Search found 7353 matches

by Bob's not my name
Sun Jan 14, 2018 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: A half year at full pay or a full year at half pay?
Replies: 49
Views: 4654

Re: A half year at full pay or a full year at half pay?

You should definitely deny your children the adventure, learning, and broadening experience of a sabbatical so they can stay in the same school their whole lives, as God intended, because all learning happens in school. I'm sure you've done the math right, but do look very carefully at how taxes wi...
by Bob's not my name
Mon Jan 08, 2018 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: MA Short Term Capital Gains Rate (12%) and Stock Options
Replies: 7
Views: 385

Re: MA Short Term Capital Gains Rate (12%) and Stock Options

It is wise to investigate the tax code of a destination state before accepting a job, so good job on that. MA's STCG rate is anomalous. However, you appear to be fixated on, what, a 3% difference in how your current compensation is taxed in your high tax state vs. how it will be taxed in MA? That's ...
by Bob's not my name
Mon Jan 08, 2018 7:42 am
Forum: Forum Issues and Administration
Topic: Misuse of adverse when averse was meant
Replies: 145
Views: 5763

Re: Misuse of adverse when averse was meant

Potential employers want to know about my prior experience and previous experience, which are the best kinds of experience. (They also want to know that I have good communication skills.) They also use the term "demonstrated experience", which reveals that they are bureaucrats stringing together wor...
by Bob's not my name
Wed Jan 03, 2018 5:16 pm
Forum: Investing - Theory, News & General
Topic: Americans spend $1 billion annually in unnecessary state tax
Replies: 147
Views: 21480

Re: Americans spend $1 billion annually in unnecessary state tax

Please note that the thread is six years old, so check your state's current tax law to see if it has changed.
by Bob's not my name
Tue Jan 02, 2018 6:49 am
Forum: Personal Finance (Not Investing)
Topic: Embarrassment Preventing Retirement Work: A factor for you?
Replies: 131
Views: 11913

Re: Embarrassment Preventing Retirement Work: A factor for you?

Since you are known to be successful, you would elevate the standing and self-respect of your new work colleagues. Hopefully you would also displace an underperforming employee and make your employer more profitable.
by Bob's not my name
Fri Dec 29, 2017 9:05 pm
Forum: Forum Issues and Administration
Topic: anybody else notice that the timestamp of posts is off by 1 hour?
Replies: 12
Views: 913

Re: anybody else notice that the timestamp of posts is off by 1 hour?

nisiprius, please have my posts timestamped one year earlier than actual. I want to win that stock market prediction competition thingy.
by Bob's not my name
Fri Dec 29, 2017 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: Will I be taxed again on my 401k?
Replies: 28
Views: 1760

Re: Will I be taxed again on my 401k?

Strictly speaking, PA doesn't tax your 401k contribution, it taxes your income. The maximum $18,500 401k contribution requires $19,070 of gross income, which PA taxes at 3% = $570, leaving $18,500.
by Bob's not my name
Fri Dec 29, 2017 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: Will I be taxed again on my 401k?
Replies: 28
Views: 1760

Re: Will I be taxed again on my 401k?

Yes if you make all of your 401k contributions in PA and all of your 401k withdrawals in NC then you will pay 3% on contributions and 5.5% on withdrawals for a total of 8.5%, which is the same as doing both in MD and better than doing both in NYC or Oregon and worse than doing both in Texas or Illin...
by Bob's not my name
Fri Dec 29, 2017 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Bracket going from 15% to 22%. Should I change type of account to invest in for retirement?
Replies: 19
Views: 1652

Re: Tax Bracket going from 15% to 22%. Should I change type of account to invest in for retirement?

I'm unclear on why a $5,500 Roth contribution converts to a $5,500 403b contribution. At a 30% tax rate a $5,500 Roth contribution consumes $7,857 of gross income, so it is equivalent to a $7,857 403b contribution. However, the $7,857 is not accurate because a portion of the gross income falls into ...
by Bob's not my name
Fri Dec 29, 2017 7:24 pm
Forum: Investing - Help with Personal Investments
Topic: Will I be taxed again on my 401k?
Replies: 28
Views: 1760

Re: Will I be taxed again on my 401k?

I think only Pennsylvania taxes 401k contributions (NJ and MA tax IRA contributions, and NJ taxes 403b contributions). More than half the states have no income tax or have a tax but exempt all or a portion of retirement plan withdrawals. In many states you will want to study these exemptions carefu...
by Bob's not my name
Fri Dec 29, 2017 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Will I be taxed again on my 401k?
Replies: 28
Views: 1760

Re: Will I be taxed again on my 401k?

