Search found 67 matches

by jeffreys
Fri Nov 27, 2020 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: T Rowe Price 401k In-Service Roth Conversion
Replies: 5
Views: 314

Re: T Rowe Price 401k In-Service Roth Conversion

Thanks, everyone. Our next question was can we just roll the Roth portion of his 401k to his Roth 401k and leave the tax-deferred portion in the 401k if he were to separate from the company at age 55? I believe I found that answer here basically stating the IRS allows it but the plan may not. So bac...
by jeffreys
Fri Nov 27, 2020 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: T Rowe Price 401k In-Service Roth Conversion
Replies: 5
Views: 314

Re: T Rowe Price 401k In-Service Roth Conversion

A conversion within His 401k would be an in-plan-Roth-rollover. From what you said, that apparently is not an option. Thanks for that. He was in the process of proposing a message basically stating "we think you're information is correct but question the terminology being used" when we sa...
by jeffreys
Fri Nov 27, 2020 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: T Rowe Price 401k In-Service Roth Conversion
Replies: 5
Views: 314

Re: T Rowe Price 401k In-Service Roth Conversion

We heard back from T Rowe Price and his 401k plan does not offer In-Plan Roth Rollover. We're wondering if they could be misunderstanding our question (or we didn't ask it correctly) because we don't want to roll it into his IRA but want to know if a conversion is possible within the 401k. We're con...
by jeffreys
Thu Nov 26, 2020 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: Underestimated on Marketplace ACA application, what to do?
Replies: 29
Views: 2045

Re: Underestimated on Marketplace ACA application, what to do?

This discussion has been interesting and educational, thanks, everyone. It makes me think -- suppose you are under 65, happen to have all your investments in Roth, not working (retired early), not collecting SS and limited income (like limited dividends, pensions, annuity). What do you do to stay o...
by jeffreys
Thu Nov 26, 2020 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone use plaid.com?
Replies: 39
Views: 4854

Re: Does anyone use plaid.com?

I am a web developer and built an application for a client using this. The application collects payments via ACH debit. When someone wants to make a payment they connect their bank account in my app which launches a Plaid interface where they choose their financial institution and then log into thei...
by jeffreys
Thu Nov 26, 2020 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Insurance non-renewal
Replies: 6
Views: 677

Re: Insurance non-renewal

I received a notice of non-renewal for Geico umbrella due to two at-fault claims on Geico auto policy in 5 years. One of the two were for a rental vehicle with a minor damage due to it hitting a curb. Geico didn’t pay anything for that as it turns out I had LDW on the rental. It didn’t affect my Ge...
by jeffreys
Thu Nov 26, 2020 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Underestimated on Marketplace ACA application, what to do?
Replies: 29
Views: 2045

Re: Underestimated on Marketplace ACA application, what to do?

This discussion has been interesting and educational, thanks, everyone. It makes me think -- suppose you are under 65, happen to have all your investments in Roth, not working (retired early), not collecting SS and limited income (like limited dividends, pensions, annuity). What do you do to stay of...
by jeffreys
Sun Nov 22, 2020 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: Planning For Mega Roth Conversions
Replies: 15
Views: 727

Re: Planning For Mega Roth Conversions

Ok. You might consider stretching the conversions over a longer number of years. You are still relatively young, and should have your mental faculties for a while. For example, just stretching it over 8 years instead of 4 years, would allow 4 additional years of filling the 10% and 12% brackets wit...
by jeffreys
Sun Nov 22, 2020 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Pandemic reduced our spending by 30% - How about you?
Replies: 118
Views: 7674

Re: Pandemic reduced our spending by 30% - How about you?

I track all our expenses in Quicken. This is a comparison of the last 12 months (so it would include some pre-COVID time) and the previous 12 months of some of the major categories we are discussing.

Down
Overall: 12%
Fuel: 62%
Restaurant: 45%
Vacation: 76%

Up
Groceries: 68%
Utilities: 16%
by jeffreys
Sun Nov 22, 2020 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Planning For Mega Roth Conversions
Replies: 15
Views: 727

Re: Planning For Mega Roth Conversions

Ok. You might consider stretching the conversions over a longer number of years. You are still relatively young, and should have your mental faculties for a while. For example, just stretching it over 8 years instead of 4 years, would allow 4 additional years of filling the 10% and 12% brackets wit...
by jeffreys
Sun Nov 22, 2020 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Planning For Mega Roth Conversions
Replies: 15
Views: 727

