Search found 7645 matches

by Katietsu
Tue Mar 26, 2024 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Submitting tax returns for prior years?
Replies: 6
Views: 471

Re: Submitting tax returns for prior years?

Sure. I knew a guy who went 20 years where he would file two years of tax returns at a time every other year. And the IRS pays interest for those refunds related to the “old” years.
by Katietsu
Mon Mar 25, 2024 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: Strange Tax Question - Bad EIN Ohio
Replies: 7
Views: 700

Re: Strange Tax Question - Bad EIN Ohio

krafty81 wrote: Mon Mar 25, 2024 4:02 pm Called the issuer, they said the number is correct. It is the same al last year. Guess I will just resubmit.
If this has not yet worked, the first thing I would do is delete the entire 1099-R from the software. Then add it back.
by Katietsu
Sun Mar 24, 2024 9:01 pm
Forum: Personal Investments
Topic: What is considered a 'good' customer at a brokerage these days (and does it matter)?
Replies: 10
Views: 1804

Re: What is considered a 'good' customer at a brokerage these days (and does it matter)?

newbie003 wrote: Thu Feb 29, 2024 11:23 am I'm continually told that my docs were received and are in the queue, but there's nothing they can do to escalate them (they say they are, but I don't think it's really doing anything).
What are you trying to do? For instance, if you are dealing with a retirement plan request, the folks that deal with that will be very busy in December and during tax season.
by Katietsu
Sat Mar 23, 2024 10:46 pm
Forum: Personal Investments
Topic: Downside to 401k allocation churn?
Replies: 7
Views: 692

Re: Downside to 401k allocation churn?

There is no problem with your plan. The only problem is that you will get misleading responses to your question because you are calling your plan churning.
by Katietsu
Sat Mar 23, 2024 10:02 pm
Forum: Personal Investments
Topic: Kids W2 form
Replies: 4
Views: 512

Re: Kids W2 form

Since $5753 is well below the standard deduction for wages, $0 tax liability works well with $0 withholding.
by Katietsu
Sat Mar 23, 2024 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: What should a taxpayer expect a CPA to do?
Replies: 27
Views: 2979

Re: What should a taxpayer expect a CPA to do?

For 2023, I had 3 brokerage statements associated with our joint return which included some dividend income from federal obligations. Only one of the three included the percentages on the 1099 supplemental information. If the information was there, as in this case, I would expect the CPA to exclude the relevant dividend amount from my state taxable income. For the 3 funds/ETFs held with the other two brokerages, it took me about 45 minutes to find the %. Another 15 minutes to do the multiplication and data entry. Even with a 5 figure gross dividend, it would have cost more in fees than the state tax savings in my case if done by a CPA.
by Katietsu
Sat Mar 23, 2024 11:43 am
Forum: Personal Finance (Not Investing)
Topic: In-laws 529 for grandkids, bite my lip or say something?
Replies: 58
Views: 5897

Re: In-laws 529 for grandkids, bite my lip or say something?

I agree with the gentle approach of letting them know “softly” that you are using lower fee 529 plans. Be prepared for the response that I received which was that the financial advisor had to make a living.
by Katietsu
Wed Mar 20, 2024 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Gifted cash for home purchase to single son, for now!
Replies: 11
Views: 1539

Re: Gifted cash for home purchase to single son, for now!

I would stay out of this. If your son wants to pursue a pre nup he can. Personally, I think in most cases a pre-nup to address the down payment on a typical home really does not feel good or worthwhile to me.
by Katietsu
Wed Mar 20, 2024 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: Help! Problem with Turbo Tax 2023 Form 5329 Additional Taxes on Qualified Plans
Replies: 4
Views: 423

Re: Help! Problem with Turbo Tax 2023 Form 5329 Additional Taxes on Qualified Plans

Go into the Forms mode and look at the IRA worksheets. See if you find a stray entry there.
by Katietsu
Wed Mar 20, 2024 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Tax software suggestions?
Replies: 22
Views: 1226

Re: Tax software suggestions?

