Search found 302 matches

by sawdust60
Mon Jun 15, 2020 8:05 pm
Forum: Personal Consumer Issues
Topic: Replace my 4 Runner? Update on Repair Post 47
Replies: 62
Views: 3625

Re: I May Need to Replace my 2005 4 Runner :(

Take a test drive in a new 4Runner Limited AWD. You might find that the exterior look is less of an issue.
by sawdust60
Wed Jun 10, 2020 1:26 am
Forum: Personal Finance (Not Investing)
Topic: form 8606 blues
Replies: 64
Views: 3484

Re: form 8606 blues

Some of the data for 8606 is supposed to come from Form 5498. 5498 is always issued late. 2018 was dated 5/20/2019, and I haven't seen the one for 2019. For me, there is nothing on 8606 that I don't know on December 31, so I send it with my return (now that I know of the requirement). I did have a f...
by sawdust60
Wed Jun 03, 2020 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA Thresholds in 2020
Replies: 43
Views: 8098

Re: IRMAA Thresholds in 2020

Sawdust, As I read your original response and follow up, I am still curious about the interaction between 2018 income and 2020. Are you suggesting that since you had a higher income in 2018, if you keep your 2020 income below the 150k threshold, you will get some additional tax credit/stimulus? But...
by sawdust60
Wed May 27, 2020 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA Thresholds in 2020
Replies: 43
Views: 8098

Re: IRMAA Thresholds in 2020

-- consider the CARES act when working on your 2020 AGI: Depending on your income level and whether you received the full stimulus payment, the 22% marginal tax rate may be 5% higher for some income above 150k MFJ. I will do less Roth conversions in 2020, to capture the full tax credit by limiting ...
by sawdust60
Sat May 23, 2020 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA Thresholds in 2020
Replies: 43
Views: 8098

Re: IRMAA Thresholds in 2020

-- consider the CARES act when working on your 2020 AGI: Depending on your income level and whether you received the full stimulus payment, the 22% marginal tax rate may be 5% higher for some income above 150k MFJ. I will do less Roth conversions in 2020, to capture the full tax credit by limiting 2...
by sawdust60
Thu May 14, 2020 11:49 pm
Forum: Personal Investments
Topic: CARES Act, 403b withdrawals, and Roth conversions
Replies: 8
Views: 569

Re: CARES Act, 403b withdrawals, and Roth conversions

Depending on your income level and whether you received the full stimulus payment, the 22% marginal tax rate may be 5% higher for some income above 150k MFJ.

I will do less Roth conversions in 2020, to capture the full tax credit by limiting 2020 AGI to 150k MFJ. (see prior post)
by sawdust60
Wed May 13, 2020 1:03 am
Forum: Personal Investments
Topic: Limit 2020 Roth conversion - 22% becomes 27% with Stimulus phase-out
Replies: 5
Views: 955

Re: Limit 2020 Roth conversion - 22% becomes 27% with Stimulus phase-out

So, am I understanding correctly? If we are estimating a $150k AGI, and plan to convert - in addition - $25k in 2020 - we will pay 24.5% on that $25k, instead of the 22% on the marginal tax tables? It is not that the rate is higher, but the marginal rate can be higher if the additional AGI results ...
by sawdust60
Tue May 12, 2020 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Get My Payment up and running
Replies: 369
Views: 25013

Re: IRS Get My Payment up and running

My parents in-law are have a problem getting in to the Get my Payment site They are receiving Social security (to their bank account) but also have other income and file taxes each year, they always owe money (and hence have never given the IRS their bank account information) When entering the info...
by sawdust60
Tue May 12, 2020 8:54 am
Forum: Personal Investments
Topic: Limit 2020 Roth conversion - 22% becomes 27% with Stimulus phase-out
Replies: 5
Views: 955

