Bogleheads.org

notoriousMG wrote: ↑Thu Mar 23, 2023 5:37 am How long do you think Vanguard CD rates will take to update to the hike increase? Any experience from the past?

The rates quoted are determined by buyers and sellers who trade daily. They now reflect all the information available. What you see is what you get.

dukeblue219 wrote: ↑Wed Mar 22, 2023 5:34 pm

lillycat wrote: ↑Wed Mar 22, 2023 4:21 pm

dukeblue219 wrote: ↑Wed Mar 22, 2023 2:33 pm

lillycat wrote: ↑Wed Mar 22, 2023 1:38 pm A cup of coffee costs $6 at SB? No.

No it doesn't. A regular coffee is $2.65 at SB and $2.19 at Dunkin.

Yes, it does. I witness my DH order a giant cup at the SB drive thru all the time and it’s $6.
I have no idea what coffee costs at DD.

Then it's not coffee he is ordering, but some sort of latte, cappuccino, frappucino, or maybe a nitro cold brew that would be $10 at any sort of local cafe.

The margins on those are probably phenomenal. Many years ago I met with a group of investors doing roll-ups of Dunkin stores in Boston. They had ~ 25 stores. The margins on coffee were around 95%; they would give donuts away (free donut coupon) just to get people into the store to buy coffee.

Will do good wrote: ↑Wed Mar 22, 2023 4:47 pm No. We over tip in America.

Only @ Lake Wobegon

But We Have Wall to Wall Floors in America

WapelloHawk wrote: ↑Wed Mar 22, 2023 3:17 pm To tip or not tip on a $5 coffee at Starbucks does not seem like a BH-type topic.

You’d be surprised at how banal the topics can get

9-5 Suited wrote: ↑Wed Mar 22, 2023 1:20 pm I always love when I meet up with someone from Europe and they just are in disbelief about how insane the pervasiveness of tipping culture is here. It’s like they walked into something that boggles their mind.

That's because the compensation system is different

(Crossposted with the above.) Most likely the IRS adjusted your tax return based on information they received associated with your SS number. It could be any number of things. Perhaps you failed to report all of your income. Perhaps you claimed a credit or deduction to which you weren't entitled. Perhaps you owe federal taxes for a prior year. Perhaps you entered in the amount of federal withholding wrong. Unlikely but possible that TT made a mistake if you have a very unusual tax situation. Perhaps something else. The most common type of error is a data entry error into TT. You could double check all of your dollar amount entries on every line of every form. You should receive a letter from the IRS addressed to you at the address you prov...

I don't know but I'd guess that the separation agreement is mostly boiler-plate language. I think you should feel free to suggest clarifying language to ensure that you get the matching amount. I have done this multiple times on "boiler-plate" offer letters and my ex-pat agreement. I was once able to suggest insertion of a no-loss clause on a relocation letter that included home purchase assistance - they guaranteed that I would not lose money on my house since we had just moved less than 18 months ago. Always ask.

edit: I've been on the other end of separation agreements and agreed to amendments in the name of fairness. In some cases I had to push back on HR because they tend to like to stick to policy.

Thanks... Looking in 2023 dollars using the same estimated 23% effective tax rate estimates the $224,550 in expenses requires $291,523 in income. I realize that this is simpler to not try to guess at inflation (your point). My concern is it may underestimate the income (and in turn the required assets to generate the income) four years from now. The same estimate with 3% inflation requires about $38,000/year more income which requires approximately another $1M in assets to fund it. See what I mean? I have found it easier and no less precise to simply do everything in real dollars and not attempt to forecast inflation rates. Like you, I do not assume that statutory tax rates will be changed until legislation is passed and signed. Yes, but t...

I used one of these to stop hammering from a sprinkler timer starting a watering cycle. One caution, there seems to be some variability from one to another. The first one I bought didn't work so I returned it for a replacement which did work.

