Search found 890 matches

by cas
Thu Mar 19, 2020 9:44 am
Forum: Personal Investments
Topic: Do Bogleheads recommend a Roth conversion for me, now that the market is down? (And Is this even a "thing"?)
Replies: 13
Views: 1146

Re: Do Bogleheads recommend a Roth conversion for me, now that the market is down? (And Is this even a "thing"?)

Stats Age: 65, spouse 64 Income: 65k pension plus 30k - 40k stock and bond dividends and interest, reinvested (mostly) Taxes: 22% bracket With these stats, you (like many retirees your age) have some complications in your marginal tax rates. Your marginal tax rates don't follow the standard tax bra...
by cas
Wed Mar 11, 2020 8:51 am
Forum: Personal Finance (Not Investing)
Topic: I have a SEP IRA and did back door Roth....
Replies: 15
Views: 816

Re: I have a SEP IRA and did back door Roth....

First, let's look at 2016 and 2017. I think you are saying you contributed $6500 for 2016 (in 2017) and $6500 for 2017 (in 2017) into tIRA, but this got combined into your SEP IRA after you moved the SEP IRA to Ameritrade in 2016. If you moved the SEP from Fido to Ameritrade in 2016 but didn't make...
by cas
Tue Feb 25, 2020 7:06 am
Forum: Personal Finance (Not Investing)
Topic: Amend taxes to switch from Roth to Traditional IRA
Replies: 6
Views: 498

Re: Amend taxes to switch from Roth to Traditional IRA

I'm in the 22% tax bracket, about 67k AGI. On the weekend it occurred to me to compare if I had contributed 6k to a traditional IRA instead of a Roth Note that a 67K AGI (filing single ... which appears to be what you are doing if 67K AGI puts you in 22% tax bracket?) ... if you have a retirement p...
by cas
Sat Feb 22, 2020 7:19 pm
Forum: Personal Investments
Topic: GE Wabco Merger
Replies: 53
Views: 8878

Re: GE Wabco Merger

Oddly, the sale date (2/25/19) precedes the acquired date (2/26/19). Details: 0.611 shares sold on 2/25/19 (proceeds of $44.46) with acquired date of 2/26 (basis of $47.72) and generated a loss of $3.26. Yes, my relatives' 1099-Bs show the sale date before the acquisition date too. I saw that and r...
by cas
Sat Feb 22, 2020 4:45 pm
Forum: Personal Investments
Topic: GE Wabco Merger
Replies: 53
Views: 8878

Re: GE Wabco Merger

cas: Thanks for the post. What you say makes sense. Unfortunately, I never received a 1099-B for the sale of the partial share and I checked my online account and there is no record of it in my CONFIRMATION history. I do taxes for assorted relatives. Three of them owned GE in Vanguard brokerage acc...
by cas
Sat Feb 22, 2020 3:13 pm
Forum: Personal Investments
Topic: GE Wabco Merger
Replies: 53
Views: 8878

Re: GE Wabco Merger

___________Total Ord Div___Qual. Div ______________Box 1a_______Box 1b 02/25/2019___$125.75_____$125.75 <--- where the heck did this # come from? Just to be clearer, since my previous sentence was convoluted: $125.75 should equal 1.partial_share_decimal_value * $78.06. You should be able to tell wh...
by cas
Sat Feb 22, 2020 3:04 pm
Forum: Personal Investments
Topic: GE Wabco Merger
Replies: 53
Views: 8878

Re: GE Wabco Merger

In fact - my online Vanguard accounting shows the value of the Wabtec share was $44.46. Not the $78.06. Good grief! I'm not exactly clear on what you are looking at here, but this is what I'm suspecting: Your GE spun off one full share of WAB + a partial share of WAB. I'm suspecting that the $44.46...
by cas
Sat Feb 22, 2020 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Catch 22 with Gold Medallion Requirement for Exercising POA for Father
Replies: 56
Views: 3710

Re: Catch 22 with Gold Medallion Requirement for Exercising POA for Father

Edit: whoops. Re-read initial post and it already says it is DWS *own form* that requires the medallion signature guarantee. Nevermind on suggestion below... You may have already looked into this and know a good reason why it won't work in your specific situation, but ... Does DWS have their *own fo...
by cas
Mon Feb 17, 2020 3:37 pm
Forum: Investing - Theory, News & General
Topic: I am paying tax on my 1099 capital gains, do I pay taxes again after I sell the fund/stocks?
Replies: 26
Views: 2396

Re: I am paying tax on my 1099 capital gains, do I pay taxes again after I sell the fund/stocks?

