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Re: Misleading information on tax loss harvesting wiki artic

But if you sell your winners before you die and use up your carryover losses, you don't feel so bad after you die, even if it does nothing for your heirs.
by sscritic
Wed Jul 30, 2014 2:57 pm
 
Forum: Investing - Theory, News & General
Topic: Misleading information on tax loss harvesting wiki article
Replies: 8
Views: 341

Re: Does severance pay reduce or relace unemployment benefit

Severance pay is one area where states have broad options. As noted, in Minnesota (as in Colorado) severance pay delays the receipt of benefits. This is not true for all states. Note: In the states that delay the receipt of unemployment benefits, the law does not affect the total value of potential...
by sscritic
Wed Jul 30, 2014 1:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Does severance pay reduce or relace unemployment benefits?
Replies: 52
Views: 2892

Re: state income tax withheld from IRA distribution?

I do not believe it is that expensive when the mechanism is already in place. All Vanguard would need is an account number to transfer into for each state, and the taxpayer ID number to credit the proper account. Vanguard already has our taxpayer ID numbers. Accordingly, it would be just a simple c...
by sscritic
Wed Jul 30, 2014 1:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: state income tax withheld from IRA distribution?
Replies: 26
Views: 1009

Re: CSRS and SS, check my logic

At 70, taking SS at 70: SS: $45K If I start taking SS at 66 it would be $31K. With FRA of 66, age 70 is 1.32 times age 66. If you are looking at a statement, age "70" assumes you keep working at your "current" income level (which was probably 2012 on the statement). Since 45/31 ...
by sscritic
Wed Jul 30, 2014 1:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: CSRS and SS, check my logic
Replies: 21
Views: 954

Re: state income tax withheld from IRA distribution?

Although this is pick on Vanguard week, let's not forget other providers. Here is Fidelity: No state tax withholding is available (even if your state has income tax). Eleven states are listed; some don't have an income tax and some do. Now someone else check out another provider. I have provided fac...
by sscritic
Wed Jul 30, 2014 12:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: state income tax withheld from IRA distribution?
Replies: 26
Views: 1009

Re: I don't think I can afford to die in Pennsylvania

Forget the heirs. As I read bogleheads, Roth conversions are the best thing since sliced bread. Now all of a sudden, Roth conversions are the stupidest things ever, just because there are heirs? I don't get it.
by sscritic
Wed Jul 30, 2014 10:57 am
 
Forum: Personal Finance (Not Investing)
Topic: I don't think I can afford to die in Pennsylvania
Replies: 19
Views: 1468

Re: state income tax withheld from IRA distribution?

I don't understand why Vanguard can withhold tax for 24 states, but not for the others that have income taxes. I cannot imagine that the states would refuse to take money from Vanguard. Vanguard is already set up to withhold for some states, so why not offer the service for the others? Jeff I gave ...
by sscritic
Wed Jul 30, 2014 10:38 am
 
Forum: Personal Finance (Not Investing)
Topic: state income tax withheld from IRA distribution?
Replies: 26
Views: 1009

Re: I don't think I can afford to die in Pennsylvania

If you are thinking about spending your IRA's first or converting them to Roths, don't be penny wise and pound foolish. Why pay a 15% or 25% federal income tax +state income tax now to avoid your heirs having to pay 15% estate tax later. Why ever give anyone a gift? Because you want to spend your o...
by sscritic
Wed Jul 30, 2014 10:36 am
 
Forum: Personal Finance (Not Investing)
Topic: I don't think I can afford to die in Pennsylvania
Replies: 19
Views: 1468

Re: I don't think I can afford to die in Pennsylvania

Can they take money out of an inherited Roth without penalty? If so, convert all your IRAs to Roths. This also reduces the inheritance tax burden on them. I think they can take the Roth as a lump sum without taxes if the Roth is 5 years old. Start your conversions now so that your Roths will be well...
by sscritic
Wed Jul 30, 2014 9:54 am
 
Forum: Personal Finance (Not Investing)
Topic: I don't think I can afford to die in Pennsylvania
Replies: 19
Views: 1468

Re: Social Security - Receive Any Letters Approaching Age 70

I turn 70 next year in Aug and was planning on not requesting payment till Dec in order to defer income to the following year(marginal tax threshold issues). The SS lady said yes, you would be paid retro, but you would get a 1099 for the year originally due to you. Interesting that in general, tax ...
by sscritic
Wed Jul 30, 2014 9:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Social Security - Receive Any Letters Approaching Age 70?
Replies: 15
Views: 1259

