Search found 12343 matches

by celia
Thu Apr 22, 2021 1:20 am
Forum: Personal Finance (Not Investing)
Topic: Need Cash for Divorce Payout
Replies: 75
Views: 4724

Re: Need Cash for Divorce Payout

I need to come up with $50,000 to pay a lump sum alimony payment. Wife has agreed to take a lesser amount in alimony if it's a lump sum. I have approximately $250,000 in a ROTH IRA and $180,000 in a Traditional IRA. Recently I read about a judge ordering part of an IRA to be re-assigned to the othe...
by celia
Wed Apr 21, 2021 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: Are Roth Accounts Overrated?
Replies: 55
Views: 4506

Re: Are Roth Accounts Overrated?

No. While each case is different, the Roth is underrated. I think there are many more cases where people should have done them but didn't than there are cases where people did them but shouldn't have. +100 If people took appropriate advantage of Roths, we wouldn’t have to keep calling attention to ...
by celia
Wed Apr 21, 2021 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: Gift amount from a joint trust
Replies: 6
Views: 379

Re: Gift amount from a joint trust

If we’re talking about a living trust, this is the same as the trust holding a checking account. One person could write a check for 30,000 or each of them could write a check for 15,000.
by celia
Wed Apr 21, 2021 6:41 pm
Forum: Personal Investments
Topic: Question regarding transferring home to son
Replies: 8
Views: 662

Re: Question regarding transferring home to son

I believe if he gets rid of the house now, the HELOC lender needs to be paid in full now.
by celia
Wed Apr 21, 2021 2:31 pm
Forum: Personal Investments
Topic: Advice on a brokerage trading error
Replies: 13
Views: 468

Re: Advice on a brokerage trading error

Let me try to clarify. I had the advisor enter a future dated transaction - a scheduled withdrawal. Then it was the advisor’s error. The advisor has offered to give me a retention bonus instead of admitting they made a mistake and paying the penalty. This also sounds like the error was because of t...
by celia
Wed Apr 21, 2021 2:10 pm
Forum: Personal Investments
Topic: Advice on a brokerage trading error
Replies: 13
Views: 468

Re: Advice on a brokerage trading error

I still don’t see how they goofed. When you place an order, there is nothing in the entered order to make it execute on a particular date. I would just accept the bonus and use it towards the IRS penalty. If anything, their mistake is in not informing you they can’t hold an order you placed. You eit...
by celia
Wed Apr 21, 2021 1:46 pm
Forum: Personal Investments
Topic: Advice on a brokerage trading error
Replies: 13
Views: 468

Re: Advice on a brokerage trading error

I’ve talked to Vanguard in the past about submitting paperwork early and they replied that they are required to process it on the date it is received (if received while the market was open). So you may be out of luck. You appear to have talked to them on 12/23 (while the market was open) Right? Sorr...
by celia
Wed Apr 21, 2021 1:05 pm
Forum: Investing - Theory, News & General
Topic: Any Reason to NOT max out I Bonds and EE Bonds
Replies: 63
Views: 5435

Re: Any Reason to NOT max out I Bonds and EE Bonds

No. Somebody or something is going to pay tax on all the interest sooner or later. Thank you. As I suspected, for estate planning purposes, instead of having a Treasury Direct account, it would seem better to hold TIPS or muni funds in a taxable account, to be able to get the step-up eventually. Or...
by celia
Wed Apr 21, 2021 12:43 pm
Forum: Personal Investments
Topic: Taxes and RMDs
Replies: 8
Views: 1377

Re: Taxes and RMDs

In retrospect I should have aggressively converted as much as possible into a Roth when I was in a lower tax bracket. Thank you for sharing. I hope everyone who thinks they will be in a lower tax bracket during retirement reads this. Your admonition is sound, but it takes a lot of pension, SS benef...
by celia
Wed Apr 21, 2021 12:04 pm
Forum: Investing - Theory, News & General
Topic: Any Reason to NOT max out I Bonds and EE Bonds
Replies: 63
Views: 5435

Re: Any Reason to NOT max out I Bonds and EE Bonds

My reason for not maxing out ibonds is simply Treasury Direct. Wife and I did the 10K each for several years but after getting locked out of Treasury Direct multiple times (each having to call hem to unlock) I wasn't convinced my wife would be able to get into the accounts in the event something ha...
by celia
Wed Apr 21, 2021 11:44 am
Forum: Investing - Theory, News & General
Topic: Any Reason to NOT max out I Bonds and EE Bonds
Replies: 63
Views: 5435

