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Re: Rollover from Vanguard IRA to Fidelity 401K - Advisable?

I would like to use advantage of backdoor ROTH conversion to reduce my taxable income.


scorp, I think there is some misunderstanding. A backdoor contribution to Roth IRA, which includes a Roth conversion as one of the steps, will not reduce your taxable income.
by retiredjg
Thu Mar 26, 2015 8:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rollover from Vanguard IRA to Fidelity 401K - Advisable?
Replies: 5
Views: 290

Re: Tax Efficient Withdrawal Strategies

It sounds like that plan will work. But if you'd rather use the Roth IRA, I'd at least get the transcripts and see. It can't hurt and might help.

Regardless, I think converting some 457 to Roth IRA each year is a good idea.
by retiredjg
Thu Mar 26, 2015 4:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Efficient Withdrawal Strategies
Replies: 16
Views: 1392

Re: COMPLETELY new early twenty something needs help1

Hello! I don't know where to start besides: I ned help! I've been reading about investing and 401Ks and stocks and IRAs and all of these different things and I have absolutely no idea where to begin. I need to make a change. A big change. My credit score needs to be drastically raised, I need to me...
by retiredjg
Thu Mar 26, 2015 4:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: COMPLETELY new early twenty something needs help1
Replies: 20
Views: 939

Re: Solo 401k and SEP IRA at the same time - have I messed u

Did you take out your contribution or is the plan to talk to a CPA first? It's hard to believe you'd find a CPA with more expertise than the pros here and on that other forum you tried, but you might. Have you considered actually talking to the IRS? Not somebody who answers phones, but make an appoi...
by retiredjg
Thu Mar 26, 2015 4:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Solo 401k and SEP IRA at the same time - have I messed up?!
Replies: 33
Views: 1414

Re: Vanguard target fund vs age in bonds

A lot of people think the Vanguard Target funds are too aggressive. As well as everybody's else's target funds. It is said they got that way because the companies were competing for the best return. Makes sense to me, but I doubt we'll ever really know the facts behind it. If you want to use a targe...
by retiredjg
Thu Mar 26, 2015 4:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard target fund vs age in bonds
Replies: 9
Views: 713

Re: New to Bogleheads - TD vs. Vanguard, General Guidance

1st: what brokerage firm do you recommend for IRA if only investing in Vanguard funds (ETFs or MFs)? I've only used TD, so that is what I am used to. I did some research and the general consensus with Vanguard's user experience is not as good as TD's. On the surface, Vanguard's website looks servic...
by retiredjg
Thu Mar 26, 2015 3:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: New to Bogleheads - TD vs. Vanguard, General Guidance
Replies: 3
Views: 385

Re: Apply For HELOC as Emergency Funds???

I looked into this once. Spent 30 minutes or so talking to a nice man on the phone. Then, after all that (credit check, instant house appraisal, etc) we got to the "fine print" and he sort of mentioned a yearly fee unless I kept an active balance on the HELOC....
by retiredjg
Thu Mar 26, 2015 3:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Apply For HELOC as Emergency Funds???
Replies: 2
Views: 219

Re: Help me understand Vanguard Small-Cap Value (VSIAX)

I think it would be how the index provider defines large/mid/small. The index for this fund would be the CRSP US Small Cap Value Index and this document explains how it is done. http://www.crsp.com/files/Equity-Indexes-Methodology-Guide_0.pdf (Good luck!) Apparently it is done by market capitalizati...
by retiredjg
Thu Mar 26, 2015 2:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help me understand Vanguard Small-Cap Value (VSIAX)
Replies: 8
Views: 747

Re: Tax Efficient Withdrawal Strategies

I think they have it electronically - I don't know how they could generate a transcript any other way. If you were to need to take the money out of Roth before 59.5, as I understand it you'd have to fill out part III of Form 8606. That includes a work sheet to determine what part might be taxable. T...
by retiredjg
Thu Mar 26, 2015 2:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Efficient Withdrawal Strategies
Replies: 16
Views: 1392

Re: New Orleans Destinations

I too love the Barataria Preserve. Well worth the visit if you enjoy outdoor activities.

