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Re: Foreign Tax Credit and State Taxes

How are others handling the case where you pay a portion of 2014 state income taxes in 2015? That portion would not be included in 2014 Federal Itemized Deductions, but it typically would be related to 2014 Foreign Source Income. There's a discussion from last year starting about here on that topic...
by House Blend
Fri Feb 27, 2015 9:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax Credit and State Taxes
Replies: 7
Views: 621

Re: NYT: "As Hedge Fund Returns Falter,..."

A serious challenge. Does anyone know how to find the answer: what was the greatest loss experienced in ANY mutual fund between March 2014 and January 2015? I did a google search for "worst mutual funds 2014". The top couple of links didn't quite look on target, but this USA Today story s...
by House Blend
Fri Feb 27, 2015 9:23 am
 
Forum: Investing - Theory, News & General
Topic: NYT: "As Hedge Fund Returns Falter,..."
Replies: 21
Views: 1323

NYT: "As Hedge Fund Returns Falter,..."

Great article at the NYT on the futility of hedge funds: http://www.nytimes.com/2015/02/27/business/hedge-fund-returns-falter-yet-money-continues-to-flow-in.html?ref=business Bogleheads will love these quotes: And Mr. Lack noted that few pension fund advisers were making any counterarguments. “There...
by House Blend
Fri Feb 27, 2015 8:00 am
 
Forum: Investing - Theory, News & General
Topic: NYT: "As Hedge Fund Returns Falter,..."
Replies: 21
Views: 1323

Re: Foreign Stocks in Taxable - Gotcha w/ foreign tax credit

1. If I understand one of the topics discussed is whether it's allowable to claim only $300/600 of FTC, if you actually have more, because having to fill out Form 1116 will actually leave you with an even smaller credit. And the answer seems to be that it's not ok. Where you wrote "will actual...
by House Blend
Wed Feb 25, 2015 1:47 pm
 
Forum: Investing - Theory, News & General
Topic: Foreign Stocks in Taxable - Gotcha w/ foreign tax credit
Replies: 55
Views: 6488

Re: Questions about portfolio and TIAA-CREF, old and new

Or are my questions too fussy and long-winded? Yes, and they don't have simple answers. ;-) I agree with Alec's post; here's my way of expressing similar ideas, on the investment side of things: 1. Make sure you understand the difference between holding TIAA Traditional in a (G)SRA vs. a (G)RA. The...
by House Blend
Wed Feb 25, 2015 12:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Questions about portfolio and TIAA-CREF, old and new
Replies: 13
Views: 907

Re: Reinvesting RMD proceeds

There has been some discussion of placing the money back into some sort of Roth, but that does not make sense to me. Any thoughts? Correct, that doesn't make sense. In addition, unless he is in the 0% tax bracket, it is unlikely that holding a 60/40 portfolio in taxable is a great idea. Treat all o...
by House Blend
Wed Feb 25, 2015 10:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Reinvesting RMD proceeds
Replies: 4
Views: 438

Re: How much did you have saved up for retirement at age 30?

Dunno. Probably not very much. I was investing "up to the match" in my employer's plan, which meant saving a combined total of 15% of gross wages. Roth IRAs did not exist in those days, and I was not eligible to make deductible IRA contributions. I was completely ignorant at that point of ...
by House Blend
Tue Feb 24, 2015 11:46 am
 
Forum: Personal Finance (Not Investing)
Topic: How much did you have saved up for retirement at age 30?
Replies: 167
Views: 10439

Re: partial rollover of Governmental 457 (b)?

Congrats on retirement. 1. Unless your 457(b) has outstanding features, such as Institutional Shares of Vanguard funds, or a Stable Value fund you really like, there's not much reason to leave it there. Roll it to a traditional IRA at Vanguard. 2. You may want to convert small amounts from that trad...
by House Blend
Tue Feb 24, 2015 11:16 am
 
Forum: Personal Finance (Not Investing)
Topic: partial rollover of Governmental 457 (b)?
Replies: 5
Views: 251

Re: Tax bill killing me on 401K to Roth in 2014

Fairmark seems to suggest so -- they're usually a reliable resource. I assume this response to mean you agree with the Vanguard specialist. I guess I fall under this portion of the fairmark post you linked: "Yes: regular contributions to traditional or Roth IRAs. If you make a regular contribu...
by House Blend
Mon Feb 23, 2015 1:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax bill killing me on 401K to Roth in 2014
Replies: 27
Views: 3342

Re: Tax bill killing me on 401K to Roth in 2014

Sure sounds to me like this was treated by both parties (401k plan administrator and Vanguard) as a rollover to a Traditional IRA.

