Search found 728 matches

by teen persuasion
Sat Mar 23, 2019 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Do the wife and I have house fever? Want to buy 550k home
Replies: 27
Views: 1865

Re: Do the wife and I have house fever? Want to buy 550k home

OP, I think you can do it. But increasing a 5 to 30 minute commute is significant. Ultimately, buying the house is a lifestyle choice. If the calculator says that financially it's a wash, then go off of what lifestyle you'd prefer. You may want to roll your own calculator to factor in the extra cos...
by teen persuasion
Sat Mar 23, 2019 9:00 am
Forum: Personal Investments
Topic: Roth vs Traditional - Tax Bracket and 401K?
Replies: 27
Views: 1335

Re: Roth vs Traditional - Tax Bracket and 401K?

Just realized how much this new information (not yet married, one child eligible for EITC) affects things. It should imply that the OP is filing HoH, not S or MFJ. It also means he should be eligible for up to $2k CTC, with $600 nonrefundable, and $1400 refundable. Also means he is eligible to contr...
by teen persuasion
Sat Mar 23, 2019 7:53 am
Forum: Personal Investments
Topic: Roth vs Traditional - Tax Bracket and 401K?
Replies: 27
Views: 1335

Re: Roth vs Traditional - Tax Bracket and 401K?

In the 12% tax bracket, I would use Roth IRA. There is one exception. If you use traditional IRA and deduct your contribution from your taxable income, that might get your income low enough to take advantage of the savers credit and/or the earned income credit. I know there is information on the sa...
by teen persuasion
Tue Mar 19, 2019 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: What order to fill up retirement accounts?
Replies: 9
Views: 996

Re: What order to fill up retirement accounts?

TarHeel2002 wrote:
Tue Mar 19, 2019 1:35 pm
Can someone please give me the bullet points of why I should fill up the HSA bucket (7k) before I fill up the backdoor Roth IRA bucket (12k). Thank you!
HSA is tax free going in and coming out. Roth IRA is post tax money going in, tax free coming out.
by teen persuasion
Mon Mar 18, 2019 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Calculating cost basis of Express Scripts in Cigna merger
Replies: 45
Views: 6567

Re: Calculating cost basis of Express Scripts in Cigna merger

Posting to follow - my 88 yo father has this issue, too. My parents have already filed their taxes (with my sister's help - they don't do computers :shock: ), and received the 1099 afterwards. They'd thought this would go on their 2019 taxes. When I tried to ask about his basis, he insisted "they" j...
by teen persuasion
Thu Mar 14, 2019 8:05 pm
Forum: Personal Investments
Topic: Roth or tIRA for 25 y/o Daughter?
Replies: 16
Views: 1281

Re: Roth or tIRA for 25 y/o Daughter?

Thanks for all the replies. A number of questions were posed in them and here are replies: -Her marginal tax rate is indeed 12%. -She doesn't max out the 403 now; she's putting in $200/paycheck. Again, she's simultaneously saving for a house. - I have no idea what tax bracket she'll be in 35-40 yea...
by teen persuasion
Wed Mar 13, 2019 7:42 am
Forum: Personal Investments
Topic: Roth or tIRA for 25 y/o Daughter?
Replies: 16
Views: 1281

Re: Roth or tIRA for 25 y/o Daughter?

IRA contribution for 2018 or 2019? You say she's expecting a refund, which implies her taxes are done. She still has time to contribute for 2018 - Roth IRA wouldn't change anything tax wise, but contributing to traditional IRA would mean she should amend her tax return to capture the tax benefit. Pe...
by teen persuasion
Tue Feb 26, 2019 11:22 pm
Forum: Personal Finance (Not Investing)
Topic: Lowest Tax Possible
Replies: 46
Views: 3981

Re: Lowest Tax Possible

Do in this order: 1. If allowed, switch to an HDHP plan at your employer and contribute maximum $7000 to an HSA. 2. Contribute fully to a Roth IRA. A traditional IRA will decrease your 2019 taxes but it's not recommended. Do a search. 3. Maximize your 401k and your wife's 403b If you manage to be a...
by teen persuasion
Sat Feb 23, 2019 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Question about 2018 1099R related to 2017 401K over contribution
Replies: 5
Views: 321

Re: Question about 2018 1099R related to 2017 401K over contribution

Posting to follow - DH had a small overcontribution in 2018 (changed employers mid year). He has requested it be refunded, but we're not sure how conversant his employer is with this issue, he's definitely the first to hit it. We are still waiting to see how it gets handled, and in a bit of a holdin...
by teen persuasion
Fri Feb 22, 2019 3:30 pm
Forum: Personal Investments
Topic: 457 pre-tax or Roth, with 0% CURRENT tax rate
Replies: 8
Views: 425

