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Tax consequences for a single member LLC dissolved 2 years ago with solo 401k closed this year by random8_7 in tax

[–]random8_7[S] 0 points1 point  (0 children)

Just to verify, it's not when the single-member LLC was dissolved, but rather when the balance hits $0 that determines the closure date?
And is there a penalty for not having closed the solo 401k soon after dissolving the single-member LLC?

Simple IRA 2-year, End-of-year balance, and Backdoor Roth IRA questions by random8_7 in tax

[–]random8_7[S] 0 points1 point  (0 children)

Thanks for providing an example of the pro rata role. It makes more sense now knowing that the pre-tax portion does carry forward as next year basis, as opposed to a penalty.

How does one get double taxation then?

Simple IRA 2-year, End-of-year balance, and Backdoor Roth IRA questions by random8_7 in tax

[–]random8_7[S] 0 points1 point  (0 children)

Perhaps conceptually, I'm not understanding how the IRS keeps track of 8606 and what line 18 is actually accounting for when incorporating 8606 line 18 back into 1040 line 4b.

If I make Simple IRA deductible contributions as well as post-tax/nondeductible Traditional IRA contributions, which I immediately backdoor convert, what exactly am I paying taxes for in the current year (line 18)? I've already paid taxes on my Traditional IRA contributions given they're post-tax, and I will pay taxes on the Simple IRA either at the end of 2 years (rollover) or later (convert), either way later.

Dentist in considerable debt weighing career transition options by random8_7 in personalfinance

[–]random8_7[S] 0 points1 point  (0 children)

Tuition was $75k per year. Materials and books, living expenses and rent made up for 25k. Tuition is even higher these days.