Search found 1430 matches

by kd2008
Sat Feb 01, 2025 9:10 pm
Forum: Personal Investments
Topic: HSA - Which one do you recommend?
Replies: 46
Views: 4257

Re: HSA - Which one do you recommend?

AnEngineer wrote: Fri Jan 31, 2025 9:01 am
kd2008 wrote: Fri Jan 31, 2025 6:58 am

No, it does not.
Then why not take the money as cash and contribute yourself where you want?
Because the health plan allows the rewards to be sent only to an HSA.
by kd2008
Sat Feb 01, 2025 9:08 pm
Forum: Personal Consumer Issues
Topic: Did you celebrate when you finally hit $1m?
Replies: 330
Views: 49693

Re: Did you celebrate when you finally hit $1m?

It is important to figure out what you are celebrating upon reaching $1MM.

For us, it was getting an IPS in place, automating savings and aligning value based spending so we spend more of what brought us joy and mercilessly cutting that which did not align such as cable tv subscription, for example.

The celebration was affirmation of our strategy and it's execution. The milestone showcased our discipline and fortunate market returns that were only possible to harness because of the work we put in setting up ourselves for it.
by kd2008
Fri Jan 31, 2025 6:58 am
Forum: Personal Investments
Topic: HSA - Which one do you recommend?
Replies: 46
Views: 4257

Re: HSA - Which one do you recommend?

AnEngineer wrote: Fri Jan 31, 2025 6:54 am
kd2008 wrote: Thu Jan 30, 2025 7:56 pm Employer health insurance is through UHC. We earn $2000 in rewards for completing wellness activities. These "earnings" get transferred to HSA of our choice.
Does this bypass HSA contribution limits?
No, it does not.
by kd2008
Thu Jan 30, 2025 7:56 pm
Forum: Personal Investments
Topic: HSA - Which one do you recommend?
Replies: 46
Views: 4257

Re: HSA - Which one do you recommend?

Employer health insurance is through UHC. We earn $2000 in rewards for completing wellness activities. These "earnings" get transferred to HSA of our choice.

In 2025, they started using plaid for verification but it doesn't work with Fidelity.

So I ended up signing up for a new account with HSA bank. Loved how easy it was to set it up all online.

Will do a 60-day rollover (indirect) to Fidelity.

Not interested in investing in HSA Bank. But didn't seem bad in fees for their investment of platform.

A few folks quibble over minor irritants about HSA bank. They are not bothersome to me. YMMV.

Fidelity is definitely the best. No doubt there.
by kd2008
Sat Jan 25, 2025 4:20 am
Forum: Personal Investments
Topic: -------
Replies: 36
Views: 4436

Re: Early retirement situation, single 42yo

OP, you have set yourself up very nicely. Congratulations!

I believe you are looking at this from do I have enough money to last at my current spending plus a buffer.

With an early retirement, risk is not only money but also time. Personal preferences change all the time. 4-5 decades of living in retirement exposes your plan to a wider range of negatives.

Think through what optionality you "buy" by working few more years.

Ultimately you are disciplined and resourceful enough to get yourself in such advantageous position. So I believe you have the ability to weather negative events.
by kd2008
Sun Jan 19, 2025 6:52 am
Forum: Personal Investments
Topic: Portfolio Review Request (Maybe Early Retirement?)
Replies: 10
Views: 1792

Re: Portfolio Review Request (Maybe Early Retirement?)

Get a grip on yourself! A person who has the discipline to accumulate $5 million and typically spending $42,000 a year doesn't just run out of money.

Mental health care maybe needed in order to help with dealing with your anxiety.
by kd2008
Sat Jan 18, 2025 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: How to handle mortgage after house burned down
Replies: 34
Views: 5431

Re: How to handle mortgage after house burned down

Very sorry for all that you are going through.

I understand the anxiety around rebuild now or later, sell land etc.

But work with your mortgage servicer to put any payments in forbearance etc while you figure out a more permanent living situation.

Mortgage servicer won't do anything until forced by government or requested by you. It is tiring to keep them doing the bare minimum. I would focus on that.

Depending on disaster aid, state laws, local process and insurance dealings, you will have a full plate soon. Plus I assume you are trying to settle in to a new place. Pace yourself.

Keep cash on hand. Do not payoff the mortgage. Liquidity is critical.

Opportunities you didn't think about may show up later. Value of land recovers quickly ...
by kd2008
Mon Jan 13, 2025 7:38 pm
Forum: Investing - Theory, News & General
Topic: California fires: Should we expect insurance company bankruptcies?
Replies: 22
Views: 4409

Re: California fires: Should we expect insurance company bankruptcies?

