Search found 2850 matches

by FiveK
Mon Oct 16, 2017 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 32
Views: 3340

Re: Tax Bracket in Retirement

I suppose I'm confusing terms. If my income touches the 33% bracket I was supposing the "cumulative" or "effective" tax rate would be in the upper 20's. ... So, I wonder if its a matter of finding the right mix of Traditional contributions to keep the marginal rate under 30% and putting the rest in...
by FiveK
Mon Oct 16, 2017 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 32
Views: 3340

Re: Tax Bracket in Retirement

I suppose I'm confusing terms. If my income touches the 33% bracket I was supposing the "cumulative" or "effective" tax rate would be in the upper 20's. ... So, I wonder if its a matter of finding the right mix of Traditional contributions to keep the marginal rate under 30% and putting the rest in...
by FiveK
Mon Oct 16, 2017 1:13 am
Forum: Personal Finance (Not Investing)
Topic: Health Insurance: HDHP vs PPO with 2 small kids
Replies: 7
Views: 496

Re: Health Insurance: HDHP vs PPO with 2 small kids

B. I am wondering if the savings are worth the sticker shock of the doctor visits till the deductible is met. In our experience, yes. YMMV. See also the 'HDHP Analysis' tab in Tools and calculators - Personal_finance_toolbox - Bogleheads to help quantify the tax advantage, etc. I plugged in my numb...
by FiveK
Mon Oct 16, 2017 12:34 am
Forum: Personal Finance (Not Investing)
Topic: Health Insurance: HDHP vs PPO with 2 small kids
Replies: 7
Views: 496

Re: Health Insurance: HDHP vs PPO with 2 small kids

Alto Astral wrote:
Sun Oct 15, 2017 8:52 pm
B. I am wondering if the savings are worth the sticker shock of the doctor visits till the deductible is met.
In our experience, yes. YMMV.

See also the 'HDHP Analysis' tab in Tools and calculators - Personal_finance_toolbox - Bogleheads to help quantify the tax advantage, etc.
by FiveK
Mon Oct 16, 2017 12:22 am
Forum: Investing - Help with Personal Investments
Topic: Roth Convert: To the max of your likely future bracket or the one just below?
Replies: 4
Views: 507

Re: Roth Convert: To the max of your likely future bracket or the one just below?

Ron Scott wrote:
Sun Oct 15, 2017 10:16 pm
For those of you who are converting this year or plan to Roth convert what is your strategy?
If you can pay the taxes from cash on hand, converting even at the same marginal rate is favorable because in effect you are converting both traditional and taxable funds into the Roth account.
by FiveK
Sun Oct 15, 2017 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 133
Views: 20046

Re: 30,000 in Checking Account

spammagnet wrote:
Sun Oct 15, 2017 10:58 pm
As the OP didn't know his bracket, even learning only that is helpful.
Yes indeed. Walk before run. :sharebeer
by FiveK
Sun Oct 15, 2017 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 32
Views: 3340

Re: Tax Bracket in Retirement

I expect in the next 2 years I'll start to touch the 33% bracket indefinitely and have an average marginal rate of the upper 20s for about 31 years. If you are in the 33% bracket, your marginal rate will be at least 33% and likely more. E.g., MFJ, one earner with two young teens, never pays a 33% m...
by FiveK
Sun Oct 15, 2017 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 133
Views: 20046

Re: 30,000 in Checking Account

Look up your annual salary in the IRS tables linked below to find your marginal federal tax rate. taxfoundation.org - 2017-tax-brackets Note that a tax bracket is not necessarily the same as a marginal tax rate . The description of the link is from the Tax Foundation page title. My suggestion was f...
by FiveK
Sun Oct 15, 2017 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating Taxes
Replies: 8
Views: 663

Re: Estimating Taxes

Thank you, I will check out the spreadsheet. I created one myself, but I don't have 100% confidence in my Excel skills or my full understanding of the tax laws! If you are in AMT territory it gets awfully complicated. I would at least check it against the on-line tax calculators. JW Agree. Thats wh...
by FiveK
Sun Oct 15, 2017 7:35 pm
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 133
Views: 20046

