Search found 47 matches

by dash1s
Wed Jun 24, 2020 10:57 pm
Forum: Personal Investments
Topic: Taxation of negative accrued interest on exchange traded debt
Replies: 10
Views: 815

Re: Taxation of negative accrued interest on exchange traded debt

I purchased some exchange traded debt (very similar to a baby bond), which trades flat (accrued interest is exchanged via the trade price, rather than a separate accrued interest payment), but the trade occurred after the ex-dividend (ex-coupon) date. This means that I didn't actually receive an interest payment for interest that accrues while I owned it - so it should be reflected as a lower purchase price to compensate. I'm trying to figure out if, for taxes, I should treat the accrued interest discount as taxable interest received (in the year purchased) and also increase my basis accordingly? For flat traded debt like this, I believe that is what you should do for positive accrued interest, per pub 550 (but with a negative sign in fron...
by dash1s
Mon May 18, 2020 10:04 pm
Forum: Investing - Theory, News & General
Topic: Social Security is an asset....yet again
Replies: 129
Views: 7405

Re: Social Security is an asset....yet again

Income Stream = Asset.
by dash1s
Mon May 18, 2020 10:03 pm
Forum: Investing - Theory, News & General
Topic: Social Security is an asset....yet again
Replies: 129
Views: 7405

Re: Social Security is an asset....yet again

willthrill81 wrote: Mon May 18, 2020 3:58 pm
chuckb84 wrote: Mon May 18, 2020 1:06 pm I know that this has been debated a lot here, and I'm solidly in the camp of SS is NOT an asset, because it flunks every test for the attributes of asset....and passes every test to be considered an income stream.
If it was an asset, you could sell it. But you cannot.

It's an income stream.
An asset you can not sell is a illiquid asset..... So it is both an asset (an illiquid one) and a income stream. :)
by dash1s
Mon May 18, 2020 10:02 pm
Forum: Investing - Theory, News & General
Topic: Social Security is an asset....yet again
Replies: 129
Views: 7405

Re: Social Security is an asset....yet again

willthrill81 wrote: Mon May 18, 2020 3:58 pm
chuckb84 wrote: Mon May 18, 2020 1:06 pm I know that this has been debated a lot here, and I'm solidly in the camp of SS is NOT an asset, because it flunks every test for the attributes of asset....and passes every test to be considered an income stream.
If it was an asset, you could sell it. But you cannot.

It's an income stream.
An asset you can not sell is a illiquid asset.....
by dash1s
Tue Jan 07, 2020 10:20 pm
Forum: Personal Finance (Not Investing)
Topic: Living in a HCOL and making a middle class salary is a struggle
Replies: 340
Views: 27014

Re: Living in a HCOL and making a middle class salary is a struggle

wife and i live in a very expensive suburb of NYC (Westchester for those familiar). at 33-years old we make "decent" but not excellent salaries (her ~$100K and me ~$115K). all in we're at ~$230K gross. we're starting a family and starting to look at homes in the area. even in the less prestigious towns, $600K gets you a fixer upper in a decent school district. anything under $500K, forget about it. not even worth it. and the taxes? yikes. 2%-4% of home value seems to be average. moving is the logical first thought but that is quickly done away with as my wife is a tenured teacher in a good school district and her entire support system is here. this is as much a vent as a place to discuss. have any other folks made it in a HCOLA o...
by dash1s
Thu May 09, 2019 3:31 pm
Forum: Personal Investments
Topic: Mega-Backdoor Roth (MBR) vs 529 for college
Replies: 13
Views: 1805

Re: Mega-Backdoor Roth (MBR) vs 529 for college

Aren't education expenses qualified withdrawals from roth? So you can theoretically draw down on roth earnings before 59 penalty free (assuming any principal you had was already withdrawn already because that comes out first)?
by dash1s
Thu May 02, 2019 10:21 pm
Forum: Personal Investments
Topic: Riskfree 3.00% Yield?!
Replies: 33
Views: 7157

Re: Riskfree 3.00% Yield?!

