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Everything posted by Deb19

  1. Finally...if I can vent one last item. I guess I am trying to seek someone to blame......but where is the IRS's responsibility/role in all of this?? Had they done THEIR job...they would have discovered this mistake and alerted me of this problem whereas I could have fixed it. It has been since 2012.... and still no letter showing a problem?? I caught this myself. It's unacceptable to me that a statute of limitations DOESN'T apply or exist. Because the IRS didn't do THEIR job.....I owe more. Sorry, but thanks for letting me air this. (My dog no longer wants to listen to me.)
  2. I also just located a questionnaire that she always makes us fill out and in it it shows I checked YES in the box for 'did you make Roth contributions'. I hope that can be used in my favor. I will keep you all informed, and I hope others can learn from this. Tony - Thanks for your info. and article. I believe she is a CPA. I want to learn more about an organization like you mentioned. Edlab - Thanks so much for your words. I needed to hear this. My family and I sacrificed much to make these contributions. It is so infuriating and unjust, and somehow I am going to find a way to bounce back. I don't know tax code. I loved your bullet points and I am hoping my new CPA will know this?! I am especially thankful for your words because my next panic came from the idea that this will derail our retirement. Earlier this summer, our financial guy commended us and said we were on track however this was with that 30,000 . and continued contributions. I feared that all went up in smoke now. Your words were reassuring. Thanks all again.
  3. Guys....thanks all so much. Steve - I will post this on bogleheads. Thank you for the suggestion. I will try to negotiate with her. She was not in on Friday so I sent an email to her. August 3rd, 2017 Dear Gina, My husband and I have been tax clients of yours, and before you, your father-in-law's for many years. While many of my contemporaries have begun doing their own taxes using one of the relatively cheap tax programs, I have continued to patronize you, primarily to avoid complications that may arise due to my lack of knowledge of tax law, and because tax law changes from year to year. In other words, I have been a loyal customer to your firm, because I wanted my taxes to be done correctly, professionally, as well as feel confident in my return. Last night, I was reading an article about common Roth IRA mistakes, and I stumbled across something that I believe is going to be a significant problem for us. The article, which my subsequent research verifies, states clearly that married individuals cannot make a Roth contribution for years in which they file separately, which we did with your firm's knowledge/consent for tax years 2012, 2013, and 2014. Indeed, it was your suggestion that we file separately. It appears, again I am no expert, that as a result of this "excess contribution" we owe a 6% penalty for each year the contribution was not withdrawn. Looking at the forms and drafting them as it appears they should be completed will result in a tax penalty to each of us, of 3,600 for a total of $7,200.00. This does not include the penalty we will have to pay for the early withdrawal, and the tax on the subsequent gain. This is precisely the type of issue I looked to avoid by engaging your firm. The only mention you ever made to me was that beginning in 2015 we could no longer file separately. There was no discussion of a 5329 form, or amending any returns, etc., which would have substantially reduced or eliminated entirely the penalty. I hope that I am in error in my assessment, and that you will be able to ease my obvious concern in the face of a $10,000 potential and completely unexpected tax liability. Honestly, I have been an emotional wreck since learning of this knowledge. It is difficult for me to focus on anything else. Please respond and assure me you will help straighten this matter out in a fair manner. Because of the great concern this is causing me if I don't hear from you on Monday, I will have to go somewhere else, because I need to have answers. This is the letter I sent. Do you think this was the right course of action?? I am giving her a chance and yet getting across my point that I am concerned and not going to mess around. Was it too harsh?
  4. Tony, Ugh. I am sorry to hear that. I am sure the IRS would be able to send you a copy?! Steve, I stayed up all last night reading and learning. Today, I was talking to a new tax accountant. I am up to 10,000 in what I wil owe.The problem with waiting is that the longer I let this go, we will have to pay 6% each year. Could you imagine if my letter wouldn't come for another 5 years! There is no statue of limitations. I am just sick. I trusted this tax professional and am innocent.....which I know means nothing to the IRS. The CPA told me I will have to pull the money out from 2012 on until now. Not only is it painful now but this will be less money I have now in the market working for me. It is amazing how quickly life can change. I am about to send my oldest off to college so this is horrible timing... though I realize no time is easy. Thanks to both of you for responding.
  5. I currently contribute to my school's 457, and my husband and I also contribute to our Roths. Through casual reading last night I learned that you cannot file separately and do a Roth IRA. When our tax advisor suddenly passed away, his daughter in law took over. She was the one that had us move to filing separately so we would get a larger refund from 2012- 2014. In 2015, all she said was she could no longer file us separately. I did not ask why. (She should have filed a 5329 form so we could have corrected this problem, she did not.) Now I am sick from this huge and costly tax problem we now have to deal with. We will owe 6% penalties for every year this continued..... plus all Roth money (30,000) will need to be pulled with the 10% early withdrawal also to be paid. Has anyone gone through anything like this? Also, what should we do with this 30,000. Right now I want to bury it in my backyard and never invest again. I am devastated as I was trying to save money, but ultimately have ended up costing us. Any advice or suggestion to deal with this would be so appreciated.
  6. Also....one reason I have lagged in getting this done is because I was angry that E.J. would charge me 135 bucks to close it. That is infuriating to me and at the time, all holdings were doing well/ok. It will take me over 3 years to recoop my $135 in annual fees I will be saving from no longer having to pay their annual maintenance fees. Still makes me ill.....but even with this fee, it still makes more sense in the long run....correct?
  7. Thanks, Tony...but trust me I have done the blind thing too. Another question....cost basis concerns?? By transferring this IRA say to Vanguard.... do I need to be worried about my cost basis, especially since one is a stock? I am planning on at the very least selling one fund to buy a Vanguard fund. I know at E.J they may have helped keep track of this sort of thing. Is this on me now? If so....how do I do this. Thank you. Deb
  8. Thank you for your help. I appreciate your help more than you know.
  9. No, actually I am not. It is just reviews I read online. Current IRA is at Edward Jones. (Sigh) Live and learn.
  10. I am trying to move a traditional IRA from a high fee brokerage account to doing it on my own through ameritrade or something similar..... It contains 1 stock and 2 mutual funds. I have read things about ameritrade, etc. that scare me. A Mass. Mutual rep wants me to move it to a morningstar managed account. Please help as I am ready to do this just because I have been working on this for 2 weeks and just keep going around in circles. I have explored so many options I can't find my way out. I am fairly knowledgeable and currently do most investing on my own with success.....however I am stuck on this.....and feeling panic-stricken. I would appreciate any help you could give me.
  11. Deb19