Re: 457 pre-tax or Roth, with 0% CURRENT tax rate

Have you looked at how the kids influence your taxes? Three kids adds CTC * 3, or up to $6k (if under age 17) tax credit. A good portion of that can be refundable. Any way to be eligible for EITC (no idea how NOL interacts with EITC, but that AGI level might be eligible for $6k+ refundable credits)....
by teen persuasion
Fri Feb 22, 2019 9:17 am
Forum: Personal Investments
Topic: Employer 401K
Replies: 20
Views: 2523

Re: Employer 401K

Expense ratios?
by teen persuasion
Thu Feb 21, 2019 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: How to finance car purchase for teen
Replies: 60
Views: 2763

Re: How to finance car purchase for teen

Definitely search out the parking situation on/near campus. Having a car at college can be more trouble than it's worth. When my dad replaced his car, he let me take the old one to school with me in my sophomore year, so I could drive home on weekends for a part time job. Even with a parking pass fo...
by teen persuasion
Tue Feb 19, 2019 3:01 pm
Forum: Personal Investments
Topic: Are traditional 401k's of any value from a tax perspective?
Replies: 43
Views: 2548

Re: Are traditional 401k's of any value from a tax perspective?

When thinking about a traditional 401k from a tax perspective is there a real benefit? There is for us. It's all about EITC phaseout. EITC is a refundable credit, we can get a refund of the credit even if we owe little or no tax. It has a 21% phaseout rate, and is tested on both line 7 wages and AG...
by teen persuasion
Tue Feb 19, 2019 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: My Mortgage = Is it a problem?
Replies: 49
Views: 3683

Re: My Mortgage = Is it a problem?

OP, you expect your combined income to increase by $20k+ in the next 5 years. Hold spending steady and direct all increases in income to pay down your mortgage (or increase college funds, or increase retirement contributions, or all three). Another way to look at prepaying mortgage before retirement...
by teen persuasion
Sun Feb 17, 2019 12:21 pm
Forum: Personal Investments
Topic: Help me with the Trad vs Roth 401k Math
Replies: 79
Views: 2262

Re: Help me with the Trad vs Roth 401k Math

OP, another thing to consider is whether contributing to pre-tax 401k can lower AGI enough to make you eligible for credits that phaseout. One example is the Retirement Saver's credit. Another is EITC. They are both also credits one can likely not claim in retirement (as they both require earned inc...
by teen persuasion
Sat Feb 16, 2019 9:56 am
Forum: Personal Investments
Topic: Employer 401K
Replies: 20
Views: 2523

Re: Employer 401K

You mentioned retiring early. Have you seen MMM's Shockingly Simple Math behind early retirement post? http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ The rate at which you save is directly related to how quickly you reach FIRE. Yes, employer match % is ...
by teen persuasion
Sat Feb 16, 2019 9:34 am
Forum: Personal Investments
Topic: 529 withdrawal what comes out first -what comes out first principle or gains
Replies: 11
Views: 736

Re: 529 withdrawal what comes out first -what comes out first principle or gains

How does your state handle withdrawals for non college expenses? My state has decided that they would be nonqualified withdrawals, and subject to recapture of the credit.
by teen persuasion
Fri Feb 15, 2019 11:15 am
Forum: Personal Finance (Not Investing)
Topic: Invest or 529 PLan
Replies: 63
Views: 1872

Re: Invest or 529 PLan

When one 529 plan thread gets locked another gets started :) bg5, Every time someone asks a question about 529 plans it turns into a 12 page debate. My own personal thoughts: - By using a 529 you can take advantage of 20+ years of tax-free growth + a state deduction (in many states) - Folks will te...
by teen persuasion
Thu Feb 14, 2019 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Bad Idea or Good Idea? - Investing in 529 College Savings Plan
Replies: 70
Views: 3947

Re: Bad Idea or Good Idea? - Investing in 529 College Savings Plan

If you know your income will exclude you from financial aid, then using a 529 makes sense for the tax savings. But if you might be eligible for aid, funding a 529 hurts your aid and diverts $$ away from retirement, possibly straining later finances. Most of the articles touting 529 accounts don't h...
by teen persuasion
Thu Feb 14, 2019 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Bad Idea or Good Idea? - Investing in 529 College Savings Plan
Replies: 70
Views: 3947

