What I Do at Work

Since I haven't had any ideas for a good post (promise rainbow cake post will come soon), I thought I would share what a typical day at the office is for me.  Below is what I get to research and write about, though it may not be on a daily basis.  Have fun and don't fall asleep!

Recharacterizing an IRA Conversion

The IRS does not offer many “mulligans”, however, one is available with regard to Roth IRA conversions.  For individuals eligible to invest in a Roth IRA, you can transfer assets from a traditional IRA to a Roth IRA by utilizing a conversion.  A conversion is a taxable event during which funds are distributed from a traditional IRA and rolled into a Roth IRA either directly or within 60 days of distribution.  Taxes are due on the value of pretax contributions and any earnings. The IRS allows individuals to “undo” the conversion by recharacterizing the converted funds back to a traditional IRA, thereby pulling the funds out of taxable status and according the individual a lower tax liability.

A Roth IRA is an individual retirement vehicle that allows individuals to set aside after-tax dollars.  Earnings on contributions are not subject to income tax as long as you hold the account for at least 5 years and you are at least 59 ½.  There is an early withdrawal fee of approximately 10% if you withdraw the money before 59 ½ and without a qualified reason.  Be aware that if the distribution is not considered “qualified,” it is also subject to tax.  Unlike a traditional IRA or 401(k), there are no required distributions.   The principal restriction of a Roth IRA is the AGI income limitation that excludes high-earning individuals.

A Roth IRA is traditionally limited to individuals who make less than the AGI limit prescribed by the IRS in a certain year.  For single filers, the AGI limit was $107,000 in 2011 and $110,000 in 2012; and for married filers, $169,000 in 2011 and $173,000 in 2012. In general, individuals are taxed (at current rates) on the entire amount converted, as these monies are moving from a pre-tax vehicle to a post-tax vehicle.   However, the IRS allowed anyone who made a conversion in 2010 to defer income from 2010 and split the tax burden between 2011 and 2012.  This exception was because, for one year only, the IRS made Roth conversions available to everyone, regardless of their AGI. (Note that the rule was changed for 2010 only and the traditional rules are back in place for any subsequent year, barring an act of Congress.)

An individual’s tax liability is determined based on the value as of the date of the conversion.  If possible you should project the value in order to make sure there are available funds to pay the tax liability.  Individuals should also consider if the value of the conversion will put them into another tax bracket, which would result in a much higher than desired tax liability.  A conversion can also increase taxes on Social Security and affect the premium you pay for Medicare Part B, or it can trigger alternative minimum tax (AMT) rules.  If you did not consider the above or did, but intervening events land you in a less than ideal spot after making the conversion, or if you just want to, the IRS allows you to “take back” or recharacterize part of the conversion.   Recharacterizations of IRA conversions are available to anyone.  

To recharacterize either all or part of the Roth conversion, you will need to transfer the recharacterized amounts to a new or existing traditional IRA via a trustee-to-trustee transfer.  The IRS does not allow you to transfer the amount back into the plan from which they were originally distributed and the funds must pass from one financial institution to another or change accounts via an intra-institution transfer; the funds cannot enter your hands.  You also cannot reconvert the amount recharacterized to the same or another Roth IRA until the later of 30 days after the recharacterization, or the year following the year of the rollover or conversion.  However, this waiting period does not apply to amounts other than the ones you recharacterized.  The deadline for recharacterizing a Roth conversion is your tax-filing deadline plus extensions.  If you file the tax return on time (generally by April 15), you receive an automatic six-month extension, which means your deadline to recharacterize a 2011 contribution is October 15, 2012.  You must report the recharacterization on your tax return as directed by Form 8606 and its instructions. Practice note:  the recharacterization of a contribution is not treated as a rollover for purposes of the one-year waiting period.

For more information, you should speak to your financial advisor or tax preparer and review IRS Publication 590 and the Form 8606.

Greetings Traveller!

As you might have recently seen on my fb wall, I've lost my husband, yet again, to Borderlands 2.  I remember losing him to the first Borderlands but I also remember being a bit intrigued by the game, that doesn't happen very often.

The world created in the game, Pandora, was unique, the characters were intriguing, and I wasn't completely pissed off when it was on my tv.  So far, A++.  In Borderlands 2, Pandora seems more alive.  There are more people, more places and it isn't do desolate.

Per the Borderlands 2 website, Borderlands 2 follows the story of four new Vault Hunters as they fight to free Pandora from the clutches of Handsome Jack, the brilliant, charismatic, and utterly despicable CEO of the Hyperion Corporation.   Players will fight across the whole of Pandora to stop Jack from awakening an ancient alien evil known only as "the Warrior." Their quest will bring them into contact with some familiar faces from the old game – most notably, the original four Vault Hunters: Roland, Lilith, Brick and Mordecai. They, along with some brand new characters, will help players defeat Jack, destroy the Warrior, and save Pandora.

Borderlands 2 doesn't appear to recreate the original game but make the weak parts better.  How would I know this, you ask?  Well, my husband doesn't appear to run his commando off cliffs or into mountains as much.  I've also noticed he's not running through the game as he normally would.  He's taking the time to stop and explore....which means my tv is occupied for longer by this game, unfortunately.