This article appeared last July.

https://www.nytimes.com/interactive/2024/07/08/climate/home-insurance-climate-change.html


Climate change is driving rates higher, but not always in areas with the greatest risk.


Across the more than 9,000 ZIP codes for which data was available, the typical American household last year paid about $500 in home insurance premiums for every $100,000 of home value, or 0.5 percent, the professors found.

But in California, which suffered through more than 7,000 wildfires last year, the typical homeowner in many ZIP codes paid premiums as low as .05 percent of home value. By contrast, in parts of Alabama, Oklahoma, Louisiana and Texas, the average homeowner faced home insurance premiums greater than 2 ...
by kd2008
Mon Jan 13, 2025 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: EOY Report on Personal Finances for Spouse
Replies: 64
Views: 7081

Re: EOY Report on Personal Finances for Spouse

I go through something similar with DH in December. It is a single slide with two tables.

But with much less detail than you. You will have rely on what your spouse needs and would like to know.

The only numbers I share:
Table 1
Gross income (wages, dividends, matching contributions, variable pay summed up as a single number)
Total taxes (FICA, Fed, state summed up as a single number)
Total savings (summed up as a single number)
Total spending (single number obtained from subtraction of income - taxes - savings)

I include 3 columns: previous year, current year, and estimate for next year. I include one-off expenses in spending.

I also include previous year and current year invested assets.
Start of year total, contributions, gain/loss ...
by kd2008
Sun Jan 12, 2025 8:49 am
Forum: Investing - Theory, News & General
Topic: HSA contribution increases for 2025
Replies: 11
Views: 2728

Re: HSA contribution increases for 2025


Seeking a clarification on this:

DW (who is not yet 55) maintains our family HDHP coverage and contributes her own individual limit (in this case, $4300 for 2025) to her HSA through work. I am over 55 and separately have my own HSA, to which I typically contribute the individual limit plus the $1,000 post-55 catch-up.

Since the family HSA limit is $8,550 for 2025, does this mean that DW and I combined can only contribute $8,550 plus my $1,000 catch-up, even though we maintain separate HSAs? In other words, one of us needs to contribute $50 less than our respective individual eligibilities?


Correct!

$8550 + $1000 is the contribution limit.

How you divide $8550 between the two of you is up to you. Individual limit of $4300 is ...
by kd2008
Sat Jan 11, 2025 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Primer on navigating HSAs at HSA Bank and at Fidelity
Replies: 6
Views: 674

Re: Primer on navigating HSAs at HSA Bank and at Fidelity


@MillennialFinance19 I'm trying to do something similar to what you described, but I am having trouble finding how to transfer funds from HSA Bank to Fidelity. Could you explain this process?


Search HSA bank thread on the forums.

You can do trustee to trustee transfer initiated at Fidelity. There is no limit how many times you do this. It is slow to complete - takes 3 or 4 weeks. But can be done all online.

Next option is 60- day rollover. You can do this once every 12 months. But it can be completed in few days. You "reimburse" yourself from HSA bank to your bank account. Then you ask Fidelity to pull in that amount from your bank account. (Do it using a deposit slip with 60 day rollover box checked. You mail the form and check ...
by kd2008
Sat Jan 11, 2025 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Part D question
Replies: 6
Views: 888

Re: Medicare Part D question



Is it possible to enroll in Part A, decline Part B and enroll in Part D?

DH will also be enrolled in my employer's coverage. (That will avoid future Part B late enrollment penalties)

Reason for asking this:
Part A cost will be zero, also our zip code has $0 Part D plan through Wellcare - which it seems may provide opportunities to lower our out of pocket drug costs compared to employer coverage.

Answer seems to be:


From horse's mouth: https://www.cms.gov/medicare/enrollment-renewal/part-d-enrollment-eligibility



Page 23 of
https://www.cms.gov/files/document/cy-2025-cd-enrollment-and-disenrollment-guidance.pdf-0


I have the Well Care zero premium part D and my experience, limited to my medications, is that Good RX pricing for my ...
by kd2008
Sat Jan 11, 2025 12:41 pm
Forum: Investing - Theory, News & General
Topic: How often to rebalance retirement accounts?
Replies: 32
Views: 2479

Re: How often to rebalance retirement accounts?

At the start of my career I tried it annually. I hated it - maybe because I was not familiar with it. After that experience, I just chose go with Vanguard target retirement fund as it became available in the plan for me then.

