Search found 699 matches

by jane1
Sun Jan 22, 2017 3:11 am
Forum: Personal Finance (Not Investing)
Topic: State Sales Tax vs. State Income Tax
Replies: 2
Views: 393

Re: State Sales Tax vs. State Income Tax

State Sales Tax deduction often only makes sense for states where you would pay no/low income tax for your income bracket. Or when you have a major purchase (car, boat). Home purchase sales tax deduction has more restrictions. I have found that the IRS Sales Tax calculation is often generous than ac...
by jane1
Mon Jan 16, 2017 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: is a 401k loan always terrible?
Replies: 51
Views: 3122

Re: is a 401k loan always terrible?

However, I've never heard of anybody suggesting to guarantee getting nothing but low returns in a 401(k) by investing only in low-return fixed income funds. The main reason for investing is in the hope that the stock market will continue to do as it has done for its entire history, and return more ...
by jane1
Mon Jan 16, 2017 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: is a 401k loan always terrible?
Replies: 51
Views: 3122

Re: is a 401k loan always terrible?

If the entire (or most) 401k is in the bond (fixed income) portion of your asset allocation (which is recommended for tax-efficient placement), wouldn't paying yourself 4-5% be not too bad? More so, when you are reasonably confident that you can pay "loan" back. I understand things can go ...
by jane1
Tue Jan 10, 2017 11:41 am
Forum: Personal Finance (Not Investing)
Topic: File taxes with $0 income with a dependent?
Replies: 29
Views: 1987

Re: File taxes with $0 income with a dependent?

Single mother with no income. Who's paying the bills? Are they both someone's dependents? This is important if they are someone else's dependents. That person should claim them on their tax return and the Single Mom can skip filing her own return. If they cannot be claimed, as others have said, saf...
by jane1
Sun Jan 01, 2017 4:21 pm
Forum: Personal Consumer Issues
Topic: Scenic train trip?
Replies: 21
Views: 1641

Re: Scenic train trip?

Amtrak Denver to Emeryville (SF), CA has 2 scenic stretches of mountain scenery - Denver to SLC and Reno to Sacramento Amtrak LA to San Diego is mostly along the coast SF- Seattle is good but not great. Not particularly coastal even though the name suggests that Canadian Rockies is one of the most s...
by jane1
Tue Dec 27, 2016 10:02 pm
Forum: Investing - Help with Personal Investments
Topic: Question on Individual 401k and Traditional IRA
Replies: 10
Views: 380

Re: Question on Individual 401k and Traditional IRA

Note that i401k contribution deadline is mid-April tax deadline, but she needs to open the account before 12/31. There are several threads on Bogleheads about this (use search to get additional details).
by jane1
Sat Dec 24, 2016 11:58 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard transfer nightmare....
Replies: 35
Views: 3567

Re: Vanguard transfer nightmare....

If you want to avoid all transaction costs, just transfer your assets from Vanguard to any of the major discount brokerage houses like TD Ameritrade or Fidelity. Just make sure that you will qualify for free trading before you commit; they commonly allow for either a certain number of free trades (...
by jane1
Wed Dec 21, 2016 8:12 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth and basis question
Replies: 7
Views: 630

Re: Backdoor Roth and basis question

It IS very possible to have TIRA basis, yet have a 0 balance for your TIRAs. The Form 8606 Inst include a "Total Basis Chart" that indicates your TIRA basis is the amount shown on line 14 of the last 8606 filed. The back door procedure can illustrate this. Assume you make a 5500 ND contri...
by jane1
Wed Dec 21, 2016 12:02 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth and basis question
Replies: 7
Views: 630

Re: Backdoor Roth and basis question

You are good to go. Unrealized and realized cost basis in an investment is different from basis in IRA. Although concept is the same i.e. how much of your holding have you already paid tax on. Your IRA basis is made up on all your non-deductible contributions still within IRA. Worth understanding th...
by jane1
Tue Dec 20, 2016 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: Makes No Sense to Contribute to 401K, right?
Replies: 20
Views: 2520

Re: Makes No Sense to Contribute to 401K, right?