Re: Bad Idea or Good Idea? - Investing in 529 College Savings Plan

I don't hate 529s, but the challenge is deciding if funding a 529 will be good or bad for your situation. The advantages are touted often, and the potential cost of college is frightening to many families, so there's a better than zero chance that some people will decide to split their savings betwe...
by teen persuasion
Wed Feb 13, 2019 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Bad Idea or Good Idea? - Investing in 529 College Savings Plan
Replies: 70
Views: 3947

Re: Bad Idea or Good Idea? - Investing in 529 College Savings Plan

Also, on the other long thread, I mentioned that if you do have some equities that have lots of appreciation in a taxable account, you could potentially gift those to your child and let the sell, pay the taxes, and take the AOTC credit. It's a nice way to get tax free gains on a taxable account (al...
by teen persuasion
Tue Feb 12, 2019 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Bad Idea or Good Idea? - Investing in 529 College Savings Plan
Replies: 70
Views: 3947

Re: Bad Idea or Good Idea? - Investing in 529 College Savings Plan

There are other variables at *low* income - when the auto EFC = zero threshold was ~$32k, we could put enough in DH's 401k to hit that threshold. No, it wasn't maxing retirement, at the time. Later when they retroactively dropped it to $23k, we couldn't afford to put the amount needed into his 401k...
by teen persuasion
Tue Feb 12, 2019 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Bad Idea or Good Idea? - Investing in 529 College Savings Plan
Replies: 70
Views: 3947

Re: Bad Idea or Good Idea? - Investing in 529 College Savings Plan

That's not how I read it - UNLESS you already max out all retirement accounts is the key phrase. If you have not maxed out all retirement accounts, putting saving in retirement is better for financial aid purposes, because retirement account balances are not reported on the FAFSA. After you've maxe...
by teen persuasion
Tue Feb 12, 2019 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Bad Idea or Good Idea? - Investing in 529 College Savings Plan
Replies: 70
Views: 3947

Re: Bad Idea or Good Idea? - Investing in 529 College Savings Plan

Is it a bad idea or a good idea to invest in a 529 College Savings Plan? 1. I have heard that having a lot of assets in a 529 College Savings Plan can hurt the chances of your child getting "free" grants and scholarships for college. Is this true? 2. Are there are any other downsides to having a 52...
by teen persuasion
Mon Feb 11, 2019 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Public Library computers
Replies: 51
Views: 3900

Re: Public Library computers

We have installed Deep Freeze on the public computers in my library. Good for you! In the old days, when home Internet was unusual, there were "Internet Cafes", particularly not in the U.S., and most I went to rebooted to a known (presumably safe) state after each use. However, I have gone to publi...
by teen persuasion
Sat Feb 09, 2019 10:38 pm
Forum: Personal Investments
Topic: Whats better to hold, Roth dollars or Tax-deferred dollars ?
Replies: 84
Views: 5554

Re: Whats better to hold, Roth dollars or Tax-deferred dollars ?

OP, you need to recognize there are 2 different issues here: where is it better to CONTRIBUTE to (in the accumulation phase), and where is it better to HOLD retirement savings? Obviously everyone would prefer to hold Roth dollars, but it's more advantageous to contribute to tax deferred. Thus the an...
by teen persuasion
Tue Feb 05, 2019 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Are You Really Supposed to Use Stupid Tax Table?
Replies: 26
Views: 3134

Re: Are You Really Supposed to Use Stupid Tax Table?

Yeah, they are definitely trying to phaseout paper - I've been fielding questions right and left at the library about when we'll be getting tax forms. People could use the library computers to download and print the forms. Or print them at home. Yes, they could. We (the library) have struggled with...
by teen persuasion
Tue Feb 05, 2019 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Student financial aid and lowering net pay
Replies: 27
Views: 1123

Re: Student financial aid and lowering net pay

Maybe I was too wordy in my last post (I can be like that). Has anyone tried maxing out 401ks in the years leading up to college for both the purpose or reducing AGI to qualify for simple needs test and/or also to bulk up retirement savings under the assumption you may not have the money while your...
by teen persuasion
Tue Feb 05, 2019 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Are You Really Supposed to Use Stupid Tax Table?
Replies: 26
Views: 3134

Re: Are You Really Supposed to Use Stupid Tax Table?

Yeah, they are definitely trying to phaseout paper - I've been fielding questions right and left at the library about when we'll be getting tax forms. People could use the library computers to download and print the forms. Or print them at home. Yes, they could. We (the library) have struggled with...
by teen persuasion
Mon Feb 04, 2019 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Are You Really Supposed to Use Stupid Tax Table?
Replies: 26
Views: 3134

Re: Are You Really Supposed to Use Stupid Tax Table?