Re: I don't think I can afford to die in Pennsylvania

Or don't give them IRAs. Take all your money out of the IRAs and pay the income tax yourself. That has three positive effects for your heirs: they won't have RMDs and owe income tax, they will inherit less and thus owe less in inheritance tax, and they will have cash to pay what is required. The oth...
by sscritic
Wed Jul 30, 2014 9:28 am
 
Forum: Personal Finance (Not Investing)
Topic: I don't think I can afford to die in Pennsylvania
Replies: 19
Views: 1468

Re: Your 401k, u die, must beneficiary withdraw within 5 yea

Try pub 6392, item II. e. for the rollover part. Try pub 7004, item II b. for the rmd part. There are cites, e.g. code and regs. Gotta go to Broncos' practice. Thanks, but I am still confused: For this purpose, a distributee includes only the employee and the employee’s surviving spouse (or the emp...
by sscritic
Wed Jul 30, 2014 9:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Your 401k, u die, must beneficiary withdraw within 5 years?
Replies: 7
Views: 762

Re: state income tax withheld from IRA distribution?

So here are my questions: Why does Vanguard divided the states into five different categories with different rules for each? Are they just messing with us, or are there state laws or regulations to be followed? If there are laws, are they permissive or restrictive? Do other providers follow the same...
by sscritic
Wed Jul 30, 2014 8:34 am
 
Forum: Personal Finance (Not Investing)
Topic: state income tax withheld from IRA distribution?
Replies: 26
Views: 1009

Re: How to keep family informed

I don't like plus ones, especially when they are not spelled out, but for pjstack's comment about telling your family what not to worry about because you don't have any of whatever, I say

plus one.
by sscritic
Wed Jul 30, 2014 1:36 am
 
Forum: Personal Finance (Not Investing)
Topic: How to keep family informed
Replies: 33
Views: 1706

Re: state income tax withheld from IRA distribution?

Vanguard will not withhold income tax for Ohio. If I make an IRA withdrawal, I must make other arrangements to pay the tax. It is an inconvenience, and I have asked them to change the policy. So far, they have not. Jeff Yes, Ohio is one of the states subject to the fifth rule, i.e., it is not liste...
by sscritic
Wed Jul 30, 2014 1:14 am
 
Forum: Personal Finance (Not Investing)
Topic: state income tax withheld from IRA distribution?
Replies: 26
Views: 1009

Re: Was ready to pull plug on Janus..until

I think the suggestions you are getting are all reversed. Here is what you should do: 1) sell all your Janus funds and buy the Janus Total Stock Market fund. 2) wait 8 years and compare your results to VTI. This will give you a fair comparison. P.S. The only possible problem with this approach is th...
by sscritic
Tue Jul 29, 2014 11:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Was ready to pull plug on Janus..until
Replies: 63
Views: 3191

Re: How to keep family informed

About passwords. Even Facebook doesn't let dead people log in. we also take measures to protect the privacy of the deceased person by securing the account. ... It is always a violation of our policies to log into another person's account. I don't think Vanguard is any more lax than Facebook, which o...
by sscritic
Tue Jul 29, 2014 11:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to keep family informed
Replies: 33
Views: 1706

Re: state income tax withheld from IRA distribution?

scrabbler1 wrote:My friend has an inherited IRA with Fidelity and can choose how much, if any, he wants to have withhheld in state (NY) and federal income taxes from his RMD.

And what would Vanguard do? Which rule would apply to your friend? Does Vanguard have a different rule from Fidelity for residents of NY?
by sscritic
Tue Jul 29, 2014 11:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: state income tax withheld from IRA distribution?
Replies: 26
Views: 1009

Re: How to keep family informed

I don't see the point of usernames and passwords. When you die, your executor or personal representative will have to inform the custodians of your various accounts. The custodians will likely want to see death certificates. The list of custodians is the most important. Even if I don't tell my child...
by sscritic
Tue Jul 29, 2014 11:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to keep family informed
Replies: 33
Views: 1706

Re: state income tax withheld from IRA distribution?

