Search found 310 matches

by ofckrupke
Sat Jan 13, 2018 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Getting out of Whole Life Insurance
Replies: 15
Views: 1000

Re: Getting out of Whole Life Insurance

If you can get sufficient group life through employer(s) plus term term life coverage to meet your death-benefit needs, another option is the 1035-exchange to two variable annuities as offered through Vanguard, Fidelity, and a select few other low-cost providers . Like the exchange to Universal ment...
by ofckrupke
Thu Jan 11, 2018 5:55 pm
Forum: Investing - Help with Personal Investments
Topic: Do I have a government 457B?
Replies: 21
Views: 986

Re: Do I have a government 457B?

I too thought to be a government plan, ROTH has to be allowed. Is that not the case? That is not the case. From an IRS 457 information page : Can a 457(b) plan include designated Roth accounts? Yes, a governmental 457(b) plan may be amended to allow designated Roth contributions and in-plan rollove...
by ofckrupke
Thu Jan 11, 2018 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: Do I have a government 457B?
Replies: 21
Views: 986

Re: Do I have a government 457B?

If it has the ability to designate a portion or all of the salary reduction as a Roth 457b option, it is governmental. If it allows loans for the participant, it is governmental. If it allows rollovers to other eligible retirement plans (401(k), 403(b), governmental 457(b), IRAs) - it is government...
by ofckrupke
Thu Jan 11, 2018 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 38
Views: 4005

Re: Brokered CDs - often better return secondary market

These are surely premium bonds, and as they are federally tax exempt the premium must be amortized, so the broker will report it, which numbers the holder/agent/software can use to adjust the CA taxable interest income for entry on his form 540CA. [A question was raised in another topic as to whethe...
by ofckrupke
Wed Jan 10, 2018 10:43 pm
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 59
Views: 8392

Re: Muni Money Market funds starting to look good!

LSLover wrote:
Wed Jan 10, 2018 9:47 pm
Muni income is added back to AGI for the purposes of NIIT. So, the 3.8% is not avoided by investing in munis.
Sure. Just tell me on what line of form 8960 that happens, and on what page of the form 8960 instructions I can find the directions or worksheet for doing so.
by ofckrupke
Sun Jan 07, 2018 10:39 pm
Forum: Personal Finance (Not Investing)
Topic: Relocation Package - Pay 2 points for 3.5 30 year?
Replies: 14
Views: 899

Re: Relocation Package - Pay 2 points for 3.5 30 year?

Thank you, no state tax in Texas. Seems like between property and sales tax (formulaic) you should be able to make the 10k cap though, for maximizing the deduction for the points. And even if there were zero deduction benefit so you eat the tax bill for the whole employer reimbursement, you'd cross...
by ofckrupke
Sun Jan 07, 2018 8:42 pm
Forum: Personal Finance (Not Investing)
Topic: Relocation Package - Pay 2 points for 3.5 30 year?
Replies: 14
Views: 899

Re: Relocation Package - Pay 2 points for 3.5 30 year?

Are you saying that I can write off the points on my 2018 taxes? Assuming I get into the MFJ itemizing range? Read about it in IRS publication 936 to make sure there's not some aspect of your loan package that disqualifies, but in short: if the situation is that you're buying a house in conjunction...
by ofckrupke
Sun Jan 07, 2018 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: Sell appreciated state munis when moving out of state?
Replies: 1
Views: 144

Re: Sell appreciated state munis when moving out of state?

The default risk on the CA bonds did not go up because you moved out of state; only your effective (post-tax) compensation for the state-specific risk has changed. Even if the bonds as held in VCLAX are priced by CA taxpayers in the 12.3% bracket to after-tax distribution yield indifference vis a vi...
by ofckrupke
Sun Jan 07, 2018 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Relocation Package - Pay 2 points for 3.5 30 year?
Replies: 14
Views: 899

Re: Relocation Package - Pay 2 points for 3.5 30 year?

The interest saving is what's important, not the difference in payment, because some of the difference in payment is difference in principal reduction aka equity growth. And the interest difference will be undiluted by taxation if you are both MFJ and not much of a charitable giver, because at 3.5% ...
by ofckrupke
Sun Jan 07, 2018 9:52 am
Forum: Investing - Help with Personal Investments
Topic: TIAA traditional is compounded daily, but not at the displayed crediting rate
Replies: 25
Views: 935

Re: TIAA traditional is compounded daily, but not at the displayed crediting rate

I am one of the unhappy and unlucky people with a single vintage nowadays earning no additional amounts. The black box is a popular metaphor for occulted investment schemes, but I think that is inside out: TIAA Trad is a coal mine, and yours is the lamentation of a distressed canary from a nearby c...
by ofckrupke
Sat Jan 06, 2018 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage - what is my effective rate now?
Replies: 12
Views: 793

Re: Paying off mortgage - what is my effective rate now?

