Search found 11292 matches

by HomeStretch
Mon Mar 18, 2024 5:44 pm
Forum: Personal Investments
Topic: I'm consolidating accounts - next steps and advice?
Replies: 2
Views: 279

Re: I'm consolidating accounts - next steps and advice?

For best portfolio feedback, post your portfolio in the “Asking Portfolio Questions” format: https://www.bogleheads.org/wiki/Asking_portfolio_questions Without your portfolio information, here is done general feedback: There may be tax consequences for buying/selling in a Taxable account. There are no tax consequences for buying/selling in a Roth or tax deferred account. If you transferred a Taxable account, have you: 1) verified the cost basis information transferred correctly? 2) set the cost basis method to specific identification? 3) turned off reinvestment of dividend/capital gains distributions so you don’t buy more of positions you don’t want? What is the total unrealized gain for the Taxable account? Are there any tax lots with a lo...
by HomeStretch
Mon Mar 18, 2024 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Late 5500 EZ
Replies: 2
Views: 355

Re: Late 5500 EZ

Personally, I would file a second amended 2020 Form 5500-EZ checking “final” plan year and showing end of plan year assets as $0 and # of active participants at year end as 0. An amended 2020 Form 5500-EZ is not subject to late filing penalties as far as I know. But filing a late final 2021 Form 5500-EZ for a $0.33 balance (that rounds down to zero) is going to open you up to late filing penalties. Granted there’s not a lot of guidance online or in the Form 5500-EZ instructions or DOL EFAST2 guidelines about amending a Form 5500-EZ. But I don’t see any limitation on the # of amended Form 5500-EZs that one can file for a plan year. When I closed my partnership Solo 401k, I ended up with 2 cents at year end (E*TRADE took 2 months to process t...
by HomeStretch
Mon Mar 18, 2024 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: IRS says I owe it money, but I don't
Replies: 28
Views: 3259

Re: IRS says I owe it money, but I don't

Does the 1099-R show the withholding as Federal (and not state)?

I ask because E*TRADE goofed on my withholding in 2022 and reported the mandatory state withholding (I had the print screens and statements showing it was state) as Federal on Form 1099-R. Took a bit of effort to get them to correct their error and tax withholding deposits.
by HomeStretch
Mon Mar 18, 2024 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: Medical Insurance Deduction
Replies: 9
Views: 518

Re: Medical Insurance Deduction

If you are making 401k contributions with your s/e income, if you make Roth 401k contributions they do not reduce your net business earnings and you will be able to use the net s/e earnings for SEHD and Roth IRA contributions.
by HomeStretch
Mon Mar 18, 2024 12:58 pm
Forum: Personal Investments
Topic: Portfolio Review Request
Replies: 5
Views: 590

Re: Portfolio Review Request

Social Security Estimated Today’s Dollars taken at age 70.5 Him $3,000 month Her $2,000 month Likely this is a typo, but there is no increased SS benefit for delaying beyond age 70. Have you checked your SS claiming strategy at opensocialsecurity.com? Does your annual spend of $300k(?) include everything - income taxes, healthcare, periodic expenses such as a new car or roof? Your retirement income will start between ages 65 and 70 with an annual amount of ~$100k at age 70. Your spending gap of $200k/year will be funded from your Taxable account. Consider tax-efficient equities for your Taxable account which would generate ~$100k in dividend income at 2%. The combination of your retirement income (with 85% of SS subject to tax) and Taxable...
by HomeStretch
Mon Mar 18, 2024 8:03 am
Forum: Personal Investments
Topic: Portfolio Review Request
Replies: 5
Views: 590

Re: Portfolio Review Request

I cannot offer you investment advice as I am not licensed to do so but here is some feedback to consider… Your portfolio is overly complex which is not surprising as it is advisor-managed. If you are willing to manage it yourself, you can have a simpler portfolio with lower investments costs. It will cost you (taxes) and time out of market to unwind this. But this is offset by the immediate advisor fee savings. So consider prioritizing moving away from the advisor to immediately save fees and accepting the costs to clean your portfolio up as quickly as possible. Download the cost basis records for the Taxable account. What is the total unrealized gain or loss for this account? Consider this suggested plan: 1. Pick a new brokerage - I sugges...
by HomeStretch
Mon Mar 18, 2024 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Medicaid end of life financial recovery
Replies: 2
Views: 523

Re: Medicaid end of life financial recovery

^^^ This.

