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Re: 'Post-Tax' / Non-Deductible 401k Contributions

Alternative 1 Pre-tax contributions: $18,000 Company matching: $14,000 Post-tax contributions: $21,000 (I will roll this amount into my ROTH IRA) Alternative 2 Pre-tax contributions: 0 Company matching: $14,000 Post-tax contributions: $39,000 (I will roll this amount into my ROTH IRA) I was under t...
by DSInvestor
Sun Dec 21, 2014 4:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: 'Post-Tax' / Non-Deductible 401k Contributions
Replies: 14
Views: 746

Re: Stop contributing to 401k to pay off CC

You'd have more take home pay to attack the debt if you change your 401k contributions to Traditional 401k instead of Roth 401k.
by DSInvestor
Sun Dec 21, 2014 12:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Stop contributing to 401k to pay off CC
Replies: 21
Views: 1162

Re: Traditional IRA

Traditional IRA and Roth IRA share a $5,500 contribution limit per year. If you have already maxed out a Roth IRA for $5,500, you have no room left for contributions to Traditional IRA. If you wish to save more than 403b and IRA will allow, taxable accounts are a good choice. Roth IRA has some incom...
by DSInvestor
Sat Dec 20, 2014 7:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA
Replies: 3
Views: 241

Re: Tax Efficienct Portfolio

Why do you believe I should switch from target retirement fund to a total bond market fund (VBTLX) in my roth account? Also shouldn't I use (VBTLX) instead of VWITX in my taxable account? My individual tax rate is 15%. You didn't tell us what your tax bracket is so I went with the intermediate term...
by DSInvestor
Fri Dec 19, 2014 6:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Efficienct Portfolio
Replies: 7
Views: 657

Re: Scared to Invest

Does your "more diversified" portfolio include bonds? If not, please spend some time to consider an asset allocation (mix of stocks and bonds) that you'll be comfortable holding through all market conditions.

See Investment Planning:
http://www.bogleheads.org/forum/viewtopic.php?t=6211
by DSInvestor
Fri Dec 19, 2014 3:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Scared to Invest
Replies: 49
Views: 3750

Re: TIRA at Vanguard

The income limits to disallow the Traditional IRA tax deduction are be lower than the income limit for Roth IRA contribution . If your tax situation does not allow deductible Traditional IRA, double check to see if you're eligible for Roth IRA contributions. Roth IRA contributions are always non-ded...
by DSInvestor
Fri Dec 19, 2014 3:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: TIRA at Vanguard
Replies: 1
Views: 234

Re: Where do stock dividends go before distributed by a fund

I don't know what the fund actually does with the $50MM but it is included in the NAV of the fund until the dividends are distributed. The fund's NAV is reduced by the amount of the dividend upon distribution.
by DSInvestor
Fri Dec 19, 2014 2:42 pm
 
Forum: Investing - Theory, News & General
Topic: Where do stock dividends go before distributed by a fund?
Replies: 5
Views: 725

Re: Tax Efficienct Portfolio

80/20 stock/bond with intl as 20% of equity could look something like this tax efficient fund placement: Roth IRA 5.5K: 5.5K Total Bond Market Investor. Your 2015 contribution will allow you to get Admiral Shares. 401k zero: No recommendations here until we know more about investment options and exp...
by DSInvestor
Fri Dec 19, 2014 2:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Efficienct Portfolio
Replies: 7
Views: 657

Re: How much to contribute to Solo 401(k)?

Here's a link to Fidelity page for their Self Employed 401k. There is a link to a calculator on that page.
https://www.fidelity.com/retirement-ira ... k/overview

Fidelity Self Employed Contribution Calculator:
https://scs.fidelity.com/products/mobil ... bile.shtml
by DSInvestor
Fri Dec 19, 2014 12:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: How much to contribute to Solo 401(k)?
Replies: 4
Views: 310

Re: How much to contribute to Solo 401(k)?