I tip at a local coffee shop (local roaster). They have a self-service area with regular coffee for those of us who don't drink contaminated coffee drinks. The nominal price is less than a whole dollar amount so I normally round up and leave dollars in the slot provided.

You don't apply them. They are used to adjust your cost basis in remaining shares.

dfin wrote: ↑Wed Mar 22, 2023 10:01 am Thank you, that's rather unfortunate.

I found it pretty easy to do the calculations using AnyPIA. In fact, I was able to use this to discover that the amount on my determination letter was incorrect. After filing an appeal, they quickly made the adjustment before my benefit commenced in February.

Portfolio Watch?

Something in their system triggers this. Even when I applied for SS I got the same thing; they didn't update my online number until after I had received my determination letter. The local SS office near me has been pretty accessible by phone so I had a workaround.

I have found it easier and no less precise to simply do everything in real dollars and not attempt to forecast inflation rates.

Like you, I do not assume that statutory tax rates will be changed until legislation is passed and signed.

kchico wrote: ↑Tue Mar 21, 2023 7:27 pm

rob wrote: ↑Tue Mar 21, 2023 7:16 pm I don't see any way this works to be honest....

So Bogleheads don't use the 4% SWR?

maybe for a 25 year horizon - say at age 60+

Even that is a close one for many.

My multinational used to keep everything we didn't need for working capital at a US money center bank. Above a certain amount there we moved to various instruments like commercial paper, treasury bills and some overnight deals with majors in country (DB, HSBC). We still had quite a bit in country - some countries required me to keep it in a local bank; South Africa for example woudn't let us move anything out of SAF unless we were paying an invoice to a non-SAF vendor, including inter-company. I always kept local deposits in local currency (edit: some exceptions -- some customer contracts were written in dollars and the customers delivered dollars) but often hedged them back to Euros or Dollars.

zlandar wrote: ↑Tue Mar 21, 2023 7:20 pm I bought a pack of 4 licenses for version 7 years ago. It's money well-spent IMO.

Last sale on version 8 was $70 for a pack of 4 licenses or $35 for one license. I would wait for a sale.

right; they will make a good deal for free users to migrate them but it won't happen until they approach deprecation day.

Would not surprise me to see others like Malewarebytes do the same thing.

K72 wrote: ↑Tue Mar 21, 2023 5:52 pm If you are even just slightly techie, I've found the Linux dd command works well, for either a byte-byte clone or binary image. All you need to do is boot from a Linux live USB flash drive and run the command.

I think it can also be done with DISM in the Command Prompt; I used to have a GUI for DISM - not sure if I kept it.

Why would I make a QCD from a Roth? At best it is a wash. If you itemize, you would save money by treating the Roth as non-taxable income, and give money from your other taxable income (e.g., Social Security or pension). The reason for my post was to show that one can indeed make a QCD from a Roth according to the IRS regulations. Probably because it makes no sense there was doubt that the IRS would allow someone to do it. If a Roth is inherited by a non-spouse isn't there a clock on distributing out the assets? Whereas taxable assets would step up and not be subject to a distribution clock. As you've pointed out, there are situations where it makes sense to withdraw from a Roth. But in that case, why go through the filing and documentatio...

Agent 99 wrote: ↑Tue Mar 21, 2023 4:33 pm

prd1982 wrote: ↑Tue Mar 21, 2023 12:19 pm Why would I make a QCD from a Roth? At best it is a wash. If you itemize, you would save money by treating the Roth as non-taxable income, and give money from your other taxable income (e.g., Social Security or pension).

The reason for my post was to show that one can indeed make a QCD from a Roth according to the IRS regulations. Probably because it makes no sense there was doubt that the IRS would allow someone to do it.

If a Roth is inherited by a non-spouse isn't there a clock on distributing out the assets? Whereas taxable assets would step up and not be subject to a distribution clock.

MechDoc wrote: ↑Tue Mar 21, 2023 3:47 pm (disregarded entity does not make much sense because I do not know what it is!)

