Search found 344 matches

by cas
Tue Nov 06, 2018 12:21 pm
Forum: Investing - Theory, News & General
Topic: Household statements
Replies: 15
Views: 1152

Re: Household statements

Weird. I called them and the Flagship rep told me that their system is not currently supporting household statements and he did not know when they would be reactivated. If that is really the case I am surprised no one else here is having the same issue...I dunno... I have a vague memory (don't hold...
by cas
Mon Nov 05, 2018 8:26 am
Forum: Personal Finance (Not Investing)
Topic: Can't Create SS Account - Security Questions Mismatch
Replies: 13
Views: 1331

Re: Can't Create SS Account - Security Questions Mismatch

OP - I'd also suggest pulling a credit report from all the agencies and checking for errors. OP - The behavior you describe about asking only questions that aren't relevant and all have a "none of the above" answer is a common complaint when people try to get their credit report online (and are the...
by cas
Sun Nov 04, 2018 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Issues
Replies: 5
Views: 1242

Re: IRS Issues

So I want to log onto the IRS site for my return and print the forms and my tax data. But when I tried to set up and log on the IRS wanted to run a credit check against my credit cards before letting me get the data. But I have my credit locked and some other issues. Is unlocking my credit like thi...
by cas
Sat Nov 03, 2018 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion - Confirming Tax Analysis
Replies: 10
Views: 746

Re: Roth Conversion - Confirming Tax Analysis

Assuming MFJ and assuming the $105,000 is base salary (before all the pre-tax pay stub deductions) and assuming the $80,000 is after all the pre-tax pay stub deductions, yes ... it looks right to me. If there are any qualified dividends or long term capital gains involved in the $105,000, then thing...
by cas
Wed Oct 31, 2018 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: TLH to create larger Roth conversion ?
Replies: 18
Views: 950

Re: TLH to create larger Roth conversion ?

now i want to do a Roth conversion to fill up remaining room in the 22% bracket (MFJ=165k) since IRMAA MFJ is 170k, we can just aim to fill up the 22% bracket @165k. Also, note that the $165k "top of the 22%" bracket is taxable income (Adjusted Gross Income (AGI) minus standard or itemized deductio...
by cas
Thu Oct 25, 2018 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion math - taxes paid from IRA
Replies: 7
Views: 703

Re: Roth Conversion math - taxes paid from IRA

I'm in my early 60s ... My 2018 taxable income is $100,000. I am looking to make the maximum allowable conversion while staying within the 22% bracket ($165,000 MFJ 2018) so I have a $65,000 ceiling with which to make conversions and pay tax. Not what you asked (sorry), but if "early 60s" means 63 ...
by cas
Wed Oct 24, 2018 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Tax planning- Pensions, delaying SS, converting?
Replies: 16
Views: 1032

Re: Tax planning- Pensions, delaying SS, converting?

Since the 24% tax bracket goes to $315,000, I thought about converting Trad to Roth up to the top of that bracket each year for the next 5 years so that they also avoid RMD's and have no pre-tax assets when SS kicks in. This isn't what you asked, but ... Since they are age 65, are they on Medicare ...
by cas
Tue Oct 23, 2018 7:32 am
Forum: Investing - Help with Personal Investments
Topic: MAGI and ROTH IRA Contribution
Replies: 6
Views: 614

Re: MAGI and ROTH IRA Contribution

Don’t forget the standard deduction. Modified AGI for determining Roth IRA eligibility is based on AGI, which is *before* the standard deduction. Standard deduction is relevant to determining taxable income, but not to determining Roth IRA eligibility. (I'm pretty sure you (MotoTrojan) are going to...
by cas
Tue Oct 23, 2018 7:29 am
Forum: Investing - Help with Personal Investments
Topic: MAGI and ROTH IRA Contribution
Replies: 6
Views: 614