Re: Planning For Mega Roth Conversions

Converting ALL your traditional to Roth rarely produces optimal outcomes. Do you have a really large pension, or some other taxable income stream? If not, it seems you would be paying 22% tax on much of the conversion now if you convert $1.1M over four years, when you could withdraw a good bit of t...
by jeffreys
Sun Nov 22, 2020 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Planning For Mega Roth Conversions
Replies: 15
Views: 727

Re: Planning For Mega Roth Conversions

The amount to retain beyond QCD giving depends on the amount of taxable income (pensions, interest, dividends, etc) that you expect to receive. In our case, we have no pension and almost 100% of our portfolio is in tax advantaged, so we will have about $18,000 a year of withdrawal “headroom” before...
by jeffreys
Sun Nov 22, 2020 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Planning For Mega Roth Conversions
Replies: 15
Views: 727

Re: Planning For Mega Roth Conversions

In an IRA so that can be converted any time. We have not looked into in-service conversions for her tax-deferred 401k money. If you have not done it, find out how the plan handles this. Some do not make it easy. For example, some plans make you take a total distribution instead of some now and some...
by jeffreys
Sun Nov 22, 2020 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Planning For Mega Roth Conversions
Replies: 15
Views: 727

Re: Planning For Mega Roth Conversions

retiredjg wrote: Sun Nov 22, 2020 12:34 pm Yes. to the extent that long term care costs are enough to overcome the requirements to deduct medical costs from income.
Thanks that was something we weren't sure of -- are LTC costs considered medical expenses.
by jeffreys
Sun Nov 22, 2020 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Planning For Mega Roth Conversions
Replies: 15
Views: 727

Re: Planning For Mega Roth Conversions

Always love hearing about Roth conversions. Hope to see some answers. What exactly is iORP telling you? Since we set it for "Unlimited Conversions", it has us doing 4 years of conversions at the start of our early retirement (see linked thread in my original post). We are generally happy/...
by jeffreys
Sun Nov 22, 2020 9:26 am
Forum: Personal Finance (Not Investing)
Topic: Planning For Mega Roth Conversions
Replies: 15
Views: 727

Planning For Mega Roth Conversions

A summary of our portfolio from a month ago and our retirement goals can be found here . Since creating this we changed his 401k allocation to 70/30 equities/bonds so about $606k equities and $260k bonds. We've been playing with i-orp and it's recommending mega Roth conversions at the start of our e...
by jeffreys
Wed Nov 18, 2020 8:01 pm
Forum: Personal Investments
Topic: Retirement at 53 (a little over one year from now)
Replies: 52
Views: 8644

Re: Retirement at 53 (a little over one year from now)

Other Boglheads have recommended I-ORP: https://www.i-orp.com/GlidPath/extended.html I've run my numbers through this tool, but admittedly, I've had difficulty interpreting the results. Fortunately, someone in our local Bogleheads group who has a better understanding of is going to do a demo of it ...
by jeffreys
Sun Nov 15, 2020 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: How to best maximize Tax Deferred Accounts
Replies: 29
Views: 1473

Re: How to best maximize Tax Deferred Accounts

Would it make sense to max out a Traditional IRA and then do a backdoor to a Roth IRA every year? It's likely that you aren't eligible for a tIRA. Instead, you would max out a non-deductible IRA and then do a Roth conversion on that along with your existing small tIRA. I am currently having to keep...
by jeffreys
Sun Nov 15, 2020 9:40 am
Forum: Personal Finance (Not Investing)
Topic: T Rowe Price 401k In-Service Roth Conversion
Replies: 5
Views: 314

T Rowe Price 401k In-Service Roth Conversion

Does anyone have their 401k with T Rowe Price and does your plan allow for an In-Service Roth Conversion? We have reviewed the plan description and although we can do Roth contributions, it does not talk about in-service Roth conversions. We've composed an email T Rowe Price with this question, but ...
by jeffreys
Sun Nov 15, 2020 7:31 am
Forum: Personal Finance (Not Investing)
Topic: Using life insurance to move money to “tax-free” status?
Replies: 18
Views: 1996

Re: Using life insurance to move money to “tax-free” status?

This sounds like an Indexed Universal Life (IUL) policy. We attended a dinner presentation on this and they do a great sell but we ran out of there like the building was on fire. Very complex and what scared me was how I would get out of if I no longer liked it or felt I couldn't afford the premiums.
by jeffreys
Sun Nov 15, 2020 7:26 am
Forum: Personal Finance (Not Investing)
Topic: ACA Marketplace with income greater than ceiling?
Replies: 9
Views: 1281

Re: ACA Marketplace with income greater than ceiling?

Thanks.

