Search found 72 matches
- Mon Nov 13, 2023 6:35 am
- Forum: Personal Finance (Not Investing)
- Topic: Amica Dividend Policy - Too Good To Be True?
- Replies: 32
- Views: 5609
Re: Amica Dividend Policy - Too Good To Be True?
Been with Amica a few years and overall I'm satisfied with them. Started out with dividend policies, but eventually they got cut down to a token %, like 5%. Service is still great, and prices are still competitive, so I'm not planning on moving.
- Fri Jan 27, 2023 8:30 pm
- Forum: Personal Consumer Issues
- Topic: For those who stopping growing vegetables, why did you stop?
- Replies: 36
- Views: 3353
Re: For those who stopping growing vegetables, why did you stop?
-Deer, squirrels and other pests
-Drought in our area (Southwest)
First two years were fun, 2022 was very stressful and didn't get much despite putting in more work than last two years.
Not stopping completely, but will be downsizing quite a bit or at least taking a break.
-Drought in our area (Southwest)
First two years were fun, 2022 was very stressful and didn't get much despite putting in more work than last two years.
Not stopping completely, but will be downsizing quite a bit or at least taking a break.
- Fri Jan 27, 2023 5:28 pm
- Forum: Personal Finance (Not Investing)
- Topic: Impossible for New hire to be HCE in first year?
- Replies: 1
- Views: 630
Impossible for New hire to be HCE in first year?
Please help me make sure I am thinking through this right:
- I started a new job toward the end of 2022.
-My base salary is above the HCE amount so I will be an HCE for 2023 year
-Since the income I actually received in 2022 from the company is below HCE threshold, I am not considered HCE yet and the HCE contribution limits do not apply to me in 2023, but they will apply starting in 2024.
Is this correct? If it is, I will be able to max out after-tax contributions for mega-backdoor Roth purposes this year.
- I started a new job toward the end of 2022.
-My base salary is above the HCE amount so I will be an HCE for 2023 year
-Since the income I actually received in 2022 from the company is below HCE threshold, I am not considered HCE yet and the HCE contribution limits do not apply to me in 2023, but they will apply starting in 2024.
Is this correct? If it is, I will be able to max out after-tax contributions for mega-backdoor Roth purposes this year.
- Wed Nov 30, 2022 1:45 pm
- Forum: Personal Investments
- Topic: 60-day rollover from post-tax 401k to Roth IRA: 1 per year limit?
- Replies: 2
- Views: 294
60-day rollover from post-tax 401k to Roth IRA: 1 per year limit?
My new employer allows in-service withdrawals from post-tax 401k, but no in-plan rollover to Roth 401k.
I believe I could take a distribution, pay tax on earnings, and deposit the post-tax basis into a Roth IRA as a 60-day rollover.
Does the Once a year limit apply in this case as well?
I believe I could take a distribution, pay tax on earnings, and deposit the post-tax basis into a Roth IRA as a 60-day rollover.
Does the Once a year limit apply in this case as well?
- Mon Jun 20, 2022 9:44 pm
- Forum: Personal Finance (Not Investing)
- Topic: Discover Bank ACH transfer out (push) takes 7 days (5 business)?
- Replies: 9
- Views: 1239
Re: Discover Bank ACH transfer out (push) takes 7 days (5 business)?
That is a pretty high limit that 99% of people would never even dream of worrying about.richard.h.gao wrote: ↑Mon Jun 20, 2022 9:06 pmApparently Discover Bank instituted a 30 day $250k transfer limit. So you cannot deposit more than $250k in 30 days. And if your account has more than $250k it will take you more than 30 days to withdraw all of it. What a useless bank.Super Hans wrote: ↑Thu Feb 11, 2021 11:17 am +1. I basically use my Discover account as a transfer hub.
- Tue Jun 14, 2022 12:08 pm
- Forum: Personal Finance (Not Investing)
- Topic: Questions for Schwab users - Schwab ACH from bank availability to trade?