Re: Limit 2020 Roth conversion - 22% becomes 27% with Stimulus phase-out

Thanks for pointing out how the cost to convert in 2020 is dependent on how much is left on the table. At 150k AGI, I could get the full amount left on the table. From that point, the 5% reduction exists until 2020 AGI exceeds 2018 AGI (presumably used to calculate my advance refund stimulus payment...
by sawdust60
Tue May 12, 2020 1:04 am
Forum: Personal Investments
Topic: Limit 2020 Roth conversion - 22% becomes 27% with Stimulus phase-out
Replies: 5
Views: 955

Limit 2020 Roth conversion - 22% becomes 27% with Stimulus phase-out

I had concerns that I had effectively paid 27% on part of my 2018 Roth conversion, as my stimulus payment fell in the phase-out range when calculated from my 2018 AGI. But the stimulus payment is an advance refund of a 2020 tax credit. So the reduction in my stimulus payment will be made up when I f...
by sawdust60
Sat May 09, 2020 6:28 pm
Forum: Investing - Theory, News & General
Topic: Best fixed income options
Replies: 30
Views: 2927

Re: Best fixed income options

So looking at the math. 5.7% . . . $1,235/month 1.5% . . . $ 425/month Deficit . . . $ 810/month One-third of deficit: $270/month You didn't mention other assets of MIL, but it seems the $260k trust was designed to preserve the principle for the eventual benefit of the MIL's children. This sounds li...
by sawdust60
Sat May 09, 2020 11:07 am
Forum: Personal Finance (Not Investing)
Topic: IRS Get My Payment up and running
Replies: 369
Views: 25013

Re: IRS Get My Payment up and running

Same thing happened for the information I entered successfully for my mom. The check arrived one day before it was to have been mailed. We entered our information and received ours via deposit a week later than hers. Any idea the explanation for it? Previous to today, each day it said it would DD t...
by sawdust60
Thu May 07, 2020 1:38 am
Forum: Personal Finance (Not Investing)
Topic: Pay Sibling's Undergrad or Refinance Parent's Mortgage
Replies: 52
Views: 3300

Re: Pay Sibling's Undergrad or Refinance Parent's Mortgage

You might consider a hybrid approach. You and parents contribute, plus some loans. What amount of debt is reasonable at the end of 4 years? Some employers are offering student loan repayment as an employee benefit. And you can build a reserve fund to help with loan repayments, should other assistanc...
by sawdust60
Wed May 06, 2020 1:41 am
Forum: Personal Finance (Not Investing)
Topic: Buying Home - How Near Parents?
Replies: 30
Views: 3016

Re: Buying Home - How Near Parents?

Especially when both parents work, having grandparents close can be convenient. You mentioned moving close to them, but perhaps there is an opportunity for them to also move. If there are better amenities for you, perhaps it would also be a good location for the grandparents. In some developments th...
by sawdust60
Thu Apr 30, 2020 12:40 pm
Forum: Personal Consumer Issues
Topic: Highlander or RAV4
Replies: 57
Views: 3365

Re: Highlander or RAV4

Specs show that some models of RAV4 do not have the stop/start engine. That undesirable feature is becoming difficult to avoid. Be careful, as the RAV4 LE FWD may not have it, but AWD model does.
by sawdust60
Thu Apr 30, 2020 11:32 am
Forum: Personal Investments
Topic: Considering starting Roth Conversions???
Replies: 11
Views: 1056

Re: Considering starting Roth Conversions???

Do some analysis; perhaps you can become comfortable with a plan to move towards Roth. If you see that in every future year, your marginal tax rate is 24% or higher, you might convert some this year. Next year, redo the analysis. If tax rates are the same, the benefit of Roth is that you are effecti...
by sawdust60
Thu Apr 30, 2020 10:25 am
Forum: Personal Finance (Not Investing)
Topic: IRS Get My Payment up and running
Replies: 369
Views: 25013