I haven't looked back since. Less stress, more staying the course.
by kd2008
Sat Jan 11, 2025 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Final approach to Medicare – age 64
Replies: 97
Views: 7989

Re: Final approach to Medicare – age 64



This is a great discussion.

I’m also leaning toward G-HD as I approach age 65.

But two things have me on the fence:

First, I wonder how I, at 85 or 90, would be able to or want to manage the paperwork and paying of my co-pays/deductibles.

Second, United American and Globe Life, sister companies, offer a Reserve Fund Annuity that can seamlessly pay deductibles and co-pays. It’s been discussed in some other threads. I’m not aware of any other G-HD provider offering a similar autopay system. But Globe Life Inc., the parent of United American and Globe Life, has had some recent business controversies, discussed in other threads, and that gives me pause.

I believe I would save money with G-HD. But going with a respected G provider (with ...
by kd2008
Sat Jan 11, 2025 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Final approach to Medicare – age 64
Replies: 97
Views: 7989

Re: Final approach to Medicare – age 64

GaryA505 wrote: Sat Jan 11, 2025 10:18 am
Svensk Anga wrote: Sat Jan 11, 2025 10:15 am

I like the Reserve Fund Annuity to simplify things when they become hard to manage. There is a limitation. They allow only $20,000 lifetime contribution. If you draw on this starting at 65, there may not be much left at 85, 90 when you really could use it. I think it is best funded later in life. They guarantee only 3% return, so I would not fund it all at once.
What happens to the money if you don't spend it on the deductible?
It goes to your estate after you die or to your designated beneficiary. There is a form for that I believe you can fill out send it to them.
by kd2008
Sat Jan 11, 2025 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Part D question
Replies: 6
Views: 888

Re: Medicare Part D question


Your documentation seems to support that is possible from the Medicare side of things. The other consideration is your employer plan requirements. Some employer plans require Medicare eligible beneficiaries to enroll in Medicare. In that case, the employer plan may be structured such that Medicare is the primary payer (pays first), and the employer plan is secondary (pays what Medicare does not cover).


You are absolutely correct! Thank you for bringing this up.

I work for a small employer we range between 18-22 employees. :annoyed
The threshold is 20 employees - I do not understand how they are counted, especially if some are part time or choose to not enroll in employer insurance because they are enrolled in their spouse's insurance ...
by kd2008
Fri Jan 10, 2025 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Part D question
Replies: 6
Views: 888

Medicare Part D question

Is it possible to enroll in Part A, decline Part B and enroll in Part D?

DH will also be enrolled in my employer's coverage. (That will avoid future Part B late enrollment penalties)

Reason for asking this:
Part A cost will be zero, also our zip code has $0 Part D plan through Wellcare - which it seems may provide opportunities to lower our out of pocket drug costs compared to employer coverage.

Answer seems to be:

To join Part D plan, an individual must:

Have Medicare Part A (Hospital Insurance) or Part B (Medical Insurance).
Live in the service area of the plan you want to join.
Be a U.S. citizen or lawfully present in the U.S.
Complete an enrollment request during a valid election period.


From horse's mouth: https://www.cms.gov ...
by kd2008
Fri Jan 10, 2025 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Part A vs. HSA contribution - cost / benefit analysis
Replies: 3
Views: 238

Re: Medicare Part A vs. HSA contribution - cost / benefit analysis


Great point about using the six-month look back, thanks. Thinking about it, you could also contribute the total amount early in the year (January 1 for example) and then reverse the contribution if you happen to be hospitalized prior to early July. If the hospitalization happens after that you get the benefit of the HSA contribution and the Part A benefit.


I would suggest you never do this. You are simply being greedy for too much headache later? Are you confident you can calculate the "reversing" contributions and the earnings on it? Will your HSA provider be easy to deal with this? How soon will you get your oomph and vigor back after hospitalization to even do this and more importantly, even make it a priority?

The whole point of ...
by kd2008
Fri Jan 10, 2025 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Final approach to Medicare – age 64
Replies: 97
Views: 7989

Re: Final approach to Medicare – age 64


I’ve analyzed this a bit more. One of my candidate companies is Globe Life and Accident Insurance Company. For 2025, monthly/annual premiums are as follows:
Plan G-HD: $58/$696
Plan G: $248/$2976

