Search found 49 matches

by BD w/ Kung-Fu Grip
Fri Jan 17, 2020 5:57 am
Forum: Personal Finance (Not Investing)
Topic: Mega Back Door Roth in box 11
Replies: 1
Views: 219

Mega Back Door Roth in box 11

I think my former employer has wrongly reported my after-tax contributions as contributions to a non-qualified plan. They appear in box 11 of my W-2. I'm going to seek a correction. Are there any potential ill effects of this reporting? It would be nice to provide potential harm as a motivator to co...
by BD w/ Kung-Fu Grip
Sun Dec 29, 2019 1:12 pm
Forum: Personal Investments
Topic: 401k question
Replies: 1
Views: 170

Re: 401k question

See this stickied thread at the top of the forum:

viewtopic.php?f=10&t=129142
by BD w/ Kung-Fu Grip
Fri Dec 27, 2019 9:44 am
Forum: Personal Investments
Topic: Any good reason to have separate Roth IRAs for backdoor & mega backdoor?
Replies: 5
Views: 394

Re: Any good reason to have separate Roth IRAs for backdoor & mega backdoor?

Correct me I'm wrong , but doesn't the five year rule start once you open your first Roth account. So you don't need to keep track of 5 years forany Roth's you open later? For regular Roth, you are correct. Backdoor and Mega, no, each contribution has a 5 year rule on the amount. The 5 year rule is...
by BD w/ Kung-Fu Grip
Fri Dec 27, 2019 4:35 am
Forum: Personal Investments
Topic: Ok so I think I have a plan after a month of learning investing
Replies: 134
Views: 6038

Re: When can I transfer $6k to ROTH for 2020?

Has anybody actually bought any investment at the market open on January 2 from funds that were put in the IRA after midnight on 12/31? And has anybody gotten the 12/31 market close price on any investment bought in the next calendar year? Added: I will attempt to get the market open price at Wells...
by BD w/ Kung-Fu Grip
Thu Dec 26, 2019 10:35 am
Forum: Personal Investments
Topic: Tax loss harvesting .....
Replies: 11
Views: 824

Re: Tax loss harvesting .....

OP is correct. Tax loss harvesting is only tax deferral. It's not a guaranteed win at all. I decided I don't want to tax loss harvest. The idea of lowering all my cost basis in my taxable account in order to create future tax bombs is not appealing to me. In fact, I often tax-GAIN harvest on purpos...
by BD w/ Kung-Fu Grip
Sat Dec 21, 2019 10:21 am
Forum: Investing - Theory, News & General
Topic: What happens if I convert to ETF between dividends?
Replies: 8
Views: 396

Re: What happens if I convert to ETF between dividends?

I wondered if it might be different than an ordinary dividend trade since they are effectively the same security. I suppose the answer then is yes, the dividend is priced in as usual, and adjusted for anticipated tax, so I can improve returns by converting in tax advantaged, or taxable if I pay 0% o...
by BD w/ Kung-Fu Grip
Sat Dec 21, 2019 9:03 am
Forum: Investing - Theory, News & General
Topic: What happens if I convert to ETF between dividends?
Replies: 8
Views: 396

What happens if I convert to ETF between dividends?

The Vanguard Total Stock mutual fund (VTSAX) went ex-dividend yesterday. The Vanguard Total Stock ETF (VTI) goes ex-dividend on Tuesday. What happens if I convert from VTSAX to VTI on Monday? The obvious answer is that I collect both dividends. How does Vanguard take this into account? Is there pote...
by BD w/ Kung-Fu Grip
Thu Nov 28, 2019 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Best Credit Card with $0 annual fee?
Replies: 48
Views: 4937

Re: Best Credit Card with $0 annual fee?

Fidelity offers a flat 2% and $150 signup bonus after $1500 spend within 90 days. You have to redeem into a Fidelity account to get the full 2% though.

