Search found 588 matches

by cas
Fri May 17, 2019 5:26 am
Forum: Personal Finance (Not Investing)
Topic: Helping father with finances - discovered he never took RMDs
Replies: 5
Views: 2286

Re: Helping father with finances - discovered he never took RMDs

First question is... if he files his taxes electronically, how does one also submit a letter requesting a waiver of the 50% penalty for late RMD dispersion? Sorry, not my area of expertise, so I don't have anything immediate to offer. But I've seen this same situation discussed several times on the...
by cas
Thu May 16, 2019 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Question
Replies: 11
Views: 480

Re: Backdoor Roth Question

I am getting the effective 19.2 percent on converting because my itemized deductions bring my taxable income down below my qualified business income, so by adding income back in the form of a Roth conversion, I am increasing my 199A deduction. Effectively, for each $1 I convert to Roth up to my QBI...
by cas
Thu May 16, 2019 7:56 am
Forum: Personal Investments
Topic: Confused about simplicity vs tax efficiency
Replies: 19
Views: 1580

Re: Confused about simplicity vs tax efficiency

I have about 600,000 in taxable. I have been very happy with the simplicity and asset allocation of the Life-strategy fund. I have a combo of growth and moderate growth funds. I don’t mind paying a little more in expenses and taxes. However, I will soon gave about 200,000 more to invest so I find m...
by cas
Thu May 16, 2019 7:25 am
Forum: Personal Investments
Topic: Spin off cost basis calculation.
Replies: 2
Views: 233

Re: Spin off cost basis calculation.

On these sorts of things, a good place to start is to google something like "ADP CDK spin-off tax consequences" , then go through the results looking for some sort of official information. In this case, the first result looks very useful but goes into never-never land for me. The second result is to...
by cas
Wed May 15, 2019 11:56 am
Forum: Personal Investments
Topic: $12,000 in Bonds from Grandparents and need help!
Replies: 11
Views: 897

Re: $12,000 in Bonds from Grandparents and need help!

Just found out that I have around $12,000 in bonds and probably 90% of them are fully matured. The remaining 10% mature in the next year or two but most are earning 4% interest. What kind of bonds are these? From the description, they sound suspiciously like they might be EE Savings Bonds, original...
by cas
Wed May 15, 2019 10:18 am
Forum: Personal Consumer Issues
Topic: Health Insurance question for early retiree
Replies: 8
Views: 620

Re: Health Insurance question for early retiree

Assuming she gets onto another plan until Medicare kicks in, how much should I advise her it would cost? (approximately) If her state uses the federal health insurance exchange, this tool will show her the price of ACA plans available in her county. (This is not the whole ACA application. It is an ...
by cas
Tue May 14, 2019 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare, HSA, Contributions for a married couple in the year they both turn 65
Replies: 4
Views: 248

Re: Medicare, HSA, Contributions for a married couple in the year they both turn 65

If there is a calculator that helpful for this, I'd appreciate a link to it. Not exactly a calculator, but here is the official IRS worksheet for calculating HSA contributions (see page 4): https://www.irs.gov/pub/irs-pdf/i8889.pdf (see page 4 for the worksheet and page 3 for the instructions/examp...
by cas
Mon May 13, 2019 11:15 am
Forum: Personal Investments
Topic: 0% LT Capital Gain Tax Question
Replies: 12
Views: 1191

Re: 0% LT Capital Gain Tax Question

You may well have already thought about this and be asking about just the federal taxes, but ... just to be safe, let me throw in this: If your state has a state income tax, don't forget about state taxes on the capital gains. (Most states I've seen treat capital gains the same as ordinary income (e...
by cas
Mon May 13, 2019 8:27 am
Forum: Personal Investments
Topic: tIRA Rollover to HSA
Replies: 9
Views: 538

Re: tIRA Rollover to HSA

Has anyone done the one time IRA to HSA rollover? The Boglehead's wiki on Health Savings Account advises against the one time IRA to HSA rollover (except in certain emergency situations): You can make a once in a lifetime rollover or transfer from an IRA to an HSA up to the annual HSA funding limit...
by cas
Wed May 08, 2019 6:24 am
Forum: Personal Finance (Not Investing)
Topic: How Is My Employer's Reimbursement of one-half HSA Deductible Treated for Tax Purposes?
Replies: 15
Views: 796

Re: How Is My Employer's Reimbursement of one-half HSA Deductible Treated for Tax Purposes?