Re: Any Reason to NOT max out I Bonds and EE Bonds

alluringreality wrote: Wed Apr 21, 2021 10:37 am
watchnerd wrote: Wed Apr 21, 2021 10:33 am How many spouses do you have??
While amusing, they're including the 20 year doubling.
I interpret this as the two new kids would then be adults. Is the “doubling” a “multiplying” process? Ie, instead of one more adult spouse, there could be two more young adult ‘taxpayers’.
by celia
Wed Apr 21, 2021 12:40 am
Forum: Personal Investments
Topic: Taxes and RMDs
Replies: 8
Views: 1377

Re: Taxes and RMDs

I have been using the excess monthly income and excess RMDs (after taxes) to fund my grandchildren’s 529 Plans and to donate to charity. Are you aware of Qualified Charitable Distributions (QCDs)? This is when you give your RMDs or other IRA withdrawals directly to charity (without going into your ...
by celia
Tue Apr 20, 2021 11:55 pm
Forum: Personal Consumer Issues
Topic: Need a good 5th-6th grade math DRILLING book (with LOTS of problems)
Replies: 26
Views: 1627

Re: Need a good 5th-6th grade math DRILLING book (with LOTS of problems)

Do you have any teacher supply stores near you? Also look where home schoolers find workbooks.

As a former math teacher, I agree that more practice is better!
by celia
Tue Apr 20, 2021 11:39 pm
Forum: Personal Investments
Topic: Dad Dying, Son POA to become Executor, Bond Fund to Cash Now?
Replies: 23
Views: 3026

Re: Dad Dying, Son POA to become Executor, Bond Fund to Cash Now?

Should we liquidate the bond fund into cash now, since this is what my husband would have to do anyway as executor? Why would he have to liquidate? Does the will require it? We are dealing with two different states, east coast and west coast, so the details of his gaining the court's reognition of ...
by celia
Tue Apr 20, 2021 11:22 pm
Forum: Personal Investments
Topic: Dad Dying, Son POA to become Executor, Bond Fund to Cash Now?
Replies: 23
Views: 3026

Re: Dad Dying, Son POA to become Executor, Bond Fund to Cash Now?

Best if the $10,000/month out of pocket comes from the IRA, not from a taxable account. Double check me on that. +1 I agree as long as you itemize medical expenses instead of taking the standard deduction. You also need a doctor letter stating he needs nursing home level of care because of his inab...
by celia
Tue Apr 20, 2021 10:04 pm
Forum: Personal Investments
Topic: Recharacterization + Backdoor Roth Tax Question
Replies: 5
Views: 568

Re: Recharacterization + Backdoor Roth Tax Question

One other thing to note is that her conversion did not exceed the $6,000 maximum even if gains are counted. What does this mean? There are no limits as to how much can be converted (other than the amounts you have in tax-deferred accounts). But there **IS** a limit on how much can be contributed . ...
by celia
Tue Apr 20, 2021 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Federal E-File rejected due to Duplicate 1099-R
Replies: 59
Views: 4174

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

This year my spouse and I had 1099-Rs (Roth conversions at Vanguard) for the same dollar amount. The SS # and account # on the 1099-R were different, though, and Turbotax happily entered downloaded those into its internal 1099-R. It also happily e-filed (and return accepted by IRS.) Maybe take a lo...
by celia
Tue Apr 20, 2021 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Recharacterization Tax Questions
Replies: 2
Views: 161

Re: IRA Recharacterization Tax Questions

The tax-preparer and you are solving the over-contribution problem in different ways. She is applying the excess to 2021 so you have that much less to contribute in 2021. But that will be a problem if you over-contribute again this year. (The custodian may not recognized it as a 2021 contribution if...
by celia
Tue Apr 20, 2021 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: How Long Would You Stay in a Boring Government Job?
Replies: 104
Views: 5845

Re: How Long Would You Stay in a Boring Government Job?