Synchrony offers the same deal, though I'm not sure if it has similar redemption restrictions.
by BD w/ Kung-Fu Grip
Sat Nov 23, 2019 8:37 pm
Forum: Personal Investments
Topic: TLH Strategy During Accumulation
Replies: 7
Views: 541

Re: TLH Strategy During Accumulation

Why would you have to wait 30 days after your last investment? Presumably, if the "bottom falls out," these recently-purchased shares will have lost money so you're going to sell them. No wash sale.
by BD w/ Kung-Fu Grip
Wed Jun 26, 2019 8:57 am
Forum: Personal Investments
Topic: After Tax 401k Questions
Replies: 3
Views: 244

Re: After Tax 401k Questions

1. No. You can still make your Roth contributions up to 19k (plus any catch-up contributions). 2. Yes. (Probably. See second note below.) 3. Because you're exploiting a loophole in the tax code. Your understanding is also somewhat flawed. Your contributions sit in a designated after-tax sub-account ...
by BD w/ Kung-Fu Grip
Wed Jun 26, 2019 7:56 am
Forum: Personal Investments
Topic: SIMPLE IRA & non-deductible tIRA Contributions
Replies: 4
Views: 215

Re: SIMPLE IRA & non-deductible tIRA Contributions

If you anticipate having access to a 401(k) at some point in the future, I'd say definitely yes.
If you anticipate becoming part-owner of this business, presumably you can influence the decision to implement a 401(k).
by BD w/ Kung-Fu Grip
Fri Jun 21, 2019 9:50 am
Forum: Investing - Theory, News & General
Topic: IRA w/o deduction - Why?
Replies: 7
Views: 593

Re: IRA w/o deduction - Why?

Three reasons:
1. creditor protection
2. back-door Roth
3. If your intended investment plan for this money generates ordinary income anyway, deferring the tax can result in being taxed at a lower rate in the future.
by BD w/ Kung-Fu Grip
Thu Jun 20, 2019 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Overfund HSA
Replies: 4
Views: 718

Re: Overfund HSA

I'm sensing an opportunity for arbitrage here - can you stuff it with another $7k, withdraw the excess contribution and save the $500 FICA tax?
by BD w/ Kung-Fu Grip
Mon Jun 10, 2019 2:24 pm
Forum: Personal Investments
Topic: Quick question about SIMPLE IRA transfers
Replies: 4
Views: 336

Re: Quick question about SIMPLE IRA transfers

I was told that I could also make contribution to my ROTH IRA on the side since Simple IRA counts as employer provided retirement investment and it goes as Traditional IRA. This is correct: a Simple IRA is treated similarly to a traditional 401(k). It does not affect your IRA limits: you can contri...
by BD w/ Kung-Fu Grip
Tue Jun 04, 2019 11:04 am
Forum: Investing - Theory, News & General
Topic: "Roth IRA: Two Clocks"
Replies: 20
Views: 1981

Re: "Roth IRA: Two Clocks"

It is strange to me that conversions and contributions are not treated the same as far as penalty-free withdrawals at any time regardless of account age. Are they not both after tax dollars? They are both after-tax dollars and they are largely treated the same. See Silk McCue's post near the top of...
by BD w/ Kung-Fu Grip
Mon Jun 03, 2019 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Should All Grandkids Be Treated as Equal Members of Same Class?
Replies: 104
Views: 8857

Re: Should All Grandkids Be Treated as Equal Members of Same Class?

My plan is to treat each member of the same generation the same; that is my children will get the same, and my grandchildren will get the same. That seems fair to me. The grandchildren had no hand in deciding the number of siblings they have. No reason for them to get more or less than their cousin...
by BD w/ Kung-Fu Grip
Thu May 23, 2019 3:00 pm
Forum: Personal Investments
Topic: Mega backdoor Roth and Roth 401k
Replies: 10
Views: 881

Re: Mega backdoor Roth and Roth 401k

I work for a fortune 100. They offer a 401k, after-tax contribution, and a Roth 401k. The plan allows IRA rollovers. I have $90k in an IRA, so where is the best place to roll it into? The best place to roll it would seem to be nowhere. There is no need to move your traditional IRA to do a Mega Back...
by BD w/ Kung-Fu Grip
Tue Apr 23, 2019 1:29 pm
Forum: Personal Investments
Topic: Where to invest for early retirement?
Replies: 16
Views: 1664

Re: Where to invest for early retirement?

