Search found 10777 matches

by DSInvestor
Tue Jun 19, 2018 3:01 pm
Forum: Investing - Theory, News & General
Topic: Advice on Roth conversions
Replies: 18
Views: 802

Re: Advice on Roth conversions

Yes, you're eligible for Roth conversions. Earned income (compensation) is required for IRA contributions but not required for Roth conversions. Roth conversions would be taxable by Fed and/or your state. State tax treatment of Roth conversions vary by state but I believe most states that have a sta...
by DSInvestor
Tue Jun 19, 2018 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: How to Amend a 2016 tax return?
Replies: 5
Views: 257

Re: How to Amend a 2016 tax return?

I amended my 2017 tax return using my tax software and it was easy. I forgot to check a box on my 1099-R to advise that it was a Roth conversion. If you amend your 2016 tax return for the ST capital loss, be aware that there may be ripple effects that could flow into your 2017 tax return. For exampl...
by DSInvestor
Sat Jun 16, 2018 10:04 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard admiral shares
Replies: 17
Views: 1177

Re: Vanguard admiral shares

Vanguard admiral shares of index funds have a 10K minimum initial investment. Once you're in the admiral shares, you can add any amount, as little as $1. Vanguard actively managed funds like Wellesley Income, Wellington, Intermediate Term Tax exempt bond have a 50K minimum initial investment. The mi...
by DSInvestor
Thu Jun 14, 2018 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Midyear switch from sole prop to W2 income - 401k implications
Replies: 2
Views: 141

Re: Midyear switch from sole prop to W2 income - 401k implications

The 401k at the employer and her solo 401k have separate 55K limits. The 18.5K employee salary deferral limit is shared across both plans. If her employer plan is high cost, she could limit her workplace employee contributions to max out the employer match and then top off the employee contribution ...
by DSInvestor
Wed Jun 13, 2018 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Should i try to convert my taxable investment account to Roth IRA
Replies: 1
Views: 204

Re: Should i try to convert my taxable investment account to Roth IRA

You cannot convert assets in taxable to Roth IRA. You can sell assets in taxable (capital gains tax event) and use the cash proceeds to contribute to IRA. If your income is too high to contribute directly to Roth IRA, you could contribute $5500/yr (assuming age < 50) and then convert to Roth IRA. Th...
by DSInvestor
Wed Jun 13, 2018 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: SEP Contributions for Sole Proprietorship
Replies: 5
Views: 276

Re: SEP Contributions for Sole Proprietorship

SEP-IRA assets can be converted to Roth IRA at any time. However, the conversion is taxable and if your income is high enough for you to consider backdoor into Roth IRA, the conversion income may be taxed at a high rate Fed and state. If you choose to lower your current tax liability and not convert...
by DSInvestor
Wed Jun 13, 2018 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Confused about 2018 capital gains tax rules
Replies: 11
Views: 1265

Re: Confused about 2018 capital gains tax rules

Not sure about your understanding or if your wording is not precise so some comments on the statements above 1) true, more or less 2)your capital gains are taxed based on your income level INCLUDING the gains 3)if your income (INCLUDING capital gains) minus deductions (taxable income) is less than ...
by DSInvestor
Tue Jun 12, 2018 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Ways to reduce MAGI with s-corp
Replies: 6
Views: 376

Re: Ways to reduce MAGI with s-corp

Is your spouse an employee of the S-Corp? If spouse does some work for the S-Corp, consider adding spouse to payroll which opens up Solo 401k for another person. If spouse does not currently work or has a job with no employer sponsored retirement plan, this could allow a big Solo 401k contribution e...
by DSInvestor
Sat Jun 09, 2018 1:16 am
Forum: Personal Finance (Not Investing)
Topic: How much to budget for a week long vacation for 2?
Replies: 79
Views: 4250

Re: How much to budget for a week long vacation for 2?

The enemy of a good plan is the dream of the perfect plan. - Carl von Clausewitz
by DSInvestor
Fri Jun 08, 2018 10:50 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need an umbrella insurance policy?
Replies: 16
Views: 2059

Re: Do I need an umbrella insurance policy?

My insurance company required me to have at least 300K/300K liability on my auto policy before they would write an umbrella policy for me. 300K/300K is well above my state's minimum coverage for liability on auto policies.

My umbrella policy costs me about $120/yr. What did your quotes come in at?
by DSInvestor
Fri Jun 08, 2018 10:43 pm
Forum: Investing - Theory, News & General
Topic: Withdraw from TIRA or Roth, it doesn't matter?
Replies: 14
Views: 1133

Re: Withdraw from TIRA or Roth, it doesn't matter?