Therefore, it will cost $2,280 more per year if I select a Plan G over a Plan G-HD. Medicare.gov indicates that the Part B deductible is $257 (which I will just assume I pay in all cases) and that for Plan G-HD I will be responsible for $2,875 plan deductible “After I pay:” the $257 Part B deductible. This is contrary to my previous understanding, but likely irrelevant. Simple scenarios:
A) Good year: I incur $1000 of medical expenses (e.g. three or four doctor appointments without imaging or extensive laboratory work). I will be responsible for ...
by kd2008
Fri Jan 10, 2025 11:40 am
Forum: Personal Investments
Topic: 4% rule. Leaving money on the table?
Replies: 103
Views: 12271

Re: 4% rule. Leaving money on the table?

sf_tech_saver wrote: Thu Jan 09, 2025 12:20 pm
....what I love about cranking my target withdrawal rate down is that even though I recently broke the 'magical' $10M, when I see that is merely a $275k a year cashflow before taxes it keeps me hungry and frugal.
You know better than anyone that this is just score keeping. Money you are earning has no actual utility. Congratulations on your success.
by kd2008
Fri Jan 10, 2025 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Part A vs. HSA contribution - cost / benefit analysis
Replies: 3
Views: 238

Re: Medicare Part A vs. HSA contribution - cost / benefit analysis


I have a few years until I hit 65 and qualify for Medicare, and another few years until seriously contemplate retirement. I know I can start with Medicare Part A at 65, and wait to start other Medicare options when I retire since my employer health care is pretty good. However starting Part A means no more contributions to my tax-advantaged HSA account.

What I haven't found yet is if anyone has done a cost / benefit analysis of getting free Part A coverage vs. losing the HSA contribution. Perhaps it is obvious since Part A doesn't help me unless I am hospitalized, but it seems like continuing to grow my HSA for a few more years is a good thing - unless I am hospitalized and have to deal with my $8850 Out Of Pocket max for the year.


I ...
by kd2008
Thu Jan 09, 2025 6:32 am
Forum: Personal Consumer Issues
Topic: How much do you spend a month on food?
Replies: 464
Views: 51167

Re: How much do you spend a month on food?

$1000/month for 2 adults. Ouch! (Our person spending lines up with the liberal spending number per government numbers)

$5500 annually on groceries and $6500 on restaurants annually.

Spending $5/day or $150/month would not even cover lunch even if it was vegetarian - which it is for me most of the time.

$6500 Restaurant spending includes $3000 or so spending during vacations.
by kd2008
Sun Jan 05, 2025 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Receiving foreign inheritance but with a twist
Replies: 14
Views: 1150

Re: Receiving foreign inheritance but with a twist



Nobody on this forum is going to ok your plan. Pay the fee/tax of 20% if you want the money transferred ethically, legally without hassle.

If the money is left in a bank account in a foreign country, can a debit card from such an account be used for everyday purchases in the US? Probably yes, and probably incur less fees/taxes. Check details to understand what this entails.

Do not get greedy and too cute to setup for failure and law breaking.


There is no ability to use a debit card or the such. Based on what the inheritance is supposed to be, this would be a fee of about $12k USD, which is quite a bit of money.


The foreign country is India. I can say with personal experience that you are absolutely incorrect. You just want to ...
by kd2008
Sun Jan 05, 2025 12:26 pm
Forum: Personal Investments
Topic: Portfolio Checkup - Can We Retire in 5-7 Years?
Replies: 13
Views: 1684

Re: Portfolio Checkup - Can We Retire in 5-7 Years?

OP, in my opinion you guys have set yourself up near picture perfect for your goals.

Take care of your health and both of you will have decades of prime time of life to enjoy all you want.

Congratulations!
by kd2008
Wed Jan 01, 2025 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Receiving foreign inheritance but with a twist
Replies: 14
Views: 1150

Re: Receiving foreign inheritance but with a twist

Nobody on this forum is going to ok your plan. Pay the fee/tax of 20% if you want the money transferred ethically, legally without hassle.

If the money is left in a bank account in a foreign country, can a debit card from such an account be used for everyday purchases in the US? Probably yes, and probably incur less fees/taxes. Check details to understand what this entails.

Do not get greedy and too cute to setup for failure and law breaking.
by kd2008
Sat Dec 28, 2024 10:10 pm
Forum: Personal Investments
Topic: Portfolio review: Final few accumulation years
Replies: 44
Views: 4665

Re: Portfolio review: Final few accumulation years



OP, are taxes included in $200K/yr expenses estimate?

With a paid off home worth $1.8M (you posted about it in another thread), I believe there are opportunities to tap into that equity for lumpy expenses to smooth out or spread out taxes and minimize them.

Rick Ferri posted in a thread a while back that adjusted for inflation typical multimillionaires clients of his spent about $85K/yr with a paid off home. (Of course, health insurance costs can throw out that picture easily.)