I am making it my career mission in government work to get rid of these outside attorneys as much as possible. Ninety percent of our most interesting cases are being handled by outside counsel. Meanwhile I am sitting here combing through public records requests to make sure we have redacted all SSN...
by celia
Tue Apr 20, 2021 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Custodial Roth IRA conversion to Roth
Replies: 8
Views: 346

Re: Custodial Roth IRA conversion to Roth

At what age should I (he) contact Schwab to convert it from a custodial account to a "regular" Roth IRA? I’m being picky here, but don’t want any newbies to be misled. You can’t convert from Roth IRA to Roth IRA. You are re-titling the account or rolling it over to another Roth IRA. If yo...
by celia
Tue Apr 20, 2021 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: How Long Would You Stay in a Boring Government Job?
Replies: 104
Views: 5845

Re: How Long Would You Stay in a Boring Government Job?

But again, ya, 8-4 is not my thing. But as a taxpayer, I expect you to be available during work hours. I hate when I call a govt agency at 4:15 and no-one answers. It seems you should be taking a lunch break on your own time and then need to stay to at least 4:30. As far as ‘boring’ find another ta...
by celia
Tue Apr 20, 2021 4:04 am
Forum: Personal Investments
Topic: Convert to Roth or stay in tax deferred?
Replies: 59
Views: 9515

Re: Convert to Roth or stay in tax deferred?

What were your thoughts on using a HELOC to pay the taxes rather than having to withdraw more from the traditional IRA during the conversion? I stopped following this thread since my last post, but how would you pay off the HELOC if all you have is the tax-deferred money? Seems like you would need ...
by celia
Tue Apr 20, 2021 1:25 am
Forum: Personal Investments
Topic: Backdoor Roth tax question
Replies: 8
Views: 605

Re: Backdoor Roth tax question

Is it rare for accountants to be well-versed in the investment space as well? In a way, you're asking about the difference between an accountant, CPA, tax preparer, and financial advisor. All of them can advise you, but are stronger in one area over another. It's a matter of different training and ...
by celia
Tue Apr 20, 2021 1:06 am
Forum: Personal Finance (Not Investing)
Topic: Permission to retire?
Replies: 38
Views: 6161

Re: Permission to retire?

Why? What happened to make you think this way suddenly? Sudden decisions are seldom optimal. Well it happens. In my case, I have been thinking about retiring for years, but finally about 4 weeks ago, my wife threw in the towel and said, Let's retire! I am busying making my plans real now :-) To the...
by celia
Mon Apr 19, 2021 8:19 pm
Forum: Personal Investments
Topic: How Do I Untangle an Old Commingled IRA?
Replies: 13
Views: 1347

Re: How Do I Untangle an Old Commingled IRA?

I believe the original amount was contributed from post-tax dollars and so I should only be paying tax on the earnings, but after countless amounts of time trying to piece together the history, there was just no way to prove that. It was recorded as pre-tax at the time of the last exchange (I belie...
by celia
Mon Apr 19, 2021 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Choosing a university/college for my son a future Computer Science Major
Replies: 198
Views: 15930

Re: Choosing a university/college for my son a future Computer Science Major

If anyone has any experiences with the "final 3" we're glad to listen. Per the opinions posted above, we're thinking it really won't matter which school he chooses career-wise. At this point I think he is just trying to find the school that will be the best fit. Very good, so far. What I ...
by celia
Mon Apr 19, 2021 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Permission to retire?
Replies: 38
Views: 6161

Re: Permission to retire?

Do you have "permission" from your wife? If you don't have planned activities/hobbies, she may think otherwise. :D I am 61 in May and my my wife is 59. Our net worth is approx. 2.4 Million. 390K in taxable investments. Vanguard A/A approx 70/30 401K 1.55 M usd. A/A is approx 50/50. You def...
by celia
Mon Apr 19, 2021 12:06 pm
Forum: Personal Investments
Topic: Backdoor Roth tax question
Replies: 8
Views: 605

Re: Backdoor Roth tax question

We have an accountant who keeps asking for the 1099-R, so I've been trying to explain in depth why there won't be one. And this is the last year with an accountant... Your accountant is not deficient here, so don't take that out on them. Not many people do Backdoor Roths, so they don't see this ver...
by celia
Mon Apr 19, 2021 11:52 am
Forum: Personal Investments
Topic: 65 y.o. seeks advise on retirement at 70
Replies: 39
Views: 3403

Re: 65 y.o. seeks advise on retirement at 70

"My health care expenses will go down when I get MediCare" (which I currently have); he responded: "No, they won't" Maybe your premiums go down or are more predictable, but as we age, we are more likely to have UNEXPECTED health care issues. Just a "trip and fall" can ...
by celia
Mon Apr 19, 2021 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Conclusions: tIRAs, trusts, and the SECURE Act
Replies: 22
Views: 1937