Re: IRS Get My Payment up and running

A couple of days after bank information was accepted, I checked for a payment date. One of the info links said that payment date would be available on Saturday, if bank information was accepted by noon on Tuesday. Otherwise, a week from Saturday.
by sawdust60
Mon Apr 27, 2020 1:09 am
Forum: Personal Finance (Not Investing)
Topic: IRS Get My Payment up and running
Replies: 369
Views: 25013

Re: IRS Get My Payment up and running

Still says records don't match for me. I tried to create an account to view my tax account, hoping that that might clue me in to what IRS record is wrong. Instead the IRS tax account creation webpage told me, "A condtion has been identified preventing your acess to IRS online services." I believe t...
by sawdust60
Sat Apr 25, 2020 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Take Social Security now, at 66, during Corona-virus?
Replies: 61
Views: 5009

Re: Take Social Security now, at 66, during Corona-virus?

66 is a good age to compare and understand the difference vs. waiting to age 70. Keep in mind that with SS being fairly actuarial neutral, you are mostly taking a bet on your longevity and your investment returns. (Except that there is added benefit for a surviving spouse.) Also note that the SS cal...
by sawdust60
Sat Apr 25, 2020 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Convert to Roth at Top Tax Bracket?
Replies: 35
Views: 2513

Re: Convert to Roth at Top Tax Bracket?

Do some modeling with your numbers, to determine when some Roth conversions make sense. Spread Roth conversions over multiple years to avoid top tax rates. And IRA savings can be taxed at lower rates. Qualified charitable distributions can satisfy RMD and result in zero tax. Years with high medical ...
by sawdust60
Fri Apr 24, 2020 1:57 am
Forum: Personal Consumer Issues
Topic: Replacement for 4Runner
Replies: 70
Views: 4229

Re: Replacement for 4Runner

I had heard about the way the sunroof reduces headroom. But with the adjustments available on the power seats, it is not even close to being a problem for us. I was not aware that a sunroof was available with cloth seating. I have a sunroof because the full-time AWD is only offered on the Limited (w...
by sawdust60
Fri Mar 13, 2020 8:33 am
Forum: Investing - Theory, News & General
Topic: Vanguard counting Roth conversions as RMD!
Replies: 20
Views: 1372

Re: Vanguard counting Roth conversions as RMD!

Oicuryy wrote:
Thu Mar 12, 2020 11:38 pm
Conversion prior to RMD can be done!
Thanks for the link. Multiple IRA accounts might be useful.
by sawdust60
Wed Mar 11, 2020 11:55 am
Forum: Investing - Theory, News & General
Topic: Five Ways To Make Lemonade Out Of A Lemon Market
Replies: 19
Views: 3880

Re: Five Ways To Make Lemonade Out Of A Lemon Market

It could a good time to review where you hold what. I have some MM in my Roth. But I find myself trying to time the market. Are there any restrictions on selling VTSAX in IRA and simultaneously purchasing in Roth?
by sawdust60
Tue Mar 10, 2020 2:36 pm
Forum: Personal Investments
Topic: Help! Please! [Pension vs. move to 403B]
Replies: 5
Views: 360

Re: Help! Please! [Pension vs. move to 403B]

Check the rules on social security and offsetting public pensions -- something about windfall prevention if they did not also pay SS.

Perhaps another reason for rollover or withdrawal.
by sawdust60
Wed Mar 04, 2020 1:58 pm
Forum: Investing - Theory, News & General
Topic: No bonds in retirement AA?
Replies: 55
Views: 3734

Re: No bonds in retirement AA?

