Search found 801 matches

by jane1
Wed Jan 25, 2017 1:26 am
Forum: Personal Finance (Not Investing)
Topic: Question about backdoor Roth
Replies: 12
Views: 1431

Re: Question about backdoor Roth

Ever since the law allowed it in 2010, I have been diligently contributing to my Roth IRA via the backdoor. Note I started with no deductible traditional IRA, and so the conversion of my non-deductible traditional contributions has always been tax-free. However, in October 2016, an old 403(b) account that I forgot I had was automatically converted to a traditional IRA. The amount was trivial, around $4,500. Naturally, I contributed to a non-deductible traditional account in January 2016 and immediately converted it to a Roth IRA. As best I can tell, since my deductible traditional IRA basis was $0 in January 2016, the conversion to a Roth IRA will remain a tax-free event. Does that sound right? Your 2016 conversion will be subject to pro-r...
by jane1
Tue Jan 24, 2017 8:12 pm
Forum: Personal Consumer Issues
Topic: Cell service abroad, what did I do wrong
Replies: 29
Views: 3542

Re: Cell service abroad, what did I do wrong

Just to mention if you use T-Mobile a lot of foreign countries SMS and data are included for free (at slower speeds) but fast enough to do basic email, maps, etc. I spent ~30 days in Europe last year for work/vacation and paid like $1 for 5 minutes of phone calls. +1 on t-mobile. I take several international trips a year and I have used T-mobile in dozens of countries. No SIM hassle, no changing phone number, I just continue using the phone when I land as I do at home (except I avoid long phone calls since calls when roaming international are 20cents/minute). Data and SMS are free, so I use email, maps, whatsapp, Uber, facetime, google voice, skype, other apps just like in US. If you have a Google Fi compatible phone, Fi would be a good op...
by jane1
Sun Jan 22, 2017 2:11 am
Forum: Personal Finance (Not Investing)
Topic: State Sales Tax vs. State Income Tax
Replies: 3
Views: 1072

Re: State Sales Tax vs. State Income Tax

State Sales Tax deduction often only makes sense for states where you would pay no/low income tax for your income bracket. Or when you have a major purchase (car, boat). Home purchase sales tax deduction has more restrictions.
I have found that the IRS Sales Tax calculation is often generous than actual tracking (unless you are dipping into savings for your purchases). A person's gross income goes towards paying for SS/Fed/State taxes, housing, food, healthcare, etc which may not be taxable in your state. So one only has a smaller amount remaining to spend on purchases subject to sales tax.
by jane1
Mon Jan 16, 2017 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: is a 401k loan always terrible?
Replies: 51
Views: 7130

Re: is a 401k loan always terrible?

However, I've never heard of anybody suggesting to guarantee getting nothing but low returns in a 401(k) by investing only in low-return fixed income funds. The main reason for investing is in the hope that the stock market will continue to do as it has done for its entire history, and return more than the inflation rate ... which you are not nearly as likely to be able to do in stable value funds. jimb If one's US stocks are in Roth & taxable, intl stocks are in taxable and bonds are in 401k as suggested in https://www.bogleheads.org/wiki/Tax-efficient_fund_placement couldn't one end up with a good part of 401k in bonds? Or even all (based on fraction of assets within each type). Not ideal to have low-return fixed income funds, but if...
by jane1
Mon Jan 16, 2017 11:17 am
Forum: Personal Finance (Not Investing)
Topic: is a 401k loan always terrible?
Replies: 51
Views: 7130

Re: is a 401k loan always terrible?

