Search found 19 matches

by PhrugalPhan
Thu Jan 07, 2021 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: 2020: Lessons learned
Replies: 237
Views: 15695

Re: 2020: Lessons learned

That I would miss working out so much in the community gym with my fitness companions. 🏋️💪🏊👟🏅 Oh my, that is the one thing I miss from going in to the office. I have done lunchtime jogs since working at home but its not nearly the same. I just signed up at a local gym today and did my first workout...
by PhrugalPhan
Thu Dec 31, 2020 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Pretax vs Roth Contributions
Replies: 40
Views: 1905

Re: Pretax vs Roth Contributions

Just something that hasn't been pointed out... if the wife has a 457b, is there a pension on the horizon for her? Quite often, though not always, 457b participants get one. I know a pension was never mentioned, but if there is one that will majorly affect the analysis many people here are doing for ...
by PhrugalPhan
Sat Dec 26, 2020 12:51 am
Forum: Personal Investments
Topic: Roth 457 conversion timing & amount questions
Replies: 10
Views: 743

Re: Roth 457 conversion timing & amount questions

Prior to the SECURE ACT, 457b plans were unique in that in-service withdrawals/rollovers were not allowed until age 70 1/2. The SECURE ACT reduced that age to 59 1/2, but only if plan has adopted that change and many have not. Similarly, while a 457b plan can support in-plan Roth Rollovers (IRRs) m...
by PhrugalPhan
Tue Dec 22, 2020 3:31 pm
Forum: Personal Investments
Topic: Roth 457 conversion timing & amount questions
Replies: 10
Views: 743

Re: Roth 457 conversion timing & amount questions

As far as #1, I think it's going to make sense for you to start converting this year or next if you're able. Based on my modeling: • 2020-2025: you should perform Roth conversions such that your ordinary income fills up the 24% bracket. Perhaps just slightly into the 32% bracket in 2022 and 2023 wh...
by PhrugalPhan
Mon Dec 21, 2020 10:45 pm
Forum: Personal Investments
Topic: Roth 457 conversion timing & amount questions
Replies: 10
Views: 743

Re: Roth 457 conversion timing & amount questions

OP I am 60 single male, in VHOL and 24% bracket. I did not have cash on hand to pay for my pretax 457 to be converted to Roth 457, currently my balance sits at 1.4 million, the time to have done an in service Roth Conversion was March 23, 2020, when the market had -30% pullback. On that day my pret...
by PhrugalPhan
Mon Dec 21, 2020 1:07 pm
Forum: Personal Investments
Topic: Roth 457 conversion timing & amount questions
Replies: 10
Views: 743

Re: Roth 457 conversion timing & amount questions

Prior to the SECURE ACT, 457b plans were unique in that in-service withdrawals/rollovers were not allowed until age 70 1/2. The SECURE ACT reduced that age to 59 1/2, but only if plan has adopted that change and many have not. Similarly, while a 457b plan can support in-plan Roth Rollovers (IRRs) m...
by PhrugalPhan
Mon Dec 21, 2020 12:05 pm
Forum: Personal Investments
Topic: Roth 457 conversion timing & amount questions
Replies: 10
Views: 743

Roth 457 conversion timing & amount questions

Hello, I am two years out from being eligible for a "full" pension where I work (local government), where "Full" means unreduced. I also have a moderately large 457b account and I have a goal of converting as much of my traditional 457 plan to Roth as makes sense. Due to my pensi...
by PhrugalPhan
Fri Dec 11, 2020 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Talk me out of pre-tax savings! (RMDs/contrib types)
Replies: 29
Views: 1493

Re: Talk me out of pre-tax savings! (RMDs/contrib types)

My situation is somewhat similar and I came to this conclusion a few years ago. I have turned up my Roth 457 to 95% of my contributions for the past three years. My analysis for going forward is I will have to slip into the 24% marginal bracket in the last two years of employment due to Roth contri...
by PhrugalPhan
Fri Dec 11, 2020 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Talk me out of pre-tax savings! (RMDs/contrib types)
Replies: 29
Views: 1493

Re: Talk me out of pre-tax savings! (RMDs/contrib types)

My situation is somewhat similar and I came to this conclusion a few years ago. I have turned up my Roth 457 to 95% of my contributions for the past three years. My analysis for going forward is I will have to slip into the 24% marginal bracket in the last two years of employment due to Roth contrib...
by PhrugalPhan
Thu Nov 19, 2020 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Take the cash or the free dinner?
Replies: 117
Views: 13208

Re: Take the cash or the free dinner?

