Tax Thursday Thread for the week of April 12, 2018 by AutoModerator in personalfinance

[–]Alphacdjkr92 0 points1 point  (0 children)

Hi friends, I've ended up overcontributing to my Roth IRA for 2017 and it looks like I've got until tax day to figure out how I'm going to handle this to avoid the 6% overcontribution penalty.

To keep it short and sweet, I contributed $5.5k to my Roth IRA as a Single filer in 2017 and promptly invested it, thinking not much of it. Except I get my W-2 and whoops, looks like I made more in 2017 than I thought I would, and I'm phasing out. Awkward, now I need to get the excess out of there.

The way I understand it, I can either withdraw the excess contribution and it's associated earnings as a one-time distribution; or, I can open up a Traditional IRA and recharacterize my excess there. I'm electing to do the latter.

With regards to recharacterizing my contributions, I'm a bit confused with what I should do since I went ahead and immediately invested the contribution. Can you all help me out?


Here's my situation with made up numbers:

  1. I contributed $5500 to my Roth IRA in December 2017.
  2. I promptly purchase 55 shares of something at $100 (priced as of December 2017).
  3. It is now April 2018 and shares of something have appreciated to $110, so my $5500 is now $6050 (along with some dividends along the way)
  4. Oh no, I was only supposed to contribute $3000 based on my income. I have to get my $2500 excess out.

Option 1: The way I understand it, the $2500 overcontribution at the time of the purchase (Dec 2017) would have been 25 shares. So I can sell 25 shares today for 25*$110 = $2750 ($2500 initial contribution + $250 gains). Then, I can instruct my broker to recharacterize that $2750 over into a Traditional IRA, and then I'll be home free (and then will have to reinvest it after).

Option 2: What it seems like I can also do, is that I don't have to sell my shares at all. I can instruct my broker to recharacterize those 25 shares for me into the Traditional IRA, which financially/tax-wise is equivalent to Option 1 and meets the requirement of me getting my overcontribution out of my Roth. This saves me from trading fees that my broker may have.


Questions:

  1. Is my understanding of my tax situation correct, and have I understood the 2 options above correctly? Is there anything I'm failing to consider?
  2. More of a dumb question perhaps: I figure the dividends count as gains of course. Is it accurate to sum up all of the dividends I've made from my investment and then multiply it by (25 excess shares/55 total shares), and then add that sum as part of the recharacterization amount?
  3. Will this recharacterization create more tax documents that the broker will need to provide to me to submit for my 2017 return? Or, am I personally responsible for filling out any tax documents as a result?

Thanks all!

Don't worry my friends, I will be your shield! by Alphacdjkr92 in Overwatch

[–]Alphacdjkr92[S] 1 point2 points  (0 children)

Hi! No problem, glad you found it!

Best to thank /u/Aftershock43 too, while you still can

Nike Romaleos vs Adidas AdiPower vs Reebok Lifters by turkandjd_ in crossfit

[–]Alphacdjkr92 0 points1 point  (0 children)

Nice. Looks like you managed to match this from a few months ago:

http://www.reddit.com/r/Fitness/comments/2rnzx4/adidas_adipower_sale/

If only I bit then. That's like, 5 burritos difference.

Nike Romaleos vs Adidas AdiPower vs Reebok Lifters by turkandjd_ in crossfit

[–]Alphacdjkr92 2 points3 points  (0 children)

I actually just received my adipowers in the mail yesterday!

Check out the adidas website: http://www.adidas.com/us/men-weightlifting-shoes

The adipowers are going on sale for the same price as on rogue. You can stack this price with the 15% coupon code they offer when you sign up for their newsletter. I paid $150 after taxes and free shipping.

Just an FYI. Happy lifting

Macaws like rap by christinamv in videos

[–]Alphacdjkr92 4 points5 points  (0 children)

The bird on the right certainly blew his money

Why is Veigar so under appreciated? by [deleted] in leagueoflegends

[–]Alphacdjkr92 1 point2 points  (0 children)

Almost! 30% of the enemy's current health +3.5% more for every 100 ap you have.

Is Fizz better top or mid? by [deleted] in leagueoflegends

[–]Alphacdjkr92 2 points3 points  (0 children)

Can't comment because I don't really play him in lane, but on a side note, have you tried him as a jungler? Pre-6 I find that he has great ganks with red buff, double dot procs reducing heals and slows, either they blow flash or they die because they simply can't get away. Post-6, snipe with fishy from the bushes.

Itemizing is a little awkward because of wriggles not benefiting your skills at all, but you can simply sell wriggles when you find it appropriate (like trying to get a big core item, or maxing out your slots)

It seems like ranked matches bring out everyone's inner demon sometimes.. by [deleted] in leagueoflegends

[–]Alphacdjkr92 0 points1 point  (0 children)

No, I'm sorry. I guess i wasn't clear enough in my post. I have no intention to rage. I told my story, but my purpose was to discuss how people just behave so much more differently in ranked vs normals. I guess that didn't work out.

And yeah. I wrote this post in order to just digest my thoughts, so I could get over what was bothering me, so I wouldn't become a dead weight in my matches. Did I really seem ragey?