If the entire (or most) 401k is in the bond (fixed income) portion of your asset allocation (which is recommended for tax-efficient placement), wouldn't paying yourself 4-5% be not too bad? More so, when you are reasonably confident that you can pay "loan" back. I understand things can go wrong. I haven't given it much thought but could that be a way to shift some $ from taxable account into a 401k?
by jane1
Tue Jan 10, 2017 10:41 am
Forum: Personal Finance (Not Investing)
Topic: File taxes with $0 income with a dependent?
Replies: 29
Views: 3118

Re: File taxes with $0 income with a dependent?

dziuniek wrote:Single mother with no income. Who's paying the bills? Are they both someone's dependents?
This is important if they are someone else's dependents. That person should claim them on their tax return and the Single Mom can skip filing her own return.
If they cannot be claimed, as others have said, safer (for ID theft reasons) to file with $1 income.
by jane1
Sun Jan 01, 2017 3:21 pm
Forum: Personal Consumer Issues
Topic: Scenic train trip?
Replies: 21
Views: 2875

Re: Scenic train trip?

Amtrak Denver to Emeryville (SF), CA has 2 scenic stretches of mountain scenery - Denver to SLC and Reno to Sacramento
Amtrak LA to San Diego is mostly along the coast
SF- Seattle is good but not great. Not particularly coastal even though the name suggests that
Canadian Rockies is one of the most scenic

Google scenic Amtrak trips and you will get some good ideas with photos
https://www.thrillist.com/travel/nation ... trak-tours
by jane1
Tue Dec 27, 2016 9:02 pm
Forum: Personal Investments
Topic: Question on Individual 401k and Traditional IRA
Replies: 10
Views: 724

Re: Question on Individual 401k and Traditional IRA

Note that i401k contribution deadline is mid-April tax deadline, but she needs to open the account before 12/31. There are several threads on Bogleheads about this (use search to get additional details).
by jane1
Sat Dec 24, 2016 10:58 am
Forum: Personal Investments
Topic: Vanguard transfer nightmare....
Replies: 35
Views: 5135

Re: Vanguard transfer nightmare....

veggivet wrote:If you want to avoid all transaction costs, just transfer your assets from Vanguard to any of the major discount brokerage houses like TD Ameritrade or Fidelity. Just make sure that you will qualify for free trading before you commit; they commonly allow for either a certain number of free trades (usually many more than 30-40) or a certain amount of time (usually at least 3 months). Just be sure to do your homework before you move the $$.
OP, Make sure you check if mutual funds are included in the free trades. Most free trading promos, that I am aware of, include Stocks, ETFs, Options but not MFs.
by jane1
Wed Dec 21, 2016 7:12 pm
Forum: Personal Investments
Topic: Backdoor Roth and basis question
Replies: 7
Views: 1193

Re: Backdoor Roth and basis question

It IS very possible to have TIRA basis, yet have a 0 balance for your TIRAs. The Form 8606 Inst include a "Total Basis Chart" that indicates your TIRA basis is the amount shown on line 14 of the last 8606 filed. The back door procedure can illustrate this. Assume you make a 5500 ND contribution and have no other TIRA assets. But you invest it in a stock or stock based fund. Market tanks and before you convert, the 5500 contribution is now worth only 5000. You convert the 5000, and the line 14 will show that there is still 500 of basis remaining. No matter when you make your next TIRA contribution, you will enter that leftover 500 on line 2 of your next 8606. NOTE: To have a line 14, you must complete Part I. Part I must always be...
by jane1
Tue Dec 20, 2016 11:02 pm
Forum: Personal Investments
Topic: Backdoor Roth and basis question
Replies: 7
Views: 1193

Re: Backdoor Roth and basis question

You are good to go. Unrealized and realized cost basis in an investment is different from basis in IRA. Although concept is the same i.e. how much of your holding have you already paid tax on. Your IRA basis is made up on all your non-deductible contributions still within IRA. Worth understanding this since it will come in handy when you do your taxes - Your IRA basis has likely been zero even though your IRA balance may have been $100K. Once you make a $5500 non-deductible contribution (i.e. tax has already been paid on it), that $5500 becomes the basis. So if that becomes $6000, you would ultimately have to pay tax on the $6000-$5500 (basis) when you withdraw (distribute or convert). Your basis gets reset to 0 once IRA becomes empty. If y...
by jane1
Tue Dec 20, 2016 7:40 pm
Forum: Personal Investments
Topic: Makes No Sense to Contribute to 401K, right?
Replies: 20
Views: 3229

Re: Makes No Sense to Contribute to 401K, right?