FWIW, my Vanguard IRAs are titled "Roth" and "Rollover". My Rollover is traditional.
by House Blend
Sun Feb 22, 2015 9:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax bill killing me on 401K to Roth in 2014
Replies: 27
Views: 3342

Re: W-4 Allowances

For my 2014 taxes, I'm getting about $1,000 back from fed and I owe $140 to my state. I am thinking about increasing my allowances for the rest of 2015, tho I would probably have to withhold a bit extra for the state. Any way to reliably calculate this? Does an exemption vary depending on income? I...
by House Blend
Sun Feb 22, 2015 9:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: W-4 Allowances
Replies: 8
Views: 1118

Re: Foreign Source Income/Foreign Tax Credit

Thanks, livesoft. That was my thought also but broker gave answer closer to net. Maybe I'll do a 2/3 majority vote to give them another chance. Without actually searching online for anything, let me speculate that this fund has both US Sourced and Foreign Sourced income, and it is just a coincidenc...
by House Blend
Sun Feb 22, 2015 2:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Foreign Source Income/Foreign Tax Credit
Replies: 9
Views: 602

Re: How much was your Tax Refund (or amount DUE)

$23,000 on the 1099 DIV capital gains killed me. I wish I knew enough to not have to owe so much other than increase my paycheck withholding. Capital gains on a 1099-DIV means that you are holding funds in taxable that have had capital gains distributions. It may be hard to get out of it now, but t...
by House Blend
Sun Feb 22, 2015 11:13 am
 
Forum: Personal Finance (Not Investing)
Topic: How much was your Tax Refund (or amount DUE)
Replies: 101
Views: 6420

Re: TIAA-CREF annuities.

She has tax deferred retirement assets in a CREF stock account and TREA. We are considering a CREF variable annuity with these accounts, about 10% of our total tax deferred assets. Does anybody else have experience with doing this? The written explanation on the website is not really clear. If you ...
by House Blend
Sun Feb 22, 2015 9:04 am
 
Forum: Investing - Help with Personal Investments
Topic: TIAA-CREF annuities.
Replies: 30
Views: 1558

Re: How much was your Tax Refund (or amount DUE)

$23,000 on the 1099 DIV capital gains killed me. I wish I knew enough to not have to owe so much other than increase my paycheck withholding. Capital gains on a 1099-DIV means that you are holding funds in taxable that have had capital gains distributions. It may be hard to get out of it now, but t...
by House Blend
Sun Feb 22, 2015 8:10 am
 
Forum: Personal Finance (Not Investing)
Topic: How much was your Tax Refund (or amount DUE)
Replies: 101
Views: 6420

Re: Rolling over a 403(b) to an IRA questions

I checked the actual interest and it seems to be $2.43 shy of 3% for the last quarter. (No new deposits to account for) I guess that would make it about $10 for the year on $115,000. Apologies if you already took this into account, but beware of the difference between compound and ordinary interest...
by House Blend
Fri Feb 20, 2015 3:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rolling over a 403(b) to an IRA questions
Replies: 25
Views: 984

Re: How to keep AA with monthly contributions to 401k,taxabl

You don't mention your tax bracket. If it is 25% or higher, then TSM is and will continue to be more tax efficient for you until the gap in dividend yields between TISM and TSM fades. (Or foreign governments start levying higher taxes.) That could happen next year, or never. But obsessing over tax-e...
by House Blend
Fri Feb 20, 2015 2:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to keep AA with monthly contributions to 401k,taxable?
Replies: 5
Views: 407

Re: Why do companies match 401K contributions?

In academia, there's another reason: the worst nightmare of a dean or provost is a a faculty of grumpy old (wo)men with tenure who can't afford to retire.
by House Blend
Fri Feb 20, 2015 2:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Why do companies match 401K contributions?
Replies: 50
Views: 4272

Re: Applying tax refund to next year vs 1040-ES

Paying estimated tax is a hassle I prefer to avoid. If you have an ongoing W-2 job, my strong preference would be to adjust withholding there. There's a line on the W-4 for withholding additional amounts. You should be able to adjust your withholding appropriately regardless of whether you take a re...
by House Blend
Thu Feb 19, 2015 2:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Applying tax refund to next year vs 1040-ES
Replies: 17
Views: 783