There was another post recently about some munis that spike. Sounds like a seasonal thing that occurs just after taxes are due, but does not persist. I read that. But it hasn't really explained it for me. Just look at FSNXX end of month yields (and the below trend is more of the same for all the others). For those not familiar, this is the annualized daily accrual using the daily accrual for the last day of the month. I know treasuries have moved but that's a pretty violent move this past m/m. 1/31/15 0.01% 2/28/15 0.01% 3/31/15 0.01% 4/30/15 0.01% 5/31/15 0.01% 6/30/15 0.01% 7/31/15 0.01% 8/31/15 0.01% 9/30/15 0.01% 10/31/15 0.01% 11/30/15 0.01% 12/31/15 0.01% 1/31/16 0.01% 2/29/16 0.01% 3/31/16 0.04% 4/30/16 0.09% 5/31/16 0.14% 6/30/16 0...
by dash1s
Thu May 02, 2019 8:41 pm
Forum: Personal Investments
Topic: Riskfree 3.00% Yield?!
Replies: 33
Views: 7157

Re: Riskfree 3.00% Yield?!

Hi all, I’m looking at the VYFXX, and the SEC yield has spiked recently. Did anyone else notice this? I’m calculating close to 3.00% riskfree TEY yield as of now. Please check my math and let’s find out together. VYFXX is a Federal and NYS Tax exempt fund! SEC Yield: 2.07% My Fed Tax Rate: 22% My NYS Tax Rate: 6.5% TEY Yield: 2.07/(1-.285)=2.90% Is this correct? All New York MM tax-exempt yields have went vertical over the last 30 days. I haven't looked at VYFXX specifically, but the TEY yield you quote is in the ballpark of some similar NY MM's I am tracking. Trying to figure out the rationale as to the cause for such a spike. I don't want to sell individual bonds to chase yield that will only be gone tomorrow is my current dilemma.
by dash1s
Thu May 02, 2019 8:25 pm
Forum: Investing - Theory, News & General
Topic: I can't make heads or tails of these SEC yields
Replies: 11
Views: 1401

Re: I can't make heads or tails of these SEC yields

Muni MM yield fluctuates on a surprisingly cyclical schedule. It will rise for 4-6 weeks, then fall for the next 4-6 weeks. The current 2.11% yield is a result of continuous yield increases since the time it was at 1.45% less than a month ago. I wouldn't be surprised if we are near the peak of the current cycle, and the Muni MM yield starts to fall in a week or two. Can you help me with this? I am relatively new to muni's. Primarily have been looking at FSNXX which has added ~50bps of yield in less than a month. Kind of taken back the magnitude of this move. Was contemplating selling some of my individual treasury bills/bonds today, but wasn't sure if this move in muni's was just technical or here to stay. You say this happens frequently?
by dash1s
Fri Mar 22, 2019 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Form 8606 help
Replies: 12
Views: 1989

Re: Form 8606 help

Don't agree with the above.... Line 10 Specifically says: "Divide line 5 by line 9. Enter the result as a decimal rounded to at least 3 places. If the result is 1.000 or more, enter “1.000”" .... So line 10, per their instructions, would be "1.000" for you. Nope. I think you reversed the numbers. When you divide one number by another that is bigger, you get a number less than 1.0 . Think of 1/2, 2/5, 99/100. And without doing any calcs, if the basis (already taxed amount) is $11,000, shouldn't that leave $3 to be taxed? I did not reverse the numbers. And my math is correct. Line 5 / Line 9 = 11000 / 11003 = 0.9997 .... and 0.9997 rounded to three places per IRS instructions is 1.000 So if you follow the IRS's rounding i...
by dash1s
Fri Mar 22, 2019 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Form 8606 help
Replies: 12
Views: 1989

Re: Form 8606 help

On your 2017 Form 8606, everything looks ok. For 2018, you should tell the tax preparer to first use the software to report the contribution as nondeductible. After that, he/she should go back to an earlier part in the software where the Roth conversions are reported ($11,003, since values are rounded to the closest whole dollar). Also show them the bottom of the Backdoor Roth wiki page where it talks about using the tax software. If everything is entered correctly, your numbers for 2018 should end up: Part I Nondeductible contribution 1. 5500 2. 5500 (this is the remaining basis carried over from line 14 of the previous year's Form 8606) 3. 11000 4. 0 5. 11000 6. 0 (I assume all your traditional IRAs were empty on 12/31/2018 7. 0 8. 11003...
by dash1s
Wed Mar 20, 2019 8:32 pm
Forum: Personal Investments
Topic: Role of Pensions and Social Security in Asset Allocation
Replies: 147
Views: 9365

