Search found 38 matches

by jlmitnick
Fri Feb 26, 2021 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Paying estimated tax on cap gains and then TurboTax
Replies: 3
Views: 269

Re: Paying estimated tax on cap gains and then TurboTax

Is there a difference between IRS Direct Pay, and EFTPS? And when to use one or the other?
by jlmitnick
Fri Feb 26, 2021 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Paying estimated tax on cap gains and then TurboTax
Replies: 3
Views: 269

Paying estimated tax on cap gains and then TurboTax

I’ve tried to get my w4’s as close as I can so that I neither owe tax nor get a refund. However this year, 2021, I will be selling some stock and realizing five figure long term cap gains. Rather than upping payroll withholdings, can I simply go to IRS direct pay and send in 15% of the cap gains as ...
by jlmitnick
Tue Feb 09, 2021 2:30 pm
Forum: Personal Investments
Topic: Possible to be mathematically superior to retire early for Roth conversions?
Replies: 22
Views: 1650

Re: Possible to be mathematically superior to retire early for Roth conversions?

No, this should not be possible, and it's easier to understand if we reframe the question. As I understand it, you're saying that by not working, you can 'free up' low/no tax tiers for Roth conversions, thus minimizing taxes on retirement dollars relative to doing conversions when working. So the c...
by jlmitnick
Tue Feb 09, 2021 9:45 am
Forum: Personal Investments
Topic: Possible to be mathematically superior to retire early for Roth conversions?
Replies: 22
Views: 1650

Possible to be mathematically superior to retire early for Roth conversions?

Let's say you are a high(ish) earner, and have also built up a sizeable tax deferred bucket, and will receive a small/medium pension. Is there a scenario in which you'd actually have more overall wealth over your lifetime by stopping work earlier so that Roth conversions in your 50s through mid 60s ...
by jlmitnick
Thu Feb 04, 2021 6:31 am
Forum: Investing - Theory, News & General
Topic: Super Savers & Asset Allocation
Replies: 73
Views: 6465

Re: Super Savers & Asset Allocation

Personally I would be more aggressive. If I’m still in accumulation phase and earning so much that I can save that much, there’s no reason to be conservative. A 50% drop in the stock market doesn’t affect me at all. If I’m about to retire, or already retired, I’d become more conservative to preserve...
by jlmitnick
Mon Feb 01, 2021 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Is it me or a lot of 2020 tax forms late this year?
Replies: 45
Views: 4135

Re: Is it me or a lot of 2020 tax forms late this year?

Does anyone know why this is? Shouldn't these things be "easy" to auto generate?
by jlmitnick
Sun Jan 31, 2021 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Additional medicare tax form 8959
Replies: 2
Views: 201

Re: Additional medicare tax form 8959

If one looks at their W-2, then one sees that FICA and medicare taxes apply to the wages in Box 3 and Box 5, respectively, and not your Box 1 wages. What does your W-2 have on it? If no W-2 (i.e. self-employed), then something similar happens. Spouse and I both are able to max out a 457 and 401k as...
by jlmitnick
Sun Jan 31, 2021 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Additional medicare tax form 8959
Replies: 2
Views: 201

Additional medicare tax form 8959

I've started putting info into TurboTax and it has some additional tax it's saying is from Form 8959, Additional Medicare Tax. I understand there is an additional .9% surcharge on income above $250,000 for married filing jointly. However, with maxing out our 457 and 401k plans, I would have thought ...
by jlmitnick
Sun Dec 27, 2020 5:21 am
Forum: Personal Investments
Topic: Long or short term cap gain on inherited stocks?
Replies: 5
Views: 343

Re: Long or short term cap gain on inherited stocks?

Great, thanks for the responses.

Second question - what about taxes on whatever dividends/income generated from the assets between date of death and actual receipt of the assets? How does that get paid and by whom?
by jlmitnick
Sun Dec 27, 2020 4:57 am
Forum: Personal Investments
Topic: Long or short term cap gain on inherited stocks?
Replies: 5
Views: 343

Long or short term cap gain on inherited stocks?

I know that there is a step up in basis to the date of death when inheriting assets. But say the person dies in July, but the assets are not actually received by the heirs until 9 months after the death because that’s just how long it takes to do the estate administration. If the heir then sells imm...
by jlmitnick
Sat Apr 25, 2020 7:35 am
Forum: Personal Investments
Topic: High yield savings or equivalent at fidelity?
Replies: 7
Views: 756

High yield savings or equivalent at fidelity?