It just may be that in your scenario you may be better off with a bucket approach. Non-discretionary expenses get funded from taxable, and Roth rollovers of MBDR and maybe even 72t for IRAs.

Discretionary expenses get funded by equity etc. that is paid off ...
by kd2008
Sat Dec 28, 2024 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: Odd reason to NOT max out IRA contribution until after New Year
Replies: 31
Views: 3457

Re: Odd reason to NOT max out IRA contribution until after New Year

Yes, those wanting to stay under 12% bracket or 0% LTCG, do this each year. My retired spouse has already contributed to trad IRA in full - based on my earned income and will get full deduction for the contribution. I on the other hand choose to finagle pre-tax and Roth split for IRA to be under $94,050. So I will contribute after I prepare our joint tax return next year.
by kd2008
Fri Dec 27, 2024 10:00 pm
Forum: Personal Investments
Topic: Portfolio review: Final few accumulation years
Replies: 44
Views: 4665

Re: Portfolio review: Final few accumulation years

OP, are taxes included in $200K/yr expenses estimate?

With a paid off home worth $1.8M (you posted about it in another thread), I believe there are opportunities to tap into that equity for lumpy expenses to smooth out or spread out taxes and minimize them.

Rick Ferri posted in a thread a while back that adjusted for inflation typical multimillionaires clients of his spent about $85K/yr with a paid off home. (Of course, health insurance costs can throw out that picture easily.)


It’s about $85,000 per year in 2024. That’s up about 20% from a few years ago and in line with inflation.

Rick Ferri


It just may be that in your scenario you may be better off with a bucket approach. Non-discretionary expenses get funded from taxable, and ...
by kd2008
Tue Dec 24, 2024 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Feeling Unable to FIRE and even Coast FIRE at $3 Million Net Worth
Replies: 128
Views: 14691

Re: Feeling Unable to FIRE and even Coast FIRE at $3 Million Net Worth


OP,

With your numbers, and even with a conservative SWR, the research supports your FIRE.
Your concerns about IRA distributions and ACA subsidies are optimizations; your FIRE doesn't require them.

The word "retirement" connotes a kind of finality that makes this process nerve wracking. At 38, you don't need to plan out the rest of your life right now. Forget that word, go on sabbatical.

Presumably, especially considering your age, you have an abundance of an incredible asset: human capital.
After 5 years, you'll be day dreaming about work, you'll be thankful you have these interesting financial optimization problems to solve and fill your time, and given your human capital you'll have the option to return to work.

You're FI, work as ...
by kd2008
Sun Dec 22, 2024 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question: MAGI and Roth Conversions
Replies: 22
Views: 1696

Re: Tax Question: MAGI and Roth Conversions

MarkNYC wrote: Sun Dec 22, 2024 9:49 am
kd2008 wrote: Sun Dec 22, 2024 9:35 am

Extremely helpful. Thank you so much!
Please note I've revised my explanation. For the ratio calculation, I changed the word "contribution" to "distribution."
Got it
by kd2008
Sun Dec 22, 2024 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question: MAGI and Roth Conversions
Replies: 22
Views: 1696

Re: Tax Question: MAGI and Roth Conversions



Question: Is the inference here this? If you are in the phase out range of IRA deductions - and have IRA contributions and distributions, then the distributions essentially become "not income" for IRA deductibility calculations as long as distributions are less than or equal to contributions.

No, it's a bit more complicated. When in the phase-out range for deducting contributions, the relevant worksheet (mentioned above) indicates that for MAGI purposes only, the portion of the distribution that is (tentatively) nontaxable is a ratio, the numerator being the amount of the contribution and the denominator being the sum of the contribution and the year-end value of the traditional IRA account(s). If the tentative taxable amount is more ...
by kd2008
Sun Dec 22, 2024 9:33 am
Forum: Personal Consumer Issues
Topic: Prepaid cell plans: network deprioritization vs throttling?
Replies: 10
Views: 1300

Re: Prepaid cell plans: network deprioritization vs throttling?

Severity of Congestion related throttling is going to be location specific. Buy disposable one month prepaid sims for all major carriers that have good network in your area and try them out. This is the only foolproof way to find out what works for you.
by kd2008
Sat Dec 21, 2024 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question: MAGI and Roth Conversions
Replies: 22
Views: 1696

Re: Tax Question: MAGI and Roth Conversions




I think FreeTaxUSA is probably correct. The problem here is that the amount of the distribution that's taxable depends on the amount of the contribution that's deductible, but the amount of the contribution that's deductible depends on how much of the distribution is taxable.

