Search found 48 matches

by IADFlyer
Fri May 05, 2017 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

When sending in Form 8606 separately from my return, should I expect any sort of confirmation or acknowledgement from the IRS?
by IADFlyer
Thu May 04, 2017 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage Payment Question
Replies: 6
Views: 599

Re: Mortgage Payment Question

RoadHouseFan wrote:Don't recommend buying until one can comfortably make a >25% down payment.

I think the OP has already purchased the home and is wondering how best to make these 1/4 payments.
by IADFlyer
Wed May 03, 2017 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

retiredjg wrote:Congrats on getting it figured out ahead of time. This can save hours of grief later on. :happy

Thank you everyone, especially retiredjg, for the assistance.
by IADFlyer
Wed May 03, 2017 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

Earl Lemongrab wrote:I would make the 2017 contribution before the conversion so you don't have to do it twice.

Are suggesting doing my step 4 (the conversion) after making my 2017 contributions? If so, that sounds good.
by IADFlyer
Wed May 03, 2017 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

Ok. It appears you are good to go. ... Let me know if you are still confused. It is important to figure out this paperwork ahead of time. The actual back door process is very easy to complete - just a few mouse clicks. It is the paperwork that people mess up. That is why you need to understand it f...
by IADFlyer
Thu Apr 27, 2017 3:43 am
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

@retiredjg - The delaying responding is because I am still processing how to execute this plan based on our situation. I'll be back shortly.
by IADFlyer
Tue Apr 25, 2017 7:45 am
Forum: Personal Consumer Issues
Topic: Alternate Energy Supply Companies?
Replies: 4
Views: 466

Re: Alternate Energy Supply Companies?

I was gone and my wife signed up for a switch to the US Gas and Electric (Illinois Gas and Electric). I have no idea what it is and she didn't really either. Unfortunately, she can't say no to sales people. What exactly is this? I am trying to read online but it seems very vague. We have 10 days to...
by IADFlyer
Mon Apr 24, 2017 9:56 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

I am told behind the scenes that the 4549 should say if the IRA deductions you had taken that year were disallowed. My best guess is that would be in section 1, "Adjustments to income". Did they add that $9,800 back in? If not, perhaps they simply overlooked it. No, Section 1 only include...
by IADFlyer
Mon Apr 24, 2017 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

We know what to do for 2013 - the $5,500 was a non-deductible contribution. We don't know what to do for 2012. After the audit, the two contributions totaling $9,800 may or may not have been deducted. What this boils down to is paying taxes on that $9,800 again. Some people would go to great length...
by IADFlyer
Mon Apr 24, 2017 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

retiredjg wrote:Is there anything on Form 4549 (for 2012) which indicates what the AGI was?

No, other than my MAGI for 2012 was now $182,588.
by IADFlyer
Sun Apr 23, 2017 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

Since you both have TSPs you can roll your pre-tax TIRA assets over the the TSPs. Any non-deductible basis cannot be rolled to the TSP but can be converted without taxes. Would I need to sell the current holdings in my Trad IRA since the TSP is limited to the 5 funds? Yes. You would liquidate the c...
by IADFlyer
Sun Apr 23, 2017 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

The 2012 and 2013 AGI are before the audit, IRS raised the number significantly. This worries me a little. If the IRS audit raised the number significantly, that $9800 should not have been deductible after the audit. If so, only part of what I said above is correct. Do you have an amended 1040 for ...
by IADFlyer
Sat Apr 22, 2017 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

For 2013, the modified AGI limit for deducting contributions to IRA was $95k if each of you had a plan at work. Since your AGI was $125k, I think it is almost certain the contributions for 2013 were non-deductible. If it turns out one of you did not have a plan at work in 2013, I'll have to dig fur...
by IADFlyer
Sat Apr 22, 2017 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

Do you still have those tax records? If so, look on line 32 for years 2012 and 2013 IRA Deduction and see if there is an entry for either of those 2 years. Just to help double check, look at 2011 and 2104 if you have them as well. 2012 returns have $9,800 in Line 32 IRA Deductions. All other years ...
by IADFlyer
Sat Apr 22, 2017 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

Well, presumably you made these contributions because your MAGI was too high in the years past to make regular Roth IRA contributions. Is that accurate? If so, then given the existence of work plans, you would not have been able to deduct the TIRA contributions. So those should have been recorded o...
by IADFlyer
Sat Apr 22, 2017 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

