Search found 306 matches

by FB01
Mon Jun 29, 2015 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Confusion about Roth IRA income contribution limit
Replies: 18
Views: 962

Re: Confusion about Roth IRA income contribution limit

-FB[/quote] The entire first page of the 1040 tax form is to get to your AGI. We do not know what your tax situation is. 1. Pls try to calculate your AGI and then make adjustments to get your MAGI for Roth IRA purposes. 2. Your number of 191K for MAGI for Roth IRA purposes is wrong. Here's a link to...
by FB01
Mon Jun 29, 2015 10:19 am
Forum: Investing - Help with Personal Investments
Topic: Confusion about Roth IRA income contribution limit
Replies: 18
Views: 962

Re: Confusion about Roth IRA income contribution limit

For Roth IRA contribution income limit, I believe I need to see tax line item 37 in 1040 form which should not go beyond 193K for Married-Filling Jointly. Did you notice that DSInvestor mentioned the term Modified AGI? Line 37 is your AGI but what you need to calculate is the Modified AGI as define...
by FB01
Mon Jun 29, 2015 12:54 am
Forum: Investing - Help with Personal Investments
Topic: Confusion about Roth IRA income contribution limit
Replies: 18
Views: 962

Re: Confusion about Roth IRA income contribution limit

FB, You may be able to do backdoor Roth contributions instead. See: https://www.bogleheads.org/wiki/Backdoor_Roth_IRA However, if you already have deductible contributions in any traditional IRA, you may have second thoughts. If you have questions, just ask. There are also many threads here that ta...
by FB01
Mon Jun 29, 2015 12:17 am
Forum: Investing - Help with Personal Investments
Topic: Housing Market in Southern California
Replies: 32
Views: 3262

Re: Housing Market in Southern California

hi,

My experience is totally opposite..I live in Bay area and whenever I go to see houses with good school district San Jose, Pleasanton etc...I see too many people coming to see 800-900K houses and the thing is they get sold within a week.

Crazy market...

-FB
by FB01
Mon Jun 29, 2015 12:11 am
Forum: Investing - Help with Personal Investments
Topic: Confusion about Roth IRA income contribution limit
Replies: 18
Views: 962

Confusion about Roth IRA income contribution limit

Hello, For Roth IRA contribution income limit, I believe I need to see tax line item 37 in 1040 form which should not go beyond 193K for Married-Filling Jointly. I always do Standard deduction. This year I changed jobs and have got RSU's and might be getting some bonus (getting both for the first ti...
by FB01
Thu Jun 25, 2015 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Recharacterzing Roth IRA
Replies: 5
Views: 435

Re: Recharacterzing Roth IRA

You can open a Traditional IRA online. Call or email and ask Vanguard to recharacterize the Roth to Traditional. After they complete that and the money is in the Traditional, there will be a button to convert. It's pretty easy and you're right, you will have to pay taxes on the gains. Hello Mickens...
by FB01
Wed Jun 24, 2015 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: Recharacterzing Roth IRA
Replies: 5
Views: 435

Recharacterzing Roth IRA

Hi, I contributed for my Roth IRA for this year for me and my wife and now I think my MAGI is going to increase so I will be recharacterzing my Roth. This is what I am going to do 1) Call Vanguard to open TIRA account for me and my wife. 2) Move the funds from Roth IRA account to those TIRA accounts...
by FB01
Fri May 22, 2015 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: 529 before conceiving a child?
Replies: 12
Views: 850

Re: 529 before conceiving a child?

hello,

If you definatly know you are going to have a baby, open it now. You can put yourself as beneficiary and can put your kids name whenever you want. I opened the account when my kid was born but if I had known the option, would have opened before. It is just about compound interest.

-FB
by FB01
Thu May 14, 2015 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Short term strategy
Replies: 2
Views: 304

Short term strategy

Hi, I generally go for long term investment in individual stock. However, I had a discussion with a friend he said that if he see 100 dollars up in the particular stock, he will immediately sell it and he does this frequently. Just wanted to check if any short term investor follow this type of strat...
by FB01
Wed Apr 22, 2015 1:00 am
Forum: Personal Finance (Not Investing)
Topic: MAGI exceed limit - Confirming Roth IRA transfer process
Replies: 12
Views: 1083

Re: MAGI exceed limit - Confirming Roth IRA transfer process

3) Transfer Roth IRA amount for 2015 (Contribution + Earnings) ..saying 6000 from my Roth iRA and 6200 from my wife's Roth IRA to the TIRA account in step 1 and 2 Use the word "recharacterize" instead of transfer. This is a "do over". It's as if you contributed to the TIRA all a...
by FB01
Tue Apr 21, 2015 10:41 am
Forum: Personal Finance (Not Investing)
Topic: MAGI exceed limit - Confirming Roth IRA transfer process
Replies: 12
Views: 1083

Re: MAGI exceed limit - Confirming Roth IRA transfer process

The Rollover 401K IRA is only in my name. Someone from this forum advised and I need NOT do anything for my wife's Roth IRA. The reason you are recharacterizing in the first place is because your joint income is too high to make direct contributions to a Roth IRA. That means her joint income is too...
by FB01
Mon Apr 20, 2015 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI exceed limit - Confirming Roth IRA transfer process
Replies: 12
Views: 1083