- Replies: 11
- Views: 1060
Re: Questions for Schwab users - Schwab ACH from bank availability to trade?
This was one one my least favorite things about Schwab. Fidelity and Vanguard allow you to trade with funds right after you initiate the transfer pull from another institution. Schwab is next business day.
- Tue May 10, 2022 12:32 am
- Forum: Personal Finance (Not Investing)
- Topic: Share your Net Worth Regression
- Replies: 350
- Views: 59837
Re: Share your Net Worth Regression
Dropped from 540k to around 497, despite adding about 40k in new money so far.
- Wed Jan 12, 2022 6:21 am
- Forum: Personal Investments
- Topic: Can I add 12k into a Roth IRA, in one year?
- Replies: 13
- Views: 1967
Re: Can I add 12k into a Roth IRA, in one year?
Must be a mistake on Schwab's end. You can't make 2023 contributions yet.
- Fri Dec 31, 2021 6:27 pm
- Forum: Personal Finance (Not Investing)
- Topic: Share your net worth progression
- Replies: 4273
- Views: 1072496
Re: Share your net worth progression
2021/12/31: 545,000OnLevel wrote: ↑Thu Oct 21, 2021 9:37 pm This is our invested assets, which is what I really think about. I don't include our house or our debts, because those pretty much offset.
2018: 140,000
2019: 218,000
2020: 406,000
2021: 530,000 as of 10/21
Started reading this forum in 2018 and started making out 401k and iras that hear. Promotions at work and a generous employer match have helped me increase my annual new money to 60k or 70k.
- Fri Dec 31, 2021 6:24 pm
- Forum: Investing - Theory, News & General
- Topic: Official Registration For The 2022 Boglehead Contest
- Replies: 733
- Views: 41558
- Mon Nov 01, 2021 9:43 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard.com outage?
- Replies: 12
- Views: 1406
Re: Vanguard.com outage?
I think it was sarcasm.pokebowl wrote: ↑Mon Nov 01, 2021 9:39 amThis is silly, as a customer you would want your brokerage services to be there when you need to use them. Its the main point of having a brokerage. Acknowledging that a service is unavailable and pointing the finger at those who wish to use it, is an interesting world view to say the least.
- Thu Oct 21, 2021 9:37 pm
- Forum: Personal Finance (Not Investing)
- Topic: Share your net worth progression
- Replies: 4273
- Views: 1072496
Re: Share your net worth progression
This is our invested assets, which is what I really think about. I don't include our house or our debts, because those pretty much offset.
2018: 140,000
2019: 218,000
2020: 406,000
2021: 530,000 as of 10/21
Started reading this forum in 2018 and started making out 401k and iras that hear. Promotions at work and a generous employer match have helped me increase my annual new money to 60k or 70k.
2018: 140,000
2019: 218,000
2020: 406,000
2021: 530,000 as of 10/21
Started reading this forum in 2018 and started making out 401k and iras that hear. Promotions at work and a generous employer match have helped me increase my annual new money to 60k or 70k.
- Sun Oct 10, 2021 12:05 am
- Forum: Personal Consumer Issues
- Topic: Things to do in San Antonio, TX
- Replies: 58
- Views: 5436
Re: Things to do in San Antonio, TX
Riverwalk is overrated, imo. The Pearl, which is on the same river but north of downtown is a much more pleasant and less of a tourist trap.
- Sun Oct 10, 2021 12:04 am
- Forum: Personal Consumer Issues
- Topic: Things to do in San Antonio, TX
- Replies: 58
- Views: 5436
Re: Things to do in San Antonio, TX
Go hang out at the Alon Market HEB.
- Sat Mar 20, 2021 8:14 pm
- Forum: Personal Investments
- Topic: Best way to invest $1000/month
- Replies: 9
- Views: 2402
Re: Best way to invest $1000/month
Make sure you max out that HSA too.