OK, let's back up then. HUSBAND Trad IRA Value: $15,700 Contribution: $10,300 (from years 2012/2013) Gain: $5,400 Where did the contribution of $10,300 come from? Was that from contributions that you deducted from your taxable income? Or a rollover from a work plan? Or was it from contributions tha...
by IADFlyer
Sat Apr 22, 2017 6:16 am
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

My wife and I both have incomes over the limit for Roth contributions. Unless you are filing separately, it's your joint income that counts. So your joint income for 2017 will be more than $196K? Yes, we file MFJ and are over the limit. HUSBAND Trad IRA Value: $15,700 Contribution: $10,300 (from ye...
by IADFlyer
Sat Apr 22, 2017 6:02 am
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Re: Need help setting up backdoor Roth IRA

Is the money in each tIRA pre-tax or could there be some "basis" in there, say...from a non-deductible contribution to IRA? The answer may not be the same for both of you. I am not really sure what you mean here. If any contributions were non-deductible, did you file the Form 8606 for tho...
by IADFlyer
Fri Apr 21, 2017 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: Need help setting up backdoor Roth IRA
Replies: 36
Views: 2355

Need help setting up backdoor Roth IRA

Hello - I am looking for any help I can get on the steps for structuring a backdoor Roth IRA. Specific instructions or directions for my situation and the steps for follow in future years would be very helpful. My wife and I both have incomes over the limit for Roth contributions. I have read variou...
by IADFlyer
Fri Apr 21, 2017 8:22 am
Forum: Personal Finance (Not Investing)
Topic: How to reduce my income tax
Replies: 31
Views: 3296

Re: How to reduce my income tax

My first thought was, why is he complaining? I grossed $142K, taxable was $125K and I paid $28K in federal and $7K in state. You're getting off easy. Us single people with relatively high income are the ones paying more than our "fair" share of taxes. Not necessarily a bad problem to have...
by IADFlyer
Fri Apr 21, 2017 8:18 am
Forum: Personal Finance (Not Investing)
Topic: How to reduce my income tax
Replies: 31
Views: 3296

Re: How to reduce my income tax

IADFlyer: I'm impressed with the way you've reduced your taxes already. Would you mind sharing any additional thoughts on how you reduced a gross income of 252K to an AGI of 200K and a taxable amount of 151K? My Married-Filing-Jointly family had a similar gross income, but we paid a lot more tax. T...
by IADFlyer
Fri Apr 21, 2017 4:42 am
Forum: Personal Consumer Issues
Topic: Booking united award tickets with 2 accounts
Replies: 13
Views: 1585

Re: Booking united award tickets with 2 accounts

To your original question: combining UA points into one account is likely a needless waste of money. Since each one-way ticket is 12,500, ticket as many of those as you can out of each account, and transfer in some UR points to make up gaps as needed. Just be aware that if you have outbound and ret...
by IADFlyer
Fri Apr 21, 2017 4:40 am
Forum: Personal Consumer Issues
Topic: Booking united award tickets with 2 accounts
Replies: 13
Views: 1585

Re: Booking united award tickets with 2 accounts

One perhaps easy way to do this is to book all of your tickets as one-ways. IOW, book EWR->TPA for all both of you (infant is free) using one FF account and book FLL->EWR using the other account. This way, you don't have to call it or do anything crazy like different browser windows and you don't r...
by IADFlyer
Thu Apr 20, 2017 8:35 pm
Forum: Personal Finance (Not Investing)
Topic: How to reduce my income tax
Replies: 31
Views: 3296

Re: How to reduce my income tax

mmarreco wrote:You don't have a lot of deductions, so consider itemizing every other year. You can time your property taxes payments and donations so they only occur every 2 calendar years and on the year in between you take the standard deduction.

I don't understand this. Care to elaborate?
by IADFlyer
Thu Apr 20, 2017 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: How to reduce my income tax
Replies: 31
Views: 3296

Re: How to reduce my income tax

What do you mean daycare expense are going away and they will rise by $12K. Sounds contradictory. Our 4 year old will go to public school. No need to pay for child care any longer, thus the expense goes away. I mistakenly said my income would go up 12K instead of what I meant, which was that I woul...
by IADFlyer
Thu Apr 20, 2017 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: How to reduce my income tax
Replies: 31
Views: 3296

Re: How to reduce my income tax

The rental property will not necessarily affect your tax bill. You are allowed to deduct depreciation on top of all the expenses. That will be roughly $12,000/year. You will be paying another $10,000 in interest at the beginning of the loan. Add property taxes, insurance, maintenance, commissions, ...
by IADFlyer
Thu Apr 20, 2017 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: How to reduce my income tax
Replies: 31
Views: 3296

Re: How to reduce my income tax

delamer wrote:Contribute to 529 plan for VA state tax deduction.


