Bogleheads.org

mnnice wrote: ↑Wed Mar 29, 2023 12:24 pm I am not trying to be grouchy or obtuse but wouldn’t the solution to this issue would be to have stockpiled some cash by making fewer retirement contributions for awhile?

Is COBRA an option for awhile or has that been exhausted?

See my OP for current assets.

COBRA will be exhausted soon. ACA starts 7/1.

This creates an interesting situation where the itemized deduction for premiums decreases income which increases ACA subsidies which decreases the deduction and so on... There is an IRS published way to resolve this for the self-employed (who have a similar situation) but I'm not sure about Schedule A filers who qualify for premium tax credits. That applies to the Self-Employed Health Insurance (SEHI) subtraction because that reduces AGI, thus reducing the MAGI upon which the ACA credit is based. It does not apply to itemized deductions, because they do not affect AGI. It could theoretically affect my decision because I'm trying to compare net taxes to the cost of borrowing, which is what allows me to decrease AGI. But, as someone pointed ...

furwut wrote: ↑Wed Mar 29, 2023 11:37 amFYI that was my situation for tax year 2022. Turbo Tax Deluxe handled it. It asked me to enter all my itemizable items except for health insurance in one part of the interview. Then in a later part it figured out the ACA credit and portion of premium I did pay and applied that (recursively I think) to my deductions.

Assuming no further changes in tax law, would results from TT2022 be reasonably representative of 2023 results, for this purpose? If so, I can play with different IRA withdrawal inputs and plug the net taxes into a spreadsheet for comparison to interest costs.

quantAndHold wrote: ↑Wed Mar 29, 2023 9:59 amIf you’re not self employed, ACA premiums aren’t deductible. Or, more specifically, they’re only deductible if you itemize, and your total health spending, including premiums, is >7.5% of your income.

Thanks. At best, the impact on my decision would be small. Even if 100% allowable, our itemized deductions wouldn't exceed the standard deduction by much.

Tom_T wrote: ↑Mon Mar 27, 2023 7:00 am Aren't HELOCs expensive these days? 8% rates? The days of dirt cheap HELOCs are long past. A $50K HELOC would cost $350+ a month in interest.

Yeah, probably too expensive, but it's worth analyzing if I can find a ready-made calculator or find the information necessary to make one myself. (It wouldn't be hard for me but I don't want to spend days just searching for the information.)

Thanks for everyone's input. In addition to premium tax credits, I found information on cost sharing which reduces OOP expenses. Those benefits are available only through Silver plans. I have not compared those benefits (if any, to us) to the reduced cost of Bronze plans. https://www.kff.org/health-reform/issue-brief/explaining-health-care-reform-questions-about-health-insurance-subsidies/ Keep in mind that the cost sharing is only available to people with pretty low income so it may be very difficult to keep your income low enough to get that. If you will not get a subsidy in 2023 because it is a partial year then be sure to also price what the plans cost be sure to also get quotes on buying the healthcare outside the exchange, like Healt...

Since health insurance premiums are tax-deductible, they may determine whether we itemize deductions or use the standard deduction. Since the ACA subsidy is a credit, does it reduce the ACA insurance premium I can claim? Or can I claim the entire premium, regardless of subsidy received? If you’re not self employed, ACA premiums aren’t deductible. Or, more specifically, they’re only deductible if you itemize, and your total health spending, including premiums, is >7.5% of your income. This creates an interesting situation where the itemized deduction for premiums decreases income which increases ACA subsidies which decreases the deduction and so on... There is an IRS published way to resolve this for the self-employed (who have a similar si...

Thanks for everyone's input. In addition to premium tax credits, I found information on cost sharing which reduces OOP expenses. Those benefits are available only through Silver plans. I have not compared those benefits (if any, to us) to the reduced cost of Bronze plans.

https://www.kff.org/health-reform/issue ... subsidies/

I understand the ACA fiscal cliff is not currently a thing, but is there sweet spot to look for? Is there a calculator to help with this? Excel would be ideal. In that case, see Roth Conversion and Capital Gains On ACA Health Insurance . The Using a spreadsheet portion of the Roth IRA conversion wiki, and Roth Conversion with Social Security and Medicare IRMAA also have various screen shot instructions that might be helpful for using that spreadsheet. The MMM spreadsheet may be useful but I was hoping to find something a bit more transparent. It's too hard for me to jump around to the different cells to figure out how what the spreadsheet's doing. (I guess they never heard of named ranges.) I really don't care what the inital subsidy is th...

