Search found 6702 matches

by toddthebod
Mon Jun 17, 2024 9:53 pm
Forum: Personal Investments
Topic: Correcting a Solo 401K Over-Contribution
Replies: 6
Views: 288

Re: Correcting a Solo 401K Over-Contribution

Step 1 is to reclassify the early 2024 contribution as a 2024 contribution as your CPA said.

Step 2 is to call Vanguard and have your excess now-2024 contribution removed, which you can do without tax or penalty before April 2025.

It is too late to correct an excess 2023 contribution, which is why step 1 is necessary.
by toddthebod
Mon Jun 17, 2024 8:31 pm
Forum: Personal Investments
Topic: How Many EINs for Sole Proprietor Solo 401k
Replies: 9
Views: 514

Re: How Many EINs for Sole Proprietor Solo 401k

I cannot find a straight answer to this: 1. I have an SSN 2. I was told to create an EIN for my sole proprietorship when I made a solo 401k at Vanguard. 3. This sole proprietorships EIN is used on all plan documentation I filled in with Vanguard, and, it is the EIN I put on the 5500-EZ form filing. 3. When I read mysolo401k, apparently if I sign up with them I need to create a separate EIN for the trust for the solo 401k plan. So when my solo 401k is with Vanguard, (soon to be Ascensus), I don't need to make a trust EIN, since Vanguard or Ascensus is the trust? Is that right? You have it all correct (well, except for "Vanguard is the trust"). You do not need a separate trust EIN with a broker's prototype plan, since they will alr...
by toddthebod
Mon Jun 17, 2024 6:43 pm
Forum: Personal Investments
Topic: Kiddie Tax if full time student at any point in tax year?
Replies: 4
Views: 279

Re: Kiddie Tax if full time student at any point in tax year?

I have looked but have not been able to find an answer to this question. My son graduated from college this year (this month - June). When he files his 2024 tax return next Spring, is he considered a full time student (and thus subject to the Kiddie tax if he has significant unearned income), or because he has now graduated, is he no longer considered a full time student? In other words, is the determination of full time student status made if he was a full time student at any point in the tax year? Greatly appreciated if anyone has a reference or link to answer this question. Thanks, Aussiedog The rule is 5 months, so he will be subject to kiddie tax if he meets the other requirements. 26 USC 152(f)(2): Student defined The term “student” ...
by toddthebod
Mon Jun 17, 2024 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries on taxable accounts
Replies: 15
Views: 993

Re: Beneficiaries on taxable accounts

The fees charged by lawyers involved in estate probate generally depend on the size of the estate. If accounts have beneficiaries that means that they pass to the beneficiaries without going through probate, that means lower fees for the probate attorney. While the attorneys want to take care of the estate they may feel its important to take care of themselves as well. As Bruce frequently points out, most lawyers work on a time basis, and probating a will is a small portion of settling the estate. I don't think there is any nefarious intent here. But, I do think attorneys here sometimes trivialize the probate process. Perhaps it's simple for them because they do it frequently. But, might not be the case for a layman encountering it for the...
by toddthebod
Mon Jun 17, 2024 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries on taxable accounts
Replies: 15
Views: 993

Re: Beneficiaries on taxable accounts

The fees charged by lawyers involved in estate probate generally depend on the size of the estate. If accounts have beneficiaries that means that they pass to the beneficiaries without going through probate, that means lower fees for the probate attorney. While the attorneys want to take care of the estate they may feel its important to take care of themselves as well. As Bruce frequently points out, most lawyers work on a time basis, and probating a will is a small portion of settling the estate. I don't think there is any nefarious intent here. But, I do think attorneys here sometimes trivialize the probate process. Perhaps it's simple for them because they do it frequently. But, might not be the case for a layman encountering it for the...
by toddthebod
Mon Jun 17, 2024 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries on taxable accounts
Replies: 15
Views: 993

Re: Beneficiaries on taxable accounts

123 wrote: Mon Jun 17, 2024 3:40 pm The fees charged by lawyers involved in estate probate generally depend on the size of the estate. If accounts have beneficiaries that means that they pass to the beneficiaries without going through probate, that means lower fees for the probate attorney. While the attorneys want to take care of the estate they may feel its important to take care of themselves as well.
As Bruce frequently points out, most lawyers work on a time basis, and probating a will is a small portion of settling the estate.
by toddthebod
Mon Jun 17, 2024 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries on taxable accounts
Replies: 15
Views: 993