If I understand what sailaway is getting at (which I might not), s(he) is explaining an important concept, but I would edit his/her comments this way, in order to emphasize the difference between "capital gains" and "capital gain distributions." For each lot, when you sell it, you will pay tax at s...
by cas
Mon Feb 17, 2020 3:26 pm
Forum: Investing - Theory, News & General
Topic: I am paying tax on my 1099 capital gains, do I pay taxes again after I sell the fund/stocks?
Replies: 26
Views: 2396

Re: I am paying tax on my 1099 capital gains, do I pay taxes again after I sell the fund/stocks?

I think that you may be missing this concept: "Capital gain distributions" are not the same thing as "capital gains" even though they contain similar words. *"Capital Gain Distributions"* appear on the 1099-DIV and occur when the manager of a mutual fund sells shares of one of the investments inside...
by cas
Mon Feb 17, 2020 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Tax underpayment penalty
Replies: 45
Views: 3341

Re: Tax underpayment penalty

I do not fully understand the difference between estimated taxes and withholding. I have withheld about 90% of my monthly paycheck from payroll all throughout the year. Hence I got very meager take home paycheck every month. This was in anticipation of the sale that I would make. The tax I paid in ...
by cas
Sun Feb 16, 2020 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: Tax underpayment penalty
Replies: 45
Views: 3341

Re: Tax underpayment penalty

Yes, that is what I meant by "deduct" , I meant withheld So if you paid, via withholding, 110% of the prior years taxes, my understanding is that you can't owe any underpayment penalities, regardless of the tax due or timing of the 2019 income/gains/tax. Correct. Gill So, problem solved? 8-) Yes, i...
by cas
Sun Feb 16, 2020 12:50 pm
Forum: Personal Investments
Topic: VWIUX in OR: State Tax on Dividends?
Replies: 11
Views: 729

Re: VWIUX in OR: State Tax on Dividends?

Im also in Oregon. If I use turbo tax, would I just upload the 1099 and it will do the math for me? No. Turbotax has no clue about the information in Tax-exempt interest dividends by state for Vanguard municipal bondfunds and Vanguard Tax-Managed Balanced Fund , so you have to look up the relevant ...
by cas
Sun Feb 16, 2020 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Tax underpayment penalty
Replies: 45
Views: 3341

Re: Tax underpayment penalty

The longer you wait to file your taxes the more the underpayment penalty. Although not by much. e.g. you would pay more in underpayment penalty if you file on April 1 versus if you had filed on Feb 1. Assuming you make your estimated payments on time and they cover your total tax liability, I don't...
by cas
Sun Feb 16, 2020 7:57 am
Forum: Personal Finance (Not Investing)
Topic: Tax underpayment penalty
Replies: 45
Views: 3341

Re: Tax underpayment penalty

Look at your Form 2210 ( Underpayment of Estimated Tax ). Which method was used to calculated the underpayment penalty? I'm guessing the regular method on page 3? If so, the IRS currently thinks you were late paying estimated tax for the 1st, 2nd, and 3rd quarters. (The "regular method" calculation ...
by cas
Sat Feb 15, 2020 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare vs IRMAA vs health care coverage
Replies: 37
Views: 2018

Re: Medicare vs IRMAA vs health care coverage

So if a person has income more than you they should pay more for a “benefit” ? Given that they more than likely paid more than you during their entire working career for Medicare. Just trying to understand the logic. Unfortunately, the Medicare payroll tax funds Medicare Part A (hospitalization ben...
by cas
Sat Feb 15, 2020 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Authority/Old National or Optum Bank for HSA? Other?
Replies: 18
Views: 1134

Re: HSA Authority/Old National or Optum Bank for HSA? Other?

I don't see FSKAX or FZORX listed on this page https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/landing-zones/PI-HSA-funds-to-consider.pdf. Is there a different page or maybe you're under an employer account and I'm personal.. That list is just a narrowed down "for your considerat...
by cas
Sat Feb 15, 2020 10:48 am
Forum: Personal Investments
Topic: Investing & Tax Considerations
Replies: 3
Views: 248

Re: Investing & Tax Considerations

Does the Tax-efficient fund placement article in the Bogleheads' wiki address your questions?
by cas
Sat Feb 15, 2020 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Qualified High Deductible Plan for HSA
Replies: 12
Views: 652

Re: Qualified High Deductible Plan for HSA

After reading parts of publication 969 again, it seems that having preventative care will not necessarily make a plan ineligible but having a prescription benefit prior to a deductible being met would make the plan ineligible. Yes, that is true. You may be interested in this blog post by boglehead'...
by cas
Fri Feb 14, 2020 12:54 pm
Forum: Personal Investments
Topic: Does it matter whether I buy low-coupon or high-coupon Treasuries?
Replies: 9
Views: 585

Re: Does it matter whether I buy low-coupon or high-coupon Treasuries?