Not exactly a hidden gem - the World War II museum is particularly fascinating and educational. You could easily spend an entire day there.
by retiredjg
Thu Mar 26, 2015 12:45 pm
 
Forum: Personal Consumer Issues
Topic: New Orleans Destinations
Replies: 15
Views: 732

Re: My deployed soldier is coming home!

As I understand it, he could have been sending money tax free to the TSP (military 401k like plan) while deployed. That way, the money goes in tax free and comes out tax free. It is hard to imagine he is not aware of that. I do not know if he can now take his savings and have it put in the TSP, but ...
by retiredjg
Thu Mar 26, 2015 12:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: My deployed soldier is coming home!
Replies: 16
Views: 1312

Re: Contribute to Traditional IRA?

It might be worthwhile if she expects 2015 to be a down year - i.e. in the 0%, 10% or 15% bracket. It might be worthwhile if they actually get married before the end of the year - that might drop it into the 15% bracket. But based on sharp-eyed DSInvestor's contribution, it looks like a moot point....
by retiredjg
Thu Mar 26, 2015 11:44 am
 
Forum: Personal Finance (Not Investing)
Topic: Contribute to Traditional IRA?
Replies: 7
Views: 254

Re: G Fund Changes

Moving from 2020 to 2030 would increase your risk because 2030 has more stocks. You should not change your risk for this reason, assuming you are in the right spot to begin with. If the change happens and you are worried your return will drop, you can just hold the individual funds (substituting F f...
by retiredjg
Thu Mar 26, 2015 11:40 am
 
Forum: Investing - Help with Personal Investments
Topic: G Fund Changes
Replies: 4
Views: 549

Re: Contribute to Traditional IRA?

Wow, I had no idea it's that low....
by retiredjg
Thu Mar 26, 2015 11:30 am
 
Forum: Personal Finance (Not Investing)
Topic: Contribute to Traditional IRA?
Replies: 7
Views: 254

Re: Contribute to Traditional IRA?

Why defer taxes in 2014 just to pay them in 2015? It would make more sense to me to just contribute directly to Roth IRA. If I immediately convert to Roth, this money still counts as a contribution and would be available for withdrawal at no charge.... Only if you convert the exact amount that was c...
by retiredjg
Thu Mar 26, 2015 11:16 am
 
Forum: Personal Finance (Not Investing)
Topic: Contribute to Traditional IRA?
Replies: 7
Views: 254

Re: What do you think of storage sheds as an investment?

Meth labs. Or more likely, a storage place for all the lab stuff when not in actual operation. Huge clean up costs possible.
by retiredjg
Thu Mar 26, 2015 11:07 am
 
Forum: Investing - Help with Personal Investments
Topic: What do you think of storage sheds as an investment?
Replies: 33
Views: 2710

Re: Roth TSP or Regular TSP

Personally, I plan on retiring at age 47 (20 years of service), living in the low-cost-of-living country where I served in the Peace Corps for ~3 years, all the while living off of ~$10k of savings a year and slowly converting my TSP to a Roth IRA until I take my pension when I turn 60. Clearly not...
by retiredjg
Thu Mar 26, 2015 10:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth TSP or Regular TSP
Replies: 13
Views: 812

Re: Roth TSP or Regular TSP

evilityb wrote:Second, if there is any time between when you retire and when you draw on your pension....

I agree with the point you are making, but I'm curious about this situation. I don't recall ever hearing of a Fed retiring and postponing the pension. Are there scenarios in which this happens?
by retiredjg
Thu Mar 26, 2015 9:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth TSP or Regular TSP
Replies: 13
Views: 812

Re: What would you do with 1.25 million dollars for 1 year?

Well, that is a significant loan I am giving the government by paying the taxes now. You're right. I should have paid more attention to your user name. :D I am leaning towards keeping half in an online savings account (I have an account set up as a joint trust account with 2 beneficiaries, so my FD...
by retiredjg
Thu Mar 26, 2015 9:45 am
 
Forum: Investing - Help with Personal Investments
Topic: What would you do with 1.25 million dollars for 1 year?
Replies: 39
Views: 3310

Re: Roth TSP or Regular TSP

In general, higher earners should consider traditional because they will likely fall in a lower or the same bracket in retirement. But the pension changes the dynamic a little. There is an argument that your pension makes Roth TSP a better choice. In the 25% bracket, I'm inclined to agree. When/if y...
by retiredjg
Thu Mar 26, 2015 9:36 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth TSP or Regular TSP
Replies: 13
Views: 812

Re: What would you do with 1.25 million dollars for 1 year?