DW starts ACA insurance 8/1 and will be on it 16 months. I'm seeking advice on how to limit our MAGI to maximize our subsidies. Spending reductions are not a viable approach. 2022 MAGI was 110K; projected 2023 MAGI is similar, at current withdrawal rates. Certain big ticket expenses may require withdrawals pushing us into the 22% bracket this year. (Those may or may not happen.) Maxifi projects marginal rates at the top of the 12% bracket in 2024 and 2025, then 15% thereafter, if TCJA rates lapse. Future RMDs are not a concern. We're living on ordinary income from tIRA withdrawals until I draw SS @ 70. We're exploring whether using a HELOC for living expenses could reduce taxes and increase ACA subsidies sufficiently to offset the cost of b...

I guess the question is: do you need/want a part time job? I would say that I don't and I have not really chased brokerage bonuses, I just took a small detour on the consolidation route. However, I have chased credit card sign-up bonuses for years and I am not sure if I'll stop. Remaining to be determined is whether or not I'll ever bother to stash $100K at B of A for higher ongoing rebates. We don't spend a lot, so that's only worth about $200 extra per year vs. using 3 Citi cards for most things (custom cash, double cash, and the Costco card). This is a part-time job with very little demand on your time and it's entirely at your discretion as to if/when you choose to work. In my experience, on average, new brokerage account bonuses don't...

Jags4186 wrote: ↑Sat Mar 25, 2023 10:06 am... So obviously not perfect. But for my use case at the moment it’s pretty good. ...

If it worked with Visa credit I'd switch everything to it and drop Paypal, used for similar reasons.

I added my BofA CCR card to my wallet at PayPal. My choice category is online shopping. For my cell service, we have the option to pay via PayPal. Question(s): 1) When Visible, the cell provider, charges via PayPal, will that be considered online shopping? 2) Is it better to link the CCR or the UCR to your PayPal account? 1. No. 2. In the past I have linked both to my PayPal account at the same time and specified which card to use for which vendor within PayPal. For example, I charge Visible to the UCR and certain monthly donations to the CCR card configured as online vendor category. You can set one as default (obviously, CCR) that applies for online shopping. The benefit of this approach is that you can revise the card(s) you use in the ...

Jags4186 wrote: ↑Fri Mar 24, 2023 2:05 pm I recently signed up for Curve Card. This is a card that allows you to link Visa Debit, Mastercard Debit & Credit, and Discover Devit & Credit cards. ...

This is interesting but where are the card-type restrictions described? I can't find that on their web site. As someone else commented, the majority of our accounts are Visa credit, making the Curve card just another credit card for me to decide whether I want to use it for a particular purchase.

I am having a hard time transferring my stocks from my Fidelity brokerage account to my ME account. It's been a couple of weeks since I submitted the transfer assets form. Ran into the following issues - uploaded an older version of the transfer assets form, uploaded the correct version but entered the incorrect Fidelity brokerage account number (apparently the 16 digit number is the Fidelity bank account number), got a phone call for security verification and gave an incorrect response (not sure which one). Today, their system was down so the phone re-verification could not take place. Now been told to go to BoA location to get a medallion signature guarantee. Scheduled an appointment for tomorrow. With these delays, I'll miss out on my w...

Chardo wrote: ↑Sun Mar 19, 2023 6:56 am

spammagnet wrote: ↑Sat Mar 18, 2023 11:40 pm... Unlike life insurance, I think there's usually a limit on how much you can buy, anyway. DI underwriters don't want to create an incentive to not work. ...

Life insurance is also limited. You cannot buy more than financially justified.

Yeah, I guess that could incentivize something more nefarious than not working.

Thanks, I have started to look into that and research it. Have never heard about it. Curious if their software also factors in Disability Insurance It does not. Unlike life insurance, I think there's usually a limit on how much you can buy, anyway. DI underwriters don't want to create an incentive to not work. Personally, I think buying it privately is good because you can keep it as you change employers. You might not pass a medical exam if you need to buy it in the future. Maxifiplanner require an adjustment in how you think about long-term financial planning. I get it and like it, but I'm retired. It's also very useful to those approaching retirement. I might be less comfortable as a much younger person basing my spending decisions toda...