Medicaid rules seem Byzantine and it takes a legal expert to understand them so I understand that some applicants and their families may not fully be aware of/understand estate recovery. Also Medicaid estate recovery rules should be applied fairly and consistently across states and within a state, which may not be the current practice.
by HomeStretch
Mon Mar 18, 2024 6:41 am
Forum: Personal Finance (Not Investing)
Topic: Fair Equity Percentage for In-Law Reno to Moms House until End of Life
Replies: 8
Views: 700

Re: Fair Equity Percentage for In-Law Reno to Moms House until End of Life

Welcome to the forum! How precise or well-supported does your equity share % need to be to satisfy you, your mom and any other heirs to the house? You/mom can either estimate the house’s fair value or have an appraisal done to establish the pre- and post-Reno fair value. Your equity share is $180k/the home’s fair value net of estimated selling costs. So, for example, if your equity share now is 16% and the remaining 84% is to be split equally with two other siblings, your share upon inheritance is 34% (= 84%/3 = 18% +16% = 34%). Keep in mind that actual construction costs and home market prices can vary significantly. If there is a significant cost overrun or the house market tanks/soars before renovation is completed, how will that be addr...
by HomeStretch
Sun Mar 17, 2024 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare: Getting Part A and D only
Replies: 39
Views: 1936

Re: Medicare: Getting Part A and D only

Reconsider.
Part B covers drug infusions in a doctor/clinic setting such as expensive chemotherapy, immunotherapy, etc. A parent’s monthly immunotherapy was billed at $100k per visit.
by HomeStretch
Sun Mar 17, 2024 12:17 pm
Forum: Personal Investments
Topic: Non-401K contribution question
Replies: 17
Views: 1074

Re: Non-401K contribution question

It’s great that the employer offers a retirement plan with a match if your children contribute. If there is any IRA space, they can contribute to a Roth IRA.

Where one saves is not as important as how much one saves (especially as a young adult). So encourage them to start saving in a Taxable account too.
by HomeStretch
Sun Mar 17, 2024 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: Letter from insurance company. Legit or scam
Replies: 10
Views: 1237

Re: Letter from insurance company. Legit or scam

It’s odd that after 10 years it wasn’t turned over to the state unclaimed property division.

Have you checked the state unclaimed property list to see if this policy benefit is on there? Any chance this is an unclaimed property agent rather than the issuer of the policy (they charge you a fee to claim it when you can do it for free)?
by HomeStretch
Sun Mar 17, 2024 12:01 pm
Forum: Personal Consumer Issues
Topic: How to fix sewer back up?
Replies: 28
Views: 1624

Re: How to fix sewer back up?

Good luck in figuring this out. Consider getting someone to scope the line from your house to the street. It will detect a blockage, broken/crushed pipe, incorrect slope, etc. Offer a bonus if you have to to get someone in who does this. They often have water jets too that can clear any obstructions.

Be sure your house has a back flow preventer so your drinking water cannot be contaminated by back flow issues.

Check your homeowner’s policy to see if you have septic/sewer back flow coverage. I have an [edit - rider order] on mine that covers damages and repairs.
by HomeStretch
Sun Mar 17, 2024 11:58 am
Forum: Personal Investments
Topic: Check my work: Taking over management of my parent's portfolio
Replies: 23
Views: 3145

Re: Check my work: Taking over management of my parent's portfolio

Also consider: 1) not mirroring the account holdings to have fewer holdings in each account 2) not holding bonds in the Roth IRA 3) holding international in equity only 4) using VOO (S&P 500) rather than VTI (US TSM) in the tax-advantaged accounts to avoid inadvertent wash sales as the Taxable account holds VTI. Suggested portfolio: Portfolio Size : $924,000 Taxable: $275,000 - 30% 2% Vanguard Money Market - consider VUSXX if your parents have a state income tax 28% Vanguard Total Stock Market ETF (VTI) (ER 0.03%) His Traditional IRA $377,000 - 41% 28% Vanguard Total Bond ETF (BND) (ER 0.03%) 13% Vanguard Total Int'l Stock ETF (VXUS) (ER 0.08%) Her Traditional IRA $135,000 - 14% 10% Vanguard Total Bond ETF (BND) (ER 0.03%) 4% Vanguard ...
by HomeStretch
Sun Mar 17, 2024 8:22 am
Forum: Investing - Theory, News & General
Topic: Anybody heard stories of well "prepared" retirees running out of money?
Replies: 82
Views: 9554

Re: Anybody heard stories of well "prepared" retirees running out of money?