I'm planning early retirement, and I use a good old traditional IRA, alongside my employer traditional 401(k). As long as you have enough in taxable accounts or Roth contributions to cover the five-year lag, you can use a Roth conversion ladder to tap traditional accounts long before 55.
by BD w/ Kung-Fu Grip
Thu Apr 18, 2019 2:10 pm
Forum: Personal Investments
Topic: next dollar of savings
Replies: 39
Views: 3524

Re: next dollar of savings

BeerTooth wrote:
Thu Apr 18, 2019 12:29 pm
OK, fair enough but if I get anywhere near $4,800 in interest and dividends, I'm holding way too much in cash!
Dividends includes dividends paid by stocks, mutual funds and ETFs; including qualified dividends that might otherwise be taxed at 0% federally.
by BD w/ Kung-Fu Grip
Thu Apr 18, 2019 12:15 pm
Forum: Personal Investments
Topic: next dollar of savings
Replies: 39
Views: 3524

Re: next dollar of savings

The tradeoff between 529 vs. taxable brokerage boils down to flexibility (529 is less flexible) vs. the benefit of untaxed earnings at the federal level. There is no state tax benefit for me since New Hampshire does not collect state income tax. Not entirely correct. New Hampshire does tax interest...
by BD w/ Kung-Fu Grip
Fri Mar 29, 2019 8:15 am
Forum: Personal Investments
Topic: Guaranteed 3% for the next 20 years or take a chance on the market?
Replies: 13
Views: 2650

Re: Guaranteed 3% for the next 20 years or take a chance on the market?

With only $2500 per month income, and given that they are both over age 65, it looks like they have almost zero taxable income ($2500 *12 = $30k, standard deduction $24.4k, $1300 senior deduction * 2 = $2600, total = $27k; taxable income = $3k, taxes = $300 per year) It sounds like some of that is ...
by BD w/ Kung-Fu Grip
Wed Mar 27, 2019 12:36 pm
Forum: Investing - Theory, News & General
Topic: Deferring HSA by paying medical Out-of-Pocket: Overblown?
Replies: 42
Views: 3955

Re: Deferring HSA by paying medical Out-of-Pocket: Overblown?

I withdraw money from my HSA when I have medical expenses. If I have too much cash building up in my checking account, I increase my Mega Backdoor Roth contribution. Other people with low expected retirement tax brackets could invest in a taxable S&P 500 fund paying only qualified dividends, assumin...
by BD w/ Kung-Fu Grip
Fri Mar 22, 2019 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Resident alien / non-working spouse and backdoor Roth
Replies: 1
Views: 128

Re: Resident alien / non-working spouse and backdoor Roth

Short answer: Yes. Long answer: If she has an SSN or ITIN, she can open any kind of IRA and use it the same way as a US citizen. As you are married filing jointly, that includes making a Kay Bailey Hutchison Spousal IRA contribution. https://taxmap.irs.gov/taxmap/ts0/kaybaileyhutchison_o_03ee46de.ht...
by BD w/ Kung-Fu Grip
Wed Feb 20, 2019 4:28 pm
Forum: Personal Investments
Topic: Roth IRA conversion - reversing the thinking
Replies: 9
Views: 1146

Re: Roth IRA conversion - reversing the thinking

To answer your core question regarding reversing the conversion: You can't. The law was changed in 2017 and conversions can no longer be reversed after 12/31 of the tax year in which they were made.
by BD w/ Kung-Fu Grip
Wed Feb 20, 2019 8:33 am
Forum: Personal Investments
Topic: My First Mega Backdoor Roth
Replies: 21
Views: 2186

