Search found 19 matches

by shermanpie
Sun Apr 01, 2018 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Hit by AMT due to 1 year RSU vesting cliff
Replies: 29
Views: 2453

Re: Hit by AMT due to 1 year RSU vesting cliff

MrJones wrote: ↑
Sun Apr 01, 2018 4:19 am
Non-cliff won in this case. What am I missing here?
You're investing extra money in your scenarios. Investing it earlier will give you more gains. You could do the same thing in the cliff scenario (buy extra stock each quarter).
by shermanpie
Sat Mar 31, 2018 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: Hit by AMT due to 1 year RSU vesting cliff
Replies: 29
Views: 2453

Re: Hit by AMT due to 1 year RSU vesting cliff

Not correct. You're taxed on 100% of your RSU's value at sale. Some portion is taxed as ordinary income, and some portion as long term CG assuming you hold it long enough. You want to minimize the former and maximize the latter. In a rising stock environment, this happens if you vest sooner (eg: mo...
by shermanpie
Thu Mar 08, 2018 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct incorrectly handling Roth recharacterizations
Replies: 15
Views: 1456

Re: TaxAct incorrectly handling Roth recharacterizations

TaxAct responded, saying it's a bug that they're not asking for enough information in this situation. They provided a workaround (amounts are still wrong in various places, but the forms that will be filed are correct): Enter a basis for the Roth conversion Enter the amount recharacterized under "IR...
by shermanpie
Sun Mar 04, 2018 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct incorrectly handling Roth recharacterizations
Replies: 15
Views: 1456

Re: TaxAct incorrectly handling Roth recharacterizations

I've deleted and reentered those forms at least 5 times now.
by shermanpie
Sun Mar 04, 2018 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct incorrectly handling Roth recharacterizations
Replies: 15
Views: 1456

Re: TaxAct incorrectly handling Roth recharacterizations

What was the screen you missed?

Also, did you have all 3 of the things I mentioned above?

Calling them is probably the way to go.
by shermanpie
Sat Mar 03, 2018 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct incorrectly handling Roth recharacterizations
Replies: 15
Views: 1456

TaxAct bug with SS earnings, IRA contribution, and IRA conversion recharacterizations

I found where to print the worksheets, and think I found the mistakes. It starts with Publication 590-A, Append B "Worksheets for Social Security Recipients Who Contribute to a Traditional IRA". Worksheet 1, Line 1 is including the 45k, which then appears in the MAGI total. I can't find any justific...
by shermanpie
Tue Feb 27, 2018 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct incorrectly handling Roth recharacterizations
Replies: 15
Views: 1456

Re: TaxAct incorrectly handling Roth recharacterizations

Did you put the entire amount on line 16? The instructions on form 8606 line 16 say "Do not include amounts you later recharacterized back to traditional, SEP, or SIMPLE IRAS in 2017 or 2018." Form 8606 line 16 shows $15k. It's the same value on Form 1040 line 15b. As unlikely as it is, I'm really ...
by shermanpie
Sun Feb 25, 2018 11:36 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct incorrectly handling Roth recharacterizations
Replies: 15
Views: 1456

Re: TaxAct incorrectly handling Roth recharacterizations

I reentered and checked everything multiple times.

If I just enter a $15k conversion without any recharacterization everything comes out correct. SS is only taxed ~45%, and we get the full IRA deductions.
by shermanpie
Sun Feb 25, 2018 12:14 am
Forum: Personal Finance (Not Investing)
Topic: TaxAct incorrectly handling Roth recharacterizations
Replies: 15
Views: 1456

Re: TaxAct incorrectly handling Roth recharacterizations

I meant the taxable income and AGI don't include the 45k. Other than the SS and IRA problems they're correct.

Yes, Box 7 was code N. It looks like the Vanguard 1099-R forms are correct.

