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Your CFO should not be your CFO for doing that.
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Oct 24, 2013 20:42
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A couple years ago I withdrew some contributions from a Roth IRA. I guess I didn't file correctly, because the IRS just sent me a bill for $1500 for taxes I owe on that as income. Is that right? I thought I already paid taxes on that.
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Oct 24, 2013 21:04
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ETB posted:Your CFO should not be your CFO for doing that. I don't know about that. A CFO that painfully risk averse is probably really good at his job.
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Oct 24, 2013 21:19
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three posted:A couple years ago I withdrew some contributions from a Roth IRA. I guess I didn't file correctly, because the IRS just sent me a bill for $1500 for taxes I owe on that as income. Is that right? I thought I already paid taxes on that. You can only pull money back out on contributions. So if you put in 5K 3 years ago and it grew to 8 or something, and you pulled 7, you owe taxes (and are perhaps penalized further) on that extra 2K.
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Oct 24, 2013 22:04
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Minty Swagger posted:You can only pull money back out on contributions. I only withdrew contributions so I should dispute the tax charge, right? I guess since I didn't file properly they wouldn't know it was contributions?
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Oct 24, 2013 22:26
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That I don't know, you may want to approach the CPA or group that assisted with your taxes! Could be a misunderstanding on their part though yeah.
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Oct 24, 2013 22:35
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Minty Swagger posted:You can only pull money back out on contributions. How does this work for things that lost value? I'm going to need to take about 2.5k out of my Roth IRA for 2013 since I didn't make enough W2 income. I've got some stocks in my IRA that have crashed and I don't think they are coming back and was considering selling anyway. Despite having almost no income, I have a sizable amount of tax to pay from a Traditional 401k to Roth IRA rollover. I converted it this year since I'll likely only pay up to 15% for it. I've got the savings to cover it, but am wondering if there is something fancy I can do since I have to withdraw from my IRA at the same time. edit: I misread the conditions for underpayment penalty and will have to pay ~$30 for not doing a manual payment when I did the rollover, oops.
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Oct 25, 2013 00:01
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ETB posted:Your CFO should not be your CFO for doing that. He is a dumb-dumb that told us our insurance premiums are going up because Obamacare and forgot to deduct anyone's vacation hours for the entirety of this year (or set up my vacation hours). Our 401k is through Paychex and is terrible. He is our "CFO" just because he handles our finances, we are a fairly small research non profit. Still have enough terrible management stories from my non-profit work to fill a book.
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Oct 25, 2013 00:17
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Xenoborg posted:How does this work for things that lost value? I took money out of a Roth IRA that was down ~8 years ago. Vanguard sent me a form showing the withdrawal with a letter saying the IRS had received one as well. As I recall, there was a column that said taxable disbursements: $0. I included the Vanguard form and got my refund as fast as normal.
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Oct 25, 2013 00:31
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bam thwok posted:I don't know about that. A CFO that painfully risk averse is probably really good at his job. kaishek posted:He is a dumb-dumb that told us our insurance premiums are going up because Obamacare and forgot to deduct anyone's vacation hours for the entirety of this year (or set up my vacation hours). Our 401k is through Paychex and is terrible. He is our "CFO" just because he handles our finances, we are a fairly small research non profit. Still have enough terrible management stories from my non-profit work to fill a book. Maybe you should take over and set up Vanguard for your company. We can be your CFO. 
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Oct 25, 2013 02:00
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three posted:I only withdrew contributions so I should dispute the tax charge, right? I guess since I didn't file properly they wouldn't know it was contributions? Look at the tax documents your brokerage company has for your distribution. It is probably an error on their end. If they didn't report anything, then you need to look into what you did on your tax return.
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Oct 25, 2013 05:01
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ETB posted:Maybe you should take over and set up Vanguard for your company. We can be your CFO. Hah! I'm already filling that role for him - no one understands our health insurance either, so I get asked for advice when people enroll. I think BFC would do a significantly better job. Does anyone else use Paychex for their 401k? I am fairly sure that you can actually choose which funds go in for your employees to choose, but our CFO says he can't change the fund selection. I, of course, don't trust him.