- Mon Dec 07, 2020 4:04 pm
- Forum: Investing - Theory, News & General
- Topic: Is it really worthwhile to save HSA funds instead of using them now?
- Replies: 104
- Views: 10613
Re: Is it really worthwhile to save HSA funds instead of using them now?
I am lucky that for our family we've been able to pay all medical costs using HSA funds while managing to still put 3 - 4k away each year to invest.
- Wed Nov 25, 2020 4:21 pm
- Forum: Personal Investments
- Topic: Is after tax 401k worth it?
- Replies: 27
- Views: 2753
Re: Is after tax 401k worth it?
Same. I've been doing the mega backdoor roth for a couple years now, and didn't know that it got tested separately. When can I know the after-taxoney I put in is safe to rollover, January 1st of following year?SnowBog wrote: ↑Wed Nov 25, 2020 3:53 pmThanks for the extra details! I had no idea after-tax was tested separately.Pigeye Brewster wrote: ↑Wed Nov 25, 2020 9:53 am To be clear, it's not just overall employee participation in the plan that matters. It is non-HCE employee participation in after-tax contributions. After-tax contributions are tested on a standalone basis.
I guess I was even more lucky that I realized! While I've only been doing Mega Backdoor the past few years, I've never heard of this as an issue in my employer...
It truly is better to be lucky than good sometimes!
- Sun Nov 08, 2020 5:11 am
- Forum: Personal Finance (Not Investing)
- Topic: What is the best 2% cash back credit card which is NOT the Citi Double Cash?
- Replies: 84
- Views: 12279
- Thu Nov 05, 2020 8:52 am
- Forum: Personal Investments
- Topic: TOA from HSA Bank to Fidelity taking forever
- Replies: 10
- Views: 716
TOA from HSA Bank to Fidelity taking forever
Has anyone done one recently? I'm just transferring cash. Request was submitted online more than a month ago, money was pulled out of HSA Bank like two weeks ago, yet it's still not in the Fidelity account.
In the past, these used to take 2-weeks from request submission to money being in the Fidelity HSA.
In the past, these used to take 2-weeks from request submission to money being in the Fidelity HSA.
- Sun Sep 13, 2020 1:52 pm
- Forum: Personal Investments
- Topic: How much are your 529 Contributions
- Replies: 133
- Views: 11872
Re: How much are your 529 Contributions
Yes, maxing $19.5K and then putting $12K into backdoor IRA. Reasons for 529 is because if the money is contributed there, out of sight, out of mind and therefore I won't have the feeling like we have more money than we actually have since they money would be ear tagged for schooling. Also, the value of tax free growth? socialforums2019, << I won't have the feeling like we have more money than we actually have since they money would be ear tagged for schooling. >> Back to question #1. 1) How do you know that your retirement/FI is fully funded? 2) What is your annual expense? 3) What is your retirement/FI number? You cannot borrow for retirement/FI. If you are fully employed while your kids go to college, you can "cash flow" the co...
- Thu Sep 03, 2020 7:26 pm
- Forum: Investing - Theory, News & General
- Topic: Buying funds in fidelity - need to transfer money to cash account first?
- Replies: 23
- Views: 2254
Re: Buying funds in fidelity - need to transfer money to cash account first?
What annoys me is that Fidelity (and Vanguard and Schwab) won't let you specify a sweep account. I want my cash to be sitting in a municipal money market, not a taxable one. However, I can deal with shuffling funds so it is not a big deal. What is annoying about Fidelity is that If I want to purchase 200 shares of <whatever>, I first have to move cash from my Fidelity municipal money market to my sweep account before it will let me place the order. Then I have to move the excess funds back into the municipal money market. Vanguard allows me to place the order, and after it executes, I can move the exact amount of money that is needed to cover the order into the sweep account. I don't trade often, but when I do I am reminded why I prefer Va...