My undestanding is that your contributions to a pretax 401(k) plan reduce your taxable wages for federal income tax purposes only, not social security, Medicare, or state taxes. When you withdraw, you would only have to pay federal income tax and not other taxes. TravelforFun In almost every state ...
by Bob's not my name
Fri Dec 29, 2017 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: Will I be taxed again on my 401k?
Replies: 28
Views: 1760

Re: Will I be taxed again on my 401k?

I think only Pennsylvania taxes 401k contributions (NJ and MA tax IRA contributions, and NJ taxes 403b contributions). More than half the states have no income tax or have a tax but exempt all or a portion of retirement plan withdrawals. In many states you will want to study these exemptions careful...
by Bob's not my name
Fri Dec 29, 2017 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 494

Re: How to calculate tax savings of employer health insurance?

Also a question would be are all the medical premiums averse to tax? From what I read its 7.5% of your AGI max. Something else I would look into. Not sure what you mean by "averse" but I think you're referring to itemized deductions that are not relevant here. Moreover, 7.5% of AGI is the threshold...
by Bob's not my name
Fri Dec 29, 2017 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 494

Re: How to calculate tax savings of employer health insurance?

Yeah, I think you're considering it correctly and I'm the one upside down. If you forego the $927 premium your after-tax income increases by $667. But now I'm curious about this high deductible. Does the employer offer a Health Savings Account with that high deductible plan? Yes to the high deducti...
by Bob's not my name
Fri Dec 29, 2017 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 494

Re: How to calculate tax savings of employer health insurance?

It does look like the 401k and health will help keep taxable below the Roth threshold. The Roth threshold is based on MAGI, not taxable income. Otherwise, your statement is correct. These are important things to be clear on. AGI is at the bottom of page 1 of your 1040. (MAGI is the same or perhaps ...
by Bob's not my name
Fri Dec 29, 2017 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 494

Re: How to calculate tax savings of employer health insurance?

Yeah, I think you're considering it correctly and I'm the one upside down.

If you forego the $927 premium your after-tax income increases by $667.

But now I'm curious about this high deductible. Does the employer offer a Health Savings Account with that high deductible plan?
by Bob's not my name
Fri Dec 29, 2017 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 494

Re: How to calculate tax savings of employer health insurance?

Non-covered spouse (me) will contribute to Roth IRA...unless tIRA makes sense? In 2017, I did a backdoor Roth. I suggest both spouses make direct Roth IRA contributions in 2018. If you can't afford the $11,000 ($5,500 each), which consumes $15,000 of gross income, I would prioritize the 401k. If on...
by Bob's not my name
Fri Dec 29, 2017 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 494

Re: How to calculate tax savings of employer health insurance?

OK so your marginal rate on insurance premiums is: 22% federal 4.73% state + county 1.45% Medicare tax --------------- 28.18% $927/month pre-tax = $1291 post-tax equivalent And I agree with cherijoh, while also applauding your interest in calculating true cost. $927/month = $11,000/year is quite hig...
by Bob's not my name
Fri Dec 29, 2017 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 494

Re: How to calculate tax savings of employer health insurance?

OK thanks for the details. So: 22% federal marginal rate. Over the SS threshold so no SS at the margin. 1.45% Medicare tax. Is your county tax going up? The Indiana Department of Revenue announced that the counties of Allen, Clinton, Fountain, LaGrange, Marion, Sullivan and Vermillion have changed t...
by Bob's not my name
Fri Dec 29, 2017 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 494

Re: How to calculate tax savings of employer health insurance?

The 22% MFJ bracket tops out at $165,000 taxable income. Assuming one maxed out 401k, the standard deduction, and maybe $2,500 of pre-tax health, dental, vision, and disability insurance premiums and FSA contributions, that would equate to $210,000 gross income.
by Bob's not my name
Fri Dec 29, 2017 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 494

Re: How to calculate tax savings of employer health insurance?

I'm starting to get confused. Let's stick to 2018. What will your gross income be? Will each spouse be under the $128,700 SS limit? Is only one spouse covered by an employer retirement plan? (The max contribution is $18,500, not $18,000.) Will the non-covered spouse make a deductible TIRA contributi...
by Bob's not my name
Fri Dec 29, 2017 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 494

Re: How to calculate tax savings of employer health insurance?

