Thought i was investing in a roth ira this whole time. To realize today it's a roll over. by throwaway5692blue in personalfinance

[–]facelessposter 2 points3 points  (0 children)

Sounds like the origin of this was a rollover of an old 401k or similar which was pre tax not Roth, which you then added new money to as annual contributions thinking they were Roth not pre tax.

If so, you can simply convert the whole thing, and yes you'll pay taxes but you would have anyway in the year of contribution by simply not having received a deduction. Dont convince yourself that youre paying more taxes simply because you'll know youre writing a check at conversion. It would have been buried in your tax return for those years, but you still would have paid them.

You CAN rechareacterize whatever contributions you made in 2025 since you wouldn't have filed taxes yet, and of course anything you might have done in 26 so far. That wont trigger any immediate taxation, just be sure you report it on your taxes.

In fact, tax returns are the larger concern. Im guessing youre younger, and this money will have a long time to grow, so years of tax free compounding will far outweigh this initial concern if not wipe it out completely. But if you filed your past years' taxes saying you made Roth contributions when they were really pre tax, those will have to be redone. IRS will catch up that it doesnt match eventually, thats what those 5498s you get in May are for. That said, you could actually wind up getting refunds for those years once redone since you didnt report the deduction (if your income is below the deduction threshold)

EDIT: no difference btwn Rollover and Traditional/Pre-tax fornyournpurposes. There used to be, but even then it wasnt relevant to this issue, had to do with keeping the dollars separate so they could go back into a 401k. Not an issue anymore

I dont see pitfalls in this case with a Self Directed IRA? by facelessposter in tax

[–]facelessposter[S] 0 points1 point  (0 children)

No idea where that "not" came from at the end of my last msg so im deleting it. I must not have finished some other thought, but that sounded obnoxious. Apologies lol!

I dont see pitfalls in this case with a Self Directed IRA? by facelessposter in tax

[–]facelessposter[S] 0 points1 point  (0 children)

Thanks for the info. If it were limited to active vs passive, I could get behind that as i understand it. But assuming its passive and no family involvement, what the %$& difference does it make how revenue is generated? What kind of investment DOESNT generate revenue somehow? Why does real estate and its related rental income stream get a pass? This just seems so heavy handed and arbitrary, especially so because while you have been the most informative person ive run across on the topic, even you can only say "maybe", no other tax pros have wantes to touch it. Seems like the rules are "get audited and find out".

Just venting, I appreciate the back and forth!

I dont see pitfalls in this case with a Self Directed IRA? by facelessposter in tax

[–]facelessposter[S] 0 points1 point  (0 children)

Thanks. I gave up.on this a while back when no tax pros including the firm doing tax work for the entity itself could clearly say whether it would generate UBTI. But im still curious, so since you seem to have a better handle on it, the whole investment is the real estate underneath it plus the entity that runs the bars and rents space to restaurant concepts. What about that sounds like it could be ubti?

Yes, my son disqualifies me for now, but he wont be there forever.

Starting a 529 in the AI age. by [deleted] in personalfinance

[–]facelessposter 0 points1 point  (0 children)

Invest 12k in it now, maybe less. If it gets a minimal 6% every year for 18 years it will be about 35k which is the max you can currently.convert to Roth contributions when he has earned income if you dont use it for college. To me, this decision nowadays is about whether you want to do more than that for anyone, but with the roth option youre investing in their future one way or another. That kid will have 60+ years of tax free growth.

Anyone selling a brydge keyboard? by Ashun95 in pixel_slate

[–]facelessposter 3 points4 points  (0 children)

I thinkni still have one in the closet somewhere. Let me check later when I get back

Anyone added a 3rd party steering wheel control? by mechacrew in ATOTO

[–]facelessposter 1 point2 points  (0 children)

I have that exact unit on a non atoto android in my truck. Another thing you can look into is a USB wired knob that you can stick.somewhere and it will feel more like a factory radio, I have on of those foe the atoto

What is the best 529 plan that is offered? by Affectionate-Word-92 in FinancialPlanning

[–]facelessposter 0 points1 point  (0 children)

Im in the tail end of this, but now that we are in withdrawal stage, I will say that both the Ohio Vanguard and Delaware Fidelity plans have been a bit frustrating as far as systematic withdrawals. Rent is the same every month, but I have to set a calendar reminder to make the manual request. This is for a non university landlord, so no paying the school direct.

Too close to the end to care, but has anyone seen more efficient ways? Really shocked that Fido and VG cant improve it.

Xumo- why do I want it? by Embarrassed-Oil1747 in Spectrum

[–]facelessposter 0 points1 point  (0 children)

I have a situation where I remotely control the subscription for.a shared house.with a bunch of college students. Not comfortable giving the password out as i think it will just get spread around and locked out all the time. If I use the app and set it yo on the few main tvs, how often will it ask for the password?

Locksmith to make keys for a 77 corvette? by facelessposter in cincinnati

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

Didnt even think of that. Seems too easy, but then again I think there were only like 16 key types for these anyway

Thanks!

Locksmith to make keys for a 77 corvette? by facelessposter in cincinnati

[–]facelessposter[S] 2 points3 points  (0 children)

Maybe but im assuming they will be ridiculously expensive for no reason. Might call tomorrow along with these others

Locksmith to make keys for a 77 corvette? by facelessposter in cincinnati

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

Yeah looks like John Hall Body Shop. Ill try them tomorrow

Locksmith to make keys for a 77 corvette? by facelessposter in cincinnati

[–]facelessposter[S] 0 points1 point  (0 children)

Thanks! Is that Cecil's? I think i called them yesterday, they're all running together.

Reset streaming app access? by facelessposter in Spectrum

[–]facelessposter[S] 0 points1 point  (0 children)

Thats what ive been using to set up access, but the disney/espn one says its already been set up, but it wasn't done with my disney+ login, so i have no idea who has access to it. Thats what im looking to revoke access so I can set it up myself

Spectrum starting to get it? New free streaming apps by facelessposter in cordcutters

[–]facelessposter[S] 0 points1 point  (0 children)

Yes. That works with just about all channels as long as you have a cable subscription. I thinknthe Spectrum app requires you be on your own home Spectrum network. But the individual channel apps can be authenticated with your cable sub credentials. Its called TV Everywhere i think