Search found 13 matches

by Dee-89
Sat Jul 07, 2018 3:36 pm
Forum: Investing - Theory, News & General
Topic: Tradional IRA conversion to ROTH IRA taxable amount?
Replies: 32
Views: 1898

Re: Tradional IRA conversion to ROTH IRA taxable amount?

I dont qualify for loan forgiveness so I cannot do that. I only filed MFS for the student loan issue but now that you guys pointed out that this is a flaw and I am accepting your advice and will change my status back to MFJ. The problem with my filing status is solved. I will file MFJ for 2018. This post has gone too far away from the topic. The original topic is how much taxes will I pay on a 5K amount - traditional conversion to a Roth IRA. Most of you said the calculation given was fine. Ok! Thanks! NATE: Why do you make conclusion when you dont even know my loan amount. Do you know how much my student loans are, for you to conclude that "i have no plans in sight to pay them off?" Who told you I have no plans to pay them off? I...
by Dee-89
Fri Jul 06, 2018 5:22 pm
Forum: Investing - Theory, News & General
Topic: Tradional IRA conversion to ROTH IRA taxable amount?
Replies: 32
Views: 1898

Re: Tradional IRA conversion to ROTH IRA taxable amount?

Thanks for the helpful information guys! My post was about what I would owe on my tIRA conversion to a Roth IRA, but seems like we are going into other areas. I am on a pay as you earn student loan plan. My monthly student loan is calculated based on my income. When I first started working my income was low and I was not married at the time so my monthly student loan payment was based off my low income. As my income increased so did the amount I owed each month. In December of every year you submit your taxes to the loan company and they re-calculate your loan payments for the next year BASED OFF INCOME. I got married in 2015 and filed MFJ so they calculated my monthly payment based on our combined income, in 2016 i did the same thing and f...
by Dee-89
Fri Jul 06, 2018 3:30 pm
Forum: Investing - Theory, News & General
Topic: Tradional IRA conversion to ROTH IRA taxable amount?
Replies: 32
Views: 1898

Re: Tradional IRA conversion to ROTH IRA taxable amount?

It’s important you first understand if your tIRA contribution was tax-deductible or not. When did you contribute the $5K? Form 8606 will savd you lots if it was a tax-free deduction. Your tax will depend on how much growth has occurred prior to conversion. Was my TIRA contribution tax deductible?? HMMM.. I Dont think so because the 5k sitting in my tIRA is money I moved into the tIRA from a pension plan. I didnt want to complicate the situation with the storyline, but the story is I used to work in a school district that gave us a pension retirement plan. I worked at that job from Mar 2013 until Sept 2014. I resigned and left to move across country and found another job. When I looked at my pension balance it was $5K. The money in that pen...
by Dee-89
Fri Jul 06, 2018 2:48 pm
Forum: Investing - Theory, News & General
Topic: Tradional IRA conversion to ROTH IRA taxable amount?
Replies: 32
Views: 1898

Re: Tradional IRA conversion to ROTH IRA taxable amount?

I was told I had another option instead of waiting until tax season to find out the amount I owe, that I could increase my federal and state witholding from my job via my W2. Is this also an option for me instead of having to pay a big chunk around tax time, they gradually take the money from my check each month?

Im claiming 1 now on my state and federal. Should I claim "0" and input an additional amount in the box where it says "additional donation to IRS" lol?
by Dee-89
Fri Jul 06, 2018 2:36 pm
Forum: Investing - Theory, News & General
Topic: Tradional IRA conversion to ROTH IRA taxable amount?
Replies: 32
Views: 1898

Re: Tradional IRA conversion to ROTH IRA taxable amount?

I file MFS because my student loan payment is cheaper this way. If I do MFJ the loan agency will factor in my husbands income and then I will have to pay a higher loan payment each month. The loan company is the one who told me to file MFS so that I can have a lesser student loan payment each month.

If I do file MFJ will I owe the IRS less for this roth conversion scenario?
by Dee-89
Fri Jul 06, 2018 1:50 pm
Forum: Investing - Theory, News & General
Topic: Tradional IRA conversion to ROTH IRA taxable amount?
Replies: 32
Views: 1898

Re: Tradional IRA conversion to ROTH IRA taxable amount?

Hi All, I want to convert my tradtional IRA to a Roth IRA. How much taxes will I pay at the end of the year on the conversion? My income: 70K Amount I will convert: $5000 Tax bracket: 22% Virginia state income tax: 5.75% (not sure though) Filing status: Married filing separate Can anyone give an estimate of how much ill have to pay the IRS? I was told the amount would be 22% of $5K=($1,100) plus whatever my state income taxes are which I think is 5.75% in Virginia. Does anyone know if this is true and what the amount will be that I have to pay? Do you have any after-tax contributions (basis)? If so, that would reduce your taxes owed but you likely would have go through the IRS Form 8606 to figure out how much. I dont know what after tax co...
by Dee-89
Fri Jul 06, 2018 12:03 pm
Forum: Investing - Theory, News & General
Topic: Tradional IRA conversion to ROTH IRA taxable amount?
Replies: 32
Views: 1898

Tradional IRA conversion to ROTH IRA taxable amount?