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Oct 25, 2013 05:07
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I'm about to pay off my student loans, so now is the perfect time to start saving for retirement. My work only offers up to 50 dollars matching funds per month for their Roth 401(k) and regular 401(k) plans. I have about $6,000 in savings, and was thinking of starting one of those $3,000 Roth portfolios from Vanguard. Also, I'm thinking of looking for a new job next year, so it might not be worth starting a 401(k) if I'm just gonna roll it over in a few months anyway. With such low matching funds and a possible job change, is it even worth signing up for my work's 401(k) plan or should I just start out exclusively with the Vanguard plan?
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Oct 25, 2013 19:48
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Lee Harvey Oswald posted:I'm about to pay off my student loans, so now is the perfect time to start saving for retirement. My work only offers up to 50 dollars matching funds per month for their Roth 401(k) and regular 401(k) plans. I have about $6,000 in savings, and was thinking of starting one of those $3,000 Roth portfolios from Vanguard. Also, I'm thinking of looking for a new job next year, so it might not be worth starting a 401(k) if I'm just gonna roll it over in a few months anyway. With such low matching funds and a possible job change, is it even worth signing up for my work's 401(k) plan or should I just start out exclusively with the Vanguard plan? Personally I think you should sign up for the 401(k). $50 is $50, free money. You're "thinking of looking" for a new job next year. Take what you can get/save what you can save while you can. Rollovers are easy.
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Oct 25, 2013 20:13
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What are some good Vanguard funds that have a minimum of $1,000? The ones I looked at last had higher minimums ($3,000).
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Oct 26, 2013 03:06
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The only funds with a $1000 minimum are the Target Retirement funds and the STAR fund: https://personal.vanguard.com/us/funds/snapshot?FundId=0056&FundIntExt=INT Then, any fund available as an ETF essentially has no minimum, only that you have to buy in share increments.
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Oct 26, 2013 03:22
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Lee Harvey Oswald posted:I'm about to pay off my student loans, so now is the perfect time to start saving for retirement. My work only offers up to 50 dollars matching funds per month for their Roth 401(k) and regular 401(k) plans. I have about $6,000 in savings, and was thinking of starting one of those $3,000 Roth portfolios from Vanguard. Also, I'm thinking of looking for a new job next year, so it might not be worth starting a 401(k) if I'm just gonna roll it over in a few months anyway. With such low matching funds and a possible job change, is it even worth signing up for my work's 401(k) plan or should I just start out exclusively with the Vanguard plan? Start the 401k with your current employer. Then, when you leave, talk to the folks at Vanguard to roll it over into an IRA: Roth 401k -> Roth IRA, or traditional 401k -> traditional IRA. I have both a traditional and Roth IRA so that I can rollover funds from whatever 401k that I have. If you don't contribute to a 401k this year, you can't go back and back-contribute next year.
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Oct 26, 2013 03:53
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three posted:A couple years ago I withdrew some contributions from a Roth IRA. I guess I didn't file correctly, because the IRS just sent me a bill for $1500 for taxes I owe on that as income. Is that right? I thought I already paid taxes on that. edit: See ntan1's reply below. rooth baybee fucked around with this message at 01:56 on Mar 27, 2017 |
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Oct 28, 2013 02:33
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So my employer offers both a traditional and Roth 401k. I am wanting to roll over the Roth portion of my 401k over to Vanguard and diversify my portfolio, but am I able to do this while I am still employed by my current company? On the same page, I am also considering a traditional IRA to minimize my AGI for tax purposes (earning about $100k/year), along with starting up a HSA next year. Any thoughts on whether I should diversify my odds with taxes in the future with a Roth IRA vs. minimizing my AGI with a traditional IRA now?