TaxAct fills out Form 8606 correctly, too, showing only 15k.
by shermanpie
Sat Feb 24, 2018 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct incorrectly handling Roth recharacterizations
Replies: 15
Views: 1456

TaxAct incorrectly handling Roth recharacterizations

Has anybody successfully used TaxAct this year when they had Roth recharacterizations? I did the Roth IRA conversion horse race in 2017 for the first (and last) time, and am now trying to fill out our taxes (MFJ). I converted $60k, and then characterized $45k of it (ignoring gains). Total income, ad...
by shermanpie
Sat Jul 22, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: When to switch from Roth 401k to traditional 401k
Replies: 21
Views: 1839

Re: When to switch from Roth 401k to traditional 401k

Here's the more relevant TFB article: Roth 401(k) for People Who Contribute the Max Maxing your Roth 401k can make sense at higher incomes, but conditions need to be just right. Roth is probably a bad idea right now if any of the following apply: You are actually in the 33% bracket (instead of top e...
by shermanpie
Sat Jul 22, 2017 12:31 am
Forum: Personal Consumer Issues
Topic: Would you let your teenager spend all his savings on a gaming computer?
Replies: 123
Views: 8600

Re: Would you let your teenager spend all his savings on a gaming computer?

$1500 is cheap for the potential upside. You will probably spend $100k+ on your kid to give them the best in life. Compare the computer to the cost of other "enrichment" things like a year of music lessons. I build my first computer at ~14 and through a very connected chain of events I'm now a highl...
by shermanpie
Wed Jul 19, 2017 4:01 pm
Forum: Investing - Theory, News & General
Topic: New Swensen Op Ed "Wall Street Profits by Putting Investors in the Slow Lane"
Replies: 15
Views: 1874

Re: New Swensen Op Ed "Wall Street Profits by Putting Investors in the Slow Lane"

Here is a very alternative take on this. It's an enjoyable read. https://www.bloomberg.com/view/articles/2016-02-25/-flash-boys-exchange-isn-t-about-the-little-guy Brief summary: Even with the "kickback" (aka payment for order flow) these other exchanges are cheaper for you. Since you are a "retail ...
by shermanpie
Sun Jul 16, 2017 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Suspending social security & 10-year age gap strategy
Replies: 4
Views: 810

Re: Suspending social security & 10-year age gap strategy

You might check SOCIAL SECURITY MADE SIMPLE Thanks for the recommendation. The "Suspending Retirement Benefits" section had a clear example. So my math above is wrong. The the delayed retirement credits are base on the benefit amount, not the primary insurance amount. So it would work out to be 105...
by shermanpie
Sun Jul 16, 2017 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Suspending social security & 10-year age gap strategy
Replies: 4
Views: 810

Re: Suspending social security & 10-year age gap strategy

I don't know where you got the 109% increase over PIA, as the PIA amount is now moot for your father since he filed originally at age 62, and assume you are subtracting what you identified as a 15% reduction (rather than a 25% reduction) from 124%. Actually, because of the earnings test, your fathe...
by shermanpie
Sat Jul 15, 2017 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Suspending social security & 10-year age gap strategy
Replies: 4
Views: 810

Suspending social security & 10-year age gap strategy

Two part question. The context is my parents are 57 and 67 years old and have enough saved to retire today (they don't believe it, but that's another story). What's the ideal strategy for a 10-year age gap with similar PIAs? From playing with http://www.bedrockcapital.com/ssanalyze/ it looks like th...
by shermanpie
Fri Jun 23, 2017 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Not
Replies: 14
Views: 1227

Re: Roth 401k or Not

No, they assume you're investing them in a taxable account. My analysis is for people who are out of tax-advantaged space (which I assume people in the 33% bracket would be). In this case I'm skeptical about the phrasing of investing the savings in a Roth IRA, since that probably should have been ma...
by shermanpie
Fri Jun 23, 2017 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Not
Replies: 14
Views: 1227

Re: Roth 401k or Not

I made the mistake of doing some spreadsheet math on this to see how much I probably lost by doing roth 401k the last 5 years or so.... :annoyed The spreadsheet math for this is actually really hard to get right. Since the "extra" money in your roth account is free of tax drag, eventually the highe...
by shermanpie
Fri Feb 10, 2017 8:03 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8524

Re: Theory on whether to go Roth 401k

it absolutely doesn't matter how long the funds are in any account. This is definitely not true. One of the benefits of tax advantaged accounts is an effectively higher rate of return through either the deferral or non-taxation of dividends. If invested long enough, this effect will dominate tax an...