Search found 92 matches

by mark1623
Wed Mar 06, 2019 6:05 pm
Forum: Personal Investments
Topic: A tax question: How to withdraw Roth contributions after moving the whole balance to another broker?
Replies: 8
Views: 630

Re: A tax question: How to withdraw Roth contributions after moving the whole balance to another broker?

........................................................... If Fidelity will not know if the money I am withdrawing is from contributions or gains, how then I inform the IRS about it when file my taxes? Is it through form 8606 or something else? Thanks! Your conversions are tracked via 8606. Your o...
by mark1623
Wed Mar 06, 2019 6:01 pm
Forum: Personal Investments
Topic: Schwab 1099 Problems for Maturing TIPS
Replies: 6
Views: 1210

Re: Schwab 1099 Problems for Maturing TIPS

I worked at Schwab from 2006-2009 and this was an issue then. One of these decades they'll have it down.
by mark1623
Fri Feb 08, 2019 1:39 pm
Forum: Personal Investments
Topic: Backdoor Roth (in a few years time)
Replies: 8
Views: 470

Re: Backdoor Roth (in a few years time)

All good answers but the larger issue might be whether to do Roth or traditional. If you are in a high tax bracket a traditional might be better. You can convert traditional to Roth any time by paying your current tax rate on the funds to be converted. The choice of traditional hinges partly on whe...
by mark1623
Wed Feb 06, 2019 8:08 am
Forum: Personal Investments
Topic: Roll over 403b?
Replies: 6
Views: 431

Re: Roll over 403b?

I recently checked my 403b and have about $30,000 sitting in it from a previous job. I'm no longer contributing to it and today I ran an estimated retirement distributions on the state retirement site and it said I would approximately get $350 a month in when I retire. I'm 35, this won't be for awh...
by mark1623
Tue Feb 05, 2019 7:20 pm
Forum: Personal Investments
Topic: Can I do a late 2018 backdoor roth if I currently have a pre-tax tIRA balance?
Replies: 16
Views: 856

Re: Can I do a late 2018 backdoor roth if I currently have a pre-tax tIRA balance?

Well my 457(b) I invest now allows me to invest post-tax (I think). Maybe I should change that. Regardless of my 457(b), if I open up a solo 401(k), I can still invest up to the limits, right? I copied this from a blog: In 2018, the combined salary deferral limit for pre-tax and Roth salary deferra...
by mark1623
Tue Feb 05, 2019 4:17 pm
Forum: Personal Investments
Topic: New to Investing, Advice?
Replies: 12
Views: 411

Re: New to Investing, Advice?

Welcome, do you have any income at all? Part time job? If you are going to need this money in the next 5 years, all stock would not be a prudent choice. Paul Alright, so while I do have an “income” it is from liquidized pallet items and whatnot, just reselling these items for a little more cash to ...
by mark1623
Tue Feb 05, 2019 12:40 pm
Forum: Personal Investments
Topic: ? Tips as income for IRA/Roth
Replies: 11
Views: 607

Re: ? Tips as income for IRA/Roth

Technically it's based of one's modified AGI. You can use Form 1040 to calculate that using the W-2. Definitely do a tax deductible traditional IRA first before Roth IRA. **I edited this to reflect that maybe it's not a definite. With the 10% tax rate, it's likely better to do Roth. Wouldn't she be...
by mark1623
Tue Feb 05, 2019 9:40 am
Forum: Personal Investments
Topic: Are bonds necessary in a taxable account for a 30yo?
Replies: 26
Views: 1326

Re: Are bonds necessary in a taxable account for a 30yo?

No. Your asset allocation should be viewed holistically across all accounts. If you want 10 percent bonds then just load up the 401k with bonds.
by mark1623
Sun Feb 03, 2019 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA Rollover to Solo 401(k), Strategy Questions
Replies: 3
Views: 261

Re: SEP IRA Rollover to Solo 401(k), Strategy Questions

Yes you can fund the sep for 2018 and then start a solo 401k for 2019. You can roll the sep into the 401k as long as your 401k allows for incoming rollovers.
by mark1623
Sat Feb 02, 2019 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Please critique my plan for early retirement
Replies: 42
Views: 5600