Your question essentially comes down to whether you want to increase your tax-deferred, which you may end up paying >28% upon withdrawal with RMDs or put it in taxable (where LTCG and QD would be taxed at 15% + 3.8% NIIT or STCG and OD at ordinary rate). It would depend on your current age, your current mix of assets (Tax free, tax deferred, taxable) and your long term goal for your assets. If you plan to leave a large estate, having funds in taxable where your heirs can get a step up in basis is good. If you plan to give away to charity during your lifetime, IRA funds as QCD is good. Feel free to post specifics and people may be able to give your better advice. Have you optimized your current portfolio in terms of placing bonds (except mun...
by jane1
Mon Dec 19, 2016 3:30 pm
Forum: Personal Consumer Issues
Topic: Hard Endeavor/Exercise in Middle Age
Replies: 118
Views: 12333

Re: Hard Endeavor/Exercise in Middle Age

Lot of people in their late 30s and 40s train and run a marathon for the first time. Triathlons are also popular at that age.
If you live near mountains, have goals to hike/climb the tough ones. Tallest peaks in all continents, all 14ers in your state.
Mountain biking, assuming you live close to such areas. I see people in their 60s and 70s at tennis courts. Even know a lady in her 80s who plays tennis regularly.
by jane1
Mon Dec 19, 2016 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Job switch dilemma
Replies: 40
Views: 4797

Re: Job switch dilemma

Watty wrote: You can never tell but there is a good chance that some or all of your kids will settle down near you when they grow up. Take at look at what it will be like for them to be trying to afford to live in that area and to buy homes there someday.
Good point. I would add to that and say look at the other side too. Would your kids be able to get jobs and live in or close to your current college town? Although at 40, you shouldn't really be thinking where your kids will settle down in life and dictate your career and life choices based on that. Maybe when you are in your 50s that can be more of a consideration.
by jane1
Mon Dec 19, 2016 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Job switch dilemma
Replies: 40
Views: 4797

Re: Job switch dilemma

Life is too unpredictable and short. What is the point of money anyway? IMO, Happiness and satisfaction in life matters most.
Taking a pay cut is in some ways similar to early retirement - you trade money for quality of life. You won't miss the $. You may blame your spouse at some point for holding you back if you haven't taken the leap.
We always wanted to live in the Bay Area, so moved from Chicago after quitting jobs. Compensation wise still not whole, but don't care. We have plenty. Minimize regrets in life.
Btw, I wouldn't give the same advice to someone with low assets, low income and low income potential. But for you, the downside and risk is minimal. You can always move if things don't work out.
by jane1
Sun Dec 18, 2016 11:57 pm
Forum: Personal Investments
Topic: Non-Deductible IRA Contributions Could Leave You Taxed Twice
Replies: 8
Views: 1731

Re: Non-Deductible IRA Contributions Could Leave You Taxed Twice

If you do #3, you can contribute the non-deductible every year and can potentially build a good Roth balance over the years (assuming backdoor doesn't go away with any new laws). The move from IRA to 401k is a one-time hassle.
by jane1
Sun Dec 18, 2016 8:33 pm
Forum: Personal Investments
Topic: Should I use 3 different brokerage firms?
Replies: 8
Views: 2163

Re: Should I use 3 different brokerage firms?

I used to have accounts at 3 different brokers. Then there is His and Her. Then IRA, Roth, Taxable and 401k. So that is close to 24 accounts. That doesn't include bank, I-bonds, employee stock. Rebalancing, TLH, wash sales, new investments all became unnecessarily more complex. So now I have simplified significantly although still not reached my desired state. Goal is to have all funds associated with an account type (ex. Roth) at only one broker. So ultimately down to 8 accounts and maybe 1-2 brokers.
Unless you have strong reason for choosing multiple brokers, I would suggest stick with one. Specially if your goal is to move to a Lazy portfolio.
by jane1
Sun Dec 18, 2016 5:52 pm
Forum: Personal Investments
Topic: Unclear on Solo 401k for very small income
Replies: 4
Views: 624