This ain't work. It's being entertained. Most of us pay to be entertained. If somebody wants to pay me to entertain me, then be my guest! :sharebeer Caveat emptor. If it sounds too good to be true... Whatever floats your boat, but I wouldn't waste my time on this type of "entertainment", ...
by PhrugalPhan
Tue Sep 08, 2020 3:12 pm
Forum: Personal Investments
Topic: ROTH vs. Traditional - How Did You Choose?
Replies: 34
Views: 2338

Re: ROTH vs. Traditional - How Did You Choose?

At first I did 100% traditional since I didn't have a choice. Instead I split between retirement and extra contributions to my mortgage. When that was gone was about the time Roth was added as an option for my retirement (457). So I started at 1/3 Roth. Over time I upped it to 50/50. Then one day at...
by PhrugalPhan
Thu Jan 23, 2020 4:37 pm
Forum: Personal Investments
Topic: Pension Plus 457 Plan
Replies: 27
Views: 2376

Re: Pension Plus 457 Plan

It looks like the Alabama 457 b plan has a Roth option. Given you have a decent 457b balance and you should now have a lower income with your wife retired, I would recommend contributing to the Roth option of the 457b plan. If your pensions are as good as you say, it is very likely when RMDs hit you...
by PhrugalPhan
Thu Nov 21, 2019 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA income level for 2020
Replies: 10
Views: 1758

Re: IRMAA income level for 2020

So I guess if a person were to be doing aggressive Roth conversions (maybe up to $160,000), one would just view the higher cost for IRMAA as an additional tax? That's certainly how I will be viewing it (3 years 'til full pension for me). I will be trying to convert up to where IRMAA kicks in which ...
by PhrugalPhan
Sat Feb 09, 2019 7:32 pm
Forum: Investing - Theory, News & General
Topic: A Roth In Plan conversion is now available to me.
Replies: 5
Views: 911

Re: A Roth In Plan conversion is now available to me.

Thanks for the replies (and sorry about not responding sooner). Re. IRMAA: I knew about this tax and certainly will be taking this into account. I will be eligible to retire in 4 years at 60 y.o., so I won't have much time to convert without that penalty. This may be the biggest reason to increase m...
by PhrugalPhan
Sat Jan 19, 2019 7:36 pm
Forum: Investing - Theory, News & General
Topic: A Roth In Plan conversion is now available to me.
Replies: 5
Views: 911

A Roth In Plan conversion is now available to me.

I just found out my 457 plan will start offering In Plan Roth conversions this year. To say I am surprised is an understatement as I keep abreast of upcoming changes in the plan and didn't see anything related to this. I'd like to ask a question or two here about this possibility. A little / lot of ...
by PhrugalPhan
Thu Oct 18, 2018 8:44 am
Forum: Personal Investments
Topic: New to HSAs need help - HSA Bank (TD Ameritrade) + Cigna
Replies: 11
Views: 1167

Re: New to HSAs need help - HSA Bank (TD Ameritrade) + Cigna

Are you sure that there is a fee for using HSA Bank through your insurer? There is if you establish an account directly through HSA Bank, but for instance, there are no fees associated with my HSA Bank account through my insurer. So I usually transfer all but $100 of contributions from HSA Bank to ...
by PhrugalPhan
Sat Sep 29, 2018 9:49 pm
Forum: Personal Consumer Issues
Topic: Good flip flops
Replies: 46
Views: 3958

Re: Good flip flops

I am not a sandal expert, but I love my Okabashi sandals. Maybe not high end, but they give good support, feel good (to me), last long, and you can get them relatively cheap. They are my go to sandals for 15 years now. (Check CVS's in the fall for 75% off summer gear sales. Okabashi's go on sale the...
by PhrugalPhan
Thu Jul 19, 2018 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: What is your Take Home Pay / Gross Pay ratio?
Replies: 89
Views: 9213

Re: What is your Take Home Pay / Gross Pay ratio?

I have a much different take home Jan through July than the remainder of the year. This is due to maxing out my 457b + catch up by the end of July. The remainder of the year there is no 457 deductions. ( I can do this due to no matching dollars - we have a pension instead). For Jan. - July, the take...
by PhrugalPhan
Thu Apr 05, 2018 11:43 am
Forum: Personal Finance (Not Investing)
Topic: $6.55 Northrup Grumman 401k class action settlement
Replies: 37
Views: 8386

Re: $6.55 Northrup Grumman 401k class action settlement

I got a check for $6.55 today. What's worse, unless I roll this over into an IRA, they will send a 1099-R and we will have to treat this as income for 2018 taxes. I just sent my settlement check to my 457 plan yesterday for $7.06. Thankfully where I work they have a someone from the plan administra...