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Oct 28, 2013 06:29
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KaboomzZz posted:There is a lot of wrong advice on the internet about this. The way I understand it is that your Roth must also be at least 5 years old to withdraw, e.g.: edit: not a CPA/EA/.etc
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Oct 28, 2013 06:58
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KaboomzZz posted:There is a lot of wrong advice on the internet about this. The way I understand it is that your Roth must also be at least 5 years old to withdraw, e.g.: 5 year rule is only for conversions. In the case of a Roth withdrawal, you need to make sure that http://www.irs.gov/pub/irs-pdf/f1099r.pdf was filed by your bank with the correct distribution code, or that you claimed that the money was non taxable when you filed http://www.irs.gov/pub/irs-pdf/f5329.pdf with your tax return. Ask one of the guys in the Tax questions thread for more specifics  ETB posted:So my employer offers both a traditional and Roth 401k. I am wanting to roll over the Roth portion of my 401k over to Vanguard and diversify my portfolio, but am I able to do this while I am still employed by my current company? Usually no, unless your company explicitly allows it. The question on Roth versus traditional IRA generally is a difficult one to answer without deep specifics, as it's dependent on what you personally expect your income will be as you retire.
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Oct 28, 2013 07:39
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ETB posted:So my employer offers both a traditional and Roth 401k. I am wanting to roll over the Roth portion of my 401k over to Vanguard and diversify my portfolio, but am I able to do this while I am still employed by my current company? Since you have a 401k from your employer and make $100k, I don't think you can deduct IRA contributions. I think the only way to minimize your AGI is to throw money at your traditional 401k, but I'm also not an accountant.
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Oct 28, 2013 13:32
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Small White Dragon posted:I believe the 5 year rule only applies to Roth conversions. I called Vanguard today and they're sending me the correct paperwork to provide the IRS. I don't have to pay taxes on any contributions. This issue is my fault for not filing the paperwork correctly, though.
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Oct 28, 2013 16:03
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Just want to thank the thread for illustrating how bad fees can get. My girlfriend has gone to 3 financial advisors in the past year and they all want to charge her from 2-5% just to "manage" her Roth (dump it in some lovely funds). She unwittingly paid a State Farm rear end in a top hat $1k just to transfer her IRA last year. Pretty ridiculous how some of these companies are just out to screw people. I've been coaching her up on the fine print and have her looking at Vanguard and Target Funds today.
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Oct 28, 2013 18:03
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This might be a stupid idea: Due to not working much this year I had low income and have about 15k of "space" left in the 15% marginal tax bracket. I also have some taxable accounts with more than that amount of unrealized gains. The accounts are meant for big non-retirement purposes like a house down payment. I am considering reshuffling 15k of the account to fill in the extra space I have at 15%. It seems like this would save ~1500 by doing it at now 15% vs more likely at 25% or 28% in the future when/if I want to cash it out to buy a house.
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Oct 28, 2013 21:03
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Can someone give me a very concise rundown of redeeming ee bonds? Is it just as easy as going to my financial institution of choice with my ID and information? Or does something get mailed to me?
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Oct 28, 2013 23:25
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http://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds_eeredeem.htmquote:You can cash paper EE/E Bonds at many local financial institutions. We don't keep a list of banks that redeem bonds, so check with banks in your area.
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Oct 29, 2013 01:24
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I actually cashed out a 25 year zero coupon corporate bond that my parents established for me in the '80s. It matured last year at $5000, but I did not collect until this year. Does anyone know how I should account for the principle ($1350 I think in 1987) - is it a simple gift, or because it was established in my name as a minor, does that matter? And how do I treat the interest ($3650 gained by maturity in 2012) for taxation purposes? And do I need to report for this year, or amend last year's filing?
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Oct 29, 2013 03:17
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Guy Axlerod posted:http://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds_eeredeem.htm Ok cool man thanks. It says that you will get an IRS form but will I get a receipt or anything mailed to me? e: these are all pretty small, almost all of them under $200 Frostwerks fucked around with this message at 05:20 on Oct 29, 2013 |
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Oct 29, 2013 05:10
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I have 120k in my 401k at work. I just got a fantastic job offer elsewhere that also has a 401k. Do I roll it over to the new company, roll it to an IRA, leave it where it is and start a new 401k with the new company or what? I want to verify that my financial planner isnt inadvertantly giving me not-so-good advice. She says roll to an IRA. I am unsure if this is partially to keep the money in their company and in their portfolio or if it's the best thing for me to do. Other facts: I'm 30. The 401k has performed very well over the last 10 years. 13% growth not counting my contributions and poo poo. The new 401k is a Wells Fargo thing. Spermy Smurf fucked around with this message at 13:12 on Oct 29, 2013 |
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Oct 29, 2013 13:05
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Rolling it to an IRA is usually the best option unless your old 401k has better investment options available than Vanguard for example, but that isn't too likely. You just probably just roll it over to Vanguard.