To solve this problem, the IRS provides Worksheet 1-1 in Pub 590-B to be used in a specific year "only if you made contributions to a traditional IRA that may not be fully deductible and have to figure the taxable part of your distributions to determine your modified AGI."

In your case, I think the worksheet will show the taxable amount of the distribution to be zero for MAGI purposes, which would result in MAGI being low enough to allow the full $14,000 IRA ...
by kd2008
Fri Dec 20, 2024 8:42 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional IRA @ 12% tax rate for addition tax gain harvesting?
Replies: 5
Views: 646

Re: Traditional IRA @ 12% tax rate for addition tax gain harvesting?





Complete a free tax return on a software like Freetaxusa to figure the exact amount. No need to guess



It doesn't work like that. You IRA deductibility is calculated first and it will include LTCG in your income. Phase out starts at $123K income (gross wages + LTCG - 401k - healthcare premiums - HSA) etc.
If deductible then it will lower your AGI. Then subtract standard deduction to get taxable income.

If your taxable income falls under the $94K threshold then the LTCG portion of it is taxed at 0%.


I will also model the tax situation in freetaxUSA. Below are numbers from DinkyTown recommended in the wiki.

Thank you, IRA deductability was not something I considered. A quick back of the napkin calculation shows that ...
by kd2008
Fri Dec 20, 2024 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question: MAGI and Roth Conversions
Replies: 22
Views: 1696

Re: Tax Question: MAGI and Roth Conversions




Example of our 1040 for Married Filling Jointly:
Line 1 W-2 Income: $109,413
Line 2b/3b Interest/Dividends : $7,659
Line 4a IRA distributions (1099-r Box 7 code 2): $14,000
Line 9 Total Income: $131,072
Line 10 Adjustments (Trad IRA Contribution): $14,000
Line 11 AGI: $117,072

[


I have ran similar numbers in the past years and Freetaxusa was flawless. You are looking at the *wrong* number. 4a is just your distribution. It is 4b that has the taxable amount of that distribution. It used to calculate MAGI for IRA deduction and AGI.

Either you entered 1099-R incorrectly or answered the questions incorrectly pertaining to this section. Your 4b number is zero. Hence, your IRA contributions are deductible.

Correct or confirm the ...
by kd2008
Thu Dec 19, 2024 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: HSA and Part A Medicare
Replies: 14
Views: 918

Re: HSA and Part A Medicare

shelterinplace wrote: Thu Dec 19, 2024 1:34 pm If I turn 65 in March 2025 with an HSA and I don't want to retire until December 2027, I will have to stop my HSA 6 months in advance of December 2027.

But what if I stop my HSA 12 months in advance of December 2027... so right around January 1, 2027? Do I then pick up Part A starting January 1, 2027?

Thank you!
Assuming you are way past 65 yrs old:
No you stop HSA contributions first. Then six months after you stop HSA contributions, you enroll in Medicare part A.

Rest of what you intend to do is not relevant. The above two steps are the most important.

You can stop HSA contributions in Jan 2027. But do not enroll in Medicare Part A in Jan 2027. Enroll in July 2027 or later.
by kd2008
Wed Dec 18, 2024 6:07 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion - Using withholding method
Replies: 125
Views: 11052

Re: Roth Conversion - Penalty for EOY?

lstone19 wrote: Tue Dec 17, 2024 6:32 pm
kd2008 wrote: Tue Dec 17, 2024 4:38 pm Many thanks for the detailed instructions. Could you please share what 1099-R form to expect from this transaction? It won't have the code "G" that shows up with direct trustee to trustee transfer, I believe. Am I correct?
Conversions from a tIRA to a Roth IRA are always code 2 (early distribution, exception applies) if under 59.5 or code 7 (normal distribution) if over 59.5. I have no experience with withholding from a conversion but if under 59.5, it would not surprise me if the amount withheld is code 1 (early distribution, no known exception) since the 1099-R issuer does not know if you completed the indirect rollover. You'd still treat it the same way on your tax return.
Thank you. Much appreciated.
by kd2008
Wed Dec 18, 2024 6:04 am
Forum: Personal Finance (Not Investing)
Topic: Traditional IRA @ 12% tax rate for addition tax gain harvesting?
Replies: 5
Views: 646

Re: Traditional IRA @ 12% tax rate for addition tax gain harvesting?


