Search found 35 matches

by theRoCK
Sat Oct 17, 2020 3:16 pm
Forum: Personal Investments
Topic: New employer- 401k plan not set up yet- how can I max 2020?
Replies: 10
Views: 823

Re: New employer- 401k plan not set up yet- how can I max 2020?

Unfortunately, I dont think you can backfill a 401k. I had the same situation last year due to a layoff and the new company having a 2 month waiting period before enrolling me in their 401k plan. Since my previous company didnt have a true-up match, I had to calculate the monthly contributions per p...
by theRoCK
Fri Oct 16, 2020 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Step-up in basis on spousal joint accounts?
Replies: 3
Views: 366

Step-up in basis on spousal joint accounts?

I have a joint investment account with my wife (titled as JTWROS - joint tenant with right of survivorship). I read different threads about different account types where on the death of a spouse, the other spouse gets a step-up in basis on either half of the balance, or the entire balance. I am not ...
by theRoCK
Thu Oct 08, 2020 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Question on using HSA funds
Replies: 1
Views: 257

Question on using HSA funds

I have a question on the rules regarding using the HSA funds. A friend posed this question to me and I didnt know. From what I have read, the HSA funds can be used for eligible expenses for spouse and dependents even they arent currently enrolled in a HDHP. Can it only be used for dependent kids, or...
by theRoCK
Thu Oct 08, 2020 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Child on the way: weighing Health Care Plans
Replies: 6
Views: 469

Re: Child on the way: weighing Health Care Plans

In addition to all the comments above, just wanted to make sure you compared costs for still keeping separate plans with the kid on either your or your wife's plan, whether HDHP or otherwise (probably the wife's plan as both of them will have expenses during childbirth). In my experience, adding a k...
by theRoCK
Tue Oct 06, 2020 4:52 pm
Forum: Investing - Theory, News & General
Topic: How To Invest HSA
Replies: 11
Views: 895

Re: How To Invest HSA

Regarding HSA contributions, you can absolutely change it at any time. It doesn't require a "life event" or any other such nonsense that you may get as initial feedback. You just need to find someone at the company who can tell you how to do it. Generally, this will be someone in payroll. If they i...
by theRoCK
Sun Oct 04, 2020 11:19 pm
Forum: Personal Investments
Topic: Prepaid tuition vs regular 529 plan
Replies: 6
Views: 740

Re: Prepaid tuition vs regular 529 plan

I believe the state would try to meet its obligations. They may change the requirements for future enrollees if they found they overpromised, but not affect it for already purchased credits. That is what I understand happened with Texas's prepaid tuition fund, where they created a new one and closed...
by theRoCK
Sat Oct 03, 2020 6:24 pm
Forum: Investing - Theory, News & General
Topic: Fidelity's Magellan Fund changes to ETF
Replies: 13
Views: 1854

Re: Fidelity's Magellan Fund changes to ETF

How is the day to day pricing on these active ETFs determined? For index ETF, the NAV is known from the underlying assets, but when the underlying assets arent known (disclosed only once a quarter), the NAV is based on prior quarter's disclosure?! Or does the firm announce a NAV daily but just not ...
by theRoCK
Sat Oct 03, 2020 2:10 pm
Forum: Investing - Theory, News & General
Topic: Fidelity's Magellan Fund changes to ETF
Replies: 13
Views: 1854

Re: Fidelity's Magellan Fund changes to ETF

How is the day to day pricing on these active ETFs determined? For index ETF, the NAV is known from the underlying assets, but when the underlying assets arent known (disclosed only once a quarter), the NAV is based on prior quarter's disclosure?! Or does the firm announce a NAV daily but just not d...
by theRoCK
Wed Sep 16, 2020 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Front load years 401k contributions when moving from high tax state to no tax state?
Replies: 16
Views: 1048

Re: Front load years 401k contributions when moving from high tax state to no tax state?

