Gail in Virginia

There is no limitation on moving the IRA funds more than once a year. The problem is that you can't have more than one rollover per year - the other moves must be direct transfers. If he actually had possession of the money the second time and rolled it over, you may not have an IRA any more. He may have a distribution.

:bday:

I try to get my clients to discuss transactions that have tax implications with me before they complete the transaction. For that reason, I hate to tell them to go talk to their agent about how something like this works when the agent may be more interested in other aspects of the deal than the tax implications. However, I must admit that I do not like having to deal with insurance products - combining tax regulations with insurance regulations is just more regulation than I want to have to deal with. This gives me a mental block when it comes to insurance, and is something I feel like I need to work on overcoming. I just finished dealing with a client who made two rollovers in one year. He feels that the banks that he dealt with should have made sure he knew that he couldn't do that. But I am the one that had to deal with the tax problems this caused, and he is the one that is paying for the tax problems it caused. Had he talked to me first, this could have been avoided with a direct transfer in place of one of the rollovers. That is why I think NECPA is right to help her client with this before it gets to be a tax problem.

When did he actually get the high-deductible health insurance policy? If he had that in July, I would think that funding the HSA in October would be okay and he could pay those medical bills with the HSA funds. Or did he just now change insurance to a high-deductible policy that allows HSA contributions. If so, he might have over-contributed for this year anyway since the limit will be prorated for the number of months he had the high-deductible policy. At least, that is my understanding but I am not an expert on these policies.

I took the test when it was paper and pencil, so my experience probably would not help you. Good luck!

:bday:

I have looked at the Kindle, Nook and the Sony E-reader. I keep hoping that they will settle on a standard format so that if I buy a Kindle, I can download books from Barnes and Noble if I choose, and so forth. However, at this point in time they are each proprietary and I have been unable to decide between them. Therefore, I have downloaded the BN app to my Blackberry and use it for an e-reader. It is not ideal, because the screen is much smaller than that on a true e-reader. However, it does mean that I only have to carry one device because I am going to carry a phone anyway. I believe I could also download Amazon's reader for Blackberry but I have not done so yet although I have both of them installed on my computer. The books are fairly reasonable and prices seem to be very comparable between the various readers for the books. There are quite a few books that are free on each reader. Barnes and Noble does have two features that are, I think, unique. You can read any e-book for up to an hour each day at no charge while you are in a BN store. Also, they allow you to share the books you purchase with other Nook owners on a temporary basis. I would be interested to know what you decide. I am still on the fence.

:bday:

:bday:

:bday:

She is certainly entitled to take a break. I was just concerned for her and her husband and wanted to know that she was doing all right. She has been such a big help to me, and she is one of the reasons that this is my favorite tax discussion board. Thank you, Catherine, for checking on her and letting us know she is okay! :)

:bday:

I think that you have it right, for this year anyway. I am still waiting to see what happens in the future.

:bday:

From IRS website FAQ: How do I calculate the basis of a decedent’s assets who died in 2010? Generally, for the estates of decedents dying after December 31, 2009 and before January 1, 2011, the basis of assets acquired from the decedent is the lesser of the decedent's adjusted basis (carryover basis) or the fair market value of the property on the date of the decedent's death. However, there are two exceptions to this general rule: * The executor can allocate up to $1.3 million (increased by unused losses and loss carryovers) ($60,000 in the case of a decedent nonresident not a citizen of the United States, but with no loss or loss carryover increase) to increase the basis of assets; and * The executor can also allocate an additional amount, up to $3 million, to increase the basis of assets passing to a surviving spouse, either outright or in a Qualified Terminable Interest Property (“QTIP”) trust.

:bday:

I am becoming concerned. I haven't seen KC on here for about a month, and that is rather unusual. Does anyone know if she is doing okay? I miss her wit and wisdom! :(

I hope you all have a :bday:

I think I have finally finished all of them that are going to get finished in time. I told everyone that they had to bring their information in by Friday, October 8, for me to finish by October 15. I just had someone drop off 2008 information and last half (?) of 2009 - I told them not by tomorrow. Another one is dropping off their information by 5 today and wants me to get it ready in time tomorrow - HA! Some people just can't deal with deadlines... And I refuse to let it become my problem after a point.

:bday:

I would expect a financial penalty. I think the government is trying to eliminate the deficit by raising penalties instead of taxes.

:bday:

It is my understanding that you have to claim the child as a dependent on your tax return to be able to claim the child tax credit. However, it is also my understanding that merely having the divorce decree state which person may claim the exemption does not necessarily make it so according to the IRS.

Thanks! Y'all come on down and I will personally make the Tato Salad! And gladly join in the good stiff drink, any day after work!

:bday: