Search found 33 matches

by Klewles
Fri Jan 24, 2020 7:03 am
Forum: Personal Finance (Not Investing)
Topic: How to dispute inaccuracy in share prices
Replies: 15
Views: 1257

Re: How to dispute inaccuracy in share prices

It can matter. I have had problems with the IRS going after me on cost basis of some really old shares that I sold in the past. TD ameritrade reported that the cost basis was 0 to the IRS when I sold the shares. I ended up having to show the IRS old statements and printouts of google finance showin...
by Klewles
Fri Jan 24, 2020 6:31 am
Forum: Investing - Theory, News & General
Topic: Pls. help. TVM Calculator for Yield to Maturity calculation
Replies: 2
Views: 274

Re: Pls. help. TVM Calculator for Yield to Maturity calculation

I am an adjunct professor and will be showing students how to use a TVM calculator to determine yield to maturity. My problem is that when I first calculate yield assuming annual coupons I get a 7.07% yield. (Details to follow) When I then change to semi-annual coupons I get a 7.04% yield. That doe...
by Klewles
Fri Jan 24, 2020 5:46 am
Forum: Investing - Theory, News & General
Topic: Vanguard 2019 U.S. government obligations information
Replies: 16
Views: 1727

Re: Vanguard 2019 U.S. government obligations information

Leif wrote:
Thu Jan 23, 2020 5:06 pm
For California they have a 50% threshold for USGO. If below 50% you don't get to exclude any income from taxes in a taxable account. But what about over 50%? Can you deduct 100%, or is it the actual percentage as shown in your linked table?
The actual percentage.
by Klewles
Fri Jan 24, 2020 5:38 am
Forum: Personal Finance (Not Investing)
Topic: 2019 Tax Return and Dependent Status Change?
Replies: 22
Views: 1025

Re: 2019 Tax Return and Dependent Status Change?

Thanks.... I see the age 25 rule now in the 2018 rules.. Will research the Ed credits for him. Seems like up to 40% of the AOC is refundable so $1000 might be a good deal. Caveat that he might not be eligible for the refundable part of the AOC. See e.g. Pub 4012 , page J-9. In particular, if either...
by Klewles
Mon Dec 30, 2019 1:35 am
Forum: Personal Investments
Topic: Are Vanguard Mutual Index Funds covered by Heartbeat Trades?
Replies: 15
Views: 1291

Re: Are Vanguard Mutual Index Funds covered by Heartbeat Trades?

What happens to the recipients of the low cost basis shares, wrt cost basis and taxes? Over the years, I've read many articles on the ETF technique of redemption in low cost basis shares and bizarrely not one of them has ever explained this. Do they inherit the low basis, or does the fund basis ret...
by Klewles
Fri Nov 29, 2019 4:45 am
Forum: Personal Investments
Topic: Hsa for 2019, fund in Jan of 2020?
Replies: 5
Views: 569

Re: Hsa for 2019, fund in Jan of 2020?

I am out of money available in 2019, can I still put money to get deductions for 2019 tax filing, by making a contribution in Jan/Feb of 2020, quick search indicates I should be able to but since this is first time for me doing hsa, wanted to confirm. This contribution will be after tax. Caveat: me...
by Klewles
Wed Nov 27, 2019 4:26 am
Forum: Personal Finance (Not Investing)
Topic: Transferring ibonds through Treasury Direct
Replies: 15
Views: 1466

Re: Transferring ibonds through Treasury Direct

H will be sole owner of everything. H primary, W secondary: removing W non-taxable W primary, H secondary: removing W taxable This is the case whether done with paper bonds or after conversion. If I understand correctly. I agree, sort of. In 2018 Pub 550 and TD's info on tax considerations , there ...
by Klewles
Tue Nov 26, 2019 6:57 am
Forum: Personal Finance (Not Investing)
Topic: Transferring ibonds through Treasury Direct
Replies: 15
Views: 1466

Re: Transferring ibonds through Treasury Direct

In the situation I called about, the bonds were all bought at once, H and W each paid for and are primary owners of half and ownership is to change all at once. Therefore, in this case, the tax seems straightforward. Also, H and W file a joint return. I didn't ask about more complicated cases. I th...
by Klewles
Tue Nov 26, 2019 4:59 am
Forum: Personal Finance (Not Investing)
Topic: Transferring ibonds through Treasury Direct
Replies: 15
Views: 1466