Re: Beneficiaries on taxable accounts

Billionaire wrote: Mon Jun 17, 2024 3:24 pm Thanks for the replies. That makes perfect sense. Just out of curiosity, what would happen if the taxable accounts (without a named beneficiary) didn't have enough money to settle the estate, but there were non-taxable accounts with substantial assets with a named beneficiary?
Depends on the state, but it can expose the beneficiaries to liability, i.e., the creditors will sue the beneficiaries to claw back funds.
by toddthebod
Mon Jun 17, 2024 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: What to provide to new estate planning attorney
Replies: 6
Views: 451

Re: What to provide to new estate planning attorney

newbie003 wrote: Mon Jun 17, 2024 1:19 pm Going to meeting with an attorney to start the process of estate planning (have never done this before). What is reasonable/necessary to provide to him, while still staying safe (in case he gets hacked, etc...)? Is it enough to provide name of bank/brokerage, types of account(s) at said bank/brokerage, etc. And maybe rough amounts? Or do they need full/partial account #s...?

Thank you.
I don't understand why they would even need to know where you had accounts. It doesn't change anything if the account is at Fidelity versus Vanguard. Besides, are you going to call them up every time you open a new account? That defies logic. Certainly if you need advice or assistance setting up beneficiaries or retitling accounts, but otherwise?
by toddthebod
Mon Jun 17, 2024 1:51 pm
Forum: Personal Investments
Topic: How Many EINs for Sole Proprietor Solo 401k
Replies: 9
Views: 514

Re: How Many EINs for Sole Proprietor Solo 401k

I cannot find a straight answer to this: 1. I have an SSN 2. I was told to create an EIN for my sole proprietorship when I made a solo 401k at Vanguard. 3. This sole proprietorships EIN is used on all plan documentation I filled in with Vanguard, and, it is the EIN I put on the 5500-EZ form filing. 3. When I read mysolo401k, apparently if I sign up with them I need to create a separate EIN for the trust for the solo 401k plan. So when my solo 401k is with Vanguard, (soon to be Ascensus), I don't need to make a trust EIN, since Vanguard or Ascensus is the trust? Is that right? You have it all correct (well, except for "Vanguard is the trust"). You do not need a separate trust EIN with a broker's prototype plan, since they will alr...
by toddthebod
Mon Jun 17, 2024 9:48 am
Forum: Personal Finance (Not Investing)
Topic: Advice on changing car registration and insurance to young adult
Replies: 11
Views: 655

Re: Advice on changing car registration and insurance to young adult

My insurance company asks who drives the car, how much it is driven, and where it is parked. I do not recall them asking about who is on the title.
by toddthebod
Sun Jun 16, 2024 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Conversion
Replies: 19
Views: 1493

Re: Roth IRA Conversion

svho wrote: Sun Jun 16, 2024 8:12 pm
tibbitts wrote: Sun Jun 16, 2024 8:06 pm
svho wrote: Sun Jun 16, 2024 7:44 pm Thanks for the quick reply.

Like Clever mentioned, I read the same regard moving to an IRA first before converting would make the process easier. Also does anybody know that for each transaction (convert to the Roth IRA) has to be into a new account so the IRS can track it?
Surely you don't mean creating a new account every time you perform a conversion transaction?

Yes, for each transaction at least what I read/interpret. Doesn't the IRS have to track the amount and the minimum duration of 5 years the amount has to sit?
No, you track it.
by toddthebod
Sun Jun 16, 2024 7:29 pm
Forum: Personal Investments
Topic: Why can't I make mutual funds exchange?
Replies: 28
Views: 2186

Re: Why can't I make mutual funds exchange?

retired@50 wrote: Sun Jun 16, 2024 7:14 pm
toddthebod wrote: Sun Jun 16, 2024 6:53 pm
Hotshot035 wrote: Sun Jun 16, 2024 6:31 pm Why not exchange for VTSAX ? Wait 30 days and the exchange for VFIAX.
The problem is he cannot exchange out of VDADX.
See the edit in the OP's second post in this thread.

