Search found 3796 matches

by FiveK
Sat Feb 17, 2018 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Another Traditional vs. Roth 403b question
Replies: 3
Views: 197

Re: Another Traditional vs. Roth 403b question

I know there have been numerous threads with this question, but I was hoping to get some more personalized advice on my situation. ... Thanks for any guidance! If you need additional information please let me know. It really depends on your marginal rate now vs. what you expect in retirement. Your ...
by FiveK
Sat Feb 17, 2018 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover a Pension into Roth IRA or Traditional IRA?
Replies: 15
Views: 551

Re: Rollover a Pension into Roth IRA or Traditional IRA?

You could easily open a trad. IRA at Vanguard and roll it into that and get the fund you want. Deciding to convert all or some to Roth can be a separate decision later. Find out if it can be a trustee-to-trustee direct transfer, where Vanguard would help you with the paperwork. If you must get a ch...
by FiveK
Sat Feb 17, 2018 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: Another Traditional vs. Roth 403b question
Replies: 3
Views: 197

Re: Another Traditional vs. Roth 403b question

I know there have been numerous threads with this question, but I was hoping to get some more personalized advice on my situation. ... Thanks for any guidance! If you need additional information please let me know. It really depends on your marginal rate now vs. what you expect in retirement. Your ...
by FiveK
Sat Feb 17, 2018 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Quick Tax Question
Replies: 4
Views: 334

Re: Quick Tax Question

Question - should I manually adjust our federal withholding with our employers to mirror the 24% rate that we anticipate paying for CY18? Assuming no other income, standard deduction, etc., the personal finance toolbox spreadsheet suggests the following withholding setup would be reasonable, if app...
by FiveK
Fri Feb 16, 2018 11:51 pm
Forum: Personal Finance (Not Investing)
Topic: Pre- vs post-tax saving: Am I thinking it wrong?
Replies: 12
Views: 815

Re: Pre- vs post-tax saving: Am I thinking it wrong?

EGARCH wrote:
Fri Feb 16, 2018 7:10 pm
Is pre- vs post-tax saving [e.g. roth vs. tIRA] entirely about tax timing, i.e. the tax rate now vs. later?
Pretty much.

See Traditional versus Roth - Bogleheads.

You might particularly appreciate the commutative property of multiplication and Maxing out your retirement accounts portions.
by FiveK
Fri Feb 16, 2018 11:47 pm
Forum: Personal Finance (Not Investing)
Topic: Price of Turbotax
Replies: 3
Views: 461

Re: Price of Turbotax

by FiveK
Fri Feb 16, 2018 11:44 pm
Forum: Personal Finance (Not Investing)
Topic: what is marginal tax rate?
Replies: 14
Views: 872

Re: what is marginal tax rate?

The wiki discusses Marginal Tax Rate in some detail. The definition is "the tax rate that will apply to the next marginal – or incremental – amount of income (or deductions). It is calculated by dividing the amount of additional taxes that will be due (or reduced) by the amount of income involved."...
by FiveK
Fri Feb 16, 2018 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Optimal pre/post-tax saving combination
Replies: 2
Views: 245

Re: Optimal pre/post-tax saving combination

Assume a marginal tax rate pre retirement is X (between zero and the highest tax rate of 37%) and my expected tax rate post retirement is Y. I save Z% of my income today. Moreover, assume an optimization goal so that consumption next period is 1+r times this period's consumption. [Assume r is, for ...
by FiveK
Fri Feb 16, 2018 2:15 pm
Forum: Personal Consumer Issues
Topic: Minnesota lake resorts summer 2018
Replies: 26
Views: 1543

Re: Minnesota lake resorts summer 2018

We've enjoyed Villas at Giants Ridge | Northern MN Resort | Golf & Ski ResortVillas at Giants Ridge. About an hour north of Duluth. Depends on what you want to do while there.
by FiveK
Fri Feb 16, 2018 2:07 pm
Forum: Investing - Help with Personal Investments
Topic: 401k or 457B and Roth or Regular
Replies: 7
Views: 421

Re: 401k or 457B and Roth or Regular

Foodeefish wrote:
Wed Feb 14, 2018 8:16 pm
2. Should I put the monies into a Roth or a Regular plan?
What would your marginal tax saving rate be for traditional contributions now, vs. what you expect for a marginal tax rate on traditional withdrawals later?