That's one of the things that led me to think more about this and come to the realization that it ends up not mattering which source is used for spending. This is my first year of doing conversions and I had previously been thinking that it should only be done near end of the year in order to know ...
by DSInvestor
Fri Jun 08, 2018 10:32 am
Forum: Investing - Theory, News & General
Topic: Withdraw from TIRA or Roth, it doesn't matter?
Replies: 14
Views: 1133

Re: Withdraw from TIRA or Roth, it doesn't matter?

Given that you’re younger than 59.5, there is a difference between TIRA/457. I believe one can withdraw from 457b before age 59.5 without penalty. Withdrawal from TIRA before 59.5 is subject to early withdrawal penalty. I think OP is aware of this so this is for the benefit of other readers. Roth co...
by DSInvestor
Wed May 30, 2018 10:25 am
Forum: Personal Finance (Not Investing)
Topic: How much is a Roth worth?
Replies: 14
Views: 2434

Re: How much is a Roth worth?

We have tricky tax rules for retirement accounts and Roth contributions do not always come at a cost in higher taxes. For example, a taxpayer is covered by an employer plan like 401k and has income that a) does not allow any TIRA deduction and b) allows for full Roth IRA contribution. In this case, ...
by DSInvestor
Sat May 26, 2018 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Just wanted to clarify how taxation works on LTCG rate and Roth conversion
Replies: 20
Views: 1216

Re: Just wanted to clarify how taxation works on LTCG rate and Roth conversion

Are you on a healthcare exchange health insurance plan that would allow you to get the Premium Tax Credit? If so, make sure you run your numbers with this in mind. The premium tax credit can be worth many thousands of dollars depending on your tax situation and you don't want to lose all of this sub...
by DSInvestor
Wed May 09, 2018 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Can I fund my solo 401k with mutual fund shares I already own?
Replies: 31
Views: 1259

Re: Can I fund my solo 401k with mutual fund shares I already own?

What would be the point? I have made IRA contributions using mutual fund exchanges from my taxable account into IRA. e.g. Exchange $5500 Prime Money Market to Fund X in IRA. In this case, there is no capital gains tax event for selling the Money Market fund. I have also exchanged from a bond fund i...
by DSInvestor
Wed May 09, 2018 8:51 pm
Forum: Investing - Help with Personal Investments
Topic: Can I fund my solo 401k with mutual fund shares I already own?
Replies: 31
Views: 1259

Re: Can I fund my solo 401k with mutual fund shares I already own?

I agree with prior poster. It's not clear how your business is organized but if you were an S-Corp paying yourself a W-2 salary, be aware that the employee salary deferral contribution must be withheld from your paycheck. Once withheld from the paycheck, the S-Corp makes the employee salary deferral...
by DSInvestor
Tue May 08, 2018 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Will a Roth 401k give you more money in retirement?
Replies: 16
Views: 1217

Re: Will a Roth 401k give you more money in retirement?

The taxes on the Traditional withdrawal will not come out at a flat 25%. Assuming your Traditional withdrawals are you only source of income, some of it will be taxed at 0%, some at 10%, some at higher tax rates as you break into higher tax brackets. For example, the current tax system allows 24K st...
by DSInvestor
Tue May 08, 2018 11:10 am
Forum: Investing - Help with Personal Investments
Topic: Converting Admiral fund to ETF
Replies: 24
Views: 1554

Re: Converting Admiral fund to ETF

Portfolio is about 100k in stocks I want to get rid of some REITs, but keep a little bit for diversification. I know there are different opinions about it ... You do not need to hold a separate REIT fund to get diversification or exposure to REIT. If you hold total market index funds like Total Sto...
by DSInvestor
Tue May 08, 2018 10:15 am
Forum: Investing - Help with Personal Investments
Topic: Converting Admiral fund to ETF
Replies: 24
Views: 1554

Re: Converting Admiral fund to ETF

How big is the overall portfolio? If portfolio is under 100K, I would suggest ditching the Global REIT fund and consolidating to Total International Stock Market Index fund VGTSX Investor shares, VTIAX Admiral shares (er=0.11%) or VXUS ETF. This would lower your expense ratio, improve tax efficiency...
by DSInvestor
Thu May 03, 2018 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Funding VG Roth IRA using VG Money Mkt Funds?
Replies: 7
Views: 608

Re: Funding VG Roth IRA using VG Money Mkt Funds?