Re: Please critique my plan for early retirement

Agree with others that you should take a sabbatical rather than seeing this as retiring. Substantial equal payments won't wipe out your 401K. You take them over your life expectancy, which for a 40 year old is about 43.6 years. So take ~300k and divide by 43.6 and that's how much you can take each y...
by mark1623
Fri Feb 01, 2019 4:37 pm
Forum: Personal Investments
Topic: 30 YO 2 Million to Invest
Replies: 60
Views: 8324

Re: 30 YO 2 Million to Invest

Keep it simple: Put the whole thing into VTI - total stock market index. That's what I would do at your age. With the market being so high, I wouldn't want to put it all in correct? If someone says "no" it means they believe they can time the market. Slowly putting it in can help psycholo...
by mark1623
Fri Feb 01, 2019 4:33 pm
Forum: Personal Investments
Topic: 457 or Taxable in 12% Tax Bracket
Replies: 15
Views: 956

Re: 457 or Taxable in 12% Tax Bracket

Any state taxes to consider?
by mark1623
Fri Feb 01, 2019 2:17 pm
Forum: Personal Investments
Topic: Solo 401k for prior tax year?
Replies: 4
Views: 339

Re: Solo 401k for prior tax year?

They need to be set up by fiscal year end. If that was 12/31 you're out of luck for 2018. As the guy above me said you can still do a SEP for 2018.
by mark1623
Fri Feb 01, 2019 1:01 pm
Forum: Personal Investments
Topic: Making a 3.8 million deposit
Replies: 96
Views: 11644

Re: Making a 3.8 million deposit

If the deal isn't already done you should amend the agreement to have the counterparty send the money directly to your bank or banks of choice.
by mark1623
Fri Feb 01, 2019 10:50 am
Forum: Personal Investments
Topic: Can I cancel a recent IRA contribution?
Replies: 21
Views: 4204

Re: Can I cancel a recent IRA contribution?

How was this resolved? I have a similar problem. I made a traditional IRA contribution late in the year, and asked Fidelity to undo it about a week later. Which they did, but they coded as a distribution. They didn't discuss this with me and I am finding it to be a massive headache to fill Turbotax...
by mark1623
Thu Jan 31, 2019 6:49 pm
Forum: Personal Investments
Topic: Taxable Account Roll Over
Replies: 8
Views: 471

Re: Taxable Account Roll Over

So you hold mutual funds in a taxable account and are transferring those funds to a taxable account at another brokerage firm? Unlike in IRAs, taxable investments get taxed when sold. As long as the mutual funds don't get sold there are no tax consequences.
by mark1623
Thu Jan 31, 2019 5:00 pm
Forum: Personal Investments
Topic: Pension rollover -- help me choose which option is best
Replies: 7
Views: 712

Re: Pension rollover -- help me choose which option is best

If you're in the 24% bracket you may not be able to make a direct contribution to a Roth. Putting the money into a traditional IRA could interfere with any attempt to fund the Roth via the "backdoor" method. If this is a concern, or might be in the future, rolling it back in to the new em...
by mark1623
Thu Jan 31, 2019 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Saying Hi and Questions on IRA on Tax
Replies: 10
Views: 660

Re: Saying Hi and Questions on IRA on Tax

Whether recharacterizing is smart is a bit of a guessing game. Personally I'd leave it in the Roth at your age but there's not really a right answer. If you do recharacterize, save that extra 1.5K in a taxable account. If you do the recharacterization it will be treated as if the money was in the tI...
by mark1623
Thu Jan 31, 2019 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding contribution limits
Replies: 5
Views: 682

Re: Understanding contribution limits

As a longtime lurker and first-time poster, I've been reading potentially contradictory-seeming info, and would be grateful if someone could help me understand for the 2018 tax year, in the following simplified scenario, how much I can contribute to various retirement vehicles across accounts with ...
by mark1623
Thu Jan 31, 2019 2:16 pm
Forum: Personal Investments
Topic: Pension rollover -- help me choose which option is best
Replies: 7
Views: 712

