Thanks for your reply. Please see my responses posted above on what I found on stepped-up basis, tax bracket confusion, and why I prefer in-kind transfer. I have used the same accountant for 25 years to do my tax return and she said to come in next week to help me and would not charge me (need to bring her some really good chocolate desserts!) as this is way more $ and potential tax bill than I have ever had. And to start getting my mind ready for what I owe when she prepares my 2024 tax return. thanksSorry for your loss. As @HomeStretch says, you had a step-up in basis on 15-Apr, so from then to now there likely isn't that much gain. I concur it might be easier to sell it all at ME and then make a cash transfer to Vanguard (no need to track that basis at Vanguard is correct if they just receive cash). Once the cash is at Vanguard, you're free to buy your 3-Fund Portfolio components, although holding VBTLX in a Taxable accounts is likely not tax-efficient (maybe doesn't matter since you said you're in a low tax bracket).1. Probably want to close my dads Inherited Merrill Account (they want me in high expense ratio 3rd party funds) and move it to my Vanguard Account. His stocks Cost Basis was stepped-up at April 15, 2024.
2. After double checking that Vanguard has that cost basis correct I would like to sell as much stock and mutual funds as possible that will be about break even on owing tax (may need to go to my accountant) On same day buy Vanguard three funds: VTSAX, VTIAX, and VBTLX.Unless you expect a dramatic change to your tax-bracket over the next 10 years (perhaps work income picks up significantly?), then it's likely very straightforward to just take 10% of the initial balance every year (unless you need more to meet expenses).3. Since my mom’s inherited IRA was started in 2017 it doesn’t have the new IRS guidance on after 2020 like my dads inherited IRA of taking it all (RMD) in 10 years.
My work income has really dropped in the last 4 years (so low tax rate) and I have not done any Contributions for at least 10 years so may want to ask my tax accountant about help with taking some of the 10 year requirement into Contributions.This is an excellent plan, because it's very simple and yet fully diversified. Given your comment about lower income over the last 4 years and no retirement savings over the last 10 years, you might do well to look over your current finances (emergency fund, solid monthly budget with any opportunities to cut back expenses taken advantage of, etc.) as well as your retirement outlook (unless you're on the plan of "I'm working until I die"). The Wiki Main Page is a good place to start but if you have specific questions about these topics, we can try to help if you post them here (or in a new thread). Again sorry for the tough times you're experiencing, but hopefully there's a light at the end of the tunnel.4. My goal is to simplify to as few accounts as the rules and penalties will allow for just 3 Vanguard Funds. VTSAX, VTIAX, and VBTLX Thanks
Statistics: Posted by Wrigs1 — Sat Aug 10, 2024 3:02 pm — Replies 6 — Views 831