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curreyr

curreyr
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  • How You Can Invest Like Warren Buffett [View article]
    I'm one, hate the taxes, no complaints about the weather. Actually, was complaining about the lack of rain, got 6 weeks recently. Clear and 80's this weekend sounds good. (zip == 96003)
    Mar 13, 2014. 08:19 PM | 1 Like Like |Link to Comment
  • The Telltale Chart: Fact Or Fantasy [View article]
    An outcome isn't determined until it's observed.
    (my apologies about this gross simplification to theoretical physicists)
    Mar 13, 2014. 08:15 PM | Likes Like |Link to Comment
  • My Transition To Required Minimum Distributions (RMDs) [View article]
    rashbaugh,

    unmarried ... $5,081.25 plus 25% of the excess over $36,900 (until $89,500)

    a trust ... $3,140.50 plus 39.6% of the excess over $12,150 (no limit).
    Mar 13, 2014. 07:42 PM | 1 Like Like |Link to Comment
  • My Transition To Required Minimum Distributions (RMDs) [View article]
    "What is UBTI? Well, it is definitely the amount stated by the MLPs as being UBTI on their K-1s, but apparently some tax advisors have taken the position that the "business" of the MLP is "unrelated to" the "business" of the IRA, so all of the income (distributions) is UBTI. Whether the IRS views it this way or not, I don't know, but I don't want to get mixed up in a fight over it."

    My understanding, not withstanding other "advisors", is that upon sale of the MLP, the distributions, in totality, 'at that point' become UBTI. This might be what you are describing as well.

    "the MLP is "unrelated to" the "business" of the IRA"
    This is an important point IMO. People refer to "their" IRA, which isn't exactly true. The IRA is its own thing, has a custodian (aka broker), an owner (typically an individual), and beneficiaries. This "thing" could have it's own taxes to pay ...

    "Whether the IRS views it this way or not, I don't know, but I don't want to get mixed up in a fight over it."

    I completely agree! Why bother, the distributions are already tax advantaged, no need to have it in an IRA.
    Mar 13, 2014. 06:51 PM | 2 Likes Like |Link to Comment
  • My Transition To Required Minimum Distributions (RMDs) [View article]
    One thing I think has been mentioned but worthy of re-iteration.
    If you are under 59 1/2 and doing a conversion, make sure you pay the tax from funds outside of the Trad. IRA. Otherwise the tax dollars spent from within the Trad. IRA are considered an unqualified distribution from the Trad. IRA and may be subject to the 10% early distribution penalty.

    You may be able to withdraw from a Roth without penalty to cover the taxes if previous contributions there are qualified (sufficient and in place over 5 years).
    Mar 13, 2014. 01:36 PM | 4 Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    I wonder if I'm considered invested in powershares by holding IVZ? I've been profited from them for sure ;)
    Mar 13, 2014. 12:50 PM | Likes Like |Link to Comment
  • The Telltale Chart: Fact Or Fantasy [View article]
    Larry,
    I think the point a few commenter are making is that TA can be partially self-fulfilling since it can spark the momentum. I suppose it's also just as likely some idiot banging a gong and screaming could spark momentum too.
    Mar 13, 2014. 12:31 PM | Likes Like |Link to Comment
  • What's Your (Dividend Growth) Number?: Part 3 [View article]
    I think it's trading at NAV right now ...
    Mar 13, 2014. 11:11 AM | Likes Like |Link to Comment
  • My Transition To Required Minimum Distributions (RMDs) [View article]
    bionic,
    All IRA's are considered in total when determining the percentage of pre-tax and after-tax contributions prior to conversion (1,2, or 13 doesn't matter). When the conversion is done, the percentage determines the taxable status of the converted $.
    Form 8606 is the worksheet.

    (I was originally going to use numbers for an example, and forgot to edit out the 100k reference)
    Mar 13, 2014. 10:52 AM | Likes Like |Link to Comment
  • My Transition To Required Minimum Distributions (RMDs) [View article]
    Mike,
    It sounds that easy, but not so much.
    Say you have 100k trad ira all tax deferred, you no longer qualify for tax deferred contributions, so you back-door. So, you do an after tax contribution to the trad. Ira you then convert to a Roth. Guess what, you have a tax bill that includes a percentage of the previously deferred trad ira contributions.
    Mar 12, 2014. 10:42 PM | 1 Like Like |Link to Comment
  • Rich And Retired? Don't Buy Dividend Stocks [View article]
    User,
    The 15.3 reference was my mistake, I meant to to refer to the 1.4m you provided, the tax bite on that is likely to be significant before the excess can then be put to further work.

    For a portfolio of this size, it is likely to be structured into trust(s). It's a low threshold for a trust to have top level taxation.

    As to taxation at death, my uncle left his fortune to his brother at death (via will), it was substantial, and was literally nearly halved after all was done.

    As I mentioned earlier, this individual needs estate planning FIRST, investment planning is the easy part.
    Mar 12, 2014. 10:30 PM | Likes Like |Link to Comment
  • My Transition To Required Minimum Distributions (RMDs) [View article]
    David,
    It's actually kinda sad ... make TOO much and you can't contribute a dime.
    Mar 12, 2014. 07:50 PM | 2 Likes Like |Link to Comment
  • My Transition To Required Minimum Distributions (RMDs) [View article]
    Mr. Fish is correct, if you don't have the brokerage do the withholding, you are responsible for paying the estimated tax. If you fail to have a "timely" withholding (IRS considers this quarterly), then you are subject to a penalty.
    Mar 12, 2014. 07:26 PM | 2 Likes Like |Link to Comment
  • My Transition To Required Minimum Distributions (RMDs) [View article]
    bionic,
    Easiest way to think is that IRA holdings (traditional or roth) have NO cost basis. Buy/sell at will (and avoid churn fees).
    The "basis" is $0 when you take a distribution.
    From a Traditional that gain is ordinary income, not long term cap. gain. From a Roth, it's untaxed after 59.5 (prior to that contributions, conversions, and earnings have some governance).

    One note, you can't apply capital losses in the IRA to gains in taxable accounts!
    Mar 12, 2014. 07:23 PM | 1 Like Like |Link to Comment
  • My Transition To Required Minimum Distributions (RMDs) [View article]
    bionic, yes, that is true.
    There is an IRS pub that details the Roth distribution treatment prior to 59.5 (sorry don't have the link at the moment). After that it's all no-tax, no-penalty.

    In general it is in order:
    1) contributions come out, no penalty.
    2) conversions past 5yrs come out, no penalty.
    3) conversions under 5yrs come out, with penalty.
    4) earnings come out, with penalty and tax on the earnings.

    Plan well, and you can fit category 1 or 2 prior to 59.5. At that point enjoy.
    Mar 12, 2014. 07:12 PM | Likes Like |Link to Comment
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