Re: Conclusions: tIRAs, trusts, and the SECURE Act

OP, I just wanted you to be aware that the SECURE Act may not end up being as you think it is (thought it was). While interesting to get some guidance, I am not sure how many people would actually avail themselves of waiting until year 10 to pull out their tIRA distributions, unless they are in the ...
by celia
Mon Apr 19, 2021 11:04 am
Forum: Personal Investments
Topic: Backdoor Roth tax question
Replies: 8
Views: 605

Re: Backdoor Roth tax question

When reporting the 2020 contribution, will I receive anything from Fidelity, or will the only reporting be the IRS 8606 form? Next January you will receive a 1099-R showing that in 2021, you withdrew $12,000 from the IRA and you will then report that it was converted. You will also get Form 5498 af...
by celia
Mon Apr 19, 2021 2:08 am
Forum: Personal Finance (Not Investing)
Topic: Earthquake Insurance
Replies: 17
Views: 1456

Re: Earthquake Insurance

Current home insurance premium (does not include earthquake coverage) ~$2k / year Cost to add earthquake insurance ~$1,970 / year New total home insurance / year (combined cost of regular + earthquake, total premium per year) ~$4k Deductible on earthquake insurance $118k Our earthquake insurance pr...
by celia
Sun Apr 18, 2021 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion. Vanguard Tax Form Screw-Up?
Replies: 8
Views: 557

Re: Roth Conversion. Vanguard Tax Form Screw-Up?

In 2020, I converted a sum from a Vanguard traditional IRA to a Vanguard Roth IRA. The Form 1099-R I received from Vanguard includes the full sum in Box 2a, "Taxable amount". Box 2b is checked as "Taxable Amount not determined." The Box 7 Distribution Code shows "07". ...
by celia
Sun Apr 18, 2021 7:15 am
Forum: Investing - Theory, News & General
Topic: Don't fuss about 529 accounts. Have your child skip the first two years of college instead!
Replies: 184
Views: 13332

Re: Don't fuss about 529 accounts. Have your child skip the first two years of college instead!

Also consider utilizing community colleges in for first two years. One that is in a county next to us excels in nursing and aeronautics. Although I went to private schools both undergrad and grad (latter on the company dime), I took two summer classes at our community college. One class was good, b...
by celia
Sun Apr 18, 2021 3:27 am
Forum: Investing - Theory, News & General
Topic: Impacts of Lifting Eviction Moratoriums?
Replies: 10
Views: 1603

Re: Impacts of Lifting Eviction Moratoriums?

I think the majority of those who can no longer pay rent will try to find someone else to move in with and share the costs. We would have more multi-generational households, which I think is good for society (grandparents sitting with grandkids while parents work, while keeping an eye on the elderly...
by celia
Sun Apr 18, 2021 3:05 am
Forum: Personal Investments
Topic: When to take Social Security when a pension is linked to it
Replies: 25
Views: 2575

Re: When to take Social Security when a pension is linked to it

This looks like the same decision as other people need to make as to when to start SS, since the two parts are tied together for you. You also state you want to wait until age 70 so you get the maximum. This is particularly beneficial if you might one day have a surviving spouse who would need to co...
by celia
Sat Apr 17, 2021 11:02 pm
Forum: Personal Finance (Not Investing)
Topic: Conclusions: tIRAs, trusts, and the SECURE Act
Replies: 22
Views: 1937

Re: Conclusions: tIRAs, trusts, and the SECURE Act

I don’t know why you would make any trust be a beneficiary of an IRA. (What if she wants to disclaim all/part of it such as if her kids have lower tax brackets?) And how can you account for future tax law changes? And did you notice the changes made under the SECURE Act are not yet understood? This ...
by celia
Sat Apr 17, 2021 10:49 pm
Forum: Personal Consumer Issues
Topic: How to get the best sleep?
Replies: 27
Views: 1932

Re: How to get the best sleep?

