Bogleheads.org

It’s one thing to delay SS in order to perform Roth conversions, or to take SS early when you have a great abundance of other wealth and income streams, or if the later claiming of SS could force IRMAA to come into play. Apart from that I don’t see how the taxation of SS itself would have any real meaningful impact. When I model SS claiming as a couple at 62/70 vs 68/70 without IRMAA being involved in either case the income tax paid is basically a rounding error from age 62 through 89 for us.

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SpideyIndexer wrote: ↑Fri Mar 24, 2023 11:50 am I am feeling more comfy with the (I) strategy (due to my again.) A nickname for it is "Claim Now, Claim More Later." Interest is this will be waning since those born before 1954 will be age 70 or older by the end of 2023. Though I suppose the couple could always gain an extra time, up to 6 months, if they execute the claims in steps 3 and 4 retroactively. This could be beneficial to push SSA income into the following year in order to increase Roth conversions.

I helped a good friends execute this with a 6 month look back in late 2021. They had no idea such a thing existed. Roth conversions were not a part of their plan. Doing so to push income into the next year to support Roth conversions can certainly make sense.

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SpideyIndexer wrote: ↑Fri Mar 24, 2023 11:27 am Thanks, Mike. Hoping to see confirmation from others. I have been digging through the original source material, the SSA "Program Operations Manual System" for which you posted the link and have found it a bit difficult to parse.

What is the difference between being entitled and eligible for certain SS benefits? The POMS makes that distinction.

For other readers, here is the link again: https://secure.ssa.gov/poms.nsf/lnx/0200204035.

Mike is the Oblivious Investor that created Opensocialsecurity. He is a respected member, spoke at our conference last fall and is considered a top expert in Social Security. He is our goto when any details need clarification.

He is the undisputed expert here.

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Welcome to the forum!

Unfortunately any form of a Traditional IRA including SEP and SIMPLE with a balance would result in the pro rata rule being applied to her attempt to perform the Backdoor Roth.

Please take time to read the Wiki page created for this complex topic.

https://www.bogleheads.org/wiki/Backdoor_Roth

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That is absolutely correct.

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mega317 wrote: ↑Thu Mar 23, 2023 4:05 pm You can enroll in COBRA retroactively. So do nothing, and if you end up needing health insurance get COBRA. If you don't, free month!

+1

This has been confirmed on thread after thread on this site.

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Please take a look at one of the often used Social Security tools recommended by Bogleheads which incorporates the Real Discount Rate. The rate has an impact on claiming strategies but it is not necessarily dramatic.

A "discount rate" is necessary to reflect the fact that the sooner a dollar is received, the sooner it can be invested. The default discount rate is the yield on 20-year TIPS, (which is currently 1.32%). See this article for a discussion of why the yield on 20-year TIPS is used as the default.

https://opensocialsecurity.com/

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Typically, a tenancy in common will not avoid probate. This is because a co-tenant's ownership interest remains part of their estate when they die. It must be distributed by will or according to state laws of intestate succession.

Joint tenants with right of survivorship (JTWROS) would have been a better choice for the original setup.

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snackdog wrote: ↑Wed Mar 22, 2023 7:17 pm …

There is no issue. They can accrue the payment on the books now.

That would be wonderful if the company will do so.

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Edit your post and provide a more meaningful title if you want the right attention.

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I know nothing official.

Send all options. Original, 1040x and revised 1040 with a cover letter and header sheets between the 3. You really can’t go wrong with that.

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ttboy wrote: ↑Wed Mar 22, 2023 3:03 pm Buffett recommends S&P 500. That is good enough for me.

You should write a book.

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catnamedspot wrote: ↑Wed Mar 22, 2023 1:26 pm

retired@50 wrote: ↑Wed Mar 22, 2023 1:09 pm I think you mean total stock market, not money market, but putting that aside...
Regards,

Yes! corrected

The title still says Money Market.

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Someone sent us a formal offer with terms. It wasn’t a whole bunch of money and the annual increases likely wouldn’t keep up with inflation. Also, I didn’t want to possibly impact the future sale of the land as it “might” be harder to find a buyer do to the presence of the tower.