Re: MAGI and ROTH IRA Contribution

...in order to calculate our 2018 MAGI I added my salary (all pre-tax) from Jan 2018-June 2018 of residency ($35,771.50), my current salary (started in August, took July off) Aug 2018-Dec 2018 ($85,000), my wife's salary as a resident during the same time frame ($37,565), as well as her current sal...
by cas
Sun Oct 21, 2018 6:12 am
Forum: Investing - Help with Personal Investments
Topic: roth conversion and other income tax question
Replies: 7
Views: 884

Re: roth conversion and other income tax question

Thank you for the chart. It is very helpful. So it looks like QDIV and LTCG are stacked on top of ordinary income which includes roth conversion income, interest income, and non-qualified dividend income. It looks like deductions are applied first to ordinary income and QDIV and LTCG are last. If c...
by cas
Sat Oct 20, 2018 10:14 am
Forum: Personal Finance (Not Investing)
Topic: medical expenses
Replies: 1
Views: 293

Re: medical expenses

You may be interested in this recent thread:

"Budget for post-65 health/dental/vision/hearing" viewtopic.php?f=2&t=261703
by cas
Thu Oct 18, 2018 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Heavy Loss in Stable Value Fund of 401k investments
Replies: 32
Views: 4212

Re: Heavy Loss in Stable Value Fund of 401k investments

Gibraltar Guaranteed Fund (Sorry, OP, no answer to your question about whether there is anything you can do now. (Except possibly, if it is your employer whose meeting minutes I link below, finding out what they are talking about with amortizing the loss in the replacement bond fund.) The informati...
by cas
Thu Oct 18, 2018 6:46 am
Forum: Personal Finance (Not Investing)
Topic: Budget for post-65 health/dental/vision/hearing
Replies: 10
Views: 982

Re: Budget for post-65 health/dental/vision/hearing

Supposedly that includes Medicare B, D, Supplement, dental insurance, hearing, & vision, as well as out-of-pocket for: doctor, hospital, tests, prescriptions, dental. That's from Dana Anspach's 2016 book "Control your retirement destiny", 2nd Ed., p. 290. Anspach got those numbers from a apps.hvsfi...
by cas
Mon Oct 15, 2018 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Is Capital Gains based on AGI? Is it bracketed like Income Tax?
Replies: 27
Views: 5398

Re: Is Capital Gains based on AGI? Is it bracketed like Income Tax?

So what I am trying to figure out is this. If your capital gain is 951,000, the first $479,000 of the capital gain is taxed at 15% and the remaining $472,000 is taxed at 20%? Or is the capital gain tax a flat 20% for the entire gain of $951,000? Neither. FiveK's graph above shows that many taxes, p...
by cas
Mon Oct 15, 2018 8:11 am
Forum: Investing - Theory, News & General
Topic: Treasuries in higher tax state
Replies: 12
Views: 1185

Re: Treasuries in higher tax state

If one is in a 9.3% state tax bracket than that's a 2.66/(1-0.093) = 2.93% return. Incidentally, that is the correct formula for determining the taxable equivalent yield for the Treasury if you are able to fully deduct your state taxes on your federal return. But, under the new tax bill, many more ...
by cas
Sat Oct 13, 2018 8:28 am
Forum: Investing - Help with Personal Investments
Topic: Opinions on a large Roth conversion if we have a 30-40% correction.
Replies: 22
Views: 2394

Re: Opinions on a large Roth conversion if we have a 30-40% correction.

Thanks for your explanation. For my situation, the difference is that I would be using taxable cash to pay taxes so waiting for correction to do large conversion would decrease my tax bill. Vanguard has a recent paper out that you (and others considering Roth conversions) may be interested in. Alon...
by cas
Thu Oct 11, 2018 7:28 am
Forum: Personal Finance (Not Investing)
Topic: Tax Questions
Replies: 6
Views: 777

Re: Tax Questions

If I were to retire early in the year, I would try to max out my retirement accounts before then. Let's say I worked 4 months . . . put 3.5k into a HSA, This is a more minor point, but, for completeness... You didn't say what your plans for health insurance were after retiring, but the total amount...
by cas
Wed Oct 10, 2018 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Tax Questions
Replies: 6
Views: 777

