Bogleheads.org

Medicare doesn't count as a HDPD, so once you are covered by Medicare you can't contribute anything further to the HSA. But you can certainly keep the HSA account active, and keep what investments you have. You are allowed to reimburse yourself for any medical expenses you paid from other accounts. ...

I did not talk with anyone, just did it myself. There are a good number of tools out there which should help. I didn't rely on any particular one but was looking for a convergence of results. No one knows the future but you know yourself the best. I've been retired for 2 years and things are good. ...

Do you see anything I am missing in my analysis. There is one huge item you're missing. Consider the return on investment of Fire Insurance -- zero. It has to be one of the worst investments in the world. So why do we buy it? Try evaluating the matrix at the same probability of payoff as a fire ins...

We've played this game for years with Chase and United/Continental. You can get a new card immediately after canceling the old one, and get the fee waived for the first year, and get the statement credit for flight purchases, and get the first checked bag free, and get priority boarding. You just do...

My "plan" is to leave that option open, depending on how things go over the next 5-10 years. Also. But....be aware that somewhere around the mid 80s (just when the mortality credits become significant), an annuity purchase is no longer an option. Insurance companies seem so worried about ...

If you look at quotes in the options market, there is a clear pattern -- longer term options cost more. Both puts and calls. Financial professionals are the ones that determine those prices. I think the statement from financial professionals that stocks are safer when held longer is the height of hi...

I don't think it is likely that existing balances in Roth IRAs will be taxed. Consider the changes in the fiscal cliff legislation this year -- it increased the opportunities to do Roth conversions (and pay taxes this year, not later). At most I think rules for new contributions may change. Actionab...

RMD will spread those taxes over many years. What I am missing here? One of the advantages of a Roth is that there are no RMDs. So if the pension and Social Security really cover your expenses, you won't need to touch it. The bad case is when the unneeded RMD from a traditional IRA causes the SocSe...

It is the value of all IRAs on 12/31 that matters for the Roth conversion. So rolling the 401k into your IRA (and keeping it there) would destroy the backdoor Roth. But how about doing the rollover into some other qualified plan? Does you new employer offer a 401k plan? Or, how about a solo 401k plan?

Can't answer about the "typically", but I know that my employer allows such rollovers.

Local ordinances might help you. Where I live the town requires every property to receive a "continuing certificate of occupancy" before the deed can be transferred. Working heater is certainly included in the CCO, along with railings on every outside stairway, hardwired CO2 detectors, etc.

I believe it was actuarialy neutral when the program first started, but became less so as average lifetime increased. The formulas were adjusted in the 1980s and once again became actuarialy neutral (or nearly so), but average lifetime is still increasing. At this point, 30 years since the last form...

As for Bill's other concern....We are thinking about a rollover to a rollover IRA at Vanguard not a lump sum payout. If you take a lump sum payout here are the details: • You may choose to roll over your lump sum distribution directly into an Individual Retirement Account (IRA) or another employer’...

Two additional points that I haven't seen made yet. I also have a Cash Balance pension plan with MegaCo; if I leave and request a lump sum payment I won't see the "cash balance" -- I'll only get a discounted fraction of that based on my age. Something worth checking in your pension plan be...

I check transactions and balances in each account at the end of each month, mainly to check for anything strange (while the memory of what I did is still fresh). An excel spreadsheet automatically combines all of those into a net worth statement, but I'd have to look at that worksheet to say I check...

See pdf p175 (numbered as p165 in footer) for details.
http://www.treasury.gov/resource-center ... FY2014.pdf

High taxes now, versus low taxes in retirement. Sounds like a no-brainer. But I don't think it is. There are two aspects in my decision to go with the Roth 401(k): I prefer to pay taxes out of income rather than out of savings, and secondly, planning for required minimum distributions adds lots of c...

As you've noticed, home prices are higher in good school districts, and so you end up with a larger mortgage to buy such a house. But also, when you go to sell it in 15-20-30 years, you'll also be able to fetch a higher price. Even in the recent slump, our town was higher than the surrounding ones a...

You know, of course, why your company is offering you this choice -- the DC plan is much much cheaper for them. Unless you are a part owner, what is best for the company isn't likely to be best for you. The DB formula looks like it is designed to give you half pay at 30 years. The COLA makes it an e...

So now you want to file another unnecessary form to make up for the first unnecessary form???? Let it ride.

Its the estimate of expenses in retirement that still has me scared about "pulling the trigger". I know what we spend now, but it is constrained by working, and not valid to just project that amount forward. We paid the $3K for a fee-only CFP's second opinion. In addition to helping us wit...

I exceed the after-tax limit every year; there is just no way to make sure I reach it without going over. Sometimes fairly significantly. Also some of the funds in MeagCo's 401k are better than I can get on my own, so I don't mind having investments in them for the year. Every year in March I get a ...

Saving was next to impossible with student loan payments, house payments and two small kids (with starting college education funds), but we budgeted to stay within our income and didn't add to debt. As career progressed, and salary increased, we kept the lifestyle sort-of fixed, and saved the excess...

I think you got a gift -- the tax-deferred earnings on the over contribution. I would have made it bigger if I could have. Granted, you have to add the excess to income for 2012, but the tax-deferred growth is a huge benefit.

You are absolutely right on the sequence of events happened here. The only thing is that, on my 1099-R from Fidelity, the "taxable amount not determined" is not check, instead the "Total Distribution" is checked. But the 2a "Taxable amount" is 0. Not sure whether it is...

If you are confident that (2) is true, no estimated payments are needed.

It is worth checking this at several points during the year to make sure.