Re: TurboTax Treatment of Capital Gains & Dividends

Like Busting Myths said, you need to understand the qualified dividends and capital gains tax worksheet--that's how your tax is computed under the hood. My AGI did go up by $8130. This is less than the $8339 stated above because I had a capital loss a little above the $3000 max that now was complete...
by House Blend
Wed Feb 18, 2015 5:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: TurboTax Treatment of Capital Gains & Dividends
Replies: 10
Views: 651

Re: Please double check my tax efficiency calculations

And yes, it is funny how they report it, but after a few minutes comparing my 1099 with their web page, I understood what they were doing. Problem solved. Tell me this though: If you didn't have your 1099DIV, would you have been able to figure it out? And how about for a fund you do not own that yo...
by House Blend
Tue Feb 17, 2015 12:32 pm
 
Forum: Investing - Theory, News & General
Topic: Please double check my tax efficiency calculations
Replies: 12
Views: 1041

Re: Please double check my tax efficiency calculations

Looks like you copied my algorithm. ;-) Mine has extra steps for computing state income tax as well. Of course, not everyone pays 15% on QDI. To make it more universal, you'd need to take the various rates on non-Q and QDI into account (including the 3.8% Medicare surtax). I do not care about the va...
by House Blend
Tue Feb 17, 2015 12:18 pm
 
Forum: Investing - Theory, News & General
Topic: Please double check my tax efficiency calculations
Replies: 12
Views: 1041

Re: TIAA-CREF dramatically increasing Expense Ratios

[Some actions require Employer signatures, too, and it's never been clear to us why they should have a say in whether we can make someone an Authorized Agent - or whatever the right term at Vanguard is for their not-quite-a-Power-of-Attorney - or not. Why Employer should need to 'sign off' on that,...
by House Blend
Mon Feb 16, 2015 10:08 am
 
Forum: Investing - Theory, News & General
Topic: TIAA-CREF dramatically increasing Expense Ratios
Replies: 72
Views: 4812

Re: TIAA-CREF dramatically increasing Expense Ratios

^If by "now", you mean February 2000, yes.

As I said, this was all quoted from a performance report for the year 1999.
by House Blend
Sun Feb 15, 2015 4:19 pm
 
Forum: Investing - Theory, News & General
Topic: TIAA-CREF dramatically increasing Expense Ratios
Replies: 72
Views: 4812

Re: TIAA-CREF dramatically increasing Expense Ratios

Back on the original topic, I was cleaning out the basement today and ran across an old performance report from T-C. Here are some selected expense ratios from 1999: CREF Stock 0.31% CREF Equity Index 0.29% TIAA Real Estate 0.625% CREF Bond Market 0.30% The crediting rate for new money in Traditiona...
by House Blend
Sun Feb 15, 2015 3:40 pm
 
Forum: Investing - Theory, News & General
Topic: TIAA-CREF dramatically increasing Expense Ratios
Replies: 72
Views: 4812

Re: TIAA-CREF dramatically increasing Expense Ratios

RM, I mostly agree with your post, and had a similar experience when I rolled over "everything but Traditional" from an old 403(b), and then later set up a TPA to roll the Traditional part out over 9 years as well. But if you do want to transfer money to Vanguard, work through Vanguard and...
by House Blend
Sun Feb 15, 2015 11:31 am
 
Forum: Investing - Theory, News & General
Topic: TIAA-CREF dramatically increasing Expense Ratios
Replies: 72
Views: 4812

Re: Roth or regular 401k -- not based on tax rate expectatio

We are currently well into the 39.6% marginal bracket. I expect, everything else equal, that we would find it difficult to stay out of the 28% bracket, and quite possibly the 33% bracket (with RMDs and taxable earnings). Well, then I really don't understand why you aren't maximizing your tax-deferr...
by House Blend
Sat Feb 14, 2015 3:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth or regular 401k -- not based on tax rate expectations
Replies: 9
Views: 714

Re: Roth or regular 401k -- not based on tax rate expectatio

Ah, so you will have pension income filling at least some of the lower brackets. Perhaps it is helpful to think of it as a how-much-should-I-Roth-convert question: which tax bracket would you keep filled with Roth conversion dollars? Adjust the dial between traditional and Roth 401(k) contributions ...
by House Blend
Sat Feb 14, 2015 3:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth or regular 401k -- not based on tax rate expectations
Replies: 9
Views: 714

Re: TIAA-CREF dramatically increasing Expense Ratios

It is kind of stunning to me that forum members are less disturbed by this new policy change from TIAA-CREF than they were about the far less consequential TurboTax Deluxe/Premium policy change. Not everyone is adversely affected. Account holders at large institutions are seeing their ERs go down. ...
by House Blend
Sat Feb 14, 2015 1:57 pm
 