I am guessing that your employer has set this up as a ¨HRA¨ ( Health Reimbursement Account ). Assuming it is a properly run accountable HRA, the reimbursement is for qualifying medical expenses for which you have provided substantiation (receipts, bills, EOBs) that the employer will maintain for it...
by cas
Tue May 07, 2019 1:47 pm
Forum: Personal Investments
Topic: Age 33 Retirement Portfolio Questions
Replies: 9
Views: 3057

Re: Age 33 Retirement Portfolio Questions

am61175 wrote:
Tue May 07, 2019 11:29 am
The current plan is to wait until Jan 2020, sell it all using Average Cost Basis, which currently reads as a 10kish capital gains. I still need to research if the whole 28k counts towards my AGI, or if its just the Capital Gains.
Just the capital gains.
by cas
Tue May 07, 2019 1:45 pm
Forum: Personal Investments
Topic: Advice re: future inheritance & Parent's tIRA--should they convert to ROTH IRA?
Replies: 28
Views: 1548

Re: Advice re: future inheritance & Parent's tIRA--should they convert to ROTH IRA?

When you look at Federal Income taxes, remember to keep the thresholds for when and how much of their Social Security benefits are taxes as well - an extra dollar of income from the IRA distribution can result in an increase in taxable income of $1.5 - $1.85 depending on the thresholds. Sorry to be...
by cas
Tue May 07, 2019 9:11 am
Forum: Personal Investments
Topic: Age 33 Retirement Portfolio Questions
Replies: 9
Views: 3057

Re: Age 33 Retirement Portfolio Questions

If you do want to sell it, I'd suggest selling it all on one day and, hopefully, at one price. Will make the calculation somewhat easier. I agree that selling it all at once would make filling out the Schedule D/Form 8949 easier. But ... watch out that selling it all in one year doesn't generate en...
by cas
Sun May 05, 2019 7:04 am
Forum: Personal Investments
Topic: CDs in early retirement to enable Roth Conversions?
Replies: 33
Views: 3119

Re: CDs in early retirement to enable Roth Conversions?

~$32K qualified income (dividends, *LTCG* from taxable and trust) (highlight/bold by me) Another quick thought: Where are the LTCG coming from? If they are coming from you choosing to sell to achieve your own purposes, that's fine. But if they are out of your control because they are capital gains ...
by cas
Sun May 05, 2019 6:54 am
Forum: Personal Investments
Topic: CDs in early retirement to enable Roth Conversions?
Replies: 33
Views: 3119

Re: CDs in early retirement to enable Roth Conversions?

I am going to be retiring sometime soonish -- I have transitioned to part time and all the numbers say I could do it, so I guess I am in One-More-Year territory. So it could happen at any time, but right now I am happy with my part-time work-from-home gig. I am currently 57, and I will receive a pe...
by cas
Sat May 04, 2019 2:42 pm
Forum: Personal Investments
Topic: 76 year old widowed mother needs investment advice
Replies: 19
Views: 1748

Re: 76 year old widowed mother needs investment advice

LTCG and qualified dividends are taxed at the 0% rate for all that fits into the 12% bracket. With your mother's 8k pension and 26k of SS (85% or less of this is taxable), and after the 12k standard deduction, she probably has some space in the 12% bracket, below $39475, to get the 0% rate. Except ...
by cas
Sat May 04, 2019 2:31 pm
Forum: Personal Investments
Topic: 76 year old widowed mother needs investment advice
Replies: 19
Views: 1748