Re: Unclear on Solo 401k for very small income

This year I have opened a Fidelity Solo 401k, hoping to contribute the very small amount I have made through the year selling things on Craigslist, etc. Do I need to make a contribution before December 31st? I was going to wait until we do taxes next year, so I know the correct amount for the 'employer' side, but now I'm wondering if the contribution as an 'employee' needs to happen before the end of the year. And if it does, how do I find out the correct amount I could contribute? Let's say, for example, that I made $1000 selling some things that had no cost to me. Can I contribute the full $1000? I kept reading everything I could on self-employed 401K accounts but all the examples assume you are making a lot more than the $18000 maximum ...
by jane1
Sun Dec 18, 2016 4:01 pm
Forum: Investing - Theory, News & General
Topic: Cost basis method with holding across multiple accounts?
Replies: 6
Views: 1802

Re: Cost basis method with holding across multiple accounts?

Thank you Livesoft. Very helpful. Makes sense. Long time ago (beyond amendment period) we have done FIFO assuming combined account because wash sales were across accounts. So I guess it wasn't quite accurate. Now I know better. We still have holdings (that used that assumption) and will have to continue with that assumption to make sure the overall accounting is correct.
livesoft wrote:
Bonus: At the end, there were 300 shares purchased and 200 shares sold. The Day 100 shares have a basis of $100 and not $90.
Why 300? The example has 400 shares purchased.

Thanks as always for the detailed clarification.
by jane1
Sun Dec 18, 2016 1:12 pm
Forum: Investing - Theory, News & General
Topic: Cost basis method with holding across multiple accounts?
Replies: 6
Views: 1802

Re: Cost basis method with holding across multiple accounts?

FIFO is a subset of Specific Identification. FIFO is not a cost basis method no matter what a broker states. It is a method of specifying shares to sell. FIFO is not the only subset of Specific Identification, there are others. My understanding was FIFO is a cost basis method, and not just a way to identify specific shares. Not true? It is mentioned as a method in IRS pubs. https://www.irs.gov/publications/p550/ch04.html#en_US_2015_publink1000250005 https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-answers/capital-gains-losses-and-sale-of-home/stocks-options-splits-traders/stocks-options-splits-traders-1 You mentioned VTI. Since it is an ETF and not an open-ended mutual, one cannot use Averag...
by jane1
Sun Dec 18, 2016 11:01 am
Forum: Investing - Theory, News & General
Topic: Cost basis method with holding across multiple accounts?
Replies: 6
Views: 1802

Cost basis method with holding across multiple accounts?

If I have the same holding in multiple taxable accounts, are those treated as 1 single account for the purposes of cost basis method? What about if some of those accounts are held by me and some by spouse? What if one has chosen different default cost basis methods in different accounts, say Specific ID in one and FIFO in another? For instance, VTI in Her Vanguard and TDA taxable account as well as VTI in His Vanguard and TDA taxable accounts. Given that wash sales are across all accounts, I am guessing FIFO, average basis is also combined across accounts? That is how we have been doing so far. Specific ID method makes it cleaner. Is there a way I can sell in one account but use Specific ID to specify shares held in another account? I have ...
by jane1
Sat Dec 17, 2016 1:23 am
Forum: Personal Finance (Not Investing)
Topic: Simple Math but wanted verification
Replies: 7
Views: 1364

Re: Simple Math but wanted verification

Use taxcaster or some free tax software to try out scenarios.

SS taxation is worth understanding.
https://www.bogleheads.org/wiki/Taxatio ... y_benefits

Check if they will qualify for an exception to the 10% early withdrawal penalty.
https://www.irs.gov/retirement-plans/pl ... tributions
by jane1
Sat Dec 17, 2016 1:17 am
Forum: Personal Investments
Topic: Vanguard Roth Conversion between ex div & record date
Replies: 11
Views: 1468

Re: Vanguard Roth Conversion between ex div & record date

Miriam2 wrote:
jane1 wrote:Even if it involves a sell & buy, you will not lose the dividend since both settle T+1.
This sounds like advanced work :happy What is T+1? (and it looks like my dividends won't slip through the crack between traditional and Roth on dividend day)
T+1 means a trade settles after 1 day. So if you buy a vanguard MF on 12/19, it settles next business day (which is when you become the official owner in the record books). Same would happen with the sell.