Hi All,

Circumstances this year have dropped us to the 12% tax bracket for MFJ. This opens up the opportunity to tax gain harvest in the 0% CG bracket. I've run forecasts of our tax return and plan to harvest to the top of the 0% capital gains bracket. I have done a bit of gain harvesting already and I understand that we must repay all of our ACA subsidies received this year.

Let's assume we will never be in the 0% CG bracket ever again. It is also a safe assumption that we will always be in the 22% bracket (no state income tax fwiw). Finally, we plan to eventually move out of the country in 5-10 years. At that time we would realize all of our capital gains at once, triggering a large (for us) tax bill in our final year. Leaving our ...
by kd2008
Tue Dec 17, 2024 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion - Using withholding method
Replies: 125
Views: 11052

Re: Roth Conversion - Penalty for EOY?





What I don’t understand is how I can put (in his example) $45k from my taxable cash into my Roth account. I can’t contribute to a Roth anymore and won’t this $45k to Roth trip a bunch of “alarms”?

Any help or advice is appreciated as now I am sort of worried about my plan to convert this amount after stumbling across this BH thread. I’ve been a recent and regular BH forum reader but haven’t come across this tax timing/penalty issue until now.


I'm a Vanguard user. Here's the process I've used with Vanguard within the last month. Let's assume that you want to convert $100,000, with $25,000 of taxes withheld:

1. Move $100,000 into your traditional IRA settlement fund, if it's not already there.

2. Start the Roth conversion process ...
by kd2008
Sun Dec 15, 2024 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: Bird in Hand- ACA vs Roth conversion?
Replies: 21
Views: 1886

Re: Bird in Hand- ACA vs Roth conversion?

mkc wrote: Sun Dec 15, 2024 5:22 pm Is there any difference in provider directory and/or out of network coverage between the Silver and Bronze options?
That would be an important driver for my decision making. In my zip code, provider network is much much worse with CSR plans. Bronze plans with HSA are the best in network coverage. Plus the optionality is worth something even if you don't do any Roth conversions or LTCG.
by kd2008
Sun Dec 15, 2024 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard won’t wire funds for a gift
Replies: 31
Views: 2831

Re: Vanguard won’t wire funds for a gift

Vanguard acted reasonably here. If you are asking to wire the money to *your* bank account that has already been linked to Vanguard, they could may be make an accomodation. If you are wanting Vanguard to wire the money to a *third party*, tough luck. Vanguard doesn't have to pander to you. They usually do it for real estate transactions. Even then they will assess and may decide to decline. Vanguard has wired money for me out of the country but it was to my bank account in another country. So they were ok with it.
by kd2008
Sat Dec 14, 2024 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Scammer wired $900,000 from our account to theirs by changing one letter in my email address
Replies: 66
Views: 14368

Re: Scammer wired $900,000 from our account to theirs by changing one letter in my email address

samsoes wrote: Sat Dec 14, 2024 8:41 am
alpenglow wrote: Thu Dec 12, 2024 5:53 pm A colleague's husband is the CFO at a PE firm. He got Secret Service involved when a wire scam took them for a few million bucks. I don't know most of the details, but the funds were recovered. I do know that they notified authorities the day of the incident. Good luck OP!
What's a PE firm?
Private Equity
by kd2008
Sat Dec 14, 2024 9:11 am
Forum: Personal Finance (Not Investing)
Topic: Guessing healthcare costs in retirement
Replies: 40
Views: 3156

Re: Guessing healthcare costs in retirement


Great job! Next step, remove the out of pocket max and replace it with what would be typical expenditure for your family. [Reaching out of pocket max each year would require lot of care to the point you or family members are eligible for Social security disability payments and have to go on Medicare for disability.]

That statement is just unimaginative. We hit out of pocket max every year on my wife's prescription alone. It works very well for her condition, but we've never had an insurance plan that had a negotiated rate for it, and it's very expensive (thousands per month). Unfortunately, the price is that high even for the generic, which I assume means there is not much demand for the drug, and not many others to share in the ...
by kd2008
Sat Dec 14, 2024 9:07 am
Forum: Personal Consumer Issues
Topic: Experiences with Progressive Insurance?
Replies: 9
Views: 751

Re: Experiences with Progressive Insurance?


I recently switched from Geico to Progressive because I could get the same coverage for a much lower price. However, today I unfortunately got into a car accident and had a fairly disappointing experience with them.

Filed a claim at 2 PM, got assigned a claims rep who didn't answer her phone and whose answering machine said she only worked until 3:30 PM and would get back to me the end of the next business day. This means that for an accident early Friday afternoon, I'd hear absolutely nothing from the company until Monday, which seems excessively slow to me.