A couple of things to think about here, because in terms of decision making, the useful rate is the after tax payback on the next dollar of principal reduction. 1) your state may allow you to itemize, and it may be to your advantage to do so, even when you take the standard deduction federally. This...
by ofckrupke
Sat Jan 06, 2018 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA traditional is compounded daily, but not at the displayed crediting rate
Replies: 25
Views: 935

Re: TIAA traditional is compounded daily, but not at the displayed crediting rate

1. Does TRAD compound daily? monthly? And is it going to be at a rate of 1/12 of 3% (or whatever your guaranteed rate is? TRAD compounds daily. In the simplified case in a period or a 3% contract for which there is no "additional amount" payable, the daily rate is the 365th root of 1.03, minus 1. [...
by ofckrupke
Sat Jan 06, 2018 2:02 pm
Forum: Investing - Theory, News & General
Topic: state-specific basis track for premium treasuries?
Replies: 16
Views: 469

Re: state-specific basis track for premium treasuries?

^ Yes, but if the investor chooses not to amortize the premium treasury on the federal return, presumably the bond hasn't been amortized on the state return either. I still think that it would be a very unusual situation that someone would choose to have more income, trading it for a capital loss; ...
by ofckrupke
Sat Jan 06, 2018 1:40 pm
Forum: Investing - Theory, News & General
Topic: state-specific basis track for premium treasuries?
Replies: 16
Views: 469

Re: state-specific basis track for premium treasuries?

I consulted both the citation at westlaw.com and FTB 1001 before starting the topic. I was also inclined to believe that by "fully exempt" in the former, this related solely to CA taxability....and in a way asserted that facts, specifics and nuts&bolts of taxation by any other dominion are not a con...
by ofckrupke
Sat Jan 06, 2018 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA traditional is compounded daily, but not at the displayed crediting rate
Replies: 25
Views: 935

Re: TIAA traditional is compounded daily, but not at the displayed crediting rate

This seems like one of the simpler aspects of TIAA Traditional to be confused about, and says more about the ease of (feynmanesque) self-deception than TIAA's practice of the deceptive arts.
by ofckrupke
Fri Jan 05, 2018 9:47 pm
Forum: Investing - Theory, News & General
Topic: state-specific basis track for premium treasuries?
Replies: 16
Views: 469

Re: state-specific basis track for premium treasuries?

I suppose that for treasuries in the current regime the arbitrage for a multiple-year scheme would be plausibly limited to paying 22% on the income not reduced by amortization (since if in 12% bracket you'd rather take qualified dividends at 0%) and taking LT losses at no greater than 23.8%....so th...
by ofckrupke
Fri Jan 05, 2018 9:35 pm
Forum: Investing - Theory, News & General
Topic: state-specific basis track for premium treasuries?
Replies: 16
Views: 469

Re: state-specific basis track for premium treasuries?

Is there a reason why you would not want to amortize taxable premium (hypothetically)? Well, how about in the corollary situation I suggested in reply to Artsdoctor above: if a Californian opted to hold some ex-CA munis for whatever strategic reasons and envisioned being in both the highest federal...
by ofckrupke
Fri Jan 05, 2018 9:07 pm
Forum: Investing - Theory, News & General
Topic: state-specific basis track for premium treasuries?
Replies: 16
Views: 469

Re: state-specific basis track for premium treasuries?

If they are covered premium bonds, your broker already reported the ABP to the IRS. Did you take the broker’s reported ABP on your federal return? This really is a hypothetical case, so there is no such broker-reported ABP for reference. However, based on the notes on the back face of last year's c...
by ofckrupke
Fri Jan 05, 2018 8:45 pm
Forum: Investing - Theory, News & General
Topic: state-specific basis track for premium treasuries?
Replies: 16
Views: 469

Re: state-specific basis track for premium treasuries?

Thanks for wading in. If you have a premium bond and hold it until maturity, there will be no capital gain or loss on either federal or state return. Here's the difference between my hypothetical case and your real one: unless my reference document has been obsoleted, it's not obligatory for federal...
by ofckrupke
Fri Jan 05, 2018 7:49 pm
Forum: Investing - Theory, News & General
Topic: state-specific basis track for premium treasuries?
Replies: 16
Views: 469

state-specific basis track for premium treasuries?