Since asking these we've wrapped our heads around i-ORP and discovered we need to do mega Roth conversions in early retirement so trying for an ACA subsidy is now moot for those years. Regardless, it's good to have a plan.
by jeffreys
Sat Nov 14, 2020 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: ACA Marketplace with income greater than ceiling?
Replies: 9
Views: 1281

Re: ACA Marketplace with income greater than ceiling?

The normal under-withholding/underpayment penalty and safe harbor still apply. If you get the advance credit and you only paid $5k in withholding or estimated taxes during the year, but it turns out your taxes are $25k because you have to pay back the subsidy, you underpaid during the year. That's ...
by jeffreys
Sat Nov 14, 2020 9:31 am
Forum: Personal Finance (Not Investing)
Topic: ACA Marketplace with income greater than ceiling?
Replies: 9
Views: 1281

Re: ACA Marketplace with income greater than ceiling?

Confirmed. In the "normal" cases, you will get the same amount of tax credit whether you get it in advance or when you file. Some corner cases make it preferable to get the advance credit. If you have to repay because your income is higher than estimated, you may be able to take advantage...
by jeffreys
Wed Nov 11, 2020 11:11 am
Forum: Personal Investments
Topic: Retirement at 53 (a little over one year from now)
Replies: 52
Views: 8644

Re: Retirement at 53 (a little over one year from now)

We're in a similar place to you: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=328541 I'm curious what your additional expenses in retirement will be -- $70k to $84k. I didn't consider that in our analysis and we'll probably have a similar increase for health insurance and travel. Is tha...
by jeffreys
Sun Nov 01, 2020 8:16 pm
Forum: Personal Investments
Topic: Portfolio Analysis: Can We Retire Early?
Replies: 14
Views: 2290

Re: Portfolio Analysis: Can We Retire Early?

The immediate poster above mentioned it, but I was wondering if your $70k anticipated spend (sans healthcare) includes taxes. With the feedback I've gotten so far, I'm not happy with that $70k spend figure I've provided. It does include $11k in estimate tax payments for Roth conversions and capital...
by jeffreys
Sun Nov 01, 2020 8:07 pm
Forum: Personal Investments
Topic: Portfolio Analysis: Can We Retire Early?
Replies: 14
Views: 2290

Re: Portfolio Analysis: Can We Retire Early?

Yes you have the money to retire early with a conservative 3% SWR. I would pay off the mortgage today. Your net worth is in excess of 2.5M having a mortgage for 70k is silly. Be debt free. Thanks for confirming this. We have plans to pay it off during the first half of 2021 with CDs that are maturi...
by jeffreys
Sun Nov 01, 2020 5:18 pm
Forum: Personal Investments
Topic: Portfolio Analysis: Can We Retire Early?
Replies: 14
Views: 2290

Re: Portfolio Analysis: Can We Retire Early?

Thanks for the review it was eye-opening especially in regards to health care as the $70k in yearly expenses does not include that. What would be a safe number to budget each year for a couple in good health using the ACA (assuming it is still around post-election) assuming no subsidies? Next, have ...
by jeffreys
Sat Oct 31, 2020 8:01 pm
Forum: Personal Investments
Topic: Retirement at 53 (a little over one year from now)
Replies: 52
Views: 8644

Re: Retirement at 53 (a little over one year from now)

We're in a similar place to you: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=328541 I'm curious what your additional expenses in retirement will be -- $70k to $84k. I didn't consider that in our analysis and we'll probably have a similar increase for health insurance and travel. Is that...
by jeffreys
Mon Oct 26, 2020 12:53 pm
Forum: Investing - Theory, News & General
Topic: Will I really need 80% replacement during retirement?
Replies: 118
Views: 10721

Re: Will I really need 80% replacement during retirement?

So our annual expenses don't include FICA or 401k withholdings. Your definition of expenses as not including FICA or tax withholding is a bit arbitrary. I think the OP meant that FICA and 401k withholding (deduction, actually) don't factor in during retirement. Tax withholding for income, including...
by jeffreys
Mon Oct 26, 2020 7:38 am
Forum: Investing - Theory, News & General
Topic: Will I really need 80% replacement during retirement?
Replies: 118
Views: 10721

Re: Will I really need 80% replacement during retirement?

We were discussing this the other day and in our case, we can't see how our expenses will decrease. We've tracked all of our income and expenses in Quicken for well over 20 years so I can easily run a report to see our annual expenses. For income, we just record our net salary and do not track the w...
by jeffreys
Sun Oct 25, 2020 1:25 pm
Forum: Personal Investments
Topic: Portfolio Analysis: Can We Retire Early?
Replies: 14
Views: 2290

Re: Portfolio Analysis: Can We Retire Early?