No. You are supposed to use Tax Prep Software and it figures out which stupid things to use. Yeah, they are definitely trying to phaseout paper - I've been fielding questions right and left at the library about when we'll be getting tax forms. I've received 2 emails from the federal forms program, ...
by teen persuasion
Fri Feb 01, 2019 8:03 am
Forum: Personal Finance (Not Investing)
Topic: Saying Hi and Questions on IRA on Tax
Replies: 10
Views: 606

Re: Saying Hi and Questions on IRA on Tax

If you recharacterize to tIRA, you get the deduction. If you then convert it to Roth, the value of the IRA will be added to your income for taxes, so you will increase your taxes when you convert. You will be in the exact same place, assuming the IRA doesn't change value. If it gains in value, above...
by teen persuasion
Thu Jan 31, 2019 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: Public Library computers
Replies: 51
Views: 3900

Re: Public Library computers

We have installed Deep Freeze on the public computers in my library. We scanned them all for viruses and malware before freezing them. Every time they are rebooted, they return to that state (anything downloaded in the interim is wiped). So at least once per day they are rebooted. If a patron wanted...
by teen persuasion
Thu Jan 31, 2019 10:15 am
Forum: Personal Finance (Not Investing)
Topic: When taking Social Security @62 could be wise
Replies: 191
Views: 13737

Re: When taking Social Security @62 could be wise

I think there is a subtle math/taxation error in that article ... There is indeed something screwy with the article 's figures. I get a wildly different amount for federal tax for the four years from age 62 to 66. From the article: Now, if this family were to delay taking Social Security payments u...
by teen persuasion
Tue Jan 29, 2019 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Should you always use a 529?
Replies: 63
Views: 7455

Re: Should you always use a 529?

Good thread, instead of starting my own I was hoping to get feedback on my current situation and if we should open a 529. The main questions I have are 1) does the value of the 529 count against the student for financial aid (and is that a big deal?) 2) if the kid decides not to go to college is it...
by teen persuasion
Sun Jan 27, 2019 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: $158k Income and 0 federal income tax
Replies: 40
Views: 6888

Re: $158k Income and 0 federal income tax

The partially refundable part is new this year - previously the credit was max $1k up to $1k refundable (if your income was in the right range, neither too low nor too high). Part of the enlarged credit, and the credit for other dependents, offsets the lack of personal exemptions. Presumably this "p...
by teen persuasion
Sun Jan 27, 2019 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: $158k Income and 0 federal income tax
Replies: 40
Views: 6888

Re: $158k Income and 0 federal income tax

OP, Please explain why this is a problem? It is a refundable tax credit. So, the government pays you even if your tax bill is zero. <<Total Tax Owed - $1,537 ( I could optimize this to 0 with some employee 401k deductions, but if i do too much, I will hit the 0% marginal tax rate from child tax cre...
by teen persuasion
Sat Jan 26, 2019 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: Savers Credit
Replies: 8
Views: 579

Re: Savers Credit

From your other thread, you have a combined gross income of $72k. You may have some health insurance contributions that reduce your AGI a bit. If you contribute to an HSA, that also reduces your AGI some more. You said you were both contributing to Roth IRAs and Roth 401k at work. If you switch to t...
by teen persuasion
Sat Jan 26, 2019 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: Savers Credit
Replies: 8
Views: 579

Re: Savers Credit

Look at form 8880. Only $2k of retirement contributions for each of you is considered for the credit, max $4k combined. You can contribute more, it just won't be considered. Contributing more to traditional (either 401k or IRAs) is a way to get your AGI down below $38k so you qualify for the 50% cre...
by teen persuasion
Thu Jan 24, 2019 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Student financial aid and lowering net pay
Replies: 27
Views: 1123

Re: Student fincial aid and lowering net pay

FAFSA EFC formulas : https://ifap.ed.gov/efcformulaguide/attachments/1920EFCFormulaGuide.pdf You can use this document to calculate your EFC exactly as the FAFSA does. Walking thru the steps will show you what has the greatest effect on your EFC (Expected Family Contribution). As others have mention...
by teen persuasion
Tue Jan 22, 2019 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Too Much Savings for Income Manipulation for ACA Purposes?
Replies: 84
Views: 4863

Re: Too Much Savings for Income Manipulation for ACA Purposes?