Forum: Investing - Theory, News & General
Topic: TIAA-CREF dramatically increasing Expense Ratios
Replies: 72
Views: 4812

Re: Roth or regular 401k -- not based on tax rate expectatio

We will not need the Roth assets in the foreseeable future, and probably not in our lifetimes. Then what is the purpose of this money? If it will be spent by your (grand)children, then the question is what tax rate would they pay if it was passed on as pre-tax money? If it will go to charity, then ...
by House Blend
Sat Feb 14, 2015 1:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth or regular 401k -- not based on tax rate expectations
Replies: 9
Views: 714

Re: where should i pay taxes from?

sandramjet, Let's say you have $40K of headroom within which to do Roth conversions inside the 25% bracket. You can: A. Convert $40K to Roth, and pull $10K from the Roth to pay the resulting tax bill. This may seem like filling a pail with a gaping hole in it. The net result is you have $30K more in...
by House Blend
Thu Feb 12, 2015 4:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: where should i pay taxes from?
Replies: 24
Views: 1645

Re: where should i pay taxes from?

...but your marginal rate for additional ordinary income is still 25% No, it's now 28%. No, it's 25%. The tax year is 2014. You are Single, 1 exemption, standard deduction. Your adjusted gross income is $110K, and includes $20K of LTCG. 110,000 AGI -3,950 personal exemption -6,200 standard deductio...
by House Blend
Thu Feb 12, 2015 11:05 am
 
Forum: Personal Finance (Not Investing)
Topic: where should i pay taxes from?
Replies: 24
Views: 1645

Re: where should i pay taxes from?

Am I still missing something? Yes. You are treating the capital gain as if it is the income taxed in the marginal bracket and the ordinary income is taxed in the lower bracket. That's not the case. To the extent taxable income creeps into the 28% bracket ordinary income will be taxed at 28%. Gill N...
by House Blend
Thu Feb 12, 2015 10:31 am
 
Forum: Personal Finance (Not Investing)
Topic: where should i pay taxes from?
Replies: 24
Views: 1645

Re: Boglehead indulgences?

Preferred dessert, chez Blend: a single square of 70%+ chocolate.
Even better when the chocolate can be paired with a large strawberry or two, but only when the latter are in season.

500g of 70%+ chocolate can be had from Trader Joe's for $5.
(Prices have gone up; I think until recently it was $4.)
by House Blend
Thu Feb 12, 2015 9:46 am
 
Forum: Personal Consumer Issues
Topic: Boglehead indulgences?
Replies: 12
Views: 1501

Re: Quick TLH question

On the other hand, let's suppose the shares were sold on Feb. 4. If some of the shares sold were purchased between (approx) Dec. 4[*] and Dec. 18, then the dividend that those particular shares paid on Dec. 19 must be treated as 100% not qualified, rather than the 71.53% qualified that most sharehol...
by House Blend
Wed Feb 11, 2015 5:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Quick TLH question
Replies: 7
Views: 405

Re: How do you figure out your W4 withholding?

^Yes, a safe harbor approach is certainly simple, if you don't mind overpaying in some years. With the Feds it is less of an issue to overpay (do a credit forward), but an itemizer who overpays the State will push next year's Federal AGI higher than necessary, which in turn can trigger credit/deduct...
by House Blend
Wed Feb 11, 2015 1:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do you figure out your W4 withholding?
Replies: 19
Views: 1809

Re: How do you figure out your W4 withholding?

Assuming W2 worker..... I think that's the issue right there. I agree that if most of your income is a result of W-2 wages, and nothing unusual happens over the course of the year, then almost any system you come up with is going to work and not take up more than the 10 minutes required to adjust y...
by House Blend
Wed Feb 11, 2015 12:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do you figure out your W4 withholding?
Replies: 19
Views: 1809

Re: Using online tax software

From yesterday's WSJ: FBI to Probe Fraudulent Tax Filings: The Federal Bureau of Investigation has opened a probe to determine whether a computer data breach led to the filing of false tax returns through TurboTax software, according to a person familiar with the case. FBI investigators are still wo...
by House Blend
Wed Feb 11, 2015 9:22 am
 
Forum: Personal Consumer Issues
Topic: Using online tax software
Replies: 14
Views: 1003

Re: How do you figure out your W4 withholding?