Vanguard has five rules depending on where you live. I will let you figure out which applies to your state. If federal tax is withheld, state tax withholding is mandatory. Vanguard will automatically withhold the minimum required by your state unless you specify a higher amount below. If federal tax...
by sscritic
Tue Jul 29, 2014 10:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: state income tax withheld from IRA distribution?
Replies: 26
Views: 1009

Re: CSRS and SS, check my logic

As I understood it, since her CSRS is >> than my SS and CSRS is treated like SS (as I think it makes sense) she would get the larger of the two pensions which would be hers. She did not pay into SS during here working days. So I see it as two people contributing to a government sponsored retirement...
by sscritic
Tue Jul 29, 2014 9:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: CSRS and SS, check my logic
Replies: 21
Views: 954

Re: CSRS and SS, check my logic

GPO: Your Social Security benefits will be reduced by two-thirds of your government pension [from uncovered work]. In other words, if you get a monthly civil service pension of $600, two-thirds of that, or $400, must be deducted from your Social Security benefits. Say her pension is $6,000. Her soci...
by sscritic
Tue Jul 29, 2014 8:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: CSRS and SS, check my logic
Replies: 21
Views: 954

Re: Goodbye and Good Luck!

3000 posts; banned three times; average time between bans, 750. Well since there have only been 450 since the last, it is probably more like

850 + 850 + 850 + 450 (each plus sign being a ban).

Can you reveal your previous three identities?
by sscritic
Tue Jul 29, 2014 7:39 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: Goodbye and Good Luck!
Replies: 12
Views: 2290

Re: Your 401k, u die, must beneficiary withdraw within 5 yea

There is a 5 year rule for an IRA if the beneficiary is not an individual (you didn't specify) and the death is before the RBD. If the owner died before his or her required beginning date (defined earlier) ... If the owner's beneficiary is not an individual (for example, if the beneficiary is the ow...
by sscritic
Tue Jul 29, 2014 7:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Your 401k, u die, must beneficiary withdraw within 5 years?
Replies: 7
Views: 762

Re: Your 401k, u die, must beneficiary withdraw within 5 yea

I think placeholder has it. From 2006, showing the old and the new: In the past, though, inheriting a 401(k) from someone who wasn't your spouse was a lesson in diminishing returns. By law, "non-spouses" couldn't roll over an inherited 401(k) into their own IRAs. Most company 401(k) plans ...
by sscritic
Tue Jul 29, 2014 6:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Your 401k, u die, must beneficiary withdraw within 5 years?
Replies: 7
Views: 762

Re: state income tax withheld from IRA distribution?

Lower cost. They do what they have to, not what you want them to do.
by sscritic
Tue Jul 29, 2014 3:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: state income tax withheld from IRA distribution?
Replies: 26
Views: 1009

Re: Price per share of funds different in 401K from actual p

The wiki for CIT says they are tax exempt, which I did not know and is certainly interesting. If you could trust that they were not gouging investors with unjustifiable fees or excessive cash positions, I suppose the tax exempt as opposed to tax deferred status has some attraction. I am in the midd...
by sscritic
Tue Jul 29, 2014 3:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Price per share of funds different in 401K from actual price
Replies: 8
Views: 523

Re: Price per share of funds different in 401K from actual p

Interesting thread. I have a number of 401k options with no ticker symbol that seem to be set up this way, either a collection of "mutual funds" it invests in under one wrapper (some of the component funds themselves have no ticker symbol but are provided by big name firms), or some undis...
by sscritic
Tue Jul 29, 2014 2:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Price per share of funds different in 401K from actual price
Replies: 8
Views: 523

Re: Who determines 1099-R Codes?

You need to read their notice carefully to determine which rollovers the IRS maintains are taxable for this reason, and what info they are requesting. For the Roth IRAs, if you reported a rollover on your return correctly, you should not have to amend 2012, but need to send the IRS a copy of the st...
by sscritic
Tue Jul 29, 2014 12:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Who determines 1099-R Codes?
Replies: 7
Views: 509

Re: Taking out mortgage with zero down. Smart or no?