Re: Pension rollover -- help me choose which option is best

If you're in the 24% bracket you may not be able to make a direct contribution to a Roth. Putting the money into a traditional IRA could interfere with any attempt to fund the Roth via the "backdoor" method. If this is a concern, or might be in the future, rolling it back in to the new emp...
by mark1623
Tue Jan 29, 2019 7:30 pm
Forum: Personal Investments
Topic: Risk of nondeductible IRA contributions early in the year
Replies: 4
Views: 285

Re: Risk of nondeductible IRA contributions early in the year

I am trying to understand the risks associated with making a nondeductible traditional IRA contribution and rolling that over into an IRA early in the year. As I understand it, some employer plans can force you to roll 401(k) funds into an IRA after no longer being employed. Suppose someone makes a...
by mark1623
Tue Jan 29, 2019 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Max out retirment funds before saving for kid's college?
Replies: 54
Views: 2746

Re: Max out retirment funds before saving for kid's college?

Sure, but there are many majors where there are no convenient, quality low-cost options. And cost is relative: when I was in college, the all-in cost was much less than that. And besides, $12.5k per year is $50k over 4 years, or $62.5k over 5 years. That's actually a lot to borrow and represents a ...
by mark1623
Tue Jan 29, 2019 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Max out retirment funds before saving for kid's college?
Replies: 54
Views: 2746

Re: Max out retirment funds before saving for kid's college?

Sure, but there are many majors where there are no convenient, quality low-cost options. And cost is relative: when I was in college, the all-in cost was much less than that. And besides, $12.5k per year is $50k over 4 years, or $62.5k over 5 years. That's actually a lot to borrow and represents a ...
by mark1623
Tue Jan 29, 2019 3:34 pm
Forum: Personal Investments
Topic: Changing mistaken Roth-IRA contribution to SEP-IRA?
Replies: 31
Views: 1551

Re: Changing mistaken Roth-IRA contribution to SEP-IRA?

Update: I have withdrawn the $6500 Roth contribution from Vanguard. It was removed as an excess contribution and put in my bank account. I then re-contributed it as part of a larger SEP-IRA contribution. So that part's set. Vanguard told me they would be issuing me a 1099-R next January (2020) and ...
by mark1623
Tue Jan 29, 2019 2:54 pm
Forum: Investing - Theory, News & General
Topic: An emergency fund cautionary tale
Replies: 89
Views: 12344

Re: An emergency fund cautionary tale

To me an emergency fund is money that is available even when most things are not working. That the authorities and banks dont have control over. Am I alone in this? I think of situations where the ATMs are shut down or big strikes. We had two world wars in one century, after all. So where do you ke...
by mark1623
Tue Jan 29, 2019 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Max out retirment funds before saving for kid's college?
Replies: 54
Views: 2746

Re: Max out retirment funds before saving for kid's college?

No need to save for kids' college until you've set yourself up well. They'll survive.
by mark1623
Tue Jan 29, 2019 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA conversion questions
Replies: 20
Views: 951

Re: Roth IRA conversion questions

One thing to keep in mind is that taxes from the conversion should be paid from taxable accounts, especially if you are under 59.5. That might limit the amount you want to convert in any one year.
by mark1623
Tue Jan 29, 2019 12:42 am
Forum: Personal Finance (Not Investing)
Topic: 1099-R code 8J for returning excess Roth IRA contribution
Replies: 9
Views: 812

Re: 1099-R code 8J for returning excess Roth IRA contribution

Dont know about that tax software but it's not a taxable event. The codes are correct. As for the amounts, those are likely correct as well; earnings/losses have to be calculated when removing an excess contribution. It's not unusual to have to remove less than the full contribution.
by mark1623
Mon Jan 28, 2019 6:13 pm
Forum: Personal Investments
Topic: Small overcontribution to ROTH IRA for Son
Replies: 4
Views: 271

Re: Small overcontribution to ROTH IRA for Son

OTOH any earnings on the excess are subject to tax and a 10% penalty. We could be talking serious pennies, maybe even nickels here :)
by mark1623
Mon Jan 28, 2019 6:07 pm
Forum: Personal Investments
Topic: 403b and 457b in Michigan
Replies: 9
Views: 406

Re: 403b and 457b in Michigan

Yes, 457 contributions do not count toward the overall limit so if your employer allows you can put 19k into each (for 2019).
by mark1623
Mon Jan 28, 2019 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: 401k plan terminated - fully vested after 2 months
Replies: 3
Views: 461