Gremlins, black swans, and less stress. Why hold bonds? Why be mortgage free? The simple answer is: Risk management. Look at the question differently. If you're happy at 70/30 and at 80/20, then you have defined your trading range. When the market goes down, then rebalance to your needs. In retireme...
by sawdust60
Mon Mar 02, 2020 12:46 pm
Forum: Personal Investments
Topic: Roth conversion
Replies: 9
Views: 674

Re: Roth conversion

I also do Roth conversions late in the year, being careful to stay safely below the first IRMAA bracket. 1. I will have a good estimate of other income. 2. RMD must be complete before Roth conversions. 3. I will know if I have other funds to pay the tax or whether I want to withhold (and use a perce...
by sawdust60
Sun Mar 01, 2020 12:57 am
Forum: Personal Finance (Not Investing)
Topic: New Boglehead forum member with Pension vs. Lump Sum Choice
Replies: 13
Views: 1301

Re: New Boglehead forum member with Pension vs. Lump Sum Choice

I am not a fan of annuities, when you are effectively locking-in low interest rates. And with low interest rates, a calculated lump sum payout should be larger. (edit: yours looks good.) When looking at lump sum vs. annuity, I want to understand the implied discount rate. One way to check it is to u...
by sawdust60
Fri Feb 28, 2020 8:11 pm
Forum: Personal Investments
Topic: Taxes on Large Roth Conversions
Replies: 21
Views: 2362

Re: Taxes on Large Roth Conversions

If you don't qualify for one of the exceptions, the penalty is a fairly reasonable interest rate-based calculation. ... Is that 3% interest a year? That does seem pretty reasonable. ... When you look at the parts of the calculation, you will notice that it uses an interest rate of mostly 5%, weight...
by sawdust60
Fri Feb 28, 2020 12:19 am
Forum: Personal Investments
Topic: Taxes on Large Roth Conversions
Replies: 21
Views: 2362

Re: Taxes on Large Roth Conversions

If you don't qualify for one of the exceptions, the penalty is a fairly reasonable interest rate-based calculation. With the Form 2210 Short Method, which you can use if you pay the same amount of estimated tax on each of the four payment due dates, the underpayment penalty is calculated as if each ...
by sawdust60
Wed Feb 26, 2020 2:04 am
Forum: Personal Investments
Topic: Roth IRA for 70 year old? - Retired
Replies: 13
Views: 1134

Re: Roth IRA for 70 year old? - Retired

Some of the 246k tIRA might be converted to Roth over time. Don't let 10% and 12% tax rates go to waste. But there could be reasons that Roth conversions are not helpful, particularly at higher rates. Understand how IRA withdrawals and Roth conversions (and other non-SS income) impact the taxation o...
by sawdust60
Mon Feb 24, 2020 5:52 pm
Forum: Personal Consumer Issues
Topic: Windows 10 Performance Problem
Replies: 19
Views: 1474

Re: Windows 10 Performance Problem

I had a problem with Windows 10 and no DNS and being unable to use either wifi or ethernet. It was intermittent for a few days, and then nothing. I made numerous changes, updated drivers, restored back to Feb 16. And once it again connected, forced an update to latest features version, 1909. And the...
by sawdust60
Mon Feb 17, 2020 11:51 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI For IRMAA
Replies: 6
Views: 670

Re: MAGI For IRMAA

Leroy Jones wrote:
Mon Feb 17, 2020 9:35 pm
.. For IRMAA calculations? I know the limit this year is $174,000
...
Remember that $174,000 is the MAGI for the first bracket MFJ -- using 2018 form 1040, as the basis for 2020 IRMAA penalty/premiums.

Late in the year 2020, we will learn of the IRMAA brackets for 2019 form 1040.
by sawdust60
Sun Feb 16, 2020 5:31 pm
Forum: Investing - Theory, News & General
Topic: At what age did you begin adding bonds?
Replies: 138
Views: 7540

Re: At what age did you begin adding bonds?

