Search found 289 matches

Return to advanced search

Re: Vanguard 529 plans

VG offers 3 options in their age based 529 savings plan, "conservative, moderate and aggressive". We have been using the aggressive option, and due to mostly luck, have been rewarded since most deposits have been post-2009. At this time the aggressive option, in my son's age group, is 50:...
by FB01
Sun Mar 01, 2015 9:24 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard 529 plans
Replies: 4
Views: 622

Re: Roth IRA Contribution limit - MAGI - which line on 1040

dbltrbl wrote:Line 37:))


Thanks for the quick reply. I had HSA contribution in 2014 but I will not have in 2015 so I guess line 22 and 37 will show the same amount. Am I getting correct?
by FB01
Thu Feb 26, 2015 11:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Contribution limit - MAGI - which line on 1040
Replies: 6
Views: 231

Roth IRA Contribution limit - MAGI - which line on 1040

Hi,

For filing jointly ROTH IRA contribution, MAGI should be less than 183K. Am getting confused.

Which line on form 1040, it considers for MAGI? Is it line 22 or line 37? On which line I have to see that income is less 183K

Thanks,
FB
by FB01
Thu Feb 26, 2015 11:24 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Contribution limit - MAGI - which line on 1040
Replies: 6
Views: 231

Re: RSU Understanding question

The only thing I would add is that some companies "sell" some of your shares at vesting to cover your tax (basically equivalent to withholding). So in your example, when shares worth 10,000 are vested, you may only receive shares worth 7,000 because 3,000 have been used to pay the income ...
by FB01
Fri Feb 13, 2015 12:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: RSU Understanding question
Replies: 8
Views: 510

Re: RSU Understanding question

SteveM wrote:Yes, you have it right.



Thanks for confirming.
by FB01
Fri Feb 13, 2015 9:49 am
 
Forum: Investing - Help with Personal Investments
Topic: RSU Understanding question
Replies: 8
Views: 510

Re: I think I'm missing something about the backdoor roth

I am also in similar boat. This really helps.
by FB01
Fri Feb 13, 2015 5:51 am
 
Forum: Investing - Help with Personal Investments
Topic: I think I'm missing something about the backdoor roth
Replies: 46
Views: 6189

RSU Understanding question

Hi, Correct me if my understanding is right for RSU's For e.g. My annual salary is 100k. In April 2014 I am given shares worth 40,000 ( 400 shares 100 dollars each) vesting 25% every year. So in April 2015 shares worth 10,000 are vested. Even though I don't sell the shares 10,000 dollars will show u...
by FB01
Fri Feb 13, 2015 5:18 am
 
Forum: Investing - Help with Personal Investments
Topic: RSU Understanding question
Replies: 8
Views: 510

Re: What if my MAGI exceeds limit for Roth IRA

Now that we've got that straight..... It seems for 2014 2015 for my wife Roth ira, I can open TIRA in Vanguard, transfer Roth ira amount to that account and then do the backdoor Roth ira. This I can do next year onwards also but for 5500 only (her Roth IRA) Yes, if by "transfer" you mean ...
by FB01
Thu Feb 12, 2015 8:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: What if my MAGI exceeds limit for Roth IRA

Let's see if I have this right. MAGI for 2014 (the tax return that is due April 15) is less than $181k so His and Her Roth IRA contributions are ok for the 2014 contribution and do not need to be fixed. Right? MAGI for 2015 is expected to be more than $183k, but you made His and Her 2015 Roth IRA c...
by FB01
Thu Feb 12, 2015 3:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: What if my MAGI exceeds limit for Roth IRA

retiredjg wrote:So are we talking about

His 2014 Roth IRA
Her 2014 Roth IRA
His 2015 Roth IRA
Her 2015 Roth IRA...?

Or just some of these?