The 17.5K Employee salary deferral for Solo 401k is shared across all 401k and 403b plans. If she has already contributed 7K to the 403b for 2014, she has room to contribute 10.5K of employee salary deferral to the Solo 401k. edit: Self employed income permitting. Add 5.5K if she is age 50+. Employe...
by DSInvestor
Fri Dec 19, 2014 12:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: How much to contribute to Solo 401(k)?
Replies: 4
Views: 310

Re: Traditional IRA to ROTH conversion

No. However your IRA custodian may impose a hold on new money if that money came from outside that firm. This may only be an issue if your TradIRA was empty before your contributions. For example, if you already had 100K in your TradIRA and contributed 5500, you should be able to convert 100K and no...
by DSInvestor
Fri Dec 19, 2014 12:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA to ROTH conversion
Replies: 1
Views: 252

Re: Question about reinvesting dividends

You can do anything you want with the dividends. Some people use the dividends to meet expenses. This is a great way to reduce the need to sell shares and realize capital gains. Some people use the dividends to rebalance. So if your AA tells you that you have too much stock, the stock dividends can ...
by DSInvestor
Fri Dec 19, 2014 11:49 am
 
Forum: Investing - Theory, News & General
Topic: Question about reinvesting dividends
Replies: 4
Views: 861

Re: Dollar Cost Averaging and a Backdoor Roth IRA

OP is DCAing into VOO (S&P 500) and BND (total bond Market). It would be much easier to DCA into the mutual fund share class and use automatic transactions. If OP has sufficient balance to qualify for Admiral shares the expense ratio will be the same as for ETF shares. Vanguard 500 Index VFINX I...
by DSInvestor
Fri Dec 19, 2014 11:46 am
 
Forum: Personal Finance (Not Investing)
Topic: Dollar Cost Averaging and a Backdoor Roth IRA
Replies: 6
Views: 725

Re: Solar USB chargers

I have a Goal Zero adventure pack that comes with a solar panel and a Guide 10 plus battery pack that holds 4 AA or 4 AAA NiMH batteries. The solar panel can charge iPods or iPhones directly or it can charge the battery pack. The battery pack can be used to charge your devices at night. The 4 AA bat...
by DSInvestor
Thu Dec 18, 2014 8:14 pm
 
Forum: Personal Consumer Issues
Topic: Solar USB chargers
Replies: 14
Views: 1263

Re: Home Mortgage payoff

Thanks everyone for your feedback. I have other deductions (childcare, charity, real estate taxes etc), so I'm doing itemized tax filing every year. Im from FL so no state taxes. Will those other itemized deductions exceed the standard deduction? Check last year's 1040 Schedule A - Itemized deducti...
by DSInvestor
Thu Dec 18, 2014 5:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Home Mortgage payoff
Replies: 22
Views: 2464

Re: Performed backdoor Roth and accountant did not file 8606

I wonder if the terms "backdoor Roth IRA" or "backdoor Roth IRA contribution" are confusing CPAs. It may be more clear to list the actual steps that were taken during the tax interview: 1. I made a Traditional IRA contribution of $5,500 on this date for <tax year>. Maybe mention ...
by DSInvestor
Thu Dec 18, 2014 4:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Performed backdoor Roth and accountant did not file 8606
Replies: 51
Views: 3635

Re: SEP IRA vs Self 401k

Keep in mind that the contribution to a SEP IRA is made by the employer , not the employee. So I suppose the tax-deferral goes to the business, not the worker. I have no idea how that works out when the worker is the owner of the business. I'm curious to know though. I used to use a SEP-IRA for my ...
by DSInvestor
Thu Dec 18, 2014 4:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: SEP IRA vs Self 401k
Replies: 11
Views: 549

Re: VWINX declining, any ideas why?

It is mutual fund distribution season and the NAVs will drop by the amount of the distributions. Here's a link to the distributions page for Wellesley Income Fund VWINX: https://personal.vanguard.com/us/funds/snapshot?FundId=0027&FundIntExt=INT#tab=4 Here's a list from Vanguard dated 12/09/14 sh...
by DSInvestor
Thu Dec 18, 2014 3:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: VWINX declining, any ideas why?
Replies: 42
Views: 3748

Re: Trad IRA --> Roth in anticipation of backdoor Roth, or w

There are several ways to address the Traditional IRA assets to make way for backdoor into Roth IRA. 1. Convert the Traditional IRA assets to Roth IRA. This is taxable, at least for the amount in excess of IRA basis. The higher your tax bracket fed and state, and the larger the amount of pre-tax ass...
by DSInvestor
Thu Dec 18, 2014 3:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Trad IRA --> Roth in anticipation of backdoor Roth, or wait
Replies: 4
Views: 376

Re: SEP IRA vs Self 401k

Solo 401k would be better if you wish to use the backdoor into Roth IRA. SEP-IRA assets are counted by form 8606 and will complicate the taxation of the Roth conversion step of the backdoor into Roth IRA. Solo 401k has some strict eligibility rules. In your self employed business, solo 401k is only ...
by DSInvestor
Thu Dec 18, 2014 3:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: SEP IRA vs Self 401k
Replies: 11
Views: 549

Re: Home Mortgage payoff

The mortgage interest deduction requires that you pay $1 in interest to the bank in order to get $0.28 back in taxes. You're better off not paying the $1 in the first place. Do you have enough in other deductions (state income tax and real estate taxes) to itemize deductions without any mortgage int...
by DSInvestor
Thu Dec 18, 2014 1:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Home Mortgage payoff
Replies: 22
Views: 2464

Re: Umbrella Liability Insurance - Need it or not?