Sorry, failed to mention that we do contribute to 529s for each child.
by IADFlyer
Thu Apr 20, 2017 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: How to reduce my income tax
Replies: 31
Views: 3296

Re: How to reduce my income tax

retiredjg wrote: Mostly, I think you need to see it as a good problem to have and not worry about it too much.


You are absolutely correct.
by IADFlyer
Thu Apr 20, 2017 1:09 pm
Forum: Personal Consumer Issues
Topic: About lawn sprinkler sytem
Replies: 16
Views: 1555

Re: About lawn sprinkler sytem

We've got a Rain-Bird system with 3 zones here in No. Virginia. Half acre, but only water the front and sides therefore only needed 3 zones. $1800.
by IADFlyer
Thu Apr 20, 2017 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: How to reduce my income tax
Replies: 31
Views: 3296

Re: How to reduce my income tax

Have you considered a high deductible health plan, coupled with a health savings account? I found the health savings account (HSA) to be great - - if contributions are deducted from your pay, it is truly triple tax free -- unlike 401k accounts, one doesn't even pay FICA and Medicare taxes on the do...
by IADFlyer
Thu Apr 20, 2017 11:00 am
Forum: Personal Finance (Not Investing)
Topic: How to reduce my income tax
Replies: 31
Views: 3296

Re: How to reduce my income tax

I'm not sure that purchasing that rental property to get even more taxable income was the best idea, but I'm just not sure. Putting that $$ into a tax efficient index fund might have been better, producing untaxed growth in coming years along with dividends taxed at 15%... I definitely didn't do th...
by IADFlyer
Thu Apr 20, 2017 10:24 am
Forum: Personal Finance (Not Investing)
Topic: How to reduce my income tax
Replies: 31
Views: 3296

How to reduce my income tax

Hello Everyone – I’d like to get your insights on how we can possibly reduce our federal and state income tax burden or more efficiently plan for upcoming increases to our taxable income. Between daycare expense going away and rental property income, 2017 taxable income will rise by $22K (rent) and ...
by IADFlyer
Mon May 12, 2014 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: Should I try to re-fi my mortgage?
Replies: 26
Views: 3946

Re: Should I try to re-fi my mortgage?

Does anyone who has done the 5/5 penfed ARM know if they allow you to rent out your house while under the mortgage? The website says the loan is "not for investment properties" but this would be to refi our primary residence. We hope to rent out our current/starter home in a few years whe...
by IADFlyer
Wed May 08, 2013 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Refi or Not??
Replies: 9
Views: 669

Re: Refi or Not??

It seemed obvious, but we just wanted to make sure that we were not missing anything. I know they are going to charge a 1% orgination fee.
by IADFlyer
Wed May 08, 2013 6:43 am
Forum: Personal Finance (Not Investing)
Topic: Refi or Not??
Replies: 9
Views: 669

Refi or Not??

Hi all, In April 2012,we got a $400,000 mortgage (home value $515,000) with a penfed 5/5 arm. It has a starting rate of 2.875% which started in May 2012. Worst case scenario it goes to 4.875% in 2017, 6.875% in 2022 and caps at 7.875% in 2027. The current balance is $373,000. Excluding tax and insur...
by IADFlyer
Wed Feb 27, 2013 7:48 pm
Forum: Personal Finance (Not Investing)
Topic: Finance or not a vehicle?
Replies: 38
Views: 2807

Re: Finance or not a vehicle?

What about negotiating the best cash price, then bringing in the 1.49% financing. A 30000 car at 1.49% cost you a 1150 over 60 months. Couldn't more than 1150 be made in the market using your 30000 minus 500 a month?
by IADFlyer
Wed Feb 27, 2013 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: Finance or not a vehicle?
Replies: 38
Views: 2807

Finance or not a vehicle?