Re: Transferring ibonds through Treasury Direct

According to a TD phone rep: Transferring from coownership to sole owner requires both coowners to sign and the signature must be certified by a financial institution. This applies both for sending in paper bonds and having them reissued to a TD account and changing ownerhip through TD. Removing a ...
by Klewles
Sat Nov 23, 2019 5:02 am
Forum: Personal Finance (Not Investing)
Topic: HSA access worth dropping secondary health insurance?
Replies: 4
Views: 538

Re: HSA access worth dropping secondary health insurance?

First you need to figure the net cost of the HDHP plan by accounting for how much an HSA deduction ($3500) would save on taxes. E.g., if your bracket is 18% (fed, state, FICA, as applicable), you save $630, and the net cost of the HDHP plan is 1534 - 900 - 630 = $4, meaning it's free. YMMV depending...
by Klewles
Sat Nov 23, 2019 4:49 am
Forum: Personal Finance (Not Investing)
Topic: Transferring ibonds through Treasury Direct
Replies: 15
Views: 1466

Re: Transferring ibonds through Treasury Direct

When the bonds show up in the converted account of the primary owners TD online account, primary owner can remove the secondary registrant. I don't think so. The FAQ says: What transactions can I conduct with the securities I trade in? With two exceptions, you can conduct any transaction available ...
by Klewles
Sun Nov 10, 2019 3:38 am
Forum: Personal Investments
Topic: Where should I park my HSA contributions (Employer vs Fidelity)?
Replies: 8
Views: 1103

Re: Where should I park my HSA contributions (Employer vs Fidelity)?

Any reason not to contribute to the employer plan and move the balance to Fidelity once every year? In principle no, but it might be slow and keep you out of the market for a few weeks. According to HealthEquity's current instructions and form , you would need to (1) liquidate VFIAX (or whatever), ...
by Klewles
Sat Nov 09, 2019 4:49 am
Forum: Personal Investments
Topic: Where should I park my HSA contributions (Employer vs Fidelity)?
Replies: 8
Views: 1103

Re: Where should I park my HSA contributions (Employer vs Fidelity)?

WageWorks (BNY Mellon) requires $1000 to invest, but they're have good choices (ie. VFIAX, etc.). Caveat that WageWorks has merged with HealthEquity . HealthEquity includes good choices like VFIAX, but it charges an additional 0.4% annual fee ( 0.033% monthly ) on top of VFIAX's 0.05% expense ratio...
by Klewles
Fri Nov 08, 2019 3:55 am
Forum: Investing - Theory, News & General
Topic: Small investor buying individual treasury securities from secondary vs at auction
Replies: 5
Views: 515

Re: Small investor buying individual treasury securities from secondary vs at auction

Hector wrote:
Thu Nov 07, 2019 12:27 pm
A separate question:
If I buy zero coupon treasury and let it mature, is it considered interest or capital gain?
Interest. You have to pay tax on it each year, even though you don't receive it until maturity. See Pub 550, "Original Issue Discount (OID)".
by Klewles
Thu Oct 31, 2019 2:57 am
Forum: Investing - Theory, News & General
Topic: Placing a variable annuity in a living trust?
Replies: 7
Views: 847

Re: Placing a variable annuity in a living trust?

I’m wondering about the pros and cons of: A. Having the revocable trust become the owner of the variable annuity -------------- vs. -------------- B. Leaving the annuity in my mother’s name and having it pass to her heirs via the beneficiary designation For avoiding probate, not many pros/cons of A...
by Klewles
Tue Oct 22, 2019 2:51 am
Forum: Personal Finance (Not Investing)
Topic: Scenarios where contributions/deductions HAVE to be made before end of 2019?
Replies: 3
Views: 492

Re: Scenarios where contributions/deductions HAVE to be made before end of 2019?

I think when you say "ACA subsidy," you are actually referring to the ACA Premium Tax Credit. According to 2019 Publication 4012 , page H-13, you have until April 15, 2020 to make IRA and HSA contributions that will reduce your income for purposes of improving the credit for tax year 2019: Premium T...
by Klewles
Sun Oct 20, 2019 1:08 am
Forum: Investing - Theory, News & General
Topic: what was vanguard like before the internet?
Replies: 74
Views: 8206

Re: what was vanguard like before the internet?

