Search found 48 matches

by ljwobker
Sat Apr 08, 2017 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Compare moving after-tax 401k contribs into Roth IRA directly, vs splitting then converting
Replies: 5
Views: 340

Compare moving after-tax 401k contribs into Roth IRA directly, vs splitting then converting

So I'm trying to understand the mechanics of these two possibilities and whether there's any difference in how they're ultimately treated/taxed: Initial case: I have after-tax contributions and some associated earnings on these contributions in a 401k. I eventually want to get these into a Roth IRA....
by ljwobker
Fri Feb 03, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: someone talk me out of using betterment or wealthfront as a "checking account"
Replies: 12
Views: 1747

Re: someone talk me out of using betterment or wealthfront as a "checking account"

Somehow this became grossly overcomplicated. Perhaps I should rephrase. Let me be absolutely clear, this is NOT keeping the lights on money. This is NOT money I absolutely must have. It's money that is in excess of my emergency fund. It's money that if I were to purely ration out, I'd put into a che...
by ljwobker
Thu Feb 02, 2017 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: someone talk me out of using betterment or wealthfront as a "checking account"
Replies: 12
Views: 1747

Re: someone talk me out of using betterment or wealthfront as a "checking account"

I very specifically said it was NOT the "keeping the lights on money" If it's in a brokerage account, I need to actively manage it, which means buying and selling things periodically (which is the entire reason I'm willing to give betterment money to do that part). I'd either have to take ...
by ljwobker
Thu Feb 02, 2017 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: someone talk me out of using betterment or wealthfront as a "checking account"
Replies: 12
Views: 1747

someone talk me out of using betterment or wealthfront as a "checking account"

So the title is (hopefully) catchy enough to get people to discuss/argue. I'm in a position where my income is quite lumpy: it's skewed to a couple of large bonus and stock payouts a couple of times per year. From a cashflow standpoint, I'd prefer that this be distributed more evenly so it looks &qu...
by ljwobker
Sun Jan 29, 2017 11:41 pm
Forum: Personal Finance (Not Investing)
Topic: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?
Replies: 15
Views: 1455

Re: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?

It's not that I *disagree* with Fidelity, I'm just trying to figure out how this gets accounted. If I put this into TurboTax as it's on the 1099, and then I say "I converted all this money to a Roth IRA", it computes the difference in what appears to be the correct fashion as taxable incom...
by ljwobker
Sat Jan 28, 2017 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?
Replies: 15
Views: 1455

Re: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?

So i called Fidelity and asked them to correct/change the 1099R, but I'm getting some resistance from them. They seem to think that having zero as the "taxable" amount in acceptable, and that the reporting burden is on the receiving firm. This doesn't sound right to me, because the receivi...
by ljwobker
Mon Jan 23, 2017 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?
Replies: 15
Views: 1455

Re: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?

OK, so the 1099-R is in. It's a single 1099R, with: ⋅ the combined (after-tax contribs + earnings) amount in box 1, ⋅ $0.00 in 2a as taxable and 2b unchecked ⋅ box 5 is the exact amount of the after-tax contributions. ⋅  "G" is the only distribution ...
by ljwobker
Tue Jan 17, 2017 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: If I decide to overpay on mortgage payment
Replies: 45
Views: 5329

Re: If I decide to overpay on mortgage payment

Very helpful. Happy to be wrong on this one - I have very clearly written in my notes from the lender that the interest due was from the original amortization schedule, but I called them today and it was explained the other way, so I'm sure I just asked the question the wrong way or didn't get the a...
by ljwobker
Tue Jan 17, 2017 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: If I decide to overpay on mortgage payment
Replies: 45
Views: 5329

Re: If I decide to overpay on mortgage payment

If this is the case (the interest is recomputed effectively each period), what is the point of the mortgage holder offering to re-amortize the loan?
by ljwobker
Tue Jan 17, 2017 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: If I decide to overpay on mortgage payment
Replies: 45
Views: 5329

Re: If I decide to overpay on mortgage payment

Yes - there is no argument on how the math works *if* the loan is structured such that any payments to principal are immediately reflected in the principal/interest ratio of future payments. My contention is that this is not how most fixed mortgages are structured: I believe you are on the hook for ...
by ljwobker
Tue Jan 17, 2017 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: If I decide to overpay on mortgage payment
Replies: 45
Views: 5329