Long-term care costs for just one spouse can cause both spouses to run out of money unexpectedly. My parents were year 2000 retires who lived frugally on SS benefits and RMDs, no LTCi and no “spousal refusal” law or spousal IRA exclusions in their state. After 21 years of retirement they could have continued to live this way for many years. Unfortunately, one parent’s long-term care (dementia) wiped out their savings and vacation home equity due to skilled nursing facility private-pay fees of $20k/month before qualifying for Medicaid LTC benefits. The late-80s parent could not be safely cared for at home anymore due to serious health conditions and extreme aggressiveness. The “well” parent was left with low SS benefits and very little asset...
by HomeStretch
Sun Mar 17, 2024 8:10 am
Forum: Personal Investments
Topic: Fired AUM advisor - now what? (portfolio questions)
Replies: 25
Views: 2093

Re: Fired AUM advisor - now what? (portfolio questions)

Given the high ERs in Spouse 2’s 401k, I agree with holding only BSPAX S&P 500 (ER .35%) here and holding your 30% fixed income allocation in Spouse 1’s 401k. Which spouse is the owner of the Roth IRA? If one spouse does not have a Roth IRA, consider opening one (with a small Roth conversion if you cannot make a direct Roth IRA contribution) to start the 5-year clock on initial Roth IRAs. You may find it advantageous in retirement to do Roth conversions. Spouse 1 has the Roth. But I'm not understanding how doing a small Roth conversion now would be beneficial. As I understand it , to avoid penalties and taxes when you withdraw funds from a Roth that were converted from a tIRA, you have to wait >5 years between the conversion and withdr...
by HomeStretch
Sun Mar 17, 2024 5:37 am
Forum: Personal Investments
Topic: Fired AUM advisor - now what? (portfolio questions)
Replies: 25
Views: 2093

Re: Fired AUM advisor - now what? (portfolio questions)

Given the high ERs in Spouse 2’s 401k, I agree with holding only BSPAX S&P 500 (ER .35%) here and holding your 30% fixed income allocation in Spouse 1’s 401k. Which spouse is the owner of the Roth IRA? If one spouse does not have a Roth IRA, consider opening one (with a small Roth conversion if you cannot make a direct Roth IRA contribution) to start the 5-year clock on initial Roth IRAs. You may find it advantageous in retirement to do Roth conversions. Regarding your 2024 planned contributions: 1. Does either 401k plan offer a mega backdoor Roth? 2. Consider rolling over Spouse 1’s tIRA into their 401k plan, if it accepts rollovers in, to allow Spouse 1 to do an annual backdoor Roth without being subject to pro-rated taxes. Spouse 2 c...
by HomeStretch
Sun Mar 17, 2024 4:44 am
Forum: Personal Investments
Topic: HELP - what to invest in for 750,000 windfall
Replies: 14
Views: 1966

Re: HELP - what to invest in for 750,000 windfall

Welcome to the forum! It’s impossible to give you the best feedback on how to invest the $750k without knowing your financial picture. Consider posting in the “Asking Portfolio Questions” format: https://www.bogleheads.org/wiki/Asking_portfolio_questions General advice: 1. If you owe taxes on the windfall, set the $ aside separately and pay estimated taxes as due 2. Fund an emergency fund 3. Payoff debt 4. Maximize Roth and tax deferred space available to you. Put the remainder in a Taxable account 5. Invest within those accounts according to your desired asset allocation. [Edit - place holdings tax efficiently across the account types]. 6. Consider gifting, funding a 529 for college expenses or charitable contributions to share the good fo...
by HomeStretch
Sun Mar 17, 2024 3:18 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversions and the 8606 Form
Replies: 3
Views: 597

Re: Roth Conversions and the 8606 Form

Yes, as you are allowed to make 2023 IRA contributions up until 4/15/24, most brokerages will not issue a Form 5498 until May (Fidelity is an exception).