I have purchased in umbrella policies in two states and in both states, they required the auto to have 300K/300K and home to have 300K liability. Every state probably has their own rules.
by DSInvestor
Thu Dec 18, 2014 1:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Umbrella Liability Insurance - Need it or not?
Replies: 49
Views: 4508

Re: How can I transition to 3-funds?

Option 1: FIDELITY 401k 30K 15K US Bond Index FSITX er=0.10% 13K Spartan Global ex US er=0.18% 02K Spartan Total Market FSKAX er=0.05% Roth IRA 30K 30K Vanguard Total Stock Market VTSAX er=0.05% Option 2: has slightly lower expense ratio by holding Total International in Roth IRA. FIDELITY 401k 30K...
by DSInvestor
Thu Dec 18, 2014 1:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: How can I transition to 3-funds?
Replies: 37
Views: 2458

Re: IRA question

Reasons not to use backdoor into Roth IRA: 1. If you have lots of pre-tax assets in Traditional IRA, Rollover IRA, SEP-IRA, or SIMPLE-IRA and do not have a way to rollover into 401k/403b/TSP to isolate basis. 2. If you think you may leave your job and rollover pre-tax assets to Traditional IRA or ro...
by DSInvestor
Wed Dec 17, 2014 11:46 pm
 
Forum: Investing - Theory, News & General
Topic: IRA question
Replies: 3
Views: 493

Re: Help me understand taxes with non-retirement accounts

What are they doing for health insurance? If they're buying through the healthcare exchange and want to get a subsidy, they may need to file tax returns.
by DSInvestor
Wed Dec 17, 2014 11:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help me understand taxes with non-retirement accounts
Replies: 29
Views: 2506

Re: How can I transition to 3-funds?

[ Sorry about not answering. These are offered: US Stock Fund, which I own: FSKAX with .05%ER International Fund: Either FSGDX (.18% ER) or FSIVX (.12% ER) - FSIVX does not have Emerging Markets. If I may add another question here - which of these funds is more recommended for the 3-fund portfolio?...
by DSInvestor
Wed Dec 17, 2014 11:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: How can I transition to 3-funds?
Replies: 37
Views: 2458

Re: Help me understand taxes with non-retirement accounts

Fairmark.com has some great information on the taxation of mutual funds:
http://fairmark.com/mutual/index.htm

Fairmark.com capital gains and capital losses:
http://fairmark.com/capgain/index.htm
by DSInvestor
Wed Dec 17, 2014 10:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help me understand taxes with non-retirement accounts
Replies: 29
Views: 2506

Re: Help me understand taxes with non-retirement accounts

Thanks! I am definitely understanding a lot more now. My parents don't receive dividends so I believe they are being reinvested into the fund. That doesn't change any of dividend taxation does it? What does it mean when you say that it increases the cost basis? . Can you explain point 3 in more det...
by DSInvestor
Wed Dec 17, 2014 10:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help me understand taxes with non-retirement accounts
Replies: 29
Views: 2506

Re: 2x Leveraged ETFS

Sell it tomorrow and direct the money to easier to understand investments like stock or bond index funds. If you hold this in a taxable account, you'll have a capital loss which can be used to reduce your ordinary income.
by DSInvestor
Wed Dec 17, 2014 10:40 pm
 
Forum: Investing - Theory, News & General
Topic: 2x Leveraged ETFS
Replies: 16
Views: 1083

Re: Help me understand taxes with non-retirement accounts

Thanks for all the quick replies, I REALLY appreciate it. So let me get this straight, every year, they need to pay income taxes on both funds, less with Total Stock Market and more with Total Bond? Also, if they decide to exchange some of their Total Stock for Total Bond, they'll pay taxes on that...
by DSInvestor
Wed Dec 17, 2014 10:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help me understand taxes with non-retirement accounts
Replies: 29
Views: 2506

Re: Performed backdoor Roth and accountant did not file 8606

Here's a link to Instructions for form 8606 PDF: http://www.irs.gov/pub/irs-pdf/i8606.pdf Web: http://www.irs.gov/instructions/i8606/ Pay attention to the section "Who must file" Who Must File File Form 8606 if any of the following apply. *You made nondeductible contributions to a traditio...
by DSInvestor
Wed Dec 17, 2014 9:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Performed backdoor Roth and accountant did not file 8606
Replies: 51
Views: 3635

Re: How can I transition to 3-funds?