Re: My First Mega Backdoor Roth

My Vanguard 401k plan with my employer only allows one withdrawal from after tax per year. I wish they allowed monthly. Mine is the same, but allows in-plan Roth rollovers at any time. I also found that if I make the request through the website a day before the contribution goes in, the contributio...
by BD w/ Kung-Fu Grip
Fri Feb 15, 2019 2:58 pm
Forum: Personal Investments
Topic: Withdrawing contributions from Roth 401k after rollover to Roth IRA
Replies: 5
Views: 476

Re: Withdrawing contributions from Roth 401k after rollover to Roth IRA

If I were to FIRE now, could I rollover my Roth 401k to my Roth IRA and begin withdrawing my original Roth 401k contributions, Yes. or does a clock start when I do the rollover? No. What about the Roth 401k gains? Is there anyway to unlock those penalty-free before I reach age 59.5? Yes. https://ww...
by BD w/ Kung-Fu Grip
Wed Feb 06, 2019 10:46 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 3353
Views: 327935

Re: HEDGEFUNDIE's excellent adventure [3x leveraged ETF strategy]

In for 1k. The commissions may eat my return, but it might be a bit of fun.
by BD w/ Kung-Fu Grip
Fri Feb 01, 2019 8:55 am
Forum: Personal Investments
Topic: Stock loss write off
Replies: 5
Views: 222

Re: Stock loss write off

The $3,000 limit is for deducting capital losses against ordinary income over and above capital gains. In your example, you can and (I think) must deduct your $40,000 losses against your $50,000 gains.
by BD w/ Kung-Fu Grip
Fri Feb 01, 2019 8:41 am
Forum: Personal Investments
Topic: Mega Back Door Roth - what 401k rules are necessary?
Replies: 12
Views: 1007

Re: Mega Back Door Roth - what 401k rules are necessary?

You'll need after-tax contributions, and either in-service distributions of after-tax contributions or a Roth option plus an in-plan Roth Rollover option. Some plans only allow after-tax once pre-tax is fully filled, some only match pay-by-pay and some match only pre-tax or roth contributions; that ...
by BD w/ Kung-Fu Grip
Mon Jan 14, 2019 2:50 pm
Forum: Personal Investments
Topic: Fidelity HSA spouse question
Replies: 12
Views: 754

Re: Fidelity HSA spouse question

Just signed up—yet to transfer funds. 1. Do they automatically send debit card/checks? 2. If I add my wife as a trusted contact and 100% beneficiary to my HSA account, will fidelity send her her own card? Can’t tell any of that from website. Your wife's status as beneficiary has nothing to do with ...
by BD w/ Kung-Fu Grip
Fri Jan 11, 2019 2:00 pm
Forum: Personal Investments
Topic: Maxing Roth and maxing the match - Investment help
Replies: 28
Views: 1341

Re: Maxing Roth and maxing the match - Investment help

Mtangler25 wrote:
Fri Jan 11, 2019 12:52 pm
Lakpr,

I should also include that my employer usually makes a contribution to our HSAs' this year was a total of $1,300 which is quite generous!
Be aware that your employer's contribution to your HSA counts against the maximum contribution for the year.
by BD w/ Kung-Fu Grip
Thu Jan 10, 2019 9:45 am
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 137
Views: 8739

Re: BHers, what is your Roth IRA %?