Exchanging out of VDADX isn't the problem, the OP just cannot buy more VFIAX because they recently sold some VFIAX. In other words, it's the destination fund, not the source fund, that is limiting the exchange.

Regards,
I stand corrected!
by toddthebod
Sun Jun 16, 2024 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Conversion
Replies: 19
Views: 1493

Re: Roth IRA Conversion

Trying to plan a few things... Currently I have $436K in traditional 403b and $33k in Roth IRA at age 50 (single man). I plan to travel in 2026 and beyond. Don't expect to have any income after 2025. I will use personal savings for traveling. I do have some in stocks but don't plan to sell them during these traveling times (so no gain, don't think i have any dividends from them). From my understanding on the Roth Conversion, as long as I covert below the Standard Deduction which is $14600 (using this year number for reference), I don't have to pay a penny on that conversion? I live in the state of Calif for now but likely will move to AZ and reside there first before I do the slow travel :mrgreen: Thanks for your advice. Svho Correct. I wo...
by toddthebod
Sun Jun 16, 2024 6:53 pm
Forum: Personal Investments
Topic: Why can't I make mutual funds exchange?
Replies: 28
Views: 2186

Re: Why can't I make mutual funds exchange?

Hotshot035 wrote: Sun Jun 16, 2024 6:31 pm Why not exchange for VTSAX ? Wait 30 days and the exchange for VFIAX.
The problem is he cannot exchange out of VDADX. my bad, see below
by toddthebod
Sun Jun 16, 2024 5:58 pm
Forum: Personal Investments
Topic: Clarification of Vanguard fees for partial account transfers
Replies: 8
Views: 830

Re: Clarification of Vanguard fees for partial account transfers

livesoft wrote: Sun Jun 16, 2024 5:47 pm It will cost Vanguard more than $100 to collect any of those $100 fees.
They effectively collect it from the destination brokerage who then collect it from you, at least, that's how E*Trade collected the $75 fee when I moved my account to Schwab. My Schwab account showed a negative $75 cash balance after the transfer.
by toddthebod
Sun Jun 16, 2024 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Can You Search For Your 5500-EZ on EFAST?
Replies: 7
Views: 386

Re: Can You Search Your 5500-EZ on EFAST?

keyfort wrote: Sun Jun 16, 2024 5:36 pm
livesoft wrote: Sun Jun 16, 2024 5:27 pm Corporate 401(k)? Yes.

Individual 401(k)? I have never found mine.

I keep the original signed copy of my Form 5500-EZ myself just like it says to do in the instructions.
Me too, or at least I definitely have a scan of the signed copy. I think I have the physical too. I have the acceptance confirmation from the CPA, which seems to be from 3rd party software.

But is there a way to go back and see what was filed by a CPA?
Your CPA files a 5500-EZ without sending you a copy?!
by toddthebod
Sun Jun 16, 2024 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth for 2023 & 2024
Replies: 6
Views: 444

Re: Backdoor Roth for 2023 & 2024

My son contributed $6500 to a non-deductible IRA at the end of 2023. He is finally getting around to converting it to Roth, but the IRA account has $130 in interest. He did not have a traditional IRA account prior to opening the account that he funded at the end of '23. He has workplace 401K and 401K Roth accounts. Based on what I read in the Wiki, I believe he should convert the entire amount, but somehow declare $130 as taxable earnings? Can anyone confirm that this is correct? And if so, how does he inform Fidelity that $130 should be considered taxable? He filed form 8606 with his '23 return, and I understand that his '24 return will be complicated by the '23 contribution and '24 conversion. There was an excellent article that someone ...
by toddthebod
Sun Jun 16, 2024 5:04 pm
Forum: Personal Investments
Topic: Pre-tax vs Roth for HNW
Replies: 109
Views: 8140

Re: Pre-tax vs Roth for HNW

DSBH wrote: Sun Jun 16, 2024 4:57 pm Parent converts $729,927 and pays 37% = $270,073 of tax out of T-Ira and zeroes out T-IRA, leaving $729,927 Roth IRA plus $2,000,000 in cash. This results in estate taxes of $1,091,971.The estate taxes are paid out of cash, leaving a $729,927 Roth IRA plus $908,029 in cash, for a after-tax total of $1,637,956.
You seem to be under the mistaken impression that the taxes you pay out of your Traditional IRA are not themselves taxable. They are. You owe $370,000 in tax. The math is identical to case 2 even if you pay taxes out of the IRA.
by toddthebod
Sun Jun 16, 2024 4:47 pm
Forum: Personal Investments
Topic: How Do You Trust Your Solo 401k Non Prototype Plan Provider?
Replies: 2
Views: 209

