Bogleheads.org

gasdoc

I use Retirement Planner Plus, and really find it a useful tool. I have not used the Beta version Roth Conversion tool, though, so I can't comment on that specifically. They also have a fairly primitive Monte Carlo beta version that I find useful in combination with the rest of the planner. Imn othe...

gasdoc

I would consider exchanging the annuity for one that is income only. Then use the current value of it as a substitute for a portion of the bond part of your portfolio. As a substitute for bonds, a basic income stream annuity is actually an efficient use of funds, and it gives you some longevity insu...

gasdoc

If it's passive income reported on Schedule E then you likely are not eligible. If it's business income reported on Schedule C then maybe. Are you sure it's Schedule C? That would be unusual for what I understand your case to be. I just looked back at last years taxes, done by my CPA... it is indee...

gasdoc

If it's passive income reported on Schedule E then you likely are not eligible. If it's business income reported on Schedule C then maybe. Are you sure it's Schedule C? That would be unusual for what I understand your case to be. I just looked back at last years taxes, done by my CPA... it is indee...

gasdoc

Sorry to hear about your situation. I don't believe landlords were eligible for PPP1 and that criteria hasn't changed for PPP2. Is your physician income W-2 or something else? May qualify for PUA or PPP if not W-2. My physician income is as an independent contractor, not W-2, and the decrease does ...

gasdoc

Is your second home rental set up as an independent business, registered, licensed, etc as such? I believe it is set up simply as a "schedule C," if that makes sense. I don't believe it is registered as a business specifically in any way. I am an independent contractor, a sole proprietor ...

gasdoc

I am a physician with an income that is down about 20% due to Covid19. I have a second home that I rent out all but three weeks per year (two weeks for personal use and one for maintenance). According to the recent guidelines for the second act of the PPP, one of the requirements to qualify is that ...

gasdoc

cheese_breath, I too have enjoyed your posts for many years, and am sorry for your loss. It looks like this thread has run its course- judging by your last thank you statement. I did want to mention that Clark Howard frequently also recommends funeral and cremation societies as a way to cut costs. W...

gasdoc

I think the risk and transaction costs are too high to buy a house with a 3 year commitment. If you told me 7-10 years, the answer might be different.

gasdoc

gasdoc

Consider Roth conversion starting in 2021, in order to get pretax money over to post tax bucket prior to interest rates increasing down the line.

gasdoc

gasdoc

My perspective is from being married to a case manager at our local medical center. She, and all the other case managers, despise Medicare Advantage. The reason- while it is possible to check to see if your favorite provider is on the panel, there is no way to check every possible occurrence. For e...

gasdoc

My perspective is from being married to a case manager at our local medical center. She, and all the other case managers, despise Medicare Advantage. The reason- while it is possible to check to see if your favorite provider is on the panel, there is no way to check every possible occurrence. For e...

gasdoc

My perspective is from being married to a case manager at our local medical center. She, and all the other case managers, despise Medicare Advantage. The reason- while it is possible to check to see if your favorite provider is on the panel, there is no way to check every possible occurrence. For ex...

gasdoc

I submitted my forgiveness form, the EZ one, a couple of weeks ago, and have heard nothing.

gasdoc

gasdoc

Even a dedicated a DIY retirement planner benefits from a second set of eyes on the plan one works out. I second the idea of putting all the numbers together and having a session with fee for service fiduciary. I will mention that buying LTCI at age 74 is going to be very expensive if it is obtaina...

gasdoc

I'm a sole proprietor. For ease-of-numbers purposes, I'll say I got $12,000 in PPP. I also got the $1,000 EIDL grant, so that reduces my forgivable by that amount. When I got my PPP in mid-May, the bank told me I had to take all the money in owner compensation/pay by June 30. So I drew it out over ...

gasdoc

retiredjg wrote: ↑Thu Oct 01, 2020 2:39 pm If you remember, please send up an update - I'd be interested in hearing your CPA's thoughts on this.