Well, for starters you are not in the 24% bracket. Your taxable income could be about $65,000 less than your gross.
by Bob's not my name
Fri Dec 29, 2017 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax savings of employer health insurance?
Replies: 25
Views: 494

Re: How to calculate tax savings of employer health insurance?

I may be misunderstanding what you're after, but I think your math is both upside down and incomplete. The incomplete part is that pre-tax health, dental, and vision insurance premiums withheld from your pay are exempt from federal and state income tax, SS tax, Medicare tax, and ACA tax. The upside ...
by Bob's not my name
Thu Dec 28, 2017 2:34 pm
Forum: Investing - Theory, News & General
Topic: What would you do in our situation: Roth 403b or Traditional 403b?
Replies: 57
Views: 1851

Re: What would you do in our situation: Roth 403b or Traditional 403b?

continue to utilize the Roth IRA contributions as well If you want to get really fancy you can do a state-deductible back door Roth IRA. This is only possible if you are eligible to to deduct tIRA contributions and if the extant tIRAs you mention are in only one spouse's name. In that situation the...
by Bob's not my name
Thu Dec 28, 2017 2:10 pm
Forum: Investing - Theory, News & General
Topic: What would you do in our situation: Roth 403b or Traditional 403b?
Replies: 57
Views: 1851

Re: What would you do in our situation: Roth 403b or Traditional 403b?

Presumably their heirs would pay a relatively high marginal rate on inherited tIRA distributions (because the heirs would still be working). Continued tax mitigation would include converting to Roth in the 0% marginal rate years of assisted living. I did this as trustee and everyone inherited Roth ...
by Bob's not my name
Thu Dec 28, 2017 1:49 pm
Forum: Investing - Theory, News & General
Topic: What would you do in our situation: Roth 403b or Traditional 403b?
Replies: 57
Views: 1851

Re: What would you do in our situation: Roth 403b or Traditional 403b?

Trying to establish only 2018 marginal rate, which we ought to have done at the beginning of the thread. State tax on future withdrawals depends on state of residence at time of withdrawal, state tax rate, state treatment of IRA withdrawals, and, in this instance and if the OP lives in IA until deat...
by Bob's not my name
Thu Dec 28, 2017 12:42 pm
Forum: Investing - Theory, News & General
Topic: What would you do in our situation: Roth 403b or Traditional 403b?
Replies: 57
Views: 1851

Re: What would you do in our situation: Roth 403b or Traditional 403b?

OK so to keep the discussion focused on what you should do in 2018, your 2018 numbers look like this: $120,000 gross earned income (which is not W2) - $5,000 pre-tax health, dental, vision, and STD insurance premiums and FSA contributions? (I'm guessing) - $49,000 401k/403b contributions - $24,000 s...
by Bob's not my name
Thu Dec 28, 2017 12:02 pm
Forum: Investing - Theory, News & General
Topic: What would you do in our situation: Roth 403b or Traditional 403b?
Replies: 57
Views: 1851

Re: What would you do in our situation: Roth 403b or Traditional 403b?

Forgive my confusion on this. I see $132,000 gross income, not W2 income, but apparently the "gross" is "gross earned" and does not include the investment income? After $49,000 of deductible 401k/403b contributions and, say, $5,000 of pre-tax health, dental, vision, and STD insurance premiums and FS...
by Bob's not my name
Thu Dec 28, 2017 10:50 am
Forum: Investing - Theory, News & General
Topic: What would you do in our situation: Roth 403b or Traditional 403b?
Replies: 57
Views: 1851

Re: What would you do in our situation: Roth 403b or Traditional 403b?

We've been just a hair over the new $24K standard deduction in itemized deductions the past couple of years. The good news is, we have the ability to pay it off, or keep it. The payments on principal and interest are so low ($702 per month), it's hard for me to see how paying off $128K now, and inv...
by Bob's not my name
Thu Dec 28, 2017 10:03 am
Forum: Investing - Theory, News & General
Topic: What would you do in our situation: Roth 403b or Traditional 403b?
Replies: 57
Views: 1851

Re: What would you do in our situation: Roth 403b or Traditional 403b?

Not much detail provided on the taxable account, which is out sized compared to most. Since it was not mentioned as a source of current income (and corresponding tax woe), suspect it may be locked up with long term capital gains. If so, then that would actually be a very good vehicle for passing on...
by Bob's not my name
Thu Dec 28, 2017 9:13 am
Forum: Investing - Theory, News & General
Topic: What would you do in our situation: Roth 403b or Traditional 403b?
Replies: 57
Views: 1851

Re: What would you do in our situation: Roth 403b or Traditional 403b?