Re: 76 year old widowed mother needs investment advice

My mom continues to worry about the money. [ . . . ] skip quite a bit [. . .] Selling assets in taxable accounts may incur capital gains taxes, but these can be kept to zero if gains are limited to $39,375/year (2019). Is this correct regarding long term capital gains (LTCG)? It was my understandin...
by cas
Sat May 04, 2019 12:46 pm
Forum: Personal Investments
Topic: AMT sweet spot
Replies: 9
Views: 1194

Re: AMT sweet spot

Questions : 1. Where does AMT start to hit in 2019 ? 2. Is the bump zone for 2019 from $1,020,600 to $1,465,800 ? 3. I assume with a least income of $350K + some dividends, I will fall under AMT ( even if I do not realize any LTCG). So, at what income should I start to accelerate income by taking L...
by cas
Sat May 04, 2019 6:56 am
Forum: Personal Investments
Topic: AMT sweet spot
Replies: 9
Views: 1194

Re: AMT sweet spot

I am confused what you mean by sweet spot. Do you think you'll have less money after-tax if you make $1,437,601 than if you are at $1,437,600? That should not be the case. Congrats on having this problem. Michael Kitces has graphics/discussion of what (I think) the OP is talking about. See the disc...
by cas
Tue Apr 30, 2019 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Tax Questions on Roth IRA Conversion and Qualified Dividends
Replies: 21
Views: 870

Re: Tax Questions on Roth IRA Conversion and Qualified Dividends

Just to make sure that I'm going about the taxable income calculation correctly: Given my -$40,000 capital loss carryover, any capital gain up to this amount is offset $ to $. Thus, such capital gain should not increase my taxable income, right? Correct. (I'm assuming you are talking about the most...
by cas
Tue Apr 30, 2019 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Tax Questions on Roth IRA Conversion and Qualified Dividends
Replies: 21
Views: 870

Re: Tax Questions on Roth IRA Conversion and Qualified Dividends

Also keep in mind that to the extent some of your Roth conversion forces a portion of your Qualified Dividends (QD's) to be taxed at 15%, the marginal tax rate on the portion of your Roth conversion which caused that to happen will be at least 37% (22% on ordinary income + 15% on QD's). Mike, Is th...
by cas
Tue Apr 30, 2019 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Tax Questions on Roth IRA Conversion and Qualified Dividends
Replies: 21
Views: 870

Re: Tax Questions on Roth IRA Conversion and Qualified Dividends

It seems that the more I think about this, the more confused I am :confused Please help!!!! Many people have reported finding this article (with graphics) useful for helping their understanding on the interaction of ordinary income (e.g. Roth conversions) and qualified dividends/long-term capital g...
by cas
Sat Apr 27, 2019 7:57 am
Forum: Personal Finance (Not Investing)
Topic: Is my tax advisor correct?
Replies: 6
Views: 1309

Re: Is my tax advisor correct?

Small town in Midwest. (Sorry, staying anonymous). But not NYC. RITA? (Regional Income Tax Authority - manages municipal taxes for a bunch of municipalities in the Midwest.) I can't speak to business taxes, but - for individual taxes - for every RITA municipality I've ever paid taxes in, the city t...
by cas
Fri Apr 26, 2019 1:15 pm
Forum: Personal Investments
Topic: The journey of the long lost stock
Replies: 15
Views: 1296

Re: The journey of the long lost stock

It sounds like you have already done a thorough search for the missing stock certificate, so I assume you have already looked all the places that your parents might have put the original broker's purchase slip or some other relevant documentation? If that is missing, I would probably recommend that ...
by cas
Thu Apr 25, 2019 11:50 am
Forum: Personal Investments
Topic: Should I start doing Roth Conversions and if so
Replies: 89
Views: 6190

Re: Should I start doing Roth Conversions and if so

While not as good as 60%, 30% isn't terrible. Chart below shows the same $300K QD, but $210K in charitable contribution due to appreciated stock. Above $400K tIRA withdrawal the marginal rates go above 35%, but up to that point they are more palatable. Should charitable contributions be $210K or $4...
by cas
Wed Apr 24, 2019 2:21 pm
Forum: Personal Investments
Topic: Should I start doing Roth Conversions and if so
Replies: 89
Views: 6190