Re: Tax Questions

Careful. Do you really mean "take 80 k in capital gains for living expenses"? Or would part of that be cost basis and part of it be long term capital gains, obtained by selling an asset in a taxable account? Assuming you really meant "take 80 k in capital gains" (or at least significant capital gain...
by cas
Tue Oct 09, 2018 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2013

Re: Elder care tax question(s)

3. As I will be paying >$60k/year of her bills, do I have to file a gift tax return for the amount over $15k? Since no one else has said anything, here is a vague and not very comprehensive comment: I'm pretty sure I've read somewhere in IRS literature that anyone can pay anyone else's medical bill...
by cas
Tue Oct 09, 2018 7:29 am
Forum: Investing - Help with Personal Investments
Topic: Should I keep Intermediate Term Tax Exempt Fund?
Replies: 15
Views: 2005

Re: Should I keep Intermediate Term Tax Exempt Fund?

43% of my total taxable portfolio of $300K is in this fund, and the remaining 57% is in stocks (Total Stock Market Index and Total International Stock Index). Anyway, back to my questions about the Intermediate Tax Exempt fund. Now that we're in the 12% bracket, is the tax-free benefit "worth it"? ...
by cas
Sat Oct 06, 2018 7:39 am
Forum: Investing - Help with Personal Investments
Topic: Is this calculation on t-bill tax-equivalent return correct
Replies: 12
Views: 1428

Re: Is this calculation on t-bill tax-equivalent return correct

Treasury Direct says the Investment Rate on the 13-week T-Bill is 2.217% With a state 9.3% tax bracket Is the tax-equivalent yield 2.217 / (1-0.093) = 2.44% So that would be the same as a 1-year bank CD with a 2.44% APR (or APY...I'm not concerned about 0.00 decimal places) Kevin M has a nice post ...
by cas
Thu Oct 04, 2018 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Pros and cons of exceeding IRMA limits vs wiping out cash to purchase second home?
Replies: 7
Views: 522

Re: Pros and cons of exceeding IRMA limits vs wiping out cash to purchase second home?

Would it solve your particular concerns if ... -You used the existing cash reserves (in taxable, I assume) for the down payment, thereby keeping under the IRMAA threshold. -Simultaneously sold something in the 403(b) so that an equivalent amount of cash now existed in the 403(b). You wouldn't actual...
by cas
Thu Oct 04, 2018 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Pros and cons of exceeding IRMA limits vs wiping out cash to purchase second home?
Replies: 7
Views: 522

Re: Pros and cons of exceeding IRMA limits vs wiping out cash to purchase second home?

I'm not providing this as a definite answer, but, to add food for thought, here is what Michael Kitces has said on the subject. (It seems to be more along the lines of what you are thinking.) Ideally it’s preferable to just manage income to stay below the [IRMAA] thresholds in the first place. At th...
by cas
Wed Oct 03, 2018 11:47 am
Forum: Investing - Help with Personal Investments
Topic: Yet Another "Can I Retire Yet" Thread
Replies: 40
Views: 4852

Re: Yet Another "Can I Retire Yet" Thread

Tax Filing Status : Married Filing Jointly Tax Bracket : 22% Federal, 5.5% State Employment : Me: Currently in-between jobs - out of work for nine months; DW: works for a city agency and job is very secure Asset Allocation : 70% stocks / 30% bonds Current Total Investable Portfolio (i.e., not inclu...
by cas
Mon Oct 01, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Pay 22.85% taxes to diversify?
Replies: 26
Views: 1927

Re: Pay 22.85% taxes to diversify?