If you and/or your spouse have compensation that will support Roth IRA contributions, it makes sense to contribute to Roth IRA. This will essentially move $6500/yr per spouse from your taxable account into Roth IRA space. While Roth conversions are taxable, the tax cost of conversion depends very mu...
by DSInvestor
Thu Apr 26, 2018 12:04 am
Forum: Investing - Theory, News & General
Topic: ETF Conversion Timing... are dividends qualified?
Replies: 2
Views: 256

Re: ETF Conversion Timing... are dividends qualified?

Vanguard's VTI ETF shares and VTSAX mutual fund shares are different share classes of the same fund. You have owned the shares of the fund for more than 60 days. Vanguard's ETF conversions in taxable accounts are not taxable events because you're just changing from one share class of the fund to ano...
by DSInvestor
Sat Apr 14, 2018 9:24 am
Forum: Investing - Help with Personal Investments
Topic: How to transition to a new asset allocation?
Replies: 8
Views: 677

Re: How to transition to a new asset allocation?

If you like the new options for bond index and REIT better than the old options, you should move immediately. IMO, a change in your asset allocation would be to change your stock/bond ratio say from 80/20 stock/bond to 60/40. Assuming you're keeping your stock/bond ratio the same, you're just swappi...
by DSInvestor
Thu Apr 12, 2018 12:10 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard 1099-R Error
Replies: 13
Views: 1067

Re: Vanguard 1099-R Error

Hello Guys, Sorry for the late reply. Got really busy. But anyways I found out that what I thought was a "re-characterization" turned out to be a "conversion" from Traditional to Roth thus the code Vanguard assigned is 02 on the 1099-R form. But the thing is when I called in for assistance and spok...
by DSInvestor
Thu Apr 12, 2018 9:27 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA conversion question
Replies: 11
Views: 748

Re: Roth IRA conversion question

It's not as simple as just considering the amount of room to top of current tax bracket. You need to consider your entire tax picture as well as implications on health insurance premium (medicare and/or ACA premium tax credits). For example, if you qualify for an ACA premium tax credit without conve...
by DSInvestor
Tue Apr 10, 2018 1:36 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard 1099-R Error
Replies: 13
Views: 1067

Re: Vanguard 1099-R Error

If you converted the assets in the Traditional IRA to Roth IRA, then the 1099R is correct as it reports the conversions. The conversion may or may not be taxable depending on whether you have IRA basis. IRA basis is the amount of non-deductible contributions you have made. If you were covered by an ...
by DSInvestor
Tue Apr 10, 2018 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Just paid off my debt, have some questions going forward
Replies: 29
Views: 1796

Re: Just paid off my debt, have some questions going forward

IRS page on Roth IRA Income limits: https://www.irs.gov/retirement-plans/roth-iras For 2017 tax year, Roth IRA contribution eligibility phases out at MAGI of 186K. No 2017 Roth IRA contributions if MAGI exceeds 196K. For 2018 tax year, Roth IRA contribution eligibility phases out at MAGI at 189K. N...
by DSInvestor
Tue Apr 10, 2018 10:49 am
Forum: Personal Consumer Issues
Topic: Selling audio gear on ebay, 7-day auction or "30-day Buy it now"?
Replies: 20
Views: 1263

Re: Selling audio gear on ebay, 7-day auction or "30-day Buy it now"?

I think there is a web site called AUDIOGON.COM which focuses on high end and maybe vintage audio equipment. I am not affiliated with the site and have never used it.
by DSInvestor
Tue Apr 10, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Just paid off my debt, have some questions going forward
Replies: 29
Views: 1796

Re: Just paid off my debt, have some questions going forward

IRS page on Roth IRA Income limits: https://www.irs.gov/retirement-plans/roth-iras For 2017 tax year, Roth IRA contribution eligibility phases out at MAGI of 186K. No 2017 Roth IRA contributions if MAGI exceeds 196K. For 2018 tax year, Roth IRA contribution eligibility phases out at MAGI at 189K. No...
by DSInvestor
Tue Apr 10, 2018 10:00 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing advice
Replies: 10
Views: 985

Re: Rebalancing advice

Sigh. The last time I posted here the google sheet was a suggestion of some of the frequent advice posters. I thought about that, but figured I'd take the last advice. Time to just go to a planner. This has become more trouble than its worth. And as they always say....'you get what you pay for'. Wi...
by DSInvestor
Tue Apr 10, 2018 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Help with AA across tax deferred accounts
Replies: 4
Views: 297

Re: Help with AA across tax deferred accounts

Are those listed funds available in all accounts? If not, please let us know what investment options are available in each account with fund names, tickers and expense ratios. The recommendations we give may differ depending on what's available. For example, if the 401k is loaded with high cost fund...
by DSInvestor
Mon Apr 09, 2018 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Managing Retirement Accounts for RMDs in a (Possibly) Declining Stock Market
Replies: 5
Views: 664