Maxifiplanner.com includes a recommended level of life insurance for the survivor(s) to maintain the same level of discretionary spending after death of the decedent. That accounts for a decrease in the cost of living by the decedent and the impact of the cost of insurance on discretionary expenses. You have to add new expenses, such as the potential increase in child care expenses borne by a single parent.

bltn wrote: ↑Sat Mar 18, 2023 12:26 pm... Having a state consider itself your tax domicile even after you sell your residence and move from the state and legally establish a domicile in another state seems like a stretch. ...

"You can check out any time you like, but you can never leave."

bbrock wrote: ↑Thu Mar 16, 2023 1:01 amWhat an awesome idea spammagnet! ...

PS: New account bonuses are more lucrative than Preferred Rewards if they fit in your scheme of getting credit card rewards, in general. Paying taxes provides a way to meet minimum spending requirements and quarterly payments fit into a prudent cycle of opening new accounts.

... What an awesome idea spammagnet! Not mine. I learned about it in the 12-page thread here: Primer on Paying Taxes With a Credit Card . Credit goes to whodidntante . Pass it on, and post future questions on this topic there. ... And, fortunately, there’s a couple centers near me I just located at their website. After a center visit, and then purchasing your gift cards online, will that code as online shopping? ... Call first to confirm they sell gift cards. Most, but not all, do. Experience posted here by others is inconsistent about coding as online. My own experience is consistently negative. I now use my 1.5% cards which gets me 2.625% (w/ PH) - purchase fees. It's worthwhile. ... Hopefully I can make a chump change gift card purchase...

Anyone here use the Unlimited Rewards card to pay their taxes? I don't have any experience with how reliable the third-party processors are. But at 1.85% (payUSATax) fee vs 2.625% cashback that we get, it seems a better deal than paying it via bank ACH. That said, I'd rather nothing go wrong with my tax payment than try to squeeze out 0.775% rewards. Consider using gift cards to pay taxes, rather than credit cards, if they can be bought economically with a credit card. They bill as debit cards, for which some (all?) tax payment processors vendors charge only ~$2, rather than a % fee. I and others buy gifts cards online at Simon.com, which caters to manufactured spending practitioners. It's economical because you can buy them in $1K denomin...

tj wrote: ↑Wed Mar 15, 2023 10:24 pmI don't see a reason to even do that. If the card gets closed, one less card to worry about. Or wait and see how the rewards redemption improves and then I'll start using it.

Some of my dormant cards are over 20 years old. They're the oldest cards I own and could have a negative impact on my credit score.

tj wrote: ↑Wed Mar 15, 2023 2:38 pm... if they don't close it for inactivity first.

I just added all my sock-drawer cards that I want to keep active to Amazon, loaded $5 from each to my Amazon gift card account, then deleted the sock-drawer cards. Amazon will use the small total gift card balance before I charges my default credit card.

Can someone validate my understanding of the PH qualification schedule? I'm PH with ~110K in ETFs at ME. BofA says I originally qualified for PH as of August 2020. Because I transferred the ETFs elsewhere temporarily I lost that but regained it in ~April of last year after moving the funds back. I need those funds again for a bonus at Wells-Fargo . The offer expires 4/1, requires funding by day 45, which must be maintained through day 90. If I use most of my ME funds for the WF bonus, I have to move them out by ~5/15 at the latest and can return them to ME after 7/1 at the earliest. Am I correct that I should be able to keep my PH status? Did that anniversary change when I dropped and regained PH status last year? If so, I can delay funding...

WapelloHawk wrote: ↑Wed Mar 15, 2023 5:21 pm Does anyone know if Simon gift cards count as an online purchase with BoA CCR cards? Thanks.

It's hit and miss. Some have gotten it. I've made a few purchases and not gotten it. I think BofA may have blacklisted the source, but that's just a guess. I now use my PR card to get 2.625% (w/ PH).

anon_investor wrote: ↑Thu Mar 09, 2023 9:48 pmThanks, I was going to keep more than $5k credit line on each CCR, so I should be good.

I've shifted credit lines painlessly with Chase but never tried with BA. I don't think it will be a problem, though.