Your question essentially comes down to whether you want to increase your tax-deferred, which you may end up paying >28% upon withdrawal with RMDs or put it in taxable (where LTCG and QD would be taxed at 15% + 3.8% NIIT or STCG and OD at ordinary rate). It would depend on your current age, your cur...
by jane1
Mon Dec 19, 2016 4:30 pm
Forum: Personal Consumer Issues
Topic: Hard Endeavor/Exercise in Middle Age
Replies: 118
Views: 6989

Re: Hard Endeavor/Exercise in Middle Age

Lot of people in their late 30s and 40s train and run a marathon for the first time. Triathlons are also popular at that age. If you live near mountains, have goals to hike/climb the tough ones. Tallest peaks in all continents, all 14ers in your state. Mountain biking, assuming you live close to suc...
by jane1
Mon Dec 19, 2016 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Job switch dilemma
Replies: 40
Views: 3257

Re: Job switch dilemma

You can never tell but there is a good chance that some or all of your kids will settle down near you when they grow up. Take at look at what it will be like for them to be trying to afford to live in that area and to buy homes there someday. Good point. I would add to that and say look at the othe...
by jane1
Mon Dec 19, 2016 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Job switch dilemma
Replies: 40
Views: 3257

Re: Job switch dilemma

Life is too unpredictable and short. What is the point of money anyway? IMO, Happiness and satisfaction in life matters most. Taking a pay cut is in some ways similar to early retirement - you trade money for quality of life. You won't miss the $. You may blame your spouse at some point for holding ...
by jane1
Mon Dec 19, 2016 12:57 am
Forum: Investing - Help with Personal Investments
Topic: Non-Deductible IRA Contributions Could Leave You Taxed Twice
Replies: 8
Views: 948

Re: Non-Deductible IRA Contributions Could Leave You Taxed Twice

If you do #3, you can contribute the non-deductible every year and can potentially build a good Roth balance over the years (assuming backdoor doesn't go away with any new laws). The move from IRA to 401k is a one-time hassle.
by jane1
Sun Dec 18, 2016 9:33 pm
Forum: Investing - Help with Personal Investments
Topic: Should I use 3 different brokerage firms?
Replies: 8
Views: 1018

Re: Should I use 3 different brokerage firms?

I used to have accounts at 3 different brokers. Then there is His and Her. Then IRA, Roth, Taxable and 401k. So that is close to 24 accounts. That doesn't include bank, I-bonds, employee stock. Rebalancing, TLH, wash sales, new investments all became unnecessarily more complex. So now I have simplif...
by jane1
Sun Dec 18, 2016 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: Unclear on Solo 401k for very small income
Replies: 4
Views: 302

Re: Unclear on Solo 401k for very small income

This year I have opened a Fidelity Solo 401k, hoping to contribute the very small amount I have made through the year selling things on Craigslist, etc. Do I need to make a contribution before December 31st? I was going to wait until we do taxes next year, so I know the correct amount for the 'empl...
by jane1
Sun Dec 18, 2016 5:01 pm
Forum: Investing - Theory, News & General
Topic: Cost basis method with holding across multiple accounts?
Replies: 6
Views: 621

Re: Cost basis method with holding across multiple accounts?

Thank you Livesoft. Very helpful. Makes sense. Long time ago (beyond amendment period) we have done FIFO assuming combined account because wash sales were across accounts. So I guess it wasn't quite accurate. Now I know better. We still have holdings (that used that assumption) and will have to cont...
by jane1
Sun Dec 18, 2016 2:12 pm
Forum: Investing - Theory, News & General
Topic: Cost basis method with holding across multiple accounts?
Replies: 6
Views: 621

Re: Cost basis method with holding across multiple accounts?

FIFO is a subset of Specific Identification. FIFO is not a cost basis method no matter what a broker states. It is a method of specifying shares to sell. FIFO is not the only subset of Specific Identification, there are others. My understanding was FIFO is a cost basis method, and not just a way to...
by jane1
Sun Dec 18, 2016 12:01 pm
Forum: Investing - Theory, News & General
Topic: Cost basis method with holding across multiple accounts?
Replies: 6
Views: 621

Cost basis method with holding across multiple accounts?