Re: If I decide to overpay on mortgage payment

Paying some of the principal early does reduce the amount of interest charged... But not by nearly as much as most people think. Let's look at the initial case. If I pay a month's worth of principal early and I do not re-amortize, I have reduced the amount of interest I pay by whatever the interest ...
by ljwobker
Tue Jan 17, 2017 11:07 am
Forum: Personal Finance (Not Investing)
Topic: If I decide to overpay on mortgage payment
Replies: 45
Views: 5329

Re: If I decide to overpay on mortgage payment

I'm not interested in getting into a pissing contest over this... although I suggest anyone with an interest in this topic ask their lender the following question: "If I pay an extra $500 this month, does the interest that I owe for future payments change automatically, or does it follow the or...
by ljwobker
Tue Jan 17, 2017 9:02 am
Forum: Personal Finance (Not Investing)
Topic: If I decide to overpay on mortgage payment
Replies: 45
Views: 5329

Re: If I decide to overpay on mortgage payment

Not sure, but I don't think I agree. I am not sure what you mean by "reamortization" - whether this is what you can do or what the lender needs to do? If you pay an extra $265 per month on this cited loan AND you do it in a way (by designation) you will end up saving the same amount of in...
by ljwobker
Mon Jan 16, 2017 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: If I decide to overpay on mortgage payment
Replies: 45
Views: 5329

Re: If I decide to overpay on mortgage payment

Also, unless you are re-amortizing the loan(!!!) you are paying the principal down from the "back" of the mortgage, and as such you're saving yourself much less interest than you would be otherwise. The interest portion of a fixed payment loan decreases drastically through the life of the ...
by ljwobker
Fri Jan 13, 2017 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?
Replies: 15
Views: 1455

Re: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?

Well, I was hoping for any answer that was clear, and I certainly got that. Thank you again The next question, somewhat changed because the receiving firm *did* allow me to deposit both checks directly into my Roth IRA. So in this case, is it correct that I will either get: a single 1099-R with: &sd...
by ljwobker
Wed Jan 11, 2017 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?
Replies: 15
Views: 1455

Re: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?

Does anyone happen to know how these two distributions will be reported via 1099-R's? Specifically which codes are used for these? I ask only because I'm trying to "model" my taxes for 2016 in TurboTax, but it'll be at least 6 weeks before I have all the actual paperwork... and, I guess to...
by ljwobker
Wed Jan 11, 2017 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: mega-backdoor conversion - end of year timing question
Replies: 5
Views: 531

Re: mega-backdoor conversion - end of year timing question

No risk of this exceeding 60 days, the delay between getting the checks and sending them in is mostly just due to holidays and other stuff that kept me from doing it immediately upon receipt. I *thought* that the only date that mattered was the distribution date, but it's good to hear support for th...
by ljwobker
Tue Jan 03, 2017 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: mega-backdoor conversion - end of year timing question
Replies: 5
Views: 531

mega-backdoor conversion - end of year timing question

What dates are relevant from a tax standpoint when doing a mega-backdoor Roth conversion? I made the request for disbursement on approximately Dec 15th, the checks for the distribution are dated Dec 21, but they will not be deposited at the new trustee until mid-january. Did I just generate myself s...
by ljwobker
Tue Jan 03, 2017 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?
Replies: 15
Views: 1455

Re: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?

Thank you for asking about the checks - one is written specifically to "<Trustee> TR IRA" and the other is written to "<Trustee> ROTH IRA".

I guess in this case I don't have all that much choice anymore, do I?
by ljwobker
Tue Jan 03, 2017 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?
Replies: 15
Views: 1455

Re: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?

It's more than $200 - i was using that as a hypothetical example... I usually do the "ordinary" backdoor contribution each year, so I'm particularly interested in what you describe as "causing a problem" with the earnings moved into a tIRA. But, as long as each year I completely ...
by ljwobker
Tue Jan 03, 2017 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?
Replies: 15
Views: 1455

Mega-backdoor conversion : accounting/reporting details for contributions vs. earnings?