I don’t go to bed until I’m tired, but then I’m “out” within a minute and sleep soundly. A dark, cool room helps as well as no recent meals/snacks to finish processing internally. :beer

To make this actionable, sometimes I dream of IRAs and what to do about them. :oops:

Really!
by celia
Sat Apr 17, 2021 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2842

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

Are you sure you don't have to pay tax on the 1099R amount less basis which is 9300 - 7000 = $2300? Then you converted $8300 and have $1000 of basis 'stuck' on Form 8606 to carryforward. You only pay tax on the amount that was converted, which was $8300. The $1,000 that disappeared was not "ba...
by celia
Sat Apr 17, 2021 4:40 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2842

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

One question I have now (and I don't think this is an issue), should I be concerned that on last year's 8606 reporting the $7000 nondeductible tIRA contribution (to record the $7000 basis) the tax guy didn't calculate any year end value as of 12/31/2019 (concerning the recharacterizations of the 20...
by celia
Sat Apr 17, 2021 4:01 pm
Forum: Investing - Theory, News & General
Topic: Vanguard - How America Invests
Replies: 28
Views: 3296

Re: Vanguard - How America Invests

The cash holdings are high enough to generate scorn and ridicule on this forum: 63% equities (stocks), 16% fixed income (bonds), and 21% cash (short-term reserves). [/i] But it is also possible that some/most of that cash is new money coming in regularly, about to be invested . After all, the repor...
by celia
Sat Apr 17, 2021 2:06 am
Forum: Investing - Theory, News & General
Topic: Vanguard - How America Invests
Replies: 28
Views: 3296

Re: Vanguard - How America Invests

are any of you individual security and ETF holders "frequent traders"?? They defined trade in the article: We define “trading” as the act of moving money from one investment option to another within an account. We have over a dozen accounts at Vanguard: Her separate Taxable, His separate ...
by celia
Fri Apr 16, 2021 11:02 pm
Forum: Personal Investments
Topic: Annuity Question, Can it work this way in Roth?
Replies: 18
Views: 1156

Re: Annuity Question, Can it work this way in Roth?

I am wondering. If I were to get an immediate annuity purchased by Roth money in a Roth account can I just have the annuity payment accumulate within the Roth or must the payment be payed as a distribution from the Roth? Can an immediate annuity payment just accumulate in a Roth? This is an interes...
by celia
Fri Apr 16, 2021 2:09 am
Forum: Personal Investments
Topic: Paycheck contribution to University of California (UC) retirement account failed
Replies: 15
Views: 1345

Re: Paycheck contribution to University of California (UC) retirement account failed

It might help to know if this also happened to others in your dept who are classified similarly. In other words, did it happen widely or just to you?
by celia
Thu Apr 15, 2021 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2842

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

I'm not sure how I'll figure out what the total ($4000 + growth) as of 12/31/2020 would have been. The concept to calculate it is simple. Assuming you didn’t add or withdraw any money from the Roth since you made a $7000 contribution, look at what percentage the $7000 was to the whole Roth on the d...
by celia
Thu Apr 15, 2021 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2842

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

Part I --- Nondeductible Contributions to IRAs 6. 0 ---> 5234 (ending value of all IRAs, 4,000+1,234) I have my doubts that Aliengrrl's main question has been resolved. I think (but am not sure) that Katietsu is saying that Line 6 should be $0 after the recharacterization, because the literal value...
by celia
Thu Apr 15, 2021 4:55 am
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2842

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

Your original 2019 contribution was made to a Roth in 2019, but recharacterized in 2020. The basis for 2019 ($7000) was reported on Form 8606 line 1 for 2019 because after a recharacterization, it is the same as if you had contributed to the IRA originally. The year ending value of the IRA didn't ma...
by celia
Thu Apr 15, 2021 12:42 am
Forum: Personal Finance (Not Investing)
Topic: Power of a personal real estate offer letter
Replies: 77
Views: 4800

Re: Power of a personal real estate offer letter

I'm 100% sure it helped us win the bid because my low offer beat out a higher offer from a real estate flipper. How much higher was the other offer? I was told it was $35k higher. Selling price isn’t everything. Maybe the high bidder had contingencies or shaky credit or something that would slow do...
by celia
Wed Apr 14, 2021 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Surviving spouse option to file MFJ equivalent for two years - strategies?
Replies: 4
Views: 480

Re: Surviving spouse option to file MFJ equivalent for two years - strategies?

No children in the picture, so I guess he's going to have to do Single filing starting this year. And I will pass along the Roth conversion idea. If he does the Roth conversion, he needs to be aware of how much space is in his new Single tax brackets. (It is half as much as MFJ tax brackets.) Howev...