Re: Managing Retirement Accounts for RMDs in a (Possibly) Declining Stock Market

If you need to take an RMD from a 401k that is 100% stocks but do not want to sell stocks, simply place a second trade in your IRA to exchange bonds for stocks. These two actions combined will effectively have you selling bonds rather than stocks to satisfy your RMD. example: In 401k, sell 40K Stock...
by DSInvestor
Sat Apr 07, 2018 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: Re characterize or reverse traditional IRA contribution
Replies: 5
Views: 294

Re: Re characterize or reverse traditional IRA contribution

Thanks! Sorry I was probably not clear. I am MFJ and my wife doesn't work, so based on our household income , I am eligible for a full Roth contribution. However I wanted to contribute to tIRA , just to save a bit on taxes. If your tax software tells you that you can deduct $1300 in Tradtional IRA ...
by DSInvestor
Sat Apr 07, 2018 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA and Roth together
Replies: 2
Views: 323

Re: Traditional IRA and Roth together

You may be able to get your IRA custodian to code the IRA contribution made last week as a 2018 Traditional IRA contribution. This avoids the issue of having to remove excess contributions and associated earnings. If you filed your 2017 tax return and reported a Traditional IRA contribution, you can...
by DSInvestor
Sat Apr 07, 2018 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: Best way to backdoor Roth?
Replies: 9
Views: 927

Re: Best way to backdoor Roth?

Welcome to the forum! Any gains in the IRA are taxable, so most here recommend fully funding the IRA ($5500) and then essentially converting immediately - as soon as funds clear. This minimizes the potential for any gains. Wiki here: https://www.bogleheads.org/wiki/Backdoor_Roth_IRA I second this a...
by DSInvestor
Sat Apr 07, 2018 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: Re characterize or reverse traditional IRA contribution
Replies: 5
Views: 294

Re: Re characterize or reverse traditional IRA contribution

Traditional IRA contributions are not limited by high income. If you are covered by an employer plan, your Traditional IRA deduction phases out with high income. You can make TradIRA contribution, but you would not be able to deduct them. If you had income over 72K, are filing as single and was cove...
by DSInvestor
Sat Apr 07, 2018 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: Error in paul merriman's Fine-Tuning-Tables -- 100% bond returns?
Replies: 3
Views: 280

Re: Error in paul merriman's Fine-Tuning-Tables -- 100% bond returns?

What bonds or bond funds does his 100% bond portfolio hold?

Vanguard Total Bond Market VBMFX 2008 return was +5.15%
Vanguard Intermediate Term Treasury VFITX 2008 return was +13.32%

If his bond portfolio was heavy in intermediate term treasury bonds, it could have returned 8%.
by DSInvestor
Sat Apr 07, 2018 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Tax implications of recharacterizing improper Roth contributions?
Replies: 3
Views: 209

Re: Tax implications of recharacterizing improper Roth contributions?

If you or your spouse were not covered by an employer sponsored retirement plan, you may be eligible for Traditional IRA deduction. If so, your tax liability for 2017 tax year may be reduced. If you were covered by an employer plan, your TIRA deduction may be phased out. If any part of the TIRA cont...
by DSInvestor
Fri Apr 06, 2018 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Going from W2 to 1099 Contract Labor
Replies: 5
Views: 414

Re: Going from W2 to 1099 Contract Labor

I do prepare our own taxes and it sounds like unless you have substantial revenue, where paying yourself a reasonable salary would save you large amounts of money in lower payroll taxes, the sole proprietor would be the way to go? Yep, you have to compare all the savings in payroll taxes under S-Co...
by DSInvestor
Fri Apr 06, 2018 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: Entire $24,000 SEP IRA in Vanguard Health Care Fund
Replies: 34
Views: 2517

Re: Entire $24,000 SEP IRA in Vanguard Health Care Fund

Past performance is not indicative of future results. You will see something to that effect in all mutual fund prospectuses. Here's a something from the prospectus for the Vanguard Healthcare fund: These average annual returns reflect past performance of common stocks; you should not regard them as ...
by DSInvestor
Fri Apr 06, 2018 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Going from W2 to 1099 Contract Labor
Replies: 5
Views: 414

Re: Going from W2 to 1099 Contract Labor

Sole proprietor (Schedule C/SE) is pretty simple and less costly than using a corporation. S-Corp will require additional administrative burden to file S-Corp tax returns, payroll etc. If you prepare your own tax returns, it is pretty easy to continue to prepare your own returns with schedule C/SE. ...
by DSInvestor
Wed Apr 04, 2018 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Large capital loss
Replies: 14
Views: 1106