If I have the same holding in multiple taxable accounts, are those treated as 1 single account for the purposes of cost basis method? What about if some of those accounts are held by me and some by spouse? What if one has chosen different default cost basis methods in different accounts, say Specifi...
by jane1
Sat Dec 17, 2016 2:23 am
Forum: Personal Finance (Not Investing)
Topic: Simple Math but wanted verification
Replies: 7
Views: 871

Re: Simple Math but wanted verification

Use taxcaster or some free tax software to try out scenarios. SS taxation is worth understanding. https://www.bogleheads.org/wiki/Taxation_of_Social_Security_benefits Check if they will qualify for an exception to the 10% early withdrawal penalty. https://www.irs.gov/retirement-plans/plan-participan...
by jane1
Sat Dec 17, 2016 2:17 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Roth Conversion between ex div & record date
Replies: 11
Views: 598

Re: Vanguard Roth Conversion between ex div & record date

Even if it involves a sell & buy, you will not lose the dividend since both settle T+1 . This sounds like advanced work :happy What is T+1? (and it looks like my dividends won't slip through the crack between traditional and Roth on dividend day) T+1 means a trade settles after 1 day. So if you...
by jane1
Sat Dec 17, 2016 1:41 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Roth Conversion between ex div & record date
Replies: 11
Views: 598

Re: Vanguard Roth Conversion between ex div & record date

The difficulty I have with the "transferring" between accounts and "selling" the fund is that on the Vanguard website, the directions say: Converting from a traditional IRA to a Roth IRA is considered an exchange within Vanguard funds. Select the traditional Vanguard IRA account...
by jane1
Fri Dec 16, 2016 11:44 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Roth Conversion between ex div & record date
Replies: 11
Views: 598

Re: Vanguard Roth Conversion between ex div & record date

Since you are not selling anything, just transferring between accounts, you will not miss the dividend.
My understanding is that if conversion is executed anytime before the record date, you will get dividends in the Roth. Else in IRA.
by jane1
Fri Dec 16, 2016 11:31 pm
Forum: Personal Finance (Not Investing)
Topic: Self HSA contribution
Replies: 2
Views: 286

Re: Self HSA contribution

You can also check out the HSA wiki page including list of Custodians that you can transfer your HSA funds to. May be a better long-term option than paying $5.50 fees monthly. Also search for more recent threads.
https://www.bogleheads.org/wiki/Health_savings_account
by jane1
Fri Dec 16, 2016 11:04 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion vs. Premium Tax Credit
Replies: 8
Views: 766

Re: Roth Conversion vs. Premium Tax Credit

Depends on your expected current and future income, tax brackets and size of IRA. If you have a large IRA and will end up being in 25% bracket when RMDs kick-in, you can at least convert to get your MAGI to 399% FPL and still get decent PTC. Running tax scenarios on a software would be the best way ...
by jane1
Fri Dec 16, 2016 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: Back Door Roth contibution
Replies: 6
Views: 698

Re: Back Door Roth contibution

There is no reason you need to hurry and make the $5,500 post-tax contribution to your IRA before the end of 2016. As long as you make the contribution by April 15, 2017 you can designate the contribution for 2016 and then make another contribution for 2017. I would roll all the money in the IRA ov...
by jane1
Fri Dec 16, 2016 10:50 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling Over Fidelity 401k?
Replies: 3
Views: 440

Re: Rolling Over Fidelity 401k?

Is this a 401k to 401k transfer? If so, that may be your only option. If it is a 401k to IRA transfer, and you don't want to stay out of the market with a large account value, then you could potentially try this approach. If you don't mind a 2-step process and potentially a $50-75 account closing fe...
by jane1
Fri Dec 16, 2016 5:59 pm
Forum: Investing - Help with Personal Investments
Topic: Tax gain harvesting - 401k rollover vs taxable
Replies: 2
Views: 255

Re: Tax gain harvesting - 401k rollover vs taxable

If I had the available cash to pay the taxes due I think I would favor converting the 401k all the way to the top of the 15% tax bracket and skip the capital gains harvesting. +1. This is what I would suggest as well. You want to pay for taxes from outside funds (not from 401k). Tax gains can be of...
by jane1
Fri Dec 16, 2016 5:09 pm
Forum: Investing - Help with Personal Investments
Topic: Back Door Roth contibution
Replies: 6
Views: 698

Re: Back Door Roth contibution

Thank you jane1! Extremely helpful. I will inquire if my workplace savings will accept a rollover from my IRA. One question though: For me, would the distribution from my IRA to my workplace savings be subject to pro-rata, since I hold a Traditional IRA? Thanks! Let's say you have $30,000 in your I...
by jane1
Fri Dec 16, 2016 12:42 pm
Forum: Investing - Help with Personal Investments
Topic: Back Door Roth contibution
Replies: 6
Views: 698

Re: Back Door Roth contibution

403(b) does not count as IRA. So she is good. Your IRAs are independent of hers, so will not impact her conversion. So again, she is good to the IRA to Roth without pro-rata. Note: your workplace savings may accept rollover from your IRA. You could do that and then do the same as her. Even for 2016,...
by jane1
Thu Dec 15, 2016 7:56 pm
Forum: Investing - Help with Personal Investments
Topic: How to perform the backdoor Roth on the Vanguard website?
Replies: 10
Views: 1334

Re: How to perform the backdoor Roth on the Vanguard website?