I'd want it in one place and I would want quick and easy access. So I'd probably put it in limited term tax-exempt at Vanguard. In reality, I probably would not want to even bother with it because there can be delays and stressful issues with moving very large sums of money. I would probably pay the...
by retiredjg
Thu Mar 26, 2015 9:07 am
 
Forum: Investing - Help with Personal Investments
Topic: What would you do with 1.25 million dollars for 1 year?
Replies: 39
Views: 3310

Re: 401K rollover or not?

This Wiki page might be helpful.

Sorry, I can't get the link to copy and work. Go to the Wiki (link upper right) and type in 401k in the search box. On the 401k page there is a good discussion that relates to your question.
by retiredjg
Thu Mar 26, 2015 9:01 am
 
Forum: Personal Finance (Not Investing)
Topic: 401K rollover or not?
Replies: 6
Views: 368

Re: 401K rollover or not?

To my knowledge, there is no law that establishes a time period for rolling over. But your plan may have its own rules so you'll have to check. Generally, plans want to keep money rather than lose it. Your plan has good choices and the institutional share class is cheaper than you can get at Vanguar...
by retiredjg
Thu Mar 26, 2015 8:56 am
 
Forum: Personal Finance (Not Investing)
Topic: 401K rollover or not?
Replies: 6
Views: 368

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

Yeah, but the thing is retiredjg, you know almost nothing about the situation and I strongly resent you thinking that you do. I'm sorry you found my comments unhelpful. I'd be happy to delete them if you like. In my defense, your first post said "Any help is appreciated..." and your secon...
by retiredjg
Wed Mar 25, 2015 5:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 28
Views: 2292

Re: Can bonds & stocks BOTH be negative?

Vanguard Target 2015, for example, is about 50-50, and Target 2010 is about 60 bonds/40 stocks. Since preservation of capital is important for these current and soon retirees, I would infer that at least one segment (bonds vs stocks) will be positive, and that by putting the majority in bonds, you'...
by retiredjg
Wed Mar 25, 2015 5:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Can bonds & stocks BOTH be negative?
Replies: 14
Views: 997

Re: Newbie.. 401k & investment advice please

retiredjg-I haven't yet filed our taxes, although I have entered everything in turbotax and ready to be filed.(just to check) I followed the steps on turbo tax(thanks for that link, Kevin), by filling in amounts of $5500 for Traditional IRA accounts for 2014 for both of us. So if I open the tIRA ac...
by retiredjg
Wed Mar 25, 2015 3:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Newbie.. 401k & investment advice please
Replies: 27
Views: 1886

Re: Tax Efficient Withdrawal Strategies

brobinson, I've been mulling it over and still don't know if converting 457b to Roth 457b would solve your problem. I think Roth 457b is a pretty recent thing. I do know that it is possible to do an in-plan rollover conversion in a governmental 457b. I don't know about non-governmental. I think you'...
by retiredjg
Wed Mar 25, 2015 12:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax Efficient Withdrawal Strategies
Replies: 16
Views: 1392

Re: Solo 401k and SEP IRA at the same time - have I messed u

These aren't excess sep contributions by definition as they do not exceed my yearly limit. In IRS-speak, the word "excess" can also mean something you were not allowed to do. For example, if you contributed to Roth IRA and later learned your income was too high to allow the contribution, ...
by retiredjg
Wed Mar 25, 2015 11:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Solo 401k and SEP IRA at the same time - have I messed up?!
Replies: 33
Views: 1414

Re: Solo 401k and SEP IRA at the same time - have I messed u

The wording of 5305-SEP is very unclear to me and to many others. There are many references to the idea that this is used for setting up the SEP and so the rules only apply to setting it up in the first place. EG adopt mean to take on. I adopted the 5305-SEP in 2013. I didn't currently maintain the...
by retiredjg
Wed Mar 25, 2015 11:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Solo 401k and SEP IRA at the same time - have I messed up?!
Replies: 33
Views: 1414