22.85% on capital gains is far less than the cumulative ~37% she is paying on her RMDs (although tIRA withdrawals above the RMD would pay "only" 29.85%). Random Thoughts #3 and #4: the Social Security "tax hump" and Qualified Charitable Distributions (QCDs) FiveK, does Personal Financial Toolbox, b...
by cas
Mon Oct 01, 2018 9:18 am
Forum: Investing - Help with Personal Investments
Topic: Pay 22.85% taxes to diversify?
Replies: 26
Views: 1927

Re: Pay 22.85% taxes to diversify?

Where did the $20k idea come from? Her income is about $62k for the year you mentioned (if I added right) and the first IRMAA tier hits at $85k MAGI. If she goes even $1 over the $85k MAGI, her Medicare premiums will go up which is counter-productive. Leaving the roughly $3k buffer just leaves room...
by cas
Mon Oct 01, 2018 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Pay 22.85% taxes to diversify?
Replies: 26
Views: 1927

Re: Pay 22.85% taxes to diversify?

Several random thoughts are popping into my mind reading this discussion. I think I'll try one topic per post. None of these thoughts solve the main issue of diversifying in the face of very large LTCG, but, at the very least, maybe they are some topics to brush up on before meeting with the adviser...
by cas
Thu Sep 27, 2018 7:39 am
Forum: Investing - Help with Personal Investments
Topic: Liquidating saving bonds?
Replies: 14
Views: 1227

Re: Liquidating saving bonds?

I was under the impression you couldn't get the tax break when you use them for grandkids' educational expenses. Is there a way that you can? There are a whole lot of restrictions on using the savings bonds for educational expenses. https://www.treasurydirect.gov/indiv/planning/plan_education.htm T...
by cas
Thu Sep 27, 2018 7:28 am
Forum: Investing - Help with Personal Investments
Topic: Liquidating saving bonds?
Replies: 14
Views: 1227

Re: Liquidating saving bonds?

We need some input on when to start cashing in. Should we hold to very end, and pay the hit on the Income taxes? Or should wenstart liquidating 10% a yearl? It is very situation dependent. How are you with spreadsheets? Or with running scenarios using a tax program like TurboTax - both 2017 version...
by cas
Wed Sep 26, 2018 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Health Insurance Budget - Pre and Post Medicare
Replies: 3
Views: 384

Re: Health Insurance Budget - Pre and Post Medicare

You may be interested in reading a white paper recently published by Vanguard. Of course, this a snapshot that shows the landscape the way it is today. No guarantees on whether it would be remotely applicable in 20 years. "Planning for health care costs in retirement" https://pressroom.vanguard.com/...
by cas
Tue Sep 25, 2018 1:47 pm
Forum: Investing - Theory, News & General
Topic: Digging deeper on advisability of Roth Conversions
Replies: 37
Views: 3308

Re: Digging deeper on advisability of Roth Conversions

Ah, the 20% QBI deduction! On FiveK's graph (thanks!): OK, I understand the 12% -> 27% -> 22% steps on the right hand of the graph. (That is the previously mentioned 27% "stealth" marginal tax bracket that exists due to the qualified dividends phasing in to the 15% tax bracket from the 0% tax brack...
by cas
Tue Sep 25, 2018 8:33 am
Forum: Investing - Theory, News & General
Topic: Digging deeper on advisability of Roth Conversions
Replies: 37
Views: 3308

Re: Digging deeper on advisability of Roth Conversions

I think your limiting factor, starting at age 63 for the older of you, should be the first tier of IRMAA which is currently an MAGI (not taxable income, but MAGI) of $170k. Note that the IRMAA tier limit is a cliff. Going even $1 over will increase your Medicare premiums significantly. So leave a b...
by cas
Tue Sep 25, 2018 6:38 am
Forum: Personal Finance (Not Investing)
Topic: Estimated Federal Income Tax Payment
Replies: 7
Views: 820

Re: Estimated Federal Income Tax Payment

Q: How do I make an estimated federal income tax payment? Just use https://www.irs.gov/payments ? And then when I file my 2018 federal income, I just put $10,000 down for line 65 for "2018 Estimated Tax Payments"? If you would just now be making the estimated tax payment, Line 79 (on the 2017 versi...
by cas
Sun Sep 23, 2018 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: Pay taxes on EE bonds now or later?
Replies: 11
Views: 1100

