Search found 2582 matches

by FiveK
Fri Aug 18, 2017 11:08 pm
Forum: Investing - Help with Personal Investments
Topic: Accumulation phase: Roth vs Traditional IRA?
Replies: 13
Views: 1068

Re: Accumulation phase: Roth vs Traditional IRA?

I was reading that Roth IRA's make more sense if you expect to be in a lower tax bracket when you retire. This is incorrect as written. Ok if it is just a typo - see the traditional vs. Roth wiki if otherwise. Does converting the traditional IRA to a Roth make sense given that the tax deductions fr...
by FiveK
Fri Aug 18, 2017 9:50 pm
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 74
Views: 6499

Re: How I use I-ORP, and who shouldn't

Your link takes me to a thread discussing the omission of PEP, AMT, NIIT. These are far away from my world. Do any of these apply to you? If you don't know, they probably do not. They would if we were to convert a large enough fraction of our traditional accounts in few enough years. Also, those ar...
by FiveK
Fri Aug 18, 2017 5:40 pm
Forum: Investing - Help with Personal Investments
Topic: Contributing to tax deferred + Taxability of SS
Replies: 22
Views: 1223

Re: Contributing to tax deferred + Taxability of SS

Another partially unrelated question. I could probably figure this out with online SS Calculators. Does it make a big difference in my ultimate social security payments if I scale back over the next 10-12 years and make 50-60k vs maybe 120k a year or more? Most of my 30 work history has been over t...
by FiveK
Fri Aug 18, 2017 5:22 pm
Forum: Investing - Help with Personal Investments
Topic: Contributing to tax deferred + Taxability of SS
Replies: 22
Views: 1223

Re: Contributing to tax deferred + Taxability of SS

JBTX wrote:
Fri Aug 18, 2017 4:54 pm
Thanks a lot I'll give the model a try.
I fixed a typo: cell H8 can be 70, not 80.
by FiveK
Fri Aug 18, 2017 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Contributing to tax deferred + Taxability of SS
Replies: 22
Views: 1223

Re: Contributing to tax deferred + Taxability of SS

Would you agree that in our case, given the limited information given - that further traditional contributions are not advantageous for us vs. Roth, and may actually be disadvantageous? Much depends on your plans for the next ~16 years (from current age 54 to age 70). If you plan to work full time,...
by FiveK
Fri Aug 18, 2017 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Contributing to tax deferred + Taxability of SS
Replies: 22
Views: 1223

Re: Contributing to tax deferred + Taxability of SS

If you are at all spreadsheet-adept, I encourage looking at that spreadsheet , perhaps along with the IRS forms, to see how things work. Yeah I am pretty good with spreadsheets. I downloaded that file last night, but only gave it a glance. The problem is I am not sure what it is doing and how it re...
by FiveK
Fri Aug 18, 2017 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Contributing to tax deferred + Taxability of SS
Replies: 22
Views: 1223

Re: Contributing to tax deferred + Taxability of SS

As to taxability of social security - I was using this online calculator: https://www.fool.com/retirement/social-security-how-much-benefits-taxed.aspx Not sure how that works from a quick glance. Some folks prefer web sites, others prefer spreadsheets, etc. I like to see the calculations and assump...
by FiveK
Fri Aug 18, 2017 12:47 pm
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 74
Views: 6499

Re: How I use I-ORP, and who shouldn't

I cannot speak for others but when we check the IOPR calcs with tax software we are really close. That results in us seeing Roth conversions as being a good thing in a few ways even at higher rates in our case. Well done to do a double check! In that case you are likely fine. I'd be concerned about...
by FiveK
Fri Aug 18, 2017 11:35 am
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 74
Views: 6499

Re: How I use I-ORP, and who shouldn't

Thanks for the comments. Please define "too aggressive." Does that mean not maximizing your income or estate, or just beyond your personal comfort level. I ask because the program notes caution that novices may not be comfortable with the recommended level of Roth conversions. Others may have a dif...
by FiveK
Fri Aug 18, 2017 10:26 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401K vs Traditional 401K
Replies: 25
Views: 1290

Re: Roth 401K vs Traditional 401K

...what i understand though is it's best to first go into a traditional IRA, then into a Roth, thus keeping the tax implication as low as possible. sound right? No. Unless you are implying that the 403b -> Roth IRA would happen all in one year, vs. 403b -> tIRA in one year then tIRA -> Roth IRA spr...
by FiveK
Fri Aug 18, 2017 10:18 am
Forum: Investing - Help with Personal Investments
Topic: Should I sell and reinvest Roth IRA funds in SEP-IRA?
Replies: 7
Views: 428

Re: Should I sell and reinvest Roth IRA funds in SEP-IRA?