Re: How Do You Trust Your Solo 401k Non Prototype Plan Provider?

keyfort wrote: Sun Jun 16, 2024 4:34 pm In thinking of moving away from Vanguard's transition to Ascensus for solo 401ks, I was looking at some non prototype plan providers like mysolo401k.

But how do you trust their plan? Is there a way to verify it is IRS approved?

And also, how do you trust mysolo401k will be around for the next e.g. 50 years?
You don't need to. You can move your plan somewhere else if something happens to them.
by toddthebod
Sun Jun 16, 2024 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Sorry, another wash sale question
Replies: 19
Views: 961

Re: Sorry, another wash sale question

livesoft wrote: Sun Jun 16, 2024 4:17 pm The profit is secure and not penalized in any way even if there were a wash sale.
Unless he purchases substantially identical shares in his IRA within 30 days of the sale.

Although given the dates in the original post, I can't tell if this is a hypothetical situation we are discussing or not, since 30 days has already passed.
by toddthebod
Sun Jun 16, 2024 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Regular or Trust Under Agreement Brokerage
Replies: 6
Views: 502

Re: Regular or Trust Under Agreement Brokerage

bsteiner wrote: Sun Jun 16, 2024 2:35 pm
toddthebod wrote: Sat Jun 15, 2024 8:28 am ...

The "trust under agreement" has nothing to do with your revocable trust. It's a boilerplate trust where the advisor is the trustee.
Or it may refer to a trust created under a trust instrument as opposed to a testamentary trust (one created under a Will).
My lay understanding is that "trust under agreement" refers to a trust where the grantor and trustee are different people, as opposed to "under declaration of trust" where they are the same. Given my assumption that the poster's trust in this case is a typical revocable living trust where he is both grantor and trustee, I figured the trust under agreement titling of the account likely referred to the advisor as trustee.
by toddthebod
Sun Jun 16, 2024 2:46 pm
Forum: Investing - Theory, News & General
Topic: Question regarding high TIPs coupon
Replies: 9
Views: 776

Re: Question regarding high TIPs coupon

The U.S. Treasury on Thursday will offer $21 billion in a reopened 5-year Treasury Inflation-Protected Security, CUSIP 91282CKL4. The result will be a 4-year, 10-month TIPS with a coupon rate of 2.125% , which was set by the originating auction on April 18, 2024. https://tipswatch.com As I understand it, this TIP will return 2.125% above inflation, but this will be in the form of interest that is paid out semi-annually starting at purchase. If I'm buying TIPs in order to build an inflation-protected income ladder for future years, it seems to me that most of the powder is leaking away well before my planned expenditures in the form of interest payments that I don't want or need beforehand. In order to achieve my goal, doesn't this mean tha...
by toddthebod
Sun Jun 16, 2024 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Regular or Trust Under Agreement Brokerage
Replies: 6
Views: 502

Re: Regular or Trust Under Agreement Brokerage

LookinAround wrote: Sun Jun 16, 2024 1:52 pm You want your new brokerage account titled and owned by your trust. If your trust is a beneficiary, the account would need to go through probate before it could transferred to and distributed by your trust. Why require your successor go through all that work?
Accounts with named beneficiaries generally bypass probate.
by toddthebod
Sun Jun 16, 2024 11:22 am
Forum: Personal Investments
Topic: Why can't I make mutual funds exchange?
Replies: 28
Views: 2186

Re: Why can't I make mutual funds exchange?

