Roth Individual Retirement Accounts let eligible taxpayers contribute to an after-tax savings account. However, not everyone is allowed to participate. If you're over the modified adjusted gross income limit for Roth IRAs, you're not allowed to contribute, so any money you put in your account is treated as an excess contribution. Excess Contribution Penalty You must pay an excess contribution penalty equal to 6 percent of the amount you contributed to your Roth IRA when you contribute even though you're not eligible. For example, if you contribute $5,000 when your contribution limit is zero, you've made an excess contribution of $5,000 and would owe a penalty of $300. You pay the penalty when you file your income tax return, and it counts as taxes you owe. Carrying Over The penalty for excess contributions continues every year that you don't correct the excess contribution. For example, if you contributed $5,000 too much last year, and you're still not eligible to contribute this year, you'll owe another $300 penalty when you file your income taxes. However, you can use your current year contribution limit to reduce or eliminate your excess contribution that carries over from a prior year. Suppose you contributed $5,000 last year when you made too much to contribute and paid the excess contributions penalty. If you're eligible this year, you can count that $5,000 toward your contribution limit so you won't owe the penalty again. Correcting Excess Contributions To avoid an early withdrawal penalty, you must withdraw the excess contribution before your tax return is due, including any extensions. In addition, you have to withdraw any earnings on the excess contribution. For example, if you contributed $5,000 too much, and that $5,000 grew to $5,500 by the time you corrected this distribution, you would also have to withdraw the $500 in earnings. If instead the $5,000 had declined to $4,600, you would only have to withdraw $4,600. Tax Treatment of Earnings If you withdraw earnings to correct your excess Roth IRA contribution, you must include them in your taxable income for the year. In addition, if you're not allowed to take a qualified distribution from your Roth IRA and don't qualify for an exception, you also must pay a 10 percent early withdrawal penalty. Exceptions include if you're over 59 1/2 years old, permanently disabled, have significant medical expenses or are paying higher education expenses.
I put ~12% of my allocated cash in long today to targets that I think have solid businesses that will recover quickest when this is in the rear view. Plan is to deploy similar ~12% at various points over the next month as I think we may not be through the worst of it, but that downside will be priced in as cases and deaths peak over next month. The stimulus will prop up the market this week but I think we see another 10-20% slide before the true bottom. Just trying to be in at various points around it. The focus of my allocations is on tech / cloud / e-commerce. I wanted to get into a few financials/transactions (V being one) but didn’t buy the open on them as most were up 10% at open. Will wait for a slightly lower entry point on those. My total allocation to this strategy is approximately 60% of my total available cash so keeping a 6 month cushion and some flexibility to hedge if things go through the floor (again) or to buy further at even lower points to dollar cost average.
Company I've been monitoring for about a month now. Has a 100% buy rating at the moment and while everyone is currently fixated on the COVID cure possibilities, they have a lot of very promising research that may come to fruition in the next couple of years for everything from HIV to Alzheimers. https://www.marketwatch.com/story/i...vid-19-vaccine-2020-03-24?link=MW_latest_news
Besides the shit going on now, their amusement parks and cruise lines are taking a hit and outside of the Mandalorian their streaming service hasn't been exactly well received. Theyre reducing streaming quality in Europe, not to mention the movies getting pushed back. But I've also bought some puts that aren't looking too good, so what do I know.
Commenity is another HYSA option that we use. Downside with them is that they won’t sync with Mint (obviously not an issue if you don’t use Mint.)
Anyone else been buying long calls on undervalued and soon-to-be-bailed-out companies. All my 1/15/21 calls bought in the last two weeks are up 40% or more.
Well, they also got hit with the civil case for lying about their cure readiness early this month. It won't settle until sometime in May probably, but the news definitely made them take a hit.
Has to be. Until a stimulus goes through and testing is readily available to everyone, I think this will continue to bounce.
I have to think if we make it to Friday still with no stimulus, and if the case numbers continue growing as expected, we give every bit of this back and then some.
Ex-dividend date for I-shares ETFs is tomorrow. Will be interesting to see what they end up being. If they are hit now or it waits a quarter.
Invesco Mortgage Capital Says Unable to Meet Margin Calls Invesco Mortgage Capital says it was unable meet margin calls it received on Monday. Invesco Mortgage Capital (IVR) - Get Report said Tuesday it was unable meet its margin calls it received on Monday and it didn't expect to be able fund the anticipated volume of future margin calls under its financing arrangements due to the disruptions caused by coronavirus pandemic. Shares of the Atlanta-based real estate investment trust were tumbling 47.7% to $2.79. Invesco also said it was also in discussion with lenders regarding forbearance agreements, where the lenders would agree to forbear their rights with respect to an event of default. "The company cannot predict whether its financing counterparties will enter into a forbearance agreement, the timing of any such agreement, or the terms thereof," Invesco said in a statement. Invesco also said it would delay payment of its quarterly cash dividends. The 50 cents a share dividend had been declared on March 17 and was to be paid on April 28.. Invesco primarily focuses on investing in, financing, and managing residential and commercial mortgage-backed securities, and other mortgage-related assets. "The company will continue to evaluate its liquidity situation and plans to provide updates regarding new payment dates and, if necessary, new record dates, for the dividends once such dates have been determined," Invesco said in a statement.
You can still do Roth even if you’re a high income earner. Just have to go through the backdoor method.
vangard makes doing backdoors crazy easy i have a trad ira account that they never close even when i empty it out, i fund it, then they have a button to "convert to roth" which lets me deposit it right into my existing roth can be done all in the same day
The title is misleading also: https://www.google.com/amp/s/www.orlandosentinel.com/coronavirus/os-ne-coronavirus-orange-stay-at-home-order-20200324-2nfuihnaujc6xifbgsyiedffpe-story.html?outputType=amp
6 trillion dollar bailout? Somebody closer to the specifics explain to me what the hell they are going to do with that?
6 trillion dollar bailout? Somebody closer to the specifics explain to me what the hell they are going to do with that?
My trader buddy, and I have no idea if this makes sense give the package, says that 6 Tn leads him to believe they expect 3 more months of basically shutdown. Says it takes about 2 Tn per month to keep the economy going, and in the absence of consumers and participants the government will have to fill a large portion of that. Sounds like life support rather than stimulus to me.
FWIW I don’t know about the numbers but agree with the outcome. The direction is basically to keep the banks liquid to ensure they can keep key corporations running through extensions of credit. The banks know they’ll have to pay all this back.
Someone will try to hold the country fucking hostage over some bullshit or other and keep it from passing today.