I promise to report back.

gasdoc

gasdoc

If your mass of IRAs is large, you will pay tax on most of that $6k. Let's say that 90% of it is taxed. You will pay tax on $5,400 with your 2020 taxes and going into the next year, you will have $600 basis left in your mass of IRAs. In the OP's situation, the basis remaining will be the same as th...

gasdoc

I like your line of thinking. But I did do that IRA contribution in January. With my income, I am not eligible to make a deductible IRA contribution, right? So, don't I have to call the contribution non-deductible to make it legal? I appreciate the time you are taking with this, retiredjg. Yes, tha...

gasdoc

If your mass of IRAs is large, you will pay tax on most of that $6k. Let's say that 90% of it is taxed. You will pay tax on $5,400 with your 2020 taxes and going into the next year, you will have $600 basis left in your mass of IRAs. In the OP's situation, the basis remaining will be the same as th...

gasdoc

I used deductible (pre-tax) funds to purchase a deferred income annuity. It has no cash value to me currently, and will payout an income stream starting in about 5 years. I would like to roll my other existing pre-tax IRA assets into a solo 401K to make doing a backdoor Roth conversions more effect...

gasdoc

If gasdoc builds up some basis in IRA through using the backdoor procedure as s/he intends, some of the taxable income will eventually be offset by that basis. That makes sense. I am already cutting back, and will be retiring fully in just over two years. I will not be building up a significant bas...

gasdoc

That leads to the next question. How much of each annuity payment will be a non-taxable return of basis? The annuity was bought with pre-tax money from an IRA. So it will all be taxable. If gasdoc builds up some basis in IRA through using the backdoor procedure as s/he intends, some of the taxable ...

gasdoc

I believe that OP said it is inside an IRA. This is my fault. That's what I thought at first too. However, I believe gasdoc took pre-tax money from an Individual Retirement Account and put it in an Individual Retirement Annuity . Both are considered IRAs for line 6 of Form 8606 (and maybe all purpo...

gasdoc

retiredjg wrote: ↑Wed Sep 30, 2020 11:35 am That does seem to solve the problem. Thanks for letting us know!

gasdoc

OK. I spoke with my CPA this morning and also with New York Life, the custodian for the annuity. The CPA agrees that we should value the annuity, and that value should come from New York Life. The rep at New York Life says that the cash value of the policy is $0.0, but the company sends out a "...

gasdoc

Yes, how do they value the annuity? I have seen several BH experts (professionals like Alan S, but perhaps not him specifically) state that valuing an annuity (in that specific case, for RMD purposes) can only be done by the issuer due to the complexity of the calculations. So I suspect the only wa...

gasdoc

Instructions for Form 8606 (2019) | Internal Revenue Service says "For purposes of Form 8606, a traditional IRA is an individual retirement account or an individual retirement annuity." Still need to determine the value on 31-Dec for the annuity.... Yes, how do they value the annuity? I u...

gasdoc

I don't know that I agree with the annuity being inside the IRA... Clearly, this is the first thing that has to be cleared up. No conversation is worth your time until this is known. Officially the 'A' in IRA stands for Arrangement. Publication 590-A: Kinds of traditional IRAs . Your traditional IR...

gasdoc

Retiredjg, I definitely am not disagreeing with you- I am a far cry from being an accountant. I am just remaining hopeful. I am waiting for word from my (researched) CPA, and I am also waiting for an email to the service department of New York Life. I'll post when I get more information. Thanks! gas...

gasdoc

It sounds to me like you didn't "roll" any money out of an IRA. I think you bought a deferred income annuity inside the IRA. I think you should not use the backdoor since you have an IRA that cannot be rolled into your 401k. Any backdoor procedure would have to be pro-rated with it. Your ...

gasdoc

...It has no cash value to me currently, and will payout an income stream starting in about 5 years... gasdoc If you purchased the annuity with pre-tax funds than it sounds like it is part of an IRA, unless you took a distributon from the IRA and paid all income taxes (and penalties) and then bough...

gasdoc

I also found this, which perhaps helps with valuation methodology. Not really on point because If I am reading the OP correctly, you are transferring from an IRA to a solo 401K so you can otherwise do Roth conversions, you are not converting the deferred annuity or the IRA to Roth. Upon a conversio...

gasdoc

HueyLD wrote: ↑Tue Sep 29, 2020 2:50 pm OP,

Is the deferred income annuity a QLAC?

HueyLD,
It is not.

gasdoc

gasdoc

Where is the deferred annuity held? In your IRA? For example, is it listed in your account summary for the IRA? Or is it in it's own separate account now? the reason I ask... if it's still in the IRA, it has some value even though not paying out for a few years... so could mess up a backdoor IRA. I...

gasdoc

...It has no cash value to me currently, and will payout an income stream starting in about 5 years... gasdoc If you purchased the annuity with pre-tax funds than it sounds like it is part of an IRA, unless you took a distributon from the IRA and paid all income taxes (and penalties) and then bough...

gasdoc

...It has no cash value to me currently, and will payout an income stream starting in about 5 years... gasdoc If you purchased the annuity with pre-tax funds than it sounds like it is part of an IRA, unless you took a distributon from the IRA and paid all income taxes (and penalties) and then bough...

gasdoc

I have been looking all over the internet, and my accountant is not sure. The annuities guy at Fidelity, where I bought it, doesn't seem to even understand the question. I hope to get some help here!

gasdoc

gasdoc

I used deductible (pre-tax) funds to purchase a deferred income annuity. It has no cash value to me currently, and will payout an income stream starting in about 5 years. I would like to roll my other existing pre-tax IRA assets into a solo 401K to make doing a backdoor Roth conversions more effecti...

gasdoc

Until I hear something different, I am planning as though the annuity is its own entity. I have seen it referred to as "rolling the IRA Into an annuity," and I'll try to clear out the IRA by setting up a solo 401k.

gasdoc

gasdoc

FiveK, thanks for your help. I need to check with Fidelity regarding 1) accepting a rollover from my Vanguard IRA into a Fidelity 401K, and 2) the status of that annuity, and if it is "in" the IRA, maybe it could be moved to the 401k? I really don't want to have to deal with this every tim...

gasdoc

If I were to transfer the taxable amount to a 401K, does the annuity purchased with IRA money play any role? Thanks. Is the annuity still within the IRA? All I know is that I purchased the annuity through Fidelity, and I had to transfer the money from an IRA at Vanguard to an IRA at Fidelity. They ...

gasdoc

Thank you. The balance of the IRA is around $375K, but there is also an income annuity purchased with IRA funds ($1M) . I am afraid I have really screwed up. Does this complicate my returns going forward by leaving a mix of pre and post tax money in the IRA, or is this a 2020 year problem only? Tha...

gasdoc

Is it relevant that there were no other IRA funds at the time of the backdoor Roth done earlier this year, or does it only matter that there are IRA funds at the end of the year? What do I do now???? Thank you in advance! Fill a draft Form 8606 for what you expect to file. It's doable by hand, or s...

gasdoc

I believe the IRA should have zero balance on Dec 31 of the year in order to avoid the pro-rate rule. So, you either pro rata on the previous conversion if you don't convert more or you convert the rest. Another option is rolling it again into another pre-tax like a 403b etc if that is possible to ...

gasdoc

Since 2010, I have done backdoor Roth conversions, and I understand that it is not worth doing if I have pretax money already in a traditional IRA. In January of this year (2020), I did my typical backdoor Roth conversion, and I had no money in traditional IRA's at that time. This summer, though, I ...

gasdoc

Could you tell me why you went ahead with an annuity? My understanding is to not mix investing with insurance, but I am curious to hear what you have to say about that point. This was a basic SPIA, though it is deferred until I turn 65. There are various threads about them. A basic income annuity i...

gasdoc

Would be interested to hear from physicians who retired at younger ages, less than 60, about the emotional impact of losing the MD identity after so many years preparing for and living that identity. Seems like so many MDs can't let go of that. Retired from medicine 11 months ago at age 59. I made ...

gasdoc

I retired about 5 yrs ago. I let the DEA aspect lapse, but kept the state license in case I had to write the occ rx. My CME is taken care of by the free medical publication I get due to being retired. Licensure costs about $300 a year. Will probably let it lapse next go round. Does this mean you ha...

gasdoc

:happy I left at 42 and was very glad to be rid of the endless days at a headlong sprint that ran into sleepless nights with incessant beeper calls. The only emotion I felt was relief. What have you done since retiring, if I may ask? gasdoc You have probably read this story elsewhere, gasdoc, but: S...

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