- Tue Jun 02, 2020 10:15 am
- Forum: Personal Investments
- Topic: 401k: to rollover or stay put? expense ratios of funds
- Replies: 9
- Views: 524
Re: 401k: to rollover or stay put? expense ratios of funds
What do you gain from going to Etrade that you wouldn't get at Fidelity?
- Fri Apr 03, 2020 5:49 pm
- Forum: Personal Investments
- Topic: Why Do So Many Recommend 70% - 100% Stocks?
- Replies: 167
- Views: 11656
Re: Why Do So Many Recommend 70% - 100% Stocks?
Where are you getting those numbers?
- Wed Mar 11, 2020 12:30 am
- Forum: Personal Investments
- Topic: HSA 60-day Rollover One-Year timing
- Replies: 4
- Views: 491
Re: HSA 60-day Rollover One-Year timing
Got it. Thank you!Alan S. wrote: ↑Tue Mar 10, 2020 3:51 pm Per Sec 223(f)(5)(B), the one year period is measured from the date of receipt of the distribution that was rolled over or is to be rolled over. This is the same measurement period as an IRA rollover, although Pub 969 fails to state how the period is measured. In other words, the date of the rollover does not matter for this rule, only the date the distribution was received.
If you received the prior distribution on 3/14/2019 which was then rolled over, then you can rollover a current distribution received on 3/15/2020 or later. You can deposit the current distribution up to 60 days from the date received. Ignore the date the 2019 distribution was actually rolled over.
- Tue Mar 10, 2020 2:09 pm
- Forum: Personal Investments
- Topic: HSA 60-day Rollover One-Year timing
- Replies: 4
- Views: 491
HSA 60-day Rollover One-Year timing
I understand that 60 day HSA rollovers can only be done once per one-yar period.
Which transactions matter for purposes of determining the 1-year period? Withdrawal from initial HSA, or deposit into the one the funds are rolled into?
For specifics, I did my first ever 60-day HSA rollover last year like this:
3/14/2019: withdrawal from HSA bank
3/21/2019: deposit into Fidelity HSA account
In 2020, when can I initiate a withdrawal from HSA bank to deposit into Fidelity, 3/15/2020, or 3/22/2020?
If the answer is 3/15/2020, can I deposit into Fidelity right away, or do I need to wait until 3/22/2020?
Thank you for your help!
Which transactions matter for purposes of determining the 1-year period? Withdrawal from initial HSA, or deposit into the one the funds are rolled into?
For specifics, I did my first ever 60-day HSA rollover last year like this:
3/14/2019: withdrawal from HSA bank
3/21/2019: deposit into Fidelity HSA account
In 2020, when can I initiate a withdrawal from HSA bank to deposit into Fidelity, 3/15/2020, or 3/22/2020?
If the answer is 3/15/2020, can I deposit into Fidelity right away, or do I need to wait until 3/22/2020?
Thank you for your help!
- Tue Oct 01, 2019 2:25 pm
- Forum: Investing - Theory, News & General
- Topic: Charles Schwab (SCHW) Eliminating Commissions for Stocks, ETFs and Options Listed on U.S. or Canadian Exchanges
- Replies: 107
- Views: 14129
Re: Charles Schwab (SCHW) Eliminating Commissions for Stocks, ETFs and Options Listed on U.S. or Canadian Exchanges
I really hope Fidelity follows suit. They are my favorite.
- Wed Jul 31, 2019 7:15 am
- Forum: Personal Finance (Not Investing)
- Topic: Unsure if my tIRA deductible
- Replies: 3
- Views: 321
- Wed Jul 31, 2019 7:14 am
- Forum: Personal Finance (Not Investing)
- Topic: Unsure if my tIRA deductible
- Replies: 3
- Views: 321
Re: Unsure if my tIRA deductible
Deduction phase-out starts at 64k MAGI for single, so you'd be ok.