Re: Role of Pensions and Social Security in Asset Allocation

The argument against counting pensions and Social Security in asset allocation flows not from intuition but from first principles of economics: they aren't financial assets, so we don't count them in asset allocation. To start, it is perfectly fine if its' your preference to exclude Pension/Social from your current asset allocation. But, it makes us as a whole look bad to say Pension/Social Security aren't financial assets from "principles of economics" ..... its a future stream of cash flows... A future stream of cash flows IS an asset. Plain and simple, that's finance 101 and textbook definition material. Just because it doesn't show up as a security in your 401k/brokerage, doesn't mean you can redefine what a financial asset i...
by dash1s
Wed Mar 06, 2019 8:55 pm
Forum: Personal Consumer Issues
Topic: Diminished value claim advice
Replies: 43
Views: 3501

Re: Diminished value claim advice

I guess the discussion has evolved to the philosophical merits of diminished value. To make things more pragmatic, her plan was to hold on to the car for about five years (three years from now) and trade/exchange for something nicer; this plan may need to be reassessed based on recent events. I think any diligent prospective buyer of a used car would be checking Carfax before sealing the deal. As this incident will be shown in Carfax, I don't see how a prospective buyer would be willing to pay the same amount as a car without such a major incident. Exactly. You shouldn't now be forced to drive the car into the ground to avoid realizing a diminished value. The fault is on the other party, one should not alter plans to remedy their liabiliti...
by dash1s
Wed Mar 06, 2019 8:21 pm
Forum: Personal Consumer Issues
Topic: Diminished value claim advice
Replies: 43
Views: 3501

Re: Diminished value claim advice

Something is only worth what someone will pay for it. You may find someoen that will not care about the accident and pay full vale. Someone may not. You don't know until you sell it to find out. A diminished value claim, by its nature, is to reclaim your lost asset value as compensation due to someone else's fault. It is your choice whether you sell the car after receiving the compensation or if you drive it another 20 years. The goal of the appraisal (if necessary) is to have an unrelated party determine the change in worth for your vehicle. Just as you can be taxed on your property based on its value without selling the property, you can determine the DV without selling the vehicle. In fact you need to make the claim before selling the v...
by dash1s
Wed Mar 06, 2019 7:46 pm
Forum: Investing - Theory, News & General
Topic: Role of Pension and SS in determining FI number.
Replies: 35
Views: 3816

Re: Role of Pension and SS in determining FI number.

midareff wrote: Wed Mar 06, 2019 7:26 pm They are income streams and have nothing to do with your portfolio's (AA) asset allocation.
Of course they do. Income streams affect your ability to take risk.
by dash1s
Wed Mar 06, 2019 7:21 pm
Forum: Personal Consumer Issues
Topic: Diminished value claim advice
Replies: 43
Views: 3501

Re: Diminished value claim advice

I am wondering why would the quoted above matter? It doesn’t matter because it’s wrong. Something is only worth what someone will pay for it. You may find someoen that will not care about the accident and pay full vale. Someone may not. You don't know until you sell it to find out. A diminished value claim, by its nature, is to reclaim your lost asset value as compensation due to someone else's fault. It is your choice whether you sell the car after receiving the compensation or if you drive it another 20 years. The goal of the appraisal (if necessary) is to have an unrelated party determine the change in worth for your vehicle. Just as you can be taxed on your property based on its value without selling the property, you can determine the...
by dash1s
Wed Mar 06, 2019 7:14 pm
Forum: Personal Consumer Issues
Topic: Diminished value claim advice
Replies: 43
Views: 3501

Re: Diminished value claim advice

8foot7 wrote: Tue Mar 05, 2019 8:07 pm
dash1s wrote: Tue Mar 05, 2019 6:56 pm
nhdean wrote: Tue Mar 05, 2019 5:33 pm If you run the car until it dies there is no diminished value, as long the accident did not cause premature death. If you do not sell the car, you don't have any diminished value.

