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Jughead

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Posts posted by Jughead

    What's wrong with the Air Force?

    in General Discussion

    Posted

    That's beautiful

    Indeed. Not a first for the Brits, though:

    Gentlemen,

    Whilst marching from Portugal to a position which commands the approach to Madrid and the French forces, my officers have been diligently complying with your requests which have been sent by H.M. ship from London to Lisbon and thence by dispatch to our headquarters.

    We have enumerated our saddles, bridles, tents and tent poles, and all manner of sundry items for which His Majesty's Government holds me accountable. I have dispatched reports on the character, wit, and spleen of every officer. Each item and every farthing has been accounted for, with two regrettable exceptions for which I beg your indulgence.

    Unfortunately the sum of one shilling and ninepence remains unaccounted for in one infantry battalion's petty cash and there has been a hideous confusion as the the number of jars of raspberry jam issued to one cavalry regiment during a sandstorm in western Spain. This reprehensible carelessness may be related to the pressure of circumstance, since we are war with France, a fact which may come as a bit of a surprise to you gentlemen in Whitehall.

    This brings me to my present purpose, which is to request elucidation of my instructions from His Majesty's Government so that I may better understand why I am dragging an army over these barren plains. I construe that perforce it must be one of two alternative duties, as given below. I shall pursue either one with the best of my ability, but I cannot do both:

    1. To train an army of uniformed British clerks in Spain for the benefit of the accountants and copy-boys in London or perchance.

    2. To see to it that the forces of Napoleon are driven out of Spain.

    Your most obedient servant,

    Wellington

    [no idea of authenticity, but the underlying point remains]

    ?s on logging flight time

    in General Discussion

    Posted

    And HARM only keeps paper records for 3 years, at least at HRT. If you want records older than that good luck b/c they're gone gone gone. Found that one out the hard way.

    No idea on HRT, but when I was handed my flight records at outprocessing (retirement), it has the reports all the way back to (but not including) UPT....

    Investment showdown -- beyond the Roth, SDP, & TSP

    in Squadron Bar

    Posted

    Is there's limit to the number of times you can back door this thing? If the answer is no, then why do we have Roth IRA contribution limits in the first place?

    No limit, at least until the law allowing it is repealed/superseded. The Roth limits predate the back door; the back door simply didn't address the limits, so they're still in place.

    And, you're right, in effect, there is no limit, you just have an additional hoop to jump through to keep the IRS happy. No, it doesn't really make sense....

    Investment showdown -- beyond the Roth, SDP, & TSP

    in Squadron Bar

    Posted · Edited by Jughead

    Does that still work if I already have a Roth IRA?

    Having one, two, or seventeen Roth and/or traditional IRAs is irrelevant. So long as you observe annual limits, you can make your contributions to a single account, to a different account each year, to multiple accounts in a given year, mix/match new accounts with existing ones, etc.

    As to your question, Nunya nailed it (along with your mom's back door, evidently)--since you seem skeptical, let me try from a different POV:

    There are two types of Individual Retirement Accounts (IRAs): Roth IRA & IRA (aka "traditional IRA"). Unless you're trying to do something complicated (contributing or owning real estate, precious metals, options, etc.), contributing to your IRA(s) is pretty simple: find an authorized custodian (pretty much any brokerage, though there are certainly other avenues), open the account, make your contributions, get rich slowly.

    While there are two types of IRAs, sometimes it's easier to think in three categories: deductible contributions; non-deductible contributions; and Roth (non-deductible) contributions. The first two are simply contributions to a traditional IRA, and deductibility/non-deductibility is (mostly) determined by income limits. There is NO income limit for making an IRA contribution; there ARE income limits for contributing to a Roth and/or for making a deductible (traditional IRA) contribution. Also, as you've discovered, those limits go way down when married/filing separately.

    Loophole ("back door") for the last 8-ish years allows anyone--regardless of income--to convert from a traditional to a Roth IRA. Make contribution to IRA, convert to Roth, simple. If your contribution (or portion of it) was deductible, you'll pay ordinary income tax on it; you'll also be taxed on any gains/deduct any losses you may have realized on the converted amount. This all applies to any existing balances you may choose to convert as well. Your custodian absolutely knows how to do this and will have you sign a form; only decisions you have to make is how much of the balance to convert and if you want them to figure the taxable amount or if you want to do it yourself

    So, for just about anyone wanting to contribute to an IRA but who exceeds the deductibility limit, it's a no-brainier: you can't deduct it anyway, so get it into the Roth via this method. If you can deduct your contributions, it's much more complicated, since you have to evaluate the current value of the deduction vs the assumed future value of Roth treatments--in your case, it sounds like you've already done that and want the Roth (which is probably the smart answer for most military folks). Either way, based on what you've told us, this sounds like what you want to do.

    Hope this helps!

    ETA: minor clarification

    New SOS in-correspondence

    in General Discussion

    Posted

    CSAF said [...] SOS in residence will be the norm. If you can't go due to ops deferments, etc you will be required to complete the correspondence course. He said you will be allowed to complete SOS in correspondence if you can't go in residence.

    Maybe it's all that acid I dropped back in the 60s (no offense, Huggy), but that sounds remarkably similar to what we then-young captains were told ca. 1995. I'll leave it as an exercise for the reader to figure how that worked out....

    I hope this sticks. I'm not holding my breath. My advice to any young CGO is to take it with a grain of salt until there's some hard evidence that it's truly the new normal.