FiveK wrote: Wed Mar 20, 2024 7:48 pm
gunny2 wrote: Wed Mar 20, 2024 5:37 pm I don't get needing my DOB either...(HR Block is asking this).
The standard deduction and some credits are age-dependent.
Even more than that. When e-filing, the IRS matches the submitted date of birth with the date in the social security database. The IRS will reject the return if it is wrong.
by Katietsu
Wed Mar 20, 2024 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: a question regarding deductions or credits
Replies: 8
Views: 669

Re: a question regarding deductions or credits

Have you reviewed the EIC and able in the 1040 instruction book? It will let you easily see how much your credit will be at each lower income level. You would need to get your income down to $28,150 to receive the maximum credit of $6604. That said, the EIC credit can be a reason to put retirement funds into a traditional instead of a Roth, for example, for someone with a more modest income.
by Katietsu
Wed Mar 20, 2024 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: ETrade Morgan Stanley Forms 1099 to Expect for 2023
Replies: 12
Views: 2056

Re: ETrade Morgan Stanley Forms 1099 to Expect for 2023

patty70 wrote: Wed Mar 20, 2024 2:59 pm I just called Etrade and spoke to someone and he said to combine amounts. It's just broke up into 2 time periods.
I am not sure what you mean by “combine”. But you should treat them as separate tax forms from two different brokerages. The payer and accounts are different even though you did nothing to change brokerages. Different addresses, different EIN numbers as well. Treat them just like you would if you had intentionally transferred your assets from ETrade to Morgan Stanley.
by Katietsu
Wed Mar 20, 2024 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts can be better than 529s to save for college?
Replies: 69
Views: 4652

Re: Retirement accounts can be better than 529s to save for college?

I think your plan makes sense. The only other thought I had that had not been mentioned is that the ability to change the beneficiary on a 529 could extend the time the account was allowed to accumulate tax free. In other words, the 529 funds could accumulate for your grandchild past the time when you were deceased and your Roth was emptied. For most people, this would not be a high priority but I know a couple individuals who make yearly contributions with this intent.
by Katietsu
Wed Mar 20, 2024 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone holding AMLP or MLPA ? ...Question re 1099
Replies: 3
Views: 270

Re: Anyone holding AMLP or MLPA ? ...Question re 1099

This looks like your report from Schwab is the same as the supplemental tax information on MLPA anyway. I did not look up your other fund.

https://www.globalxetfs.com/content/fil ... X-ETFs.pdf
by Katietsu
Mon Mar 18, 2024 11:08 pm
Forum: Personal Finance (Not Investing)
Topic: Help with form 8606
Replies: 11
Views: 985

Re: Help with form 8606

What month and year was each contribution and conversion actually done?
by Katietsu
Sun Mar 17, 2024 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Over 80, take more than minimum RMD? Advice?
Replies: 18
Views: 1960

Re: Over 80, take more than minimum RMD? Advice?

Unless you wish to spend it in the present, why prefer an extra withdrawal instead of additional Roth conversions? If you do the Roth conversion, you pay the taxes now and avoid the impact of a future tax increase to at least the same degree as with a withdrawal. Additionally, you probably are eliminating the tax drag from dividends by remaining in an IRA. And you eliminate tax on future capital gains should you decide to spend it in your lifetime or just want to change investments. And if your children do inherit they get to take advantage of the reduced tax drag and untaxed capital gains for another ten years. You can debate whether it is best to do a Roth conversion or keep a healthier balance in traditional. You can debate a withdrawal ...
by Katietsu
Sat Mar 16, 2024 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: Confused about 1099-Q and 1098-T
Replies: 19
Views: 1507

Re: Confused about 1099-Q and 1099-T

I try to make your numbers work but could not come up with a definitive explanation. Is there a Form 8863 as part of your return?

Taxable portions of 529 distributions are considered unearned income. If your son does have $4142 of unearned income, he would need to file a return. He would also be subject to the kiddie tax given his age, full time student status and lack of earned income.
by Katietsu
Sat Mar 16, 2024 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Concern for Possible Fraud... New Account Needed?
Replies: 29
Views: 2163

Re: Concern for Possible Fraud... New Account Needed?