It means that for tax purposes the IRS doesn't consider the entity to be real. all activity in the entity is straight passthrough to the individual. For example, if you have an LLC, even if it has an EIN if it is a passthrough it is reported on your personal 1040. There is no tax return for the entity. Fairly common with single member LLCs.

Mine shows up in Portfolio Watch. I have no idea if it is accurate but it looks right.

You can see it all in Portfolio Watch

I would start with some of the publications that are available on the IRS site. Books might be good after that but I would be careful to (a) make sure it is recent and (b) always verify what they say against IRS publications. The IRS doesn't give a whit about what the books say when they audit you.

I'd also caution to take info you get on the internet with a grain of salt. I have found that many sites are either wrong on the law or contain dated information. It can be very hard to sort out. A case in point, several years ago I had an opportunity to take a very large 1341 deduction (Claim of Right). There was a lot of misinformation on this online. I finally ended up reading the code section to validate what the law actually said.

I will likely shift to the paid version. I've been using Macrium for years.

MrJedi wrote: ↑Tue Mar 21, 2023 7:23 am The ironic thing is that people generally want their taxable accounts to give off LESS dividends to protect from dividend tax drag every year.

that would be me

secondopinion wrote: ↑Tue Mar 21, 2023 1:32 pm I stand corrected that emergencies cannot be major and all at once. But in this case, that is a complete exhaustion of funds. More or less, this is not something an emergency fund would have helped regardless. In fact, it helped probably that stock growth has occurred over all of those years.

There is always a risk of getting hit with a massive bill, but the question is whether it is riskier not to invest even if it does hit.

That's exactly why we ditched our EF in our early 40s

Mike Scott wrote: ↑Tue Mar 21, 2023 10:19 am There should be no difference in access. Plan on a minimum of two-three business days for transfers to your linked bank account which is pretty standard timing for transfers between any linked accounts.

I've seen a lot of reports with much faster ACH. I know if I issue instructions in the morning, it will hit my USAA account the next business day. From what I've seen in anecdotal reports, it seems to depend on the destination bank. That said, I wouldn't cut it close if the timing was really an issue. I can't imagine a scenario where I would need cash in the bank within one day but who knows.

See part I bolded above. It seems you made a risk assessment and determined job loss was not a risk for you, or at least not a risk you felt the need to insure against. I'm glad this worked out for you, but just because it worked for you doesn't mean it will for someone else. More to the point, in my case, I'd never even heard of it. I claim no process and no success. I never heard anybody use the phrase "emergency fund" until Dave Ramsey, and if I had been thinking I was planning for an emergency, it would never have occurred to me that the emergency in question is a period of unemployment (duration of which obviously I have to predict). I suppose, and I have for a long time, that everybody has to choose his own emergency. I don...

MechDoc wrote: ↑Tue Mar 21, 2023 10:51 am Ok, so arm lengths transactions issues favors the argument that this doesn't pass the sniff test. So let's say the asset remains on the company books, however the IRS feels that it has no value (100% appreciation). What is to stop someone from using the asset for personal use after one year?

There are many aspects of tax law that depend on voluntary compliance.

jplee3 wrote: ↑Tue Mar 21, 2023 10:26 am

Chuck wrote: ↑Tue Mar 21, 2023 9:50 am I was going to +1 "on the back" but you can also install a hitch receiver on the front, if you want to mount a winch, have a good tow/recovery point, use a cargo thing on the front, etc. I've read that it can be easier to park a trailer if you hitch it to the front, but I've never thought about it or tried it.

I never thought of that either - sounds like a great option and makes perfect sense, especially trying to park a trailer or adjust/align it in a tight spot perhaps.

https://www.curtmfg.com/trailer-hitches ... %20control.