What does retirement mean to you? To some traditionalists it means not working but there are plenty of other people nowadays who view retirement as a continuum where some amount of work is continued with part time consulting, owning a small business, a job with less stress, or something that is mor...
by jeffreys
Sun Oct 25, 2020 12:59 pm
Forum: Personal Investments
Topic: Portfolio Analysis: Can We Retire Early?
Replies: 14
Views: 2290

Re: Portfolio Analysis: Can We Retire Early?

I’d worry about the significant holdings in individual stocks personally, but perhaps they’re well diversified. In any case that is something to consider. We've been working on that. That number represents 3 different stocks with one stock being the majority. We've done so well with that one that w...
by jeffreys
Sun Oct 25, 2020 12:41 pm
Forum: Personal Investments
Topic: Portfolio Analysis: Can We Retire Early?
Replies: 14
Views: 2290

Portfolio Analysis: Can We Retire Early?

We are both feeling burnt out from working and have a goal to retire early. Here are our numbers and related information. Him: Age 53 401k Equities: $631,000 401k Bond: $100,000 401 Equities Roth: $135,000 Roth IRA: $34,000 Taxable ETF: $58,000 Total of individual stocks: $562,000 HSA:$14,000 Annuit...
by jeffreys
Sat Oct 17, 2020 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: Date Due: Upon Receipt
Replies: 10
Views: 1165

Re: Date Due: Upon Receipt

This frustrated me as well. We got a $3,000+ medical bill where insurance was still pending and it was due on receipt. Obviously, we weren't going to pay until the insurance hit. When the insurance was applied the new total was $522 which I was happy to pay immediately. I was confused as to why they...
by jeffreys
Sun Mar 15, 2020 9:59 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting and selling a mutual fund within 30 days of purchase
Replies: 12
Views: 860

Re: Tax loss harvesting and selling a mutual fund within 30 days of purchase

I think this discussion answers my questions. Here's my situation. Early last week we bought 100 shares of a company and the price continued to drop throughout the week. Since we had a capital gain in 2020 before the marked dropped the end of February I'm now interested in doing TLH on these 100 sha...
by jeffreys
Tue Feb 18, 2020 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Invest in career change to Accounting for 37 yr old? Would it be foolish?
Replies: 169
Views: 13059

Re: Invest in career change to Accounting for 37 yr old? Would it be foolish?

lostinthesauce wrote: Sat Jul 13, 2019 9:22 am I was hoping some of the users here on bogleheads might be able to share some insight on what it's like to be an accounting major.
This was my original plan.
BlueCable wrote: Sat Jul 13, 2019 9:26 am Have you considered becoming a software developer?
This is what I ended up doing (thank goodness!).
by jeffreys
Sat Feb 15, 2020 10:41 pm
Forum: Personal Investments
Topic: Roth Conversion Pro Rata Math
Replies: 9
Views: 866

Re: Roth Conversion Pro Rata Math

Follow-up. We just completed the first run-through of our taxes with Turbo Tax. The way we do taxes is hubby operates the software and I am responsible for document gathering. When we got to the Roth conversion portion (Form 8606) he couldn't figure out how to enter our numbers via the "wizard&...
by jeffreys
Sat Feb 01, 2020 3:00 pm
Forum: Personal Investments
Topic: Want to sell stock -- how could higher income hurt us?
Replies: 2
Views: 342

Want to sell stock -- how could higher income hurt us?

We own some individual stocks that we want to sell and diversify a bit as we're getting a little nervous about having all our eggs in one basket. Taxes will all be long term gains on the stocks. What we want to be careful about when this additional income is floated on our earned income, what sort o...
by jeffreys
Sat Jan 18, 2020 10:10 am
Forum: Personal Finance (Not Investing)
Topic: TaxAct Discounts for 2019 version
Replies: 35
Views: 3600

Re: TaxAct Discounts for 2019 version

One thing I noticed FreeTaxUSA that 2 years ago did not generate a form for backDoor Roth (I am usually meticulous on entering backdoor tax data so 60% confident its software fault), I hope they fixed it now but will keep an eye on that form from now on when generating online return, otherwise was ...
by jeffreys
Wed Jan 01, 2020 9:37 pm
Forum: US Chapters
Topic: Wisconsin - Madison Meetings - Master Thread
Replies: 158
Views: 72521

Re: Wisconsin - Madison Meetings - Master Thread

Isaac'sFoundation wrote: Sat Dec 21, 2019 7:31 pm Sprecher's in Madison has closed permanently. I have not heard about a Dec 2019 meeting. Any admin comment on any upcoming meetings?
We meet on the ODD numbered months, so no meeting in December.