I've done the mega-backdoor conversion in years past, then did a stint at a non-mega-corp that didn't allow after-tax contributions, and now am back where they're allowed again. In previous years I always got a single check as the distribution of only after-tax contributions, but this time around th...
by ljwobker
Mon Aug 15, 2016 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth with unanticipated balance in traditional IRA...
Replies: 7
Views: 929

Re: Backdoor Roth with unanticipated balance in traditional IRA...

I'm back to trying to sort this out. Anyone happen to have thoughts on the previous two posts? I'm trying to figure out if there's a reasonable way to un-do what I've done... ;-)
by ljwobker
Fri Mar 18, 2016 8:52 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA basis
Replies: 26
Views: 11530

Re: Roth IRA basis

Sorry - TurboTax is the only thing I've used to do my taxes so I'm referring to the form that they call "IRA Information Worksheet". It basically just exists to keep track of both value and basis for Traditional and Roth IRAs, with sections for "TIRA Basis Detail" and "TIRA ...
by ljwobker
Fri Mar 18, 2016 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA basis
Replies: 26
Views: 11530

Re: Roth IRA basis

So in my case, I have basis in my Roth IRA that comes primarily from these sources: 1) direct contributions I made around years 2000-2003 2) funds converted via the two year window from a traditional IRA in tax years 2011/2012 3) funds converted from T-IRAs via the "backdoor roth" 4) funds...
by ljwobker
Wed Mar 16, 2016 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth with unanticipated balance in traditional IRA...
Replies: 7
Views: 929

Re: Backdoor Roth with unanticipated balance in traditional IRA...

Then as long as you can rollover the pre tax balance of your TIRA into your current employer plan before year end, you can reconvert the remaining basis in your TIRA tax free. But you cannot reconvert until at least 30 days have passed after the recharacterization of your 2015 conversion. Alan - wh...
by ljwobker
Wed Mar 09, 2016 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Accounting for TIRA-> Roth-> TIRA in different tax years?
Replies: 3
Views: 560

Re: Accounting for TIRA-> Roth-> TIRA in different tax years?

Incredibly helpful, thank you. My 1040 line 15a shows the contributed/converted amount, and the 8606 does indeed show the contribution on line 1, as it should because the funds were non-deductible. One more question: where do we account for the earnings/loss between when the money was contributed, c...
by ljwobker
Mon Mar 07, 2016 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Accounting for TIRA-> Roth-> TIRA in different tax years?
Replies: 3
Views: 560

Accounting for TIRA-> Roth-> TIRA in different tax years?

Background is in this post: https://www.bogleheads.org/forum/viewtopic.php?f=2&t=185956, but this is really more of a tax accounting/reporting and a question as it relates to the timing of things. Below, I've tried to put the dates in bold so it's more obvious what I'm asking... I find myself he...
by ljwobker
Thu Mar 03, 2016 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth with unanticipated balance in traditional IRA...
Replies: 7
Views: 929

Re: Backdoor Roth with unanticipated balance in traditional IRA...

One concern of mine is that IF I just keep the conversion, doesn't that effectively "poison" the pre-tax nature of the funds in the TIRA? Or, if I do keep the 2015 conversion and then I roll all of those funds into a 401k, how does that work from a basis tracking standpoint? Does paying th...
by ljwobker
Thu Mar 03, 2016 10:25 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth with unanticipated balance in traditional IRA...
Replies: 7
Views: 929

Re: Backdoor Roth with unanticipated balance in traditional IRA...

The fact that that you had no other traditional IRA's at the time of the Roth conversion is not relevant. Sigh, I was pretty sure that was going to be the answer. Do you have a 401k that accepts rollovers? If so, do that. I will eventually, but not before Apr 15 of this year. How time sensitive is ...
by ljwobker
Wed Mar 02, 2016 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth with unanticipated balance in traditional IRA...
Replies: 7
Views: 929

Backdoor Roth with unanticipated balance in traditional IRA...

