You get cash back on the fee as well. .02625 × (1 + .0265) = .0269.scophreak wrote: ↑Sat Oct 07, 2023 9:23 amI get the idea of making extra $ on the float, but unless you have a typo in the fee charged (2.65%) vs cashback (2.625%), you're otherwise 0.025% in the red (2.65-2.625=0.025).rustlers wrote: ↑Fri Oct 06, 2023 11:18 pm It will be coded as purchase. I always pay with CC. One of the colleges charges 2.65% fee.
But because I have BofA Premium rewards CC with PH, it gives 2.625% back, so I still make a few $, plus the float and not having to share bank details, makes it worth it.
Search found 66 matches
- Sun Oct 08, 2023 3:54 am
- Forum: Personal Finance (Not Investing)
- Topic: Paying college tuition by credit card, is it a "purchase" or "cash advance"?
- Replies: 22
- Views: 3396
Re: Paying college tuition by credit card, is it a "purchase" or "cash advance"?
- Sat Feb 18, 2023 5:53 pm
- Forum: Personal Investments
- Topic: Plan that allows rollover of after tax money into 401k
- Replies: 9
- Views: 1012
Re: Plan that allows rollover of after tax money into 401k
Please correct if I am wrong, but I thought the conversion could be done first, as long as the entire account is transferred afterward, and in the same year. I will soon be entering backdoor Roth territory and had planned on doing it this way.retiredjg wrote: ↑Sat Feb 18, 2023 10:52 am What you can do is rollover the pre-tax money (including earnings) to the 401k. You must be sure to leave an amount at least equal to the basis (non-deductible contributions) in the IRA. Once the pre-tax money has reached the 401k, convert the rest of the IRA (the basis) to Roth.
- Tue Jun 22, 2021 11:53 am
- Forum: Personal Finance (Not Investing)
- Topic: Opt out for Advance Child Tax Credit payments available at IRS.gov
- Replies: 80
- Views: 7536
Re: Opt out for Advance Child Tax Credit payments available at IRS.gov
So, in this case you'll be increasing your biweekly withholding to counteract the monthly checks from the IRS?anon_investor wrote: ↑Tue Jun 22, 2021 11:33 am I guess I am pretty spoiled too, I can change my W-4 online 24/7, which I usually do after there is some kind of change to my pay check (raise, bonus, etc.).
- Thu May 20, 2021 5:03 pm
- Forum: Personal Finance (Not Investing)
- Topic: Is there any value in a brick and mortar banking relationship in the year 2021 and beyond?
- Replies: 54
- Views: 4961
Re: Is there any value in a brick and mortar banking relationship in the year 2021 and beyond?
For some reason, ATMs only dispense one denomination. A stack of $20s is five times as thick and five times as likely to need re-counting than a stack of $100s. That has been more than a small convenience on a few recent occasions.
- Tue May 11, 2021 11:55 am
- Forum: Personal Finance (Not Investing)
- Topic: [Got mysterious letter from the IRS]
- Replies: 16
- Views: 2514
Re: Mysterious deposit from IRS
So, did you keep it or follow up? Here's hoping they make the same mistake for me!Johm221122 wrote: ↑Tue May 11, 2021 10:43 am No information. It just said I made a mistake. No children or ACA and simple return with just one W2 and nothing else
- Fri Apr 09, 2021 7:03 am
- Forum: Personal Finance (Not Investing)
- Topic: CPA Saying I Have Excess HSA Contribution
- Replies: 32
- Views: 2557
Re: CPA Saying I Have Excess HSA Contribution
Option C, drop the CPA now and don't pay him for a job not done?
- Fri Apr 09, 2021 5:17 am
- Forum: Personal Investments
- Topic: Please Help: After tax - non Roth 401k?
- Replies: 10
- Views: 1116
Re: Please Help: After tax - non Roth 401k?
I recommend escalating with Fidelity, your research is correct and this check is eligible for deposit into a Roth IRA with no tax due.
- Thu Apr 08, 2021 6:22 pm
- Forum: Personal Investments
- Topic: Sidedoor Roth
- Replies: 36
- Views: 3158
Re: Sidedoor Roth
I recall this idea being discussed a couple of years ago, all I could find is this related thread: viewtopic.php?f=10&t=285365
I think that what you're describing falls afoul of bans on self-transacting as price manipulation. I'm not sure what the rules are on "intent" here.
I think that what you're describing falls afoul of bans on self-transacting as price manipulation. I'm not sure what the rules are on "intent" here.