- Fri Jul 26, 2019 9:04 am
- Forum: Investing - Theory, News & General
- Topic: Investing in Vanguard funds via Fidelity
- Replies: 47
- Views: 11865
Re: Investing in Vanguard funds via Fidelity
Me too. I don't see the point in paying extra to hold VG funds with Fidelity, when Fidelity clearly offers equivalent alternatives that don't cost extra.
- Thu Jul 11, 2019 3:46 pm
- Forum: Personal Finance (Not Investing)
- Topic: anyone here use BillPay?
- Replies: 22
- Views: 1884
- Mon Jun 17, 2019 9:34 am
- Forum: Personal Investments
- Topic: Alternative to $3,000 minimums at Vanguard
- Replies: 13
- Views: 2694
Re: Alternative to $3,000 minimums at Vanguard
Fidelity offers funds similar to the Vanguard funds you're thinking about and has no minimums.
- Thu Jun 13, 2019 3:11 am
- Forum: Personal Consumer Issues
- Topic: Retired at 35 and have no friends :(
- Replies: 113
- Views: 15846
Re: Retired at 35 and have no friends :(
Sounds to me like OP should go back to work.
- Sun Jun 09, 2019 7:12 am
- Forum: Personal Investments
- Topic: First Post! Portfolio Review Needed
- Replies: 37
- Views: 5123
Re: First Post! Portfolio Review Needed
OP, you probably make too much to be eligible to do a regular roth IRA, but have you considered a backdoor roth? That's $12k (for you and spouse) that you guys can put in an account that'll grow tax-free.
- Tue May 21, 2019 9:02 am
- Forum: Personal Investments
- Topic: Moving an HSA from Optum to Vanguard
- Replies: 11
- Views: 1543
Re: Moving an HSA from Optum to Vanguard
I dont think Vanguard offres HSAs. Fidelity does, though.
- Sat Mar 30, 2019 11:34 am
- Forum: Personal Finance (Not Investing)
- Topic: Keeping a stash of vacation days as unemployment "insurance"
- Replies: 70
- Views: 6860
Re: Keeping a stash of vacation days as unemployment "insurance"
I do it. Currently have about 5 weeks worth of vacation. My goal is to get it to 8 weeks and maintain it around that. My only worry is that company switches to one of those fake "unlimited" vacation plans. I'm not sure what would happen to accrued PTO in that case. Do I lose it all?
- Wed Mar 27, 2019 8:56 am
- Forum: Personal Investments
- Topic: Fidelity Index Fund List - Duplicates?
- Replies: 9
- Views: 2265
Re: Fidelity Index Fund List - Duplicates?
FSKAX gives you the total US market, FTIHX gives you the total international.
- Wed Mar 27, 2019 8:34 am
- Forum: Investing - Theory, News & General
- Topic: I hate bonds
- Replies: 116
- Views: 17683
Re: I hate bonds
Right now I have a tough time investing in bonds even though retirement is nearby. I have a tough time believing bonds will provide any real return over the next decade or two. I know they are supposed to reduce risk but investing in something that may not even keep up with inflation seems like a bad idea. Although since I don't think we will see inflation any time soon (I don't believe the economy is that good) maybe you can eek out a small positive real return. I've been wrestling with this problem for a while and there just isn't any way I can put 40% into bonds at this point. I'd rather keep a chunk of it in CDs and at least know the principal won't go down but its still not providing any real return. Aren't CD's bonds? Do you just not...
- Mon Mar 18, 2019 6:09 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
- Replies: 645
- Views: 92634
Re: Vanguard is Discontinuing their VanguardAdvantage Accounts
... Fidelity Bill Pay: Ours is a joint account at Fidelity with each of us having a unique user name and PW for the same account. If I logon and send a bill pay check it only has my name on it; my wife's name doesn't show. I called Fidelity and after they checked with the outside bill pay vendor, United Missouri Bank, confirmed only one name gets printed. They suggested that if my wife logged on and sent a bill pay check it would use her name, but weren't positive. She's testing that now. They offered that we could always put her name in the note feature. ... Update: We got the bill pay check today. Fidelity was wrong. My wife logged into our joint account using her ID and PW. She sent herself a bill pay check. It has only my name as the p...
