Search found 66 matches

by BD w/ Kung-Fu Grip
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: 3357

Re: Paying college tuition by credit card, is it a "purchase" or "cash advance"?

scophreak wrote: Sat Oct 07, 2023 9:23 am
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.
I 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).
You get cash back on the fee as well. .02625 × (1 + .0265) = .0269.
by BD w/ Kung-Fu Grip
Sat Feb 18, 2023 5:53 pm
Forum: Personal Investments
Topic: Plan that allows rollover of after tax money into 401k
Replies: 9
Views: 1008

Re: Plan that allows rollover of after tax money into 401k

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.
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.
by BD w/ Kung-Fu Grip
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: 7410

Re: Opt out for Advance Child Tax Credit payments available at IRS.gov

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.).
So, in this case you'll be increasing your biweekly withholding to counteract the monthly checks from the IRS?
by BD w/ Kung-Fu Grip
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: 4956

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.
by BD w/ Kung-Fu Grip
Tue May 11, 2021 11:55 am
Forum: Personal Finance (Not Investing)
Topic: [Got mysterious letter from the IRS]
Replies: 16
Views: 2508

Re: Mysterious deposit from IRS

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
So, did you keep it or follow up? Here's hoping they make the same mistake for me!
by BD w/ Kung-Fu Grip
Fri Apr 09, 2021 7:03 am
Forum: Personal Finance (Not Investing)
Topic: CPA Saying I Have Excess HSA Contribution
Replies: 32
Views: 2548

Re: CPA Saying I Have Excess HSA Contribution

Option C, drop the CPA now and don't pay him for a job not done?
by BD w/ Kung-Fu Grip
Fri Apr 09, 2021 5:17 am
Forum: Personal Investments
Topic: Please Help: After tax - non Roth 401k?
Replies: 10
Views: 1114

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.
by BD w/ Kung-Fu Grip
Thu Apr 08, 2021 6:22 pm
Forum: Personal Investments
Topic: Sidedoor Roth
Replies: 36
Views: 3133

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.
by BD w/ Kung-Fu Grip
Thu Apr 08, 2021 11:45 am
Forum: Investing - Theory, News & General
Topic: Margin instead of withdrawals
Replies: 5
Views: 753

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...
by BD w/ Kung-Fu Grip
Sat Mar 27, 2021 5:17 pm
Forum: Investing - Theory, News & General
Topic: Theory: Creating Small Leverage using Estimated Taxes Arbitrage
Replies: 26
Views: 3179

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.
by BD w/ Kung-Fu Grip
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: 631

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
by BD w/ Kung-Fu Grip
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: 17671

Re: Things to do on 1/1/2021 at 12:01am

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.
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...
by BD w/ Kung-Fu Grip
Thu Dec 24, 2020 10:22 am
Forum: Investing - Theory, News & General
Topic: 7% return in the markets
Replies: 120
Views: 15139

Re: 7% return in the markets

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
Price does not equal return. Didn't read the rest.
by BD w/ Kung-Fu Grip
Thu Sep 17, 2020 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Are permanently disallowed wash sales in IRA instant?
Replies: 2
Views: 342

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?
by BD w/ Kung-Fu Grip
Thu Sep 17, 2020 7:53 am
Forum: Personal Investments
Topic: Investing with goal of early retirement, help?
Replies: 23
Views: 1971

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...
by BD w/ Kung-Fu Grip
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: 7548

Re: Employers - Will you comply with EE request to defer payroll tax?

Seasonal wrote: Sun Aug 30, 2020 6:02 pm I wonder what might constitute such necessary arrangements?
I would guess that further guidance may be forthcoming that allows withholding from other wages in the case of a termination check for example.
by BD w/ Kung-Fu Grip
Fri Mar 13, 2020 4:49 am
Forum: Investing - Theory, News & General
Topic: Why are bonds falling?
Replies: 236
Views: 9516

Re: Total Bond Market Down >4%

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
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.
by BD w/ Kung-Fu Grip
Fri Jan 17, 2020 4:57 am
Forum: Personal Finance (Not Investing)
Topic: Mega Back Door Roth in box 11
Replies: 1
Views: 298