Here's my particular scenario: - Have been doing backdoor Roth contributions/rollovers for multiple years - Began Jan 1 2015 with a zero balance in Traditional IRAs - In March '15, did a 5500 contribution to Traditional IRA and then converted it into a Roth a couple of days later. (Same as all the o...
by ljwobker
Fri Feb 12, 2016 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA withdrawls of contributions - how to account/track?
Replies: 14
Views: 1339

Re: Roth IRA withdrawls of contributions - how to account/track?

The mega backdoors are basis in the Roth IRA just like a conversion is basis in the Roth IRA. But you need to track regular contribution basis separately from conversion basis because Form 8606 requires the type of basis to be recorded on separate lines (line 22 for regular and 24 for conversion ba...
by ljwobker
Fri Feb 05, 2016 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA withdrawls of contributions - how to account/track?
Replies: 14
Views: 1339

Re: Roth IRA withdrawls of contributions - how to account/track?

OK - helpful and I'm making at least some progress finding the records I need. One question/confirmation: in a number of cases I have done the "mega-backdoor" - are you saying that after 5 years I can treat that entire conversion as basis? Or do I still have to track the component of that ...
by ljwobker
Thu Feb 04, 2016 11:37 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA withdrawls of contributions - how to account/track?
Replies: 14
Views: 1339

Re: Roth IRA withdrawls of contributions - how to account/track?

Argh. Is there any chance that the custodians are required to keep this information intact as money flows around? I'd like to think I keep pretty good records, but I don't have every tax form from 15+ years ago to tell me whether the last year I made a "regular contribution" was 2000 or 20...
by ljwobker
Thu Feb 04, 2016 11:03 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA basis
Replies: 26
Views: 11530

Re: Roth IRA basis

I'm re-opening/bumping this thread because I have *exactly* the same question as madbrain does immediately above me...
by ljwobker
Thu Feb 04, 2016 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA withdrawls of contributions - how to account/track?
Replies: 14
Views: 1339

Re: Roth IRA withdrawls of contributions - how to account/track?

See Fairmark's Roth distribution page: m See Alan S post on Roth IRA Basis: https://www.bogleheads.org/forum/viewtopic.php?p=1478231#p1478231 No, don't use the 8606 form by itself. I know your post was about Roth IRA. Do you have any assets outside of tax advantaged accounts? Penalty free withdrawa...
by ljwobker
Thu Feb 04, 2016 10:43 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA withdrawls of contributions - how to account/track?
Replies: 14
Views: 1339

Roth IRA withdrawls of contributions - how to account/track?

I'm starting to think about how to fund my retirement before I get to the normal 401k/IRA 59 1/2 year old stuff. One potentially attractive idea would be to start taking funds out of my Roth IRA accounts, as they are penalty free when you withdraw the contributions (the earnings must be left in the ...
by ljwobker
Sun Dec 22, 2013 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: job change, 401k and IRA questions...
Replies: 3
Views: 296

job change, 401k and IRA questions...

Income is too high to contribute directly to a Roth, but I do a Traditional->Roth backdoor each year. I have a significant amount of money in an employer 401k account, and absent other concerns, if I changed jobs I would just roll this over into an IRA. I'm trying to understand if: 1) there's any re...
by ljwobker
Wed Jan 30, 2013 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: withdrawl from 401k before 59 1/2?
Replies: 3
Views: 817

withdrawl from 401k before 59 1/2?

I'm having trouble finding anything on the interwebz that covers this... but is there a general consensus as to whether starting withdrawls (via the SEPP method) from a 401k is a reasonable part of an early retirement? It's pretty clear to me that after 59.5 (assuming the funds are built up) you get...
by ljwobker
Fri Sep 07, 2012 9:29 pm
Forum: Personal Finance (Not Investing)
Topic: 401k -> tIRA -> Roth IRA vs 401k -> Roth IRA
Replies: 8
Views: 1320

Re: 401k -> tIRA -> Roth IRA vs 401k -> Roth IRA

I got an email back today from TDA that implied they WILL accept direct transfers from a 401k into a Roth IRA... so I'm going to double check and explictly show them the URL where it says "no"... maybe there's some details missing or maybe the link is just wrong... I'll post back once I ge...
by ljwobker
Fri Sep 07, 2012 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: 401k -> tIRA -> Roth IRA vs 401k -> Roth IRA
Replies: 8
Views: 1320