    Investment showdown -- beyond the Roth, SDP, & TSP

    in Squadron Bar

    Posted · Edited by Jughead

    Does Finance have a clue?

    ThreeHoler neglected to answer this one (perhaps feeling it was self-evident): NO.

    Otherwise, what he said. I'll add that your first month of CZTE entitlement will likely result in under-contributing to your TSP insofar as the tax exempt portion is concerned; couple that with the answer to your question on Finance's clue level, and you'll have to open a case file with DFAS to get it un-fucked (ask me how I know*...).

    Another consideration is that your deferred (i.e., "normal") contributions are taken "first," from whatever portion of your pay is not tax exempt (if you're an officer, typically applies at O4 / 14-ish years on flight pay), then the tax exempt, up to your chosen percentages. As a result, you could end up limiting your deferred contributions (probably not what you want) if your exempt contributions exceed $33.5K ($51K - $17.5K). If you're planning on truly maxing it out, you need to carefully calculate your contributions to keep the two categories in balance.

    ETA: *ThreeHoler is correct about not being able to make lump-sum contributions, but if you find yourself in this situation, it's the one case where you CAN "write a check" to cover the contributions that should have been withheld (so don't spend it!!).

    VA Loans

    in General Discussion

    Posted · Edited by Jughead

    I received my 1098 from NBoKC and the VA Funding fee on the house I closed on this spring is listed as a Mortgage Insurance Premium (Box 4). According to the Googles, it appears that should be deductible on my 2013 taxes. Much of this fee was covered by a credit from NBoKC I received at closing, and I think the remainder was covered by the seller's closing costs. Is the entire amount still deductible?

    Look closely at your HUD-1; it probably labels the NBofKC credit as "lender credit" or other non-descript name. Point is, you paid the funding fee, not your lender; the VA collected the funding fee in connection with guaranteeing your loan; and your lender reduced their fees by $X, in a (technically) separate transaction between you & NBofKC (VA has no dog in the fight). The fact that the $X matches your funding fee is irrelevant. The amount of that lender credit is part of the loan pricing--it could be less than your fees; until the "mortgage meltdown" and subsequent regulations, it could have been more resulting in cash-out to the borrower.

    The tax implications of the lender credit will be reflected in your cost basis (i.e., will lower it) when you ultimately sell your house; the funding fee is deductible in the amount indicated on the 1098.

    DISCLAIMER: Not a tax lawyer, and the "some guy on the internet told me..." defense won't get you far with the IRS; rely on this to the extent it gives you a place to start... and at your own risk!

    ETA: What Hoss said....

    PPM Move Question

    in General Discussion

    Posted

    So what makes an enclosed trailer, a "motorcycle trailer"?

    In my case, pretty freakin' simple: I transported not one but two motorcycles on it. Additionally, it has two pairs of wheel chocks (front & rear) and tie-down points designed for motorcycles; transporting motorcycles is the purpose for which I bought it, and for which all modifications I've made to it have been designed.

    In the OP's case, I'm assuming his trailer is equally clearly a "motorcycle trailer," since he stated he bought it for a previous move but has since sold the motorcycle. If that's not the case, he may have a more uphill climb with TMO (which is already a PITA, as noted). He may need to prove his case (that it is a m/c trailer, was purchased and has previously been used for that purpose, etc.); so long as it is, in fact, a motorcycle trailer, he's good to go....

    In the case of someone trying to say, "Look, it's a motorcyle trailer!" for a trailer that does not otherwise qualify as HHG, and who does not own or transport motorcycles on it, and which is not designed to transport motorcycles--i.e., which is not, in fact, a motorcycle trailer.... Well, now you're in the territory that ThreeHoler & brabus warned against--don't do it!

    PPM Move Question

    in General Discussion

    Posted · Edited by Jughead

    Can I argue that this is a "motorcycle trailer" even though I am not transporting a motorcycle in it so I can get reimbursed for the weight?

    It doesn't stop being a motorcycle trailer because you put a non-motorcycle item in/on it. The JFTR language that includes the trailer in HHG is "and/or the associated trailer"--the "or" is the key part in this case. JFTR App. A., Pt. 1, "Household Goods (HHG)" definition, Para A.4.e.

    You will likely have to fight TMO, but you will be correct. My last three moves (2x PCS & retirement) were under the current rules [those who said you can "always" count a trailer are thinking of the previous rules, it's no longer true], and I had to do battle with 2 of the 3 TMOs I dealt with [and, hell, I had 2 motorcycles on the damn thing!]... twice each (inbound & outbound, though the outbound PCS didn't put up too much a fight, since they weren't going to be paying it).... That's why I know that particular JFTR definition so well. Point out to TMO that they're relying on the wrong paragraph (A.4.h) when they try to deny your "utility trailer," and that A.4.e. clearly defines your motorcycle trailer as HHG. Make them appeal it to the JPPSO if no one local will approve it--I had to do that twice, and they got it right 2 for 2....

    EDIT: Clarification

    • Upvote 1

    FY 14 Force Management Program (RIF, VSP, TERA)

    in General Discussion

    Posted

    I didn't/haven't done this.

    No deadline* to do so; you will pay tax on any gain, but otherwise it's just a paperwork exercise. If your original contribution was deductible (unlikely, given the situation you describe), you'll pay tax on that, too.

    *Unless the law gets changed. In any case, if a Roth is what you want, chances are "sooner" is better than "later"....

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