Re: Should I start doing Roth Conversions and if so

Why does the "marginal" line not start at $0? I'll have to think this out a little bit. Edit: FiveK answered while I was writing, but ... here's what I wrote anyway. That marginal graph was odder than I expected, and I had to think about it more than a little! :wink: This may well be clear as mud, ...
by cas
Tue Apr 23, 2019 6:34 pm
Forum: Personal Investments
Topic: Should I start doing Roth Conversions and if so
Replies: 89
Views: 6190

Re: Should I start doing Roth Conversions and if so

Guess I'm just looking for comments on whether my thoughts are nutty and way off base. I don't think it is nutty. I don't know what the results will be, but I think it is well worth modelling to see if it is another technique - along with QCDs - that may be useful, in certain circumstances, when ch...
by cas
Tue Apr 23, 2019 10:33 am
Forum: Personal Consumer Issues
Topic: Separate individual HSA plans for wife and husband?
Replies: 7
Views: 430

Re: Separate individual HSA plans for wife and husband?

Short version: The $7,000 annual family limit is shared between spouses. The $3,500 annual individual limit is personal. (The $1,000 catch-up contribution at age 55 is also personal.) And the Boring Version: instructions for line 3 (page 3) and the Contribution Limitation Worksheet (page 4) in the ...
by cas
Mon Apr 22, 2019 12:25 pm
Forum: Personal Investments
Topic: Should I start doing Roth Conversions and if so
Replies: 89
Views: 6190

Re: Should I start doing Roth Conversions and if so

Medicare Part A coverage, the full premium is $437 per month. Medicare Part B coverage, the full premium is $460.50 per month. and it looks like Medicare Part D is $77.40 at https://www.fool.com/retirement/2019/02/24/heres-what-medicare-part-d-costs-and-covers-2019.aspx So today it cost a high inco...
by cas
Mon Apr 22, 2019 6:18 am
Forum: Personal Investments
Topic: One time deposit to HSA
Replies: 13
Views: 999

Re: One time deposit to HSA

No. You're allowed to contribute to an HSA for the period that you have an HSA, nothing more. You need to ensure that you don't overcontribute. And to calculate how much you can contribute before overcontributing, see the instructions and worksheet for line 3 of Form 8889 (which you will have to fi...
by cas
Sat Apr 20, 2019 2:31 pm
Forum: Personal Investments
Topic: Should I start doing Roth Conversions and if so
Replies: 89
Views: 6190

Re: Should I start doing Roth Conversions and if so

Sorry for the confusion - Yes almost all "qualified". Looking at 2018 tax returns 3a Qualified dividends $297K 3b Ordinary dividends $305K I believe you have misinterpreted line 3 on your tax form. You have $297k that is taxed as qualified dividends (at long term cap gains rates) and an additional ...
by cas
Sat Apr 20, 2019 2:19 pm
Forum: Personal Investments
Topic: Should I start doing Roth Conversions and if so
Replies: 89
Views: 6190

Re: Should I start doing Roth Conversions and if so

Thank you, FiveK! Hmm... that shows an 18.8% marginal tax rate as the Roth conversions works through the whole $160,000 charitable deduction. (Whereas my in-my-head bobbing bar chart said it was 15% for the first $60,000 of Roth conversions then rising to 18.8% for the next $100,000.) I'll have to t...
by cas
Sat Apr 20, 2019 2:01 pm
Forum: Personal Investments
Topic: Should I start doing Roth Conversions and if so
Replies: 89
Views: 6190

Re: Should I start doing Roth Conversions and if so

The rest of your numbers don't make sense to me, but it could be because my brain is tired and doesn't work as well in the afternoon. Completely understandable! My brain doesn't work well in the afternoon either, and I'm yapping away, picturing bobbing bar charts in my head and expecting other peop...
by cas
Sat Apr 20, 2019 1:52 pm
Forum: Personal Investments
Topic: Should I start doing Roth Conversions and if so
Replies: 89
Views: 6190