I am wondering why would the quoted above matter?
It doesn’t matter because it’s wrong.
Figured as much.
by dash1s
Tue Mar 05, 2019 6:56 pm
Forum: Personal Consumer Issues
Topic: Diminished value claim advice
Replies: 43
Views: 3501

Re: Diminished value claim advice

nhdean wrote: Tue Mar 05, 2019 5:33 pm If you run the car until it dies there is no diminished value, as long the accident did not cause premature death. If you do not sell the car, you don't have any diminished value.
I have no background in the matter, but have found this thread pretty interesting.

I am wondering why would the quoted above matter? If hypothetically a 10K asset was now only worth 8K, there was an impairment and a loss has been incurred. Just because I didn't sell the car that next day, doesn't mean the loss due to impairment isn't real. What if I needed that 10K?

Doesn't really make sense to say, well if just don't sell your car, and run it until it dies, the diminished value won't even affect you!
by dash1s
Fri Feb 01, 2019 9:09 pm
Forum: Personal Finance (Not Investing)
Topic: Intro and Personal Finance Advice
Replies: 59
Views: 6998

Re: Intro and Personal Finance Advice

Insurance positions usually have commissions baked into the payouts. Does the 56k post-tax have a certain level of commissions in the forecast?
by dash1s
Mon Jan 07, 2019 10:03 pm
Forum: Personal Finance (Not Investing)
Topic: Sallie Mae Bank
Replies: 2
Views: 424

Re: Sallie Mae Bank

I've been looking at Sallie Mae Bank tonight. Current Yield on their Money Market is 2.2% Slightly higher than my current savings account, and I would get check writing ability. The downside is that transfers and deposits take forever to post - 5 business days for amounts <= $5k, 10 business days for amounts > $5k. :shock: Posting mostly to make sure that it's not a teaser rate - Does Sallie Mae generally try to continue being competitive with other high yield accounts? Also interested to hear reviews - good or bad. I have used Sallie for 4 years. I am a big fan and have recommended to others. Everything is as advertised. You have the pro/cons correct as is. Website interface is lacking, but you are there for the rate - which is all that m...
by dash1s
Tue Oct 09, 2018 6:43 pm
Forum: Personal Investments
Topic: Another TLH question
Replies: 6
Views: 557

Re: Another TLH question

Going to take a stab at this...

Long-term losses first offset LT gains, then ST gains, and than anything leftover up to 3,000 Ordinary Income
by dash1s
Thu Oct 04, 2018 9:00 pm
Forum: Investing - Theory, News & General
Topic: When does a stock become a bond before moving back to a stock again
Replies: 47
Views: 3075

Re: When does a stock become a bond before moving back to a stock again

vineviz wrote: Thu Oct 04, 2018 2:44 pm
lukestuckenhymer wrote: Thu Oct 04, 2018 2:41 pm
vineviz wrote: Thu Oct 04, 2018 2:36 pm
JoMoney wrote: Thu Oct 04, 2018 2:30 pm
vineviz wrote: Thu Oct 04, 2018 2:20 pm


Let me start by saying that a pennons is NOT part of your portfolio. It is an income stream (you hope), but it isn't an asset.
...
:shock: :shock: :shock: How is it not an asset? It's something they expect will bring future economic benefits. It certainly isn't a liability. It may be difficult to "rebalance" it in some sort of portfolio context, but it is an asset.
If you can't sell it and you can't buy it then it's not an asset.
"Accounts Receivable" is listed as an asset on a balance sheet. A (reasonably expected) future cash flow is an asset.
A firm can buy and sell outstanding ARs. You can't sell your own pension.
Disagree. Think firms like J G Wentworth would give a bid on pension.
by dash1s
Wed Aug 08, 2018 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Career Move: Large Bank to Small Bank, Yes or No?
Replies: 17
Views: 3021

Re: Career Move: Large Bank to Small Bank, Yes or No?

I think I would just ask them to bid you back. 4% bump isn’t much.
by dash1s
Wed Aug 08, 2018 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: Career Move: Large Bank to Small Bank, Yes or No?
Replies: 17
Views: 3021

Re: Career Move: Large Bank to Small Bank, Yes or No?