Form 5498 does not need to be entered into your Form 1040 but you should keep the form in your tax files to support your contributions. Your tax preparer can enter IRA contributions into their tax software based on your telling them you made a IRA contribution. If you made a traditional IRA contribution, the tax software will determine, based on your Form 1040 modified adjusted gross income, whether the contribution is deductible or not. If not deductible, the tax software should generate a Form 8606.
by HomeStretch
Sun Mar 17, 2024 3:10 am
Forum: Personal Finance (Not Investing)
Topic: 401(k) rule of 55: plan-specific?
Replies: 4
Views: 804

Re: 401(k) rule of 55: plan-specific?

Check your 401k Summary Plan Description to see if it allows ex-employees to take partial distributions. If not, you will only be able to take one penalty-free distribution in connection with a rollover of your full 401k plan balance to a Rollover IRA.
by HomeStretch
Sat Mar 16, 2024 7:09 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3200

Re: Retire in 7 years, getting close enough to plan

verbose wrote: Fri Mar 15, 2024 5:00 pm … His HSA at Optum [investment not allowed by plan]
0.2% cash …
Are you reimbursing yourself from the HSA accounts or are you cash flowing medical expenses/using the HSA as a retirement account? For the latter, if you want to invest your HSA funds you can set up a no-fee Fidelity HSA to make periodic transfers from the Optum HSA to the Fidelity HSA. Check the Optum HSA plan for transfer fees and restrictions.
$7500 his IRA/Roth IRA (already contributed for 2024)
$7500 her IRA/Roth IRA (already contributed for 2024)
The 2024 IRA limit with catch-up contribution is $8,000 each
by HomeStretch
Sat Mar 16, 2024 2:14 pm
Forum: Personal Investments
Topic: Death of Joint Tenant/Owner
Replies: 20
Views: 1726

Re: Death of Joint Tenant/Owner

… They also had individual stocks (a legacy from my mom's mother). These are administered through Computershare and EQ Shareowneronline. They are Joint Tenants on these as well, and the accounts are registered through my mother's SS number. 1) it looks like the only way to change ownership from joint to individual is to open a new account for my father and transfer the content of the joint account into the individual account. Is that correct? Are there tax ramifications for that? 2) while it is still in joint tenancy, can my father sell the shares? gift the shares? It’s not uncommon for financial institutions (FI) to require the surviving joint owner to open a new individual account if the survivor’s SS# is not primary on the account. Ther...
by HomeStretch
Sat Mar 16, 2024 12:28 pm
Forum: Personal Investments
Topic: Evaluate Portfolio - Thank you in advance
Replies: 8
Views: 1038

Re: Evaluate Portfolio - Thank you in advance

… Does your company match contributions to the deferred comp plan? Are you required to take an immediate full distribution of your plan balance if you are terminated, resign or the company has a corporate transaction such as a merger or sale? Regarding the risk… it is real so keep that in mind as you make contributions. I think it’s more worthwhile to participate if your company matches contributions and you have no plans to leave. My spouse’s Fortune 100 company entered bankruptcy protection in the Great Financial Recession as their industry customers canceled orders overnight. We waited for 2 years until the company luckily exited bankruptcy but was subsequently acquired. This forced a full payout of the deferred comp balance in a much h...
by HomeStretch
Sat Mar 16, 2024 8:03 am
Forum: Personal Investments
Topic: Evaluate Portfolio - Thank you in advance
Replies: 8
Views: 1038

Re: Evaluate Portfolio - Thank you in advance

Please edit your original post to include the information in the “Asking Portfolio Questions” template: https://www.bogleheads.org/wiki/Asking_portfolio_questions Information to add includes your Federal marginal tax rate, summary of 2024 contributions, where each account is held, expense ratios for your account holdings in the 401k. Congratulations on your portfolio and salary increase since your Dec. 2020 portfolio review request. Agree with paying off the 6% car loan next month. Your savings accounts are yielding less after tax than 6%. What is your savings rate as a % of your gross income? Please list your 2024 contributions (receiving account and $) in one place. Does your company match contributions to the deferred comp plan? Are you ...
by HomeStretch
Fri Mar 15, 2024 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401K profit share.
Replies: 3
Views: 203

Re: Solo 401K profit share.