See Traditional versus Roth - Bogleheads for more.
by FiveK
Thu Feb 15, 2018 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Sale of stock
Replies: 13
Views: 1151

Re: Sale of stock

Just downloaded both 1099B forms. Neither form indicates the cost basis for the stocks I sold last year. When I spoke to Computershare about the missing cost basis, I was informed that they don't track the cost because both stocks were purchased before 2011. I now have the purchase dates for both s...
by FiveK
Thu Feb 15, 2018 3:59 pm
Forum: Investing - Help with Personal Investments
Topic: Why paying off loans would be better than fully funding 401k?
Replies: 77
Views: 5118

Re: Help with what to do, pay debt, fund 401k, EF? TLH of taxable to fund one of these

What did you think of the advice in Investment Order ? I'm having trouble understanding step 7 vs 8. With debt at 3-4%, is it just about a personal preference as to dumping money into the loan vs. taxable + liquidity? Note that step 7 suggests paying debt with an interest rate "~3% or more above th...
by FiveK
Wed Feb 14, 2018 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Tax refund - IRA or 401k
Replies: 2
Views: 273

Re: Tax refund - IRA or 401k

...would it make more sense to leave the refund money in the checking account and temporarily increase my 401k withholding to match what I would have otherwise put in the IRA. If you are not maxing your 401k to your employers match, then I would go with that approach. +1 If you are past the match, ...
by FiveK
Wed Feb 14, 2018 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: How to Calculate (Estimated) Taxes for ROTH IRA Conversion?
Replies: 8
Views: 772

Re: How to Calculate (Estimated) Taxes for ROTH IRA Conversion?

rosemary11 wrote:
Wed Feb 14, 2018 3:06 pm
projected tax bracket at age 70 is 22 percent
Does the projection depend on how much of current traditional holdings you convert to Roth before age 70? I.e., what rate will you pay at ages 70 and 80 if you convert 0% or 100% before age 70?
by FiveK
Wed Feb 14, 2018 11:55 am
Forum: Investing - Help with Personal Investments
Topic: When to pay off debt instead of invest?
Replies: 27
Views: 1195

Re: When to pay off debt instead of invest?

I guess my question is, what is the % threshold with which you would pay off debt versus invest in the market? ~5%. Given that, I'd go for option #1, unless your 20% is a separable investment with lower expected return than the mortgage interest. Of course, that's a guess/opinion, just the same as ...
by FiveK
Wed Feb 14, 2018 11:48 am
Forum: Personal Finance (Not Investing)
Topic: How to Calculate (Estimated) Taxes for ROTH IRA Conversion?
Replies: 8
Views: 772

Re: How to Calculate (Estimated) Taxes for ROTH IRA Conversion?

Graphical version of Chip's numbers below. The SS will be taxed at most on 85% of what you receive - that (and actual vs. assumed ages) may account for the difference in numbers vs. the OP's $61K. See the personal finance toolbox spreadsheet if one wants to generate a graph using different assumptio...
by FiveK
Wed Feb 14, 2018 12:00 am
Forum: Investing - Help with Personal Investments
Topic: 401K to Roth 401K
Replies: 35
Views: 2294

Re: 401K to Roth 401K

I have similar question. Let say my 401K is about $1M my tax bracket currently at 0% I have another 10 years until 60years old. How much can I convert from regular 401K to Roth 401K without paying any tax? Depends on specifics of your other income. You could do a dummy return using whatever tax sof...
by FiveK
Tue Feb 13, 2018 12:10 am
Forum: Personal Finance (Not Investing)
Topic: Schedule B Interest Question
Replies: 14
Views: 951

Re: Schedule B Interest Question

Epsilon Delta wrote:
Mon Feb 12, 2018 11:50 pm
FiveK wrote:
Mon Feb 12, 2018 9:48 pm
$300, because Report on line 1 all of your taxable interest.
I don't think that's determinative.
Agreed, it's not. But it is the simplest correct way.
by FiveK
Mon Feb 12, 2018 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: 401K to Roth 401K
Replies: 35
Views: 2294

Re: 401K to Roth 401K

So let me just summarizes the statement above to make sure I got it. Because most of our retirement money will be in Roth accounts and we obviously would not pay taxes our marginal tax rate would effectively be 0%. Therefore, having some taxable withdrawls like those from a 401K would not hurt sinc...
by FiveK
Mon Feb 12, 2018 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Age 25 - New to Investing, Looking for Advice
Replies: 22
Views: 1248