Also, Iowa favors traditional a bit because taxpayers 55 or older can exclude $6,000 each of IRA distributions or conversions. Discussed here: https://tax.iowa.gov/expanded-instructions/pension-retirement-income-exclusion-0 I guess this exclusion will be used by one spouse for pension distributions ...
by Bob's not my name
Thu Dec 28, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: What would you do in our situation: Roth 403b or Traditional 403b?
Replies: 57
Views: 1851

Re: What would you do in our situation: Roth 403b or Traditional 403b?

the consensus has been to let that capital work for us in other investments that have, over time, been providing a better rate of return. consensus /kənˈsɛnsəs/ noun 1. general or widespread agreement Really? You have $1.4M in taxable investments, so called because they are taxable, and you are con...
by Bob's not my name
Thu Dec 28, 2017 5:13 am
Forum: Investing - Help with Personal Investments
Topic: Brokered CD death put
Replies: 5
Views: 903

Re: Brokered CD death put

sport wrote:
Wed Dec 27, 2017 11:43 pm
A similar question: What if the CD is owned by a living trust. If the grantor/trustee of the trust dies, can the put be exercised?
Yes/No.

I (as trustee) have exercised death puts for deceased grantors.

The trustee is not the owner and is succeeded.
by Bob's not my name
Sat Aug 19, 2017 8:00 am
Forum: Investing - Help with Personal Investments
Topic: Introduction and a Question: IRA vs 401k Tax benefits
Replies: 13
Views: 1212

Re: Introduction and a Question: IRA vs 401k Tax benefits

You have it right, except that you use AGI and gross interchangeably. AGI is less than gross. The difference may make no difference in your case with respect to TIRA deductibility, but note that your AGI excludes your 401k and 403b contributions and any FSA or health, dental, or disability insurance...
by Bob's not my name
Wed Aug 16, 2017 7:32 pm
Forum: Investing - Help with Personal Investments
Topic: TSP Loan vs Credit union Loan
Replies: 24
Views: 1523

Re: TSP Loan vs Credit union Loan

They're essentially equivalent. Either way, your wallet pays back the principal and interest. You are correct that your TSP comes out about the same whether you borrow from it or not. So the outcomes for both your wallet and your TSP are roughly the same. I think you are overlooking the fact that yo...
by Bob's not my name
Sun Jul 02, 2017 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: Student loan payoff vs emergency fund or continue investing
Replies: 20
Views: 2103

Re: Student loan payoff vs emergency fund or continue investing

Thesaints wrote:see repaying the loan as an investment with a guaranteed 5.5% return.
Investment income is subject to a number of taxes for an investor in this bracket. Therefore, repaying the loan is like an investment with a guaranteed 10% return.
by Bob's not my name
Tue Jun 27, 2017 4:06 am
Forum: Investing - Help with Personal Investments
Topic: ESPP Question [Employee Stock Purchase Plan]
Replies: 6
Views: 865

Re: ESPP Question [Employee Stock Purchase Plan]

Awesome. Sell immediately every quarter. The tax issue is a red herring. See thefinancebuff's column on ESPP.

15% discount = 17.6% gain at each sale

Investment period is on average 1.5 months.

Annualized gain is 267%.
by Bob's not my name
Sat May 06, 2017 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Wife getting PhD, how to fund? (student vs 401k loan vs home equity, etc)
Replies: 50
Views: 3928

Re: Wife getting PhD, how to fund? (student vs 401k loan vs home equity, etc)

Because it's post-graduate these would start accruing interest immediately Post-graduate is what you do after the PhD. Look into whether those fees qualify for the Lifetime Learning Credit and make sure your income is below the eligibility phaseout. Also consider how you can get the most credits --...
by Bob's not my name
Sat Apr 22, 2017 3:22 am
Forum: Personal Finance (Not Investing)
Topic: Skip ESPP? - 5% discount on fix date with holding period of 6 months
Replies: 37
Views: 3338

Re: Skip ESPP? - 5% discount on fix date with holding period of 6 months

For a $107,000 annual salary and a 15% of gross salary limit on contributions (both numbers are assumptions), the quarterly contribution is: $107,000 x 15% x 0.25 = $4,000 Assuming the stock is dead flat for the six month holding period, the quarterly profit is: (5/95) x $4,000 - $30 transfer fee = ...
by Bob's not my name
Thu Apr 20, 2017 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Skip ESPP? - 5% discount on fix date with holding period of 6 months
Replies: 37
Views: 3338