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?)
by BD w/ Kung-Fu Grip
Sun Dec 29, 2019 12:12 pm
Forum: Personal Investments
Topic: 401k question
Replies: 1
Views: 247

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 8:44 am
Forum: Personal Investments
Topic: Any good reason to have separate Roth IRAs for backdoor & mega backdoor?
Replies: 5
Views: 526

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

Ddd7651 wrote: Fri Dec 27, 2019 8:25 am
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?
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 on the taxable amount of the rollover (that is, often $0).
by BD w/ Kung-Fu Grip
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: 7983

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

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. :twisted: Fair warning: This probably means that 1/2/2020 will be a down day in the market and I will have overpaid.
I've pondered before making a trade on 12/31 and transferring the cash into the settlement fund on 1/2...
by BD w/ Kung-Fu Grip
Thu Dec 26, 2019 9:35 am
Forum: Personal Investments
Topic: Tax loss harvesting .....
Replies: 11
Views: 998

Re: Tax loss harvesting .....

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.
I do both when opportunities arise. Such are the wonders of life in the 12% bracket.
by BD w/ Kung-Fu Grip
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.
by BD w/ Kung-Fu Grip
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?
by BD w/ Kung-Fu Grip
Thu Nov 28, 2019 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Best Credit Card with $0 annual fee?
Replies: 48
Views: 6729

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 7:37 pm
Forum: Personal Investments
Topic: TLH Strategy During Accumulation
Replies: 7
Views: 693

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: 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...
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: 331

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: 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.
by BD w/ Kung-Fu Grip
Thu Jun 20, 2019 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Overfund HSA
Replies: 4
Views: 878

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: 482

Re: Quick question about SIMPLE IRA transfers

Gamma Ray wrote: Mon Jun 10, 2019 2:04 pm
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 contribute the full $6,000 (for 2019) to either a traditional or Roth IRA.
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: 2263

Re: "Roth IRA: Two Clocks"

w33ps wrote: Tue Jun 04, 2019 10:25 am 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 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.
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: 13373

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

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
And if an additional grandchild should be born after your passing?
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: 1063

Re: Mega backdoor Roth and Roth 401k

beth65 wrote: Thu May 23, 2019 1:53 pm 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 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.
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: 2179

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: 3984

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: 3984

Re: next dollar of savings

BeerTooth wrote: Tue Mar 05, 2019 1:19 pm 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 and dividends above a certain threshold: https://www.revenue.nh.gov/assistance/t ... m#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: 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...
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: 4633

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.
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: 206

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.
by BD w/ Kung-Fu Grip
Wed Feb 20, 2019 3:28 pm
Forum: Personal Investments
Topic: Roth IRA conversion - reversing the thinking
Replies: 9
Views: 1292

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 7:33 am
Forum: Personal Investments
Topic: My First Mega Backdoor Roth
Replies: 21
Views: 2780

Re: My First Mega Backdoor Roth

krafty81 wrote: Mon Feb 18, 2019 3:48 pm 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 contribution and rollover happen on the same date. No taxable gains. Yours may be similar.
by BD w/ Kung-Fu Grip
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

brcarls wrote: Fri Feb 15, 2019 1:30 pm 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://www.irs.gov/retirement-plans/pl ... tributions
by BD w/ Kung-Fu Grip
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: 883823

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 7:55 am
Forum: Personal Investments
Topic: Stock loss write off
Replies: 5
Views: 368

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 7:41 am
Forum: Personal Investments
Topic: Mega Back Door Roth - what 401k rules are necessary?
Replies: 12
Views: 1193

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...
by BD w/ Kung-Fu Grip
Mon Jan 14, 2019 1:50 pm
Forum: Personal Investments
Topic: Fidelity HSA spouse question
Replies: 12
Views: 1213

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.
by BD w/ Kung-Fu Grip
Fri Jan 11, 2019 1:00 pm
Forum: Personal Investments
Topic: Maxing Roth and maxing the match - Investment help
Replies: 28
Views: 1595

Re: Maxing Roth and maxing the match - Investment help

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!
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 8:45 am
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 137
Views: 10773

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 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?

AtlasShrugged? wrote: Mon Jan 07, 2019 8:32 am 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 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.