JoMoney wrote: ↑Thu Mar 09, 2023 9:33 pm

spammagnet wrote: ↑Thu Mar 09, 2023 9:24 pm

OhioAndy wrote: ↑Thu Mar 09, 2023 8:42 amUPDATE: Fidelity declined to do a transfer from the IRA to the CMA. They said an in-kind transfer in this case is no different than a purchase so the $100k minimum applies. (They transferred us around to several people and put us on hold for about an hour.)

Having done the transfer in kind from IRA to CMA, I'll be careful to never let it drop to $0, lest I'm not allowed to transfer again.

Interesting that you were able to in the past. When doing an online transfer, money market funds show up as available cash to transfer, so there's no in-kind transfer option for MM funds online.

It required a rep to do it. There was no hesitation on their part.

rama13 wrote: ↑Thu Mar 09, 2023 8:50 pm

anon_investor wrote: ↑Thu Mar 09, 2023 8:46 pm Anyone try to transfer some credit lines from multiple BoA CCs to another BoA CC? I am going to call BoA tomorrow and see if they can transfer some of the credit lines from my 3x CCR to my PR. I am planning to pay a large tax bill next month on my PR.

Yes. IIRC, you should keep at least $5000 on each CCR.

I believe that's a requirement of it being a Visa Signature card.

OhioAndy wrote: ↑Thu Mar 09, 2023 8:42 amUPDATE: Fidelity declined to do a transfer from the IRA to the CMA. They said an in-kind transfer in this case is no different than a purchase so the $100k minimum applies. (They transferred us around to several people and put us on hold for about an hour.)

Having done the transfer in kind from IRA to CMA, I'll be careful to never let it drop to $0, lest I'm not allowed to transfer again.

Finally took the plunge and opened a ME acct for my Roth IRA. Will qualify for the $400 bonus. Initiated the ACAT for everything besides 1 share of VTI so I can keep the Vanguard Roth open for next year’s backdoor contribution. Will open the Preferred rewards acct. for PH status and opt for the UCR card and shoot for the 2.625% unlimited cash back, which is good enough. The CCR sounds appealing for the online shopping category primarily for online Costco cash cards, since we shop there so much. But, I don’t want DW or me to risk losing that Costco cash card(s). As such I just don’t think the 5.25% on up to $10,000 (2500/qtr.) outweighs the risk of losing one of those cards as there could be more on there than the reward I’ll get back. Does...

VictorStarr wrote: ↑Wed Mar 08, 2023 3:08 pm Has anybody managed to enroll BoA credit cards via eBill from Fidelity BillPay?

A year ago, when I tried, Fidelity had a problem with enrolling BoA CCs into eBill. So I used eBill to set up automatic payments of BoA CCs at the BoA site. Maybe situation changed and now it is possible to do this from Fidelity BillPay?

I gave up and set up my CMA as an external payment account on the BA Billpay web site. I have to go to BA to see the bill but it drafts automatically from my CMA.

vested1 wrote: ↑Wed Mar 08, 2023 7:36 am...l. But we're retired, so working more overtime is not an option, ...

I'm retired and view my retirement savings as one big emergency fund. It's structured so I (hopefully) don't have to sell stuff unexpectedly at a loss, but it's all just a big pile of money.

OhioAndy wrote: ↑Wed Mar 08, 2023 11:24 amStep 4: Sell all the SPRXX in my CMA and buy FZDXX instead

You don't have to "sell" SPRXX. Fidelity does that automatically as needed. Buying FZDXX creates the need, as do other routine cash flow events.

... Is this it? Pretty much, yes. Never let the FZDXX holdings drop to $0 or you'll have to start over. You'll have to make occasional purchases to replete it because Fidelity won't treat it as a core fund. Ignore the tidal flow of paychecks and routine monthly expenses. Most of your normal cash flow will be through the regular core account. Fidelity will sell FZDXX only if the available balance in cash and your core fund is inadequate to meet occasional larger withdrawals. I have a ROTH and my wife has an old Traditional IRA -- is there a benefit of using one vs the other? for the in-kind distribution? For the small amounts involved, I don't think it really matters. Someone else may have more insight. Thanks for breaking this down so pati...

drumboy256 wrote: ↑Wed Mar 08, 2023 12:28 pm

chinchin wrote: ↑Wed Mar 08, 2023 12:04 pm

fetch5482 wrote: ↑Wed Mar 08, 2023 11:55 am

What am I missing here - I thought the minimum to buy FZDXX initially was 100K, not 10K. How are you able to purchase $10K of FZDXX in your IRA?