Oops.. We are just talking about 2015 only as I think my MAGI will be more than 181k. My MAGI is below limit for 2014.
Extremly Sorry about the confusion.
by FB01
Thu Feb 12, 2015 2:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: What if my MAGI exceeds limit for Roth IRA

It seems for 2014 for my wife Roth ira, I can open TIRA in Vanguard, transfer Roth ira amount to that account and then do the backdoor Roth ira. This I can do next year onwards also but for 5500 only (her Roth IRA) I thought we were talking about a contribution for 2015. Are you talking about a con...
by FB01
Thu Feb 12, 2015 1:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: What if my MAGI exceeds limit for Roth IRA

- now for the next year also if mummy MAGI is more than 183k, I cannot contribute to Roth ira unless I move rollover Ira to 401k or pay prorata tax on all my iras. Correct for you. But your Rollover IRA does not affect your spouse. So your spouse could be doing back door contributions to Roth IRA e...
by FB01
Thu Feb 12, 2015 11:52 am
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: What if my MAGI exceeds limit for Roth IRA

I loved Roth IRA. It seems only option I have is to move rollover to 401k. Maybe not. When your income goes back down next year, your MAGI may drop enough so that you can contribute directly to Roth IRA again. Hi Retiredj, Here is my conclusion. Correct me if I am wrong. 1) For 2014 as I contribute...
by FB01
Thu Feb 12, 2015 10:40 am
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: What if my MAGI exceeds limit for Roth IRA

Ohhh.. What if I open a different Roth IRA and TIRA with different brokerage like Fidelity for next year? Can I do that or situation will remain same? Doesn't matter where the accounts are held. All TIRA's are considered to be one account (apart from inherited ones). Damn. I loved Roth IRA. It seem...
by FB01
Thu Feb 12, 2015 9:11 am
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: What if my MAGI exceeds limit for Roth IRA

Am happy with the Vanguard options in my rollover Ira compared to my existing 401k. It seems I will pay tax and penalty rather than recharacteizing. Next year will open TIRA account and do backdoor ROTH Ira. As long as the rollover IRA is there, you will owe tax every time you do a backdoor Roth. I...
by FB01
Thu Feb 12, 2015 9:00 am
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: What if my MAGI exceeds limit for Roth IRA

It looks like rkhusky has done a better job of explaining it than I did. :happy The bottom line is this - as long as you have that $40k Rollover IRA in the way, you can't contribute to Roth IRA this year if your RSU puts you over the MAGI limit. You can get the rollover IRA out of the way by -rolli...
by FB01
Thu Feb 12, 2015 8:47 am
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: Roth to Traditional and then backdoor to Roth

If we now want to make backdoor Roth IRA contributions, would it be best to make those backdoor contributions to our Vanguard Roth IRA accounts on April 15th so that those contributions are considered for tax-year 2013? You've recharacterized your 2013 Roth IRA contributions to 2013 Traditional IRA...
by FB01
Thu Feb 12, 2015 7:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Roth to Traditional and then backdoor to Roth
Replies: 11
Views: 1095

Re: What if my MAGI exceeds limit for Roth IRA

Can you explain what do you mean by ', if there are other IRAs in the way, you might want to recharacterize back to taxable rather than tIRA.' Thanks If you convert IRA to Roth IRA, all of your IRAs are involved - everything named IRA except for Roth IRA or an inherited IRA in someone else's name. ...
by FB01
Thu Feb 12, 2015 6:58 am
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: Rollover IRA

I have a regular brokerage account in Vanguard, and am transferring my rollover IRA from another institution in Vanguard too. My question is this: do I have to keep the same allocation in my IRA than in my brokerage account, or can I make it higher, since I do not plan to use it until I have to,whi...
by FB01
Wed Feb 11, 2015 11:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Rollover IRA
Replies: 1
Views: 183

Re: What if my MAGI exceeds limit for Roth IRA

So to re characterize do I need to open Non deductible IRA account in Vanguard and then transfer to the same Roth IRA account. In fact, if there are other IRAs in the way, you might want to recharacterize back to taxable rather than tIRA. Hi, I have a Rollover IRA as when I left my old company I mo...
by FB01
Wed Feb 11, 2015 11:07 am
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: What if my MAGI exceeds limit for Roth IRA

So to re characterize do I need to open Non deductible IRA account in Vanguard and then transfer to the same Roth IRA account. To re-characterize, just call Vanguard and tell them that is what you want to do. They will figure the amount of earnings that need to go back with the contribution. It's a...
by FB01
Wed Feb 11, 2015 10:48 am
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: What if my MAGI exceeds limit for Roth IRA