That is what they were referring to, but if the SEP-IRA is subject to taxes down the road, wouldn't the Roth IRA be the one to prioritize? The money that goes into a Roth IRA is subject to taxes now. Thus "which is better?" depends on the tax rate you pay now, vs. the tax rate you would pay down th...
by FiveK
Fri Aug 18, 2017 12:02 am
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 61
Views: 7830

Re: 30,000 in Checking Account

GridironGems wrote:
Thu Aug 17, 2017 10:22 pm
I can have a Roth IRA and a Roth 457 both correct?
Yes. Why do you prefer a Roth 457 over a traditional 457? See Traditional versus Roth - Bogleheads.
by FiveK
Thu Aug 17, 2017 10:53 pm
Forum: Investing - Help with Personal Investments
Topic: Contributing to tax deferred + Taxability of SS
Replies: 22
Views: 1223

Re: Contributing to tax deferred as you approach retirement

Then I tried to calculate the SS taxability impact, and I'm totally confused on that. I looked at some online calculators, looked at the wiki, and toyed with "the Hump" and I just don't fundamentally understand how the details work - and I can't reconcile what the explanations are telling me. I gue...
by FiveK
Thu Aug 17, 2017 10:12 pm
Forum: Investing - Help with Personal Investments
Topic: Easy Question - Opening Roth outside of Employer Partial Funds Already Contributed
Replies: 4
Views: 259

Re: Easy Question - Opening Roth outside of Employer Partial Funds Already Contributed

kilkoyne wrote:
Thu Aug 17, 2017 11:06 am
I currently have $600 in my account this year so that leaves me with $5100 for this year to add.
As the link in mhalley's post notes, the IRA contribution limit is either $5500 or $6500. Not aware of a $5700 limit amount...?
by FiveK
Thu Aug 17, 2017 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: Contributing to tax deferred + Taxability of SS
Replies: 22
Views: 1223

Re: Contributing to tax deferred as you approach retirement

How did you come up with this? If you assume $1 million tRA at 3.65% that's 36500. I'm guessing you backed out std deuction and 2 exemptions for about $20800 which equals 15700 in taxable income? Pretty much. $18,650 is the top of the 10% bracket. See the tables in cells 'Calculations'!T1:U28 in th...
by FiveK
Thu Aug 17, 2017 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: Contributing to tax deferred + Taxability of SS
Replies: 22
Views: 1223

Re: Contributing to tax deferred as you approach retirement

With those amounts and assuming no other income, you would be either barely into the 15% bracket or at the top of the 10%, depending on the exact amount of tIRA withdrawals. If your actual income now incurs a 25% or higher marginal tax rate, you could save the 10-15% difference between contribution...
by FiveK
Thu Aug 17, 2017 2:56 pm
Forum: Investing - Help with Personal Investments
Topic: How to best invest ESOP distribution
Replies: 1
Views: 130

Re: How to best invest ESOP distribution

Quick rules of thumb: - Use IRA if you have no need for a Backdoor Roth IRA and the IRA fees are lower than the 401k fees. - Use 401k if you do want to use backdoor Roths and the 401k fees are the same or lower than IRA fees. Need a sharper pencil if you want backdoor Roths but the 401k fees are high.
by FiveK
Thu Aug 17, 2017 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes between states (income allocation and IRA, HSA, solo 401k allocation)
Replies: 3
Views: 299

Re: Taxes between states (income allocation and IRA, HSA, solo 401k allocation)