Intending to retire early and wash traditional through Roth with a 5-year lag, ~15% of retirement contributions are mega back-door conversions so that my basis keeps accumulating, to get me through the first 5-year lag period after retirement.
by BD w/ Kung-Fu Grip
Mon Jan 07, 2019 10:16 am
Forum: Investing - Theory, News & General
Topic: Co-ordinating 401K Plans: Any special tricks?
Replies: 2
Views: 210

Re: Co-ordinating 401K Plans: Any special tricks?

but whatever you do, you better not go over!!! Why not? The procedure for removing excess 401(k) contributions in this manner is fairly straightforward. Edited to add: Requesting a return of an excess contribution is straightforward, but probably entails a distribution fee and taxes on earnings tha...
by BD w/ Kung-Fu Grip
Fri Jan 04, 2019 10:45 am
Forum: Investing - Theory, News & General
Topic: Swap trades avoids taxes on dividends?
Replies: 3
Views: 223

Re: Swap trades avoids taxes on dividends?

I recently did the opposite: Sold my shares right after the dividend to net a larger capital loss (the dividends were qualified and taxed at 0%).
by BD w/ Kung-Fu Grip
Mon Dec 31, 2018 1:50 pm
Forum: Investing - Theory, News & General
Topic: December 31st transaction?
Replies: 11
Views: 1981

Re: December 31st transaction?

And as I already posted: Trade date is what is important and used for 1099s and taxes, not settlement date. So what if I buy $6,000 worth of VTI in my IRA today, and deposit the cash on Wednesday as a 2019 contribution? I suppose that if I had RMDs, they would be calculated including that $6,000. O...
by BD w/ Kung-Fu Grip
Tue Dec 18, 2018 1:55 pm
Forum: Investing - Theory, News & General
Topic: Has anyone adjusted their stock allocation on the dip?
Replies: 71
Views: 6035

Re: Has anyone adjusted their stock allocation on the dip?

I reduced my allocation to Vanguard total stock market and increased my allocation to Schwab total stock market. I saved a couple hundred dollars in tax.
by BD w/ Kung-Fu Grip
Tue Dec 11, 2018 2:46 pm
Forum: Personal Investments
Topic: Vanguard TIRA Timing Question
Replies: 3
Views: 220

Re: Vanguard TIRA Timing Question

You can.
by BD w/ Kung-Fu Grip
Mon Dec 03, 2018 4:19 pm
Forum: Investing - Theory, News & General
Topic: "When's the Right Time to Take RMDs?" – (Christine Benz's Latest Column)
Replies: 45
Views: 7730

Re: "When's the Right Time to Take RMDs?" – (Christine Benz's Latest Column)

sport wrote:
Mon Dec 03, 2018 3:40 pm
Conversion of RMDs is not permitted.
That's why I asked. In that case, the advice would have been to call a tax attorney.
by BD w/ Kung-Fu Grip
Mon Dec 03, 2018 12:21 pm
Forum: Investing - Theory, News & General
Topic: "When's the Right Time to Take RMDs?" – (Christine Benz's Latest Column)
Replies: 45
Views: 7730

Re: "When's the Right Time to Take RMDs?" – (Christine Benz's Latest Column)

Given that my RMD's come from inherited IRA's. I have been taking them at end of year and dumping to Roth IRA's. Any better ideas on this approach? To clarify, are you converting your RMDs to Roth IRAs, or are you contributing up to the greater of the Roth IRA legal maximum or 100% of your earned i...
by BD w/ Kung-Fu Grip
Wed Nov 21, 2018 3:58 pm
Forum: Investing - Theory, News & General
Topic: my review of my HSA with Saturna brokerage
Replies: 170
Views: 49420

Re: my review of my HSA with Saturna brokerage

I plan to. Currently holding off because half of mine is invested in VTSAX, so I'm waiting to see if I can have that held at Fidelity with Vanguard's changes. I figure even if I can't dodge the $75 closing fee, the savings on trading fees and convenience of being able to do small trades will be wel...
by BD w/ Kung-Fu Grip
Tue May 01, 2018 7:53 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 12575
Views: 2177837

Re: U.S. stocks in freefall

The S&P 500 index closed yesterday at about the same level as it did on Dec 15, 2017, so all those ups and downs in the last four and a half months have been like running in place: lots of energy expended with no real progress. Do people have expectation that every quarter / month /week should show...
by BD w/ Kung-Fu Grip
Tue Feb 06, 2018 12:14 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 12575
Views: 2177837