Re: Should I start doing Roth Conversions and if so

Hmmm ... I really shouldn't be doing this marginal tax stuff in my head.... Agreed - that's what spreadsheets are for. ;) Single filer age 55 with $300K qualified dividends: That's for $300K QDiv, but no charitable deductions, right? THANKS! A picture is worth 1000 words. (At least that shows more ...
by cas
Sat Apr 20, 2019 1:33 pm
Forum: Personal Investments
Topic: Should I start doing Roth Conversions and if so
Replies: 89
Views: 6190

Re: Should I start doing Roth Conversions and if so

What if Shaneman contributes $160,724 to charity in 2019 (which would be fully deductible) and Shaneman also converts $160,724 to Roth IRA? There would be $0 income subject to ordinary income rates (no tax on the Roth conversion). The 18.8%, 28.8% and 30.8% marginal tax rates in the 0%, 10% and 12%...
by cas
Sat Apr 20, 2019 11:03 am
Forum: Personal Investments
Topic: Should I start doing Roth Conversions and if so
Replies: 89
Views: 6190

Re: Should I start doing Roth Conversions and if so

I'm open to the idea that I'm overlooking something though. :happy This comment is in the realm of an academic-exercise, nit-picking kind of thing, so it isn't really pointing out something being overlooked, but ... just for discussion purposes (or something): On retiredjg's comments, with the "con...
by cas
Sat Apr 20, 2019 8:38 am
Forum: Personal Investments
Topic: Should I start doing Roth Conversions and if so
Replies: 89
Views: 6190

Re: Should I start doing Roth Conversions and if so

It appears you have about $4.5 million (rounded for simplicity) in tax-deferred accounts. I'm guessing you have about $1.5 million in a taxable account to generate the $300k in dividends. I don't think this changes your analysis, but $1.5 million x approx 2% dividend yield generates $30,000 in divi...
by cas
Sat Apr 20, 2019 8:01 am
Forum: Personal Investments
Topic: Vanguard security
Replies: 36
Views: 2626

Re: Vanguard security

Keep in mind that, if your wife's login is some permutation of her name/initials, and it isn't a particularly uncommon name, that it might just have been someone with a similar name who misremembered what combination of name/initials they used for their password and accidentally tried to log in usin...
by cas
Sat Apr 20, 2019 7:35 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversions, taxes, and social security
Replies: 22
Views: 2426

Re: Roth conversions, taxes, and social security

Yes, nontaxable around 2.9 and consisting of 500k series I bonds, munis, and index stock funds. Tax deferred mainly bonds, per recommended Boglehead strategy. Get about 36k/year qualified dividends from Taxable. So yes, I guess the higher SS tax may be unavoidable and mainly looking to decrease top...
by cas
Fri Apr 19, 2019 12:54 pm
Forum: Personal Investments
Topic: Back door Roth question
Replies: 8
Views: 432

Re: Back door Roth question

Thread titile: "Back door Roth question" I'm about to do a Roth conversion and ... Instead of saying "yes" like the previous 2 responses, I'll throw in a "maybe." The title of your thread says "Back door Roth," but then you don't mention anything about making non-deductible contributions to an IRA ...
by cas
Fri Apr 19, 2019 7:52 am
Forum: Personal Investments
Topic: Am I supposed to start backdoor Conversation now?
Replies: 11
Views: 1260

Re: Am I supposed to start backdoor Conversation now?

If that kicks you into a 22% tax bracket, then essentially yeah, by not doing Roth conversions now, you are electing to give 10% to the government. This "giving 10% to the government" may NOT be true in OP's case, where there are significant taxable assets. Still a bit unclear, but I took it that t...
by cas
Thu Apr 18, 2019 6:22 am
Forum: Personal Finance (Not Investing)
Topic: Need help with insurance for mom
Replies: 9
Views: 397

Re: Need help with insurance for mom

More specifically, on healthcare.gov, there is a tool where you can enter minimal information (zip code, age, estimated income), and it will tell you what ACA-subsidy-eligible plans are available in your mother's county and what subsidy (if any) she is eligible for. Requires some clicking around to ...
by cas
Mon Apr 15, 2019 3:34 pm
Forum: Personal Investments
Topic: 65 Years Old, Left Advisor, Appreciate Feedback on Situation!
Replies: 11
Views: 1113

Re: 65 Years Old, Left Advisor, Appreciate Feedback on Situation!

