OT: One for you tax experts

[WHCSC]

So I retired at the beginning of the year. I have a Roth that I’d like to pull the contributions from but I can’t find out how much that is. Fidelity can only go back 10 years and I can only find some of the years transcripts on the IRS website.
We’ve called them 3-4 times and been on hold for about an hour before they hang up. We have an in person appointment for next week with them but I’d prefer to get this information myself.
Any ideas?
No, I’m not giving you my SSN!

 

[Huskers123456]

So I retired at the beginning of the year. I have a Roth that I’d like to pull the contributions from but I can’t find out how much that is. Fidelity can only go back 10 years and I can only find some of the years transcripts on the IRS website.
We’ve called them 3-4 times and been on hold for about an hour before they hang up. We have an in person appointment for next week with them but I’d prefer to get this information myself.
Any ideas?
No, I’m not giving you my SSN!

I'm a ways from retirement but I thought Roths are pretty simple if you are over 59 1/2? Account just has to have been open at least 5 years and you can withdraw what you want when you want.

 

[WHCSC]

I'm a ways from retirement but I thought Roths are pretty simple if you are over 59 1/2? Account just has to have been open at least 5 years and you can withdraw what you want when you want.

I’m not 59.5 yet

 

[TampaBaySkers]

I’m not 59.5 yet

Then I think you only have to pay a 10% early withdrawal fee. You’ve already paid your tax on it so you’re good there.

If you’re going through a hardship then you can wave that early fee.

 

[Dean Pope]

I’m not 59.5 yet

Then I would pull money from other accounts before pulling anything from a Roth. That money is growing tax free. Your other earnings are not. Plus you would have to pay an early withdrawal penalty. You are young. Your Roth should be the last thing you take money from.

 

[BTF69]

So I retired at the beginning of the year. I have a Roth that I’d like to pull the contributions from but I can’t find out how much that is. Fidelity can only go back 10 years and I can only find some of the years transcripts on the IRS website.
We’ve called them 3-4 times and been on hold for about an hour before they hang up. We have an in person appointment for next week with them but I’d prefer to get this information myself.
Any ideas?
No, I’m not giving you my SSN!

Oh my god, I am shocked you even got put on hold before they just hung up!

I have shit with Vanguard and I am starting to think that no humans actually work there.

 

[RBigredMax]

Then I think you only have to pay a 10% early withdrawal fee. You’ve already paid your tax on it so you’re good there.

If you’re going through a hardship then you can wave that early fee.

A Roth doesn’t charge any fees for withdrawal of your personal contributions only for the performance gains it accrues. So long as he can stay within that umbrella there should be no fees. Maybe this is the question he is trying to determine - but unless he is pulling a huge amount out he should be able to go back and estimate what he has invested the past 5 years and be pretty safe.

 

[Dean Pope]

Oh my god, I am shocked you even got put on hold before they just hung up!

I have shit with Vanguard and I am starting to think that no humans actually work there.

Vanguard has pulled a complete 180 with their approach to customer service in the last 2-3 years. Anything phone based either costs a fee, requires you to be a part of a more costly advised fund, or well, you are noticing the third option.

 

[TampaBaySkers]

A Roth doesn’t charge any fees for withdrawal of your personal contributions only for the performance gains it accrues. So long as he can stay within that umbrella there should be no fees.

Yep good point.

 

[TampaBaySkers]

Then I would pull money from other accounts before pulling anything from a Roth. That money is growing tax free. Your other earnings are not. Plus you would have to pay an early withdrawal penalty. You are young. Your Roth should be the last thing you take money from.

If he’s using the non penalized funds to pay off debt that’s accruing interest at a higher rate than his current return then it’s a smart move.

 

[Dean Pope]

If he’s using the non penalized funds to pay off debt that’s accruing interest at a higher rate than his current return then it’s a smart move.

Taking out contributions after five years to pay off credit card debt. I can get behind that. But man keep that money growing without capital gains working for you.

 

[Bugeater]

Anyone do a full on IRA to Roth IRA conversion? I guess depending on your perspective, age, and tax situation, it could be a good thing

 

[bmb81664]

Anyone do a full on IRA to Roth IRA conversion? I guess depending on your perspective, age, and tax situation, it could be a good thing

I did one 30 years ago. It might be best to not do it if you are working since you are probably in a higher tax bracket. Then again if you do it after you retire you need to come up with the money to pay the taxes on the conversion.

 

[TampaBaySkers]

I did one 30 years ago. It might be best to not do it if you are working since you are probably in a higher tax bracket. Then again if you do it after you retire you need to come up with the money to pay the taxes on the conversion.

So if you plan to take out a little each year post retirement you’re probably better off just staying with a regular 401k, correct?

You do have to speculate what tax brackets will be when you retire so nothing is certain .

 

[bmb81664]

So I retired at the beginning of the year. I have a Roth that I’d like to pull the contributions from but I can’t find out how much that is. Fidelity can only go back 10 years and I can only find some of the years transcripts on the IRS website.
We’ve called them 3-4 times and been on hold for about an hour before they hang up. We have an in person appointment for next week with them but I’d prefer to get this information myself.
Any ideas?
No, I’m not giving you my SSN!

The last place you should take money from is a Roth. If you are at least 55 and you are retired, you should be able to take from a 401K (assuming you have one) without any penalties.

 

[Big bo fan]

So I retired at the beginning of the year. I have a Roth that I’d like to pull the contributions from but I can’t find out how much that is. Fidelity can only go back 10 years and I can only find some of the years transcripts on the IRS website.
We’ve called them 3-4 times and been on hold for about an hour before they hang up. We have an in person appointment for next week with them but I’d prefer to get this information myself.
Any ideas?
No, I’m not giving you my SSN!

Call your accountant or your financial advisor. They would have the answer.

 

[HuskerDrew]

Why don’t you just wait until 59.5?

If they don’t have the full records of you contribution amount then the 1099r you get will say the amount withdrawn is unknown and you don’t want to deal with that.
I assume you are not paying off debt
With this because you aren’t even 59.5 and retired and only an idiot would retire before 59.5 and still have outstanding debt unless they happened to have millions saved.
So use other funds to do what you wanted to do.

 

[TampaBaySkers]

So I retired at the beginning of the year. I have a Roth that I’d like to pull the contributions from but I can’t find out how much that is. Fidelity can only go back 10 years and I can only find some of the years transcripts on the IRS website.
We’ve called them 3-4 times and been on hold for about an hour before they hang up. We have an in person appointment for next week with them but I’d prefer to get this information myself.
Any ideas?
No, I’m not giving you my SSN!

Your company (assuming this was setup at your place of work) should have records.

 

[bmb81664]

So if you plan to take out a little each year post retirement you’re probably better off just staying with a regular 401k, correct?

You do have to speculate what tax brackets will be when you retire so nothing is certain .

I am not a financial expert. If the market collapses, that would be a good time to roll since your gains are way down. If you are retired and have no income, maybe roll enough to still keep you in a low tax bracket. It can be complicated.

 

[Dean Pope]

Anyone do a full on IRA to Roth IRA conversion? I guess depending on your perspective, age, and tax situation, it could be a good thing

A backdoor Roth is a good idea as long as you do not plan on using that money soon. And as long as the amount of money you take out each year doesn't push you into a significantly higher tax bracket. So if you're in the 12% bracket, stay out of the 22. If you're in the 24% bracket, only convert an amount that keeps you out of the 32%. And the 3rd thing is you have to have money available to finally pay taxes on that pre-tax money that you are moving over. Some people forget about that.