I have 401k at fidelity and roth at vanguard. Using this link http://www.bogleheads.org/wiki/Three-fund_portfolio I found information about the 3 fund portfolio. I own FSTVX and the other two funds according to the page would be FSGDX and FBIDX I own VTSAX, the other two funds according to the page...
by DSInvestor
Wed Dec 17, 2014 9:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: How can I transition to 3-funds?
Replies: 37
Views: 2458

Re: Turbotax Roth Conversion: Contrib CF Basis? [Carry-Forw

Roth IRA has two types of basis: 1) contribution basis (the amounts of Roth IRA contributions that you've made over the years) 2) Conversion basis - the amounts of Roth conversions over the years. Turbotax may be tracking these for you, to cover you in the event that you withdraw money from your Rot...
by DSInvestor
Wed Dec 17, 2014 8:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Turbotax Roth Conversion: Contrib CF Basis? [Carry-Forward]
Replies: 3
Views: 281

Re: How can I transition to 3-funds?

What investment options are available in your 401k? If you have solid low cost choices for TSM, TISM and TBM in your 401k, you may be able to keep the Roth IRA simple (TSM Admiral only) and then use your 401k to hold all three asset classes TSM, TISM and TBM. You can rebalance the entire portfolio i...
by DSInvestor
Wed Dec 17, 2014 8:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: How can I transition to 3-funds?
Replies: 37
Views: 2458

Re: Approaching retirement, withdrawal strategies?

It sounds like they have investments in taxable accounts (750K?). Perhaps they can collect the dividends for their holdings in taxable accounts rather than reinvest. How much in dividends and interest are received in outside the tax advantaged accounts?
by DSInvestor
Wed Dec 17, 2014 6:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Approaching retirement, withdrawal strategies?
Replies: 9
Views: 1035

Re: Comcast Performance 25 Mbps vs Blast 105 MBps

Odd. Those 12 month prices are significantly higher than what I was offered by comcast just a month ago as a new customer. They offered me 50mpbs service for $29/month for 12 months or 25mbps for a little less. I went with the 50mbps plan which will cost 64/month after the 12 month period expires. I...
by DSInvestor
Wed Dec 17, 2014 5:46 pm
 
Forum: Personal Consumer Issues
Topic: Comcast Performance 25 Mbps vs Blast 105 MBps
Replies: 17
Views: 1986

Re: Does it matter where you refill an RX.....

I believe there are apps that can help you determine the price of prescriptions in various stores. Here's a link to an ABC news page Apps could mean cheaper prescriptions at your fingertips: http://abcnews.go.com/blogs/health/2013/03/05/apps-could-mean-cheaper-prescription-drugs-at-your-fingertips/ ...
by DSInvestor
Wed Dec 17, 2014 5:03 pm
 
Forum: Personal Consumer Issues
Topic: Does it matter where you refill an RX.....
Replies: 4
Views: 1020

Re: Total stock market funds - is real estate accounted for?

REIT is included in many index funds. Here's a Boglehead wiki page on percentages of REIT in Vanguard Index funds:
https://www.bogleheads.org/wiki/Percent ... ndex_Funds
by DSInvestor
Wed Dec 17, 2014 4:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Total stock market funds - is real estate accounted for?
Replies: 8
Views: 711

Re: IRA to 401K rollovers - Clarifications

I haven't hit the 250K in my fido plan yet so I don't know that 5500 filing works and how much help Fido provides. I would hold off on rollover into solo 401k until your income reaches a level that disallows direct Roth IRA contribution. You can probably get to about 240K of gross income before the ...
by DSInvestor
Wed Dec 17, 2014 4:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA to 401K rollovers - Clarifications
Replies: 4
Views: 243

Re: IRA to 401K rollovers - Clarifications

Be aware that Solo 401k has a requirement to file form 5500 once plan assets exceed 250K. Something to consider if your TIRA is big. If you're self employed and use solo 401(k), you can make very large tax deductible contributions up to 52K which helps reduce your AGI and MAGI for Roth IRA purposes ...
by DSInvestor
Wed Dec 17, 2014 3:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA to 401K rollovers - Clarifications
Replies: 4
Views: 243

