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Hi BC The 5 year wait applies to Roth IRA, you rolled $ from 401k
to Rollover IRA. There are still reasons to discuss with your "CPA"
converting $ from the Rollover IRA to a Roth IRA even though most(all?)
of the funds that went into 401K you imply were after taxes.
sts66 Correct; Vascepa is not an O3 it is THE O3!! ;.)
Hi Noel, That's right, it just keeps getting better! ;.)
Trivia; The breakeven price for your conversion(assuming 37% and 12%)
is/was $9.78 so you were a winner starting 9/24 when it closed at $12.40!!
Hi Noel Here is the math; Conversion tax is 37% of $317,000=$117,290.
Non-conversion tax is 12%(optimistic) of $1,746,000= $209,520.
Of those two taxes which do you want to pay? ;.)
Hi Noel; If you pay the taxes from funds other than the conversion funds
you win! If you pay the tax from the conversion fund(as Crikker does in his example) you lose! The brackets and the increase in stock value
are important in the calculations. You gambled and won, as did I!
Hi Noel; You did the right thing! See my post 176922.
Hi Crikker; 2018 was so exceptional, if you do the math, you
will see that Noelan did the right thing! Paying 37% on conversion at <$4
and now having stock at >$16 gives him more $ than leaving it in
Traditional IRA and paying 12% on the new value!
Hi Noelan Your less conservative(than mine) Roth conversion is probably better financially in the long run. Best Wishes!
Hi Cal, Thank you!
Hi rose; I agree IF there is NO deductible $ in the IRA. Otherwise
it is complicated(been there) and there will be tax on conversion
of deductible $ from traditional IRA.
Hi ibrew; I converted some AMRN stock early last year at $4 & $3 before 9/24, it was a great move! ;.) I just made sure when I did my yearly
conversions to Roth I didn't move myself into the next tax bracket!
Hi rose; Conversion from traditional to Roth is taxable. 8606 is correct form used to keep track of taxable and non-taxable amounts in a traditional IRA.
Hi rose; PS The "backdoor" IRA conversion can be done ANY time!
Hi rose & jomamam; I'm sorry I was partially wrong! I mixed up the IRA and 401(k) contribution limits. IRA(traditional and Roth) limits are $5500 to $7000 depending upon year(2018&2019) and age(< or >50). But the 401(k) limits are $18,500 for 2018 and $19,000 for 2019. Once $ is in 401(k)
it can at some point(55 rule applies here, as an example)be rolled over
into a Traditional IRA(called a Rollover IRA) and then from the Rollover IRA you can convert to a Roth IRA. Besides the hard deadline of 4/15 this year for 2018 IRA contribution, it is my understanding the contribution must be made BEFORE you file your taxes!
Hi jomama Sorry, but I think you are mixing rules for Roth IRA and Traditional IRA. The numbers you give are contribution limits for Roth IRAs if you are under 50 years old. You can give much more depending on earned income to your traditional IRA and then convert it to Roth!
Hi rose; My understanding is that it is quite simple. You contribute
to your traditional IRA and then you "convert" the money from that IRA to your Roth IRA. Years ago I finished converting all of my traditional IRA money to my Roth IRA!
Hi Cal; No, 55 rule applies to 401K plans with employers.
I'm referring to the "equal payments" method listed at the IRS link;
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions as one option. Not sure what you mean by Roth Ladder.
Hi sts66; Thank you for your contributions and confirming what will be a big surprise for some people! ;.) I only do 2 stocks, AMRN and ARNA; and as I recall those were once your top 2(?)! The Ca tax info enlightens me
as I assist my sister(in San Diego) with AMRN and taxes.
Hi Cal ; If you are not yet 59-1/2 you can still get $ without penalty
if you "retire" by using IRS amortization process. At least that is my
recollection, but since I'll soon be 69 and retired for 13 years it is
not an issue for me and I have not checked to see if rules have changed. Good Luck!
Hi biowreck; Yes new standard deduction for Married couple went up from $12k to $24k and new limit for 12% bracket(also end of 0% LTCG rate) is $77,400!
What you say is correct for TAXABLE accounts; in my case and my friends case(I made her enough, she retired 12/31/2018) it is almost all in
Roth and T-IRA accounts so there will be no LTCG in BO. Another option,
that I had my friend use, was to give enough $ away(contribute to a DAF)
so that she was/will be at 0% LTCG rate for the stock sold(Called away)
from her taxable account!
I prefer LTCG rate of 0%! If married, with new standard deduction of $24K
you just need to keep total income below $101K to have LTCG taxed at 0%!!
Hi Cardio; Excellent rebuttal! Thank you!
Hi zz1 Excellent summary of where we've been and where we are going! Thank you very much for your post!
Hi Steve; Please ad Maryland to the list! ;.) Best Wishes!!
Hi jfmcrr; Great to meet you, thank you for sharing your recollections from the event. Helpful for those of us who don't hear so well! ;.) Best Wishes!!
Hi Kev; Had a great time in Vegas(still here) and wanted
to again thank you and Chris for your efforts to make the event happen! Best Wishes!!
Hi Slim, Thank you! Best Wishes!
Hi slimhere; It's funny but I can't remember(but my memory is poor ;.) ) ever having rolled out puts(but a good idea). So I did buy all those shares on 11/16/2018 and they'll wait til we get back up there(trading shares)! ;.) Most trades are in IRAs so no misc issues but I was surprised when I rolled by 14 calls to $14.50(for profit) last week in taxable account and found it generated disallowed loses due to "wash sale" rule. Now that $14.50 are sold not sure if that disallowed lose goes away!? I only play with 2 stocks AMRN and ARNA routinely! ;.) "Only" been doing this for 11 years! Best Wishes!
Hi Dan; Thank you for your comments. Not sure if it's semantics but I use
terms "covered put" when cash is there and "naked put" when cash is not
there at time the trade is executed. I am long time retired so I have
the time to make my weekly "small" wins with target of 1%+/week.
AMRN happily is still doing better than 1%/week. I have had my
"catastrophes" when I sold a lot of $22-$24 puts for week of AHA,
did so because premiums were $3-$5. But I'm patient, so just disappointed
that crooks showed up to create fear that sent us back down. Best Wishes!
Hi Dan; We're in the market to make $. Basic idea is buy low and sell higher. I sell puts to buy low and I sell calls to sell higher.
The bonus is that you get paid to buy and sell. This week worked out nicely
I had $12,13,16 & $17 puts and $18 calls for AMRN for today. Always covered! Regarding div stocks, I will sell calls but you do want to have held the stock for more than 60 days(around x-div) so that the div are still classified as "qualified"; I'm sure you know that, this is for option newbies! ;.) Thank you for your option insights!!
Hi Nuke; Thank you! ;.)
VASCEPA license plate for Maryland coming to me for my new blue Tesla! See some of you in Vegas! Best wishes to all!! PS Got my script today from Kaiser but cost will be 100% on me!
Yes, try the Teslas! I bought my blue 4WD model 3 last week! It's nice! ;.)
Disagree. The link is to generic answer. AMRN has exception due to 1st A!!
Hi Jl I don't think that would reward us enough for the effort.
I think the info would be more qualitative than quantitative, certainly
compared to data that Sam can provide.
TTE Did I miss it? was there a PR about 50% results?
Thank you!
Hi BB But was it SS?
Trump committed his own crimes and lied about it as everyone
with ears knows! Now we have false claims against AMRN!