Stocks and ETFs settle, T+3.
by jane1
Sat Dec 17, 2016 12:41 am
Forum: Personal Investments
Topic: Vanguard Roth Conversion between ex div & record date
Replies: 11
Views: 1468

Re: Vanguard Roth Conversion between ex div & record date

The difficulty I have with the "transferring" between accounts and "selling" the fund is that on the Vanguard website, the directions say: Converting from a traditional IRA to a Roth IRA is considered an exchange within Vanguard funds. Select the traditional Vanguard IRA account(s) you want to convert. Select the fund you want to exchange from and enter the dollar amount. Choose the Roth IRA to receive the converted assets. Select the fund you want to invest in. The final step is to review and submit. However, when I select the traditional IRA, it asks me if I want to "sell" - not exchange - the fund and how much. There is no "exchange" option. Then in the Roth, the option is to "buy" the f...
by jane1
Fri Dec 16, 2016 10:44 pm
Forum: Personal Investments
Topic: Vanguard Roth Conversion between ex div & record date
Replies: 11
Views: 1468

Re: Vanguard Roth Conversion between ex div & record date

Since you are not selling anything, just transferring between accounts, you will not miss the dividend.
My understanding is that if conversion is executed anytime before the record date, you will get dividends in the Roth. Else in IRA.
by jane1
Fri Dec 16, 2016 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: Self HSA contribution
Replies: 2
Views: 475

Re: Self HSA contribution

You can also check out the HSA wiki page including list of Custodians that you can transfer your HSA funds to. May be a better long-term option than paying $5.50 fees monthly. Also search for more recent threads.
https://www.bogleheads.org/wiki/Health_savings_account
by jane1
Fri Dec 16, 2016 10:04 pm
Forum: Personal Investments
Topic: Roth Conversion vs. Premium Tax Credit
Replies: 8
Views: 1988

Re: Roth Conversion vs. Premium Tax Credit

Depends on your expected current and future income, tax brackets and size of IRA. If you have a large IRA and will end up being in 25% bracket when RMDs kick-in, you can at least convert to get your MAGI to 399% FPL and still get decent PTC.
Running tax scenarios on a software would be the best way to see where you want to be.
by jane1
Fri Dec 16, 2016 9:59 pm
Forum: Personal Investments
Topic: Back Door Roth contibution
Replies: 6
Views: 852

Re: Back Door Roth contibution

There is no reason you need to hurry and make the $5,500 post-tax contribution to your IRA before the end of 2016. As long as you make the contribution by April 15, 2017 you can designate the contribution for 2016 and then make another contribution for 2017. I would roll all the money in the IRA over to your employer plan first (if your employer allows this) and then start fresh by making a $5,500 post-tax contribution to your IRA in early 2017 but designated as a 2016 contribution and then roll that contribution over to a Roth IRA. Ah yes of course... I was in the same boat, but mid-April this year and those were the steps I followed, so just slipped my mind that OP is not in the same situation. :oops: Thanks for clarifying. it would cert...
by jane1
Fri Dec 16, 2016 9:50 pm
Forum: Personal Investments
Topic: Rolling Over Fidelity 401k?
Replies: 3
Views: 763

Re: Rolling Over Fidelity 401k?

Is this a 401k to 401k transfer? If so, that may be your only option.