Re: 30,000 in Checking Account

spammagnet wrote:
Sun Oct 15, 2017 7:12 pm
Look up your annual salary in the IRS tables linked below to find your marginal federal tax rate.
taxfoundation.org - 2017-tax-brackets
Note that a tax bracket is not necessarily the same as a marginal tax rate.
by FiveK
Sun Oct 15, 2017 7:33 pm
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 133
Views: 20046

Re: 30,000 in Checking Account

GridironGems wrote:
Sun Oct 15, 2017 6:54 pm
I assume you all agree I'm doing the right thing by getting into Vanguard choice funds with .04 ER compared to .45 correct?
That is a very safe assumption. :happy
by FiveK
Sun Oct 15, 2017 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: Taxes and withdrawal strategy in retirement
Replies: 5
Views: 664

Re: Taxes and withdrawal strategy in retirement

See discussion and comments regarding www.i-orp.com in both links already given.
by FiveK
Sun Oct 15, 2017 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating Taxes
Replies: 8
Views: 663

Re: Estimating Taxes

I would like to run some scenario's for my 2018 taxes. I usually end up paying a small amount of AMT. I have some stock options that I need to exercise before 12/31/18 and want to know their impact if I exercise them (or part of them) this year vs. next year. What software or maybe a spreadsheet so...
by FiveK
Sun Oct 15, 2017 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Social Security - Maximizing a couples benefits
Replies: 23
Views: 1577

Re: Social Security - Maximizing a couples benefits

See Tools_and_calculators#Social_Security and links therein for several programs that will calculate a strategy for maximize benefits - depending on your inputs for life expectancy, etc.
by FiveK
Sun Oct 15, 2017 10:23 am
Forum: Investing - Help with Personal Investments
Topic: Do any apps or tools do this in place of spreadsheets?
Replies: 13
Views: 1166

Re: Do any apps or tools do this in place of spreadsheets?

CaliJim wrote:
Sat Oct 14, 2017 8:43 pm
Quicken Premium
+1

Although, I do tend to use Excel as the primary tool for determining the tax consequences of selling various lots of Megacorp acquired over many years. Always nice when Excel, Quicken, and Fidelity agree on the transaction numbers.
by FiveK
Sun Oct 15, 2017 10:17 am
Forum: Investing - Help with Personal Investments
Topic: Help me optimize my portfolio
Replies: 5
Views: 331

Re: Help me optimize my portfolio

I thought I'd share my portfolio with you guys in an effort to optimize! rolly1, welcome to the forum. When you say "optimize" what do you mean? Note that nobody can tell you in advance what the best performing funds will be. Kneejerk reaction is that you have too many funds/stocks, but as others h...
by FiveK
Sun Oct 15, 2017 9:33 am
Forum: Personal Finance (Not Investing)
Topic: [HSA vs. PPO (Preferred Provider Organization) - which to select?]
Replies: 3
Views: 235

Re: [HSA vs. PPO (Preferred Provider Organization) - which to select?]

OregonKate, welcome to the forum. Can't tell for sure, but you might be missing that the insurance premiums are not included in the Out-of-pocket maximum . You can compare your specific HDHP vs. non-HDHP situation using various internet tools. E.g., the 'HDHP Analysis' tab in Tools and calculators -...
by FiveK
Sat Oct 14, 2017 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Prioritizing among tax-advantaged accounts
Replies: 7
Views: 680

Re: Prioritizing among tax-advantaged accounts

See Investment Order and Prioritizing investments - Bogleheads for suggestions.

Those links will reinforce comments already made about the HSA and 529.
by FiveK
Sat Oct 14, 2017 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: Can I fund my dad's taxable account?
Replies: 10
Views: 922

Re: Can I fund my dad's taxable account?

Thank you. Do I have to fill out some kind of form or do I just link my bank account to his Vanguard account? He's not good with computers so I'm pretty much doing everything for him. In that case, if he wishes, doing a financial power of attorney as dbr suggested seems wise. Also, if he opens a jo...
by FiveK
Sat Oct 14, 2017 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Projecting Tax Liability - Assistance Required
Replies: 5
Views: 286

Re: Projecting Tax Liability - Assistance Required

Underpayment penalties occur if you pay less than 90% of what you owe, and less than 100% or 110%, depending on income, of last year's tax bill. +1 to that whole post. HardHitter, note in particular that if this year's withholding will be 110% or more of last year's tax (the 110% assumes last year'...
by FiveK
Sat Oct 14, 2017 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: tax questions about non-discrimination tests and Mega Back Door Roth IRA
Replies: 3
Views: 282

