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I actually misread it. it was silly of me. Thanks Boomer-techie!

Pumping it up to get some advices. Thank you!

They are VG US mutual funds (like VTSAX), no REITs or REIT fund and no foreign funds with foreign income and / or paid foreign tax. Thanks for responding!

Hello BH fellows - my 2022 1099-B showed "Gain or loss (-) & 7-Loss not allowed (X) also not reported (Z)" with the amounts equal to the loss (between proceeds and cost basis) for the funds that I TLH last year. I was very careful to avoid wash sales in the transactions. I read that "loss not allowed" happened when change in control or capital structure. These are VTSAX and VCLAX. Do you know why VG reporting that? And I can't report as a loss ?

How should I report this on TB in 1099-B?

Please help. Thank you so much in advance.

Thanks for all the responses. Very helpful! I will ignore it and let the software handle it. Thanks again.

Hello - I would appreciate the expert's advice on form 1099-R from Vanguard. I have been doing backdoor roth conversion for several years. in my 1099-R forms 2021 and 2022 box 7 always showed code 2 (for roth conversion). However there is a difference between 2022 form and the previous years. Box 16 (state distribution) in 2021 and 2020 showed blank. Box 16 in 2022 form showed the full contribution amount ($7k for age 50+). Is it a mistake by Vanguard? How would that impact the tax amount? For full info: box 1: $7k box 2a: $7k box 2b: X box 7: 2 IRA/ SEP/Simple: X 16: $7k - this is where it is different from all previous years' 1099-R (blank) while I did the same back door roth conversion method. Many BH fellows do backdoor roth conversion....

Hi - This is my first year using turbo tax desktop version - delux. I selected e-file and I thought I could pay tax by direct debit from the checking account I setup with TT. Instead I got only 2 question: deduct from your refund and use your credit. There is no option for direct debit. Since I have no refund, TT only let me pay via credit card. I don't want to do that due to the extra fee. I am confused. How can I pay fed tax by direct debit? I got a small refund from state. If TT does not accept direct debit how would I get direct deposit from state? Thanks for your help! That question is for how do you want to pay your fee(s)...most likely the fee to FILE your state return. TT versions that include state only include PREPARING the state...

Thanks livesoft! if I use direct pay how would I complete the filing through TT? it keeps asking me to charge my credit card then taking to other screen to log on. I don't see any option that I can choose "direct pay' then move on the complete the filing.

Hi - This is my first year using turbo tax desktop version - delux. I selected e-file and I thought I could pay tax by direct debit from the checking account I setup with TT. Instead I got only 2 question: deduct from your refund and use your credit. There is no option for direct debit. Since I have no refund, TT only let me pay via credit card. I don't want to do that due to the extra fee.

I am confused. How can I pay fed tax by direct debit? I got a small refund from state. If TT does not accept direct debit how would I get direct deposit from state?
Thanks for your help!

These are great. Thanks all!

This forum has been so amazing and extremely helpful for my investment decisions and personal finance stuffs. I am posting another question here hoping to get the smart advices (as always) from the experts. I did back door roth conversion in 2020 in turbo tax, however under the deductions section I mistakenly entered the answer Yes to the question "tell us if you switched or "recharacterized" any of the $7,000 traditional IRA contribution for 2020 over to Roth IRA contribution". Long story short, as a result line 4b of my 1040 showed $7,000 instead of $0. I did not even noticed and paid tax for that amount!! :oops: I did not realize it was a mistake until I've done the backdoor conversion correctly this year (1040 lines ...

Cheez-It Guy wrote: ↑Sun Feb 20, 2022 7:18 pm It was my first year filing after completing a backdoor Roth, and the step-by-step instructions were invaluable and a perfect match to the software prompts.

thank you it is very helpful!

Thanks Celia. It showed exactly as you mentioned so I guess I am ok. Thanks again!

Hello - Hope to get some advises from BH tax savvy experts. I am using Turbo Tax deluxe, the download version bought from Costco, for 2021 tax return. When entering 1099-R form for back door roth conversion, TT asked "what did you do with the money from X (brokerage bank)". The online version that I am testing showed the box for "I converted some or all of it to a Roth IRA ", among other boxes. But the download version showed 2 options "I moved the money to another retirement account" and "I did something else with it". When I selected the first option it only showed another 2 options "I rolled over all to another traditional IRA or other retirement account" and "I did a combination of ...

Thanks Duckie.

Hello! Hope I can get some advices on $ rollover from an after-tax 401k to Roth IRA. My employer recently offered new after tax 401k option in addition to pre-tax and roth 401k. They only allow the rollover to external Roth IRA after 5 years of employment (no in-plan conversion allowed). I've been maxing out pre tax 401k contribution. Additionally I plan to max out contribution limit to after-tax 401k (limit determined by the company), then when I hit the 5-year employment anniversary will roll over to my own Roth IRA. I have 3 questions. - Would this rollover amount be counted towards maximum annual Roth IRA contribution? - Would the rollover amount subject to income limit just like a regular Roth contribution? - My understanding is you mu...