Hilariously, while I was chasing down somebody to talk to at progressive, I got a call from Geico (the at-fault driver's insurance) who arranged a rental car for me and also ...
by kd2008
Sat Dec 07, 2024 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Guessing healthcare costs in retirement
Replies: 40
Views: 3156

Re: Guessing healthcare costs in retirement



May I be super harsh with you and give you a dose of reality?

Stop throwing random unnecessary large numbers and expect it to be the solution to healthcare costs.

Go to https://www.healthcare.gov/see-plans/#/ and follow the prompts to get actual prices. If your state has it's own healthcare exchange use that to get prices - including subsidy if any.

If you play enough with it you will notice that if your income goes low you may get super cheap or zero dollar plan but they may have limited network and not cover the doctors and hospitals you need to be in your network.

Healthcare planning in retirement pre-medicare involves balancing competing variables of network coverage, current expenses including medications and future possible ...
by kd2008
Sat Dec 07, 2024 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Guessing healthcare costs in retirement
Replies: 40
Views: 3156

Re: Guessing healthcare costs in retirement



May I be super harsh with you and give you a dose of reality?

Stop throwing random unnecessary large numbers and expect it to be the solution to healthcare costs.

Go to https://www.healthcare.gov/see-plans/#/ and follow the prompts to get actual prices. If your state has it's own healthcare exchange use that to get prices - including subsidy if any.

If you play enough with it you will notice that if your income goes low you may get super cheap or zero dollar plan but they may have limited network and not cover the doctors and hospitals you need to be in your network.

Healthcare planning in retirement pre-medicare involves balancing competing variables of network coverage, current expenses including medications and future possible ...
by kd2008
Sat Dec 07, 2024 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Guessing healthcare costs in retirement
Replies: 40
Views: 3156

Re: Guessing healthcare costs in retirement

May I be super harsh with you and give you a dose of reality?

Stop throwing random unnecessary large numbers and expect it to be the solution to healthcare costs.

Go to https://www.healthcare.gov/see-plans/#/ and follow the prompts to get actual prices. If your state has it's own healthcare exchange use that to get prices - including subsidy if any.

If you play enough with it you will notice that if your income goes low you may get super cheap or zero dollar plan but they may have limited network and not cover the doctors and hospitals you need to be in your network.

Healthcare planning in retirement pre-medicare involves balancing competing variables of network coverage, current expenses including medications and future possible ...
by kd2008
Sat Nov 30, 2024 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 4859
Views: 1312156

Re: Share your net worth progression

VanguardInvestor1972 wrote: Sat Nov 30, 2024 3:18 pm
kd2008 wrote: Sat Nov 30, 2024 11:03 am Me: We crossed $3 MM.
DH tossing in bed: I suppose this a milestone or something and that is why you are sharing this.
His gentle breathing resumes and he is fast asleep.
Nothing like your partner to keep you humble.
... and this board to CONGRATULATE YOU! :sharebeer
Thank you!
by kd2008
Sat Nov 30, 2024 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 4859
Views: 1312156

Re: Share your net worth progression



I turned 40 this year, spouse will be 60 soon.

Just crossed 2 million in combined net worth. 1.85 of that is invested. Rest is equity in the home.

Being the higher earner, I brought in 1.45 of the net worth, spouse brought in 0.55.

Very modest income in 12% marginal rate - maxing out all tax advantaged accounts, both working. Spending about 50K now, 35K w/o mortgage.

Spouse planning on retiring in 3 years.

I haven't set my sight on a date yet. Long road ahead of us. One step at a time.

Grateful for where we are now.


Minor update. Me 42, DH 61 and retired.

Invested assets now $2.1 million. (The number starting with two for the invested assets feels special)

Networth $2.3 million.

Very modest income in 12% marginal rate ...
by kd2008
Thu Nov 28, 2024 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: The different method of arriving at your numbers [retirement planning]
Replies: 33
Views: 2184

Re: The different method of arriving at your numbers [retirement planning]

OP, since this is an intellectual exercise, I would like to ask why does it have to be based on a number?

If you are calculator shopping, you might as well add ficalc.app

For us, the decisions are based on a continuum rather a binary yes YES/NO. Does one of us retire before the other? If so, what will it do to cash flow, savings rate, health insurance, periodic large expenses etc.?

What happens when mortgage is paid off? What changes when Medicare starts, SS starts, RMD starts? First for just one person, then the younger partner?

What are risks to the plan? What unexpected and uncontrollable events including a bad sequence of returns do to the plan?

What does adaptability look like when human capital is exhausted and portfolio ...