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Oct 29, 2013 13:24
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Edit. Wrong thread, nothing to see here.
MussoliniB fucked around with this message at 15:45 on Oct 29, 2013 |
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Oct 29, 2013 15:43
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evilalien posted:Rolling it to an IRA is usually the best option unless your old 401k has better investment options available than Vanguard for example, but that isn't too likely. You just probably just roll it over to Vanguard.
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Oct 29, 2013 16:36
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I read through the OP but I'm still a little confused on what an appropriate amount for my 401k would be. My employer will match 100% up to 3% and 50% up to 2% after that. Is it worth putting over 5% into my 401k? Currently I have it set at 10% but that just seems kind of high to me considering I'm only being matched up to 5%. I asked my brother and he said he only puts 4% in and it seems to be working for him (hes in his late 20s and married). This is my first career job post college and I have no debt, I am 24 years old and single making $55k.
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Oct 29, 2013 16:54
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You said you read the OP, but I'll just repost this snippet because it's important."[panic posted:" post="345722713"] Figure out what you can actually save. If you've been doing 10% for a few months and don't feel tight on cash, you can probably go with that for now. Just do the list in order. 1) Put in 5% to your 401k, because 50 cents on your dollar is still free money. 2) Dump up to 5.5k into a Roth if you have it on hand. You can throw it in all at once or make smaller contributions throughout the year, up to you. The Roth alone is 10% of a 55k base salary, so you may not even max it out this year, depending on your spending/saving habits. If you later find yourself with more money than you need, you can start putting money into unmatched percents in the 401(k). And in case you missed the part where everyone screams "HAVE AN EMERGENCY FUND," HAVE AN EMERGENCY FUND.
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Oct 29, 2013 17:06
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So I can setup a ROTH separate from my 401k? I guess I'll need to look more into that. My current plan is to keep the 401k at 10% (I just set this up so we'll see if it's sustainable) and keep saving for an emergency fund. My goal is to get to $10k (about half way there now) for an emergency fund as soon as possible and then just set that aside. Then start putting more money into my spend it on useless crap fund.
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Oct 29, 2013 17:28
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Popete posted:So I can setup a ROTH separate from my 401k? I guess I'll need to look more into that. My current plan is to keep the 401k at 10% (I just set this up so we'll see if it's sustainable) and keep saving for an emergency fund. My goal is to get to $10k (about half way there now) for an emergency fund as soon as possible and then just set that aside. Then start putting more money into my spend it on useless crap fund.
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Oct 29, 2013 17:32
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Got a general question which somewhat ties in to long-term retirement. My company (88 people) was planning to offer Long Term Disability as a cafeteria option, but at 50% off buying it alone would run me. It is generally accepted that LTD is a extremely good thing for most people to carry, much more so than life insurance (at least this is the opinion of all the doctors and actuaries I know). However, the HR folks were not able to even get ten people interested (the minimum number) so they are not going to add the option for anyone. What are some good ways to convince a bunch of 20 somethings (and a couple of us 30 somethings) that they should sign up?
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Oct 29, 2013 17:50
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There's only a few cases I can think of where keeping your money with them instead of rolling over would be a good idea. Those few cases start with Thrift Savings Plan. Edit: wrt Rollover IRAs v. previous employer 401k necrobobsledder fucked around with this message at 18:31 on Oct 29, 2013 |
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Oct 29, 2013 18:24
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Tai-Pan posted:Got a general question which somewhat ties in to long-term retirement.
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Oct 29, 2013 19:43
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