Hello Bogleheads ! I have a HSA account with TD Ameritrade though my employer. I've been purchasing SPTM because of $0 transaction fee but recently just realized that similar Vanguard ETF funds ( like VTI) are also commission free. Personally I prefer mutual fund. Since I would hold this fund for long time should I exchange $50k+ of SPTM to VTSAX in Ameritrade with 1-time transaction fee of $49.99? Any other fees that I would need to pay? For future contributions I would purchase VTI.

Thanks in advance for your input.

Broken Man 1999 wrote: ↑Sat Aug 01, 2020 4:58 pm Does the child have earned income? SS is not earned income.

Broken Man 1999

No he does not. SS is not earned income that is what I thought. What about a brokerage investment account?

Hello - A relative of mine is going to claim social security benefit for her son as minor beneficiary of the father who is receiving SS $. Can she set up a Roth IRA to invest for the child? if not Roth can it be a brokerage investment account? or is it just strictly for the child's expenses and 529 account?

Thank you!

Makes sense. Thanks all.

Bogleheads - Very appreciative of the wisdom and knowledge I learn from this forum. I have a basic question that I should have known the answer by now..

Say if you plan for retirement saving by the rule of thumb of 25 X annual expense and the target date is 10 years away. If today annual expense is $40K, should the saving estimate be $1M based on today $ or 25 X inflation adjusted amount of $40K in 10 years?

Thanks !

It is totally aligned with my understanding. Thank you!

Thanks Spirit Rider. She acknowledged that her previous advice about handling family HSA limit was not correct. That made me question her other work. Regarding your comment: "Medical expenses that occurred before the establishment date of his HSA account are not qualified medical expenses. If your husband took any distributions for such medical expenses. They are non-qualified distributions subject to ordinary income tax and a 20% additional tax penalty". She insisted that his medical expenses were qualified because my HSA account (associated with the family HDHP) had opened before these expenses incurred. My understanding is he can't override that rule ( Medical expenses that occurred before the establishment date of his HSA acco...

Your comments are all aligned and confirming my understanding. Thanks all for your quick responses.

Hi Bogleheads- My accountant and I can't come to the agreement regarding tax filing for my HSA account. I have a High Deductible Health Plan coverage through my employer that covers the whole family. I maxed out $7k family contribution for 2019. My husband was over 55 in 2019. But I have been told by my HSA bank that since I am the account holder and I am under 55, I can't add 1k catch up contribution for my husband to the existing account. So in Dec 2019 he opened his own HSA account through Fidelity and put his $1k there. He also withdrew right away for his medical expenses. My family HDHP is his only health insurance coverage. I expected that we have 8k HSA tax deduction for 2019, $7k from our family account and $1k from his account. Now...

Thanks for your feedback. Appreciate it. Swapping equities / bonds between tax deferred and taxable accounts during market downturn makes perfect sense. I assume that selling stocks from taxable account during bad markets would mostly likely result in capital loss, if wash sales managed properly. So it should work out. I actually do this trick occasionally but totally missed it in the long term picture. Thanks again.

I read many posts here about Bogleheads keeping little cash in the portfolio for bear market’s cushion. Instead they draw-down from the bond portion to ride out of bad market. For those earlier retirees who have all their bonds in retirement accounts to keep tax efficient, how can they do that without 401k penalty? Do they need to save up in bonds in taxable accounts in the years approaching retirement? (So that they don't trigger taxable events when moving equity to bond in taxable account? ). Minimum how many years of expenses that bond funds should cover in the portfolio?

Thanks!

petulant wrote: ↑Sat Apr 27, 2019 10:04 am Does the new 401(k) have any other fixed income options? Can you list them?

The only other F.I option is the high yield bond fund which I am not interested. I will balance between total bond in the old 401k and stable value fund in the current 401k. Thanks.

Phineas J. Whoopee wrote: ↑Fri Apr 26, 2019 2:26 pm I hope that helps with understanding. They don't meaningfully have term risk, but their higher returns don't come without the risks I've listed.

PJW

Thanks this is very helpful.

Thanks Dandy and Megabad.

Hi Folks – Please help with a stable value fund question. My fixed income portion split 50%/50% into VG total bond (old 401k account) and Stable Value fund with Prudential (current 401K). In the old 401k I also invested in VG S&P 500 index fund with the same amount as the total bond fund. All current 401k contributions go to the Prudential stable value fund to maintain my desired AA. (The only other fixed income option in current Prudential 401k is high yield bond which I wanted to stay away from). I don’t want to invest in fixed income funds in taxable account. Over the time the amount in the Stable Value fund will outgrow the total bond fund in the old 401k. I am not sure I am comfortable with my fixed income portion skewed heavily to...