Re: tax questions about non-discrimination tests and Mega Back Door Roth IRA

If I am NOT a Highly Compensated Employee, does maxing out 401(k) pre-tax, and after-tax contributions help the ADP and ACP tests pass each year? Yes. Why some companies continue to restrict non-HCE contributions to some arbitrary (e.g., 25%) percentage of salary is not clear, because as you note t...
by FiveK
Fri Oct 13, 2017 12:17 pm
Forum: Investing - Help with Personal Investments
Topic: 403b Questions
Replies: 13
Views: 656

Re: 403b Questions

I am going to transfer my Roth 403b to aspire. The three funds I am looking at are VTSMX Vanguard total stock market index (40%) VGTSX Vanguard total international stock index (30%) VBTLX Vanguard total bond market index (30%) My questions are Any issues with these funds, ie are they a good mix. Wo...
by FiveK
Thu Oct 12, 2017 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 32
Views: 3340

Re: Tax Bracket in Retirement

Bradley37 wrote:
Thu Oct 12, 2017 1:27 pm
My question is what are the factors that one can consider he/she'll be in a higher or lower bracket in retirement?
See the part about "Estimating withdrawal tax rates" in Investment Order for one approach.
by FiveK
Thu Oct 12, 2017 8:58 pm
Forum: Investing - Help with Personal Investments
Topic: Convert Roth IRA to Traditional IRA
Replies: 11
Views: 1673

Re: Convert Roth IRA to Traditional IRA

...I did some planned capital gain harvesting, thinking I was easily going to be in the 15% bracket. ... I'm projecting to be about $2000-$3000 above the 15% tax bracket. Now, my last option is to re-characterize my Roth IRA contribution. Never done it before, so trying to understand the process. S...
by FiveK
Thu Oct 12, 2017 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: Lower Bracket Using Traditional, Then Contribute to Roth?
Replies: 9
Views: 796

Re: Lower Bracket Using Traditional, Then Contribute to Roth?

So as far as I can tell, contributing at least $8,150 into the traditional TSP would put me in the 15% bracket, meaning my personal Roth IRA contributions would be taxed at a significantly lower rate, and thus I should contribute at least that much to the trad TSP before making any Roth contributio...
by FiveK
Thu Oct 12, 2017 12:59 am
Forum: Investing - Help with Personal Investments
Topic: Clueless on taxes but have luxury of both 403b and 457 space
Replies: 30
Views: 2939

Re: Clueless on taxes but have luxury of both 403b and 457 space

I am having trouble posting this in a easy to read fashion.... Type Gross Net Pay Medi Wages MediCare FICA Wages FICA Fed Wages Federal State Wages State 2017 90,998.45 29,968.63 80,418.97 1,166.07 80,418.97 4,985.93 52,088.97 5,542.09 52,088.97 2,624.18 Took a stab at reformatting. $80,418.97 does...
by FiveK
Wed Oct 11, 2017 11:00 pm
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 133
Views: 20046

Re: 30,000 in Checking Account

We had a health insurance meeting at work today, and I asked the lady speaking about this problem. All she told me was that since it was with the state (I work for Kansas State University, so state of Kansas), it had to stay there and couldn't be moved. You could ask her to explain why (f)(5) in 26...
by FiveK
Tue Oct 10, 2017 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: [Boglehead vs Mr Money Mustache philosophies]
Replies: 203
Views: 13508

Re: [Boglehead vs Mr Money Mustache philosophies]

It might be interesting to see how an MMM poster might respond to the same question if posted on the MMM blog. :D Most are from a few years ago, so take them for what they're worth: https://forum.mrmoneymustache.com/welcome-to-the-forum/distancing-myself-from-bogleheads/msg1515605/#msg1515605 https...
by FiveK
Tue Oct 10, 2017 11:18 am
Forum: Personal Finance (Not Investing)
Topic: [Boglehead vs Mr Money Mustache philosophies]
Replies: 203
Views: 13508

Re: [Boglehead vs Mr Money Mustache philosophies]

At the intersection of just MMM & DR would be "All debt is bad and should pretty much be avoided always". (The majority of the BH crowd, on the other hand, would tend to hang on to a low-interest mortgage or zero-interest car loan.) You may have the wrong impression of "official" MMM advice. Seems ...
by FiveK
Tue Oct 10, 2017 12:44 am
Forum: Personal Finance (Not Investing)
Topic: [Boglehead vs Mr Money Mustache philosophies]
Replies: 203
Views: 13508