For simplicity's sake I'm inclined to say we were NY residents until either 6/30 or 7/31 and became AR residents the following day 7/1 or 8/1, but I'm concerned that the states may not agree with these approximations. Given the facts above, when would you say each state would consider us to have of...
by FiveK
Thu Aug 17, 2017 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Contributing to tax deferred + Taxability of SS
Replies: 22
Views: 1223

Re: Contributing to tax deferred as you approach retirement

I'm 54, and we (wife 48, and two teenage kids) have close to 2 million in various retirement vehicles. Overall 60/30/10 stocks bonds and cash. Roughly 50/50 tIRA and Roth. Then add in another $150k in non retirement savings, in ibonds and cash. ... I'm just asking the question has anybody thought o...
by FiveK
Thu Aug 17, 2017 1:48 pm
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 74
Views: 6499

Re: How I use I-ORP, and who shouldn't

WhiteMaxima wrote:
Thu Aug 17, 2017 12:24 pm
Remember, 1.5m Roth is worth more than 2.0m 401k.
True, if it costs more than 25% to get the money out of the 401k. Not true if it costs less.
by FiveK
Thu Aug 17, 2017 1:41 pm
Forum: Investing - Theory, News & General
Topic: Roth vs Traditional
Replies: 38
Views: 2863

Re: Roth vs Traditional

It can mean the difference between having a tax bill in the thousands of dollars, even the tens of thousands, or paying NO TAXES for a given amount. Thanks - when you have a chance, would you mind elaborating on the hypothetical scenario that putting all in Roth now will result in lower taxes as co...
by FiveK
Thu Aug 17, 2017 1:33 am
Forum: Investing - Help with Personal Investments
Topic: Looking for advise on Roth IRA [impact of contributing when ineligible]
Replies: 9
Views: 569

Re: Looking for advise on Roth IRA [impact of contributing when ineligible]

The 30 days is from the IRS page that I linked: . Is there a minimum waiting period to reconvert the money to a Roth IRA following a recharacterization? Yes, if you recharacterize all or part of a rollover or conversion to a Roth IRA, you cannot reconvert the amount recharacterized to the same or a...
by FiveK
Thu Aug 17, 2017 12:04 am
Forum: Investing - Help with Personal Investments
Topic: Startup Investing from IRA Accounts (e.g. Roth)
Replies: 1
Views: 224

Re: Startup Investing from IRA Accounts (e.g. Roth)

You might start with IRA FAQs - Investments and links therein.

In general the answer to "Is it technically possible to invest in startups with money in my Roth IRA?" is yes. You may need a self-directed IRA, and (as it seems you are aware) avoid "Prohibited Transactions".
by FiveK
Wed Aug 16, 2017 7:49 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie to investing
Replies: 2
Views: 183

Re: Newbie to investing

1. Is this a good breakdown of finances? Most people pay for groceries, rent, etc. If you aren't, how much longer do you expect that will continue? Is 20% going to my Roth 401(k)? Should it be more? If you expect to be making $100K+ within 5-10 years, Roth now is OK. Otherwise, consider a tradition...
by FiveK
Wed Aug 16, 2017 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Exit Strategy from Northwest Mutual Advisor
Replies: 8
Views: 832

Re: Exit Strategy from Northwest Mutual Advisor

Big question is how the heck do we get out of this pickle without taking a 7k bath on the Life policies? Don't know if you can. The more insurance-savvy may have suggestions. But even if you can't, the phrase "don't throw good money after bad" comes to mind. Might be wisest to cut your losses as mu...
by FiveK
Wed Aug 16, 2017 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Should I sell and reinvest Roth IRA funds in SEP-IRA?
Replies: 7
Views: 428

Re: Should I sell and reinvest Roth IRA funds in SEP-IRA?