There is a lower minimum for buying in an IRA.

So is the "loophole" here if you buy $10k of FZDXX in an IRA of some kind, you can then buy it across other accounts as well?

You can transfer a very small amount IN-KIND from the IRA to any other account, establishing ownership in the receiving account. There is no minimum for additional purchases, as long as the balance doesn't drop to $0.

So I don't think I want to mess around with margin, but that would certainly be a minor investment in interest to achieve it. If I did a $10k purchase in an IRA, would I then do a small distribution into my CMA? What penalties/fees/accounting would that cause? And I presume I could carry over the MMF for the distribution without accidentally selling it? I get the concepts, just hazy on the actual execution. You have to do an in-kind transfer. That requires talking to a support rep. You can't accomplish that yourself using online transfers told. Don't let that be a barrier. It's a short conversation. Transfer a minimal amount, like $10. Don't withhold taxes, just deal with taxes and early withdrawal penalty (if any) when you file. It will b...

I am still a long way from collecting SS but wanted to see what opensocialsecurity would recommend. My spouse and I are 4 years apart in age and have had very similar compensation for 20ish years now and therefore similar PIA. It recommends my spouse starts collecting at age 62 and I start 4 years later at age 70. What would the rationale for this be? All my planning has assumed collecting at 70 for each of us The default life expectancy assumption at opensocialsecurity is to use standard actuarial tables. To determine the highest expected value, that seems appropriate. But you're not the entire population, you're a sample of 2, and your life expectancy may be higher based on family history. You can adjust the calculations to assess the im...

In addition to not taking effect until the next statement cycle, unlike Chase, BA doesn't adjust the automatic payment amount to reflect other payments. I paid off a small statement balance early just to get rid of it, after which BA charged the previously-scheduled payment to my checking account.

If you make a manual payment for some reason, you can change or cancel the next automatic payment, if already scheduled. You have to be aware that it's necessary, and remember.

In contrast, Chase won't make the balance negative. They also adjust the payment downward to reflect other credits. That's true for statement balance payments, at least. I've never made minimum payments, so can't say what happens in that case.

manlymatt83 wrote: ↑Wed Mar 08, 2023 9:34 amIf you transferred $100 in kind to your CMA, wouldn't that cause a distribution penalty?

I'm over 59.5 so it's a normal taxable withdrawal which I'm making, anyway. Even if you're under 59.5, the penalty is 10% of the amount. Withdraw $10 in kind and consider the $1 penalty as a small banking fee.

The points I intended to make earlier:

1. If you already have any amount in FZDXX (and presumably other minimum-purchase MMFs) there's no minimum purchase and no minimum balance.

2. The minimum opening purchase in retirement accounts is much smaller than in taxable accounts.

3. You can transfer any amount in-kind, which establishes a starting balance in the receiving account.

For those buying the higher yielding fund in their CMA, and then selling it down to like $20k, are you then able to re-buy back up to $30k when cash comes in, or do any buys need to bring it been over $100k? As long as you have $1 in FZDXX, subsequent purchases can be any amount. I purchased $10K of FZDXX in an IRA and transferred $100 in-kind to my CMA. There, I invested everything into FZDXX. That was << $10K. Routine cash flow results in automatic sale of FZDXX as needed. I have a monthly IRA transfer deposited into the CMA of less than $10K, with a scheduled FZDXX buy a couple days later, for somewhat less. Due to other cash flow happening in the interim, the liquid amount other than FZDXX may be less than the purchase amount. Fidelity...

MrJedi wrote: ↑Wed Mar 08, 2023 6:58 amI've been tracking each day since I put in an extension payment (which does still show up there as pending) and waiting for that to show as processed before I file my return.

The fact it shows up as pending means it's in the system. As long as the amount matches what you actually paid, I'd go ahead and file.

stilllurking wrote: ↑Sat Mar 04, 2023 2:46 pmThis is the first time I used Chase auto pay with my Fidelity CMA. I see that the money was credited to my Chase cc this morning for a payment made on 3/3/23. However there Is no pending transaction in my CMA. I used the long 17 digit account number. Has anyone used that one for auto pay with Chase or am I going to be late with the payment?