Sounds like PPA06 (Pension Protection Act of 2006) is involved in these calculations. There are lots more details needed to analyze the choices. Since PPA06 requires all lump sums to be actuarialy equivalent to the annuity starting at age 65, you need to somehow figure out how that annuity amount is...

The Roth conversion rules don't have the same grace period as IRA contributions have. If you do the conversion in 2013, then it goes toward your 2013 taxes. Since you did not do the conversion in 2012, it does not go toward your 2012 taxes. I'm assuming from what you said that you had the physical c...

... Traditional - MPT Paradigm Portfolio focus Technician - Investment Manager * Emphasis on building large portfolio using saving and investment diversification. * Tailor client’s financial risk to risk tolerance. * Impart belief in the safety of stocks over the long term. * Design sustainable wit...

I don't budget; I track our spending. I think there is a difference -- in our case none of the output of this tracking feeds back into decisions on spending in the future. I use the downloadable transaction records on our checking account, and make everything go through our checking account. For eve...

As described in other threads, I filed a 4868 to make a $5K over-payment, to be refunded as IBonds. And did it all through freefilefillableforms.com In filing the online 4868, part of the form gives a bank routing number and account number for the payment, and a date on which to make the payment. So...

Maxing the 401k (the 415(c) limit), 403(b), two IRAs, and the NQ salary deferral offered by MegaCo. Totals ~70%. Kids being through college helps. Just curious, is this 70% of gross pay OR net pay? Actually gross. I'm amazed too. The NQ deferral is non-taxable until paid out in 10 years, and doesn'...

Maxing the 401k (the 415(c) limit), 403(b), two IRAs, and the NQ salary deferral offered by MegaCo. Totals ~70%. Kids being through college helps. Just curious, is this 70% of gross pay OR net pay? Actually gross. I'm amazed too. The NQ deferral is non-taxable until paid out in 10 years, and doesn'...

MegaCorp that I work for figures I work 2112 hours/yr, and uses that to convert annual salary to hourly rate. So for your $100K, that converts to $47.35/hr. One day (8 hrs) is $378.80. (And, I have no idea how 2112 is calculated).

Maxing the 401k (the 415(c) limit), 403(b), two IRAs, and the NQ salary deferral offered by MegaCo. Totals ~70%. Kids being through college helps.

High taxes now, versus low taxes in retirement. Sounds like a no-brainer. But I don't think it is. There are two aspects in my decision to go with the Roth 401(k): I prefer to pay taxes out of income rather than out of savings, and secondly, planning for required minimum distributions adds lots of c...

I do all my own investment decisions, so I can't give any experience on that part. But I have used both a CFP and a "Wealth Manager" in the past year on various strategy questions. While I agree the term "Wealth Manager" is for snob appeal, the differences in recommendations were...

Just to add one more monkey wrench to the mix -- unless you are the executor of their estate, you have no control over the legal fees that come off the top. You only get a portion of the remainder. Zero is the right valuation for now.

Keep it simple, and keep it contained. I keep two file drawers in the basement, and one folder in the desk upstairs. Everything paper goes to the folder upstairs. Once per year (Jan/Feb) I go through it and separate out everything related to taxes. The rest goes to drawer#1 in basement, in a folder ...

Thanks for all the input. To respond to all at once,... Several posters under age 40 say don't assume any Social Security benefits, and plan accordingly. The consensus of the rest seems to be to project either full promised benefits, or 75% of that. Anything worse is likely beyond the 98 %-ile, in t...

Question: Is the 5 years younger relevant, or is it just younger that is important? That is, can we say that the optimal strategy with * a younger spouse * whose benefit even at 70 will be less than 1/2 of higher earner's benefit at FRA (i.e. max spousal benefit) is (assuming both live beyond age 7...

I'd like to do a stress test on the Social Security aspects of our retirement planning, but don't really know what to include for worst case for Social Security benefits. I'd like to find out what others use. Stats right now: we're both 60, I have 35 years of max withholding, wife's PIA is 2/3 of mi...

The other risk, certainly significant to you, maybe financially significant and maybe not, is if you die before age 70. That would stop the delayed retirement credits, and sets a lower widow benefit.

Have you considered just doing your analysis in real terms and forgetting about trying to predict inflation? The problem I have with doing the analysis in real terms is that my pension has no COLA. So its real value declines over time. The magnitude of the decline makes a huge difference in the pro...

The FAFSA was required before consideration for merit scholarships (schools wouldn't consider merit grants if you qualified for need-based grants). So even if you know you wouldn't qualify for any scholarships based on need, do you want to cut off the merit option too?

With more and more buying online, I've dedicated one specific credit card for online purchases. Every other card is only used by physically placing it in the card reader (either by us or by a store clerk in our sight). That limits our exposure. I would like to know how cards get compromised. Over th...

As far as my wife's annuity decision I assume you mean I would be doing the robbing? We both work at the same company - hope things don't change before the time she retires. There is no pop up provision. To be actuarily fair, the JS100 factor for your wife's pension should be approximately 91% (due...

You are being offered a huge subsidy on the JS100. The 83.6% payout is roughly actuarily equivalent to the straight life if your spouse is the same age as you (I calculate 84.5% to be fair). Since she is 10 years younger, the payout should be ~76% to be actuarily fair. Take the gift! The more intere...

I'm curious about your decision to start your wife's spouse benefits early. It seems from your calculations that she would receive $1050/mo now, or $1164/mo by waiting until Sep 2014. Thats $14,700 now, versus $114/mo forever, and a breakeven point at age 76. If you are reasonably healthy, you'd col...

I'm curious -- how is it reported on your W-2? In the box 1 labeled "Wages, tips, other compensation"? And is there something in box 11, "Nonqualified plans"? If the numbers are different, why doesn't the difference count as compensation for an IRA contribution?