I am trying to do an exchange within Vanguard from one Vanguard mutual fund to another and the system is telling me that due to frequent trading policy I cannot. This is in my Roth IRA and the last transaction was an automatic investment funded from my bank made on 6/5 that settled on 6/6. I only bought. There has been no selling. Is this the 7 day hold? I thought that didn't apply to Vanguard mutual fund transactions. Hasn't it been 7 days already as of Friday 6/14? Or am I able to not exchange for 30 days once a fund is purchased? Pretty sure it's the last thing. Thought that systematic/automatic purchases do NOT count towards the frequent trading policy? In fact it was suggested on these forums to do that exactly (setup an automatic inv...
by toddthebod
Sun Jun 16, 2024 7:36 am
Forum: Personal Investments
Topic: Questions about 529 plan
Replies: 9
Views: 1245

Re: Questions about 529 plan

There is some benefit to shifting to a new plan every so often along the way. If you end up over funded, you can pay the qualified expenses out of the plan with the highest ratio of earnings to contributions, and you can make your non qualified withdrawals from the plan with the highest ratio of contributions to earnings. (Not in the same year, of course.) This will minimize your taxes and penalties.
by toddthebod
Sun Jun 16, 2024 7:22 am
Forum: Personal Finance (Not Investing)
Topic: Better without Roth conversions?
Replies: 44
Views: 3380

Re: Better without Roth conversions?

Call_Me_Op wrote: Sun Jun 16, 2024 6:32 am
toddthebod wrote: Sat Jun 15, 2024 3:51 pm
tothetune854 wrote: Sat Jun 15, 2024 2:51 pm I ran 2 different scenarios, one doing Roth conversions every year for the rest of my life expectancy circa 17 years, keeping just below 1st IRMAA bracket. the other just doing RMDS only. In each case money not used for spending with go into Roth and/or taxable account.
You cannot put RMDs in a Roth.
Why not? Can't you do a Roth conversion with RMD funds (as long as you pay taxes due)?
No, you are not allowed to convert RMD funds. You must take your RMDs first prior to any conversions. That's just the rule.
by toddthebod
Sat Jun 15, 2024 10:32 pm
Forum: Investing - Theory, News & General
Topic: Schwab US Small-Cap ETF: What should I expect from this thing?
Replies: 17
Views: 2328

Re: Schwab US Small-Cap ETF: What should I expect from this thing?

JustGotScammed wrote: Wed May 08, 2024 10:43 am
airshow wrote: Wed May 01, 2024 9:43 am seems to be looking for a free lunch...
Not a free lunch. Small-caps tend to outperform on 50+ year time frames, but sometimes have "bad decades" in terms of earnings growth and price appreciation compared to large-caps. So there is a risk/reward relationship. Also, there is the question of whether 5 largest tech stocks change the comparison.
How many 50 year periods have there been? Two?
by toddthebod
Sat Jun 15, 2024 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: Is Del Mar, CA worth the cost?
Replies: 97
Views: 13481

Re: Is Del Mar, CA worth the cost?

JustGotScammed wrote: Sat Jun 15, 2024 7:03 pm To me, the prices are crazy. This is only 900 square feet and $5,400 per month.

https://www.zillow.com/b/building/32.96 ... .26635_ll/
And the mortgage is twice that.
by toddthebod
Sat Jun 15, 2024 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Better without Roth conversions?
Replies: 44
Views: 3380

Re: Better without Roth conversions?

Dontridetheindexdown wrote: Sat Jun 15, 2024 8:40 pm
toddthebod wrote: Sat Jun 15, 2024 3:51 pm
tothetune854 wrote: Sat Jun 15, 2024 2:51 pm I ran 2 different scenarios, one doing Roth conversions every year for the rest of my life expectancy circa 17 years, keeping just below 1st IRMAA bracket. the other just doing RMDS only. In each case money not used for spending with go into Roth and/or taxable account.
You cannot put RMDs in a Roth.
As long as you have W-2 income, you can fund a Roth, up to the IRS limit, or the limit of your W-2 income, whichever is lower.

You can also fund a Roth if you have 1099 income, same limits apply.

The money to fund the Roth can come from earnings, dividends, RMDs, lottery winnings, it does not matter.
The context of the conversation is conversions.
by toddthebod
Sat Jun 15, 2024 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Better without Roth conversions?
Replies: 44
Views: 3380

Re: Better without Roth conversions?

tothetune854 wrote: Sat Jun 15, 2024 2:51 pm I ran 2 different scenarios, one doing Roth conversions every year for the rest of my life expectancy circa 17 years, keeping just below 1st IRMAA bracket. the other just doing RMDS only. In each case money not used for spending with go into Roth and/or taxable account.
You cannot put RMDs in a Roth.
by toddthebod
Sat Jun 15, 2024 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Amending tax return twice -- when to file the second time?
Replies: 13
Views: 731

Re: Amending tax return twice -- when to file the second time?