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If the account is in her name only notify the CC company of her death. They will ask for proof of course. Interest will stop accruing and they will have to wait for the estate to settle to get payment.

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catnamedspot wrote: ↑Wed Mar 22, 2023 1:03 pm I know the the Total Money market is a wider assortment of companies - but can there a case be made for the SP having more stable, reliable companies? What things do you consider when evaluating both these indexes?

There is no historical evidence to support that. The S&P500 is full of companies that started out small and questionable and became some of the largest.

You should edit your post and correct the heading as I have. (Stock versus Money”.

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snackdog wrote: ↑Wed Mar 22, 2023 12:03 pm Just tell your employer you would like to defer payment to Jan at no cost to them. How can they say no, especially since they can accrue the cost this year?

The OP specifically addressed this in their post as a non starter.

Company will not provide the payment incentive in 2024 as they want to close their books at the end of 2023 and have a reduced work force starting in 2024.

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Read this thoroughly. It exists for this educational reason.

https://www.bogleheads.org/wiki/Tax-eff ... _placement

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For the Backdoor Roth to avoid the pro rata rule requires that you have a $0 balance in all forms of tax deferred IRAs on 12/31/2023. That will not happen even if the rollover went through an IRA as an interim step which you won't be doing.

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If you already give substantially to church/charity from your income you could consider setting up a Donor Advised Fund to support multiple future years of giving and will be able to reduce your overall tax burden this year.

We funded a DAF just prior to retiring two years ago to support our giving until we bridge to using QCDs (Qualified Charitable Distributions) from our IRAs once the first of us reaches 70.5.

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Is there a simple way to calculate weighted expense ratios of a portfolio? For example, if one wanted to compare a target retirement fund with an expense ratio of 0.46% and a portfolio with: 25% fund A (0.06%) 51% fund B(0.02%) 15% fund C(0.03%) 9% fund D (0.04%) Yes. To add to what others have mentioned. The key is to convert the costs to dollars, then add them up and convert them back to a percentage. This is just a way of computing a weighted average, but it makes it easier to see why it is correct. And since the size of the portfolio doesn't actually matter, you can use a round number like $100,000 if you like. In your example, you have $25,000, $51,000, $15,000 and $9,000 in the four funds respectively. So the dollar expenses for each...

4th and Inches wrote: ↑Mon Mar 20, 2023 4:50 pm First Republic is in Trouble per the article below. Does anybody know of any other bank with PLOC terms like they have with Colorado availability?

https://www.cbsnews.com/news/first-repu ... king-fdic/

No.

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Navillus1968 wrote: ↑Sun Mar 19, 2023 11:04 pm

OP's friend is forgoing $1350/month for 15 months= $20,250.

At 70, her benefit will be $1350 x 1.1= $1485/month.

Breakeven number of months after 70: $20,250/1485= 13.6 months.

The break even analysis you performed is fatally flawed.

Your numbers only show how long it takes to earn what they would have earned up until age 70. It then ignores that they would have continued to earn that in the 13.6 months that you claim achieves break even.

The real break even is 12.5 years (150 months) . $20,250 / ($1485- $1350) = 150 months.

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It is odd that your spouse’s parent was owed a SS benefit at the time of death that was then paid to the heirs rather than the Estate. Often it is the opposite situation - the Estate needs to repay the SS benefit received in the month of death. As I understand it and from the Social Security site, the payment received IN the month of death is earned in the prior month and is retained. Any payment received in the month following the death is not and must be returned. From SS website. We can't pay benefits for the month of death. That means if the person died in July, the check received in August (which is payment for July) must be returned. If the payment is by direct deposit, notify the financial institution as soon as possible so it can r...

The $255 death benefit is not taxable.

Lump sum payments made under section 203 and 204 (b), Title II of the Social Security Act, (49 Stat.,620) to a deceased employee's estate are not subject to Federal income tax and should not be included in the income tax return filed on behalf of the decedent.

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Macro wrote: ↑Sat Mar 18, 2023 7:59 am I spoke to the IRS. They said to e-file a 1040 for 2021 and that there would be no late file penalty as I am owed a refund.