I have never done ARK or NY but I have done MD & DE part-year returns in Taxslayer. It allows for splitting of income. Our configuration defaults to MD resident so in order to do part-year we have to delete the FY resident MD and then add MD part year and DE part-year in order to get the proper forms. The income has to be allocated manually in most cases.

gotoparks wrote: ↑Mon Mar 20, 2023 11:34 pm I think Vanguard just changed their website recently. Is different for me. I just go with the flow.

it has been a rolling change. Not all account holders affected at the same time. Until early last week I could still see the old Balances and Holdings. It is gone now. They must have rolled it to my cohort last week.

Chuck wrote: ↑Tue Mar 21, 2023 9:50 am I was going to +1 "on the back" but you can also install a hitch receiver on the front, if you want to mount a winch, have a good tow/recovery point, use a cargo thing on the front, etc. I've read that it can be easier to park a trailer if you hitch it to the front, but I've never thought about it or tried it.

I have seen pickups around here with a hitch receiver in front and back. A lot of boating around here.

Firemenot wrote: ↑Tue Mar 21, 2023 9:40 am At my company if you are eligible for the NQDC plan, they put the 401k match “true up” payments into it at the end of the year. If you’re not eligible, you lose out on the money. This comes up if you max out your 401k plan prematurely. Which for me always happens as I don’t know what my bonus will be and they apply 401k percentage to bonus.

Not an expert but I think it can also result from top-heavy rules. I seem to recall that was my issue; but I may be confusing that with the after-tax contributions that were in the account.

lepa71 wrote: ↑Tue Mar 21, 2023 9:18 am As the title says. I'm wondering if it is ok to park cash that is designated for cash reserve in Vanguard VMFXX as I may need them in a couple of months.
My Emergency Fund should be between 20K-30K and now I have about 40K. I may have some expenses coming in the next couple of months for property tax for rentals. That would be between 10K -15K. So I was thinking to park it in Vanguard VMFXX and earn some extra money by parking it there.
Is it ok to put maybe 30K? Not really investing but when need it then pull it out.
Some general questions. As interest is higher than my back. Should I keep a portion of the Emergency Funds in VMFXX in the current market?

Yes, it is OK.

Since the distribution happened this year you will likely get that 1099-R next year. Box 7 on the 1099-R will have a code in it telling you and the IRS the reason for the distribution. Below is a link with all the distribution codes. You may want to call the 401kk provider and ask what code they intend to put in Box 7. My guess it will either be "8" or "P". This will tell you which year to make the correction. https://support.taxslayer.com/hc/en-us/articles/360015900291-What-do-the-distribution hi-codes-in-Box-7-of-my-1099-R-mean- To be clear, you mean since the first excess contribution is going to be reversed in 2023, I will get the 1099R in 2024? But, I need to do the reporting as you described above with my 2022 tax...

Since the distribution happened this year you will likely get that 1099-R next year. Box 7 on the 1099-R will have a code in it telling you and the IRS the reason for the distribution. Below is a link with all the distribution codes. You may want to call the 401kk provider and ask what code they intend to put in Box 7. My guess it will either be "8" or "P". This will tell you which year to make the correction. https://support.taxslayer.com/hc/en-us/articles/360015900291-What-do-the-distribution hi-codes-in-Box-7-of-my-1099-R-mean- To be clear, you mean since the first excess contribution is going to be reversed in 2023, I will get the 1099R in 2024? But, I need to do the reporting as you described above with my 2022 tax...

Normally there is a section for Retirement income. I always enter the 1099-R as it appears on the form.

celia wrote: ↑Tue Mar 21, 2023 7:24 am So, I’ll agree with OP to not believe everything you read online.

For tax info, if I cannot corroborate from IRS documents I pretty much ignore online info.

123 wrote: ↑Tue Mar 21, 2023 12:14 am Smoke and carbon monoxide alarms generally need batteries changed once a year.