Re: Skip ESPP? - 5% discount on fix date with holding period of 6 months

You should always sell immediately. tfb's article on ESPPs explains why.
by Bob's not my name
Wed Apr 19, 2017 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Skip ESPP? - 5% discount on fix date with holding period of 6 months
Replies: 37
Views: 3338

Re: Skip ESPP? - 5% discount on fix date with holding period of 6 months

Using the $107,000 salary/$4,000 ESPP per quarter example listed previously, another way to ask this question is: "Am I comfortable holding $8k worth of company stock for the duration of my employment, in exchange for $170/quarter of free money?" My company's stock tracks the S&P 500 fairly closely...
by Bob's not my name
Sun Apr 16, 2017 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Should I contribute to traditional IRA?
Replies: 14
Views: 1581

Re: Should I contribute to traditional IRA?

I did not say that. I said OP has only one TIRA. His wife's situation is unequal but separate. By which I meant that your wife has two TIRAs, one of which is pre-tax, and large. And that her situation has no effect on your conversion of your IRA to Roth. The I in IRA stands for individual; your IRA ...
by Bob's not my name
Sat Apr 15, 2017 6:42 am
Forum: Personal Finance (Not Investing)
Topic: Skip ESPP? - 5% discount on fix date with holding period of 6 months
Replies: 37
Views: 3338

Re: Skip ESPP? - 5% discount on fix date with holding period of 6 months

A program this stingy is hard to make a case for. Without a holding period, the 5.26% immediate return becomes about 50% annualized, because your payroll deductions are on average 1.5 months before purchase. The six-month holding period nixes that though, since your money is willy nilly invested for...
by Bob's not my name
Wed Apr 12, 2017 4:05 pm
Forum: Investing - Help with Personal Investments
Topic: Should I contribute to traditional IRA?
Replies: 14
Views: 1581

Re: Should I contribute to traditional IRA?

We presently have all at Vanguard: $7500 in my Traditional IRA $2800 in my wife's Traditional IRA $72400 in wife's rollover IRA rolled over from a previous 401k - - - - Hi rkhusky and Watty, could you please explain why I can't convert our pre-tax (rollover)/traditional IRAs to Roth? Is there somet...
by Bob's not my name
Tue Apr 11, 2017 8:10 am
Forum: Personal Finance (Not Investing)
Topic: FSA Dependent?
Replies: 10
Views: 784

Re: FSA Dependent?

Good point, so with the child tax credit phaseout and state tax it could exceed a 20% difference.
by Bob's not my name
Tue Apr 11, 2017 6:01 am
Forum: Investing - Help with Personal Investments
Topic: Should I contribute to traditional IRA?
Replies: 14
Views: 1581

Re: Should I contribute to traditional IRA?

$7500 in my Traditional IRA $2800 in my wife's Traditional IRA $72400 in wife's rollover IRA rolled over from a previous 401k Your $7,500 is all after-tax, right? You can convert it and your new after-tax TIRA contributions to a Roth IRA. The earnings on the existing TIRA will be taxed. As for your...
by Bob's not my name
Tue Apr 11, 2017 4:59 am
Forum: Personal Finance (Not Investing)
Topic: FSA Dependent?
Replies: 10
Views: 784

Re: FSA Dependent?

Well, if your marginal tax rate is only the 25% federal, then it's a 5% difference, or $150. But if you're in the child tax credit phaseout and have a state tax, then it would be maybe a 15% difference, or about $450. Price your hassle.
by Bob's not my name
Tue Mar 21, 2017 6:24 am
Forum: Investing - Help with Personal Investments
Topic: Maximizing Tax-Advantaged Savings when only working for part of the year
Replies: 16
Views: 1040

Re: Maximizing Tax-Advantaged Savings when only working for part of the year

RedClay wrote:My income next year will put me in the 25% bracket.
At least 28%. State and local income tax? Perhaps AMT. For example, if you're in NYC, your combined marginal rate might be 43%.
by Bob's not my name
Tue Mar 14, 2017 1:49 pm
Forum: Investing - Help with Personal Investments
Topic: IRA and college savings advice needed
Replies: 38
Views: 1955

Re: IRA and college savings advice needed

You can withdraw from a TIRA penalty-free to pay for college, so a Roth IRA is not better for that reason. It is better because in the distant future when your kids are in college the tax code may still include education tax breaks with eligibility phaseouts that create huge marginal tax rates for ...