TurboTax & IRS Form 8621

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SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 404
TurboTax & IRS Form 8621

What a pain… I spent my whole Sunday on TurboTax.  Unbelievable the time it takes to report my wife self-employed business and report the foreign accounts.

Anyway now I apparently can’t e-file my returns because TurboTax doesn't support form 8621. Looks like I have no other option but to mail the returns.

Anybody got this issue with form 8621 to make a QEF election for their PHYS, PSLV or CEF shares?

Thanks!

 

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
Sorry, But Please Consider The Roth IRA

Sorry. Because I don't make enough money, all of our investments are tied in 401(k) and Roth IRAs and one little traditional IRA (there was a tax reason for it when I did it).

For most people who earn wages, the Roth IRA (some say the 401(k) plan, too, if you get a decent match and some decent choices) should be where money for investment and retirement goes first. (Unless you really need the earnings, too, and not for a house).

Roth IRAs have several very important advantages, including protection from creditors (up to a little over a million per account) and the ability to withdraw contributions (but not earnings) at any time for any reason...

And a minor advantage: Why file tax forms to report taxable income when it's held within untaxed retirement account? (At least that's my understanding of it. I am not a tax accountant or CPA, so you should consult one.)

For a couple, that's $10,000 per year ($5,000 times two) that they can contribute after-tax into their respective Roth IRA accounts for Tax Year 2012. And starting with Tax Year 2013, that's $11,000 per year (that's $5,500 times two). that you can sock away.

Oh, and if you ever receive some kind of gift or windfall... Such as, say, your parents gave you an amount of money that falls under the gift tax limit (that would be up to $13,000 you received from each parent or $26,000 total in 2012, or up to $14,000 you received from each parent or $28,000 total in 2013)...Consider "living off the gifts" while putting away the maximum earnings that you can into the Roth IRA. That way, you can truly benefit from tax-free growth.

Lastly, so what if you have to mail in the returns? I assume you can still put in for direct deposit of your tax refund...

Poet

SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 404
Re: Sorry, But Please Consider The Roth IRA

 

Poet,

Thank you for your reply.

I also have CEF in my 401K and my understanding is same as yours, I don’t think there is anything to file with the IRS.

What we don’t keep in the 401K is the money we’ll need before the retirement age so no choice unfortunately.

Thanks again!

 

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