- Thu Apr 08, 2021 11:45 am
- Forum: Investing - Theory, News & General
- Topic: Margin instead of withdrawals
- Replies: 5
- Views: 754
Margin instead of withdrawals
Apart from the obvious potential for a margin call or increase in rates during a crash, why couldn't an early retiree draw his (say) 3% per year annual spending in the form of margin (or box spread loans)?
It seems like this could be used as a method to manage income, perhaps used to effectively shift capital gains tax from one year into the next. For people on the cusp of certain tax cliffs, this could be a good tool to bunch income. Am I missing anything here? The only thing I can see is the need for flexibility, potentially needing to realize lots of capital gains at once to satisfy a loan if the rates were to spike...
It seems like this could be used as a method to manage income, perhaps used to effectively shift capital gains tax from one year into the next. For people on the cusp of certain tax cliffs, this could be a good tool to bunch income. Am I missing anything here? The only thing I can see is the need for flexibility, potentially needing to realize lots of capital gains at once to satisfy a loan if the rates were to spike...
- Sat Mar 27, 2021 5:17 pm
- Forum: Investing - Theory, News & General
- Topic: Theory: Creating Small Leverage using Estimated Taxes Arbitrage
- Replies: 26
- Views: 3183
Re: Theory: Creating Small Leverage using Estimated Taxes Arbitrage
Having worked in payroll in the past, I can tell you that you may run the risk of IRS-ordered backup withholding, which will force you into holding the opposite position (i.e. overpaying throughout the year) if you play this kind of game.
- Sat Mar 06, 2021 7:10 pm
- Forum: Personal Finance (Not Investing)
- Topic: Do divorcee SS benefits increase while ex-spouse continues working?
- Replies: 1
- Views: 632
Do divorcee SS benefits increase while ex-spouse continues working?
A question that came up as my immigrant divorced parents approach retirement. My father, the only one with wage earnings, intends to keep working until he has 35 years in the US SS system. My mom wants to start SS earlier, but we can't figure out if, after claiming, her benefits will be set based on my dad's PIA as of her claim date, or if they will continue to increase as his PIA increases as he continues working. Does anyone have a definitive answer on this? Thanks
- Sat Dec 26, 2020 4:51 am
- Forum: Investing - Theory, News & General
- Topic: [Maxing out your IRA and other things to do on January 1st]
- Replies: 172
- Views: 17835
Re: Things to do on 1/1/2021 at 12:01am
Can you speed some of this up? Settlement times should allow you to purchase VTSAX in your Roth on 12/31, then do step 1 to fund it. Time in the market, my friend...manatee2005 wrote: ↑Sat Dec 26, 2020 12:08 am 1. Put $6k in Trad IRA and roll over to Roth after it’s funded
2. Put $6k into Spousal IRA and roll over to Roth after it’s funded
3. Put $7200 into Fidelity HSA (my salary is over SocSec limit so I won’t get that benefit if it’s deducted from payroll)
Anything else I’m missing? I don’t do 529s.
- Thu Dec 24, 2020 10:22 am
- Forum: Investing - Theory, News & General
- Topic: 7% return in the markets
- Replies: 120
- Views: 15164
Re: 7% return in the markets
Price does not equal return. Didn't read the rest.stocknoob4111 wrote: ↑Thu Dec 24, 2020 10:15 am The SPX was at 1400 on Jan 1, 2000. Applying 7% compounded the SPX would have to be at 6100 right now
- Thu Sep 17, 2020 9:42 am
- Forum: Personal Finance (Not Investing)
- Topic: Are permanently disallowed wash sales in IRA instant?
- Replies: 2
- Views: 344
Re: Are permanently disallowed wash sales in IRA instant?
Another interesting wrinkle: what if you repurchased those 100 shares in the taxable account a week later? Your brokerage would automatically adjust the cost basis. Would you need to keep track of that lot separately to note that the higher cost basis is not correct, because your loss had been permanently disallowed?
- Thu Sep 17, 2020 7:53 am
- Forum: Personal Investments
- Topic: Investing with goal of early retirement, help?
- Replies: 23
- Views: 1974
Re: Investing with goal of early retirement, help?