JHU ALmuni wrote: Wed Aug 08, 2018 7:21 pm
dash1s wrote: Wed Aug 08, 2018 7:19 pm
JHU ALmuni wrote: Sat Aug 04, 2018 10:06 am I got an offer from a smaller bank (ranked between 45 to 50 by assets). The new job is in the same city where I live and there will be no significant change to cost of living, commute, or other benefits. I like the new job because it will allow me to gain experience in a field I'm not exposed to at my current role and this will definitely make me more marketable in the future. The title will be same and pay increase is ~ 4% at the new role.
What is the field?
Compliance and risk management.
So moving from Compliance and risk management to ... Compliance and risk management? Im familiar with banks. What exactly is the function that makes you more marketable?
by dash1s
Wed Aug 08, 2018 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Career Move: Large Bank to Small Bank, Yes or No?
Replies: 17
Views: 3021

Re: Career Move: Large Bank to Small Bank, Yes or No?

JHU ALmuni wrote: Sat Aug 04, 2018 10:06 am I got an offer from a smaller bank (ranked between 45 to 50 by assets). The new job is in the same city where I live and there will be no significant change to cost of living, commute, or other benefits. I like the new job because it will allow me to gain experience in a field I'm not exposed to at my current role and this will definitely make me more marketable in the future. The title will be same and pay increase is ~ 4% at the new role.
What is the field?
by dash1s
Thu Jun 14, 2018 9:26 pm
Forum: Personal Investments
Topic: Callable bond- maintain or take loss?
Replies: 36
Views: 3588

Re: Callable bond- maintain or take loss?

I hope it is all right to mention Institutional names on this blog. Financial advisor firm was JP Turner and they switched to Centarius- it w/b the compliance Dept of JP Turner whose is no longer associated with that financial advisor. I also switched advisors for these CDs—thought was to let him reinvest; however, value seems too low now to reinvest. Bingo. Thanks for posting that. Quick google led to the below. There is a lot more shady stuff that pops up in google associated that name. No legal background so Idk what recourse you have. Maybe someone else might know. https://www.thestreet.com/story/13249205/1/investor-warning-keep-an-eye-on-jp-turner-brokers-after-shutdown.html NEW YORK (TheStreet) -- Management of J.P. Turner Associates...
by dash1s
Thu Jun 14, 2018 7:51 pm
Forum: Personal Investments
Topic: Callable bond- maintain or take loss?
Replies: 36
Views: 3588

Re: Callable bond- maintain or take loss?

Valuethinker wrote: Thu Jun 14, 2018 4:36 am Is there any way you can get compensation for this "advice"? The product sold to you was clearly inappropriately sold given your age and needs.

It's such a huge fraction of your retirement savings that just "taking the pain" is probably not the right answer, but conversely this thing is just sitting there, and will do for another 12 and 17 years, most likely.
Is there any sort of recourse in this situation?

As everyone pointed out, the product was inappropriate for a retail investor --- primarily given the % of the overall portfolio, the duration and investor's proximity to retirement. Imagine the commissions were lucrative which would support the case.
by dash1s
Tue May 22, 2018 10:44 pm
Forum: Personal Investments
Topic: Funding Roth IRA with extra money in money market account - Good or Bad?
Replies: 3
Views: 580

Re: Funding Roth IRA with extra money in money market account - Good or Bad?

At the end of the day its the same. Your question seems more around liquidity which you will have to make the call.
by dash1s
Mon May 21, 2018 8:36 pm
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 262
Views: 60367

Re: "Why 97% of People Don't Use 529 College Savings Plans."

theplayer11 wrote: Mon May 21, 2018 8:30 pm funded 529 for 2 kids, which paid for their college in full..We didn't fully max out our retirement funds, but would do the same in a heartbeat.
Nice! This is when a 529 plan works out. If your two kids happen to not go college or a less expensive one, is where you can find yourself under serious water.
by dash1s
Mon May 21, 2018 8:19 pm
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 262
Views: 60367

Re: "Why 97% of People Don't Use 529 College Savings Plans."

letsgobobby wrote: Mon May 21, 2018 8:08 pm Note if you are paying 40+% marginal taxes you may be paying 18.8-23.8% capital gains taxes. Unlikely you'll be paying 15%.