- Fri Mar 15, 2019 4:47 pm
- Forum: Investing - Theory, News & General
- Topic: [Fidelity Health Savings Account Mega-Thread]
- Replies: 1252
- Views: 192506
Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th
No worries! Lesson learned for me! Do you mind sharing what additional documentation did they required?jeffyscott wrote: ↑Fri Mar 15, 2019 4:23 pmSorry, I could've warned you of that.
I didn't have your fiasco, but after having been told I could make the deposit for my HSA transfer at the local branch, found out that was not so upon arrival there. They offered to mail the check in for me, which they did. But then Fidelity subsequently returned the check to me, as they required additional documentation.
- Fri Mar 15, 2019 4:15 pm
- Forum: Investing - Theory, News & General
- Topic: [Fidelity Health Savings Account Mega-Thread]
- Replies: 1252
- Views: 192506
Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th
I'm about to do a 60-day rollover. Does anyone have experience with bringing the check to a Fidelity branch instead of snail-mailing it? Interesting update: Called local office to ask if they can handle 60-day rollover check: guy in the phone seems baffled, puts me on hold to check and comes back to tell me I can only do it once in a lifetime. I think "ok, he probably thinks it's from an IRA, but as long as they can handle HSA deposits I'm good. I show up to the office with my check and deposit slip identifying the hsa account and that it's a 60-day rollover. A lady at the front desk takes the deposit, processed it and gives me a receipt. I have a weird feeling because the lady didn't seem as surprised as the guy I spoke to on the pho...
- Thu Mar 14, 2019 9:44 pm
- Forum: Investing - Theory, News & General
- Topic: [Fidelity Health Savings Account Mega-Thread]
- Replies: 1252
- Views: 192506
Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th
I'm about to do a 60-day rollover. Does anyone have experience with bringing the check to a Fidelity branch instead of snail-mailing it?
- Wed Mar 13, 2019 12:45 pm
- Forum: Investing - Theory, News & General
- Topic: [Fidelity Health Savings Account Mega-Thread]
- Replies: 1252
- Views: 192506
Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th
EDIT: Actually I can't do this BECAUSE HSA BANK SUCKS! $2500 daily withdrawal limit - what a scam It sounds like you know this from your post, but in case you or others were not aware of it. HSA accounts have a separate, but same rule as IRAs that you can only do one indirect rollover per 12 month period. Do NOT attempt more than one rollover because of this $2500 limit, because the second and subsequent withdrawals will be considered non-qualified distributions not eligible for rollover and subject income taxes and the 20% penalty. Would multiple withdrawals then deposit the total amount within 60 days count as one rollover? There is a thorough discussion/debate/review-of-relevant-IRS-pronouncements on this "what about multiple withd...
- Wed Mar 13, 2019 4:01 am
- Forum: Investing - Theory, News & General
- Topic: [Fidelity Health Savings Account Mega-Thread]
- Replies: 1252
- Views: 192506
Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Would multiple withdrawals then deposit the total amount within 60 days count as one rollover?Spirit Rider wrote: ↑Tue Mar 12, 2019 3:04 pmIt sounds like you know this from your post, but in case you or others were not aware of it. HSA accounts have a separate, but same rule as IRAs that you can only do one indirect rollover per 12 month period.
Do NOT attempt more than one rollover because of this $2500 limit, because the second and subsequent withdrawals will be considered non-qualified distributions not eligible for rollover and subject income taxes and the 20% penalty.
- Tue Feb 19, 2019 11:41 am
- Forum: Personal Finance (Not Investing)
- Topic: USAA Auto Premiums Up Exactly 10% in 3 Consecutive Renewals?
- Replies: 46
- Views: 6731
Re: USAA Auto Premiums Up Exactly 10% in 3 Consecutive Renewals?
