Key Points

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States That Don't Tax Income

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming

States That Don't Tax Retirement Distributions

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C:\Users\Jim Mason\Google Drive\_save\Finance\tools\txf_creator

Tasks to prepare for Tax returns

1. get hrblock software for the year
2. update hrblock software - HRBlock2019.exe - Shortcut ( online or manual download of updates )
   
   
3. For capital gains TXF data - see these 3 options ( Option 1 should work well )
   
   
4. Option 1 - edit the Fidelity csv file to get the selected columns and headings needed for the TXF format 4 record below
   
   if that fails due to bad Fidelity csv format
   
   
5. Option 2 - use a custom Groovy pgm to create taxable net gains from fin svcs ( like Fidelity ) 
   1. view the Fidelity tax form csv data does not have the symbol for the cusip 
      1. must construct symbol in groovy app as csv from this description
         PUT BAC $34 EXP 05/21/2021 BAC210521 5014619BZ
         BAC21051P34
   2. query closed positions for the year under each account does not have the acquire and sale dates
   3. GROOVY pgm to read fmr tax csv and generate the txf csv fmt
      Symbol,Quantity,Date Acquired,Cost,Date Sold,Proceeds,Gain
      
6. use HR Block import financial data first based on your Fidelity login credentials
   
   if that fails, then:
   
   
7. Option 3 - use Fidelity ATP to create a csv file with the right columns for net gains 
   1. use Fidelity ATP to get the financial net gains and download as an .xls file
   2. ATP > accounts > select account > select close positions > select period > view table > expand EVERY trade for lots > RB menu > export to xls
   3. optional — use groovy to create lot level details for every trade in TXF input format OR just assign default dates to summary lines based on CAP gain as LT or ST

   4. columns for TXF input file - TXFCreator only reads up to "Gain" column – rest is to automatically set dates using ST or LT gain info
      

      Symbol

      Quantity

      Date Acquired

      Basis

      Date Sold

      Proceeds

      Gain

      Short-Term G/L

      Long-Term G/L

      Basis/Share

      Proceeds/Share

      
      

   5. use txf software to convert net gains csv to file.txf format
      
      
      
8. get ccardcredit card, bank details as csv files for the year and categorize by expense type
9. load last year's returns after starting a new return
10. get last year's tax payments, refunds
11. get last year's taxes paid ( property tax etc )

Task - Convert taxable net gains csv file to TXF format

TXF File formats defined - use format 4 for stock sales

https://taxdataexchange.org/docs/txf/v042/index.html

use terminal on cd Google drive to run TXF creator in Windows ( run.bat ) or Linux ( run.sh )

C:\Users\Jim Mason\Google Drive\_save\finance\taxes

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/Volumes/GoogleDrive/'My Drive'/_save/finance/taxes

see more details on TXF in  _tax-notes2.txt

//=======================================
x140 ATP history reported

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Another way to reduce RMDs is by buying a deferred income annuity. You can invest up to 25% of your IRA or 401(k) account (or $135,000, whichever is less) in a type of deferred income annuity known as a qualified longevity annuity contract (QLAC). When you reach a specified age, which can be as late as 85, the insurance company turns your deposit into payments that are guaranteed to last the rest of your life

The portion of savings used for the annuity is excluded from the calculation to determine your RMDs. For example, if you have $500,000 in an IRA and transfer $100,000 into a QLAC, your RMD is based only on the remaining $400,000. This doesn’t eliminate your tax bill—it just defers it. The taxable portion of the money you invested will be taxed when you start receiving income from the annuity.

QLACs offer other advantages to retirees who want guaranteed income later in life. Because you’re deferring the income stream, payouts are much higher for deferred income annuities than they are for immediate annuities, which start payouts right away. For example, a 65-year-old man who invests $100,000 in an immediate annuity will receive a payout of $493 a month, according to www.immediateannuities.com. That same amount invested in a deferred-income annuity that begins payments at age 80 would pay $1,663 a month.

define options for accumulation period, investment guaranteed minimum returns, principal return to beneficiaries etc

Potential Value Opportunities

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