Re: U.S. stocks in freefall

First it's great that this thread has been running since 2011... Hope to check back in a year or 10 on it. I'm feeling like current horror sequel is "International Stocks in Freefall Too* I was thinking along the lines of @parsi1 's post, about the arguable value of international. As of late, there...
by BD w/ Kung-Fu Grip
Fri Oct 06, 2017 8:29 am
Forum: Personal Investments
Topic: Trying to convince my sister not to use a financial advisor
Replies: 59
Views: 6332

Re: Trying to convince my sister not to use a financial advisor

tfb wrote:
Thu Oct 05, 2017 5:34 pm
Family is different than just coworkers. I will take the blame to save my sister.
It's not that simple. If the market tanks and she blames you, she may then end up bailing out at the worst moment. Then you've got the blame and you didn't save her.
by BD w/ Kung-Fu Grip
Wed Aug 16, 2017 7:51 am
Forum: Investing - Theory, News & General
Topic: "Vanguard fund shareholders encouraged to vote as proxy campaign gets under way."
Replies: 89
Views: 29661

Re: "Vanguard fund shareholders encouraged to vote as proxy campaign gets under way."

And finally, how exactly did this get proposed? If it's Vanguard, I find it disturbing that they want to inject politics into their investment decisions. From the look of it, any shareholder can propose pretty much anything. I wrote to the secretary requesting details on the proponents (the letter ...
by BD w/ Kung-Fu Grip
Wed Jul 26, 2017 7:35 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 36131

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

You'll know when yours appears, because Vanguard will email you repeatedly about it. Yeah, Vanguard sent me email #2 this morning. :P I've had three, and the nag message every login. But my employer-sponsored SIMPLE account can't be migrated, apparently. I'm resisting because I don't want to be stu...
by BD w/ Kung-Fu Grip
Wed Jul 12, 2017 7:53 am
Forum: Personal Investments
Topic: Where to put 65k cash
Replies: 64
Views: 6972

Re: Where to put 65k cash

carguy1993 wrote:I just started a 401k at my job and they will match 3% so I put 7% in there. I make 30k a year before taxes.
Why not 60%? Pay no taxes for the year by effectively putting ~16k of your 65k into your 401k.
by BD w/ Kung-Fu Grip
Thu Jun 15, 2017 8:13 am
Forum: Personal Investments
Topic: Changing to include Emergency Fund as part of asset allocation - best way to do this?
Replies: 23
Views: 3042

Re: Changing to include Emergency Fund as part of asset allocation - best way to do this?

I am still actively contributing to my SIMPLE IRA every two weeks. Are you saying that I could set up my own SIMPLE IRA (for example, at Vanguard versus the manager of my employer plan) and get my employer to send future contributions there? Yes to the first part, "it depends" to the second. Your e...
by BD w/ Kung-Fu Grip
Wed Jun 14, 2017 2:30 pm
Forum: Personal Investments
Topic: Changing to include Emergency Fund as part of asset allocation - best way to do this?
Replies: 23
Views: 3042

Re: Changing to include Emergency Fund as part of asset allocation - best way to do this?

My SIMPLE IRA is invested in a target-date fund that is currently 80/20 (one of the only good options available), so until I leave my current job and roll it over into a traditional IRA, adding bonds there would not be an option. The funds in your SIMPLE IRA are not locked into your employer. You c...
by BD w/ Kung-Fu Grip
Thu May 11, 2017 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Best HSA (2017)
Replies: 190
Views: 45977

Re: Best HSA (2017)

Unless I miss something, the method with Saturna is to invest thusly: 1. In Vanguard (or Fidelity) for accounts under $2,500 (including the 12.50 inactivity fee, the effective ER is 0.54% at $2,500) 2. T. Rowe PREIX as suggested by duckcalldan for $2,500 < balance < $5,952 (by trading once per year,...