The mechanics of tax reporting are a bit different depending on whether the secondary market (treasury) bond/note/whatever is bought at a market discount or a market premium. I always have to look the details up, so I'll just leave my comment at that. For taste of what I'm taking about: Bond amortiz...
by cas
Thu Feb 13, 2020 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Can an HSA be used to pay IRMMA costs?
Replies: 10
Views: 749

Re: Can an HSA be used to pay IRMMA costs?

Yes, you can no longer contribute to your HSA, but you can use any remaining funds to pay all medical expenses including Medicare premiums, IRMAA, *and supplement premiums* . (Emphasis added by me.) Unfortunately, IRS Publication 969 ( Health Savings Accounts and Other Tax-Favored Health Plans) spe...
by cas
Thu Feb 13, 2020 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Can an HSA be used to pay IRMMA costs?
Replies: 10
Views: 749

Re: Can an HSA be used to pay IRMMA costs?

Yes. IRMAA is actually a reduction in the subsidy people get on their Medicare Part B and Part D premiums. So, even if your Medicare B/D premium is higher than the base level of Medicare B/D premium due to you being in a higher IRMAA bracket, it is still purely a Medicare premium ... just a less sub...
by cas
Wed Feb 12, 2020 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Semi-complicated EE Savings Bond tax question
Replies: 9
Views: 715

Re: Semi-complicated EE Savings Bond tax question

Edit: Now that I re-read the middle column, it states that it applies only to decedents that purchased bonds entirely with their own funds. That doesn't seem to apply here, since your mother inherited the bonds. But I'm not sure at all. Yes, that's exactly the section that was unclear to me. I'm no...
by cas
Tue Feb 11, 2020 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Contribution Limits
Replies: 3
Views: 377

Re: HSA Contribution Limits

Sounds like the same HR Block bug as reported here? (I seem to recall that a workaround was reported near the end of the thread.)

(Bogleheads) Known bug in H&R BLock Deluxe 2019 handling of HSA
by cas
Tue Feb 11, 2020 9:48 am
Forum: Personal Investments
Topic: Case Study/Help - Roth Conversion/Realized LT Capital Gains Impact on Taxes
Replies: 7
Views: 454

Re: Case Study/Help - Roth Conversion/Realized LT Capital Gains Impact on Taxes

These 2 blog posts are frequently recommended on bogleheads to address your question on the interaction of ordinary income with long term capital gains: This article goes into this situation in great detail, with examples and graphics (and is new enough that it incorporates the new (2018) tax law): ...
by cas
Fri Feb 07, 2020 3:25 pm
Forum: Investing - Theory, News & General
Topic: Total Stock Market Index - Section 199A dividends this year
Replies: 169
Views: 21174

Re: Total Stock Market Index - Section 199A dividends this year

Now TT is saying the 8995A form won't be ready until 2/20. The IRS has not (as of a search I did right now) released a final version of the instructions for the 2019 Form 8995A. They are still in draft version. I suspect Turbotax (or any of the other software packages) can't proceed until the IRS f...
by cas
Fri Feb 07, 2020 8:50 am
Forum: Personal Finance (Not Investing)
Topic: How do I report non-taxable portion of Inherited IRA distribution?
Replies: 19
Views: 1234

Re: How do I report non-taxable portion of Inherited IRA distribution?

3. If as instructed here I amend 2018 and file the total of the two distributions for 2019, and IRS later says I screwed up, they can't believe I did the amendment, it'd be nice to be able to say more than it was advice I got on the internet. Is there some IRS guidance on this issue? Is this the ty...
by cas
Thu Feb 06, 2020 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Roth, Long term care & tax avoidance
Replies: 10
Views: 967

Re: Roth, Long term care & tax avoidance

https://www.pwc.com/us/en/industries/insurance/library/long-term-care-services.html That is an interesting paper. Thanks for finding it. Did you download/read the whole 29 page paper? It does a lot more data slicing and dicing on the comment in the executive summary (the page you linked) that This ...
by cas
Thu Feb 06, 2020 8:41 am
Forum: Investing - Theory, News & General
Topic: Turn over ratio for FIHFX, 159%, is this real?
Replies: 11
Views: 984

Re: Turn over ratio for FIHFX, 159%, is this real?