Caliscotsman wrote: Fri Mar 15, 2024 2:34 pm Sorry. Having a brain fart.

Doing my 2023 taxes using Turbo Tax.
It has calculated I can contribute an additional $26,000 to my i401K as a profit sharing component.

Does this contribution need to be made by tax day 2024? ie. next month? (If so...ouch.)
File an extension. The contribution needs to be made by your filing due date including extensions. You can file earlier and still have until the extension date to make the deposit.
by HomeStretch
Fri Mar 15, 2024 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: Tricare Retired Reserve: wow it sucks wth?
Replies: 25
Views: 2332

Re: Tricare for Life: wow it sucks wth?

It depends on how much you will have to pay out of pocket on top of the premiums. If it has low copays/co-insurance, no deductibles, and good RX coverage, your OOP may not get anywhere near the $4400 max OOP.
by HomeStretch
Thu Mar 14, 2024 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Multiple Solo 401(k)
Replies: 28
Views: 1992

Re: Multiple Solo 401(k)

What's the right way to move the money out of Vanguard to another provider? The destination provider has already "restated" (transferred) my plan. The options are 1. Severance from employment 2. In-service withdrawal 3. Plan termination 4. Qualified domestic relations order (QDRO) 5. Total and permanent disability 6. Hardship withdrawal 7. Required minimum distribution (RMD) 8. Death I am confused between #1 and #2. Call the new custodian and Vanguard. If Vanguard will not directly electronically transfer the plan assets to the new custodian, you want a check made out to the new custodian FBO you/your new plan account #. Call the new custodian first to ask how the check payee should be written. You may need the check mailed to yo...
by HomeStretch
Thu Mar 14, 2024 7:57 am
Forum: Personal Finance (Not Investing)
Topic: Help for sister on social security during assisted living spend down
Replies: 13
Views: 2054

Re: Help for sister on social security during assisted living spend down

If Medicaid in your sister’s state will pay for Assisted Living (AL) (my state will not) and you have found a good AL facility that will accept Medicaid assignment after a period of private pay, this sounds like a good option if the family has the resources to make the payments to the facility. Get the private pay agreement in writing. Do not sign any paperwork with the facility to be a financial guarantor. The required private pay period may be negotiable. Does the AL facility offer memory care and skilled nursing if your sister needs more care on the future? If not, what happens if your sister needs more care, the AL facility cannot provide it and your sister has no funds to pay a period of private-pay at a new facility? Will the AL facil...
by HomeStretch
Thu Mar 14, 2024 7:39 am
Forum: Personal Consumer Issues
Topic: Refund for whn Delta cancelled my flights
Replies: 29
Views: 2163

Re: Refund for whn Delta cancelled my flights

If you are entitled to a cash refund per DOT guidelines and the airline refuses to provide one, you can file a complaint with the Dept. of Transportation:
https://www.transportation.gov/individu ... on/refunds
by HomeStretch
Thu Mar 14, 2024 7:25 am
Forum: Personal Investments
Topic: Check my work: Taking over management of my parent's portfolio
Replies: 23
Views: 3145

Re: Check my work: Taking over management of my parent's portfolio

Consider putting the full agent status in place with Vanguard now rather than waiting. Incapacitation can happen suddenly. Depending on your parents’ marginal tax rate, consider whether modest Roth conversions make sense in a surviving spouse scenario. Also consider: 1) not mirroring the account holdings to have fewer holdings in each account 2) not holding bonds in the Roth IRA 3) holding international in equity only 4) using VOO (S&P 500) rather than VTI (US TSM) in the tax-advantaged accounts to avoid inadvertent wash sales as the Taxable account holds VTI. Suggested portfolio: Portfolio Size : $924,000 Taxable: $275,000 - 30% 2% Vanguard Money Market - consider VUSXX if your parents have a state income tax 28% Vanguard Total Stock M...
by HomeStretch
Thu Mar 14, 2024 1:14 am
Forum: Personal Investments
Topic: Margin account is running wild with interest on Fidelity. Personal advice.
Replies: 20
Views: 1414

Re: Margin account is running wild with interest on Fidelity. Personal advice.