Hello, Quick question. What would you all consider the break point for financing a car? For instance some would argue that one should never finance a vehicle, but what about at 0%? Does it make sense use the a lenders money to carry the car debt if it is at 0%, 1%, etc?
by IADFlyer
Sun Apr 22, 2012 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Home Solar: Owning vs. Leasing
Replies: 42
Views: 3795

Re: Home Solar: Owning vs. Leasing

I would lease, solar companies are not going to want the panels back off lease in 20 years since they made their $$ from the federal subsidy and the 20 years of operation and maintenance they built into the lease fee (but never really needed). Nor are they going to want to remove and dispose of them...
by IADFlyer
Sat Mar 24, 2012 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: IRA eligibility
Replies: 4
Views: 755

Re: IRA eligibility

Thank you all. I am going to look into the backdoor Roth.
by IADFlyer
Thu Mar 22, 2012 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: IRA eligibility
Replies: 4
Views: 755

IRA eligibility

Hello: We recognize that we need to save more money for retirement, but are unsure where to put it. We have looked into IRAs, but do not understand the differences other than one is deductible and the other is after tax, non deductible (we think). Based on the below info, can the forum help us figur...
by IADFlyer
Mon Mar 12, 2012 10:54 pm
Forum: Personal Finance (Not Investing)
Topic: Amerisave
Replies: 21
Views: 3301

Re: Amerisave

I closed 3.00% with 30 year 5/5 ARM with PenFed last Wednesday. Title company couldn't believe that the refinancing literally cost me $0. PenFed covered the appraisal fee, flood cert fee, all government fees, title company and title insurance, etc. Fees were literally $0. Was a very smooth transact...
by IADFlyer
Sun Mar 11, 2012 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Amerisave
Replies: 21
Views: 3301

Re: Amerisave

I closed 3.00% with 30 year 5/5 ARM with PenFed last Wednesday. Title company couldn't believe that the refinancing literally cost me $0. PenFed covered the appraisal fee, flood cert fee, all government fees, title company and title insurance, etc. Fees were literally $0. Was a very smooth transact...
by IADFlyer
Sun Mar 11, 2012 7:02 am
Forum: Personal Finance (Not Investing)
Topic: Please explain PenFed Mortgage Rates
Replies: 5
Views: 1039

Re: Please explain PenFed Mortgage Rates

1. 5/5 ARM First 60 payments: Rate 3.125%; APR 2.961% Next 300 payments: Rate 2,875%; APR 2.961% This ARM adjust every 5 years. Starting rate is 3.125%. The advertisement for this rate is assuming the "current" fully indexed rate (index + margin) for the term, which is low. If/when rates ...
by IADFlyer
Tue Feb 28, 2012 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: Are we thinking clearly about refinancing??
Replies: 12
Views: 1064

Re: Are we thinking clearly about refinancing??

I would sell the taxable stocks (leaving you with 120k taxable cash) and put 20k in Roths for him/her for 2011/2012. I would use 50k and choose option 2 for the refi. I would use 10k to pay of the car loan (and don't borrow for cars again, especially at your income levels). I would use 40k to pay o...
by IADFlyer
Tue Feb 28, 2012 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Are we thinking clearly about refinancing??
Replies: 12
Views: 1064

Re: Are we thinking clearly about refinancing??

PenFed has this loan and will pay all the closing costs. You can easily qualify to join them as part of your loan application process my joining a related organization for about $20. I refinanced with them last year with this loan and it went smoothly. This works for me since I plan on having the l...
by IADFlyer
Mon Feb 27, 2012 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Are we thinking clearly about refinancing??
Replies: 12
Views: 1064

Re: Are we thinking clearly about refinancing??

One more thing to add, I have heard a number of comments about appraisals being low than expected and mine was pretty low when I refinanced. You should be prepared for that. You should also check to see if the PenFed loan is limited to the jumbo loan amount. Since they keep this in house it might n...
by IADFlyer
Mon Feb 27, 2012 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Are we thinking clearly about refinancing??
Replies: 12
Views: 1064

Re: Are we thinking clearly about refinancing??

Some questions to help me understand your question. If you plan to pay off the loan within 15 years, why not go for a 15-year mortgage and benefit from the lower interest rate? Not necessarily trying to pay it off in 15 years, just happens thats the payoff. Even then, we think a 30 years add more f...
by IADFlyer
Sun Feb 26, 2012 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Are we thinking clearly about refinancing??
Replies: 12
Views: 1064

Are we thinking clearly about refinancing??

Hi, ran across the site some time ago and continue to learn from. I know have a personal finance question I wanted to toss to the forum for input. Thank you very much!! We are thinking about refinancing our primary residence. The current LTV is high and we would need to put money down to lower the r...