Edit: sycamore and I were apparently typing at the same time. The Fidelity Index Freedom funds *did* have odd behavior this past year. I don't own them, but I got curious when the very unusually high capital gains distributions for 2019 were mentioned in multiple threads on the forum. So, like the F...
by cas
Wed Feb 05, 2020 1:23 pm
Forum: Personal Investments
Topic: Expensive Roth Conversion Mistake
Replies: 19
Views: 1700

Re: Expensive Roth Conversion Mistake

But contributions into a tIRA would seem to defeat the purpose of the Roth conversion .... OP said: My plan was to do a Roth conversion to the top of the 12% bracket in order to avoid taxes on that gain. So in December I calculated that I could convert $32,052 in order to achieve that goal, and I o...
by cas
Wed Feb 05, 2020 12:44 pm
Forum: Personal Investments
Topic: Expensive Roth Conversion Mistake
Replies: 19
Views: 1700

Re: Expensive Roth Conversion Mistake

Long story short, in my calculation I forgot to include bonus income I received in January 2019 from the job I retired from in March 2018. This resulted in taxable income of $84,172, or $5,222 over the top of the 12% bracket ($78,950). Is the bonus income reported in Box 1 of a W-2? If so, that cou...
by cas
Wed Feb 05, 2020 9:09 am
Forum: Personal Finance (Not Investing)
Topic: HSA Confused
Replies: 32
Views: 1436

Re: HSA Confused

I'll be the first to admit I didn't pay much attention to this until the latter part of last year. I went through the hoops and it was showing a $500 balance in December. When I logged in in January the balance was zero. The wife and I took the online survey and $600 ($300 for each of us) is showin...
by cas
Wed Feb 05, 2020 8:47 am
Forum: Personal Finance (Not Investing)
Topic: HSA Confused
Replies: 32
Views: 1436

Re: HSA Confused

Why do you think that you can't contribute to this account? (It is an entirely different situation depending on whether you say "Because I'm retired, so there is no salary to do payroll deduction on" or "Because they sent me a letter that said 'Thou art not permitted to make your own contributions ...
by cas
Wed Feb 05, 2020 7:35 am
Forum: Personal Finance (Not Investing)
Topic: HSA Confused
Replies: 32
Views: 1436

Re: HSA Confused

The behavior of the account that you are describing sounds like an HRA (Health Reimbursement Account), not an HSA (Health Savings Account). But the word "HSA" does seem to appear in the screenshot you (sort of) posted. The screenshot is difficult to interpret, though, since only unformatted text cam...
by cas
Mon Feb 03, 2020 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: HSA 1099-SA on a rollover?
Replies: 6
Views: 525

Re: HSA 1099-SA on a rollover?

Not an expert, but my understanding is the same as yours: you should not have gotten a 1099-SA for a trustee to trustee transfer. That's going to cause you all sorts of problems filling in Form 8889 part II. (Since it wasn't for qualified medical expenses and wasn't a (60-day) rollover, Form 8889 is...
by cas
Mon Feb 03, 2020 2:44 pm
Forum: Personal Investments
Topic: Timing of the Backdoor roth IRA
Replies: 8
Views: 692

Re: Timing of the Backdoor roth IRA

Hi tedgeorge, thank you so much for your quick reply! Do you happen to have a link for any of those articles? Bogleheads' wiki article Backdoor Roth . Don't quit reading just because you get to the endnotes, because links to step-by-step tax reporting blog articles by bogleheads' frequent contribut...
by cas
Fri Jan 31, 2020 4:11 pm
Forum: Personal Investments
Topic: Solo-401k, Backdoor Roth and Pro-rata question?
Replies: 12
Views: 535

Re: Solo-401k, Backdoor Roth and Pro-rata question?

1. Anyone sees any concerns or gotcha with the above scheme? Forum expert Alan S. recently posted a warning about drastically increased fines ($25/day increased to $250/day) for being late filing IRS forms necessary for large solo 401(k)s. (I don't have a solo 401(k), so I'm only barely aware that ...
by cas
Thu Jan 30, 2020 6:11 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard 1099 question
Replies: 3
Views: 795

Re: Vanguard 1099 question

It would help if you told us which flavor of 1099 you are speaking about. But my guess is this: You received a "2019 Consolidated Form 1099" for a Vanguard brokerage account. You are looking at the first page, which says "2019 Tax Information Statement". You are further looking at a sub-area on that...
by cas
Wed Jan 29, 2020 2:04 pm
Forum: Personal Investments
Topic: Why is FSKAX 17% turnover
Replies: 10
Views: 1006