Absolutely. The most I can pay off is 3-4K a month. Or are you sugguesting I liqudate stocks to stop this? I also considered this... however... Margin Debt is 81K and stocks are 75K. Thank you Why not sell the $75k in stock now to pay off most of the margin loan and then pay the remainder of the loan off in 2 months? I can do this! If best route to take. I just thought the stocks would come back up in the next 3-8 months. And then I would be kicking myself for not waiting. Your margin rate looks to be about 18%. Your stocks would have to increase over 20% to have sufficient after-tax proceeds to break even on the margin loan + interest. It’s a personal choice whether to hold or sell. But likely stock speculation using margin is what got yo...
by HomeStretch
Thu Mar 14, 2024 1:02 am
Forum: Personal Investments
Topic: Margin account is running wild with interest on Fidelity. Personal advice.
Replies: 20
Views: 1414

Re: Margin account is running wild with interest on Fidelity. Personal advice.

stevef22 wrote: Thu Mar 14, 2024 12:53 am Absolutely. The most I can pay off is 3-4K a month. Or are you sugguesting I liqudate stocks to stop this? I also considered this... however... Margin Debt is 81K and stocks are 75K.

Thank you
It looks like Schwab’s current margin rate of $81k is 12.125% per the link, below. [Edit - But with interest of $1,200/mo it looks like your rate is closer to 18%]. Why not sell the $75k in stock now to pay off most of the margin loan and then pay the remainder of the loan off in 2 months?
https://www.schwab.com/margin/margin-ra ... quirements
by HomeStretch
Thu Mar 14, 2024 1:00 am
Forum: Personal Finance (Not Investing)
Topic: Beneficiary Issue on Inherited IRA and Roth IRA
Replies: 8
Views: 1058

Re: Beneficiary Issue on Inherited IRA and Roth IRA

Baseballmom94 wrote: Wed Mar 13, 2024 4:03 pm … and now we will most likely need to involve an attorney. …
This is likely your/your mother’s best course of action.
by HomeStretch
Thu Mar 14, 2024 12:50 am
Forum: Personal Investments
Topic: Margin account is running wild with interest on Fidelity. Personal advice.
Replies: 20
Views: 1414

Re: Margin account is running wild with interest on Fidelity. Personal advice.

Have you considered repaying the loan in full immediately and then turning off margin on the account?
by HomeStretch
Wed Mar 13, 2024 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Two accountants disagree about Backdoor Roth and Potentially Screwed up our accounts
Replies: 27
Views: 3588

Re: Two accountants disagree about Backdoor Roth and Potentially Screwed up our accounts

After you draft your 2022 Forms 8606, post them here (line # and $) for a quick review.
by HomeStretch
Wed Mar 13, 2024 8:07 am
Forum: Personal Finance (Not Investing)
Topic: landlord insurance late payment
Replies: 2
Views: 578

Re: landlord insurance late payment

Many insurers report into/use a CLUE report for underwriting purposes. It tracks claims history but I don’t think it tracks late premium payments or policies canceled by an insurer due to non-payment (double check this).
by HomeStretch
Wed Mar 13, 2024 7:50 am
Forum: Personal Investments
Topic: 80 year old mother's retirement accounts
Replies: 23
Views: 2106

Re: 80 year old mother's retirement accounts

Welcome to the forum! +1 to FiveK ’s suggestion to edit your original post to provide more information in the linked format. Simplicity and low-cost holdings are two worthwhile investing goals. Consolidating your mom’s portfolio at a low-cost brokerage may make sense. It also simplifies her RMDs as she currently must take RMDs from two accounts. Fidelity (or Schwab) is a better choice imo than Vanguard these days. Fidelity has local offices and 24/7 800# (which can help your mom if you are not available (travel, incapacitation, death). It is also more POA-friendly than Vanguard ime. Does your mom’s estate plans include POAs for financial and healthcare matters naming you as her attorney-in-fact (agent)? Get the DPOA on file with her financi...
by HomeStretch
Tue Mar 12, 2024 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: Why my mom will continue to need a financial advisor
Replies: 23
Views: 2084

Re: Why my mom will continue to need a financial advisor

How complicated are your mom’s taxes?
by HomeStretch
Tue Mar 12, 2024 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: One spouse retiring earlier than the other?
Replies: 38
Views: 2988

Re: One spouse retiring earlier than the other?