All the time. Chase credits the payment as of the scheduled date, even if it doesn't hit the external bank for a few days.

sailaway wrote: ↑Sat Mar 04, 2023 11:44 am

spammagnet wrote: ↑Sat Mar 04, 2023 11:33 am

spickups09 wrote: ↑Sat Mar 04, 2023 9:18 am... If you have a spouse or partner to divide and conquer its easier. I have 2 and she has 1 (and then we are authorized users on each other's cards). ...

If considering Chase new credit card account bonuses, be aware that being added as an authorized user counts as a credit check toward their 5/24 rule.

Chase has rejected me twice in 12 months for "too many new accounts" even though I have only opened one card since 2019, so I wouldn't hold back for only that reason.

Yes, I did double check my credit report, just in case.

We just add the other user's credit account to our phone wallet. That way we don't have to be authorized users. It's easy.

So going back to the original topic of the thread, is anyone actually using Fidelity and only Fidelity as a one stop shop? Meaning all of their investments are with Fidelity? We do and have been for over 10 years. We have several other accounts and brokerages but only for the purpose of getting new account bonuses and to qualify for Platinum Honors tier at Bank of America. All regular transactions are at Fidelity. Activity in the others is only what the bonus rules require, and we close those accounts when allowed. I do have an old account at a local credit union. It's basically dormant and exists only to qualify for a safety deposit box and occasional (rare) free lobby services like notary signatures. They even offer a medallion signature...

spickups09 wrote: ↑Sat Mar 04, 2023 9:18 am... If you have a spouse or partner to divide and conquer its easier. I have 2 and she has 1 (and then we are authorized users on each other's cards). ...

If considering Chase new credit card account bonuses, be aware that being added as an authorized user counts as a credit check toward their 5/24 rule.

For the Merrill Edge bonus, language in the offer says "Assets transferred from other accounts at Bank of America, MLPF&S, Bank of America Private Bank, or 401(k) accounts administered by MLPF&S do not count towards qualifying net new assets", so I assume going: direct deposit/wire/ach Bofa checking -> new Merrill account for bonus won't work. Would this work? direct deposit/wire/ach to Bofa checking account -> ach to external brokerage -> open new account at Merrill and ACAT from external brokerage Or do I need to have the paycheck go to a non-Bofa bank? Most of the money is already at external brokerage, I just need a little more to hit the next $1000 reward tier. https://www.merrilledge.com/offers/pr1000: " How it...

OldSport wrote: ↑Mon Feb 27, 2023 8:34 am My spouse and I want to open a Merril Edge account for the BoA platinum rewards.

Question is do we open as a "joint brokerage account" (JTWROS) or "individual brokerage account"?

How does the 1099 DIV and B come in either case? Will it show both names and SSN or just primary/first person in case of a joint account?

The base BoA was opened by my spouse and added me to account after getting married. But the 1099 Int just comes in my spouses name that makes tax filing easy.

If you have the means, open two individual accounts and get two new account bonuses. If you don't have enough to get the max in both, it may still behoove you to open two. Compare the bonus levels to optimize your decision.

8foot7 wrote: ↑Thu Feb 23, 2023 5:26 am I believe the point is the difference between earning 2.3% on an average balance of, say, $5000 vs 4.5% is $9/month or something negligible. It may not be worth complicating your setup (either with multiple accounts to take advantage of expanded core position options, or manually buying a higher-yielding money market fund within a CMA) for such a small return on a limited and constantly fluctuating set of cash. At least that is how I view it.

Yes. A lot of effort is being invested in an immaterial difference.

... With these realizations, I must admit I'm surprised of the little added value that the CMA provides, given that the brokerage account already offers most its features, but with a simpler configuration that allows for higher yields. Indeed, as far as I can tell, if you are not actively investing with Fidelity, the only thing that CMA adds is ATM fee rebates worldwide. And if you want that feature (which I do), you can just add the CMA which is only used for that one purpose and do everything else through the brokerage. ... If you're not too concerned with second decimal differences in MMF returns, the value to many people is in automating withdrawals and simplifying cash flow by consolidation. Can you expand on this? FCASH is 2.32% vs B...