Re: Large capital loss

That extra 3K/yr of ordinary income will allow you to convert an extra 3K/yr to Roth IRA at a lower tax cost. If your marginal tax rate is higher than your capital gains tax rate, you're coming out ahead with the 3K/yr ordinary income reduction.
by DSInvestor
Wed Apr 04, 2018 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Another Backdoor Roth Conversion Question
Replies: 5
Views: 417

Re: Another Backdoor Roth Conversion Question

Thanks guys, didn't realize I could stash that extra 'earnings' into the Roth. I was under the assumption that the backdoor could only be $5500. Lesson learned. The IRA contribution amount is limited to $5500 for those under age 50. There is no limit for conversions. If you contributed $5500 to IRA...
by DSInvestor
Wed Apr 04, 2018 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Longterm Capital Gains when moving portfolio to Vanguard?
Replies: 9
Views: 793

Re: Longterm Capital Gains when moving portfolio to Vanguard?

While Long Term Capital Gains (LTCG) may be taxed at 0% for federal tax purposes, that LTCG income is included in your Adjusted Gross Income (AGI). If your state has a state income tax, your capital gains will likely be taxed as ordinary income by your state. The higher AGI associated with the LTCG ...
by DSInvestor
Tue Apr 03, 2018 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: Another Backdoor Roth Conversion Question
Replies: 5
Views: 417

Re: Another Backdoor Roth Conversion Question

There was no need to remove the $0.32 from the Roth IRA but since you did, you now have a withdrawal from the Roth IRA as well. You may have received a 1099-R for the Traditional IRA to Roth IRA conversion and another 1099-R showing the distribution from the Roth IRA. When filing your taxes for 2017...
by DSInvestor
Tue Apr 03, 2018 11:44 am
Forum: Investing - Help with Personal Investments
Topic: Tax Deduction on past Roth 401k contributions - HELP!
Replies: 4
Views: 338

Re: Tax Deduction on past Roth 401k contributions - HELP!

Is there any chance that the Traditional contributions shown there are employer contributions rather than the employee salary deferral of 18-18.5K? Employer contributions to retirement plans are always traditional and they reduce the net income of the business. I confess that I am more familiar with...
by DSInvestor
Mon Apr 02, 2018 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversion deadline?
Replies: 2
Views: 209

Re: Roth conversion deadline?

Roth conversions can be done at any time. However if one wants a Roth conversion to be counted for tax year 2018, the conversion must be done by DEC 31, 2018. If you were covered by employer plan for 2017, your 2017 Traditional IRA contribution would be non-deductible (IRA basis) and tracked on form...
by DSInvestor
Mon Apr 02, 2018 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion Question
Replies: 7
Views: 482

Re: Roth Conversion Question

Those who are subject to RMD must take RMD first before doing any Roth conversions. The RMD cannot be converted to Roth. In your example, where they convert 150K to stay in the 24% bracket should be adjusted to 150K of additional income where conversion amount is 150K - RMD amount. Having higher AGI...
by DSInvestor
Sat Mar 31, 2018 10:40 am
Forum: Investing - Help with Personal Investments
Topic: Explain one more time how balance funds work
Replies: 37
Views: 3259

Re: Explain one more time how balance funds work

My explaining is subpar for sure - which leads to confusion by the reader. It shows I too am confused. Let say you have two portfolios - 1. A Balanced Fund (BF) of 60-40 and 2. A 3 Fund Portfolio (3FP) of 60-40 which is currently at exactly 60-40 (no rebalncing needed) RMD comes along and you must ...
by DSInvestor
Fri Mar 30, 2018 12:00 am
Forum: Investing - Theory, News & General
Topic: 401k vs Traditional IRA
Replies: 34
Views: 1691

Re: 401k vs Traditional IRA

If your 401k offers an employer match that requires your contribution, you should use the 401k. If you're covered by an employer plan, you may not be able to deduct IRA contributions if your income exceeds certain limits. See IRS page on IRA deduction limits: https://www.irs.gov/retirement-plans/ira...
by DSInvestor
Thu Mar 29, 2018 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Another TLH Situation
Replies: 3
Views: 256

Re: Another TLH Situation

See FAIRMARK.COM's wash sales 101 page: http://www.fairmark.com/capgain/wash/ws101.htm General Rule In general you have a wash sale if you sell stock at a loss, and buy substantially identical securities within 30 days before or after the sale. Example: On March 31 you sell 100 shares of XYZ at a lo...