This is a terrible idea. A Roth IRA is tax free. You never pay taxes on any of the earnings. You have already paid taxes on the principle. People pay taxes on purpose just to get IRA money into a Roth IRA. In your SEP, all growth and dividends will eventually be taxable at your marginal rate. Gotch...
by FiveK
Tue Aug 15, 2017 11:37 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Audit 2015 1099 MISC
Replies: 11
Views: 1406

Re: IRS Audit 2015 1099 MISC

Jam_ica wrote:
Tue Aug 15, 2017 12:54 pm
What type of write offs can I include with the 1099 from coaching to bring the $1500 I made lower?
Looking line by line at the Expenses portion of 2016 Form 1040 (Schedule C) - f1040sc.pdf may jog your memory.
by FiveK
Tue Aug 15, 2017 1:33 pm
Forum: Investing - Theory, News & General
Topic: Roth vs Traditional
Replies: 38
Views: 2863

Re: Roth vs Traditional

We have both been maxing out pre-tax and have about $190k combined in 401ks (99% pre-tax). I also have about $140k in an inherited IRA with RMDs over my expected life, $72k in her taxable funds, $23k in her traditional IRA, and $17k in my Roth IRA. We both make about $80k annually and live in MA. B...
by FiveK
Tue Aug 15, 2017 12:00 am
Forum: Personal Finance (Not Investing)
Topic: Schedule A Tax Modeling for 2017 >age65
Replies: 9
Views: 745

Re: Schedule A Tax Modeling for 2017 >age65

Ace1 wrote:
Mon Aug 14, 2017 9:42 pm
...there is a form in the fedforms list called
What-if worksheet.
Nice - thanks for mentioning!

Note that if the What-If Worksheet is not listed in the list of forms you have to generate it by asking for it.
by FiveK
Mon Aug 14, 2017 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA
Replies: 12
Views: 1241

Re: Backdoor Roth IRA

Rayd8tr wrote:
Mon Aug 14, 2017 8:15 pm
My wife and I are also trying to figure out the best option for a taxable account....
Seems you have a fine appreciation of the pros and cons - good luck!
by FiveK
Mon Aug 14, 2017 7:39 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA
Replies: 12
Views: 1241

Re: Backdoor Roth IRA

I'm contemplating an independently directed account option with my 401k and putting 100% into either VFIFX or Life Strategy Growth Fund. I consider myself a novice and appreciate any input you guys have. Those are fine choices even for someone well past novice stage, and are very reasonable for you...
by FiveK
Mon Aug 14, 2017 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Contributions to a non-deductible tIRA vs. taxable
Replies: 18
Views: 917

Re: Contributions to a non-deductible tIRA vs. taxable

So i can't make deductible, or Roth, or even back-door Roth contributions. I don't understand the negatives of putting $ into a non-deductible IRA vs a taxable brokerage account. When you withdraw years from now, - the non-deductible IRA gains will be taxed as ordinary income - the taxable account ...
by FiveK
Mon Aug 14, 2017 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule A Tax Modeling for 2017 >age65
Replies: 9
Views: 745

Re: Schedule A Tax Modeling for 2017 >age65

Often we give/take advice to do tax planning using the previous year's tax software. I want to model the effects of some much larger than usual 2017 potential deductions on Schedule A. ... Any alternative suggestions? Thank you. The tax calculations in Tools and calculators - Personal_finance_toolb...
by FiveK
Mon Aug 14, 2017 11:06 am
Forum: Investing - Theory, News & General
Topic: How I use I-ORP, and who shouldn't
Replies: 74
Views: 6499

Re: How I use I-ORP, and who shouldn't

In my case, having a pension that starts pre-60 will keep me in the 25 percent bracket anyway. This seems to negate the utility of Roth conversions. I also haven't been able to see the value in my spouse postponing her own SS past 62, doing so would require a withdrawal from tax deferred and a draw...
by FiveK
Sun Aug 13, 2017 10:06 pm
Forum: Investing - Theory, News & General
Topic: "Honesty like that is rare!"
Replies: 47
Views: 6954

Re: "Honesty like that is rare!"