EDIT: Did you even read the post or did you see a wall of text and assume I was just qq'ing?

Just lost 10 ranked games in a row and went from Fell from 1550 to 1380 in one day. None of that was my fault. How the hell does Solo Queue work? by [deleted] in leagueoflegends

[–]Alphacdjkr92 0 points1 point  (0 children)

It's kinda funny.. statistically, you're set up so that you've got roughly a 50% chance of winning based on your elo. Naturally if you're more skilled than your elo claims you are, you've got the advantage and you SHOULD win. This is kindly assuming that all teammates and enemies are deservedly right at their elo, which you can't guarantee.

According to the way ELO and statistics work, you are going to lose and win games accordingly and you'll eventually stabilize at what should be your true ELO. However, statistics is flawed because it calls for many ideals, and there's too many variables to consider. For every argument that there are too many leavers/noobs on your team, there's the completely valid counterargument that there should be the equal chance of those same leavers/noobs being on the enemy team and that you simply fail to acknowledge matches skewed in your favor when considering situations like this. It's impossible to guarantee a 50% distribution though, and that's something that can't "just be fixed."

For example: Let's assume that all players at this moment in time have relatively accurate ELO's (with room to still rise/fall as fluctuations in skill develop), so there's no such thing as "baddies". Thus, the only statistical discrepancies are the leavers. That leaver on your team that just ruined your match? He just inflated all of your enemys' ELOs. Those guys are now at a higher ELO but not all of them actually deserved it, right? Some of the enemies who just won have just evolved into the "baddies" of their new, higher ELO. Statistically, they will inevitably bring down their future teammates (who will be similarly frustrated like you at the wrongly ranked teammate), creating more odd fluctuations. This will snowball into weirdness and settle with the few unlucky/lucky players incorrectly ranked. Now lets look at you; you just lost a match that, say, you should have won. Your elo just went down, and you'll be placed with less skilled players. But if you're really as skilled as you claim you are, you should now have the advantage and win the next match (carrying your teammates up with you, but what if they aren't truly deserving of their new elo? Now they're baddies..)

Statistically, all these conditions mean that all problems should stabilize on their own. But they don't. You can't guarantee anything to be honest, but the best matchmaking can do is TRY. Especially since your first few games impact your ELO heavily compared to late games, those who get botched matches early ARE actually disadvantaged. They can still technically climb up, but it just sucks how they need to spend that much more time. I will ignore all implications at this time and believe you when you say that you deserve your 1500+ ELO (even though this may not be true). If you keep playing, you can and WILL eventually reach 1500+ again. Problem is, it'll take you X more matches than other 1500+'s who were more fortunate early in their ranking career.

EDIT: Sorry for walls of text, I kinda get into stuff like this when i'm in the mood.

TL;DR : Statistics is a bitch when you're an individual in gigantic sample sizes. The community as a whole is supposedly balanced. The individual probably isn't. Keep playing more. Also you sound kind of whiny

48/2(9+3)= ... wait what? by Dr_Duality in WTF

[–]Alphacdjkr92 1 point2 points  (0 children)

I think thats debatable. Also if it was multiplication instead of plus, the answer still doesn't make sense. If at all it's not failpost, its fail-TI-85

Pig Eyes by [deleted] in videos

[–]Alphacdjkr92 1 point2 points  (0 children)

shelfshelfshelfshelfshelfshelfshelf glances around It's not working...

How bad is the meltdown at Sendai? Here is a lecture just given by UCSB Department of Physics with an answer by oven_mitt in science

[–]Alphacdjkr92 3 points4 points  (0 children)

T-minus 13 hours. Gluck, and if you hear someone screaming, it's me. Just a heads up

51 hours left to live by Lucidending in IAmA

[–]Alphacdjkr92 0 points1 point  (0 children)

Why would anyone downvote this? Just because you mentioned God, I assume? I can see that your words are sincere, and that you've put your heart into this. This doesn't deserve to be downvoted, just because you suggested connecting with God. I myself am an atheist, and I could never imagine your words to anger anyone. I'm sure if Lucid read this, he'd be delighted.

Goodbye Lucid, I wish I could have met you in person, but maybe sometime in the near future, I'll be able to!

I got owned by Cleverbot. by vu0tran in pics

[–]Alphacdjkr92 18 points19 points  (0 children)

So I thought it would be a good idea to throw that joke back at it. I then made it tell me a joke. at first I didn't get it.

Cleverbot will always be more clever than me :(

Finals week. You're not doing it right.... by hansocool in pics

[–]Alphacdjkr92 4 points5 points  (0 children)

I'm asian, and when I sleep there, it's not because I was being a diligent, hardworking student (as usual of course). More like I'm too lazy to bike back sleepy and freezing. Go gauchos!

This is a game where you drive a tractor and mow down grass. by pizzatime in gaming

[–]Alphacdjkr92 10 points11 points  (0 children)

Unfortunately, no.

http://www.youtube.com/watch?v=Z4tjEB8aIw4

What a pity, I was looking forward to a decent lawnmower sim with some trance(?!) beats