So now there's $5500.05 in the Roth. So I should call them to void the 5 cents? Technically I guess I own tax on the 5 cents. You will get a 1099-R in the next 2 months. If it says $5500.05 (Box 1), you enter that on your tax return. Your basis will be $5500 (or whatever is your after-tax contribut...
by jane1
Thu Dec 15, 2016 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security and Medicare Tax Different for Last Paycheck
Replies: 6
Views: 616

Re: Social Security and Medicare Tax Different for Last Paycheck

Okay, I spoke to payroll and figured this out. My company allows employees to nominate each other for small bonuses (like $100 - $500) throughout the year to reward good work on projects. It turns out someone nominated me and I'll be getting an extra $155 gift card! I guess I spoiled the surprise b...
by jane1
Thu Dec 15, 2016 2:17 pm
Forum: Personal Consumer Issues
Topic: Cancel collision coverage on older car?
Replies: 40
Views: 2625

Re: Cancel collision coverage on older car?

There are several possible reasons to keep collision and comprehensive coverage on older car: 1. If you rent a car, you can more safely decline some of the expensive insurance options on the rental car. Didn't know that. I thought collision/comprehensive were specific to a car VIN and aren't transf...
by jane1
Thu Dec 15, 2016 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security and Medicare Tax Different for Last Paycheck
Replies: 6
Views: 616

Re: Social Security and Medicare Tax Different for Last Paycheck

You need to provide other deductions for those paychecks. Maybe there was FSA/HSA/Health Insurance premium deduction (cafeteria plans) that are not subject to SS and Medicare tax. Likely to be a $155 item. Edit: could be a mistake they have been making that they corrected. Post your latest YTD Gross...
by jane1
Thu Dec 15, 2016 12:06 pm
Forum: Investing - Help with Personal Investments
Topic: Employer 401k to Rollover IRA in Retirement?
Replies: 13
Views: 930

Re: Employer 401k to Rollover IRA in Retirement?

If they are currently in a lower tax bracket than they expect to be when RMDs kick in, they can consider partial conversions to Roth.
by jane1
Thu Dec 15, 2016 12:06 am
Forum: Personal Consumer Issues
Topic: Which state to move for milder weather
Replies: 118
Views: 12721

Re: Which state to move for milder weather

HawaiiBrewer wrote:BUT, there are a lot of other things to consider which my wife suggests can be the "dark side" to paradise.

As we consider a relocation off of this "rock", I will say that giving up the weather is one of our biggest concerns.


Can you elaborate on the dark side of paradise?
by jane1
Wed Dec 14, 2016 2:15 am
Forum: Investing - Help with Personal Investments
Topic: How to perform the backdoor Roth on the Vanguard website?
Replies: 10
Views: 1334

Re: How to perform the backdoor Roth on the Vanguard website?

Look at transaction history... probably money market interest or dividend payout. Those pesky pennies keep showing up even after rollovers/transfers. For rollovers you can ask the custodian to do a sweep. Not sure how it works for conversions. Let us know what you find out. Fidelity recentky mailed ...
by jane1
Wed Dec 14, 2016 2:07 am
Forum: Investing - Help with Personal Investments
Topic: Worth it to pay capital gains to balance portfolio? (Again)
Replies: 6
Views: 1045

Re: Worth it to pay capital gains to balance portfolio? (Again)

You should also check if any of these holdings pay significant dividends which adds to their taxable income every year. If they donate to charity anyway and have giving plans for the future, they can donate appreciated stock (in lieu of cash) for greater tax benefit. Donor advised fund may be an opt...
by jane1
Mon Dec 12, 2016 8:46 pm
Forum: Investing - Help with Personal Investments
Topic: RMD to ROTH
Replies: 11
Views: 976

Re: RMD to ROTH

Spirit Rider wrote:RMDs are required from all inherited accounts using the lifetime tables, so someone could certainly be < 70.5 and receiving RMDs.