Not everyone is on the same schedule. I would be pretty annoyed if my bank judged the hours I did transactions or what part of the country the vendor lived with whom I chose to do business. I do not consider either of these things to be a red flag. Alerts not triggered by a bank fraud algorithm are going to be personalized by the user at each of my banks. Text messages are going especially require you to proactively sign up. My spouse, myself and my parent all have made different choices about how and for what we want to be notified. I have an ATM only card at one bank. My other bank does not offer an ATM only card but does allow me to keep the card locked at all times. I will not own a Debit Card that is unable to be locked. I use one chec...
by Katietsu
Sat Mar 16, 2024 7:42 am
Forum: Personal Consumer Issues
Topic: Dumped from PT due to low Medicare reimbursements?
Replies: 59
Views: 4137

Re: Dumped from PT due to low Medicare reimbursements?

Consider that if you present yourself to your providers as you have in this thread, you may not be getting an honest opinion. You are clearly adamant in your position. It may be that you are influencing the advice you are being given and it is not the provider’s independent opinion. The person who made the conclusion to discharge you from care could be able to make a more objective decision concerning the insurance guidelines because they were not personally interacting with you.
by Katietsu
Sat Mar 16, 2024 6:17 am
Forum: Personal Finance (Not Investing)
Topic: Dealing with empty tIRA account after back door Roth IRA
Replies: 13
Views: 1886

Re: Dealing with empty tIRA account after back door Roth IRA

To directly answer your questions: 1. Happens all the time. It is not a problem. 2. There is no reason to open and close the traditional IRA each year. It is unnecessary. 3. No, do not withdraw the $7 to a money market. Leave it where it is until next year or convert to the Roth now. You might be confused by all the back door Roth articles that tell you to have a $0 traditional IRA balance. This is not actually a requirement. It is just that having a large not yet taxed balance in the traditional IRA can make the max consequences for the non deductible contribution and subsequent conversion. Back when conversions required a lot of paperwork, literally on paper, and I would only convert every other year and often had a couple hundred of taxa...
by Katietsu
Fri Mar 15, 2024 12:32 am
Forum: Personal Finance (Not Investing)
Topic: Two accountants disagree about Backdoor Roth and Potentially Screwed up our accounts
Replies: 27
Views: 3686

Re: Two accountants disagree about Backdoor Roth and Potentially Screwed up our accounts

The Form 8606 for 2022 will be simple. The $7000 will go on multiple lines of part 1 and that will be about it. The 2023 Form 8606 will actually require math.

Slow down. I would not just move $700k from an IRA just to make a few years of pro rata free back door Roth contributions. What was done is already done. Now, consider things like fees and fund choices in the 401k before moving that large of a sum for just a few years of contributions before starting your anticipated conversion plan. A taxable brokerage account invested in a total stock index ETF is pretty tax efficient. This is not to suggest that the transfer of the tax deferred portion of the traditional IRA is a bad idea, just that it is not a slam dunk.
by Katietsu
Fri Mar 15, 2024 12:06 am
Forum: Personal Finance (Not Investing)
Topic: Taxpayer Protection Program Notification?
Replies: 2
Views: 409

Re: Taxpayer Protection Program Notification?

My recollection is that the letter will include a special phone number which will get you directly to the people who will work to verify that you are who you say you are.
by Katietsu
Wed Mar 13, 2024 8:38 pm
Forum: Personal Consumer Issues
Topic: Vanguard just won't stop sending me paper mail
Replies: 36
Views: 3911

Re: Vanguard just won't stop sending me paper mail

I resolved a similar issue by changing my email address on file with the brokerage. I used an address with a different email provider just for good measure.
by Katietsu
Wed Mar 13, 2024 1:11 am
Forum: Investing - Theory, News & General
Topic: ReadOnly Accounts and trading with Advisors
Replies: 11
Views: 1268

Re: ReadOnly Accounts and trading with Advisors

At least some of the robo advisors would work this way.
by Katietsu
Mon Mar 11, 2024 8:09 pm
Forum: Personal Investments
Topic: SS is insufficient, very little savings, what's the best option
Replies: 49
Views: 7956

Re: SS is insufficient, very little savings, what's the best option

If they want to stay local, look around for the best interest rates for the $20,000 at banks and credit unions. My credit union has a CD at 5.35% and a regional bank has a money market at 4.5%.

