 7
Views: 646

Re: Transfer brokerage to IRA?

If you determine that you qualify for a TIRA deduction despite the income limits for participating in a qualified plan, AND if such a contribution is more beneficial than your Roth contribution, you can simply recharacterize your Roth contribution as a TIRA contribution. If your MAGI for 2021 is not...
by Alan S.
Sat May 29, 2021 1:15 pm
Forum: Personal Investments
Topic: titling of inherited IRAs as beneficiary
Replies: 15
Views: 1508

Re: titling of inherited IRAs as beneficiary

For a sole spousal beneficiary, inherited IRA (or inherited Roth) RMDs do not begin until the year the deceased spouse would have reached 72. Per OPs original intent, this postpones RMDs until that year, while maintaining the account as a beneficiary also provides penalty free distributions prior to...
by Alan S.
Thu May 27, 2021 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Underreported RMD's-Now what?
Replies: 4
Views: 482

Re: Underreported RMD's-Now what?

We sold our primary residence last year and I worked primarily on the tax implications. Had a substantial taxable CG and spent a lot of time going thru 30 years of records. In preparing our tax return, I mistakenly used Vanguards 1099 R's instead of the RMD report. Just realized that I underreporte...
by Alan S.
Thu May 27, 2021 5:53 pm
Forum: Personal Investments
Topic: Complicated RMD questions - fee-only CPA/CFP
Replies: 5
Views: 1025

Re: Complicated RMD questions - fee-only CPA/CFP

I'm helping a relative with calculating/planning RMD's and they have a mix of accounts (inherited IRA, doubly inherited IRA (spouse's parent), etc.). I'd like to hire a fee-only CPA/CFP to double check everything. Where would be a good place to find such a person? I had in mind someone like Alan S,...
by Alan S.
Wed May 26, 2021 8:06 pm
Forum: Personal Investments
Topic: irs didn't catch excess contribution
Replies: 2
Views: 642

Re: irs didn't catch excess contribution

Hi, I noticed quite late (after the Apr 15 deadline) that I had made excess contribution to my 403b. Since it was taking fidelity very long to process the excess contribution paperwork, I decided to file the taxes and let IRS determine the penalty, however, it seems that they processed the return w...
by Alan S.
Wed May 26, 2021 5:33 pm
Forum: Personal Investments
Topic: Newly Written Trust and pass IRA to wife after death
Replies: 6
Views: 906

Re: Newly Written Trust and pass IRA to wife after death

My wife and I have a new trust. I think I have two questions that are somewhat related. I am 75, she is 63. Our parents are gone, we have no children and we have no relatives and no friends we would ask. When the second of us dies, whatever is left goes to charity. I'm pretty good at finance. She i...
by Alan S.
Wed May 26, 2021 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Mom in Hospice, Questions about TIRA
Replies: 50
Views: 4981

Re: Mom in Hospice, Question about MRD

Yes, thanks, all taken care of right online. Remainder of MRD should come out tomorrow COB. Cheers, Ray Good decision, driven by a combination of the administrative hassles with 12 beneficiaries and the relative tax brackets. Since her marginal rate is very low due to high medical deductions, her t...
by Alan S.
Wed May 26, 2021 12:08 pm
Forum: Personal Investments
Topic: Understanding the 5 year rule for Roth Conversions - a hypo and clarification request
Replies: 19
Views: 2554

Re: Understanding the 5 year rule for Roth Conversions - a hypo and clarification request

If your Roth 401k basis shown in Box 5 of the 1099R exceeds the value of your account when rolled over to a Roth IRA, the Box 5 basis is treated as Roth IRA regular contribution basis when rolled into a Roth IRA. Your Roth IRA regular contribution basis would be increased more than the amount of the...
by Alan S.
Sat May 22, 2021 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: backdoor Roth and QCD alternately from zero-balance tIRA?
Replies: 3
Views: 311

Re: backdoor Roth and QCD alternately from zero-balance tIRA?