Re: MAGI exceed limit - Confirming Roth IRA transfer process

I have contributed 5500 to Roth IRA for me and my wife (my wife does not work) for 2015 with Vanguard. Does this mean you contributed $5.5K to a Roth IRA for yourself and $5.5K to a Roth IRA for your wife? Because if you also contributed for your wife then she will have to recharacterize her Roth I...
by FB01
Mon Apr 20, 2015 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI exceed limit - Confirming Roth IRA transfer process
Replies: 12
Views: 1083

Re: MAGI exceed limit - Confirming Roth IRA transfer process

You seem to be confusing 401k accounts with IRA accounts. They are separate and different. You current have a rollover IRA. It came from a 401k, but it is a rollover IRA. To facilitate the back door Roth, you are correct to roll it into your 401k plan after you have checked to be sure your 401k pla...
by FB01
Mon Apr 20, 2015 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI exceed limit - Confirming Roth IRA transfer process
Replies: 12
Views: 1083

MAGI exceed limit - Confirming Roth IRA transfer process

Hi, I am in the process of doing what was suggested but want to make sure I am doing it correctly. Issue : I have contributed 5500 to Roth IRA for me and my wife (my wife does not work) for 2015 with Vanguard. However, now I think that my MAGI is going to increase more then 183K for this year which ...
by FB01
Fri Apr 17, 2015 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: Confusion regarding Expense ratio
Replies: 3
Views: 519

Confusion regarding Expense ratio

hi, I rolled over my 401k in Vanguard to VTSAX which has Gross Expense ratio of 0.05. My employer 401K plan has same Vanguard fund but with gross expense ration of 0.0157%. It says Gross Expense Ratio per $1,000 is $.016. Assuming I have 50K in my Vanguard 401k, how much will I be saving in a year i...
by FB01
Fri Apr 17, 2015 11:27 am
Forum: Investing - Help with Personal Investments
Topic: VTSMX - How to measure how much it is down during trade day
Replies: 5
Views: 595

Re: VTSMX - How to measure how much it is down during trade

With mutual funds you really think in share prices. VTSMX Total Stock Market tracks the total market. If the market is down 2.5%, the fund will likely be down 2.5%. You can also look at VTI ETF which is the ETF share class of Vanguard Total Stock Market Index VTSMX/VTSAX. So if I see VTF, it is dow...
by FB01
Fri Apr 17, 2015 10:31 am
Forum: Investing - Help with Personal Investments
Topic: VTSMX - How to measure how much it is down during trade day
Replies: 5
Views: 595

VTSMX - How to measure how much it is down during trade day

Hi, If I buy VTSMX, I will come to the price at what I got only after the market closes. Yesterday VTSMX was 53.20 and currently market is down approx. 250 points. Now, is there any other way, I can know that VTSMX might have reduced to 52.50(just a guess) today because of the market going down. Jus...
by FB01
Sun Mar 01, 2015 9:24 pm
Forum: Investing - Theory, News & General
Topic: Vanguard 529 plans
Replies: 4
Views: 763

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
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: 323

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 11:24 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Contribution limit - MAGI - which line on 1040
Replies: 6
Views: 323

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
Fri Feb 13, 2015 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: RSU Understanding question
Replies: 8
Views: 630

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 9:49 am
Forum: Investing - Help with Personal Investments
Topic: RSU Understanding question
Replies: 8
Views: 630

Re: RSU Understanding question

SteveM wrote:Yes, you have it right.



Thanks for confirming.
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: 6578

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 5:18 am
Forum: Investing - Help with Personal Investments
Topic: RSU Understanding question
Replies: 8
Views: 630

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
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: 2497

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 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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 11:52 am
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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 10:40 am
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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 9:11 am
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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 9:00 am
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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 8:47 am
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Roth to Traditional and then backdoor to Roth
Replies: 11
Views: 1167

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 6:58 am
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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
Wed Feb 11, 2015 11:27 am
Forum: Investing - Help with Personal Investments
Topic: Rollover IRA
Replies: 1
Views: 223

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 11:07 am
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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 10:48 am
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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 7:35 am
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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 7:26 am
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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 7:17 am
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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 6:20 am
Forum: Investing - Help with Personal Investments
Topic: What if my MAGI exceeds limit for Roth IRA
Replies: 39
Views: 2497

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
Tue Feb 10, 2015 11:18 am
Forum: Investing - Help with Personal Investments
Topic: Has anyone used 83-B for RSUs
Replies: 2
Views: 257

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 7:48 am
Forum: Investing - Help with Personal Investments
Topic: How tax rate is determined in retirement?
Replies: 31
Views: 2822

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 7:12 am
Forum: Investing - Help with Personal Investments
Topic: How tax rate is determined in retirement?
Replies: 31
Views: 2822

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 6:51 am
Forum: Investing - Help with Personal Investments
Topic: How to deal with ESPP/RSUs in portfolio, and other questions
Replies: 6
Views: 853

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 6:31 am
Forum: Investing - Help with Personal Investments
Topic: How tax rate is determined in retirement?
Replies: 31
Views: 2822

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
Sun Feb 08, 2015 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Contribution History
Replies: 13
Views: 1584

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 1:43 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Contribution History
Replies: 13
Views: 1584

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
Thu Feb 05, 2015 7:47 am
Forum: Investing - Help with Personal Investments
Topic: Tax on ESPP contribution
Replies: 1
Views: 205

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 ...

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