Given that she is still working, they could contribute to Roth IRAs. Maybe open the Roth IRA account at Fidelity and use Fidelity Freedom Index 2025 Fund. No decisions to make. Easy. Contributions can come out whenever needed. If they have never had a Roth, they would need to wait until January 2029 to take out earnings without creating taxable income.
by Katietsu
Mon Mar 11, 2024 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: Tax software which can calculate income exempt from state taxes?
Replies: 21
Views: 1559

Re: Tax software which can calculate income exempt from state taxes?

I was thinking along similar lines this weekend as spent an hour searching for the % of federal obligations for 4 funds. One brokerage supplied this information but the other did not. I was wondering if there was a service where you could type in the ticker symbol and get the tax information for things like federal obligations and foreign taxes. I have no issue doing the multiplication and entering the amount that is state tax exempt, I just don’t want it to be so hard to find the needed input.
by Katietsu
Mon Mar 11, 2024 2:05 pm
Forum: Personal Consumer Issues
Topic: Wisdom of cross-country, one-way RV rental (with a cat)
Replies: 37
Views: 3141

Re: Wisdom of cross-country, one-way RV rental (with a cat)

Have you traveled with a kitten? Your plan would have been a horrible idea with all but one of the cats that I have owned. I did need to do regional travel with 3 of my cats at times. Can not imagine trying to carry out your plan. I doubt a cat would be allowed in a rented RV. Hotel pet policies can vary but acceptance of dogs is much higher than cats. They can cause damage with scratching and urinating even if they do not at home. They can hide to make it hard to find them. If you do find them, you may have trouble getting a hold of them. With 6 humans, I am not sure it will be possible to keep the cat from getting out of the RV and exploring on their own. You can not give them free access to any compartment that includes the driver or the...
by Katietsu
Mon Mar 11, 2024 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Quick way to efile an extension?
Replies: 16
Views: 816

Re: Quick way to efile an extension?

Free TT does it free. You can also just go on irs.gov and make an extension payment of $1 You mean at directpay? I tried that but had to attest I was the taxpayer requesting an extension and it didn't sit right with me. . Yes she's MFS and has paid more than enough to do this without an extension payment. I think you may misunderstand. You are requesting an extension by the act of making the extension payment. You are getting the extension in what takes me under 30 seconds. I made a $1 payment this year because I too had already paid enough. My refund will just be $1 more. It sounds like OP is doing this on behalf of the taxpayer and is uncomfortable making an attestation online with IRS that the person clicking the keys IS the taxpayer. O...
by Katietsu
Mon Mar 11, 2024 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Quick way to efile an extension?
Replies: 16
Views: 816

Re: Quick way to efile an extension?

montanagirl wrote: Mon Mar 11, 2024 7:05 am
nalor511 wrote: Sun Mar 10, 2024 8:32 pm
yogesh wrote: Sun Mar 10, 2024 8:31 pm
montanagirl wrote: Sun Mar 10, 2024 8:27 pm
yogesh wrote: Sun Mar 10, 2024 8:25 pm TurboTax extension filing was rather smooth for me.
Nice. How much did it cost?
Free
TT does it free. You can also just go on irs.gov and make an extension payment of $1
You mean at directpay? I tried that but had to attest I was the taxpayer requesting an extension and it didn't sit right with me.
.
Yes she's MFS and has paid more than enough to do this without an extension payment.
I think you may misunderstand. You are requesting an extension by the act of making the extension payment. You are getting the extension in what takes me under 30 seconds. I made a $1 payment this year because I too had already paid enough. My refund will just be $1 more.
by Katietsu
Sun Mar 10, 2024 11:51 am
Forum: Personal Finance (Not Investing)
Topic: How best to make up for the failure to file a tax return
Replies: 38
Views: 2730

Re: How best to make up for the failure to file a tax return

Just send the return with no penalties. The IRS may not bill you at all for something like this. If son received a bill, you can request a penalty waiver at that point and it will be read.
by Katietsu
Sat Mar 09, 2024 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: When do the negatives of Pro Rata outweigh the positives of a Backdoor Roth?
Replies: 11
Views: 1212

Re: When do the negatives of Pro Rata outweigh the positives of a Backdoor Roth?