Re: Age 25 - New to Investing, Looking for Advice

...the target funds (while low cost) are still higher cost than low-cost index funds and that they are geared towards the "average" investor while obviously not taking personal situations and comfort levels into account. I'm in no position to agree or disagree with this but any thoughts on that? Ca...
by FiveK
Mon Feb 12, 2018 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: Age 25 - New to Investing, Looking for Advice
Replies: 22
Views: 1248

Re: Age 25 - New to Investing, Looking for Advice

See Investment Order for some general advice that may serve well.
by FiveK
Mon Feb 12, 2018 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule B Interest Question
Replies: 14
Views: 951

Re: Schedule B Interest Question

Maybe I'm being dense, but I don't think anyone's addressed my question. Let's say Box 1 contains a value of $200, and Box 3 contains a value of $100. Do I make a single $300 entry on Schedule B for the payer, or do I make one $100 entry and one $200 entry, or does it not matter? $300, because Repo...
by FiveK
Mon Feb 12, 2018 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: 401K to Roth 401K
Replies: 35
Views: 2294

Re: 401K to Roth 401K

Do you have a large, future retirement income source like a pension? If not, I would not do the IRR. In fact, unless you are in a very low tax bracket, I highly doubt moving to a Roth 401k is a good option for her future contributions. No pension (we are in our young 20s so hard to say with so many...
by FiveK
Mon Feb 12, 2018 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: Best course of action to withdraw Roth IRA contribution?
Replies: 6
Views: 509

Re: Best course of action to withdraw Roth IRA contribution?

...earning a grand total of $3,006.85 net pay (according to my pay stub, as I have yet to look at my W-2.) What do you mean by "net" pay? The amount in W-2 box 1 (sometimes called "W-2 income" on pay stubs) is what will matter. Since you have a pay stub, it is gross pay that you need to look at. Th...
by FiveK
Mon Feb 12, 2018 6:46 pm
Forum: Investing - Help with Personal Investments
Topic: Why paying off loans would be better than fully funding 401k?
Replies: 77
Views: 5118

Re: Help with what to do, pay debt, fund 401k, EF? TLH of taxable to fund one of these

ChinchillaWhiplash wrote:
Mon Feb 12, 2018 6:19 pm
Any specific advice on this?
What did you think of the advice in Investment Order?
by FiveK
Mon Feb 12, 2018 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Pay bump, time to switch Roth to Traditional?
Replies: 14
Views: 1124

Re: Pay bump, time to switch Roth to Traditional?

State taxes in Utah (5%) and Michigan (4.25%) are essentially equal. Michigan used to exempt $40,000 of retirement income, which favors traditional 401k, at least up to a point. I did not research Michigan taxes to see if this is still true -- the OP ought to study MI and UT tax treatment of withdr...
by FiveK
Mon Feb 12, 2018 1:46 pm
Forum: Investing - Theory, News & General
Topic: Help me figure out my federal / state taxes...
Replies: 5
Views: 423

Re: Help me figure out my federal / state taxes...

Does anyone have a paycheck calculator they've found to be very helpful? Also, haven't seen the new 2018 tax adjustments yet... Is this still in the works? For 2018 federal, the personal finance toolbox spreadsheet seems accurate. Great link. I'll have to mess around with it later. Seems complex at...
by FiveK
Mon Feb 12, 2018 1:31 pm
Forum: Investing - Theory, News & General
Topic: Help me figure out my federal / state taxes...
Replies: 5
Views: 423

Re: Help me figure out my federal / state taxes...

Marjimmy wrote:
Mon Feb 12, 2018 11:31 am
Does anyone have a paycheck calculator they've found to be very helpful? Also, haven't seen the new 2018 tax adjustments yet... Is this still in the works?
For 2018 federal, the personal finance toolbox spreadsheet seems accurate.
by FiveK
Mon Feb 12, 2018 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Determining Correct Federal Income Tax Liability/Withholding
Replies: 8
Views: 730

Re: Determining Correct Federal Income Tax Liability/Withholding

If any of that is NOT true, then you can estimate your taxes (as you’ve done), calculate how much withholding is needed and use publication 15 to calculate the allowances you need to claim. Pub 15 was not written for this purpose but the data is in there. Note that using single status for withholdi...
by FiveK
Mon Feb 12, 2018 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: Best course of action to withdraw Roth IRA contribution?
Replies: 6
Views: 509

Re: Best course of action to withdraw Roth IRA contribution?