Is there something at fidelity that’s equivalent to the fdic insured “high yield” savings accounts from other places like discover, ally, Marcus, etc that gives 1.4% or better?
by jlmitnick
Mon Apr 20, 2020 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Open an HSA even if ineligible to contribute?
Replies: 7
Views: 508

Re: Open an HSA even if ineligible to contribute?

This is from Fidelity's HSA Terms & Conditions: By selecting “I Agree” on the previous page, you: Represent that, unless this account is used solely to make transfers or rollover contributions , you are eligible to contribute to this HSA — specifically that you (1) are covered under a high-dedu...
by jlmitnick
Mon Apr 20, 2020 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Open an HSA even if ineligible to contribute?
Replies: 7
Views: 508

Open an HSA even if ineligible to contribute?

I'm trying to transfer my HSA from Optum to Fidelity. In this process Fidelity wants me to open an HSA. I'm not eligible to contribute to the HSA, and haven't been for a few years, since my new job doesn't offer a High deductible health plan. However, there is still money in there at Optum, so reall...
by jlmitnick
Sat Apr 18, 2020 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Pension vs. simply investing? Is pension even worth it at all?
Replies: 58
Views: 3938

Re: Pension vs. simply investing? Is pension even worth it at all?

Thanks for the responses, lot of good points. I think the buying in cheap in early years is an especially good one, since the final pension payout is based on your best years, but all those lower income years (where your required 7% contribution was thus lower), still get you the same additional yea...
by jlmitnick
Sat Apr 18, 2020 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Pension vs. simply investing? Is pension even worth it at all?
Replies: 58
Views: 3938

Pension vs. simply investing? Is pension even worth it at all?

So, regular state employees in my state are required to pay 7% into the pension, and the benefit is Average highest salary X .015 X number of years worked. If you started a little late, you basically have to wait until 65 to claim the pension under that formula. As an example, if you make $100,000, ...
by jlmitnick
Mon Mar 23, 2020 11:33 am
Forum: Personal Investments
Topic: Transferred in kind from E*TRADE to fidelity, can’t sell specific lots?
Replies: 5
Views: 227

Re: Transferred in kind from E*TRADE to fidelity, can’t sell specific lots?

So in other words, unless I fix something about the transfer, Fidelity will never consolidate my holdings on the account page despite the fact that I entered in the tax lots manually? Also why are the transferred shares considered “margin”? These days with broker obligations to track basis there mi...
by jlmitnick
Mon Mar 23, 2020 11:08 am
Forum: Personal Investments
Topic: Transferred in kind from E*TRADE to fidelity, can’t sell specific lots?
Replies: 5
Views: 227

Re: Transferred in kind from E*TRADE to fidelity, can’t sell specific lots?

So in other words, unless I fix something about the transfer, Fidelity will never consolidate my holdings on the account page despite the fact that I entered in the tax lots manually? Also why are the transferred shares considered “margin”?
by jlmitnick
Mon Mar 23, 2020 10:54 am
Forum: Personal Investments
Topic: Transferred in kind from E*TRADE to fidelity, can’t sell specific lots?
Replies: 5
Views: 227

Transferred in kind from E*TRADE to fidelity, can’t sell specific lots?

So I had 200 shares of VTI at E*TRADE that I purchased in 3 different lots last year. I decided to do an account transfer in-kind to Fidelity and open a fidelity brokerage. The account was successfully opened and the 200 shares appear in fidelity. Initially the cost basis was “unknown” to fidelity. ...
by jlmitnick
Tue Feb 11, 2020 7:42 am
Forum: Personal Investments
Topic: Roll-in sep ira for backdoor Roth or no?
Replies: 5
Views: 329

Roll-in sep ira for backdoor Roth or no?

Spouse and I are early/mid thirties and both work for a government which allows both 457 and 401k contributions. We are maxing all of that out, ie, $19,500 times 4 = $78,000 a year. (Also, one of those 4 accounts, my 401k, I am doing all as Roth 401k contributions, simply so we have tax diversificat...
by jlmitnick
Mon Jan 13, 2020 9:38 am
Forum: Personal Investments
Topic: SEP IRA into Traditional IRA?
Replies: 4
Views: 206

SEP IRA into Traditional IRA?