Re: Solo 401k and SEP IRA at the same time - have I messed u

I think the way to fix this (what is called an "excess contribution") is to withdraw your SEP contribution for the year 2014. I believe you can simply withdraw this before your filing date (including extensions). Since you have already filed, I would guess your filing date is the upcoming...
by retiredjg
Wed Mar 25, 2015 10:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Solo 401k and SEP IRA at the same time - have I messed up?!
Replies: 33
Views: 1414

Re: Newbie.. 401k & investment advice please

As per most of the other responses, I see that your suggestion is - VFIAX,VSMAX and Lincoln Fixed Annuity? What percentages should I select for each of these? as per the taxable account- I see there are lot of suggestions about funds, I bonds and long term tax exempt bonds etc Is a target retiremen...
by retiredjg
Wed Mar 25, 2015 10:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Newbie.. 401k & investment advice please
Replies: 27
Views: 1886

Re: Newbie.. 401k & investment advice please

retiredjg- I am still thinking about Roth IRA, ours is a simple situation without any previous IRA accounts. Maybe it wont be as complex as other cases that you mentioned? Or maybe I should look for a tax professional who could handle it? I think actually doing it (contribute to tIRA, do not deduct...
by retiredjg
Wed Mar 25, 2015 10:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Newbie.. 401k & investment advice please
Replies: 27
Views: 1886

Re: Solo 401k and SEP IRA at the same time - have I messed u

i'm not convinced I can't use both at the same time but would rather avoid any potential issues if possible. What do you all think of my solution? I am pretty convinced that you cannot use a Model SEP (aka Form 5305 SEP) and a 401k at the same time. From Form 5303: http://www.irs.gov/pub/irs-pdf/f5...
by retiredjg
Wed Mar 25, 2015 9:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Solo 401k and SEP IRA at the same time - have I messed up?!
Replies: 33
Views: 1414

Re: Need information about converting 401k into Roth-IRA

The custodian of the 401k will send him a 1099-R the following tax season. This documents the rollover of the money from 401k to Roth IRA. The information from the 1099-R gets included on Form 1040. Taxes are due at that point unless he pays taxes on a quarterly basis.
by retiredjg
Wed Mar 25, 2015 6:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Need information about converting 401k into Roth-IRA
Replies: 4
Views: 482

Re: roth conversion recharacterization

I know that at least in my case, they did never did read my statement because they eventually billed for a conversion that had been recharacterized. I just responded to them to read what had already been provided with the original return. The response was that I could ignore their letter. That's fu...
by retiredjg
Tue Mar 24, 2015 5:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: roth conversion recharacterization
Replies: 8
Views: 641

Re: 403b Question

I don't have access to the studies, but if the expenses exceed 1.5% the calculations usually turn in favor of forgoing the retirement plan and investing in a taxable account (at least for a long holding period) That figure "1.5%" has been mentioned as the breaking point for over a decade....
by retiredjg
Tue Mar 24, 2015 5:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: 403b Question
Replies: 26
Views: 1786

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

]It is fair to assume that the ratio is 95% taxable and 5% tax advantaged? For all intents and purposes, yes. RMDs are bringing it down but maxing out his 401K may raise it. Either way, it's a small part of the portfolio. I was originally going to use this information to suggest a portfolio at 80/2...
by retiredjg
Tue Mar 24, 2015 5:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 28
Views: 2292

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

I really don't know what you mean by a bad feeling or the way you bolded my name. Being a little vague and anonymous seems like a prudent approach when you are disusing personal finances on a public forum,wouldn't say so, Mr. Djg? lol Don't find offense where none exists. :happy I think bolded your...
by retiredjg
Tue Mar 24, 2015 4:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 28
Views: 2292

Re: Funds to minimize Ameriprise SIMPLE IRA pain.