If it is a 401k to IRA transfer, and you don't want to stay out of the market with a large account value, then you could potentially try this approach.
If you don't mind a 2-step process and potentially a $50-75 account closing fee + trading commissions, you can ask Fidelity if they can do an electronic in-kind transfer from Fidelity 401k to Fidelity Rollover IRA (assuming the same funds are available in both). After that you buy vanguard ETFs in Fidelity IRA and initiate an electronic transfer between Fidelity IRA and Vanguard IRA.
by jane1
Fri Dec 16, 2016 4:59 pm
Forum: Personal Investments
Topic: Tax gain harvesting - 401k rollover vs taxable
Replies: 2
Views: 506

Re: Tax gain harvesting - 401k rollover vs taxable

furwut wrote:If I had the available cash to pay the taxes due I think I would favor converting the 401k all the way to the top of the 15% tax bracket and skip the capital gains harvesting.
+1. This is what I would suggest as well. You want to pay for taxes from outside funds (not from 401k).

Tax gains can be offset against tax loss in the future, appreciated shares can be donated for double benefit or can be passed on to heirs where they receive a step-up in basis. OTOH taxes need to be paid on IRA (or 401k money) before you can access (except when you use IRA RMDs for QCD after 70.5) so your options are more limited.
Roth also have other benefits.
by jane1
Fri Dec 16, 2016 4:09 pm
Forum: Personal Investments
Topic: Back Door Roth contibution
Replies: 6
Views: 852

Re: Back Door Roth contibution

Thank you jane1! Extremely helpful. I will inquire if my workplace savings will accept a rollover from my IRA. One question though: For me, would the distribution from my IRA to my workplace savings be subject to pro-rata, since I hold a Traditional IRA? Thanks! Let's say you have $30,000 in your IRA. 1. Find out if your 401k will accept incoming rollover of IRA funds. 2. Since you may not have adequate time before year end to do the rollover to 401k first, you contribute additional $5500 into that IRA before the end of this year. You would file 8606 with your tax return establishing a basis of $5500 (meaning you already paid tax on it). 3. Whenever you are ready to move IRA funds to 401k, initiate a partial transfer between these accounts...
by jane1
Fri Dec 16, 2016 11:42 am
Forum: Personal Investments
Topic: Back Door Roth contibution
Replies: 6
Views: 852

Re: Back Door Roth contibution

403(b) does not count as IRA. So she is good.
Your IRAs are independent of hers, so will not impact her conversion. So again, she is good to the IRA to Roth without pro-rata.

Note: your workplace savings may accept rollover from your IRA. You could do that and then do the same as her. Even for 2016, you can contribute to an IRA, file 8606 and then at a later stage do the move to 401k and conversion to Roth.


Edited to add; see for more understanding of the process viewtopic.php?f=1&t=204965
by jane1
Thu Dec 15, 2016 6:56 pm
Forum: Personal Investments
Topic: How to perform the backdoor Roth on the Vanguard website?
Replies: 11
Views: 3626

Re: How to perform the backdoor Roth on the Vanguard website?

l1am wrote:
So now there's $5500.05 in the Roth. So I should call them to void the 5 cents? Technically I guess I own tax on the 5 cents.
You will get a 1099-R in the next 2 months. If it says $5500.05 (Box 1), you enter that on your tax return. Your basis will be $5500 (or whatever is your after-tax contributions from Form 8606). So technically you would owe taxes on the $0.05. All tax software will round it down, so it becomes irrelevant. If you converted $5520, you would owe tax on $20. So Form 1040 Line 15a will be $5520 and Line 15b (Taxable amount) will be $20. This will then be added to your other sources of income to calculate your AGI and ultimately taxes.
Makes sense?
by jane1
Thu Dec 15, 2016 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security and Medicare Tax Different for Last Paycheck
Replies: 6
Views: 942

Re: Social Security and Medicare Tax Different for Last Paycheck

Okay, I spoke to payroll and figured this out. My company allows employees to nominate each other for small bonuses (like $100 - $500) throughout the year to reward good work on projects. It turns out someone nominated me and I'll be getting an extra $155 gift card! I guess I spoiled the surprise by watching my finances too carefully. In my defense, it's the end of the year and I was just making sure I hit the $18k max in my 401k. Glad you figured it out. Congrats! Based on how your company reports such recognition items, you may only get a $100 gift card but $155 was the "grossed up" income included in your paystub. So don't spend yet, until you see the reward amount. # Rant Start # I personally don't like these corporate recogn...
by jane1
Thu Dec 15, 2016 1:17 pm
Forum: Personal Consumer Issues
Topic: Cancel collision coverage on older car?
Replies: 79
Views: 7687