He filed because he owed money from an excess advance premium tax credit repayment. Are you sure that doesn't change with the additional income included? His MAGI goes on form 8962, line 2a. I'm sure. His only income was from $2700 in dividends. The K-1 he filed with the amended return was a loss of $1300, leaving an AGI of 1400. Then the new 1099-DIV added $2900, for a total income of $4300, still way below the standard deduction of $13,850. The standard deduction is irrelevant for the premium tax credit. It also doesn't make sense that he would have an excess premium tax credit with income below the federal poverty level. You have to repay an excess credit when your income is higher than you anticipated, not lower. The form 8962 was calc...
by toddthebod
Sat Jun 15, 2024 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Co-sign a Mortgage for Relative
Replies: 20
Views: 2285

Re: Co-sign a Mortgage for Relative

If your brother can't qualify for the loan himself (and loan qualification is generally way more generous than the real world), he can't afford the house. If he can't afford the house, are you ready to pay his mortgage?
by toddthebod
Sat Jun 15, 2024 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion/estimated taxes
Replies: 13
Views: 1012

Re: Roth conversion/estimated taxes

I plan to do an 80 k Roth conversion in 2024. In March I figured out what my total 2024 income would be including the conversion. So ran this by my CPA and he set up the payments I have to make in estimated taxes each quarter to cover everything. Does it matter when I make this Roth conversion during the year? I want to avoid any IRS late penalties. We don't know how he set up the payments, but If he set up equal payments each quarter and you do your conversion Monday you might have an underpayment penality for the third quarter. Thats what I was afraid of. Yes, it was 4 equal payments. Since I have made 2 quarterly payments thus far in 2024, April and June could probably safely do 40 k conversions? I'm assuming the payment made Jan 15, 20...
by toddthebod
Sat Jun 15, 2024 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Amending tax return twice -- when to file the second time?
Replies: 13
Views: 731

Re: Amending tax return twice -- when to file the second time?

Why was a return filed in the first place? He filed because he owed money from an excess advance premium tax credit repayment. Are you sure that doesn't change with the additional income included? His MAGI goes on form 8962, line 2a. I'm sure. His only income was from $2700 in dividends. The K-1 he filed with the amended return was a loss of $1300, leaving an AGI of 1400. Then the new 1099-DIV added $2900, for a total income of $4300, still way below the standard deduction of $13,850. The standard deduction is irrelevant for the premium tax credit. It also doesn't make sense that he would have an excess premium tax credit with income below the federal poverty level. You have to repay an excess credit when your income is higher than you ant...
by toddthebod
Sat Jun 15, 2024 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Amending tax return twice -- when to file the second time?
Replies: 13
Views: 731

Re: Amending tax return twice -- when to file the second time?

macaroon wrote: Sat Jun 15, 2024 12:48 pm
toddthebod wrote: Sat Jun 15, 2024 8:34 am

Why was a return filed in the first place?
He filed because he owed money from an excess advance premium tax credit repayment.
Are you sure that doesn't change with the additional income included? His MAGI goes on form 8962, line 2a.
by toddthebod
Sat Jun 15, 2024 12:07 pm
Forum: Personal Investments
Topic: Why can't I make mutual funds exchange?
Replies: 28
Views: 2186

Re: Why can't I make mutual funds exchange?

jjgaucho wrote: Sat Jun 15, 2024 11:26 am I am trying to do an exchange within Vanguard from one Vanguard mutual fund to another and the system is telling me that due to frequent trading policy I cannot. This is in my Roth IRA and the last transaction was an automatic investment funded from my bank made on 6/5 that settled on 6/6. I only bought. There has been no selling. Is this the 7 day hold? I thought that didn't apply to Vanguard mutual fund transactions. Hasn't it been 7 days already as of Friday 6/14? Or am I able to not exchange for 30 days once a fund is purchased?
Pretty sure it's the last thing.
by toddthebod
Sat Jun 15, 2024 8:34 am
Forum: Personal Finance (Not Investing)
Topic: Amending tax return twice -- when to file the second time?
Replies: 13
Views: 731

Re: Amending tax return twice -- when to file the second time?

macaroon wrote: Sat Jun 15, 2024 7:56 am
Asyouwish wrote: Fri Jun 14, 2024 2:24 pm The IRS is taking anywhere from 5 months to 12 months to process amended returns.