Contributions are reported based on the tax year associated with the contribution. The planned recharacterization makes it as if the contribution has always gone to the traditional IRA. So you will report the 2023 contribution on the Tax Year 2023 Form 8606. Similarly, you will report the 2024 contribution on the Tax Year 2024 Form 8606.

Conversions are reported in the year they occur. So no conversions will be reported on the income tax forms being completed now. I think it is easier to complete the tax reporting if you remember that the IRS views the contributions and conversions as separate events.
by Katietsu
Fri Mar 08, 2024 7:25 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1078
Views: 157215

Re: Report Gain from Selling T-Bill as Interest Income?

Did you sell the T bill before its maturity date? Or did you hold on to it until it matured? These two situations will show differently on the tax forms.
by Katietsu
Fri Mar 08, 2024 6:07 pm
Forum: Personal Consumer Issues
Topic: Drop Homeowner Ins- Self Insure
Replies: 63
Views: 4732

Re: Drop Homeowner Ins- Self Insure

I recently went through this process. My umbrella policy requires $100,000 personal liability associated with the property. I must provide the declaration page for the homeowners to the insurance company with the umbrella policy. I looked at different deductible amounts and that made little difference. However, I did get a quote for what they called “bare bones.” It did have $500k liability. Still had same dollar coverage for dwelling. But personal property coverage was lower. There was no coverage for things like outbuildings, sewage back up and living expenses if displaced. It was half the cost and seems to adequately meet my needs on this particular property. Maybe ask an independent agent to look at less comprehensive coverage that stil...
by Katietsu
Fri Mar 08, 2024 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: How to make sure 2024 does not add 2 RMD on one 1099
Replies: 5
Views: 452

Re: How to make sure 2024 does not add 2 RMD on one 1099

Mr.D315 wrote: Fri Mar 08, 2024 4:40 pm My mother missed her RMD for 2023; I think I have how to work that for this tax year 2023, but how do I make sure Vanguard makes her 2024 1099 RMD correctly?


Thanks,
What do you think the way to work that for 2023 would be?

You will need a Form 5329 for 2023. However, the amount withdrawn in 2024 will be taxable income for 2024 regardless of whether you are withdrawing to meet 2023 RMD requirements or not. Do not confuse this situation with removing an excess contribution which is reported relative to the tax year even if withdrawn the following year.
by Katietsu
Fri Mar 08, 2024 1:19 pm
Forum: Personal Consumer Issues
Topic: Longtime iPhone user looking at Pixel - what to know?
Replies: 60
Views: 5036

Re: Longtime iPhone user looking at Pixel - what to know?

The problem is not that the message is green. The problem is that there are practical implications.

I just sent a video of my niece to my family group. It would not initially send because one sibling uses an Android. I had the remove her from the group. Then I had to create separate clips to send her the video in parts. I am not sure she even received them then.
by Katietsu
Thu Mar 07, 2024 3:59 pm
Forum: Personal Consumer Issues
Topic: Home phone (copper) solution for parents
Replies: 26
Views: 2672

Re: Home phone (copper) solution for parents

Last time that I checked, Ooma supported using a fax machine.
by Katietsu
Wed Mar 06, 2024 10:33 pm
Forum: Personal Investments
Topic: 1099 R - Roth IRA conversion and closure
Replies: 10
Views: 1210