Why is everything in taxable? Put much as possible in tax advantaged accounts. Then only the withdrawals or conversions you choose to do from those accounts will count as income. Have Roth accounts to allow for lumpy expenses without going over the income cliff. Contribute to HSA but pay OOP during ...
by teen persuasion
Mon Jan 21, 2019 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Overcontribution to 401K
Replies: 8
Views: 425

Re: Overcontribution to 401K

We failed to consider that the deposit on January 3rd 2018 would be considered a 2018 contribution since the check that it came from was dated Dec 29, 2017. I'm not clear on the details here. Are you saying the payroll date was Dec 29, 2017 and the retirement contribution was deposited Jan 3, 2018?...
by teen persuasion
Sun Jan 20, 2019 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Help resolving overcontribution to 401k.
Replies: 9
Views: 648

Re: Help resolving overcontribution to 401k.

On over contributions you don't get any return, likewise, you wouldn't get the amount less losses... Not true. Excess employee deferrals must be returned with earnings. However, there are specific IRS rules on how to calculate those earnings. @Ren an employer may , but is not required to return exc...
by teen persuasion
Sat Jan 19, 2019 11:29 am
Forum: Personal Investments
Topic: Savers Credit dilemma
Replies: 18
Views: 1420

Re: Savers Credit dilemma

I thought the same thing about the example. I just figured Jill had another deduction in there somewhere. Using that example though it just seems with my numbers it would be a larger credit than $400. Gross income - 84k Contributions - 20k AGI - 64k qualifying for the 10% credit 20k x .1 = 2k I hat...
by teen persuasion
Fri Jan 18, 2019 1:52 pm
Forum: Personal Investments
Topic: 401(k) vs Taxable on a low income
Replies: 17
Views: 1363

Re: 401(k) vs Taxable on a low income

Yeah, assuming retirement = zero earnings, then no EITC (earned income tax credit) at that point, either.
by teen persuasion
Fri Jan 18, 2019 1:49 pm
Forum: Personal Investments
Topic: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS
Replies: 52
Views: 5039

Re: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS

Medicare is so much cheaper than aca insurance, I don’t know if it is worrying about reaching the first tier. Open social security doesn’t take into account doing Roth conversions, so certainly you need to think about them. In general, withdrawing from taxable first is best . Run some scenarios at ...
by teen persuasion
Fri Jan 18, 2019 11:11 am
Forum: Personal Investments
Topic: 401(k) vs Taxable on a low income
Replies: 17
Views: 1363

Re: 401(k) vs Taxable on a low income

OP, are you MFJ with kids? For low income with kids, contributing to traditional 401k is far superior to either taxable or tIRA, if the reduction to your AGI gets you a larger EITC, which is refundable. If you are in NY, then it is even greater because there is a NY version of EITC, matching 30% of ...
by teen persuasion
Fri Jan 18, 2019 10:42 am
Forum: Personal Investments
Topic: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS
Replies: 52
Views: 5039

Re: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS

Medicare is so much cheaper than aca insurance, I don’t know if it is worrying about reaching the first tier. Open social security doesn’t take into account doing Roth conversions, so certainly you need to think about them. In general, withdrawing from taxable first is best . Run some scenarios at ...
by teen persuasion
Tue Jan 15, 2019 12:50 pm
Forum: Personal Investments
Topic: Oops Over Roth IRA Income Limit - Maybe...
Replies: 10
Views: 533

Re: Oops Over Roth IRA Income Limit - Maybe...

Big things subtracted from gross to arrive at wages reported on w2 for my DH: medical contributions, dental contributions, vision contributions, 401k (pre-tax only, not Roth!) contributions, HSA contributions. Then have to add in some non-salary things like GLT. Big concept to remember: taxable for ...
by teen persuasion
Tue Jan 15, 2019 10:31 am
Forum: Personal Investments
Topic: I'm the noobiest noob
Replies: 16
Views: 1462

Re: I'm the noobiest noob

justsomeguy2018 wrote:
Tue Jan 15, 2019 12:41 am

OP may also consider Tax Loss Harvesting to buy in at the market at the lower rate and save additional money on taxes.
The OP is contributing to Roth IRAs. There is no tax loss harvesting in an IRA.
by teen persuasion
Mon Jan 14, 2019 2:07 pm
Forum: Personal Investments
Topic: Am i missing anything else - ran numbers for doing Roth 401 vs 401k in low bracket
Replies: 7
Views: 642

Re: Am i missing anything else - ran numbers for doing Roth 401 vs 401k in low bracket

Thanks for the replies.I will need to investigate further but it looks to max out the EITC, Savers etc I should go 100% pre.. Yes this is a public agency and has defined benefit pension plan for which they deduct 11% of pay annually (EMP mandatory contribs). Does anyone know if these mandatory pens...