I approximate the tag drag in taxable is offset by the slightly higher fees in 529s. Details depend on specific investments and tax rates.
The 40% marginal we are speaking of is inclusive of a 10% penalty for no-qualified distributions.
by dash1s
Mon May 21, 2018 8:02 pm
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 262
Views: 60367

Re: "Why 97% of People Don't Use 529 College Savings Plans."

i don't understand why 529 threads always end up being so long. if you can max out your 401k, that alone puts you in the top 90th percentile of americans. add in maxing the IRA, probably bumps your into 95th percentile. add in maxing a HSA (stealth IRA) and yep, you're 97th percentile now. so if you're in the fortunate top 3% that can afford to put money into a 529, it's a no brainer -- do it. worst case scenario your kids don't go to college, they don't get married, don't have kids, no nieces/nephews, and you have no interest taking a community cooking class for yourself, so pay a penalty! how bad can it be? let's assume you contribute 5k yearly for 18 years, 7% return. you'll have about $170k. your contributions were $90k. a 10% penalty ...
by dash1s
Mon May 21, 2018 6:57 pm
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 262
Views: 60367

Re: "Why 97% of People Don't Use 529 College Savings Plans."

i don't understand why 529 threads always end up being so long. if you can max out your 401k, that alone puts you in the top 90th percentile of americans. add in maxing the IRA, probably bumps your into 95th percentile. add in maxing a HSA (stealth IRA) and yep, you're 97th percentile now. so if you're in the fortunate top 3% that can afford to put money into a 529, it's a no brainer -- do it. worst case scenario your kids don't go to college, they don't get married, don't have kids, no nieces/nephews, and you have no interest taking a community cooking class for yourself, so pay a penalty! how bad can it be? let's assume you contribute 5k yearly for 18 years, 7% return. you'll have about $170k. your contributions were $90k. a 10% penalty ...
by dash1s
Thu May 17, 2018 9:18 pm
Forum: Personal Investments
Topic: Fellow non-529ers
Replies: 43
Views: 4531

Re: Fellow non-529ers

Regarding getting "slaughtered on taxes" when trying to withdraw excess funds - is it really that much worse than the taxes you'd pay in a taxable account? IIRC there is an additional 10% tax on capital gains when you withdraw for reasons other than school expenses, but there's also been years of tax free growth without dividend or interest tax drag and the ability to sell in and out of investments without triggering capital gains. The gains are taxed at regular income tax rates instead of the lower capital gains tax rates. For investors in high-income brackets this is a considerable difference. And then you add in the 10% penalty, and it's nearly 50% tax (esp in CA with the high state taxes). This +1,000,000%. I've modeled this ...
by dash1s
Wed Apr 18, 2018 7:35 pm
Forum: Personal Investments
Topic: Weighted Expense Ratio Calculator
Replies: 7
Views: 3025

Re: Weighted Expense Ratio Calculator

The SUMPRODUCT function in excel. In two different array's, list the expense ratios of all your holdings and their particular weight in your portfolio. Array 1 = expense ratios. Array 2 = Portfolio Weight. Formula =SUMPRODUCT(Array1,Array2).
by dash1s
Wed Apr 18, 2018 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Flexible Spending Account Plan Year Overlap
Replies: 3
Views: 547

Re: Flexible Spending Account Plan Year Overlap

BogleMelon wrote: Wed Apr 18, 2018 7:18 pm Plan year 2018 contribution limit is $2650.
Not sure though if she still has the $1000 or it was forfeited when she left her former employer.
Check IRS Publication 969 for more info:
https://www.irs.gov/pub/irs-pdf/p969.pdf
Pretty sure I read somewhere that you do not have to forfeit any FSA amounts that were underfunded. That is the employer's risk.
by dash1s
Tue Apr 10, 2018 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: 8606 form - am I filling it correctly?
Replies: 32
Views: 4203

Re: 8606 form - am I filling it correctly?

Awesome. Got it. Thanks everyone.
by dash1s
Tue Apr 10, 2018 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: 8606 form - am I filling it correctly?
Replies: 32
Views: 4203

Re: 8606 form - am I filling it correctly?

- Splitting the 5,500 between 4,650 in roth (believe this is the most I could do because of a reduced contribution limit) and 850 as a non-deductible traditional IRA contribution (whatever is left of the 5,500 that can not go directly into a roth). - There were no conversions that occurred in the calendar year 2017. - There were no prior IRA balances (either roth or trad) prior to this transaction Direct contributions (the $4,650) are available to be withdrawn any time for any reason with no penalty. The $850 will have a 5 tax year clock attached to it (unless a penalty exception exists). The earnings from all of this money are not available without penalty or tax till you are over 59.5 For this reason, you should keep meticulous records o...
by dash1s
Tue Apr 10, 2018 10:02 am
Forum: Personal Finance (Not Investing)
Topic: 8606 form - am I filling it correctly?
Replies: 32
Views: 4203

Re: 8606 form - am I filling it correctly?