Re: 1099 R - Roth IRA conversion and closure

You will have taxable income from the conversion. The full $6500 will not be taxed but about 80% of it probably will be. You will have a basis in your traditional IRA that can reduce your taxes in the future should you convert or withdraw from the traditional IRA. The Roth withdrawal will not create taxable income on the $6500. However, there will be a 10% early withdrawal penalty on the same amount that was taxed assuming you are under 59.5 yrs old.
by Katietsu
Wed Mar 06, 2024 5:55 pm
Forum: Personal Consumer Issues
Topic: Blackout shades for bedroom
Replies: 30
Views: 2239

Re: Blackout shades for bedroom

Very happy with the blackout shades that I just purchased at Ikea. They were less expensive and much nicer both than my previous purchases from the Home Depot type stores.
by Katietsu
Wed Mar 06, 2024 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Etrade 1099 issues again. [Incorrect, e.g. missing T-bill interest]
Replies: 58
Views: 5824

Re: Tax Issue: Etrade 1099-INT Heads Up

I was made aware that this was coming by a few bogleheads who keep track of their interest and dividends better than either I or Morgan Stanley does.


viewtopic.php?p=7705781
by Katietsu
Mon Mar 04, 2024 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Helping mom with finances - how do I get access?
Replies: 48
Views: 4012

Re: Helping mom with finances - how do I get access?

To get back to your original post, I would strongly consider the POA regardless of whatever other actions are taken. Having a POA is not an indication of your mother’s competence. In fact, my spouse has never had to use the POA that was put in place for his parents even though it has been 25 years. If he did attempt to use it at this point even for informational purposes, his parent would be quite unhappy. Unfortunately, I had to scramble to get a POA in place for my parents due to an acute medical event. I have had agent authorization for my spouse’s retirement accounts since we were about 40. I could view, trade and discuss the accounts but not withdraw. More recently, we set up DPOAs in our fifties. I only provide these details to let yo...
by Katietsu
Mon Mar 04, 2024 9:41 am
Forum: Personal Finance (Not Investing)
Topic: How to convince Turbotax that my 1099-R distribution is not taxable?
Replies: 12
Views: 1533

Re: How to convince Turbotax that my 1099-R distribution is not taxable?

I am not familiar with TT Online for more complex return issues. The TT download has an IRA worksheet where you can go in and pretty easily enter previous contributions, conversions and distributions. I did so about 5 years ago when I committed to using TT for the foreseeable future. The worksheet updates automatically each year as long as I enter all the relevant information during the current year return preparation process. I also keep a folder, paper in my case, with all the 5498s, 8606 forms, 1099-Rs and record of deductible contributions. There is also a handwritten running total of the relevant numbers. (I am trying to decide if I should keep these records and keep them up, after I turn 59.5 years old.)
by Katietsu
Sun Mar 03, 2024 10:03 am
Forum: Personal Investments
Topic: Questions from Experience with (Attempted) TIAA Roth Conversion
Replies: 25
Views: 2421

Re: Questions from Experience with (Attempted) TIAA Roth Conversion

Between my spouse and I, we have had 403b accounts with 3 providers. We have moved funds from two, that are not TIAA. Both required spousal consent with a witnessed signature. They both also required a phone call to get the form. This last one was also clear that the form created would only be valid for 60 days. So as unwieldy as the TIAA process seems, it does not appear to be unique to TIAA.
by Katietsu
Sat Mar 02, 2024 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: Filing taxes for late Required Minimum Distribution
Replies: 7
Views: 778

Re: Filing taxes for late Required Minimum Distribution

There are two parts to the missed RMD. The easy one to address is the withdrawal in 2024. It will be reported a year from now on your 2024 taxes as will the associated withholding. It will be treated like any other distribution. In fact, it will just be more dollars on the same 1088-R that you will be getting for the 2024 RMD. The second part is the penalty for missing the withdrawal in 2023. This you will need to address with the 5329. The rules have changed for 2023. I believe your choices would be to pay the new 10% penalty for missed RMDs corrected within 2 years or to request a waiver for reasonable cause following the same procedure that has been used in years past. It is possible that the IRS will be less likely to grant waivers now ...
by Katietsu
Sat Mar 02, 2024 7:33 pm
Forum: Personal Finance (Not Investing)
Topic: Questions on 1099-Rs from Fidelity for Backdoor Roth Conversion
Replies: 22
Views: 1386