Retirement readiness has a financial component and a psychological component. Your spouse is the best judge of whether she retires today, next month or, according to plan, in 2 years. Interim steps such as taking time off to travel with you, going to a part time schedule, etc. are all options.

The fact that you told your wife that you as a couple are okay financially if she retires now ahead of plan is priceless. Should the job continue to be miserable, she now knows she can walk at any time. Kudos for supporting your spouse.

Retiring at different times works out fine.
by HomeStretch
Tue Mar 12, 2024 11:49 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201671

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

DH died last month. His son is the beneficiary on two bonds (I have advised him to establish a TD account) and I am the beneficiary on some others. The TD website says "Electronic savings bonds. If the person who died has an online TreasuryDirect account, contact us. We will put a hold on the account and tell you what to do." I recall there is something an account holder can do to give a beneficiary access to the I bonds and this is the procedure I am looking for. Nonnie, Below is a link to my past post. I was beneficiary on a parent’s electronic I-Bonds. DH’s son needs to call TD (# on TD website), notify TD of death (account will be locked), TD will issue a case # to son and tell him which form # to use (case # gets written on ...
by HomeStretch
Mon Mar 11, 2024 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Wrong Total Basis on form 8606 - How to Fix
Replies: 11
Views: 855

Re: Wrong Total Basis on form 8606 - How to Fix

Welcome to the forum!

You used “we” throughout your original post when referring to Form 8606 and IRA contributions/distributions. However, IRAs and Form 8606 are individual, not joint. I mention this just to be sure you are not combining your/spouse’s activity onto one Form 8606.
by HomeStretch
Mon Mar 11, 2024 6:51 am
Forum: Personal Finance (Not Investing)
Topic: Quick way to efile an extension?
Replies: 16
Views: 774

Re: Quick way to efile an extension?

+1 to DirectPay at IRS.gov. You will see the payments option on the main page. Pay an amount as low as $1 and select “extension” as the reason. If your friend is subject to state income taxes, check whether the state accepts the Federal extension or must be filed separately.

If your friend’s 2023 Federal filing status will be different than in prior years, I think your friend needs to file the extension/payment using the 2023 primary filer’s SS# but double check this.
by HomeStretch
Mon Mar 11, 2024 1:51 am
Forum: Personal Investments
Topic: How To Invest Severance
Replies: 15
Views: 2081

Re: How To Invest Severance

At Fidelity, FDLXX is a comparable treasury MMF.

You can also ladder T-Bills.
by HomeStretch
Sun Mar 10, 2024 10:59 pm
Forum: Personal Finance (Not Investing)
Topic: Possible after-tax 401k over contribution?
Replies: 1
Views: 322

Re: Possible after-tax 401k over contribution?

Love4Learning wrote: Sun Mar 10, 2024 10:39 pm … the quick summary is that the after-tax contribution from Dec 2022 paycheck was processed by Fidelity 401k in Jan of 2023 which cause the total amount of 401k contribution in 2023 to be over 66k IRS limit.
The contribution is for plan year 2022 (when the contribution was withheld via payroll) and not plan year 2023 (when Fidelity credited the contribution to your 401k account).
by HomeStretch
Sun Mar 10, 2024 12:52 pm
Forum: Personal Investments
Topic: 5-8 years to early retirement. Portfolio review and how to prepare.
Replies: 14
Views: 3083

Re: 5-8 years to early retirement. Portfolio review and how to prepare.

Leif wrote: Sun Mar 10, 2024 12:35 pm … I have 100% equities in my Roth and 100% bonds in my tIRA. But, I'm still doing some Roth conversions, so I'll be moving some bond funds to my Roth. That is my short term plan. Longer term is when equities next goes into decline I can adjust my AA via the Roth.
I agree that sometimes it’s inevitable that Roth or HSA accounts have to hold bonds to maintain the desired asset allocation. I am already seeing how difficult it can be to rebalance within a Taxable account given large unrealized gains.
by HomeStretch
Sun Mar 10, 2024 7:59 am
Forum: Personal Investments
Topic: 5-8 years to early retirement. Portfolio review and how to prepare.
Replies: 14
Views: 3083

Re: 5-8 years to early retirement. Portfolio review and how to prepare.