If you include the value of pensions and social security, I always had bonds. I only began holding bonds in investment and retirement accounts a few years prior to early retirement. I was told that this was too aggressive, but perhaps as important is how you cover living expenses. Control your costs...
by sawdust60
Wed Feb 12, 2020 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Advice Sought: How much in Roth vs Traditional 401K
Replies: 2
Views: 375

Re: Advice Sought: How much in Roth vs Traditional 401K

It looks like you could do some modeling to define a plan. Much depends on your income, expenses, and what your plans are for utilizing the retirement savings. Unless you're expecting a marginal rate below 22% in retirement: Probably defer tax at 32% with 401k; do Roth at 24%. Watch out at age 63, w...
by sawdust60
Mon Feb 10, 2020 10:03 pm
Forum: Personal Investments
Topic: Roth Withdrawal 5 Year Rules after 59 1/2
Replies: 5
Views: 602

Re: Roth Withdrawal 5 Year Rules after 59 1/2

This table is reformatted in the wiki: User:TedSwippet/KAWill Roth Table
by sawdust60
Mon Feb 10, 2020 1:31 pm
Forum: Personal Investments
Topic: Advice on Roth Conversion
Replies: 2
Views: 410

Re: Advice on Roth Conversion

Depending on plans for making IRA withdrawals prior to RMD, it looks like you may be top-heavy in IRA vs. Roth. You can do some modeling to see if it makes sense to do Roth conversions. With pension and social security and RMD on large IRA, you could incur Medicare IRMAA penalty. Another reason to m...
by sawdust60
Fri Feb 07, 2020 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Roth, Long term care & tax avoidance
Replies: 10
Views: 972

Re: Roth, Long term care & tax avoidance

Too much Roth? Or, what is the optimal pretax amount? Years of high medical expenses and/or qualified charitable distributions can have lower marginal tax rates. So when you develop a strategy, remember to consider them. One approach is to consider the components of your income in retirement, and th...
by sawdust60
Wed Feb 05, 2020 1:45 pm
Forum: Personal Investments
Topic: Expensive Roth Conversion Mistake
Replies: 19
Views: 1707

Re: Expensive Roth Conversion Mistake

Long story short, in my calculation I forgot to include bonus income I received in January 2019 from the job I retired from in March 2018. This resulted in taxable income of $84,172, or $5,222 over the top of the 12% bracket ($78,950). Is the bonus income reported in Box 1 of a W-2? If so, that cou...
by sawdust60
Wed Feb 05, 2020 12:19 am
Forum: Personal Finance (Not Investing)
Topic: Company Stock NUA Question
Replies: 7
Views: 491

Re: Company Stock NUA Question

You might ask for a further breakout of Bucket 1, to get a listing of the shares by cost basis. It should be possible to do NUA on the low cost basis shares. This could require selling the higher cost shares within the 401k, so that only the low cost shares remain.
by sawdust60
Sun Feb 02, 2020 12:38 am
Forum: Personal Consumer Issues
Topic: Honda Ridgeline
Replies: 17
Views: 2452

Re: Honda Ridgeline

The 2020 Ridgeline has Idle Stop. 2019 and earlier models did not. 2009+ models have VCM. I don't want either of these. My Ridgeline is my daily driver, but my newest vehicle is a 4Runner Limited AWD.
by sawdust60
Sat Feb 01, 2020 2:46 am
Forum: Personal Consumer Issues
Topic: Suggestions for wife's new luxury (or non luxury) SUV???? UPDATE: Thanks everyone for your help.
Replies: 138
Views: 9369

Re: Suggestions for wife's new luxury SUV????

... I'm trying to get her into the Toyota 4Runner TRD 4wd which is outstanding but she doesn't like the look of the front end. Suggest doing a test drive in 4Runner Limited AWD. It might have the luxury features and reliability you want. It is full-time AWD. Find one with redwood-brown leather, bla...
by sawdust60
Fri Jan 31, 2020 1:36 pm
Forum: Personal Investments
Topic: RMD and Roth Conversion.
Replies: 9
Views: 1048

Re: RMD and Roth Conversion.

bump --- in case this technicality was overlooked --- As noted in the wiki: Roth IRA conversion ... 3. After you reach the calendar year you attain age 70 1/2 and must start Required Minimum Distributions (RMDs) from traditional IRAs, the full RMD must be completed before you make any Roth conversio...
by sawdust60
Tue Jan 28, 2020 2:46 am
Forum: Personal Finance (Not Investing)
Topic: Budget with high standard deviation—yet another party I to which I have arrived late!!
Replies: 12
Views: 1578

Re: Budget with high standard deviation—yet another party I to which I have arrived late!!

