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Posted by Arthur Kamlet on November 25, 2007, 9:37 pm
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>Tom wrote:
>> Hi, I hope I can get some answers to some investment/tax questions.
>>
>> I'm a Federal employee in my early sixties, Civil Service Retirement
>> System. Several years ago, I opened an IRA account with after tax dollars
>> and all money deposited into that account was after tax dollars. (I was told
>> as a Federal employee w/ CSR I had to set up an IRA using after tax dollars)
>> A couple of years later the ROTH became available and I opened a ROTH
>> account. I use Turbo Tax Deluxe to calculate my federal and state income
>> taxes, unfortunately Turbo Tax was no help instructing me how to report
>> deposits into the IRA I created w/ after tax dollars so I contacted my
>> broker and a local investment company but each gave me different
>> information. After tax season I went to the local IRS office for advice but
>> the advice was to read a couple of IRS booklets which didn't address my
>> situation.
>>
>> I want to convert some of my CDs to mutual fund investments and minimize my
>> yearly investment tax liability if that's a smart thing to do in my case.( I
>> may need the money from some of the investments within a few years so I
>> don't want to add anymore to my ROTH) If I open another after tax IRA how
>> do I report after tax deposits on my annual tax return?
>> Why can't I open a pretax IRA (I also have a Federal TSP retirement account)
>>
>> My original after tax IRA has been dormant for years because I didn't want
>> to make any deposits because of not knowing how report the deposits to the
>> IRS. There's not much left in this account because most of it was wiped out
>> during the dot.com bust.
>>
>> Hope you can read this one
>
>Sure can. (My wife is retired CSR and I have many clients like you.)
>
>First a definition. Don't confuse the TYPE of investments (cd, mutual
>funds, ) with the two IRAs. Each IRA may use different types of
>investments as funding mechanisms. For example I started my IRA with
>cd's, but rolled them over to mutual fund accounts when I saw the light.
>
>So then, you simply find the right mutual fund for you and roll over
>that regular type IRA into it. then open another mutual fund ROTH and
>roll over what's in your present ROTH account.
>
>How's that for simplicity?
>
>As for what's in your two IRA's, like Las Vegas, what happens in the
>account(s) stays in the accounts, iow, you don't report anything with
>you annual tax returns unless and until you start withdrawls.
>
>Now then, when you do accomplish these rollovers, make sure it will be
>from trustee to trustee and there will be no 1099R form to worry about.
>
>ChEAr$,
>Harlan Lunsford, EA n LA
>
One additional comment: If you were asking How do I report money
I put into a nondeductible IRA, the answer is Form 8606. If you
didn't file in the year you made the contribution, do it now.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
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