Re: 401k plan terminated - fully vested after 2 months

It is a law but you are always fully vested in your own contributions. But yeah everyone auto-vests when a plan is terminated so any employer contributions become yours.
by mark1623
Mon Jan 28, 2019 5:12 pm
Forum: Personal Investments
Topic: Small overcontribution to ROTH IRA for Son
Replies: 4
Views: 271

Re: Small overcontribution to ROTH IRA for Son

I'd have Vanguard return the excess contribution and its earnings. Otherwise, he will be paying the penalty every year until it is fixed. Of course, if there will definitely be a Roth IRA contribution this year, the excess could be assigned to this year's contribution. I'm not sure if that means th...
by mark1623
Mon Jan 28, 2019 3:29 pm
Forum: Personal Investments
Topic: Can you have max out a 401k and have a SEP-IRA?
Replies: 16
Views: 1123

Re: Can you have max out a 401k and have a SEP-IRA?

wvwckarate wrote: Mon Jan 28, 2019 3:01 pm But in the case of the SEP-IRA I can convert those to Roth IRA status? If I am understanding that right. Again... thanks so much to everyone who has posted replies. I appreciate it a lot.
Yes, sep contributions can be converted to roth as soon as the contribution is made.
by mark1623
Mon Jan 28, 2019 2:50 pm
Forum: Personal Investments
Topic: High Earners Mostly Use Taxable Accounts?
Replies: 167
Views: 14941

Re: High Earners Mostly Use Taxable Accounts?

If you can make it til about your early 50's you could use substantial equal payments from an IRA (wife could do so as well). This at least gets rid of the penalties associated with IRA distributions prior to 59.5. Can you please clarify what you mean by this? Is this similar to the Roth Conversion...
by mark1623
Mon Jan 28, 2019 2:45 pm
Forum: Personal Investments
Topic: Changes within traditional IRA
Replies: 5
Views: 331

Re: Changes within traditional IRA

IRA contributions have to be made in cash.
by mark1623
Mon Jan 28, 2019 2:22 pm
Forum: Personal Investments
Topic: High Earners Mostly Use Taxable Accounts?
Replies: 167
Views: 14941

Re: High Earners Mostly Use Taxable Accounts?

If you can make it til about your early 50's you could use substantial equal payments from an IRA (wife could do so as well). This at least gets rid of the penalties associated with IRA distributions prior to 59.5.
by mark1623
Mon Jan 28, 2019 1:54 pm
Forum: Personal Investments
Topic: Roth IRA contributions withdrawals
Replies: 5
Views: 624

Re: Roth IRA contributions withdrawals

Every distribution from an IRA shows up on a 1099-R. Up to you to determine whether the amount came from contributions or not. Keep in mind that all Roth IRAs must be aggregated when determining contributions, conversions and earnings. Thus it's impossible for any one custodian to be certain as to w...
by mark1623
Mon Jan 28, 2019 1:45 pm
Forum: Personal Investments
Topic: Can you have max out a 401k and have a SEP-IRA?
Replies: 16
Views: 1123

Re: Can you have max out a 401k and have a SEP-IRA?

Yes. Thats actually exactly what I'm doing now. I'm doing $19,000 through work (I'm 37 years old) in roth contributions. They then make $10,800 (it varies from year to year) contribution that is Pre-tax. With the more restrictive rules of the solo 401k, it sounds like the SEP-IRA with conversions w...
by mark1623
Sun Jan 27, 2019 11:05 am
Forum: Personal Investments
Topic: Two SEP / i401K Questions: Please clarify these 2 points
Replies: 15
Views: 748

Re: Two SEP / i401K Questions: Please clarify these 2 points

Dont know about number one but that's just a broker specific issue.

For the second question, you can keep the SEP open but just not contribute to it when operating the 401k. You wouldn't have to close the SEP account.
by mark1623
Sat Jan 26, 2019 7:00 pm
Forum: Personal Investments
Topic: Can you have max out a 401k and have a SEP-IRA?
Replies: 16
Views: 1123

Re: Can you have max out a 401k and have a SEP-IRA?