I have a SEP IRA from when I was self-employed. I’m no longer self employed, and don’t anticipate ever contributing to this SEP ever again. Is there any reason, or is it even possible, to change this account type to be a “traditional” Ira?
by jlmitnick
Tue Dec 17, 2019 4:40 pm
Forum: Personal Investments
Topic: Evaluating T Rowe MD tax free bond fund
Replies: 4
Views: 404

Evaluating T Rowe MD tax free bond fund

T Rowe Price has a Maryland Tax Free Bond fund with a .48% expense ratio which can be seen here: https://www.troweprice.com/personal-investing/tools/fund-research/MDXBX I’m in 24% fed and approx 7.6% state and local income tax bracket here in MD. I would like to invest in bonds in my taxable account...
by jlmitnick
Tue Nov 26, 2019 9:24 am
Forum: Personal Investments
Topic: Worth it to “clean up” account if it will result in capital gains?
Replies: 12
Views: 1503

Re: Worth it to “clean up” account if it will result in capital gains?

It is very likely that as a couple, the OP will be donating to charities in their lifetime. Instead of donating cash, they could donate a few shares of VTV and VUG. This would eliminate the capital gains taxes from selling shares of VTV and/or VUG. We periodically "top up" our Donor-Advis...
by jlmitnick
Tue Nov 26, 2019 7:54 am
Forum: Personal Investments
Topic: Worth it to “clean up” account if it will result in capital gains?
Replies: 12
Views: 1503

Worth it to “clean up” account if it will result in capital gains?

New wife and I each have a taxable brokerage from before being married. In hers she has VTV (vanguard value etf) and VUG (vanguard growth etf), and I just have VTI (vanguard total stock) in mine. Essentially VTI is VTV and VUG combined so in a sense we are already holding the same thing. I’m a big f...
by jlmitnick
Tue Nov 05, 2019 10:48 am
Forum: Personal Investments
Topic: Direct deposit straight into a mutual fund/etf?
Replies: 5
Views: 594

Direct deposit straight into a mutual fund/etf?

I’m wondering if it is possible to direct deposit ones paycheck directly into a brokerage and have it auto invest into a mutual fund/etf. Given that transaction fee commissions are essentially gone at most of the brokerages this seems like it may be a feasible thing. Does anyone know which brokerage...
by jlmitnick
Wed Sep 04, 2019 6:59 am
Forum: Personal Investments
Topic: Three fund portfolio but no choice for total stock market
Replies: 11
Views: 807

Three fund portfolio but no choice for total stock market

Hello all. My 401k has vanguard total bond market (vbtix) and vanguard total international (vtsnx), but there is no choice for “Total Stock Market”. It is divided into small cap (vscix), mid cap (vmcpx), and large cap (no vanguard here for some reason, so fidelity’s fxaix, looks like it tracks the s...
by jlmitnick
Tue Sep 03, 2019 10:18 am
Forum: Personal Investments
Topic: Possible to put too much into tax advantaged vs taxable?
Replies: 33
Views: 4336

Possible to put too much into tax advantaged vs taxable?

Spouse and I both have access to 457 and 401k each, so we can put in $19,000 times 4, ie $76,000. Plus $6000 into Roth IRAs for each. That’s $88,000 a year potentially into tax advantaged accounts. Also note that none of the accounts have any 401k match or anything like that. (Although all of the ac...
by jlmitnick
Fri Oct 08, 2010 2:19 pm
Forum: Personal Investments
Topic: Where to invest after filling up Roth?
Replies: 10
Views: 1498

Consider Solo 401k, SEP-IRA or SIMPLE-IRA for the self employed retirement plan. You can make 5K contributions to Roth or Traditional IRA on top of the contributions to the self employed plan. Solo 401k is not an option if the business has employees that are not owners or spouses of owners. SIMPLE-...
by jlmitnick
Fri Oct 08, 2010 1:50 pm
Forum: Personal Investments
Topic: Roth IRA - best way to set it and forget it?
Replies: 15
Views: 3585

If you were asking about the mechanics of how to set up a Roth IRA with Vanguard and "set it and forget it", it's very simple. If you go to the Buy/Sell area, they have an option for "Automatic Investment". Then what you can do is click "Maximize contribution", and then...
by jlmitnick
Fri Oct 08, 2010 1:37 pm
Forum: Personal Investments
Topic: Where to invest after filling up Roth?
Replies: 10
Views: 1498

