Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Author: 4hunter Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121478  
Subject: 3 tax questions Date: 2/22/2000 10:01 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Fellow company warriors... I've spent the last 5-hours in a hotel room in Queens, NY, using Turbo Tax Deluxe and Turbo Tax State, and I have finished my taxes. Before I file them though, I have a couple of questions.

Q1: I want to rollover my $8,000 IRA from Morgan Stanley to a Schwab IRA. I'm not sure if I should set up a rollover IRA or a conversion Roth. My question is, once the IRA-or-Roth is complete, CAN I contribute another $2K to it, prior to Arpil 17, 2000?

A related question: In either case (IRA,Roth), am I allowed to take a $2,000 deduction, if I'm enrolled in my employer's 401-K? BY the way, my AGI is $65K.

I think the answer to Q#1 is that I am not allowed to contribute more than $2K total in to IRAs per year. AND I think to the answer to my related questions is that I can't deduct either way, because of the 401-K plan.

Q#2: My wife is a full-time homemaker, no income, no 401-K. I'd like to set up an IRA for her prior to April 17, 2000. I remember reading about the tax deduction on an IRA for non-working spouses, but is it for the Roth or Traditional IRA?

I think the answer here is only the Traditional IRA is tax deductible. If yes, I'm still probably going to set up the ROTH because she's young (31) and would benefit more from the ROTH in the long run. Smart?

Q#3: My annual tithe statement (church offering) is missing almost $400 in cleared checks. Do I have any recourse other than calling the church's accounting office and asking if they've made an error?

Thanks,

mike in va beach (well, queens,ny, tonight!)

Ps. About the IRA questions, I have read the Top 10 IRA Q&As by TMFpixy, but I still don't understand these couple of questions.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29604 of 121478
Subject: Re: 3 tax questions Date: 2/22/2000 2:55 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<< Q1: I want to rollover my $8,000 IRA from Morgan Stanley to a Schwab IRA. I'm not sure if I should set up a rollover IRA or a conversion Roth. My question is, once the IRA-or-Roth is complete, CAN I contribute another $2K to it, prior to Arpil 17, 2000? >>

Rollovers/transfers do not affect your ability to make an annual contribution. If you have $2,000 of earned income, you can contribute $2,000 to some sort of IRA or combination of IRAs. You can contribute up to 4/17/2000 and attribute the contribution to 1999.

<< A related question: In either case (IRA,Roth), am I allowed to take a $2,000 deduction, if I'm enrolled in my employer's 401-K? BY the way, my AGI is $65K. >>

No. Roth IRA contributions are never deductible, and your AGI, in concert with coverage by a retirement plan, is too high for a deductible contribution to a traditional IRA.

<< I think the answer to Q#1 is that I am not allowed to contribute more than $2K total in to IRAs per year. AND I think to the answer to my related questions is that I can't deduct either way, because of the 401-K plan. >>

See above.

<< Q#2: My wife is a full-time homemaker, no income, no 401-K. I'd like to set up an IRA for her prior to April 17, 2000. I remember reading about the tax deduction on an IRA for non-working spouses, but is it for the Roth or Traditional IRA? >>

See above for deductibility of Roths. A traditional IRA contribution for your wife would be deductible.

<< I think the answer here is only the Traditional IRA is tax deductible. If yes, I'm still probably going to set up the ROTH because she's young (31) and would benefit more from the ROTH in the long run. Smart? >>

If you can afford it, yes.

<< Q#3: My annual tithe statement (church offering) is missing almost $400 in cleared checks. Do I have any recourse other than calling the church's accounting office and asking if they've made an error? >>

If none of the missing checks was for $250 or more, you don't need anything else from the church. Otherwise you must have the corrected receipt before you file.

Phil Marti
Tax Preparer

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: BJMoses1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29659 of 121478
Subject: Re: 3 tax questions Date: 2/22/2000 8:55 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Is it possible for 4hunter to take the deduction on the
traditional IRA for his wife in 1999 and convert it to a Roth in 2000?

If so, would the entire amount of the conversion be
taxable or just the gains?

BJMoses1

Print the post Back To Top
Author: BJMoses1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29660 of 121478
Subject: Re: 3 tax questions Date: 2/22/2000 8:57 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Is it possible for 4hunter to take the deduction on the traditional IRA for his wife in 1999 and convert it to a Roth in 2000?

If so, would the entire amount of the conversion be taxable or just the gains?

BJMoses1

Print the post Back To Top
Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29674 of 121478
Subject: Re: 3 tax questions Date: 2/23/2000 4:03 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<< Is it possible for 4hunter to take the deduction on the traditional IRA for his wife in 1999 and convert it to a Roth in 2000?

If so, would the entire amount of the conversion be taxable or just the gains? >>

Yes, he could. The entire amount would be taxable since the traditional IRA would have no nondeductible basis.

Phil Marti

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Advertisement