Started with Vanguard in the late 1980's. As others have said, phone and mail worked fine -- who knew there was any other way?

At the risk of sounding like a cranky old guy (which I am): the quality of service at VG was much better then than it is now.
by Klewles
Sun Oct 20, 2019 1:00 am
Forum: Investing - Theory, News & General
Topic: Pensions - Why Isn't Time In the Market a Part of the Formula?
Replies: 30
Views: 4208

Re: Pensions - Why Isn't Time In the Market a Part of the Formula?

Cash balance pension address this flaw by using a notional account balance and defined rate of return. The lump-sum option of CalPERS is essentially a cash-balance plan, with a notional balance (the defined employEE contributions plus interest) and a defined rate of return (6%). But it doesn't resu...
by Klewles
Sat Oct 19, 2019 3:57 am
Forum: Investing - Theory, News & General
Topic: Pensions - Why Isn't Time In the Market a Part of the Formula?
Replies: 30
Views: 4208

Re: Pensions - Why Isn't Time In the Market a Part of the Formula?

Do young workers who leave have the option to take a lump sum instead of waiting until 62 years old? Yes. Or they can leave the lump sum on deposit with CalPERS, up to age 70.5, and earn 6% interest on it (tax deferred). The decision to take the lump sum (plus interest) can be made at any time prio...
by Klewles
Fri Oct 18, 2019 4:31 am
Forum: Investing - Theory, News & General
Topic: "Vanguard Patented a Way to Avoid Taxes on Mutual Funds"
Replies: 140
Views: 10706

Re: "Vanguard Patented a Way to Avoid Taxes on Mutual Funds"

Hmm. Not sure how I feel about this. Minimizing taxes by minimizing churn is one thing. Minimizing taxes by engaging in heartbeats trades to exploit a loophole is another. This is not fundamentally any different than the tax gain harvesting and tax loss harvesting any taxpayer can do. Sorry to disa...
by Klewles
Fri Oct 18, 2019 4:06 am
Forum: Investing - Theory, News & General
Topic: "Vanguard Patented a Way to Avoid Taxes on Mutual Funds"
Replies: 140
Views: 10706

Re: "Vanguard Patented a Way to Avoid Taxes on Mutual Funds"

For reference, here is an excerpt from a legal article that illustrates how in-kind redemption works tax-wise. (The article regards it as an unfair loophole; whether one agrees or disagrees, the article is well-researched and provides good information.) The following example demonstrates this phenom...
by Klewles
Wed Oct 16, 2019 2:45 am
Forum: Personal Finance (Not Investing)
Topic: learning about consulting side job - taxes, etc.
Replies: 6
Views: 912

Re: learning about consulting side job - taxes, etc.

perl wrote:
Tue Oct 15, 2019 3:32 pm
Any recommended reading?
You might consider Nolo's book on self employment . It's been decades since my consulting days, so I can't comment on this new book (2018), but I recall getting good information from earlier Nolo books. (Hint: might be at your local library.)
by Klewles
Tue Oct 15, 2019 2:49 am
Forum: Personal Finance (Not Investing)
Topic: HSA plans and premiums post retirement.
Replies: 11
Views: 962

Re: HSA plans and premiums post retirement.

See also HSA's - I Didn't Know This! - Bogleheads.org : "...for individuals over age 65, premiums for Medicare Part A or B, Medicare HMO, and the employee share of premiums for employer-sponsored health insurance, including premiums for employer-sponsored retiree health insurance can be paid from a...
by Klewles
Sun Oct 13, 2019 3:44 am
Forum: Personal Finance (Not Investing)
Topic: Who has or Plans to Sign up for an IRS IP PIN
Replies: 14
Views: 1841

Re: Who has or Plans to Sign up for an IRS IP PIN

If I opt in for the IP PIN, and after a year or two don't like it for whatever reason, can I opt out for future years? I don't find anything that says how to opt out once I've opted in.
by Klewles
Sun Oct 13, 2019 3:20 am
Forum: Personal Consumer Issues
Topic: Airline compensation
Replies: 8
Views: 1633