When working on my retirement budget, I include the maximum out of pocket medical expense amount. Whatever is not used is available as a travel budget the next year.

It isn't the category or the event, but that there are adequate amounts included for unknowns.
by sawdust60
Sun Jan 26, 2020 1:40 pm
Forum: Personal Investments
Topic: How much do I need to retire early?
Replies: 99
Views: 11751

Re: How much do I need to retire early?

At 43, you are 27 years to age 70 - max social security and for surviving spousal benefit. How many years until you have 35 years of SS earnings? How much of the IRA can be converted to Roth at low tax rates and perhaps enable ACA subsidy? And after five years, conversion can be withdrawn without pe...
by sawdust60
Sun Jan 26, 2020 2:32 am
Forum: Personal Finance (Not Investing)
Topic: Torn Between Aggressive Home Payoff or Investing
Replies: 67
Views: 6758

Re: Torn Between Aggressive Home Payoff or Investing

Your discomfort with the large mortgage might be mitigated with more savings. Select the amount you want. 60k/year for 5 years would be an additional 300k. And if you earn 2%, the cost for this flexibility is about 1% vs debt reduction. And it's not all or nothing. Increase the monthly payment for a...
by sawdust60
Thu Jan 23, 2020 11:43 am
Forum: Personal Consumer Issues
Topic: Subaru Outback engine stop/start
Replies: 94
Views: 6290

Re: Subaru Outback engine stop/start

Having recently purchased a 2019 Subaru, I have not found a permanent fix. There are several switches on the dash that affect various functions, including this one. You are right that it reverts to the automatic stop position when the engine is turned off completely. Over time, my solution has beco...
by sawdust60
Wed Jan 22, 2020 9:50 pm
Forum: Personal Investments
Topic: Withdrawal Strategy - Taxable, 401k and Roth - Early Retirement
Replies: 17
Views: 1772

Re: Withdrawal Strategy - Taxable, 401k and Roth - Early Retirement

The 401k will not be available at 57 unless you use a SEPP and that would last for 5 years. Are you familiar with that? retiredjg is right. If retiring at age 47, that's too young to qualify for penalty free 401k withdrawals (retirement at age 55+ is required). Typically one has to wait until 59.5 ...
by sawdust60
Tue Jan 21, 2020 8:13 pm
Forum: Personal Investments
Topic: Roth conversions to reduce future RMD's
Replies: 31
Views: 3031

Re: Roth conversions to reduce future RMD's

Carefully review IRMAA, because it is not based on taxable income. So while the 170k bracket looks similar to the top of the 22% tax bracket, it is not. Medicare MAGI is AGI plus tax exempt interest. Taxable income is AGI less deductions. Also, the IRMAA charges for 2022 will use 2020 income, and th...
by sawdust60
Tue Jan 21, 2020 2:32 am
Forum: Personal Investments
Topic: Pension lump sum at 55. Are there withdrawal penalties?
Replies: 5
Views: 718

Re: Pension lump sum at 55. Are there withdrawal penalties?

Perhaps this should be merged with your prior post: Lump sum rollover to IRA-are withdrawals penalized before 59 1/2? When you have Roth accounts, you could use Roth for expenses prior to 59.5. And the decision on whether to take a lump sum vs. pension would be based on other factors. If you withdra...
by sawdust60
Sun Jan 19, 2020 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: SS @ 62 as part of tax reduction strategy
Replies: 28
Views: 2719

Re: SS @ 62 as part of tax reduction strategy

... By taking SS at 62... This leaves more headroom to harvest capital gains at 0%, as long as they are under $40k, under current law. Over the 10 year time horizon before RMDs begin, one theoretically would be able to clear $400k in gains, only paying state taxes on them over that span. ... Unders...