You're missing several points which make this a much simpler exercise. 1. If you need 500k to last ten years at 50k/year, you make it the stable value / fixed income portion of your portfolio, to the extent that you have such an allocation. Taking point 1, your 500k will last ten years, as required. 2. The contribution portion of your Roth accounts are available to withdraw penalty-free at any time. Taking points 1 and 2, your taxable account plus your Roth contributions need to total 500k. If you have, say, 100k of Roth contributions, you need only 400k of stable-value taxable funds. 3. Traditional IRA and 401k monies can be converted into Roth. After a five-year waiting period, they are treated as though they were direct contributions. Ta...
- Sun Aug 30, 2020 7:03 pm
- Forum: Personal Finance (Not Investing)
- Topic: Employers - Will you comply with EO request to defer payroll tax?
- Replies: 54
- Views: 7602
- Fri Mar 13, 2020 4:49 am
- Forum: Investing - Theory, News & General
- Topic: Why are bonds falling?
- Replies: 236
- Views: 9664
Re: Total Bond Market Down >4%
If I understand this correctly, this means that a Boglehead with an allocation to Vanguard Total Bond mutual fund could have scooped up a free 4% gain by selling the mutual fund to buy the ETF shortly before close, had he or she been paying attention? The price should rise back to track the NAV in a few days.msi wrote: ↑Thu Mar 12, 2020 4:28 pm Many bond ETFs are trading below NAV, not just Total Bond Market. It's a liquidity issue.
https://www.bloomberg.com/news/articles ... -bond-etfs
- Fri Jan 17, 2020 4:57 am
- Forum: Personal Finance (Not Investing)
- Topic: Mega Back Door Roth in box 11
- Replies: 1
- Views: 299
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 correct.
The numbers in boxes 1, 3 and 5 are correct. Indeed, I wonder if this will confuse the IRS since I understood that non-qualified plans would still reduce box 1, so this w2 doesn't balance. Is my thinking correct in this?
Edit: it looks like this reports a non-qualified distribution, not a contribution. It may still make the form appear unbalanced, since box 1 plus 12(D) equals box 3 (but should not, if this were indeed a NQ distribution?)
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 correct.
The numbers in boxes 1, 3 and 5 are correct. Indeed, I wonder if this will confuse the IRS since I understood that non-qualified plans would still reduce box 1, so this w2 doesn't balance. Is my thinking correct in this?
Edit: it looks like this reports a non-qualified distribution, not a contribution. It may still make the form appear unbalanced, since box 1 plus 12(D) equals box 3 (but should not, if this were indeed a NQ distribution?)
- Sun Dec 29, 2019 12:12 pm
- Forum: Personal Investments
- Topic: 401k question
- Replies: 1
- Views: 247
- Fri Dec 27, 2019 8:44 am
- Forum: Personal Investments
- Topic: Any good reason to have separate Roth IRAs for backdoor & mega backdoor?
- Replies: 5
- Views: 530
Re: Any good reason to have separate Roth IRAs for backdoor & mega backdoor?
The 5 year rule is on the taxable amount of the rollover (that is, often $0).Ddd7651 wrote: ↑Fri Dec 27, 2019 8:25 amFor regular Roth, you are correct. Backdoor and Mega, no, each contribution has a 5 year rule on the amount.bugleheadd wrote: ↑Thu Dec 26, 2019 11:31 am 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?
- Fri Dec 27, 2019 3:35 am
- Forum: Personal Investments
- Topic: Ok so I think I have a plan after a month of learning investing
- Replies: 134
- Views: 7991
Re: When can I transfer $6k to ROTH for 2020?
I've pondered before making a trade on 12/31 and transferring the cash into the settlement fund on 1/2...livesoft wrote: ↑Thu Dec 26, 2019 4:34 pm 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 WellsTrade because I think I can contribute in the hour before the market opens and then submit an order to buy ETF shares at the market open. Fair warning: This probably means that 1/2/2020 will be a down day in the market and I will have overpaid.
- Thu Dec 26, 2019 9:35 am
- Forum: Personal Investments
- Topic: Tax loss harvesting .....
- Replies: 11
- Views: 998
Re: Tax loss harvesting .....
I do both when opportunities arise. Such are the wonders of life in the 12% bracket.28fe6 wrote: ↑Thu Dec 26, 2019 8:48 am 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 purpose in order to lock in my tax rate and reset my cost basis. I just tax gain harvested some FXAIX which had like 30% gains and swapped it for VTI. I'm happy with my current tax bracket and the current cap gains rates. If the market tanks I will be able to book an even greater loss, too.
- Sat Dec 21, 2019 9:21 am
- Forum: Investing - Theory, News & General
- Topic: What happens if I convert to ETF between dividends?