Hi All,

I want to convert my tradtional IRA to a Roth IRA. How much taxes will I pay at the end of the year on the conversion?

My income: 70K
Amount I will convert: $5000
Tax bracket: 22%
Virginia state income tax: 5.75% (not sure though)
Filing status: Married filing separate

Can anyone give an estimate of how much ill have to pay the IRS? I was told the amount would be 22% of $5K=($1,100) plus whatever my state income taxes are which I think is 5.75% in Virginia. Does anyone know if this is true and what the amount will be that I have to pay?
by Dee-89
Sat Feb 03, 2018 12:30 pm
Forum: Personal Investments
Topic: Advice for a youngin'
Replies: 7
Views: 1209

Advice for a youngin'

Hi All, I finally opened up a vanguard account to start a roth IRA! :sharebeer :sharebeer :) I have no experience in investing and spent time reading the different sections on Vanguard website about stocks, bonds, mutual funds, diversification and all the subtopics of investing. I am almost 30 years old, married 53 years old and have a government contracting job. As you know gov't contracts last a certain number of years and then you have to go looking for another job or the company may find something else for you. So my career is not super stable. :oops: My current income is 70k, my husband makes anywhere between 35k-45k depending how good of a year he had in his business, his career also is not stable. :oops: Lets leave him out of this eq...
by Dee-89
Sat Jun 24, 2017 11:01 am
Forum: Personal Investments
Topic: Investment path for home (cha-ching)
Replies: 14
Views: 2088

Re: Investment path for home (cha-ching)

Sorry Im not trying to be facetious.... I just thought 12% return seems kind of low as a return on 10k. If you asked me "what ideal amount would be a decent return on a 10k investment for you in stocks?" I would say: ahhhh prob "5-10k is a decent return in 1 year." Most of you would prob think thats nonsense, but thats how the media and people try to portray stocks. As a noobie investor when you hear people say they made money off stocks you think to yourself man they must of made a lot of money. But then you all tell me on a 10k investment you got a 12% return in 2016 on apple, im thinking how did these rich people make money then??? Then I realize 10k is such a small amount Thats why the return is so low. If we used 10...
by Dee-89
Sat Jun 24, 2017 7:54 am
Forum: Personal Investments
Topic: Investment path for home (cha-ching)
Replies: 14
Views: 2088

Re: Investment path for home (cha-ching)

Yes I heard of CDs or money market accounts! For example: If I chose to be very risky and take the (stocks route) how much can stocks make you per year? Say I invest $10,000 in a stock. I dont know any off the top of my head. But lets use a popular one as an example (may not be a wise choice, but for example sake) say I chose the Apple stock. Today it shows as $146. So if I buy $10,000 worth of that, In one year how much profit can I get? Would I make something insignificant like $200 or something like $2000. Lets use last year as a example. If last year I invested 10k in Apple Stock how much money would I have made now? The total return for 2016 was 12.15% so in that year you would have made $1215. The total return for 2015 was -2.8% so i...
by Dee-89
Fri Jun 23, 2017 3:22 pm
Forum: Personal Investments
Topic: Investment path for home (cha-ching)
Replies: 14
Views: 2088

Re: Investment path for home (cha-ching)

Yes I heard of CDs or money market accounts! For example: If I chose to be very risky and take the (stocks route) how much can stocks make you per year? Say I invest $10,000 in a stock. I dont know any off the top of my head. But lets use a popular one as an example (may not be a wise choice, but for example sake) say I chose the Apple stock. Today it shows as $146. So if I buy $10,000 worth of that, In one year how much profit can I get? Would I make something insignificant like $200 or something like $2000. Lets use last year as a example. If last year I invested 10k in Apple Stock how much money would I have made now? I am not familiar with how to calculate a stocks profit per year. Can someone explain it in elementary terms or child ter...
by Dee-89
Fri Jun 23, 2017 2:35 pm
Forum: Personal Investments
Topic: Investment path for home (cha-ching)
Replies: 14
Views: 2088

Re: Investment path for home (cha-ching)

So What I am understanding is if I keep saving 1k then in 5 years I will have enough money to get a house SO no need to invest in anything risky right now.

That was easy. Thanks!
by Dee-89
Thu Jun 22, 2017 4:00 pm
Forum: Personal Investments
Topic: Investment path for home (cha-ching)
Replies: 14
Views: 2088

Investment path for home (cha-ching)

:moneybag Hi All, I am a Female, 28 yrs old and would like to buy a home. I am searching for short term investment options that could make me some money in the next 5 years or so. I would like to have a home by the time I am 35. I do not have enough money for a down payment right now. Facts: Salary: 110k (combined with spouse) Total savings: 10k Amount that we contribute to savings/month: $1,000 Location: DC/VA region Rent for apartment: $1750 Which investment option do you think would give me a quick and fast return? Do you all suggest (index fund, mutual fund, stocks, bonds, etc...etc...) Which of these routes do you think will give me quick money? I am not trying to be a millionaire. I have a goal and the goal is to choose an investment ...