Re: Pay taxes on EE bonds now or later?

he'll probably want to verify whether or not all the accrued interest for those bonds was reported on the final tax return (or estate tax return, if any) of the person he inherited them from. Reporting the accrued interest on a decendent's final tax return is an option - might have happened; might ...
by cas
Sun Sep 23, 2018 6:39 am
Forum: Investing - Help with Personal Investments
Topic: Pay taxes on EE bonds now or later?
Replies: 11
Views: 1100

Re: Pay taxes on EE bonds now or later?

SIL recently discovered he has ~20k in EE bonds from the early 1990s that are currently paying 4% each year with final maturity in the early 2020s, wondering if he and DD should start paying taxes on the interest this year and every year going forward. I deal with this issue, although in a differen...
by cas
Fri Sep 21, 2018 9:26 am
Forum: Personal Finance (Not Investing)
Topic: Hubby soon to be laid off
Replies: 74
Views: 7851

Re: Hubby soon to be laid off

My husband is 65 and could now sign up for medicare, but we now contribute to HSA- How will this affect it? You are correct - there is weirdness about contributing to HSAs and Medicare. I'm not up on it, but with your husband signing up for Medicare after he turned 65 (since he was still working), ...
by cas
Wed Sep 19, 2018 6:36 pm
Forum: Personal Consumer Issues
Topic: Should I bother meeting with a Chase Private Client Rep
Replies: 56
Views: 4970

Re: Should I bother meeting with a Chase Private Client Rep

As part of your decision on whether to go, you may want to read this SEC news release (from December 2015) about the $300 million fine JP Morgan Chase (including a subset of Chase Private Client advisors who were bound by fiduciary duty - most aren't) had to pay for breach of fiduciary duty. (A $300...
by cas
Wed Sep 19, 2018 7:45 am
Forum: Investing - Help with Personal Investments
Topic: Organizing an unplanned portfolio and dealing with LTCG
Replies: 14
Views: 1364

Re: Organizing an unplanned portfolio and dealing with LTCG

Not 100% sure why you are talking about penalties in relation to safe harbor. You can just make estimated tax payments using the proceeds of your sale. That was just related to any 2018 sales as I have missed the dates for the first three estimated tax payments and might not meet 110% with withhold...
by cas
Tue Sep 18, 2018 6:10 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Personal Advisor - .30%
Replies: 23
Views: 3229

Re: Vanguard Personal Advisor - .33%

To answer the specific question I think you are asking, I have Flagship status at Vanguard, and I don't have access to most of the specific features you mention below. See details in red. I'm not sure how much of what I use is part of the Advisor service or anyone could get it free. I call them when...
by cas
Tue Sep 18, 2018 5:50 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question - Roth Conversion
Replies: 3
Views: 400

Re: Tax Question - Roth Conversion

Watch out for things that are based on AGI rather than taxable income. (AGI = adjusted gross income = income before standard deduction or Schedule B deductions are taken.) For example, Net Investment Income Tax (NIIT), although it doesn't sound like you would be getting up to the threshold of $250,0...
by cas
Mon Sep 17, 2018 10:31 am
Forum: Investing - Help with Personal Investments
Topic: Switched from Edward Jones - Need advice on selling equities
Replies: 7
Views: 786

Re: Switched from Edward Jones - Need advice on selling equities

Annual household income: typically $120k but will be about $100k this year I've already sold all the individual stocks that Edward Jones had in the IRA, and I've sold a few from the taxable account, but I'm nervous to sell more because I'm afraid of the tax implications (although I admit I'm quite ...
by cas
Mon Sep 17, 2018 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Looking for Tax Reduction moves this year
Replies: 11
Views: 1320

Re: Looking for Tax Reduction moves this year

I have a 2 part question - A) Verify a common man's guess at my taxes due this year <skip> - We are Retired I am 63 & DW 58 <skip> [2018 Income] 250 k [Unrecaptured Section 1250 Gain] Long Term Cap Gains [beyond the Unrecaptured Section 1250 Gain] of $ 775 k - $ 500 k = $ 275 k Other Investment Div...
by cas
Wed Sep 12, 2018 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes in retirement too good to be true?
Replies: 23
Views: 4469

Re: Taxes in retirement too good to be true?