Re: Cancel collision coverage on older car?

dm200 wrote:There are several possible reasons to keep collision and comprehensive coverage on older car:

1. If you rent a car, you can more safely decline some of the expensive insurance options on the rental car.
Didn't know that. I thought collision/comprehensive were specific to a car VIN and aren't transferable. Although liability is. How does it work with rental cars, if you have multiple cars, some with collision/comprehensive and some without.
by jane1
Thu Dec 15, 2016 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Social Security and Medicare Tax Different for Last Paycheck
Replies: 6
Views: 942

Re: Social Security and Medicare Tax Different for Last Paycheck

You need to provide other deductions for those paychecks. Maybe there was FSA/HSA/Health Insurance premium deduction (cafeteria plans) that are not subject to SS and Medicare tax. Likely to be a $155 item.

Edit: could be a mistake they have been making that they corrected. Post your latest YTD Gross, deductions and withholdings
by jane1
Thu Dec 15, 2016 11:06 am
Forum: Personal Investments
Topic: Employer 401k to Rollover IRA in Retirement?
Replies: 13
Views: 1616

Re: Employer 401k to Rollover IRA in Retirement?

If they are currently in a lower tax bracket than they expect to be when RMDs kick in, they can consider partial conversions to Roth.
by jane1
Wed Dec 14, 2016 11:06 pm
Forum: Personal Consumer Issues
Topic: Which state to move for milder weather
Replies: 118
Views: 21447

Re: Which state to move for milder weather

HawaiiBrewer wrote: BUT, there are a lot of other things to consider which my wife suggests can be the "dark side" to paradise.

As we consider a relocation off of this "rock", I will say that giving up the weather is one of our biggest concerns.
Can you elaborate on the dark side of paradise?
by jane1
Wed Dec 14, 2016 1:15 am
Forum: Personal Investments
Topic: How to perform the backdoor Roth on the Vanguard website?
Replies: 11
Views: 3626

Re: How to perform the backdoor Roth on the Vanguard website?

Look at transaction history... probably money market interest or dividend payout. Those pesky pennies keep showing up even after rollovers/transfers. For rollovers you can ask the custodian to do a sweep. Not sure how it works for conversions. Let us know what you find out.

Fidelity recentky mailed us $0.04 check from new dividends that showed up after complete IRA rollover to 401k! We need to figure out what to do with it.
by jane1
Wed Dec 14, 2016 1:07 am
Forum: Personal Investments
Topic: Worth it to pay capital gains to balance portfolio? (Again)
Replies: 6
Views: 1509

Re: Worth it to pay capital gains to balance portfolio? (Again)

You should also check if any of these holdings pay significant dividends which adds to their taxable income every year.
If they donate to charity anyway and have giving plans for the future, they can donate appreciated stock (in lieu of cash) for greater tax benefit. Donor advised fund may be an option based on the extent of giving.

They can potentially move the EJones holdings "in kind" to another broker to make it a non-taxable event and avoid any ongoing fees.
by jane1
Mon Dec 12, 2016 7:46 pm
Forum: Personal Investments
Topic: RMD to ROTH
Replies: 11
Views: 1471

Re: RMD to ROTH

Spirit Rider wrote:RMDs are required from all inherited accounts using the lifetime tables, so someone could certainly be < 70.5 and receiving RMDs.
Good point. I missed that.
by jane1
Mon Dec 12, 2016 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Software for 2016?
Replies: 24
Views: 6399

Re: Tax Software for 2016?