Good point. I missed that.
by jane1
Mon Dec 12, 2016 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Software for 2016?
Replies: 16
Views: 1967

Re: Tax Software for 2016?

If you don't want to do much what-if scenarios, you may be a good candidate to get your taxes done for free by trained volunteers at your local AARP TaxAide site
http://www.aarp.org/money/taxes/info-20 ... xaide.html

Several of us on Bogleheads volunteer at our local TaxAide sites.
by jane1
Mon Dec 12, 2016 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: RMD to ROTH
Replies: 11
Views: 976

Re: RMD to ROTH

If either of you is below the age of 70.5 you may also be able to make a deductible IRA contribution with the RMD money, once it is in your checking account. I don't believe that is correct, at least the way it is phrased. If you are over 70.5, you cannot contribute to a Traditional IRA but you can...
by jane1
Mon Dec 12, 2016 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: RMD to ROTH
Replies: 11
Views: 976

Re: RMD to ROTH

I forgot to mention that my wife works full time and I am retired. Am I still allowed to contribute to my Roth? Yes, both of you can contribute if you meet the Roth income eligibility requirements. You may also be able to do catch-up contributions. I believe you cannot contribute to a Traditional I...
by jane1
Mon Dec 12, 2016 4:11 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Bonds in 401k - Vanguard Total Bond Mkt vs non-public option?
Replies: 1
Views: 169

Help with Bonds in 401k - Vanguard Total Bond Mkt vs non-public option?

I am trying to figure out if the bond option accessible via His 401k is very comparable to Vanguard Total Bond Market Index fund before I use this in a major way. Else we will continue to use Bonds in Her 401k if that is a better option. I can post more details about this fund if it helps. Any advan...
by jane1
Mon Dec 12, 2016 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Playing with some tax numbers
Replies: 13
Views: 997

Re: Playing with some tax numbers

kaneohe wrote:
rec7 wrote:Does the AGI sound about right at around 17k?


pls tell us how you got 17K by adding 2 (or 3) 9Ks.


Or is 17k taxable income after subtracting standard deduction and personal exemption from AGI?
by jane1
Mon Dec 12, 2016 2:41 am
Forum: Investing - Help with Personal Investments
Topic: How to perform the backdoor Roth on the Vanguard website?
Replies: 10
Views: 1334

Re: How to perform the backdoor Roth on the Vanguard website?

Wouldn't you use "Convert to Roth IRA" link?

Maybe it gets to the same screen ultimately...
by jane1
Sun Dec 11, 2016 11:30 pm
Forum: Investing - Theory, News & General
Topic: Roth wake-up call...
Replies: 24
Views: 3575

Re: Roth wake-up call...

OP, lot of us went down similar paths before we went the Bogleheads way. I (actually DH) lost most of our net-worth in the dotcom bust in 2001. Good news is that you realized this at a young age. Large fraction of the population never learns that lesson. I have friends/family who keep trying to beat...
by jane1
Sun Dec 11, 2016 11:17 pm
Forum: Investing - Help with Personal Investments
Topic: Playing with some tax numbers
Replies: 13
Views: 997

Re: Playing with some tax numbers

Zero, I would think. Trick question?
by jane1
Sun Dec 11, 2016 7:23 pm
Forum: Investing - Help with Personal Investments
Topic: There are no tax consequences to trading funds within a Roth IRA, right?
Replies: 11
Views: 1444

Re: There are no tax consequences to trading funds within a Roth IRA, right?

tsutsugamushi wrote:Unless you hold any of the same funds in a taxable account and might want to sell those taxable holdings at a loss within a month of the IRA transaction.


+1. Be aware of any wash sale implications
by jane1
Sat Dec 10, 2016 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Contribution limit - 401k in job 1, 403b, 457b, defined contribution plan in job 2
Replies: 10
Views: 410

Re: Contribution limit - 401k in job 1, 403b, 457b, defined contribution plan in job 2

If you are >= 50 there is a $24K employee deferral limit across all qualified plans (401k, 403b). There is a separate $53K annual addition limit for each employer of a qualified plan. The annual addition limit is the total of employee + employer contributions. A 457b is not a qualified plan and the...

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