That was what I wanted to do originally, but I was told that since I make and max out the contributions through my 401k at work I would not be able to do a solo 401k. Was that incorrect? Thanks very much. You still could set up a solo 401k but as long as you are maxing your work 401k the contributi...
by mark1623
Fri Jan 25, 2019 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: small town
Replies: 47
Views: 4131

Re: small town

Ed Jones has about 80% of its home office employees in St. Louis, with the other 20% outside of Phoenix. If you live in one of those "small towns" then sure. Otherwise, your "small town" contribution goes straight in to the pocket of the Ed Jones guy, with a few scraps for his as...
by mark1623
Wed Jan 23, 2019 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k for startup with no revenue?
Replies: 3
Views: 338

Re: Solo 401k for startup with no revenue?

My thought with the SIMPLE was that employees may not be coming super quickly, so the eligibility requirements could be toughened up each year until reaching the max of 2 years. If, say, the OP hired employees next year his corp. could keep the SIMPLE through 2020 and then start a 401k for 2021.
by mark1623
Wed Jan 23, 2019 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k for startup with no revenue?
Replies: 3
Views: 338

Re: Solo 401k for startup with no revenue?

You can put a one year/1000 hours of service eligibility requirement on the plan so as to keep out new employees who start after you for some small period of time. If you have W-2 salary, a salary deferral plan works much better than something like a SEP where you and your co-owners will need to get...
by mark1623
Wed Jan 23, 2019 12:42 pm
Forum: Personal Investments
Topic: Backdoor Roth
Replies: 8
Views: 516

Re: Backdoor Roth

Any gains would have been subject to taxes in a traditional IRA. Since they took place in the Roth, those gains are tax-free if not taken until retirement. Don't worry about the returns over one year. Also, no, you no longer can recharacterize (i.e. reverse) a Roth conversion once the end of the yea...
by mark1623
Tue Jan 22, 2019 3:00 pm
Forum: Personal Investments
Topic: [moving employer funds to ROTH eventually]
Replies: 7
Views: 402

Re: [moving employer funds to ROTH eventually]

what kind of money do you have at the employer (pre-tax, after-tax, Roth)?

Assuming it's pre-tax you can roll it to your existing IRA. But the mention of back door makes me think there is more going on here. If you want to make back door Roth IRA contributions you'd want no pre-tax money in ANY IRAs.
by mark1623
Mon Jan 21, 2019 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Student Loans
Replies: 16
Views: 1284

Re: Student Loans

Why live under this burden of debt for 10 years? ...Especially when you and your CPA are having to jump through all these hoops to hide income. Your details are light, but if you roll up your sleeves, you could probably have this debt paid off in a few years. Normally this advice makes sense but th...
by mark1623
Mon Jan 21, 2019 9:47 am
Forum: Personal Investments
Topic: Made contributions to Roth IRA when not eligible
Replies: 3
Views: 365

Re: Made contributions to Roth IRA when not eligible

Call Vanguard and let them know. If it just happened they may be able to back it out. If not, they can help you recharacterize the contribution from Roth to traditional.
by mark1623
Mon Jan 21, 2019 9:45 am
Forum: Personal Investments
Topic: Roth Contribution Trouble?
Replies: 3
Views: 475

Re: Roth Contribution Trouble?

How far above 135k did your gross income go? If it just barely exceeded the limit you may be fine as deductions likely would have your MAGI down below 120k. If not, you can recharacterize the contribution to a traditional IRA or remove it entirely as an excess contribution.
by mark1623
Mon Jan 21, 2019 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Student Loans
Replies: 16
Views: 1284

Re: Student Loans

Assuming you qualify for 10 year PSLF then its probably a bad idea to refinance. How many more years do you have?

Keep in mind that pretax 401k contributions will get that income number down quickly, giving you the double benefit of smaller loan payments and big savings.
by mark1623
Sun Jan 20, 2019 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Yet another Solo 401k vs SEP question
Replies: 22
Views: 1384

Re: Yet another Solo 401k vs SEP question

tj wrote: Sat Jan 19, 2019 8:45 pm SIMPLE IRA because you can deduct up to $12k, you'll be limited to 20% (25%?) of profits with a SEP or Solo 401k if you are already maxing out a 401k at work.
The salary deferral limit unfortunately applies across all plans so a SIMPLE won't help.