Wonderful. Thanks for providing an update so that the resolution is documented for future reference.

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We just sailed on Holland America Rotterdam last month and played Pickleball while onboard.

https://www.hollandamerica.com/en_US/ne ... ation.html

I expect that many lines will be adapting space to support Pickleball along with other activities.

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Ridiculously false if your PIA is greater than hers.

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You basically asked the same question in 2021 regarding funding your TSP and the answer was yes. There’s nothing new here as far as I can see.

viewtopic.php?p=6313552#p6313552

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Not certain why you would think that. These are individual retirement accounts.

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Never heard of this. However, since you can override the lock I don’t see any real harm beyond an unexpected annoyance.

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ResearchMed wrote: ↑Tue Mar 14, 2023 8:21 pm
Right.
I wasn't sure, and I don't think that chart (which is indeed *very* handy!) addresses what if there is less than the amount contributed, whether there is some sort of attempt to prorate earnings based upon holdings. Nope, I don't know how that would be done; I wanted to be sure OP didn't unexpectedly end up with a problem IF there were some sort of adjustment needed.

That really is a terrific chart!

RM

It’s impossible to have earnings if your losses result in a balance less than the contributions. That’s called a loss. Your theoretical isn’t possible.

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Yes you can withdraw the contributions. This Wiki table clearly shows that. https://www.bogleheads.org/wiki/User:TedSwippet/KAWill_Roth_Table Cheers Interesting question, IF there have been any earnings. There could be a penalty or tax due on earnings. I don't know what the answer is; hadn't thought about this particular situation. But first, OP: How old are you and how long ago did you *first* open a Roth IRA? If you are over 59.5 and your first Roth IRA was opened at least 5 years ago, then there is no concern. WIthdraw what you want in that case; no penalties, no taxes. RM The OP clearly stated that the account value was less than the total contributions. I also provided a link to the KAWill table that covers every circumstance associat...

Yes you can withdraw the contributions. This Wiki table clearly shows that.

https://www.bogleheads.org/wiki/User:Te ... Roth_Table

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Danw wrote: ↑Tue Mar 14, 2023 11:23 am I haven’t changed to a brokerage account for two reasons. I want my Roth conversions to happen the same day and not have to pass through a settlement account. I like being able to direct dividends directly from one fund to another. If I had to pay the $20 fees I would feel differently.
I’ve been thinking of opening a separate brokerage account to buy treasuries but will probably stick with the Treasury Money Market fund.

I’m on VG Brokerage platform holding mutual funds and my Roth conversions are always done as sell to buy and effective as of market close on that day.

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Why put yourself in a potential bind. I see from another post that you have funds in VMFXX that has a current yield of 4.52%. That would be "good enough" for me for such a short timeframe. https://investor.vanguard.com/investment-products/mutual-funds/profile/vmfxx Cheers I thought about that, but I feel more comfortable with T-Bills since my understanding is that there might be some scenarios (albeit really bad ones) where money market funds lose value but T-Bills are still okay. Admittedly I do not understand this stuff very well, but I think I am right about this. You aren’t right. You are freaking out unnecessarily. The world isn’t coming to an end. That’s about what it would take for your funds at Vanguard or any other major...

Why put yourself in a potential bind. I see from another post that you have funds in VMFXX that has a current yield of 4.52%. That would be "good enough" for me for such a short timeframe.

https://investor.vanguard.com/investmen ... file/vmfxx

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AnnetteLouisan wrote: ↑Mon Mar 13, 2023 7:37 pm

abuss368 wrote: ↑Mon Mar 13, 2023 7:34 pm

AnnetteLouisan wrote: ↑Mon Mar 13, 2023 7:31 pm

abuss368 wrote: ↑Mon Mar 13, 2023 7:26 pm

AnnetteLouisan wrote: ↑Tue Feb 21, 2023 5:26 pm

Same here. He’s mentioned being unwell - hope he’s ok.

If I heard correctly, I believe JoeRetire finally made the leap and started a Podcast show. It is available on Apple or something. He talked about it before and must have made the leap. I wish Hugh well!

Joe posted recently. He’s ok.

Podcast or forum?

Forum.