The next one is Saturday, January 11, at 12:30 p.m. at the Middleton Public Library.
by jeffreys
Wed Jan 01, 2020 2:16 pm
Forum: Personal Investments
Topic: Vanguard RMD Calculator -- Where?
Replies: 16
Views: 1428

Re: Vanguard RMD Calculator -- Where?

Why not just use the IRS worksheet ? The hardest part is determining your total IRA balances as of 12/31/2019 then just divide by a number you look up in the table. Do the RMD calculators provide something beyond this? Because it's "fun". I'm nowhere near RMD age or even retirement. I jus...
by jeffreys
Wed Jan 01, 2020 10:12 am
Forum: Personal Investments
Topic: Vanguard RMD Calculator -- Where?
Replies: 16
Views: 1428

Re: Vanguard RMD Calculator -- Where?

I'm not in need of RMD services but just want to run some numbers now that December 31 balances are available. Looks like it might be gone. I know there are others out there, I just liked Vanguard's the best. :(
by jeffreys
Wed Jan 01, 2020 8:10 am
Forum: Personal Investments
Topic: Vanguard RMD Calculator -- Where?
Replies: 16
Views: 1428

Vanguard RMD Calculator -- Where?

Vanguard has or had a nice RMD calculator on their site where you could estimate your future RMD and balances over time. I'm unable to locate it. Can anyone else here find it and give me a link?
by jeffreys
Mon Dec 30, 2019 12:57 pm
Forum: Personal Investments
Topic: Roth Conversion Pro Rata Math
Replies: 9
Views: 866

Re: Roth Conversion Pro Rata Math

Pulled the trigger on the Roth conversion! Going to make an estimated tax payment prior to the January 15 to ensure we don't get an underpayment penalty come tax-filing time.

No turning back now! :D
by jeffreys
Sun Dec 29, 2019 8:41 pm
Forum: Personal Investments
Topic: Roth Conversion Pro Rata Math
Replies: 9
Views: 866

Re: Roth Conversion Pro Rata Math

For reference, here is a very similar question to mine where someone spelled out the math for subsequent years: viewtopic.php?t=239356#p3743387
by jeffreys
Sun Dec 29, 2019 5:07 pm
Forum: Personal Investments
Topic: Roth Conversion Pro Rata Math
Replies: 9
Views: 866

Re: Roth Conversion Pro Rata Math

Not sure what you mean here. Part two wasn't really a question or concern more of a fun observation. I was just stating my tIRA is growing so fast that if I continue to convert so little each year (regardless of the pro rata calculation I have to deal with) I'll never get it completely converted. I...
by jeffreys
Sun Dec 29, 2019 12:46 pm
Forum: Personal Investments
Topic: Roth Conversion Pro Rata Math
Replies: 9
Views: 866

Re: Roth Conversion Pro Rata Math

Yes, except "rollover" means something different and you are doing a conversion. Thanks for pointing that out. I edited my post to say "conversion" because that is what this actually is (I'm constantly swapping those terms and need to be more careful). The non-deductible portion...
by jeffreys
Sun Dec 29, 2019 12:36 pm
Forum: Personal Investments
Topic: Roth Conversion Pro Rata Math
Replies: 9
Views: 866

Roth Conversion Pro Rata Math

Part One: I want to do a Roth coversion with some of my traditional IRA funds. Let's say I convert $10,000, I understand that I will be adding $10,000 to my income for 2019 as I will now owe taxes on that money. Straight forward. However, I am faced with the pro-rata rule due to a non-deductible IRA...
by jeffreys
Tue Aug 14, 2018 2:50 pm
Forum: US Chapters
Topic: Wisconsin - Madison Meetings - Master Thread
Replies: 158
Views: 72521

Re: Wisconsin - Madison Meetings - Master Thread

Is there an August meetup planned or did I miss it? I think the scheduled date would have fallen on August 11.
by jeffreys
Thu Jul 26, 2018 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Excess 401k Contribution
Replies: 7
Views: 1227

Re: Excess 401k Contribution

Thanks to today's mail delivery this has been resolved. We owe the IRS either $39.97 or $39.97 x 2. What is odd is hubby and I each got the same letter addressed to each of us separately (so 2 envelopes) but his SSN is on both. So I'm thinking we only owe one payment of $39.97 and not two? Maybe the...