You can recharacterize the Roth IRA to a nondeductible IRA. You can then do a backdoor Roth in 2016. I tried to post this before, so I apologize if this ends up as a duplicate post. https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/ira-recharacterization-request.pdf "Reconvers...
by FB01
Wed Feb 11, 2015 7:35 am
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: What if my MAGI exceeds limit for Roth IRA

This happened to me just this year (last tax year). I had to take out 11k and Vanguard sent a tax form showing the 5500 per account removed plus any interest gained. When you file taxes your software will then take an additional 10% fee on the earnings. The one warning- I removed mine in Dec 2014 a...
by FB01
Wed Feb 11, 2015 7:26 am
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Re: What if my MAGI exceeds limit for Roth IRA

This is what is called a "good problem," having unplanned high income. :happy I was in the same situation a few years ago. Vanguard instructed me to write a letter asking that my year 20xx contributions and their associated earnings be refunded based upon my income situation. Roth princip...
by FB01
Wed Feb 11, 2015 7:17 am
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

What if my MAGI exceeds limit for Roth IRA

Hi, I generally contribute to Roth IRA on first day of the year. For this year I did the same. I just learnt that RSU which will vest this year will be included in my W2 even though if I don't sell which might result in exceeding the contribution limit 183k. Am also not sure how much bonus I will re...
by FB01
Wed Feb 11, 2015 6:20 am
 
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 1979

Has anyone used 83-B for RSUs

Hi, I just read about section 83-B for RSU http://www.investopedia.com/articles/tax/09/restricted-stock-tax.asp?performancelayout=true I was granted some shares in April for say e.g 10,000 for 4 years. 25% will be vested when I complete one year in April 2015. For 2015 2500 will be my ordinary incom...
by FB01
Tue Feb 10, 2015 11:18 am
 
Forum: Investing - Help with Personal Investments
Topic: Has anyone used 83-B for RSUs
Replies: 2
Views: 198

Re: How tax rate is determined in retirement?

Lynette wrote:Then at 70 1/2 you have to start taking RMDs from pre-tax 401K according to the IRS tables.



Hi Lynette,

So from 65 to 70, I take out 200k out of my million. Remaining balance is 800k in my 401k at 71. How is RMD decided for my 800k?
by FB01
Tue Feb 10, 2015 7:48 am
 
Forum: Investing - Help with Personal Investments
Topic: How tax rate is determined in retirement?
Replies: 31
Views: 2655

Re: How tax rate is determined in retirement?

Tax rate in retirement is determined exactly the same way as it is while one is not retired: Use Form 1040. Different kinds of income are taxed at different rates in both situations. 1. Tax-exempt bond income is generally not taxed. 2. Qualified ordinary dividends and long-term capital gains get a ...
by FB01
Tue Feb 10, 2015 7:12 am
 
Forum: Investing - Help with Personal Investments
Topic: How tax rate is determined in retirement?
Replies: 31
Views: 2655

Re: How to deal with ESPP/RSUs in portfolio, and other quest

Regardless of how it's acquired, the thing to keep in mind about employer stock is that you already have a lot of your livelihood tied up in that company simply due to the fact that you work there. So often, the prudent thing to do is sell the stock as soon as possible and reinvest in something mor...
by FB01
Tue Feb 10, 2015 6:51 am
 
Forum: Investing - Help with Personal Investments
Topic: How to deal with ESPP/RSUs in portfolio, and other questions
Replies: 6
Views: 734

How tax rate is determined in retirement?

Hi, I read in couple of post that you will be paying tax depending what it is during retirement. How is that determined? I am in 25% bracket now and might be in 33% after couple of years. Am in mid 30's so is an early question. Now at 65 if have 1 million in my 401k, 500k in Roth IRA ,400K in taxabl...
by FB01
Tue Feb 10, 2015 6:31 am
 
Forum: Investing - Help with Personal Investments
Topic: How tax rate is determined in retirement?
Replies: 31
Views: 2655

Re: Roth IRA Contribution History

TT prompts you if you want to track your basis. That's your chance to enter all your past contributions. It doesn't get reported to the IRS but TT tracks it on a carryover worksheet for future needs. I let TT track this and my non taxable Traditional IRA basis. Hi Rainer, Can you let me know where ...
by FB01
Sun Feb 08, 2015 8:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Contribution History
Replies: 13
Views: 1463