One of the most damaging things in a home is water. It's important to stay alert for leaks, drips, puddles, and the smell of moisture (wet plaster). If something is wet find out why and decide whether some corrective action is needed. Water leaks can involve the pressurized supply lines as well as drainage/sewer plumbing.

One of the first things I do when I buy a house is identify and tag water shutoffs. If the main shutoff is not in a convenient place I have it moved.

prd1982 wrote: ↑Mon Mar 20, 2023 7:57 pm I would just let the executor do it. You could decide to remove them.

This

I have had uhaul do a couple hitches but with mixed results. Maybe check their on line reviews. Dealer may be best but as you can imagine it will be more expensive. I had a poor wiring job done years ago by uhaul and some hitches may require cutting plastic trim on / under rear bumper so you want it to look well done. The hitch install can be fairly standard but the trailer wiring might take a little know how. If your car is pre wired for trailer wiring it will be easier. If you have a decent mechanic you can buy parts on line and have them do it. Etrailer.com has hitches and wiring kits. Check them out. The internet and YouTube are your friend. I bought a hitch from trailer for my RAV. Installed it myself and then when car was in for regu...

a few people, yes. Search the forum and a couple of unhappy folks will pop up.

retired recently wrote: ↑Mon Mar 20, 2023 3:59 pm I will ask him to send a follow up email to HR to ask if it is a Roth. Presumably, if not a Roth, then it should be able to be rolled over into a Traditional IRA.

Really need to find out what the plan is specifically. States have a myriad of plans. For 2022, probably nothing to do regarding IRA rollover since he probably has had the money for more than 60 days.

On the other hand, it isn’t too late to make an IRA contribution which should be doable regardless of what the plan is if he has qualifying compensation and hasn’t already contributed to the limit.

Gryphon wrote: ↑Mon Mar 20, 2023 3:44 pm

retired recently wrote: ↑Mon Mar 20, 2023 3:30 pm We did not look around last time to make sure a brokerage would let him open a plan with such a small amount in it. This time it will be a couple thousand I imagine.

At Fidelity, there's no minimum for a rollover IRA.

Since we don't know what the employer plan was, we don't know if it could be rolled over.

MarkNYC wrote: ↑Mon Mar 20, 2023 3:15 pm Here's my guess. Regardless of the specific type of retirement plan, since the required contributions were returned to him in the same year, the net amount deferred from taxable wages for the year was zero, as reflected on the W-2. So the distribution of the amount contributed was deemed not taxable. Only the $1 interest included with the distribution was taxable. And the 10% penalty only applies to the $1 taxable amount of the distribution.

I thought of that as well but when I've seen cases like that before there wasn't a 1099 since the backing out essentially un-did the whole thing as if it never happened.

David S wrote: ↑Mon Mar 20, 2023 2:36 pm

jebmke wrote: ↑Mon Mar 20, 2023 1:47 pm

David S wrote: ↑Mon Mar 20, 2023 1:35 pm I would be interested in knowing how an employer can require participation in the 401k. I thought they could only do that after providing the opportunity to opt out or to change the participation amount.

That's why I want to know what is on the W2. This may not be a 401(k) -- in fact, OP doesn't claim it is.

You're right. I misread the reference to his online search.
I'm still curious how this can be mandated.

State retirement plans are almost always mandated. They often are accompanied by elective deferrals.

retired recently wrote: ↑Mon Mar 20, 2023 2:20 pm The employer is the Employees' Retirement System of XX State. I am not sure what type of deferred plan it is and son has very limited info and no desire to push on HR as he is happy to have this job. I tried to get him to opt out last year and he was not interested til I told him he would get hit with a penalty this year and then again in 2023. Obviously he is happy I am wrong. As someone mentioned, I thought you could opt out but they have indicated it is not an option.

There is nothing in Box 12 or Box 14 on the W2. On Line 13 the Ret Plan box is marked.

Just a guess but Box 1,3 and 5 on the W2 are probably the same amount so it was an after-tax deduction maybe. The pay stubs might indicate.