To the best of my knowledge the annual contribution limit on IRAs only applies to the combination of traditional and Roth IRAs. So you can fully fund a Roth IRA and a SEP-IRA. Thanks for the info. This is interesting from the Vanguard site about SEP-IRA: Generally, employees must be allowed to part...
by jlmitnick
Fri Oct 08, 2010 1:26 pm
Forum: Personal Investments
Topic: Where to invest after filling up Roth?
Replies: 10
Views: 1498

Have you checked into a workplace SEP-IRA. Please see SEP on the Bogleheads Wiki . Look under the Competitive Alternatives section of the SEP Wiki page for a Vanguard comparison tool. Ah yes I was thinking about this. My father does a SEP-IRA. I'll start researching that. But briefly if you can ans...
by jlmitnick
Fri Oct 08, 2010 1:24 pm
Forum: Personal Investments
Topic: Where to invest after filling up Roth?
Replies: 10
Views: 1498

Right now, my spillover goes to TSM and VFWIX in my taxable account. Do you have any loans or other debt? - Scott No CC debt, student loans, or car payment. My only debt is around $63,000 on my mortgage for my condo at 5.5% for which I am already doing an extra $100 of principal each month. Even th...
by jlmitnick
Fri Oct 08, 2010 1:13 pm
Forum: Personal Investments
Topic: Where to invest after filling up Roth?
Replies: 10
Views: 1498

Where to invest after filling up Roth?

Hello everyone, I'm a self-employed single mid-twenties person who doesn't earn much, but I do have money in my budget left over after fully funding my Roth the $5000. What's the best "type" of account to save in after my Roth? Note this is not an AA question or what to buy IN the account ...
by jlmitnick
Fri Feb 19, 2010 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: son wants to sue for college money
Replies: 84
Views: 11863

Since you are not a trustee in a legal sense, he would be suing you personally, not you as trustee. As such, the whole idea of "locking the money away in a 529" doesn't make sense. If somehow your son got a judgment against you for X dollars, he would have a judgment against you for X doll...
by jlmitnick
Mon Oct 26, 2009 9:22 pm
Forum: Personal Investments
Topic: How to asset allocate when you have very little money?
Replies: 24
Views: 3667

To answer the emergency fund questions, the answer is, yes, I have a couple thousand in a checking account, from which I pay my bills. As to switching to Vanguard, will it be totally free? If I put in $3000, and set up biweekly contributions of >$100 to the TR fund, will I ever pay any fees or trans...
by jlmitnick
Mon Oct 26, 2009 12:13 pm
Forum: Personal Investments
Topic: How to asset allocate when you have very little money?
Replies: 24
Views: 3667

Re: How to asset allocate when you have very little money?

Bernstein sets out a recommendation for investors who are just starting out and don't have a lot of money to invest. See "Young Yvonne" starting on page 271. There's a nifty chart on page 275. You don't need to move your Etrade money to Vanguard, but it will be easier for record-keeping a...
by jlmitnick
Mon Oct 26, 2009 10:51 am
Forum: Personal Investments
Topic: How to asset allocate when you have very little money?
Replies: 24
Views: 3667

How to asset allocate when you have very little money?

Two questions: (background: 26 yrs old, no debt except condo) 1) If you only had $3000, what is the best way to allocate that? I've been reading a lot on Bogleheads, and I just finished Four Pillars of Investing by William Berstein, and it seems to me like I'd want at least 4-6 different asset class...
by jlmitnick
Thu Oct 22, 2009 12:52 pm
Forum: Personal Investments
Topic: Just starting out, compounding interest, and portfolio Q
Replies: 2
Views: 709

Excellent! Thanks for the welcome to the forum, and the guidance. Looking forward to lurking around here and learning a lot :)
by jlmitnick
Thu Oct 22, 2009 12:00 pm
Forum: Personal Investments
Topic: Just starting out, compounding interest, and portfolio Q
Replies: 2
Views: 709

Just starting out, compounding interest, and portfolio Q

I'm 26 years old, and just starting out. Finally finished grad school, and earning a meager amount of income that barely outpaces my expenses. I have an emergency fund, and things are stable and I'm ready to begin investing. So much of what I read says that starting out early is a key to retirement ...