If these transactions were able to be carried out as presented, the net effect would be similar to doing a QCD last year when there were no RMDs. There would be no reduction in taxable income in the current year, but the total balance in retirement accounts subject to future RMDs would be reduced by...
by Alan S.
Fri May 21, 2021 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Rolled over Roth 401K into Traditional IRA
Replies: 6
Views: 880

Re: Rolled over Roth 401K into Traditional IRA

That's great news, but they should not be asking about the eligible amount. Rolling over more than the amount distributed from the Roth 401k is not allowed. Only the 43k actually distributed from the Roth 401k is eligible for rollover to the Roth IRA. The other 3k of gains is a taxable corrective di...
by Alan S.
Fri May 21, 2021 4:46 pm
Forum: Personal Investments
Topic: Large Net Unrealized Appreciation in a 401K review
Replies: 21
Views: 2975

Re: Large Net Unrealized Appreciation in a 401K review

It should also be noted that if your NUA plans change, there is a limited escape hatch you can use as a bailout. Your plans could change shortly after the LSD and you may simply have changed your mind about NUA, there was some foul up with the LSD, or the stock suddenly crashed leaving you with a hi...
by Alan S.
Fri May 21, 2021 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: RMD's and Irrevocable Trust
Replies: 2
Views: 449

Re: RMD's and Irrevocable Trust

I am the trustee of my recently deceased father who had a revocable trust (he was the grantor). In the trust he had two IRA's, one large one at Merrill Lynch and a smaller one at DWS. He had made the rmd for the DWS IRA before he passed but has not made the RMD for the larger IRA at Merrill Lynch y...
by Alan S.
Thu May 20, 2021 7:36 pm
Forum: Personal Investments
Topic: Large Net Unrealized Appreciation in a 401K review
Replies: 21
Views: 2975

Re: Large Net Unrealized Appreciation in a 401K review

Sounds good. He should ask the plan administrator if all trailing dividends will be automatically transferred to the receiving firm so that the plan balance is 0 at year end. If there are any other similar plans of this employer (eg ESOP) they must also be distributed by year end in order to have a ...
by Alan S.
Thu May 20, 2021 7:18 pm
Forum: Personal Investments
Topic: Recharacterize old contribution to solo 401k from traditional to Roth
Replies: 3
Views: 291

Re: Recharacterize old contribution to solo 401k from traditional to Roth

Yes, there is no way to retroactively change the nature of the contribution because you failed to deduct it. Fortunately, the amount is small.
by Alan S.
Tue May 18, 2021 5:00 pm
Forum: Personal Investments
Topic: Early Withdrawal Penalty on Roth Conversion - Turbo Tax
Replies: 16
Views: 1002

Re: Early Withdrawal Penalty on Roth Conversion - Turbo Tax

The way I generated the $700 in other tax was entering Code 01 (early withdrawal, no exception). However, it did not charge the extra tax on all of the $30k withdrawal, only the $7k that went to the IRS. If you entered code 1 for the entire distribution, TTax must have automatically applied the pen...
by Alan S.
Tue May 18, 2021 4:49 pm
Forum: Personal Investments
Topic: QCD from RMD?
Replies: 10
Views: 844

Re: QCD from RMD?

Put another way, QCDs made before your RMD is otherwise complete will reduce RMD taxable income. QCDs made after the RMD has been completed will not reduce taxable RMD income, neither will it increase taxable income.
by Alan S.
Tue May 18, 2021 11:24 am
Forum: Personal Investments
Topic: Early Withdrawal Penalty on Roth Conversion - Turbo Tax
Replies: 16
Views: 1002

Re: Early Withdrawal Penalty on Roth Conversion - Turbo Tax

Think I have figured it out. I had not thought to change the box 7 distribution code when I changed the age. In the made up example, $30k came out of the tIRA. $23k went to the Roth IRA. $7k went to the IRS. Code 07 - normal distribution - for the 71 year old Code 02 - "early distribution, exc...
by Alan S.
Mon May 17, 2021 7:15 pm
Forum: Personal Investments
Topic: Multiple inherited IRA?
Replies: 2
Views: 616

Re: Multiple inherited IRA?

Question for the inherited IRA experts among us... My wife has an inherited IRA at Vanguard via a distribution from a 401K at Bank X. No problems there, it's been in place for a year. Now, Bank X is going to make a final distribution of some other retirement account owned by her sibling at Bank X. ...
by Alan S.
Sun May 16, 2021 10:02 pm
Forum: Personal Finance (Not Investing)
Topic: Over-contributed to 401k by <$1, do I need to do anything?
Replies: 4
Views: 1007

Re: Over-contributed to 401k by <$1, do I need to do anything?

Do not contact the plan administrator and request a distribution of the excess. No matter what you do, that dollar will be added to your taxable wages for 2020, should be automatic in any decent tax program once you enter the Box 12 amounts on your W-2 forms. It is not worth the hassle to request th...