If next year I am moving from a high tax state to a no tax state for the majority of the year, regarding taxes, is it smarter to front load traditional 401k contributions while living in the high tax state or will I end up owning the same amount either way? Thanks for any advice! It would be better...
by theRoCK
Tue Sep 15, 2020 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Custodians and Strategies
Replies: 4
Views: 394

Re: HSA Custodians and Strategies

I have also not heard of any custodians giving bonuses on HSAs. Also, you said this is your first time on HDHP, so presumably you dont have an existing HSA with a large balance. I dont think there are any custodians who give a bonus just for opening a HSA with them, not transferring in a large exist...
by theRoCK
Mon Sep 14, 2020 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Question on marginal tax rate when dividends/LTCG are included
Replies: 4
Views: 448

Re: Question on marginal tax rate when dividends/LTCG are included

You generally only get a different marginal rate if some dividends/LTCG are being pushed into a higher bracket. The LTCG rate of 20% kicks in at a MAGI > $496,600. There is also the Net Investment Income Tax (NIIT) of 3.8% that kicks in with a MAGI > $250K for MFJ. Does the AMT affect you? What per...
by theRoCK
Mon Sep 14, 2020 11:23 am
Forum: Personal Investments
Topic: How much are your 529 Contributions
Replies: 133
Views: 7580

Re: How much are your 529 Contributions

I have inner struggles of balancing supporting my kids too much or too little. I give partial credit on my success because I came from a lower middle / lower(?) situation. I had little and it fueled my personal ambitions. That's why I don't give my kids the latest toys. I tell them to make money if...
by theRoCK
Mon Sep 14, 2020 1:17 am
Forum: Personal Finance (Not Investing)
Topic: Question on marginal tax rate when dividends/LTCG are included
Replies: 4
Views: 448

Question on marginal tax rate when dividends/LTCG are included

Hi, I am trying to figure out whether to do a partial Roth 401k contribution, or make it fully in traditional 401k. I am in the cusp of the 24%/32% tax bracket. I am trying to see if I can make a partial Roth and still be in the 24% bracket. I am in the 15% LTCG tax rate. MAGI beyond $326,600 (MFJ) ...
by theRoCK
Sun Sep 13, 2020 10:34 pm
Forum: Personal Investments
Topic: How much are your 529 Contributions
Replies: 133
Views: 7580

Re: How much are your 529 Contributions

Stack all the "hedged" funding towards the early years. In fact, fund it all now if you can. I cannot recall if there is a yearly contribution limit. The obvious reason being that the value of the 529 contribution declines the closer to college you get. Less chance of gains and an increased chance ...
by theRoCK
Sun Sep 13, 2020 9:42 pm
Forum: Personal Investments
Topic: How much are your 529 Contributions
Replies: 133
Views: 7580

Re: How much are your 529 Contributions

I had been meaning to ask a similar question, so instead of creating a new thread, piggybacking on this one. I am also thinking of whether to contribute to 529 and if so, how much. This is my current situation: Taxes: TX resident so no state benefit for 529 contributions. Filing status: MFJ Marginal...
by theRoCK
Mon Sep 07, 2020 9:34 pm
Forum: Personal Consumer Issues
Topic: combine rental and primary mortgages into one
Replies: 8
Views: 718

Re: combine rental and primary mortgages into one

I have a primary home and rental. I have paid off most of primary home so broker is not able to do re-fi (~212K) at lower rate with no point no fee loan. I have a large mortgage (~370K) on my rental but the re-fi rates on rental are bad. My broker suggested this... You can combine 2 loans to one lo...
by theRoCK
Mon Sep 07, 2020 7:14 pm
Forum: Personal Consumer Issues
Topic: combine rental and primary mortgages into one
Replies: 8
Views: 718

Re: combine rental and primary mortgages into one

I have a primary home and rental. I have paid off most of primary home so broker is not able to do re-fi (~212K) at lower rate with no point no fee loan. I have a large mortgage (~370K) on my rental but the re-fi rates on rental are bad. My broker suggested this... You can combine 2 loans to one lo...
by theRoCK
Wed Sep 02, 2020 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Close HSA for better insurance and FSA?
Replies: 11
Views: 668

Re: Close HSA for better insurance and FSA?

