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.

 

[WHCSC]

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.

That is exactly my question. How can I find out what I can distribute without penalty?

 

[WHCSC]

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

That’s what you guys are

 

[TampaBaySkers]

That is exactly my question. How can I find out what I can distribute without penalty?

Have you invested a static percentage each pay check? Your HR department might have a total number for you by year .

 

[Huskers123456]

That’s what you guys are

You definitely need more than 10 years of contributions? Can't dig up any old statements you filed away? I think it used to be a question on the 1040 before the 2017 overhaul? How far back do you keep tax returns?

 

[solarpanels]

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.

Question for you-Do you keep contributing to a Roth IRA after retirement?

 

[itseasyas1-2-3]

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'll give you my multi-part suggestion.

Any investment company that can't give you the total amount with a click of a mouse should be discarded.

IF it were me, I'd take the penalty and disssolve the entire thing. You know you really don't own that money, right?

If they want to continue to play footsies with you, I'd tell them I just signed off on my Congresssmen to contact them and get the accurate amount for me. That will motivate the shit out of them to quit jacking you around.

Any institution that wants to be anti-customer service needs to be put in their place.

Tip: An\ytime you can't seem to get through to a helpful, REAL person, its best to initially click "1" or "2" or whatever the prompt says and ask for "Sales. Trust me, a real person will answer. Then Or, "I'd ike to invest money/start an IRA, etc". just get his/her operator number so at minimum, you have them on the hook as a Company representative. When someone knows you have either their first name and/or their identification number you've much less apt to be hung up on.

You're not being a prick to operator like this, afterall, it IS your money until we have a collapse.
I know few people will agree with my methodology, but I can count on zero fingers how many times I've ever had trouble taking possession of my money from an outside sourse.

 

[TampaBaySkers]

Question for you-Do you keep contributing to a Roth IRA after retirement?

If you’re working a part time job at a golf course to get away from your wife post retirement then hell yeah. All tax free under like $12k or something ..

 

[TampaBaySkers]

My wife and I started our own (not-profitable ) business just to put our kid on the payroll to do odd jobs. Paying him about $750 a month that is all going to a Roth. Will keep paying him and transferring until he’s 18. That Roth (tied to S&P) should be worth around $20 million when he’s 60 that lucky bastard 🤣

Wish the power of compounding interest was taught in elementary schools.

 

[TruHusker]

Question for you-Do you keep contributing to a Roth IRA after retirement?

Only if you have “earned income” as I understand it.

 

[bmb81664]

Only if you have “earned income” as I understand it.

I am able to contribute to my Roth despite being retired. This is because I am married and my wife works. If neither of us worked then I could not add to my Roth.

 

[WHCSC]

Have you invested a static percentage each pay check? Your HR department might have a total number for you by year .

No

 

[WHCSC]

I'll give you my multi-part suggestion.

Any investment company that can't give you the total amount with a click of a mouse should be discarded.

IF it were me, I'd take the penalty and disssolve the entire thing. You know you really don't own that money, right?

If they want to continue to play footsies with you, I'd tell them I just signed off on my Congresssmen to contact them and get the accurate amount for me. That will motivate the shit out of them to quit jacking you around.

Any institution that wants to be anti-customer service needs to be put in their place.

Tip: An\ytime you can't seem to get through to a helpful, REAL person, its best to initially click "1" or "2" or whatever the prompt says and ask for "Sales. Trust me, a real person will answer. Then Or, "I'd ike to invest money/start an IRA, etc". just get his/her operator number so at minimum, you have them on the hook as a Company representative. When someone knows you have either their first name and/or their identification number you've much less apt to be hung up on.

You're not being a prick to operator like this, afterall, it IS your money until we have a collapse.
I know few people will agree with my methodology, but I can count on zero fingers how many times I've ever had trouble taking possession of my money from an outside sourse.

They only keep records back 10 years at this brokerage firm.
The phone issues were with the IRS and they don’t give a damn.

 

[bama_husker]

They only keep records back 10 years at this brokerage firm.
The phone issues were with the IRS and they don’t give a damn.

Presumably you can account for some of your contributions available for withdrawal penalty free: those from 5-10 years ago from Fidelity's records, and prior to that any years for which you have records. Does seem like it would be nice if all Roths kept a basis number at least until you hit 59.5: All contributions - all early withdrawals.

 

[Huskers123456]

My wife and I started our own (not-profitable ) business just to put our kid on the payroll to do odd jobs. Paying him about $750 a month that is all going to a Roth. Will keep paying him and transferring until he’s 18. That Roth (tied to S&P) should be worth around $20 million when he’s 60 that lucky bastard 🤣

Wish the power of compounding interest was taught in elementary schools.

They do teach compound interest in middle and high school. No one cares. I even try to explain it to young people at work. Again, no one cares. They'll figure it out when they are 40 and they find out how much it takes compared to when they were 23. My kids have custodials.

 

[TampaBaySkers]

They do teach compound interest in middle and high school. No one cares. I even try to explain it to young people at work. Again, no one cares. They'll figure it out when they are 40 and they find out how much it takes compared to when they were 23. My kids have custodials.

Maybe I was the asshole kid that didn’t listen and waited until he was near 40 haha

 

[SomedayHusker]

A tip I can offer is to call your nearest IRS office rather than the simp number that hangs up after you hold forever. You may have to dig for multiple numbers. My last tax lady referred me to the bullshit IRS number on a question I had and I promptly fired her.

The IRS has to be the most understaffed department in the government by miles. With the majority of their listed documents still done only by snail mail, it’s no more than a joke.

 

[itseasyas1-2-3]

They only keep records back 10 years at this brokerage firm.
The phone issues were with the IRS and they don’t give a damn.

I can promise you if you call your Congressman and give him permission, they WILL respond in a fashion that will help you.

FACT: Ywo years ago, the government awarded Employee Retention Bonuses for Daycare workers. My daughter filled out the paperwork, forwarded it to the IRS. They pigeon holed it, like they do with a lot of people, danced around with them through the mail for 5 months.

I told her to contact our Congressman. She had the 93K in her account for employee bonuses in less than 10 days.

I'm no fan of elected officials, but, if you tell them to earn your vote and give them written permission to work on your behalf, they can get more shit done in a week than you and I can get done in 6 months.

When a US Congressman calls the IRS office, I guarantee you they won't hang up on him.