The multi-player seems to be the best part of the game though.  My husband and his friends seem to get sucked in for hours riding in their nuke launching commandos and heading into battle with ridiculous weapons.   I also hear and (somehow) laugh at a lot of what Claptrap has to say.

All in all, I don't hate it and it makes my husband laugh like a little girl... so it's awesome!

You should check out their web-site here.

What Makes Me Go Awwww...

Last night, before I headed off to my Advil induced sleep I was stumbling on Firefox and I came across the cutest pictures of a joey and wombat sharing a pouch. 

 Now, if you know me well, you know I LOVE wombats...I think they're just so freakin' adorable!  Well, this morning I did some digging and I found out these two were rescued by an organization called Wild About Wildlife.  They were formed after the horrible Black Saturday bushfires that burned across Victoria, Australia in 2009.  Over 2,000 houses were lost and 173 people died as a result of these fires. 

But not only human beings were affected by that fire, scores of animals lost their "homes" that day as well.  Many of us in the US remember this picture that ran in our news.  It still breaks my heart but, at the same time, gives me hope that there are people out there who want to protect and help animals.

The great people at Wild About Wildlife took in those orphaned or injured animals and worked to rehabilitate them so they could be released back into the wild.  Though the fires were back in 2009, their journey has not stopped as they continue to care for injured roos who have been caught in fences or hit by cars and other orphaned/injured wombats, birds and bats.

My favorite has to be Peggy the wombat.  She's got a new playpen as she's becoming more active at night. You can check out a video of her antics on their Facebook page.

There are also some great pictures of wombats DJ and JoJo, which can't help but make you smile. I mean, don't you think Monty would love these two as play mates?

They've got quite the number of residents at the sanctuary and could absolutely use our help.  Please check out their Facebook page and you'll see all these wonderful photos there as they absolutely do not belong to me, though I wish they did.

What speaks to me the most about these pictures and about the work Wild for Wildlife does is that this type of work is the one thing I could do in life that would be absolutely perfect for me.  I think I'm a good lawyer but really I would LOVE to do animal rescue as I think it would make me the happiest in life.  But, I've got student loans and other bills to pay, so I guess I'll have to do it on the side!

Renaissance Faire

Last Saturday Paul and I got to watch Luke and Cecelia and we decided to head to the NY Renaissance Faire. My sister and Brother-in-Law introduced me to the Faire when I was in high school and I loved it.  I even dressed up!  The people were great, the shows were fun, and who doesn't like snacking on a turkey leg!

So, even though the kids had already been we decided to go back as Paul had never been the Faire in NY.  We had gone to King Richard's Faire a number of years ago and honestly, I wan't too impressed.  Having been to the NY one, my expectations were set fairly high.  Needless to say, I was disappointed.  The shops weren't great, the entertainment seemed kinda dull and the food was meh.  With that in mind, I just knew Paul would have a blast.  He wasn't disappointed.

We ladies started out by getting new head garlands as the boys had already donned their kilts and capes.

We walked around and saw all the wears for sale, we even tried on some hats.

Meet Samurai Jack

Finally, we started getting to the interesting and truly renaissance faire - St. George's Dragon Orphanage.  Although Luke and Celia wanted one, our rule was they could get anything that wouldn't hurt/maim people and wasn't alive.  They were not please by this limitation.

There was awesome photobombing to be had at the knife throwers show:

All in all we had a really great day.  We walked around for over 5 hours and not once were we bored.  Then it was off to Bartaco for a ridiculous dinner and then finally, we all got to collapse at home with Monty and Sparky.  There may have even been some magic played. Huzzah!

What Do You Do With It?

The other day, I thought to myself....I haven't written anything in awhile.  How sad it that?  I enjoy writing.  I think when you're not enjoying life, it's really hard to find something good to write about.  Things have changed, however.  

I'm coming off a two week hiatus where I saw my family, relaxed, cleaned my house, and tried to get my life back in order.  But as I've told a few of you, I'm struggling with what to do with the feelings I hated feeling but can't seem to get rid of.   I wasn't sure if I'd make it through each day without exploding and now all of a sudden I'm completely fine.

My first reaction was that it hasn't been long enough and I don't have enough distance.  But is that really the case?  Can you truly forget those feelings of pain, hate, and self doubt?  I'm not sure you can.  I've still got those feels from bad break ups in college, the pain of losing friends along the road, and I remember the self doubt I felt every single day of law school.  So what to do?

Honestly, I want to scream at the top of my lungs at those who made me feel that way.  I don't think I want them to feel like how I felt as I don't wish that on anyone.  I just want them to know once and for all how they made me feel.  As a person. As a human being.  As someone's daughter.

What I'll take away from this and maybe this is what I'm going to do with it is never EVER make anyone feel how I felt.  Everyday I will try to make someone smile.  I will try to help and I will teach.  I won't let anyone struggle.  Cause that's who I am.  Well, that's who I was and who I hope to be again. I found the following on Pinterest and I hope to follow them:

If this how I put those feelings to rest, I'm better for it.  For once, something good will come out of anger and self doubt.