I would second AnEngineer's comment about considering the tax benefits of a HSA. Not sure if you already considered it. FSAs have a $2750 limit, while HSAs have $7000 limit. You are also saving on taxes on that additional contribution amount. Since you have been paying bills out of pocket and not fr...
by theRoCK
Wed Sep 02, 2020 4:23 pm
Forum: Personal Investments
Topic: Index ETF vs mutual fund in a taxable account
Replies: 5
Views: 558

Re: Index ETF vs mutual fund in a taxable account

Unfortunately, though Fidelity has enabled fractional shares, you cannot schedule it for automatic investments but have to make trades via their app (not even online). One way to dollar-cost average ETFs at Fidelity is to set yourself a periodic reminder to make the investments, and then make those ...
by theRoCK
Mon Aug 31, 2020 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Home insurance estimate during closing question
Replies: 10
Views: 851

Re: Home insurance estimate during closing question

Thanks for your reply. Did you estimate the tax yourself or some other way? I went into our county property appraiser website but estimation here seems somewhat complicated, at least here, with all these special programs, caps, and etc. In the county where I live (Austin, TX), the appraiser website...
by theRoCK
Sun Aug 30, 2020 11:27 pm
Forum: Personal Finance (Not Investing)
Topic: Home insurance estimate during closing question
Replies: 10
Views: 851

Re: Home insurance estimate during closing question

We just closed on a house, and I picked my insurance carrier through an agent and sent the insurance quote to my mortage company. They included a year of prepaid insurance in the cash to closing calculation. I prefer to do insurance and taxes myself and not through escrow.
by theRoCK
Sun Aug 30, 2020 11:20 pm
Forum: Personal Finance (Not Investing)
Topic: Multiple HSA contributions
Replies: 17
Views: 1293

Re: Multiple HSA contributions

Since you are already paying the monthly fees at your current HSA, and if you like the options for investment, you could still contribute the full family limit to that HSA. You just cannot do it through payroll. You can choose to send in a check or ACH transfer for the remaining amount over the indi...
by theRoCK
Thu Aug 20, 2020 3:00 pm
Forum: Personal Investments
Topic: For people who don't like their employee provided HSA - why not open elsewhere?
Replies: 39
Views: 2626

Re: For people who don't like their employee provided HSA - why not open elsewhere?

I did not see anywhere that Fidelity reimburses trustee to trustee transfers of HSAs. I would love to do that and get the fees reimbursed. Is there a link you can share? Do you need to call and ask for a reimbursement? I don’t think it’s announced. I asked them about it over the phone and they told...
by theRoCK
Thu Aug 20, 2020 12:17 am
Forum: Personal Finance (Not Investing)
Topic: How to split HSA contributions between spousal accounts?
Replies: 3
Views: 400

How to split HSA contributions between spousal accounts?

Both my wife and I have HDHP and HSAs through our employers as we get some employer contributions into our HSA. I get a $1000 contribution from my employer and my wife gets $1500. Since I earn over the SS tax limit of ~$137k and my wife earns below that, I do not make any additional contributions to...
by theRoCK
Wed Aug 19, 2020 12:31 am
Forum: Personal Investments
Topic: For people who don't like their employee provided HSA - why not open elsewhere?
Replies: 39
Views: 2626

Re: For people who don't like their employee provided HSA - why not open elsewhere?