SpecimenTwo wrote:
Mon Feb 12, 2018 12:21 am
...earning a grand total of $3,006.85 net pay (according to my pay stub, as I have yet to look at my W-2.)
What do you mean by "net" pay?

The amount in W-2 box 1 (sometimes called "W-2 income" on pay stubs) is what will matter.
by FiveK
Mon Feb 12, 2018 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Pay bump, time to switch Roth to Traditional?
Replies: 14
Views: 1124

Re: Pay bump, time to switch Roth to Traditional?

State taxes in Utah (5%) and Michigan (4.25%) are essentially equal. With the incomes listed, traditional is likely your best choice for the 401k. See Traditional versus Roth - Bogleheads . Other comments in blue below. My old employer 401k and IRA is in Vanguard. How should I rollover that account?...
by FiveK
Sun Feb 11, 2018 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: Determining Correct Federal Income Tax Liability/Withholding
Replies: 8
Views: 730

Re: Determining Correct Federal Income Tax Liability/Withholding

12,999 - Total tax liability for 2018 ... Am I accurate in determining this number?? Yes. 9,500 - Looking at Feb 1 paystubs for DW and me (with new plan being taken into account by payroll), we would be on pace to only have 9,500 withheld through payroll. So, we are on pace to be 3,449 short!? Anyt...
by FiveK
Sun Feb 11, 2018 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: HSA section in Turbotax online version & Form-8889
Replies: 19
Views: 988

Re: HSA section in Turbotax online version & Form-8889

Does TurboTax still have the input screen mentioned in HSA premium pass-through and form 8889 - TurboTax Support ? Thanks for sharing this link. Now I am even more confused - it now seems possible that this is the case. I do have a "DD" in my box 12 with a sizable figure (which seems like what the ...
by FiveK
Sun Feb 11, 2018 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes Withheld Different For Each Paycheck?
Replies: 10
Views: 837

Re: Taxes Withheld Different For Each Paycheck?

You could check the new withholding schedule - Notice 1036 (Rev. January 2018) - to calculate what you think it ought to be.

Or try Paycheck Calculators | Online Payroll Calculators | Paycheck City or the personal finance toolbox spreadsheet, both of which have 2018 withholding programmed.
by FiveK
Sun Feb 11, 2018 7:33 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 taxes and AMT
Replies: 13
Views: 1458

Re: 2018 taxes and AMT

What is "phase-out" versus "exemption"? The exemption is an amount one deducts from income to get taxable income. Think of the $4,050 personal exemption one uses for "normal" taxes. The phase-out is when that exemption amount goes to $0. It doesn't go to $0 all at once, but decreases linearly over ...
by FiveK
Sun Feb 11, 2018 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: HSA section in Turbotax online version & Form-8889
Replies: 19
Views: 988

Re: HSA section in Turbotax online version & Form-8889

Thanks, then what goes on Form 8889 line 2? Contributions made outside of payroll deductions? Yes. As it says on Form 8889 line 2, "HSA contributions you made for 2017 (or those made on your behalf), including those made from January 1, 2018, through April 17, 2018, that were for 2017. Do not inclu...
by FiveK
Sun Feb 11, 2018 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: What is this please, trying to help a friend
Replies: 8
Views: 861

Re: What is this please, trying to help a friend

Fidelity Freedom® 2050 Fund or Fidelity Freedom® Index 2050 Fund?
by FiveK
Sun Feb 11, 2018 6:17 pm
Forum: Investing - Theory, News & General
Topic: Help new boglehead understand expense ratios
Replies: 11
Views: 772

Re: Help new boglehead understand expense ratios

One should also compare apples vs. apples. E.g., one might compare EKJAX (large growth) with VIGAX (large growth), instead of using VTSAX (total US market). As it happens, one would find results similar to what livesoft found using VTSAX: which fund is "better" depends on the time frame one chooses....
by FiveK
Sun Feb 11, 2018 5:56 pm
Forum: Personal Consumer Issues
Topic: Should I Do My Own Taxes Or Pay A CPA $500?
Replies: 64
Views: 5495

Re: Should I Do My Own Taxes Or Pay A CPA $500?

obgraham wrote:
Sun Feb 11, 2018 4:54 pm
Odd. I have all my tax forms from Vanguard. Put the data into TurdoTax, filed the return. All done.
Vanguard says:
Most forms for mutual fund accounts are available online now. You can expect your forms for your brokerage accounts in mid-February.
by FiveK
Sun Feb 11, 2018 4:21 pm
Forum: Personal Consumer Issues
Topic: Should I Do My Own Taxes Or Pay A CPA $500?
Replies: 64
Views: 5495

Re: Should I Do My Own Taxes Or Pay A CPA $500?