I believe you can go directly to the Ameriprise site and find a list of no-transaction-fee ETFs/mutual funds. Sometimes, it is called the NTF list. Start there. Anything on that list should be (in my opinion) available in a SIMPLE IRA. The list should be much shorter than 7000 funds. I doubt the adv...
by retiredjg
Tue Mar 24, 2015 4:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Funds to minimize Ameriprise SIMPLE IRA pain.
Replies: 4
Views: 366

Re: Traveling WiFi

Check out this internet book for $9.95. Right side of the page. http://www.technomadia.com/blog/ It is recent and might help.

Boosters are available. I don't know if that will work for your system. Check out wifiranger .
by retiredjg
Tue Mar 24, 2015 4:25 pm
 
Forum: Personal Consumer Issues
Topic: Traveling WiFi
Replies: 17
Views: 1969

Re: roth conversion recharacterization

I'm pretty convinced that a text statement is probably not read unless a return raises a flag - in which case I would expect that a person has to look at it. I would hope that the first thing a person would look for would be a statement (electronic or hard copy). But none of us really knows I guess....
by retiredjg
Tue Mar 24, 2015 4:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: roth conversion recharacterization
Replies: 8
Views: 641

Re: Newbie.. 401k & investment advice please

asr9, my suggestion would be much like the others. taxable Vanguard Total International Index tax-exempt bonds as needed (although I would not use a lot of a long term fund that is concentrated just in one state) CDs as needed 401k Vanguard 500 Index Fund Admiral Shares (VFIAX) ER 0.05% Vanguard Sma...
by retiredjg
Tue Mar 24, 2015 8:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Newbie.. 401k & investment advice please
Replies: 27
Views: 1886

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

If your friend is in his late 70's, he is not eligible to contribute to tIRA any more. That ends at 70.5 if I remember correctly. I think he can contribute to the 401k if still working. And to Roth IRA if still working, but he'd have to use the back door which might not even be appropriate in his s...
by retiredjg
Tue Mar 24, 2015 7:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 28
Views: 2292

Re: Newbie.. 401k & investment advice please

If you are married filing jointly with a non-working spouse, you can contribute $18,000 to your 401(k) (tax-deductible), $5500 to your spouse's IRA (tax-deductible), and $5500 to your own backdoor Roth IRA (not deductible). You can both make IRA contributions for 2014 through April 15, 2015, and ma...
by retiredjg
Tue Mar 24, 2015 6:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Newbie.. 401k & investment advice please
Replies: 27
Views: 1886

Re: Mutual fund capital gains distributions and other advice

I'll be interested in hearing what people say in the new thread. I hope I have not led you on a wild goose chase with this. I too am finding what seems to be contradictory information as I research this, but my feeling still is you may have made a mistake and it's much better to fix it now than later.
by retiredjg
Tue Mar 24, 2015 6:39 am
 
Forum: Investing - Help with Personal Investments
Topic: Mutual fund capital gains distributions and other advice
Replies: 12
Views: 1214

Re: Small Business: 401K versus IRA

Protection of assets differs from state to state. In some cases, there is a significant difference in protection. Google your state.
by retiredjg
Mon Mar 23, 2015 7:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Small Business: 401K versus IRA
Replies: 14
Views: 617

Re: Suggest a good passive allocation 4 hi-tax-bracket inves

I'm stumbling on this too. Here's a person near 80 who is still working and making lots of money who has it all squirreled away in cash. But our poster is talking about an 80/20 allocation and rebalancing and tax-loss harvesting and taking losses off of taxes and all manner of other tax things that ...
by retiredjg
Mon Mar 23, 2015 6:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggest a good passive allocation 4 hi-tax-bracket investor
Replies: 28
Views: 2292

Re: Funds to minimize Ameriprise SIMPLE IRA pain.

Ask the advisor what they have to offer (mutual fund or ETF) in the way of a total stock index, a total international index, and a total bond index. Post them here for people to look at and get a suggestion. There likely is a good total stock (or 500 Index) choice and a decent bond choice. Internati...
by retiredjg
Mon Mar 23, 2015 5:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Funds to minimize Ameriprise SIMPLE IRA pain.
Replies: 4
Views: 366

Re: roth conversion recharacterization

Thanks Alan. I'll see if I can find a way to do this in TT. I don't need it, just curious.
by retiredjg
Mon Mar 23, 2015 5:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: roth conversion recharacterization
Replies: 8
Views: 641
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