If you don't want to do much what-if scenarios, you may be a good candidate to get your taxes done for free by trained volunteers at your local AARP TaxAide site
http://www.aarp.org/money/taxes/info-20 ... xaide.html

Several of us on Bogleheads volunteer at our local TaxAide sites.
by jane1
Mon Dec 12, 2016 5:40 pm
Forum: Personal Investments
Topic: RMD to ROTH
Replies: 11
Views: 1471

Re: RMD to ROTH

Watty wrote: If either of you is below the age of 70.5 you may also be able to make a deductible IRA contribution with the RMD money, once it is in your checking account.
I don't believe that is correct, at least the way it is phrased. If you are over 70.5, you cannot contribute to a Traditional IRA but you can contribute to a Roth. The person under 70.5 can contribute to a deductible IRA. OP has RMD, so must be over 70.5 and spouse maybe under 70.5. Your sentence can be interpreted as "Since spouse (either of you) is below 70.5, you can make deductible IRA..."
https://www.irs.gov/retirement-plans/pl ... ion-limits
by jane1
Mon Dec 12, 2016 5:36 pm
Forum: Personal Investments
Topic: RMD to ROTH
Replies: 11
Views: 1471

Re: RMD to ROTH

rgar98 wrote:I forgot to mention that my wife works full time and I am retired. Am I still allowed to contribute to my Roth?
Yes, both of you can contribute if you meet the Roth income eligibility requirements. You may also be able to do catch-up contributions. I believe you cannot contribute to a Traditional IRA after 70.5.
https://www.irs.gov/retirement-plans/roth-iras
https://www.irs.gov/retirement-plans/pl ... ion-limits

RMD amount will still be taxable. It doesn't matter what you use the funds for.
by jane1
Mon Dec 12, 2016 3:11 pm
Forum: Personal Investments
Topic: Help with Bonds in 401k - Vanguard Total Bond Mkt vs non-public option?
Replies: 1
Views: 356

Help with Bonds in 401k - Vanguard Total Bond Mkt vs non-public option?

I am trying to figure out if the bond option accessible via His 401k is very comparable to Vanguard Total Bond Market Index fund before I use this in a major way. Else we will continue to use Bonds in Her 401k if that is a better option. I can post more details about this fund if it helps. Any advantages/ disadvantages? In His 401k 401k bond index option has a Gross ER of 0.02% (no additional fees apply). Benchmark: BBgBarc U.S. Agg Bond. "U.S. Aggregate Bond Index Fund is a collective investment trust maintained and managed by BlackRock Institutional Trust Company, N.A. (“BTC”). The name of the collective investment trust is U.S. Debt Index Non-Lendable Fund F" Weighted Average Maturity: 7.53 years; Duration: 5.26 years Is this t...
by jane1
Mon Dec 12, 2016 9:29 am
Forum: Personal Investments
Topic: Playing with some tax numbers
Replies: 13
Views: 1638

Re: Playing with some tax numbers

kaneohe wrote:
rec7 wrote: Does the AGI sound about right at around 17k?
pls tell us how you got 17K by adding 2 (or 3) 9Ks.
Or is 17k taxable income after subtracting standard deduction and personal exemption from AGI?
by jane1
Mon Dec 12, 2016 1:41 am
Forum: Personal Investments
Topic: How to perform the backdoor Roth on the Vanguard website?
Replies: 11
Views: 3626

Re: How to perform the backdoor Roth on the Vanguard website?

Wouldn't you use "Convert to Roth IRA" link?

Maybe it gets to the same screen ultimately...
by jane1
Sun Dec 11, 2016 10:30 pm
Forum: Investing - Theory, News & General
Topic: Roth wake-up call...
Replies: 24
Views: 4598

Re: Roth wake-up call...

OP, lot of us went down similar paths before we went the Bogleheads way. I (actually DH) lost most of our net-worth in the dotcom bust in 2001. Good news is that you realized this at a young age. Large fraction of the population never learns that lesson. I have friends/family who keep trying to beat the market using active trading of individual stocks, options, futures and lose big from time to time but don't give up no matter what I tell/show them.
You have plenty of time to course correct.
by jane1
Sun Dec 11, 2016 10:17 pm
Forum: Personal Investments
Topic: Playing with some tax numbers
Replies: 13
Views: 1638

Re: Playing with some tax numbers

Zero, I would think. Trick question?