Ah, interesting. Originally, I split them up with the understanding that $4,650 would be free and clear from the get go and that the $850 would be subject to the 5 year rule.

Thanks for point this out. I will take a read through of these documents.
by dash1s
Mon Apr 09, 2018 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: 8606 form - am I filling it correctly?
Replies: 32
Views: 4203

Re: 8606 form - am I filling it correctly?

FiveK wrote: Mon Apr 09, 2018 11:44 am The $4650 and the Form 8606 Part I look correct.
Thank you very much.
by dash1s
Mon Apr 09, 2018 10:41 am
Forum: Personal Finance (Not Investing)
Topic: 8606 form - am I filling it correctly?
Replies: 32
Views: 4203

Re: 8606 form - am I filling it correctly?

This is my first year doing roth IRA and I normally do all my taxes by hand/excel…. I’m pretty sure I did this accurately, but would anyone just mind sanity checking my numbers -- my reduced roth ira contribution limit and reporting my basis on form 8606? Really would be much appreciated and Ive learned much of how to do this through reading the replies of the many helpful users on this board. For background… - Single Flier. AGI 120,345. No adjustments needed to get to MAGI. - Making a full 5,500 deposit this week for the 2017 tax year. - Splitting the 5,500 between 4,650 in roth (believe this is the most I could do because of a reduced contribution limit) and 850 as a non-deductible traditional IRA contribution (whatever is left of the 5,5...
by dash1s
Tue Mar 13, 2018 6:56 pm
Forum: Personal Investments
Topic: Any reason not to open a 529? (young investor)
Replies: 20
Views: 2675

Re: Any reason not to open a 529? (young investor)

cncm wrote: Tue Mar 13, 2018 6:40 pm I do this already, even though we don't have kids yet. I figure we should save now when financial pressures are minimal (we're DINKs) and effective tax rates are high, and once we have kids and one/both of us take lower paying jobs, we can just watch the balance grow (compounding returns FTW). Right now we already have about $60k saved in a 529 and we're planning to have kids in 2-3 years.
What age did you start?
by dash1s
Tue Mar 13, 2018 6:49 pm
Forum: Personal Investments
Topic: Any reason not to open a 529? (young investor)
Replies: 20
Views: 2675

Re: Any reason not to open a 529? (young investor)

I kick myself for not doing this at 22 for the all the reasons you listed below.
by dash1s
Wed Mar 07, 2018 7:35 pm
Forum: Personal Investments
Topic: Unused 529 account?
Replies: 13
Views: 1972

Re: Unused 529 account?

I would agree. But I would double check on how long you'll be able to avoid that 10% penalty due to the scholarship. Ie when does it expire.
by dash1s
Wed Mar 07, 2018 7:23 pm
Forum: Personal Investments
Topic: Unused 529 account?
Replies: 13
Views: 1972

Re: Unused 529 account?

I am not a 529 expert though have been trying to learn the in's and out's of these plans over the last month. Someone correct me if I am wrong but I was under the impression you are allowed to make a non-qualified distribution (to yourself) up to the amount of a college scholarship and penalty free. Quoting from http://www.savingforcollege.com/articles/the-truth-about-scholarships-and-529-plans-880 "2. You can avoid the penalty if you get a college scholarship. There are a few special exceptions to the 10% penalty rule, including when the beneficiary becomes incapacitated, attends a U.S. Military Academy or gets a scholarship. In the case of a scholarship, non-qualified withdrawals up to the amount of the tax-free scholarship can be ta...
by dash1s
Thu Feb 08, 2018 7:45 pm
Forum: Personal Consumer Issues
Topic: Scrapping old computer parts
Replies: 25
Views: 2758

Re: Scraping old computer parts

Steven in NC wrote: Thu Feb 08, 2018 6:36 pm If you decide to discard the hard drive just take a drill and drill a few holes right thru it.
+1.