Re: Roth IRA Contribution History

Hi all, I have been contributing to Roth IRA for about 5 years and have Form 5498 for all the years. I do my taxes using Turbo tax but have never entered that I have contributed to Roth IRA. Do I need to report my Roth IRA contribution in turbo tax? If yes, can you let me what form so that I can sta...
by FB01
Sun Feb 08, 2015 1:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Contribution History
Replies: 13
Views: 1463

Tax on ESPP contribution

Hi, This is first time I contributed to ESPP From my paycheck. The period was from Aug 2014 to Feb 2015. I got my chunk of my shares recently which I have not sold. My questions is whether will I have any tax implication for 2014. I believe it will not have as I got shares in 2015 but not sure as I ...
by FB01
Thu Feb 05, 2015 7:47 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax on ESPP contribution
Replies: 1
Views: 165

Re: 529 Early Withdrawal

The withdrawn amount is pro-rated between contributions and earnings (or losses), so it is NOT like a Roth IRA> Hi Livesoft, To get my understand correct, does it work below..please correct me if I am wrong 529 Balance : 10K Contribution : 8K (80%) Earning: 2K (20%) Now, if I withdraw 8k, I will no...
by FB01
Tue Nov 04, 2014 7:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: 529 Early Withdrawal
Replies: 10
Views: 703

Re: 529 Early Withdrawal

Hello,

I thought if I withdraw amount from 529, I will be charged penalty on whole amount.

If my 529 balance is $10,000 out of which 8000 is contribution and 2000 is the earning. So can you I take out 8000 any point of time without any penalty from my 529? Does 529 work similar to Roth IRA?
by FB01
Tue Nov 04, 2014 7:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: 529 Early Withdrawal
Replies: 10
Views: 703

Re: How do you document your HSA "stuff?"

Hi, I keep a track of all the medical expenses by year in Google docs and in G drive i have create folders for each year. I put a scanned copy of the bill and scanned copy of the credit card statement which shows the amount I paid for the bill. At any point of time, I can know how much money I incur...
by FB01
Mon Aug 04, 2014 6:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do you document your HSA "stuff?"
Replies: 38
Views: 2344

Re: Investing in an HSA

BadgerBrewer wrote:Wells Fargo also has an HSA. $2000 minimum in cash, $5000 total account level waives any fees, and they have WFIOX which tracks the S&P 500 and has a 0.25 expense ratio.


Exactly. I have put my HSA in WF in the same fund WFIOX
by FB01
Fri Jul 04, 2014 5:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing in an HSA
Replies: 10
Views: 1045

Re: Dilemma for 401K Rollover

livesoft wrote:I don't think he should do any of the things you mentioned.


Hi Livesoft,

Can you please explain?

Thanks
by FB01
Fri Jun 27, 2014 9:24 am
 
Forum: Investing - Help with Personal Investments
Topic: Dilemma for 401K Rollover
Replies: 5
Views: 238

Dilemma for 401K Rollover

Hi,

One of my friend just rolled over 100K to Vanguard from his previous employer. His dilemma:

Should he invest all at once in 50% VFIAX (Vanguard 500 Index Admiral shares) and other 50% in VTIVX (Target Retirment 2045) so should invest 20K now in each and wait for sometime.

Thanks,
by FB01
Fri Jun 27, 2014 9:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Dilemma for 401K Rollover
Replies: 5
Views: 238

Re: Help with my 401K choice - Want aggressive growth

Since you want 90:10 which is certainly in the aggressive growth category, you should use only LifePath and/or Target Retirement funds with that asset allocation. Each of your accounts should only have a single fund in them. That goes for both Roths, the 401(k), and any other accounts you might not...
by FB01
Mon Jun 23, 2014 10:08 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with my 401K choice - Want aggressive growth
Replies: 8
Views: 1170

Re: Help with my 401K choice - Want aggressive growth

You need to answer the question "what asset allocation will allow me to sleep well at night" Asset allocation is the combination of equities and bonds. For example, 80% stocks and 20% bonds, or 60% stocks and 40% bonds. All you said is that you want to be agessive. Well, you need to trans...
by FB01
Mon Jun 23, 2014 9:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with my 401K choice - Want aggressive growth
Replies: 8
Views: 1170