They probably should not amend twice while the first amended is unprocessed.

If the $2900 doesn’t affect the AGI or tax, why amend?
I thought you had to amend if you received any documents that didn't agree with the original return. Is that incorrect?
Why was a return filed in the first place?
by toddthebod
Sat Jun 15, 2024 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Regular or Trust Under Agreement Brokerage
Replies: 6
Views: 502

Re: Regular or Trust Under Agreement Brokerage

I have a question related to what type of brokerage account. Below is the sequence of events leading up to where I am now I had a revocable living trust set up I had a Trust under agreement Brokerage set up by my financial advisor through Fidelity I fired by financial advisor The trust under agreement totals would not link to the rest of my retirement accounts and it showed my financial advisor as having some control as it was listed as being professionally managed and kept their name. I did revoke their control but it still showed their name and could not be changed I closed the trust brokerage account I transferred all to a regular brokerage account in my and wife's names I named my trust as the beneficiary The simple question is should ...
by toddthebod
Fri Jun 14, 2024 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax source
Replies: 57
Views: 3847

Re: Roth conversion tax source

capran wrote: Fri Jun 14, 2024 7:07 pm I know we don't have check writing on our taxable brokerage account. we can move money to and from Vanguard to bank. I just don't want to cause myself a problem. Certainly don't want to try to do a "indirect rollover" and have the IRS say that is a Roth contribution, since I never took possession of a distribution since it was all done at Vanguard.
Here's a post from someone who has successfully done this by phone for Schwab and Fidelity. I would hope Vanguard could handle it, too:
viewtopic.php?p=7731023#p7731023
by toddthebod
Fri Jun 14, 2024 3:30 pm
Forum: Personal Investments
Topic: Wash sale question
Replies: 3
Views: 298

Re: Wash sale question

This is a wash sale. Whether or not you can recognize any losses depends on when you sell the lots you purchased within 30 days of the sale and on the size of the lot you sold relative to the size of the lots you purchased within 30 days of the sale.
by toddthebod
Fri Jun 14, 2024 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax source
Replies: 57
Views: 3847

Re: Roth conversion tax source

I was trying to get to understanding this earlier comment "You convert $24,000 to Roth. You have $12,000 withheld for taxes. You write a check from your taxable brokerage/checking account to your Roth for the amount withheld. In the end you have converted the entire $24,000, but your tax payment is now timely as it was withheld instead of paid as estimated taxes." But short of that understanding, I'll just keep doing what I do. I know paying withholding from the conversion, but it works for me in my frail simple mind. I convert 105k in January. Have no tax withheld. Maybe I'm lucky, but it generates over 5,000 in interest (tax free since it's inside the Roth). Then in December convert another 25k and have half withheld for taxes....
by toddthebod
Fri Jun 14, 2024 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Am I a state tax resident anywhere?
Replies: 10
Views: 1351

Re: Am I a state tax resident anywhere?

MTD wrote: Fri Jun 14, 2024 12:05 pm Under the following scenario would I be paying taxes in any state in the USA?
Every state (with an income tax) has a mechanism for non-residents to pay taxes. Where and how do you earn income?
by toddthebod
Fri Jun 14, 2024 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Safe Harbor, Underpayment Penalties and Estimated Taxes
Replies: 4
Views: 504

Re: Safe Harbor, Underpayment Penalties and Estimated Taxes

Any estimated payments are considered applied to the outstanding due from prior quarters, so if you were to go with estimated tax payments this year, pay the first quarter ASAP to stop interest accruing, then make your second and future quarter payments on time.
by toddthebod
Fri Jun 14, 2024 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax source
Replies: 57
Views: 3847