I signed several documents when I bought my house. One was a note, my promise to repay. The note says nothing about turning in my house or even about the lender taking my house. It does mention that if I don't pay I am in default. It doesn't detail what the consequences of default are. It does menti...
by sscritic
Tue Jul 29, 2014 12:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taking out mortgage with zero down. Smart or no?
Replies: 63
Views: 2800

Re: CSRS and SS, check my logic

I get 50%. So what income needs will you have as a widower? Is 50% of hers plus your age 66 SS plenty? [You didn't mention any other assets, but I assume they are some and that when looking at your income needs you are including them.] Now maybe the odds are that you will be long gone by the time s...
by sscritic
Tue Jul 29, 2014 12:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: CSRS and SS, check my logic
Replies: 21
Views: 954

Re: CSRS and SS, check my logic

No. Given the size of her pension (I am taking your word for it), you are essentially a single person as far as SS is concerned. So do what a single person would do. But first answer this: if she dies, what do you get? If you get nothing, you, as a single person, may want to delay. I am not saying i...
by sscritic
Tue Jul 29, 2014 12:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: CSRS and SS, check my logic
Replies: 21
Views: 954

Re: Taking out mortgage with zero down. Smart or no?

I signed an agreement with the bank saying I would pay my loan or give them the house back. My guess is that is not what your agreement actually says if you read the words. My guess is that you gave a promise to repay. Now the agreement probably has a remedy clause if you fail to live up to your ag...
by sscritic
Tue Jul 29, 2014 12:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taking out mortgage with zero down. Smart or no?
Replies: 63
Views: 2800

Re: Fidelity Customer Protection Guarantee

Never share your user name, password, or other account-related information with anyone.

So if you give any of this information to your spouse or children, you lose the protection.
by sscritic
Tue Jul 29, 2014 12:13 pm
 
Forum: Investing - Theory, News & General
Topic: Fidelity Customer Protection Guarantee
Replies: 20
Views: 1013

Re: negotiating fees with a real estate agent?

Our friend negotiate the fee down, but learned the agent was only willing to give the buyer agent 1.5%. So don't assume it will be fair to the buyer agent. That was a mistake. The split is part of the agreement. When I got 4.5%, the split was clearly stated in the contract. Don't sign a contract yo...
by sscritic
Tue Jul 29, 2014 12:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: negotiating fees with a real estate agent?
Replies: 14
Views: 1863

Re: Invest in pricey 403(b),or skip it and go taxable?

We guessed that tax deferred was the way to go. I think we more or less broke even on the decision in the sense that tax bracket differential will compensate for the 403(b) costs. By tax bracket differential are you talking about a lower bracket in retirement? With a decent pension, your bracket do...
by sscritic
Tue Jul 29, 2014 11:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Invest in pricey 403(b),or skip it and go taxable?
Replies: 21
Views: 1268

Re: Invest in pricey 403(b),or skip it and go taxable?

Keep in mind that because we're talking about a government job with a pension And no social security (unless SAUSD is out their all on their own). The pension is CalSTRS I assume. CalSTRS is not as well funded as CalPERS, but it is not going away. At long last, Gov. Jerry Brown has stopped ignoring...
by sscritic
Tue Jul 29, 2014 11:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Invest in pricey 403(b),or skip it and go taxable?
Replies: 21
Views: 1268

Re: Advice wanted on first computer purchase since 1982!

Question: when do stores get stock? Is it not in advance of the official sale start date? If not, how could new iPhones be in the stores on the release date?

Which brings me to this: did your friendly campus guy already have the new ones in stock on Friday when he sold you the old one?
by sscritic
Tue Jul 29, 2014 11:28 am
 
Forum: Personal Consumer Issues
Topic: Advice wanted on first computer purchase since 1982!
Replies: 105
Views: 5313

Re: Advice on when to start Social Security

You can take one without the other. If she can support herself until 62, here is one possible strategy: Take as herself at 62. Take as a widow at 66 (her FRA if born in 1953 or 1954, when someone age 60 was born). Even if her income from work reduces her own benefit from 62 to 66, it can't be less t...
by sscritic
Tue Jul 29, 2014 11:15 am
 
Forum: Personal Finance (Not Investing)
Topic: Advice on when to start Social Security
Replies: 2
Views: 489

Re: Revocable Trust Tax Treatment

P.S. You may be confusing taking money out with taking income out. Income is taxed whether it is taken out or not. Taking out money that is already taxed is not taxed again. Go back and read a few of those article more carefully.
by sscritic
Tue Jul 29, 2014 10:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Revocable Trust Tax Treatment
Replies: 9
Views: 471

Re: Revocable Trust Tax Treatment

For a typical irrevocable trust (there are many kinds) the simplified version is that income is taxed, but who pays is the question. (The answer for the revocable grantor trust is the grantor pays, as all the income belongs to the grantor, but the grantor can use the money in the trust to pay if he ...
by sscritic
Tue Jul 29, 2014 10:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Revocable Trust Tax Treatment
Replies: 9
Views: 471

Re: Advice wanted on first computer purchase since 1982!