Re: Airline compensation

The rules for compensation on EU carriers are in EC Regulation 261. Google it and you'll find plenty of articles as well as the regulation itself. It's worth being aware of whenever you fly to, from, or within Europe.
by Klewles
Mon Oct 07, 2019 4:01 am
Forum: Personal Investments
Topic: SPIA, RMD and Federal Tax
Replies: 15
Views: 1511

Re: SPIA, RMD and Federal Tax

Can a Boglehead please check my math and please explain do me what this means. I get numbers very close to yours, using https://www.hrblock.com/tax-calculator/#/en/te/aboutYou. Case 1, where you get 11,743, I get 11,987. Case 2, where you get 14,808, I get 15,058. Close enough to call it a match, I...
by Klewles
Mon Oct 07, 2019 3:24 am
Forum: Personal Investments
Topic: Gift of fund shares and subsequent cash payment between family members
Replies: 9
Views: 847

Re: Gift of fund shares and subsequent cash payment between family members

So Bob gives Mary a gift of $10,000 worth of IBM, with a cost basis of $5,000. Later, Mary gives Bob a gift of cash. Probably obvious, but I'll mention that there would be no tax implications if Bob and Mary are married. Mary's basis in the IBM stock would be $5,000, and the gift of cash to Bob wou...
by Klewles
Sat Oct 05, 2019 3:33 am
Forum: Personal Investments
Topic: Simulating a 10 year Treasury in ETF form
Replies: 5
Views: 685

Re: Simulating a 10 year Treasury in ETF form

I think the OP is asking how to mimic the 10-year constant maturity Treasury (CMT) that is quoted daily. "As close as possible" depends on your criteria. One choice would be to match the (McAulay) duration, which you do by weighting the durations of the ETFs. For example, today's quote of the 10-yea...
by Klewles
Wed Oct 02, 2019 1:15 am
Forum: Personal Investments
Topic: Bonds vs. paying off mortgage - comparing returns
Replies: 9
Views: 1514

Re: Bonds vs. paying off mortgage - comparing returns

Thank you! Which tax software do you use to do this? I use TurboTax every year -- something I can do with that? I use Taxact, but Turbotax is just as good. The desktop versions allow you to play "what if" by creating returns for test cases. Can't do that with online versions (I don't think). What I...
by Klewles
Tue Oct 01, 2019 4:29 am
Forum: Personal Investments
Topic: Bonds vs. paying off mortgage - comparing returns
Replies: 9
Views: 1514

Re: Bonds vs. paying off mortgage - comparing returns

ma21n2 wrote: But when I'm comparing the yield of buying bonds vs. paying off mortgage early, shouldn't I be using the marginal tax deduction benefit, similar to the way we use marginal tax rate when we do this sort of comparison (as opposed to effective tax rate)? For example, to calculate after-t...
by Klewles
Thu Sep 26, 2019 2:38 am
Forum: Personal Investments
Topic: Another ROTH IRA Conversion Question
Replies: 8
Views: 886

Re: Another ROTH IRA Conversion Question

At the risk of stating the obvious. You could choose to split the tIRA rollover: the basis (6K) to the Roth IRA, the remainder (24K) to the 403b. That would be completely tax free. In subsequent years you can roll from the 403b into the Roth IRA in amounts that are tax efficient, meaning in amounts ...
by Klewles
Tue Sep 24, 2019 2:53 am
Forum: Personal Investments
Topic: Rolling tIRA into 403b for asset protection
Replies: 3
Views: 400

Re: Rolling tIRA into 403b for asset protection

Thanks much for the responses. Some remarks: - I should have mentioned that the UC 403b does accept rollovers from tIRA. This is on page 14 of the SPD (link above): "The 403(b) Plan accepts rollovers of pretax distributions from ... traditional IRAs." - Good point about separated versus active parti...
by Klewles
Mon Sep 23, 2019 3:28 am
Forum: Personal Investments
Topic: Rolling tIRA into 403b for asset protection
Replies: 3
Views: 400

Rolling tIRA into 403b for asset protection

I'm considering rolling assets from a tIRA into the 403b plan of University of California (a past employer). Motivation is asset protection -- UC describes the plan as protected from creditors, which I'm guessing means it is an ERISA plan (see page 16, Assignment of Benefits, in https://ucnet.univer...