Q1: If your current 401k plan will accept rollovers in, rollover your Rollover IRA’s pretax balance into your current 401k. This also has the side benefit of more $ available under the ‘Rule of 55’. Then convert the remaining IRA balance (which should be your basis from non-deductible contributions) to your Roth IRA. Then you can do a backdoor Roth each year. Don’t forget the Form 8606 reporting. Q2: Yes, open a Roth IRA at Fidelity to receive Fidelity 401k in-service distributions of after-tax 401k contributions. You can transfer your Vanguard Roth IRA to your Fidelity Roth IRA to avoid the extra account. It makes sense to hold your Roth IRA at Fidelity due to your Fidelity 401k. Q3: If you have to pay taxes on your Taxable account’s SVSPX...
by HomeStretch
Sun Mar 10, 2024 7:14 am
Forum: Personal Investments
Topic: IRA contribution to lower MAGI?
Replies: 9
Views: 882

Re: IRA contribution to lower MAGI?

If you are over the MAGI limit to make a direct Roth IRA contribution for 2023 then aren’t you also over the income limit to make a deductible traditional IRA contribution? However, you may be eligible to make a 2024 traditional contribution to a self-employed retirement plan such as a SEP IRA. IRS FAQ about such plans: https://www.irs.gov/retirement-plans/retirement-plans-for-self-employed-people#:~:text=Simplified%20Employee%20Pension%20(SEP),2020%20and%20%2456%2C000%20for%202019). It makes sense to lower your income if possible to reduce future IRMAA. A traditional IRA/i401k contribution will lower income but also increase your tax deferred balances and (possibly) future RMDs/IRMAA MAGI. Another option may be Roth conversions - it may pu...
by HomeStretch
Sun Mar 10, 2024 7:00 am
Forum: Personal Investments
Topic: Maxing 401k plus want to max Roth IRA with potential high income
Replies: 8
Views: 1084

Re: Maxing 401k plus want to max Roth IRA with potential high income

Welcome to the forum! Contributing to a Roth IRA is a good idea. You can wait to make a 2024 contribution when you know for sure whether or not your modified adjusted gross income allows a direct Roth IRA contribution or you can do a backdoor Roth any time from now through 4/15/25. For a backdoor Roth, if you have any 12/31 pretax IRA balance (Traditional IRA, Rollover IRA, SEP IRA, SIMPLE IRA), your Roth conversion (step 2 of a backdoor Roth) will be subject to pro-rated taxes as calculated on Form 8606. You can avert this by rolling over your Rollover IRA’s pretax balance into your current 401k if it accepts rollovers in and has good low-cost fund choices. The BH wiki page “Backdoor Roth” and Form 8606 with instructions may be helpful: ht...
by HomeStretch
Sat Mar 09, 2024 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: How much Roth Conversion should I plan on?
Replies: 18
Views: 2499

Re: How much Roth Conversion should I plan on?

Compare the expected annual growth in your tax deferred accounts to the space you will have available for Roth conversions up to the top of the 12/15% bracket. Will such Roth conversions at least convert the growth? Any principal? Or will limiting conversions to 12/15% result in the tax deferred balance continuing to grow?
by HomeStretch
Sat Mar 09, 2024 3:56 pm
Forum: Personal Investments
Topic: How Do Various Factors Affect Maximum IRA & Solo 401(k) Contribution Limits at Low End of Sole Proprietor Income?
Replies: 10
Views: 473

Re: How Do Various Factors Affect Maximum IRA & Solo 401(k) Contribution Limits at Low End of Sole Proprietor Income?

The double or triple dip on self-employed income for 401k, IRA and SEHD is great but it can be complicated to figure out the best combination of the three and Roth v Traditional. You also need to include the impact, if any, on the QBI deduction and ACA premium subsidies, if any.

I used TurboTax to run various scenarios similar to yours above to determine which was the best combination for me.