Re: Backdoor Roth IRA - Vanguard Dividend posted later

It is difficult to recommend funds for Roth IRA without information about what other investment accounts you have. Here's a post called Asking Portfolio Questions which will tell you what information to include and what format to post in. Once readers see what investment options and holdings you hav...
by DSInvestor
Wed Dec 17, 2014 2:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA - Vanguard Dividend posted later
Replies: 4
Views: 305

Re: Backdoor Roth IRA - Vanguard Dividend posted later

Wait for a day or two. Those stranded dividends may shift to the Roth IRA without any action. I have done several fund exchanges over the years where I exchanged all shares and the stranded stuff moves later. I've exchanged taxable to taxable, IRA to IRA and from TIRA to Roth IRA (conversion). If yo...
by DSInvestor
Wed Dec 17, 2014 2:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA - Vanguard Dividend posted later
Replies: 4
Views: 305

Re: Buying "timing" question

Technically by the numbers my allocation calls for more domestic stock. I should beat 48.3% and I am at 45.3% and dead nuts on my International and 3% high on bonds. I guess I should really just stick to the plan and do the Roth. I just keeping thinking that there is a good deal on International. S...
by DSInvestor
Wed Dec 17, 2014 1:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buying "timing" question
Replies: 13
Views: 1285

Re: Buying "timing" question

Is your AA 100% stocks? If your 401k contributions are going mostly to S&P 500, you may need to hold more bonds in the total portfolio. If this is the case, I'd suggest applying the new IRA contributions to bonds to get your stock/bond mix to target. IMO, stock/bond ratio is more important than ...
by DSInvestor
Wed Dec 17, 2014 1:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buying "timing" question
Replies: 13
Views: 1285

Re: Why a Boglehead doesn't invest in individual companies?

I sold all my stocks and bought a mix of stock and bond index funds: Vanguard Total Stock Market Index Vanguard Total International Index Vanguard Total Bond Market Index. If you're going to hold your individual stocks, make sure you have a defined plan that sets a max limit on their allocation in y...
by DSInvestor
Wed Dec 17, 2014 12:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 57
Views: 5251

Re: Rollover 401k to IRA Every Year

Since you have more control (fund selection) and lower fees in an IRA, is there any reason why you wouldn't/couldn't/shouldn't rollover your 401k to an IRA every year? In particular, I am interested in rolling over a Solo Roth 401k to a Roth IRA because the contribution limits on the Solo Roth 401k...
by DSInvestor
Wed Dec 17, 2014 12:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Rollover 401k to IRA Every Year
Replies: 6
Views: 779

Re: Fund placement across 401(k), Roth IRA, taxable

Just one last question: Is it typically advisable to adjust the 401(k) and taxable balances by 1-marginal tax rate? I do not tax adjust. It is unlikely that every dollar in the Trad 401k and taxable accounts will be taxed at your marginal rate. Current rules allow for Qualified Dividends and Long T...
by DSInvestor
Wed Dec 17, 2014 11:33 am
 
Forum: Investing - Help with Personal Investments
Topic: Fund placement across 401(k), Roth IRA, taxable
Replies: 21
Views: 1699

Re: Backdoor Roth Guidance Needed

Agree with above. Roth IRA MAGI phase outs allow full Roth IRA contribution if MAGI for Roth IRA purposes is under 181K for MFJ 2014. Traditional 401k and 403b contributions reduce AGI and MAGI for Roth IRA purposes. With 180K combined salary and 35K of Trad 401k/403b, you may be well under the 181K...
by DSInvestor
Tue Dec 16, 2014 5:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Guidance Needed
Replies: 4
Views: 490

Re: ROTH Conversion and RMD Sequence

Here's a fair mark page on RMD and Roth conversion:
http://fairmark.com/rothira/10011501-ro ... ersion.htm
by DSInvestor
Tue Dec 16, 2014 5:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: ROTH Conversion and RMD Sequence
Replies: 4
Views: 514

Re: vanguard IRA to Roth conversion question

Assuming the Vanguard Roth IRA account is already established, all you have to do to convert from TIRA to Roth IRA is exchange from the fund in your TIRA to a fund in your Roth IRA. When the vanguard website sees that you're exchanging from TIRA to Roth IRA, it will know that is a Roth conversion an...
by DSInvestor
Tue Dec 16, 2014 1:26 am
 
Forum: Investing - Help with Personal Investments
Topic: vanguard IRA to Roth conversion question
Replies: 7
Views: 619
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