    Ira Input

    Thank you for your comments!
  12. Deb19

    Ira Input

    Hope it's acceptable to post an IRA question.....you all have been immensely helpful in the past and I would greatly appreciate your help again.... IRA held at Edward Jones....(the last thing there since I have moved everything and have been doing it on my own) ......because of the large termination fee and not fully understanding how to move it, I just had not made the move yet. I am ready now. Planning on moving to TD Ameritrade (any input on this??), then I am planning on getting rid of a fund I no longer have faith in. Currently, his IRA is in a stock and 2 funds. Edward Jones guy wants us to move all to stocks for better ability to make the most money possible. Any input on this? I know it is difficult to provide insight when you don't know our entire portfolio, but if no new money is being added to this.....any advice on using just stocks, just mutual funds, or a combination? We have at least 10 -12 years for this money to grow. Finally, I think I have kept this tie to Edward Jones because it is like a security blanket to me.....I have someone to bounce stuff off of.....HOW DO YOU DO THAT WHEN YOU TOTALLY DO IT ON YOUR OWN? I do not have any fee-based financial specialists near me. Thanks for your time and help. Deb
  13. Tony, This article defines where I am right now especially with increased demands being put on us. This week we had 2 hours where parents and grandparents could watch us teach. Maddening. Its like we have to be performers too. My problem? This is only my 20th year. Im stuck. Horrible place to be. Thank you for sharing so I know Im not alone. Deb19
  14. Thank you Steve...for this information. I am not the one on bogleheads btw, but maybe I should be checking this site out too. :). Thanks again....
  15. Thanks to you both. Another question if you can help.....I am in my 20th year teaching and starting to feel an incredible urge to get out of education... for reasons too numerous to get in to here.......I read (and dream) of "retiring" early or at least getting out of this field.....I see advice about "talking to a financial advisor" for help. Since I am trying to do much of this now on my own, who is this person?? I live in a rural community and our only options near us are brokerage dealers. When I try to get them to look at what we have, invariably it just turns into them wanting to sell me something else. I have also tried tax professionals to no avail. I just want someone to look at what we have, and let me know if A) whether it is feasible and B) an approximate timeline. That would also allow me to know what steps I need to take to get there even faster. Any advice or insights? Thanks in advance.
  16. If I max out my Roth IRA, I still can do a Roth 403b, correct??
  17. Wow...what do you teach to be making that in teaching? Wish I could move to Illinois.
  18. Thank you Steve! You have made me feel more positive and " excited" about putting into play what I am learning. Your current lifestyle is one I hope to attain one day. As I read....and as you mentioned.....keep just 6 months of living expenses in cash/moneymarket. We have more than that....I lost both of my parents at age 23 so my small inheritance I have guarded like you wouldn't believe.....keeping it safe in bank CD's. It is amazing how emotions can get tied to money. Long story short.....I FINALLY know better but where should I put this money in Vanguard if it is basically just savings I am hoping not to touch? I would like to put it in just one fund so I can see its growth....and know its from my parents....(sorry for the sap). :) Have a great Sunday as well..... Deb
  19. Thank you Steve and Tony.
  20. Hello....with regards to all the valuable information I am learning on this site and through books you have suggested....I am trying to get down our number of mutual funds that we own. My goal is 8. Currently....we have 17 between my husband and myself.....ugh. Rather than kicking myself, I am trying to help us out of this mess when I trusted past advisors. Our past brokerage "advisor" put our roths and joint accounts in 10 American funds alone. Some of these American funds are repeats between both of our roths and joint accounts so I am planning on first eliminating any repeated funds. That alone will get us down by 3. Eventually I want to get all of these moved to low cost index funds but feel like baby steps are in order. Would someone please weigh in on this? Is this a good place to start? Any other suggestions/advice would be very much appreciated.....feeling overwelmed right now. Thanks.
  21. Thanks so much for the links and information!
  22. Thanks Tony and Dan for your help. Congrats Tony......your retirement is in sight! The fact that you were so conscientious with saving I am sure is what helped to make it a reality. Bet ya the light at the end of the tunnel is rewarding to see......
  23. Any reason to not put the money in a bank CD......for her 529 money?? .I have the option of bank cds under Ohio's 529 plan........ .50 plus FDIC insured.....would this be better than the Vanguard MoneyMarket which is not insured, nor is really earning anything??
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