I keep a running estimate of my annual tax bill, and update it periodically as new information arrives. (All done in software, so I just insert the new numbers, and rerun the code.) The safe harbor approach also works, but I prefer to target a tax bill in the low hundreds. Typical year to year varia...
by House Blend
Tue Feb 10, 2015 10:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do you figure out your W4 withholding?
Replies: 19
Views: 1809

Re: How tax rate is determined in retirement?

If you end up with large tax sheltered balances in retirement, it may be better to withdraw a steady sustainable amount each month and save the excess income in a taxable account. Due to progressive taxation, this works out better than withdrawing an extra $30,000 every seven years to buy a new veh...
by House Blend
Tue Feb 10, 2015 2:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: How tax rate is determined in retirement?
Replies: 31
Views: 2654

Re: How tax rate is determined in retirement?

I'm not sure you can withdraw from a 401k whenever you want. I'm sure some plans are set up that way, but I'm not sure all plans are set up that way. But it is of little consequence - there are many ways to work around that if you can't. You should ask your 401K folks about this. As mentioned, the ...
by House Blend
Tue Feb 10, 2015 11:01 am
 
Forum: Investing - Help with Personal Investments
Topic: How tax rate is determined in retirement?
Replies: 31
Views: 2654

Re: How tax rate is determined in retirement?

If you end up with large tax sheltered balances in retirement, it may be better to withdraw a steady sustainable amount each month and save the excess income in a taxable account. Due to progressive taxation, this works out better than withdrawing an extra $30,000 every seven years to buy a new veh...
by House Blend
Tue Feb 10, 2015 10:59 am
 
Forum: Investing - Help with Personal Investments
Topic: How tax rate is determined in retirement?
Replies: 31
Views: 2654

Re: Old Jobs And Rollover Decisions

Since you say you are not in danger of going above the Roth contribution limits, rolling from a Voya 403(b) to a Vanguard IRA is a no-brainer. Why are you even considering a plan where the ERs are 0.79% and up? As far as rolling the T-C 403(b), keep in mind that the moveability of Traditional will d...
by House Blend
Sun Feb 08, 2015 8:17 am
 
Forum: Investing - Help with Personal Investments
Topic: Old Jobs And Rollover Decisions
Replies: 2
Views: 325

Re: How much was your Tax Refund (or amount DUE)

Looks like I owe the Feds about $250, State #1 about $350, and non-resident State #2 owes me about $150.

Still haven't figured out the withholding schedule rules for State #2.
by House Blend
Sat Feb 07, 2015 8:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: How much was your Tax Refund (or amount DUE)
Replies: 101
Views: 6420

Re: AMT Assistant for 2014 is incorrect

FYI: If you use the IRS AMT Assistant for 2014 (see link below), when it asks for the amount on Line 47 of 1040, you need to provide the amount on Line 48 of 1040 instead (foreign tax credit). The printed worksheet "to see if you should fill in Form 6251" in the 1040 instructions is corre...
by House Blend
Sat Feb 07, 2015 8:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: AMT Assistant for 2014 is incorrect
Replies: 2
Views: 479

Re: Accidentally contributed to Roth IRA

What confuses me further is that they didn't do the same thing with my Roth. I also had only ETFs in my Roth, about $200k. They recharacterized my VISVX contribution and left $0 in my Roth. I will speculate that maybe your Roth is still split, with the mutual fund and brokerage sides considered sep...
by House Blend
Fri Feb 06, 2015 3:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Accidentally contributed to Roth IRA
Replies: 39
Views: 5857

Re: Accidentally contributed to Roth IRA

Vanguard recharacterized the Roth to traditional, but I don't understand what they did. How can they leave earnings in a Roth if the original contributions were not permissible? Hello LGB, Thank you for reaching out to me. It appears that the calculations are correct. Below is an explanation of how...
by House Blend
Fri Feb 06, 2015 2:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Accidentally contributed to Roth IRA
Replies: 39
Views: 5857

Re: Tax help for new Boglehead

Puna wrote:A customer service rep from Vanguard also said I need a tax form 5498 but I haven't gotten that yet. Do I need to wait for that before I go to the tax preparer?

No. In any case, you won't be getting that form until May.
by House Blend
Fri Feb 06, 2015 9:26 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax help for new Boglehead
Replies: 4
Views: 416

Re: Creating an aggressive TIAA 403b portfolio

I'm interested in staying aggressive in my investments as I'm still relatively young and new into the process, and I'm willing to be a little more risky. I'd like to be aggressive, while staying balanced in different asset types. Given your stated requirements, this is the only fund you need: Vangu...
by House Blend
Thu Feb 05, 2015 2:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Creating an aggressive TIAA 403b portfolio
Replies: 8
Views: 491
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