Re: Questions on 1099-Rs from Fidelity for Backdoor Roth Conversion

Yes you can use the online product. But it will cost you. Maybe more than you expect. You can decide the cost is worth the ease of using a familiar product. Or you can take this opportunity to switch to one of the lower cost products such as FreetaxesUSA.
by Katietsu
Fri Mar 01, 2024 4:20 pm
Forum: Personal Investments
Topic: PlanVision vs Maxifii/NewRetirement/ProjectionLab
Replies: 30
Views: 2521

Re: PlanVision vs Maxifii/NewRetirement/ProjectionLab

I think each has their strengths and weaknesses, and it depends on your situation and what you plan to get out of it - e.g. Roth conversions, modeling different income streams, projecting expenses, etc. The advantage with Planvision, as you mention, is that you can talk to someone in case you aren't sure if you covered all bases. When I get to the stage when I will need a tool for executing my retirement, I plan to use Planvision, Pralana and Maxifii - all together for the first year to see which one works for my needs. Thanks. My wife and I are in our 30s with two pre-school aged kids and planning for a third. We make a good living and put 20% of gross towards retirement, so I know we’re saving enough. I’m mainly interested in modeling th...
by Katietsu
Wed Feb 28, 2024 10:41 am
Forum: Personal Finance (Not Investing)
Topic: TIAA 2/3 option versus 50%/75% survivor
Replies: 8
Views: 927

Re: TIAA 2/3 option versus 50%/75% survivor

That is interesting. I have not heard of it. But I am not sure why you are considering it a no brainer based on when you die. Isn’t there a significant savings with the 2/3 option for TIAA if your wife dies before you, especially well before you? For instance, if your wife dies shortly after you start the annuity, your monthly amount drops to $2983 for potentially 25 plus years. Look at the numbers again, for instance, for your wife passing away at 5 years and you living another 20 years.
by Katietsu
Sun Feb 25, 2024 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Find it confusing to leverage AOTC - 529
Replies: 26
Views: 2621

Re: Find it confusing to leverage AOTC - 529

You can use the full amount of tuition to claim the AOTC or the LLC credit. If still eligible for AOTC, you can also add in cost of books and mandatory supplies. If this is a bachelor’s degree and this semester was during the fifth calendar year, all four years of AOTC may have been claimed already. You are right that you can not exclude all 529 distributions from income and also use those funds to claim an education credit. But you can include a pro rated part of the distribution that represents earnings in your income and claim the credit on the distribution. There is no penalty just extra income. It sounds like Turbotax may be doing this correct. If you look at IRS Pub 970 pages 45-47, this may make more sense. There is a very on point e...
by Katietsu
Sun Feb 25, 2024 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question - Neglected to Report Roth Conversion
Replies: 17
Views: 1389

Re: Tax Question - Neglected to Report Roth Conversion

In 2023, I did a small ($100) Roth conversion to start the Roth Clock. I e-filed my federal taxes yesterday (I owe a few thousand $), and after filing, I realized that I had not reported the $100 Roth conversion. I think the reason I did not report it was that Taxact did not prompt me for a Roth Conversion - only a Roth contribution - which I entered as $0. (In other words, I did not think it was appropriate to report the conversion as a contribution. I may have been wrong on that.) I would like to pay the small taxes due on the $100 conversion. Is it necessary for me to file an amended return, or would it be sufficient just to compute the tax due and add that amount to the payment I make to the Treasury? they will likely refund the overpa...
by Katietsu
Sun Feb 25, 2024 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question - Neglected to Report Roth Conversion
Replies: 17
Views: 1389

Re: Tax Question - Neglected to Report Roth Conversion

Did you get a 1099-R associated with this IRA? Were you over 59.5 yes old? If so, the 1099-R will be the same as any withdrawal regardless of what you did with the money. Is there anything on Form 1040, line 4?