Re: [Boglehead vs Mr Money Mustache philosophies]

AND ONE MORE THING: HE DOES NOT HAVE ANY ADS ON HIS WEBSITE, just like here!!!!!! Seems odd for him to make $400K a year from the site without any ads doesn't it? These don't count? http://www.mrmoneymustache.com/mmm-recommends/ There are ads at the bottom of the page in both the blog and the forum...
by FiveK
Mon Oct 09, 2017 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Tax (and other) Planning with first child due Dec 28th
Replies: 6
Views: 500

Re: Tax (and other) Planning with first child due Dec 28th

My wife is due with our first child at the end of the year. Probably about 50/50 whether she's born in 2017 vs 2018. What type of tax planning can I do to prepare for this or should I just hold tight at this point? Would you change deductions or shift anything around before year-end? Would you star...
by FiveK
Mon Oct 09, 2017 9:32 pm
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 133
Views: 20046

Re: 30,000 in Checking Account

If you get it sent to your personal checking account, you do not have to pay any withdrawal fees? That was step 1. Step 2 is important: "2. I mailed a personal check together with a rollover contribution form to my preferred HSA provider. Ask the receiving HSA provider for the rollover contribution...
by FiveK
Mon Oct 09, 2017 9:16 pm
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 133
Views: 20046

Re: 30,000 in Checking Account

I get employer and health quest contributions into my HSA, does this keep me from being able to transfer my HSA investment money to another company? I don't know if I want to use my HSA as in investment account if I have those poor US Bank options and can't invest elsewhere You might find How To Ro...
by FiveK
Mon Oct 09, 2017 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Implications of Traditional vs Roth
Replies: 5
Views: 424

Re: Tax Implications of Traditional vs Roth

Another impact of Traditional vs Roth IRAs is effect of your AGI in retirement. At this time, there are some folks taking RMDs that combined with there other retirement income, force them into AGI (adjusted gross income) levels that require that they pay a premium for Medicare each year or that for...
by FiveK
Mon Oct 09, 2017 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Implications of Traditional vs Roth
Replies: 5
Views: 424

Re: Tax Implications of Traditional vs Roth

The answer is in your question: traditional vs. Roth is all about minimizing the marginal tax rate you pay, whether that is now (for Roth) or at withdrawal (for traditional). You really have to look at your own situation. Rules of thumb apply to many, but by no means all. See Traditional versus Roth...
by FiveK
Mon Oct 09, 2017 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: Should I convert my Rollover IRA to a Roth.
Replies: 5
Views: 490

Re: Should I convert my Rollover IRA to a Roth.

I am 46 years old (in the highest tax bracket) with the following investments: Rollover IRA $430K Roth IRA $18 K Traditional (non-deductible) IRA $6K 401k - $400K Taxable account $800k Cash $250k I was hoping to do be able to do backdoor Roth IRAs every year, but have to address the Rollover IRA to...
by FiveK
Mon Oct 09, 2017 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: [Boglehead vs Mr Money Mustache philosophies]
Replies: 203
Views: 13508

Re: [Boglehead vs Mr Money Mustache philosophies]

As with many religious wars, there are probably more similarities than differences, yet the hard core on both sides believe strongly that "we" are better than "them". The "go to" posts for getting advice from each site, Asking Portfolio Questions - Bogleheads.org and How To: Write a "Case Study" Top...
by FiveK
Sun Oct 08, 2017 9:50 pm
Forum: Investing - Theory, News & General
Topic: individual stock taxable account emotions
Replies: 17
Views: 1779

Re: individual stock taxable account emotions

I'm a 60/40 37 year old who is all in on the three fund portfolio. ... My tax bracket is low this year and will probably never be this low again due to a maternity. ... 5) Any other comments from others who can share their experience who had the same "problem". And you may actually know something t...
by FiveK
Sun Oct 08, 2017 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: PostDoc Grant - No W/H, Didn't Pay Estimated Taxes
Replies: 20
Views: 1739