Help with my 401K choice - Want aggressive growth

Porfolio : Want to be Aggressive Age : Mid 30's Tax Filing Status: Married filing jointly Tax Rate: 25% Federal. CA Wife does not work. Employer contributes 3% Please suggest should I modify my current contribution or keep the same? Current Contribution to my 401K : 100% : Vanguard Employee Benefit ...
by FB01
Mon Jun 23, 2014 8:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with my 401K choice - Want aggressive growth
Replies: 8
Views: 1170

Regarding excess Social Security Tax from 2 employers

Hi, I changed my job in April and they had my social security tax deducted. I read that SST is deducted till your salary reaches 117K http://www.ssa.gov/policy/docs/quickfacts/prog_highlights/RatesLimits2014.html I mentioned to my new employer that my previous employer has ran X amount of salary so ...
by FB01
Mon Jun 16, 2014 7:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Regarding excess Social Security Tax from 2 employers
Replies: 4
Views: 331

Rolling over 401K to Vanguard Traditional IRA

Hi,

I have left my previous job and have some money in my 401K accout. Is rolling over 401K amount to Vanguard Traditional IRA a good options?

Any suggestions?

Thanks
FB
by FB01
Fri Jun 13, 2014 5:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rolling over 401K to Vanguard Traditional IRA
Replies: 3
Views: 325

Planning to Redeem Saving Bonds - Which one to redeem first

Hello,

I bought I Saving Bonds in 2011, 2012 and 2013 for 10K in each year. I need to redeem some of them. How to know which one of the I Saving Bond is giving lowest return from all the I Saving bond.

Is there any way to determine?

Thanks,
JR
by FB01
Tue Feb 25, 2014 10:33 am
 
Forum: Investing - Help with Personal Investments
Topic: Planning to Redeem Saving Bonds - Which one to redeem first
Replies: 1
Views: 233

Breaking Treasury direct Certificates before 5 years

Hello, I have the TD certificates since 3 years and I think I need money so need to break that off. Can anyone tell me the process of breaking the TD and after how many days I get the money back in my bank account? Also any special thing which I need to make sure while breaking this Certificates? An...
by FB01
Tue Feb 18, 2014 1:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Breaking Treasury direct Certificates before 5 years
Replies: 3
Views: 307

Did excess Roth IRA cont..does not show on form 5498

Hello, In 2011, I transfered my 401K amount from different brokerage firm to Vanguard. I paid taxes on my 401K amount to be transferred to Roth IRA. Amount was just 500 dollars Now when I go back and see my transaction. I see that 500 and separate entry of 5000 dollars. I check my 5498 form and it j...
by FB01
Mon Jan 27, 2014 3:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Did excess Roth IRA cont..does not show on form 5498
Replies: 1
Views: 132

Re: Breaking multiple Ally CD...how to check maximise intere

Thanks SteveKL You got my question correct. I have multiple CD with multiple interest rates (not only 2.40%) which has various starting and maturity date which I forgot to mention. However, after reading your post, thought of calling them and they gave me the formula which can give basic idea as to ...
by FB01
Tue Dec 31, 2013 3:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Breaking multiple Ally CD...how to check maximise interest
Replies: 4
Views: 541

Breaking multiple Ally CD...how to check maximise interest

Hi I have multiple Ally 5 year CD which is giving 2.4% interest which I have been creating since couple of years. As i need money, I will need to break the CD's. Is there any way how to check which CD I should not break so that I do not lose more interest. Basically, I would like to make sure that I...
by FB01
Tue Dec 31, 2013 2:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Breaking multiple Ally CD...how to check maximise interest
Replies: 4
Views: 541

Re: Views on Dividend Reinvestment strategy

I don't understand the statement "I receive the dividend in the same account and use it for buying the equities but this way I am not able to track how the dividend was used." Why can't you track it? Doesn't your broker track it as well? Doesn't your account statement show how the dividen...
by FB01
Tue Nov 05, 2013 10:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Views on Dividend Reinvestment strategy
Replies: 20
Views: 1509
Next

Return to advanced search