Re: 401k -> tIRA -> Roth IRA vs 401k -> Roth IRA

Short version: this entire conversation involves only after tax money. Longer version: I am indeed talking of an in-service rollover of after-tax 401k funds. Unless I've lost my mind this removes the concerns about this not being the "right" decision... Regarding the TDA issue: from: m *At...
by ljwobker
Fri Sep 07, 2012 8:47 am
Forum: Personal Finance (Not Investing)
Topic: 401k -> tIRA -> Roth IRA vs 401k -> Roth IRA
Replies: 8
Views: 1320

401k -> tIRA -> Roth IRA vs 401k -> Roth IRA

My IRA provider (TDAmeritrade) does not allow direct roll-in's from my 401k plan, so I'm left with two suboptimal choices... 1) roll the 401k into a traditional IRA, then roll that into a Roth, all at TDA. 2) open a new Roth IRA somewhere that does allow direct roll-ins, then roll THAT Roth IRA into...
by ljwobker
Tue Sep 04, 2012 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: after-tax 401k contributions into Roth... couple more Q's...
Replies: 5
Views: 644

Re: after-tax 401k contributions into Roth... couple more Q'

Sorry - I really meant to ask about isolating the basis from the existing 401k funds. That account will have a significant amount of pre-tax money in it... my confusion is with whether/how I need to isolate the pre-tax vs. after-tax funds from that account. I've re-read the Fairmark article and it's...
by ljwobker
Tue Sep 04, 2012 9:35 am
Forum: Personal Finance (Not Investing)
Topic: after-tax 401k contributions into Roth... couple more Q's...
Replies: 5
Views: 644

Re: after-tax 401k contributions into Roth... couple more Q'

From: http://www.tdameritrade.com/faq/transfer.html *At this time, TD Ameritrade is unable to directly roll over a qualified retirement plan to a Roth IRA. Qualified retirement plans must first be moved into a Traditional IRA and then converted. The main question I'm still looking for help with is w...
by ljwobker
Mon Sep 03, 2012 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: after-tax 401k contributions into Roth... couple more Q's...
Replies: 5
Views: 644

after-tax 401k contributions into Roth... couple more Q's...

So thanks to the nameless dozens whose posts I've been reading... I've just about convinced myself that taking a large chunk of salary and going the after-tax-401k --> Roth IRA path makes sense for me. I'd love to have people shoot holes in my logic if they exist, or confirm that what I understand i...
by ljwobker
Mon Sep 03, 2012 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: 401k choices...
Replies: 10
Views: 1454

Re: 401k choices...

any chance your company offers a "self directed" approach? This is basically an account where you make your own investment decisions with the money that's in the account... you can buy (almost) any security within the account and still get the tax benefits. I do that with mine, and I basic...
by ljwobker
Wed Mar 10, 2010 11:27 am
Forum: Personal Finance (Not Investing)
Topic: HSA contributions: how to manage early-year expenses?
Replies: 4
Views: 956

Yeah, I think the easiest thing is to just pay from taxable funds up front, then just wait until the payroll deduction "catches up" and reimburse myself. I was used to the FSA where (at least in our version) the full amount you intended to contribute via payroll deductions was immediately ...
by ljwobker
Wed Mar 10, 2010 10:17 am
Forum: Personal Finance (Not Investing)
Topic: HSA contributions: how to manage early-year expenses?
Replies: 4
Views: 956

HSA contributions: how to manage early-year expenses?

This is our first year on the HSA, so still figuring things out. ;-( I'm setup for payroll deduction to the tune of $5k -- obviously spread out across the whole year. Our max out-of-pocket deductible for medical is $3k. I need to have (thankfully minor) surgery early this year, which will use the en...
by ljwobker
Sat Dec 06, 2008 5:49 pm
Forum: Investing - Help with Personal Investments
Topic: thoughts on depressed muni prices?
Replies: 8
Views: 2476

thoughts on depressed muni prices?

I'm looking for what people think about adding to positions in munis, specifically in the muni CEF funds that have been significantly depressed in price recently. I've got moderately large positions in several muni CEFs already (and some of them have gotten completely whacked) and I'm trying to figu...