Re: Why is FSKAX 17% turnover

I'll guess that the turnover is related to the fact that Fidelity's Freedom Index target date series swapped out ""Fidelity Total Market Index Fund Class F" for a different total US market index fund. This is discussed here: https://www.bogleheads.org/forum/viewtopic.php?t=299021#p4923776 I took a b...
by cas
Mon Jan 27, 2020 11:48 am
Forum: Personal Investments
Topic: Backdoor Roth - Too Much In TIRA
Replies: 6
Views: 568

Re: Backdoor Roth - Too Much In TIRA

Silk's reply is correct as far as it goes, but the recharacterization also has its own tax reporting requirements. These requirements are described the the Instructions for Form 8606 (examples included). The thing is, there are so many permutations of a recharacterization ... various combinations o...
by cas
Mon Jan 27, 2020 8:58 am
Forum: Personal Investments
Topic: First time 1099-b
Replies: 11
Views: 678

Re: First time 1099-b

Thank you all for the quick reply. To answer some of the follow up qu.: Box 1a: VNGRD TOTAL INTL STK ETF. Box 1e: almost identical number to box 1d (~17700). If it were me, I would look at the "date sold or disposed" for that item on the 1099-B. Then I would go bring up the Vanguard statement for t...
by cas
Mon Jan 27, 2020 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth question...
Replies: 7
Views: 605

Re: Backdoor Roth question...

Hmm, I'll have to ask my accountant again about it. That's what she explained to me when I asked. I would think the IRS would want some sort of indicator to tell them if taxes are due on the conversion. Two possibilities immediately come to mind: 1. Your accountant didn't say exactly what you thoug...
by cas
Mon Jan 27, 2020 8:07 am
Forum: Personal Investments
Topic: First time 1099-b
Replies: 11
Views: 678

Re: First time 1099-b

It is going to help us a lot to decipher it if you give us a hint what box 1A "Description of Property" says. But ... wild guess ... something that confuses people a lot ... and since you say you "only invested" ... Did you buy a CD via Vanguard's brokerage and have it mature this year? Brokered CDs...
by cas
Sun Jan 26, 2020 4:31 pm
Forum: Personal Investments
Topic: Contributed to ROTH, MAGI too High, Led to Recharacterize, Now Backdoor ROTH Question
Replies: 11
Views: 333

Re: Contributed to ROTH, MAGI too High, Led to Recharacterize, Now Backdoor ROTH Question

Yes, still working. I think I have five options: 1. Convert the $7K traditional IRA to a ROTH and add $6,542 as income. (Assume $7k/$107k*$7k= $458 of non-deductible contributions, and pay tax on $6,542 additional income) This option is more or less Option 5, except that you also decide to do a Rot...
by cas
Sun Jan 26, 2020 11:23 am
Forum: Personal Finance (Not Investing)
Topic: RMD: I know I need a Tax Advisor but.....
Replies: 64
Views: 6116

Re: RMD: I know I need a Tax Advisor but.....

Some things have happened since I last posted in case anyone is interested (probably not). Perhaps it is my ignorance, but this is a lot more complex a calculation than it seems due to too many variables. As it so happens, someone ( buckeye7983) just posted over on this thread who pretty much echoe...
by cas
Sat Jan 25, 2020 11:34 am
Forum: Personal Investments
Topic: Inherited IRA or Traditional. ex advisor not helpful
Replies: 59
Views: 3560

Re: Inherited IRA or Traditional. ex advisor not helpful

I am in the process of moving the money to Vanguard, which I started to do before I realized I may have a big problem. You need to stop this process until the IRA gets titled properly. +1 From reading this forum over the years, I knew that mistakes in titling inherited IRAs can lead to really nasty...
by cas
Sat Jan 25, 2020 11:00 am
Forum: Personal Finance (Not Investing)
Topic: TIRA => ROTH Conversion Strategies and SS Taxes
Replies: 81
Views: 3763

Re: TIRA => ROTH Conversion Strategies and SS Taxes

E.g., see the example chart below from Worth pushing through the Social Security hump and/or IRMAA cliffs? Because things can vary greatly from individual to individual, understanding one's specific situation is highly recommended. https://www.bogleheads.org/w/images/8/8b/SS_and_IRMAA_overall.PNG F...
by cas
Fri Jan 24, 2020 7:23 pm
Forum: Investing - Theory, News & General
Topic: Total Stock Market Index - Section 199A dividends this year
Replies: 169
Views: 21174

Re: Total Stock Market Index - Section 199A dividends this year

I didn't say it affected the actual percentage of qualified dividends. What I said was that in the past, greater than 95% qualified dividends was reported as 100%. Now that's not happening, at least according to this earlier post below. A few years ago the Form 1099 for some mutual funds that I inv...