Thanks FiveK! A picture is worth a thousand words! (Note to OP: If you are wondering about the spikes in the second (after age 65) graph, those show where increased income is causing IRMAA (Medicare) modified AGI thresholds to be crossed and triggering an increase in Medicare Part B and D premiums.)
by cas
Wed Sep 12, 2018 6:52 am
Forum: Personal Finance (Not Investing)
Topic: Taxes in retirement too good to be true?
Replies: 23
Views: 4469

Re: Taxes in retirement too good to be true?

I plug all this in and it yields an answer of ~$500 taxes owing each year. If instead, I assume 100% comes from LCG + Dividends, I get a number like $3500. Does this sound correct? Is this because the $38.6k of LCG is tax free + the standard deduction of $12k makes only [90k - 12k - 38.6k] = $39.4k...
by cas
Mon Sep 10, 2018 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Helping Parents with Retirement
Replies: 34
Views: 4037

Re: Helping Parents with Retirement

2. Where to prioritize withdrawing from? They each have an individual IRA and they also have a taxable JTWROS account -- but the taxable account only has a very small amount compared to what is in the two IRAs. I’m clear on minimum required distributions from the IRAs and they will need a little mo...
by cas
Sun Sep 09, 2018 6:34 pm
Forum: Personal Consumer Issues
Topic: finding the error in my federal tax return
Replies: 18
Views: 1926

Re: finding the error in my federal tax return

I do my taxes by hand and until 2017 no problem ... <skip> The disagreement is over the amount of tax owed - we agree within a couple of dollars on total income and taxable income - so the error is probably on the worksheet for calculating tax due for those who file sched D and have qualified divid...
by cas
Sat Sep 08, 2018 6:03 am
Forum: Investing - Help with Personal Investments
Topic: Check my Roth conversion math
Replies: 4
Views: 727

Re: Check my Roth conversion math

Warning! Note well the "stealth" 27% marginal tax bracket in FiveK's graph in the post above! This is a situation where many (most?) people think they are being taxed 12% on their Roth conversion, but are actually being taxed 27%. Example 3 in the Kitces article (that I linked to in my post above) ...
by cas
Sat Sep 08, 2018 6:01 am
Forum: Investing - Help with Personal Investments
Topic: Check my Roth conversion math
Replies: 4
Views: 727

Re: Check my Roth conversion math

Another question: If the cap gains straddle the top of the tax free 77,200 limit, is only the overage taxed at 15%, or all of the cap gains taxed at 15%? Here are a couple of articles with graphs that show how the mechanics of this works. (I find that the bar chart image works better for me than wo...
by cas
Fri Sep 07, 2018 8:32 am
Forum: Investing - Help with Personal Investments
Topic: RE: Help with Mom's Taxable account
Replies: 11
Views: 1026

Re: RE: Help with Mom's Taxable account

She told me this was legacy money but I'm not 100% positive she won't need this in her future. Would it be prudent to put half of it in SWTSX and the other half in the Vanguard Tax Managed Balanced fund? I just noticed that this thread seems to be your first. Welcome to Bogleheads! The answers to y...
by cas
Thu Sep 06, 2018 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: RE: Help with Mom's Taxable account
Replies: 11
Views: 1026

Re: RE: Help with Mom's Taxable account

My mother has a bit over $200k she would like to put into a taxable account as a legacy fund for her 5 children. She is 73 and only collects SS in the state of New York. <skip> Option 1 - . . . Schwab Intelligent Portfolio . . . Since its over $50k she will get TLH Option 3 - invest in a simple 3 f...