- Replies: 8
- Views: 519
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% on QDI.
- Sat Dec 21, 2019 8:03 am
- Forum: Investing - Theory, News & General
- Topic: What happens if I convert to ETF between dividends?
- Replies: 8
- Views: 519
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 potential here for arbitrage in 'trading' this dividend if I pay 0% tax on QDI?
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 potential here for arbitrage in 'trading' this dividend if I pay 0% tax on QDI?
- Thu Nov 28, 2019 2:23 pm
- Forum: Personal Finance (Not Investing)
- Topic: Best Credit Card with $0 annual fee?
- Replies: 48
- Views: 6731
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.
Synchrony offers the same deal, though I'm not sure if it has similar redemption restrictions.
- Sat Nov 23, 2019 7:37 pm
- Forum: Personal Investments
- Topic: TLH Strategy During Accumulation
- Replies: 7
- Views: 694
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.
- Wed Jun 26, 2019 8:57 am
- Forum: Personal Investments
- Topic: After Tax 401k Questions
- Replies: 3
- Views: 343
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 of your 401(k). After six months they convert the entire balance to a Roth sub-account, contributions and earnings combined. Then the process repeats. There may be a second option for the "conversion" step - if they issue you a distribution of the after-tax sub-account, you can either move the entire amount to a Roth IRA (paying tax on the earnings), or split the distribution and move only the contributions to a Roth IRA, moving the ear...
- Wed Jun 26, 2019 7:56 am
- Forum: Personal Investments
- Topic: SIMPLE IRA & non-deductible tIRA Contributions
- Replies: 4
- Views: 332
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).
If you anticipate becoming part-owner of this business, presumably you can influence the decision to implement a 401(k).
- Fri Jun 21, 2019 9:50 am
- Forum: Investing - Theory, News & General
- Topic: IRA w/o deduction - Why?
- Replies: 7
- Views: 709
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.
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.
- Thu Jun 20, 2019 7:51 am
- Forum: Personal Finance (Not Investing)
- Topic: Overfund HSA
- Replies: 4
- Views: 879
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?
- Mon Jun 10, 2019 2:24 pm
- Forum: Personal Investments
- Topic: Quick question about SIMPLE IRA transfers
- Replies: 4
- Views: 485
Re: Quick question about SIMPLE IRA transfers
This is correct: a Simple IRA is treated similarly to a traditional 401(k). It does not affect your IRA limits: you can contribute the full $6,000 (for 2019) to either a traditional or Roth IRA.
- Tue Jun 04, 2019 11:04 am
- Forum: Investing - Theory, News & General
- Topic: "Roth IRA: Two Clocks"
- Replies: 20
- Views: 2266
Re: "Roth IRA: Two Clocks"
They are both after-tax dollars and they are largely treated the same. See Silk McCue's post near the top of this thread: only the pre-tax portion of conversions are subject to penalty. That said, the pre-tax portion does come out before the post-tax portion (aggregated by year). If your concern is the availability of back-door Roth funds, the pre-tax portion will be close to $0 and the tax should be negligible.
- 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: 13433
Re: Should All Grandkids Be Treated as Equal Members of Same Class?
And if an additional grandchild should be born after your passing?Broken Man 1999 wrote: ↑Mon Jun 03, 2019 12:11 pm 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(s).
Broken Man 1999
- Thu May 23, 2019 3:00 pm
- Forum: Personal Investments
- Topic: Mega backdoor Roth and Roth 401k
- Replies: 10
- Views: 1071
Re: Mega backdoor Roth and Roth 401k
The best place to roll it would seem to be nowhere. There is no need to move your traditional IRA to do a Mega Backdoor Roth. After-tax 401(k) money can typically be rolled into the plan's Roth 401(k) offering, or out to a Roth IRA. Your traditional IRA doesn't factor unless you choose to split the earnings off into it while the contributions go to the Roth IRA.
- Tue Apr 23, 2019 1:29 pm
- Forum: Personal Investments
- Topic: Where to invest for early retirement?
- Replies: 16
- Views: 2180
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.