It's now official. Today sees Apple refresh its premium MacBook Pro with Retina display lineup, bumping the CPU speeds and RAM, as well as dropping the prices of the high-end models, ahead of the release of OS X 10.10 Yosemite, and also in advance of the back-to-school buying frenzy. Prior to this u...
by sscritic
Tue Jul 29, 2014 10:42 am
 
Forum: Personal Consumer Issues
Topic: Advice wanted on first computer purchase since 1982!
Replies: 105
Views: 5313

Re: Revocable Trust Tax Treatment

Thanks sscritic. So, let's say this trust has $250k liquid cash. In one year, the individual beneficiary receives $40k cash from the trust. You're saying that the $40k is NOT taxed in any way, right? What forms would have to be filled out in that case? I think I understand if there's a capital gain...
by sscritic
Tue Jul 29, 2014 10:29 am
 
Forum: Personal Finance (Not Investing)
Topic: Revocable Trust Tax Treatment
Replies: 9
Views: 471

Re: Revocable Trust Tax Treatment

The trust passes through, as you say. However, gifts aren't income and anyway what you give yourself isn't a gift, certainly not a taxable gift. There is a gain. The gain passes out to the grantor. The grantor pays the income tax. The grantor gives the money to anyone, including you. There is no add...
by sscritic
Tue Jul 29, 2014 10:09 am
 
Forum: Personal Finance (Not Investing)
Topic: Revocable Trust Tax Treatment
Replies: 9
Views: 471

Re: Help with "Cost Basis Adjustment Form for Inherited Shar

P.S. One other fact about community property that is often overlooked: it is not wros unless so stated (at least in CA, which is what I know). When someone in the community dies, that person can leave half of their house, say, to the children by a previous marriage. The children get the step-up beca...
by sscritic
Tue Jul 29, 2014 10:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with "Cost Basis Adjustment Form for Inherited Shares"
Replies: 23
Views: 668

Re: Help with "Cost Basis Adjustment Form for Inherited Shar

According to Vanguard rep: This is the only form they have for adjusting the cost basis for inherited shares. Community property states would use the same form but might fill it out differently. My parent can choose to not step up the value and therefore not complete the form. Or, choose to step up...
by sscritic
Tue Jul 29, 2014 9:35 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with "Cost Basis Adjustment Form for Inherited Shares"
Replies: 23
Views: 668

Re: Where to keep "emergency fund" and how much to keep in b

What do you get for keeping $5k in your bank? One of my banks gives me freebies if I keep $10k. Another if I keep $2.5k. What are your freebies worth?

Obviously freebies aren't free as you are foregoing the difference in interest between what you get at your bank and what you can get elsewhere.
by sscritic
Tue Jul 29, 2014 9:05 am
 
Forum: Investing - Help with Personal Investments
Topic: Where to keep "emergency fund" and how much to keep in bank?
Replies: 19
Views: 2560

Re: negotiating fees with a real estate agent?

It can also depend on the price. 4.5% of $1,000,000 is more than 6% of $700,000 (45 is more than 42). Most agents like to make money, not percents of sales they don't get. It also depends if the brokers are sitting around their desks with nothing to do. What is the trend in broker employment (unempl...
by sscritic
Tue Jul 29, 2014 8:55 am
 
Forum: Personal Finance (Not Investing)
Topic: negotiating fees with a real estate agent?
Replies: 14
Views: 1863

Re: Purchasing public pension benefits

how can they afford to? Do they have access to better investments. . They have access to taxes. Bogleheads don't. My pension is probably too big; I don't deserve it, but I still cash my check every month. Stupid legislature! [OK, direct deposit, not cash, but that wouldn't read as well.] Really? If...
by sscritic
Tue Jul 29, 2014 2:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Purchasing public pension benefits
Replies: 16
Views: 1084

Re: negotiating fees with a real estate agent?

Discount is an acceptable term; kickback isn't. Rebate is also acceptable. Redfin calls theirs a refund.
http://www.redfin.com/buy-a-home/refund

My refund exceeded my closing costs after all adjustments, so they cut me a check for the excess after closing.
by sscritic
Tue Jul 29, 2014 2:29 am
 
Forum: Personal Finance (Not Investing)
Topic: negotiating fees with a real estate agent?
Replies: 14
Views: 1863
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