Trustee to trustee is free once per year (reimbursed by Fidelity), but unlimited. I wouldn’t do it more than once per year due to the fees. I think to avoid the mistake I made last time, choose the option where you get to specify a certain amount of cash, which lets you leave some in the account. I...
by theRoCK
Tue Aug 04, 2020 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: Marcus lowers savings APY from 1.05% to 0.8%
Replies: 32
Views: 3058

Re: Marcus lowers savings APY from 1.05% to 0.8%

Rewards checking accounts still have good yields, and some have reduced their qualifying conditions to a manageable number of debit card transactions in times of covid. The one at my local bank yields ~3% on upto 25k, also offers a linked savings account which gives ~1.5% on upto 100k deposits if th...
by theRoCK
Sat Aug 01, 2020 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: To rent out, or to sell?
Replies: 20
Views: 1408

Re: To rent out, or to sell?

Do you max out your 401k/IRA, same for your spouse? How much non- home mortgage loan debt do you have? How much did you borrow on your new home? Yes, we both max out our 401k, back door Roth IRA, and HSA accounts. No non-mortgage debt, and pay off our CCs in full each month. We have enough income t...
by theRoCK
Fri Jul 31, 2020 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: To rent out, or to sell?
Replies: 20
Views: 1408

Re: To rent out, or to sell?

Read this thread https://www.bogleheads.org/forum/viewtopic.php?f=2&t=226980 Actually, reading your thread was what started giving me second thoughts about renting it out!!! :happy At this stage in my life, I would rather spend more time with my toddler than worry about managing a rental. If hiring...
by theRoCK
Fri Jul 31, 2020 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: To rent out, or to sell?
Replies: 20
Views: 1408

Re: To rent out, or to sell?

Maybe I missed it, but is your new house in Austin as well, or did you move away? Yes, I will still be in Austin. If I was moving away, this wouldnt even be a question, definitely sell. I dont see myself renting out from out of town. If you rent it for more that a few years you will lose the homeow...
by theRoCK
Fri Jul 31, 2020 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: To rent out, or to sell?
Replies: 20
Views: 1408

To rent out, or to sell?

We just bought a new home. I was very sure I was going to keep the current home and rent it out. But now, I am having second thoughts. This is the data about the house itself: Location: Austin, TX House built: 2005 Purchased for $270k in 2006 Market value (estimated): $480k Mortgage balance: $75k, ~...
by theRoCK
Thu Jul 30, 2020 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: How is depreciation deduction calculated when converting current home to rental?
Replies: 9
Views: 639

Re: How is depreciation deduction calculated when converting current home to rental?

Yes, that is in the back of my mind. Current plan is to rent it for a couple of years, see how it performs and also the appreciation in that time frame, and depending on the performance as a rental, decide on continuing or selling it so I dont have to report capital gains. The appreciation is about...
by theRoCK
Thu Jul 30, 2020 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: How is depreciation deduction calculated when converting current home to rental?
Replies: 9
Views: 639

Re: How is depreciation deduction calculated when converting current home to rental?

Thanks. So based on this, I would have to take the price I paid in 2006 minus land value in 2006, plus the cost of improvements made to the house since then. Since the house value has appreciated quite a bit in these 14 years, that would be the lower amount. Bummer that I cant use the current marke...
by theRoCK
Wed Jul 29, 2020 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: How is depreciation deduction calculated when converting current home to rental?
Replies: 9
Views: 639

Re: How is depreciation deduction calculated when converting current home to rental?

See IRS Pub 527: https://www.irs.gov/publications/p527#en_US_2019_publink1000219151 When you change property you held for personal use to rental use (for example, you rent your former home), the basis for depreciation will be the lesser of fair market value or adjusted basis on the date of conversi...
by theRoCK
Wed Jul 29, 2020 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: How is depreciation deduction calculated when converting current home to rental?
Replies: 9
Views: 639

How is depreciation deduction calculated when converting current home to rental?

Hi, New user though I have landed on the forums and learned stuff in the past. Hope real estate investment questions are ok. We are buying a bigger house as we grew our family and would like the extra space. We are keeping our current home and planning to rent it out. This will become our first "inv...