HSA: $30k (maxing contributions and catch up contributions). – This is not invested. 3 – I recently turned 65 and am now getting healthcare coverage through a combination of Medicare and my employer. Overall health of both my wife and I is good, no major issues. 4 . . . I make enough to max out 401...
by cas
Mon Apr 15, 2019 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Ohio/New Jersey taxation of Capital Gains Distributions from Ohio/New Jersey muni bond funds
Replies: 4
Views: 379

Re: Ohio/New Jersey taxation of Capital Gains Distributions from Ohio/New Jersey muni bond funds

I eventually decided to include the capital gains distributions from the Ohio-focused muni fund on my Ohio taxes. I went around and around, tracing through all the legal code defining all the relevant terms, but there was just never any phrasing that was anywhere near as specific as the New Jersey p...
by cas
Mon Apr 15, 2019 6:54 am
Forum: Personal Investments
Topic: Tax Math on 3.6MM portfolio
Replies: 21
Views: 3116

Re: Tax Math on 3.6MM portfolio

What's interesting is that if you swap out BND for MUB in taxable you get the following: You didn't say, but I suspect that you are thinking something along the lines of "Mom's ordinary income should be taxed at 12% or below. I've heard that muni bonds aren't worthwhile unless you are in a 25% or a...
by cas
Sun Apr 14, 2019 3:46 pm
Forum: Personal Investments
Topic: Tax Math on 3.6MM portfolio
Replies: 21
Views: 3116

Re: Tax Math on 3.6MM portfolio

Another question: You say that you are in the process of moving the portfolio from a financial advisor to self-directed. Then you mention a multi-million amount invested in BND and VTI. Is that amount already invested in BND and VTI with the financial advisor (doesn't seem likely), so you will be mo...
by cas
Sun Apr 14, 2019 3:18 pm
Forum: Personal Investments
Topic: Tax Math on 3.6MM portfolio
Replies: 21
Views: 3116

Re: Tax Math on 3.6MM portfolio

Is there going to be Social Security in the picture at some point? (age 70?)

Federal taxation of SS is odd (see wiki on Taxation of Social Security), but that would change all the tax calculations, plus her ability to stay under that first IRMAA threshold.
by cas
Sat Apr 13, 2019 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Filing extension, how to estimate payment (Inheritance, no K1 yet)?
Replies: 8
Views: 717

Re: Filing extension, how to estimate payment (Inheritance, no K1 yet)?

Not sure if they are short/long term or the exact tax rate I'll pay on them but 28k x .20 = $5600 , so it would appear my current projected refund should cover most of this. I think I'll send the IRS ~5k when filing for extension just in case, and hope to get most of it back. (Bold added by me.) Ni...
by cas
Fri Apr 12, 2019 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Tax help! How do I tax foreign tax credit using Turbo Tax?
Replies: 4
Views: 173

Re: Tax help! How do I tax foreign tax credit using Turbo Tax?

(This is for Turbotax Desktop, Windows, Home and Business, but I assume other versions would be the same, especially towards the last few clicks) Click: Personal Income -> I'll chose what I work on -> "Update" Dividends on 1099-DIV -> "Edit" relevant 1099-DIV -> check the box below Box 1b that says ...
by cas
Fri Apr 12, 2019 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax Tira to Roth backdoor help
Replies: 9
Views: 504

Re: Turbo Tax Tira to Roth backdoor help

It sounds like you haven't yet gone through the Turbotax section where you enter the contribution to the tIRA and designate it as a non-deductible contribution, so the Form 8606 isn't filled out with all the necessary information yet. More to the point: The Finance Buff has a blog post, with screen ...