It might be a coincidence in your state. I don't think I've ever seen a trend like that in my rates from them. On the exactly 10% increases: it might be case where they increased their overall rates by more than 10%, but limit the disruption on currentcustomer, they limit the increase to 10% with each renewal until the full rates come into effect. The OP is seeing a 10% rate increase at every renewal. If it were an overall rate increase that's being capped, then it would be increasing by 10% at every other renewal. Auto insurance companies usually change their rates once a year, but their policies renew every 6 months. Sorry didn't see this until now and felt I should respond. Frequency of rate changes has nothing to do with rate capping. ...
- Tue Jan 22, 2019 5:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: USAA Auto Premiums Up Exactly 10% in 3 Consecutive Renewals?
- Replies: 46
- Views: 6731
Re: USAA Auto Premiums Up Exactly 10% in 3 Consecutive Renewals?
On the exactly 10% increases: it might be case where they increased their overall rates by more than 10%, but limit the disruption on currentcustomer, they limit the increase to 10% with each renewal until the full rates come into effect.
Unfortunately, insurance is a game of averages, and it's always too expensive until you have a claim. It's always good to shop around.
Unfortunately, insurance is a game of averages, and it's always too expensive until you have a claim. It's always good to shop around.
- Tue Jan 01, 2019 5:20 pm
- Forum: Investing - Theory, News & General
- Topic: REGISTRATION FOR 2019 BOGLEHEAD CONTEST [Entry deadline has passed]
- Replies: 701
- Views: 35047
- Thu Dec 27, 2018 9:53 pm
- Forum: Investing - Theory, News & General
- Topic: What have you learned this year
- Replies: 90
- Views: 9637
Re: What have you learned this year
I thought I was financially savvy before I jointed this forum late last year, but have learned so much since I joined that I wish I found it sooner!
Things I learned or understand better thanks to this forum:
Things I learned or understand better thanks to this forum:
- Mega backdoor roth
Backdoor roth and the fact that I pretty much can't keep money in other tIRA's if I ever want to do it
Three-fund portfolio
Why Vanguard Index funds are the way to go for equity in taxable brokerage
Tax loss harvesting
How to use extended market and s&p 500 to approximate total stock market
- Fidelity Zero funds
Fidelity HSA
- Sun Dec 16, 2018 7:23 am
- Forum: Personal Investments
- Topic: Deductible trad IRA contribution and Conversion to Roth in the same year
- Replies: 5
- Views: 693
Re: Deductible trad IRA contribution and Conversion to Roth in the same year
Thanks!kaneohe wrote: ↑Sat Dec 15, 2018 10:04 pm Contribute 1K to TIRA. Value decreases to near 0 (extreme example)
1)Recharacterize to Roth. Now have near 0 in Roth.
2)Leave in TIRA. Then convert. Now have near 0 in Roth.
Pay 25% of conversion in taxes = near 0 x 25%
Deduct 1K contribution = worth 0.25K
The net benefit of this combo is nearly 0.25K
2) is better than 1) by nearly 0.25K. This is extreme example so benefit won't be as large.
25% marginal tax rate assumed
- Sun Dec 16, 2018 7:22 am
- Forum: Personal Investments
- Topic: Deductible trad IRA contribution and Conversion to Roth in the same year
- Replies: 5
- Views: 693
- Sat Dec 15, 2018 9:44 pm
- Forum: Personal Investments
- Topic: Deductible trad IRA contribution and Conversion to Roth in the same year
- Replies: 5
- Views: 693
Re: Deductible trad IRA contribution and Conversion to Roth in the same year
Not a lot, honestly. I'm also motivated by laziness: want to avoid the extra step of the recharacterization.krow36 wrote: ↑Sat Dec 15, 2018 8:28 pm It seems to me that the 1k you contributed to your tIRA will just be added to the tIRA's balance. I think you can recharacterize the 1k contribution, but I don't think you can convert that particular 1k contribution to a Roth IRA. How much do you think you will save in taxes if you use option 2?