He hasn’t posted since January 21st.

memberlist.php?mode=viewprofile&u=129518

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Mr. Potter wrote: ↑Mon Mar 13, 2023 1:46 pm My friend pulled 50k out of his Roth at 60 yo to buy a new house. If he starts putting money back into his Roth is there any additional holding period for new money? I assume no since he over 60 but I don’t think using a Roth like a bank is what they were intended for.

If the friend were wanting to put all or part of this $50k back in they could do so within 60 days of withdrawal as an indirect rollover. Apart from that they can only make annual contributions based on earned income.

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You can’t appeal due to Roth conversions.

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runner3081 wrote: ↑Sun Mar 12, 2023 6:23 pm

Silk McCue wrote: ↑Sun Mar 12, 2023 5:36 pm That sounds unrealistic to me and would likely be a turnoff to a prospective employer. You might need to hang in a bit longer at the current job if the vacation is a top priority.

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Disagree. Most new hires that I have brought on before the summer have pre-planned vacations and ask for the time off. Never an issue. Why would it be?

You would certainly know better than me.

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That sounds unrealistic to me and would likely be a turnoff to a prospective employer. You might need to hang in a bit longer at the current job if the vacation is a top priority.

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Do you now understand that a 1040-X was never necessary and that all you needed to do was make those amendments in TT and then efile? That’s not clear to me and I would hate for you to do so in the future.

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I typed Aperio into the search box and found quite a number of prior threads/posts where it was mentioned/discussed. Lacking more responses to this thread you might want to take a look at prior feedback.

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ttboy wrote: ↑Fri Mar 10, 2023 5:51 am
…

In the 12th edition of “Every Landlords Tax Deduction Guide” by Steven Fishman it strongly adivses to paper file to reduce audit risk. A more recent 18th edition is silent on the issue.

Does paper filing really reduce audit risk?

The removal of the advice is deafening silence. Clearly the prior advice is no longer valid.

Far less chance of error with an electronic filing given the complexity of the return.

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Yes it is real and your family member is adamantly wrong.

You could have saved some typing by searching this site with “recast”. Lots of threads including some recent ones. Many mortgage companies allow it for a low fee and it can be a very smart move.

Like any financial decision it comes down to your personal goals, financial situation and the math associated with the transaction.

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bob26 wrote: ↑Thu Mar 09, 2023 3:42 pm I have been following the thread with great interest. I have a basic question. What if someone in their mid-50s buys a policy in, let's say, state of FL. However, when retired moves to TX and then is in need of LTC. How would LTC policy work at this point? Would he need to move back to FL in order to collect?

Texas and Florida both support Partnership policies. So you would be covered in Texas and many others states as well.

My wife and I have a Partnership policy in Florida.

https://www.ltcnews.com/resources/faq/a ... s-portable

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You make no mention of a spouse. If there is one that should be considered in the claiming strategy.

The link below is to an excellent tool that is utilized widely here. It may provide some insight as well.

https://opensocialsecurity.com/

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jjunk wrote: ↑Wed Mar 08, 2023 8:54 pm
Thanks for letting me know. Although I'm not sure how it wouldnt be appropriate. Isn't a part of good financial planning taking into consideration the tax consequences of different investment gains and where they are within a portfolio? It seems understanding cost basis at a granular level would allow an advisor to provide more actionable advice. But you're right, lacking those capabilities would render the service useless IMO.

Their service isn’t intended for that level of granularity. Look at their price point. Square peg, round hole. What they do offer that I and others pay for is an exceptional value.

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jjunk wrote: ↑Wed Mar 08, 2023 5:34 pm For those of you who are customers, how granular is the data entry for investments? For example, when you do data entry for investments can you do SpecID level entry or is it simply "this is a bond fund with XX dollars in it"? How does the service handle something like a CD/bond ladder w.r.t. data entry? Given I'm a Schwab customer, linking accounts externally voids the Schwab guarantee so I'd do it manually but it would only be useful if there was good granularity on the investments. TYIA.

That level of detail (SpecID, CD/bond ladder modeling) entry is not possible, necessary or appropriate for the intended purpose of Planvision guidance. They may not be a good fit for you.

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