That being said, 10+ years ago, I read a quick summary on 401k psychology research that showed that provided people too many 401k plan choices (which you think would be amazing and awesome, right? Everybody loves choice!) caused worse results or confusion for employees as there was analysis paralys...
by FiveK
Sun Aug 13, 2017 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA
Replies: 12
Views: 1241

Re: Backdoor Roth IRA

I am seriously thinking about either putting my entire 401k into VINIX or doing an independently directed account option I have and choose VIFIX and put it all in that instead. I'm guessing VIFIX is a typo, but more to the point: your overall asset allocation target deserves some consideration when...
by FiveK
Sun Aug 13, 2017 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Check my understanding of Roth contribution eligibility
Replies: 10
Views: 867

Re: Check my understanding of Roth contribution eligibility

This assumes that "[w]e are self-employed and contribute the maximum to SEPs each year" implies only "employer" contributions are maximized, not "employer + employee" contributions - correct? Correct. There are no employEE contributions allowed to a SEP IRA. Any personal contribution is not an empl...
by FiveK
Sun Aug 13, 2017 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: 403b help
Replies: 7
Views: 493

Re: 403b help

Although I would love to put a little more away in a tax advantaged account, my timeline and vendor options don't make sense. When I relocate, I will likely rollover my existing 403b since the fund fees at .7 are by far the highest of anything i have. I will keep reading. Thank you so much. Perhaps...
by FiveK
Sat Aug 12, 2017 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: IRA withdrawal tax aConsider couple on Medicare and over 70.5 years of age. They must take RMDsnd Medicare implications
Replies: 13
Views: 1116

Re: IRA withdrawal tax aConsider couple on Medicare and over 70.5 years of age. They must take RMDsnd Medicare implicat

TaxCaster might or might not be accurate for high incomes - don't know. It is not very good for low incomes when the saver's credit, etc., are significant. Using full versions of H&RBlock, TurboTax, etc., will work (except for the Medicare premium bumps). Assuming part-time job income = $12K pension...
by FiveK
Sat Aug 12, 2017 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: 403b help
Replies: 7
Views: 493

Re: 403b help

1. It is extremely likely that I will be relocating next summer. I can job hunt in Ohio. Should I still start a new 403b? 2. i know nothing about my provider choices. Anyone have an opinion? 1. Yes (probably - see below). 2. We need a bit more information. See Investment Planning - Bogleheads.org ,...
by FiveK
Sat Aug 12, 2017 8:50 pm
Forum: Investing - Help with Personal Investments
Topic: TSP only vs TSP and Vanguard IRA
Replies: 19
Views: 1088

Re: TSP only vs TSP and Vanguard IRA

Hmm... right you are per IRS. That's unfortunate though because $75k is great money in some areas, and barely enough in others. If I were ever elected to Congress, I'd be one of the most pro-retirement savings legislators out there and try to change these rules to encourage retirement planning and ...
by FiveK
Sat Aug 12, 2017 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Do I have an HDHP?
Replies: 8
Views: 789

Re: Do I have an HDHP?

...it's extremely difficult to tell just by reading the hundreds of pages of plan and IRS documentation. Is there a sure-fire way to see if the IRS will classify it as an HDHP? Surely there's an IRS form or something I can look at to get a reliable answer? The few pages in 2016 Publication 969 cove...
by FiveK
Sat Aug 12, 2017 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: TSP only vs TSP and Vanguard IRA
Replies: 19
Views: 1088

Re: Why max TSP before outside IRA?

My question is, why is it better to max the TSP at $18,000 before starting on the $5,500 IRA limit? Filling the IRA limit after getting a 401k match is often correct, because the account fees in the IRA are lower than in the 401k. Because the TSP accounts fees are so low, it can be better to fill t...
by FiveK
Sat Aug 12, 2017 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: Check my understanding of Roth contribution eligibility
Replies: 10
Views: 867

Re: Check my understanding of Roth contribution eligibility

In the OP's case, they are the employers, so the contributions to the SEP IRAs are completely employer funds, not personal funds. That means they can still contribute to their personal IRAs. Ok, thanks. This assumes that "[w]e are self-employed and contribute the maximum to SEPs each year" implies ...
by FiveK
Sat Aug 12, 2017 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401K vs Traditional 401K
Replies: 25
Views: 1290

Re: Roth 401K vs Traditional 401K

If your income is about to go up a lot and stay there for decades, using Roth 401k in the 25% bracket might be a good idea. Why is Roth better at 25% bracket? What if my rate is lower at retirement (though really hard to know)? Thanks! Need to look at retiredjg's suggestion in context. Retiredjg's ...