Re: Roth conversion tax source

I was trying to get to understanding this earlier comment "You convert $24,000 to Roth. You have $12,000 withheld for taxes. You write a check from your taxable brokerage/checking account to your Roth for the amount withheld. In the end you have converted the entire $24,000, but your tax payment is now timely as it was withheld instead of paid as estimated taxes." But short of that understanding, I'll just keep doing what I do. I know paying withholding from the conversion, but it works for me in my frail simple mind. I convert 105k in January. Have no tax withheld. Maybe I'm lucky, but it generates over 5,000 in interest (tax free since it's inside the Roth). Then in December convert another 25k and have half withheld for taxes....
by toddthebod
Fri Jun 14, 2024 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Car vs Student Loan Prioritization
Replies: 17
Views: 1314

Re: Car vs Student Loan Prioritization

Eustace_Blythe wrote: Fri Jun 14, 2024 11:00 am
toddthebod wrote: Thu Jun 13, 2024 11:30 am Do you max out your tax-advantaged accounts? (401(k), Roth IRA, etc.?) If not, that is where your $480 should go. After that, pay down the car loan. After that, as long as you qualify to deduct the student loan interest, I would not pay an extra penny towards them, but you are close to the phase-out.
ROTH IRA and HSA are maxed out. I contribute 10% of my salary with 100% match from my employer into my 401k. I would like to be debt free before I contribute more to 401k.
I disagree with that plan. You should max out your 401(k) before putting extra money towards your fairly low-interest loans.
by toddthebod
Fri Jun 14, 2024 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Car vs Student Loan Prioritization
Replies: 17
Views: 1314

Re: Car vs Student Loan Prioritization

Please don't listen to the people telling you to pay off an interest free loan before a 5% car loan.
by toddthebod
Fri Jun 14, 2024 10:20 am
Forum: Personal Investments
Topic: Home sale proceeds to VMFXX?
Replies: 10
Views: 1230

Re: Home sale proceeds to VMFXX?

Existing Vanguard Federal MM account, and want to pick up some good interest while shopping for replacement home. I've heard horror stories of Vanguard delaying access to funds, but not enough to scare me out of it just yet. The process will likely take several months and we would deposit multiple six figures. One alternative would be a bank mma/checking where I know that the money is easily accessible but of course we'd lose some compound interest. Any and all experiences/opinions on the matter are appreciated. Do not put this money at a new brokerage/bank with whom you do not already have an account. The people who run into trouble are the ones who open new accounts at new brokerages and try to move in and out large sums in a short perio...
by toddthebod
Fri Jun 14, 2024 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax source
Replies: 57
Views: 3847

Re: Roth conversion tax source

Your logic is flawed. After you did your conversion in December, you were free to write a check for $12,000 to your Roth. It's ten minutes of work for potentially thousands of dollars in future tax savings. Please explain. How do you get to write a $12K check to your Roth? Money from where? $12K was already added during the second conversion of the year. Thx You convert $24,000 to Roth. You have $12,000 withheld for taxes. You write a check from your taxable brokerage/checking account to your Roth for the amount withheld. In the end you have converted the entire $24,000, but your tax payment is now timely as it was withheld instead of paid as estimated taxes. Or you can convert the full $24,000 and make $100 on the spread between rewards a...
by toddthebod
Fri Jun 14, 2024 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax source
Replies: 57
Views: 3847

Re: Roth conversion tax source

Yes, there are good, valid reasons to pay the taxes from your IRA (whether as part of the conversion or a separate transaction). In my case, I want/need to deplete my IRA as fast as possible, due to lower tax bracket space availability in the last couple and current year, which may not last. The pretax IRA by definition isn't all yours - taxes will be due when withdrawn, so it's just about when you pay those taxes. In my specific case, I do a large Roth conversion in January, withdraw some money to live on, and pay our taxes mid-December with a large IRA withdrawal 75% to the IRS, 24% to my Governor, and 1% to me (you can only withhold 99%). Considerations: tax bracket of heir (10 year payout), single survivor of MFJ loses half the bracket...
by toddthebod
Fri Jun 14, 2024 8:36 am
Forum: Personal Finance (Not Investing)
Topic: cost basis vanguard to schwab
Replies: 7
Views: 564

Re: cost basis vanguard to schwab

sambb wrote: Fri Jun 14, 2024 7:32 am Are there any hiccups with cost basis when i transfer an account (taxable mutual fund acct) to schwab?
Is it beneficial to convert the mutual fund acct at vanguard to a VBS acct, and convert the funds to ETFs first?
Thank you
Do you have non-covered shares?