- Thu Apr 18, 2019 2:10 pm
- Forum: Personal Investments
- Topic: next dollar of savings
- Replies: 39
- Views: 4006
- Thu Apr 18, 2019 12:15 pm
- Forum: Personal Investments
- Topic: next dollar of savings
- Replies: 39
- Views: 4006
Re: next dollar of savings
Not entirely correct. New Hampshire does tax interest and dividends above a certain threshold: https://www.revenue.nh.gov/assistance/t ... m#interest
- 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: 2880
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 Social Security, so I would bet the tax is actually 0 with room to spare. Yes there is loss of principal risk; in 2008 VSCGX lost 20% of its value, but recovered its losses by 2014. I would roll the dice At 67, six years could be a lifetime. And apparently expenses are met with 2500 and will soon be getting almost double that. So I'd start spending more money now or donating or gifting. But need more info. Agreed. 3% keeps up with inflation (typi...
- 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: 4646
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, assuming no Roth space available. The end result is still tax-free growth, without having to preserve receipts forever.
- Fri Mar 22, 2019 11:04 am
- Forum: Personal Finance (Not Investing)
- Topic: Resident alien / non-working spouse and backdoor Roth
- Replies: 1
- Views: 209
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/kayba ... ee46de.htm
FYI, there is no such thing as a joint IRA account.
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/kayba ... ee46de.htm
FYI, there is no such thing as a joint IRA account.
- Wed Feb 20, 2019 3:28 pm
- Forum: Personal Investments
- Topic: Roth IRA conversion - reversing the thinking
- Replies: 9
- Views: 1295
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.
- Wed Feb 20, 2019 7:33 am
- Forum: Personal Investments
- Topic: My First Mega Backdoor Roth
- Replies: 21
- Views: 2805
Re: My First Mega Backdoor Roth
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 contribution and rollover happen on the same date. No taxable gains. Yours may be similar.
- Fri Feb 15, 2019 1:58 pm
- Forum: Personal Investments
- Topic: Withdrawing contributions from Roth 401k after rollover to Roth IRA
- Replies: 5
- Views: 722
Re: Withdrawing contributions from Roth 401k after rollover to Roth IRA
Yes.
No.or does a clock start when I do the rollover?
Yes. https://www.irs.gov/retirement-plans/pl ... tributionsWhat about the Roth 401k gains? Is there anyway to unlock those penalty-free before I reach age 59.5?
- Wed Feb 06, 2019 9:46 am
- Forum: Investing - Theory, News & General
- Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
- Replies: 3353
- Views: 888817
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.
- Fri Feb 01, 2019 7:55 am
- Forum: Personal Investments
- Topic: Stock loss write off
- Replies: 5
- Views: 371
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.
- Fri Feb 01, 2019 7:41 am
- Forum: Personal Investments
- Topic: Mega Back Door Roth - what 401k rules are necessary?
- Replies: 12
- Views: 1194
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 is, if you contribute the full $19,000 in the first half of the year in order to make after-tax contributions, you may only receive a match on half your salary. Other plans let you make after-tax contributions at any time. If your plan has all the requisite features to let you make after-tax contributions without losing a company match and either distribute or in-plan Roth rollover those contributions, you can make Mega Back-Door Roth contributio...
- Mon Jan 14, 2019 1:50 pm
- Forum: Personal Investments
- Topic: Fidelity HSA spouse question
- Replies: 12
- Views: 1216
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 her ability to get a card, and yes, you can apply for her to get a debit card. I didn’t think that beneficiary status had anything to it with it. Just asking if there is some setting I’m missing. Fidelity website says that I can’t get a debit card at all for my HSA. Now I must set aside telephone time for a rep. https://i.ibb.co/fFPBKkL/74-D1-F0-E7-647-C-4-B96-A71-D-48-C9368345-CA.jpg The button takes a day to show up. Check tomorrow.
- Fri Jan 11, 2019 1:00 pm
- Forum: Personal Investments
- Topic: Maxing Roth and maxing the match - Investment help
- Replies: 28
- Views: 1623
Re: Maxing Roth and maxing the match - Investment help
Be aware that your employer's contribution to your HSA counts against the maximum contribution for the year.Mtangler25 wrote: ↑Fri Jan 11, 2019 11:52 am 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!
- Thu Jan 10, 2019 8:45 am
- Forum: Investing - Theory, News & General
- Topic: BHers, what is your Roth IRA %?
- Replies: 137
- Views: 10923
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.
- Mon Jan 07, 2019 9:16 am
- Forum: Investing - Theory, News & General
- Topic: Co-ordinating 401K Plans: Any special tricks?
- Replies: 2
- Views: 264
Re: Co-ordinating 401K Plans: Any special tricks?
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 that shrinks your $76 to something a bit less. If you're that close, I wouldn't bother. For others who change jobs or take additional jobs part-way through the year, over-contributing is fine.