Thanks everyone! I am not concerned at all. Just curious..Still a novice investor.

Hi BH fellows- I've been observing that the fluctuation of Vanguard total stock fund - VTSAX - had been pretty close to S&P500 index. But today VTSAX increased 0.23%, whereas S&P500 index increased 0.48%, Down Jones increased 0.79%.

I thought the fund like VTSAX is the "total" market. What are the reasons for the discrepancy?

Thanks,

Hello – I would appreciate your time and advice on how to best reallocate my portfolio to include international stock fund. I was heavily influenced by Jim Collin’s stock series when I started building my portfolio, including just total US stock index and total bond fund. After lots of reading over the years, including frequently visiting this fantastic forum, I feel increasingly uncomfortable without international diversification in my AA. Quick background: Plan to retire in 7 years at age 55. Max out all tax-deferred spaces + monthly contribution to taxable account. Current AA 70% US stock / 30% bond. Desired AA: 55% total US stock / 15% International stock / 30% total bond. It is a start, could increase international % later when I have ...

Thanks Livesoft. I appreciate it.

All blocks from 1 through 5 in my example will be sold at a loss on 2/9. My question is which block the wash sale would apply. Thanks.

I posted this in the wrong place. Re-posting here... Hello BH fellows - I’ve been reading fairmark site and threads about wash sale but I am not sure I have a complete understanding of how to avoid it. Hope you can help with my specific situation below. All purchases are for the same fund. 10/31: Purchased block #1 12/04: Purchased block #2 12/14: Purchased block #3 12/20: Purchased block #4 1/22: Purchased block #5 2/9: sale date Let’s say on 2/9 I sell block 5. I will not buy the same / similar fund until more than 30D later. No wash sale for block 5 because no purchase within 30D before and after 2/9. I am not as clear as for the other blocks prior to 1/22. If I also want to sell all blocks 1,2,3,4 on 2/9, a wash sale will occur (because...

thanks FiveK. Your question helped put things in perspective. Island I am leaning toward keeping the old 401k. Thanks for your input.

H! I've been following the forum for quite sometime and tremendously appreciate the wealth of info/knowledge on this site. Most of my investment strategies came from the forum. I recently moved to the new company and would appreciate some help on 401k consolidation decision. My previous 401k is Future Fund, I have $ in 3 their funds - Core Equity - the Vanguard Institutional (S& P) Index Trust. ER 0.09% - Vanguard Mid Cap Index Fund, Institutional Plus Shares (VMCPX) - 0.12% - Vanguard Small Cap Index Fund, Institutional Plus Shares (VSCPX)-0.12% - Vanguard Total Bond Market Trust 0.11% - this is the only bond fund in my portfolio The new 401k plan is Prudential, they have only 2 bond funds the high yield bond fund (0.37%) which I don't...

Thanks for your feedback. Very helpful. I will keep investing int this fund.

Hi BH fellows - I would appreciate some help in deciding bond investment options. My AA is currently about 77%/23% stock / bond which I am comfortable with. All of my bond fund is in my 401K's US bond index fund - Vanguard Total Bond Market Trust fund, an institutional fund. To my understanding it is similar to the Vanguard total bond index fund (VBTLX), except the operating expense is 0.11% vs. VTBLX's 0.05%. US bond index fund is the cheapest bond fund in my 401k plan. (The other fund's ER is 0.32% and not an index fund). From what I learned from this forum, I should not place bond fund in my taxable account due to tax consequence. I also have bond in the TIRA but $5k/year contribution (which I just started this year) does not make much o...

Thanks much FiveK for your suggestions. They all make sense. Yes I do have HSA account and plan to max the contribution this year. I will increase bond % in my 401K as you suggested. Very helpful. Thanks again!

Hi - I've found the bogleheads forums and early retirement blogs a bit too late in life, I am trying my best to catch up and learn as much as possible. Still green on investment learning curve. I would appreciate the advice on my retirement planning below. Current retirement assets 1.Taxable investment accounts 12% cash 25% stock (VTSAX) (0.05% er) 6% intermediate govt bond VFUIX 2% stock company 2.401k (max annually) 32% stock (low cost VG index fund) 18% bond – index total bond 5% company match 3.Roth IRA at Vanguard 5% - stock (VTSAX) (0.05% er) 4.HSA’(through employer) 1% Stock – Schwab low cost index S&P500 New annual Contributions max out 401k (plus 5% employer matching contributions) Max out deductible IRA or ROTH (still in quest...