Re: PostDoc Grant - No W/H, Didn't Pay Estimated Taxes

I don't see it on the link with the safe harbor information so maybe it changed for 2017.... What's the rule for 2017 for >150K household? It's probably the same. As stated in that link, "If your AGI for 2016 was more than $150,000 ($75,000 if your filing status for 2017 is married filing a separat...
by FiveK
Sat Oct 07, 2017 11:44 pm
Forum: Personal Finance (Not Investing)
Topic: PostDoc Grant - No W/H, Didn't Pay Estimated Taxes
Replies: 20
Views: 1739

Re: PostDoc Grant - No W/H, Didn't Pay Estimated Taxes

Agree that high withholding (and, when the take-home pay nosedives, living off the $6K saved) is your best bet. See Who Must Pay Estimated Tax for the "safe harbors": i.e., if any of the circumstances described there do not apply, then you owe no penalty. See also Overview of Tax Issues for Postdocs...
by FiveK
Sat Oct 07, 2017 11:30 pm
Forum: Investing - Help with Personal Investments
Topic: Tradittional vs Roth?
Replies: 6
Views: 518

Re: Tradittional vs Roth?

ebabin wrote:
Sat Oct 07, 2017 7:54 am
I don't understand the IRA to Roth conversion rules.
If you take your best guess at these and post what you think applies to you, folks can either confirm your understanding or inform you where misunderstanding occurs.
by FiveK
Sat Oct 07, 2017 12:43 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional for RMD's & Tax Diversification
Replies: 30
Views: 1293

Re: Roth vs. Traditional for RMD's & Tax Diversification

They retire at 56.... ... Is there anything wrong with my math above? Admittedly it is back of the envelope. :) The math itself looks fine. And it is certainly possible to put "too much" into traditional plans. But let's discuss assumptions. E.g., what if ...children enter the picture and one spous...
by FiveK
Fri Oct 06, 2017 10:25 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA conversion my only "income" and when/how to pay taxes
Replies: 8
Views: 667

Re: Roth IRA conversion my only "income" and when/how to pay taxes

A refund may be possible if OP receives a premium tax credit on an ACA health insurance plan. True, but the shortcut estimates probably don't address that. Although, it is surprising that TaxCaster would have suggested a refund with only the $22K tIRA withdrawal and no other income, so we may not k...
by FiveK
Fri Oct 06, 2017 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional for RMD's & Tax Diversification
Replies: 30
Views: 1293

Re: Roth vs. Traditional for RMD's & Tax Diversification

We're Married filing jointly in the 28% tax bracket, plus another ~6% in state taxes. ...I'd say retirement expenses would be maybe 80k/year Assuming the numbers above, with no pension and all income from traditional withdrawals, withdrawing ~$94500 could give you ~$80K after tax. For a couple with...
by FiveK
Fri Oct 06, 2017 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA conversion my only "income" and when/how to pay taxes
Replies: 8
Views: 667

Re: Roth IRA conversion my only "income" and when/how to pay taxes

Thank you for the reply, taxcaster was what I was basing my numbers/calculations on (and yes it shows a refund when I put my numbers in).... How do you qualify for a refund with no earned income? You need earned income for the Earned Income Tax Credit (EITC). You need earned income for the Child Ta...
by FiveK
Fri Oct 06, 2017 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Planning - What next?
Replies: 2
Views: 520

Re: Retirement Planning - What next?

Some reading that might be helpful:

mega backdoor roth solo 401k - Google Search

Investment Order and Prioritizing investments - Bogleheads.

And better late than never - good luck!
by FiveK
Fri Oct 06, 2017 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover 401(k) to Roth IRA. Which company?
Replies: 15
Views: 849

Re: Rollover 401(k) to Roth IRA. Which company?

It usually goes from a traditional 401K to a traditional IRA; or a Roth 401K to a Roth IRA. Any place you roll it into should be able to take care of this pretty easily. +1 OP, in case it isn't clear why above is the "usual": a rollover from a traditional 401k to a Roth IRA is taxable income while ...
by FiveK
Thu Oct 05, 2017 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Capital Gains - 0%
Replies: 6
Views: 666

Re: Long Term Capital Gains - 0%

The few sites that I looked at showed the LTG tax rate jump to 15% once you go into the 25% tax bracket. That is correct. I guess regardless it's a good idea especially since I can repurchase immediately with no wash sale. Thinking this is more advantageous than getting lower to $31,000 to grab the...