Reubin wrote:
Sun Feb 11, 2018 3:44 pm
I guess that the tax forms haven't come out as of yet. Can I just put the project on hold until I get them?
Yes.
by FiveK
Sun Feb 11, 2018 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: 401k pre-tax, Roth, or a blend?
Replies: 18
Views: 1146

Re: 401k pre-tax, Roth, or a blend?

Objectively, if you were to compare pre-tax vehicles or Roths... ...the best way to do so is using marginal tax saving rate now vs. expected marginal tax rate on withdrawals later. Unqualified statements that "traditional is best" or "Roth is best" are easily disproved with realistic counterexample...
by FiveK
Sun Feb 11, 2018 4:08 pm
Forum: Investing - Help with Personal Investments
Topic: Why paying off loans would be better than fully funding 401k?
Replies: 77
Views: 5118

Re: Help with what to do, pay debt, fund 401k, EF? TLH of taxable to fund one of these

See also Investment Order, which should reinforce previous suggestions to increase the e-fund and pay down the high interest debt ASAP.
by FiveK
Sun Feb 11, 2018 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: Help - why do I owe so much in taxes this year
Replies: 17
Views: 3231

Re: Help - why do I owe so much in taxes this year

Probably not much you can do about the penalty other than paying ASAP to reduce the time over which the interest is being applied. Going forward, you could put you expected 2018 situation into the personal finance toolbox spreadsheet and adjust the withholding in cells G59:H60 to drive your expected...
by FiveK
Sun Feb 11, 2018 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 taxes and AMT
Replies: 13
Views: 1458

Re: 2018 taxes and AMT

If I am taking the standard deduction in 2018, does that mean the AMT will no longer apply to me? Not necessarily, but as others have noted the AMT will apply to far fewer people in 2018 than in 2017. The personal finance toolbox spreadsheet has a decent 2018 tax estimation, including whether the A...
by FiveK
Sun Feb 11, 2018 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Planning and Pre or Post Tax
Replies: 6
Views: 604

Re: Retirement Planning and Pre or Post Tax

...the expected tax off my total 401K amount.... As others have noted, determining the "expected" tax may not be straightforward. One can make a quick 'n' dirty estimate using rows 196-207 on the 'Misc. calcs' tab of the personal finance toolbox spreadsheet. Make the appropriate entries, copy the f...
by FiveK
Sun Feb 11, 2018 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a way to figure 2018 taxes?
Replies: 18
Views: 2156

Re: Is there a way to figure 2018 taxes?

Is there a calculator out there to help us figure our 2018 taxes that accounts for tax exempt interest, social security, capital gains, etc. and that is current under the new 2018 tax code? I have looked through this section and have seen some earlier suggestions to use TaxAct, but today their webs...
by FiveK
Sun Feb 11, 2018 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: 401k pre-tax, Roth, or a blend?
Replies: 18
Views: 1146

Re: 401k pre-tax, Roth, or a blend?

youngpleb wrote:
Sun Feb 11, 2018 3:04 pm
...make that remaining five thousand or so bit pre-tax and then do Roth contributions once I slide down into the 12% tax bracket?
Yes, that is a fine plan.
by FiveK
Sat Feb 10, 2018 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: HSA: should I avoid contributing through payroll?
Replies: 8
Views: 938

Re: HSA: should I avoid contributing through payroll?

Interesting... I filled out schedule SE and found that contributing an extra $1000 through payroll tax deduction increased my SE tax by only $97-- based on my last post, I was assuming it would be $124. Not quite sure where the difference comes from... line 4a (the fact that you pay tax on only 92....
by FiveK
Sat Feb 10, 2018 7:06 pm
Forum: Investing - Theory, News & General
Topic: A glidepath formula
Replies: 15
Views: 1763

Re: A glidepath formula

Comments? Advice? Like I said, I'm conscious that I'm over thinking it and that using a formula implies a precision that is illusory. I'm not using an existing commercial glidepath because my portfolio is spread across providers, all of whom differ. See Equity Glide Paths — Bogleheads versus Target...