Hypothetical situation here. An owner of a US treasury bond bought at premium elects not to amortize the premium for federal taxation, and is also a resident of a state that taxes capital gains and losses as other income (that is, not at a preferential rate), but is generally in conformity with fede...
by ofckrupke
Thu Jan 04, 2018 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Impact of Tax Reform on California Tax Return
Replies: 7
Views: 1036

Re: Impact of Tax Reform on California Tax Return

Previously the main problem was with AMT. You couldn’t claim the payment against AMT, yet the refund was taxable income. If in a previous year you paid AMT, then only some if any of a state refund in the subsequent year would likely be taxable on form 1040 line 10. [the exact taxable portion is det...
by ofckrupke
Thu Jan 04, 2018 1:01 am
Forum: Personal Finance (Not Investing)
Topic: Impact of Tax Reform on California Tax Return
Replies: 7
Views: 1036

Re: Impact of Tax Reform on California Tax Return

If you overpay your state income tax, will you still have to pay federal income tax on the refund, even though you didn’t or couldn’t deduct it in the prior year? Asking about (hypotheticaly) overpaying in 2018 and then getting a refund and 1099 in 2019. It was already the law that only the portion...
by ofckrupke
Wed Jan 03, 2018 9:12 pm
Forum: Investing - Help with Personal Investments
Topic: California - Intermediate Muni Bonds - effect of capital gains tax
Replies: 5
Views: 363

Re: California - Intermediate Muni Bonds - effect of capital gains tax

If the yield on VCAIX (or VCADX, its Admiral shares counterpart) is even close to the same at the points of purchase and sale, then any capital gain taxation will be de minimis to your purposes. Still, comparison to a ~1-2 year CD is not ideal because the interest rate risks are not well matched.
by ofckrupke
Tue Jan 02, 2018 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage Math
Replies: 13
Views: 1482

Re: Mortgage Math

OP, if you are considering prepayments, the rate of concern is on a marginal dollar of principal. Above the 1M cap on the loan balance, interest on additional principal is not deductible. Whether you can see it simply this way or go through the arithmetic of pro rating the deduction on the year's fu...
by ofckrupke
Sun Dec 31, 2017 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Does donation count for 2017 if donated fund shares do not settle until 2018?
Replies: 35
Views: 1643

Re: Does donation count for 2017 if donated fund shares do not settle until 2018?

Kaye Thomas of Fairmark opines that the settlement date controls the year of deductibility. http://fairmark.com/forum/read.php?4,67538 That may be so for the case discussed in that topic, but if a gift document explicitly waives any otherwise extant right to revoke the gift then the date of its sig...
by ofckrupke
Sun Dec 31, 2017 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: Does donation count for 2017 if donated fund shares do not settle until 2018?
Replies: 35
Views: 1643

Re: Does donation count for 2017 if donated fund shares do not settle until 2018?

Anyone with additional thoughts? Different custodians, but similar experience to cadreamer's. The receiving organizations know what they are doing wrt documenting gifts, and understand both what's permissible by the IRS and expected by their donors. The very strong likelihood is that the charitable...
by ofckrupke
Thu Dec 28, 2017 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: Payoff Mortgage or keep VWIUX
Replies: 8
Views: 938

Re: Payoff Mortgage or keep VWIUX

The SEC yield on VWIUX provides a good and many think the best # for its expected return. Right now that is 2.09%, so 1.96% after NJ taxes, and the fund's duration is 5.3 years. Your effective return on mortgage prepayments depends on whether you would itemize deductions in future years in absence o...
by ofckrupke
Tue Dec 26, 2017 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: ETF Expense Ratio = to $0.00
Replies: 12
Views: 1084

Re: ETF Expense Ratio = to $0.00

triceratop wrote:
Tue Dec 26, 2017 2:52 pm
There seems to be a units problem, too. An expense ratio implies a dimensionless quantity.
Expense Ratio has dimensions of inverse time.
by ofckrupke
Wed Nov 08, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Top tax bracket in CA - Bonds all muni?
Replies: 11
Views: 1213

Re: Top tax bracket in CA - Bonds all muni?

What is the purpose of doing this math? Balancing single-state credit risk against the slight after-tax yield advantage of same-state munis. Cyclesafe prefers to limit CA bonds to 50% of holdings, and has realized that the often suggested 50:50 split between national and CA funds doesn't deliver th...
by ofckrupke
Sat Oct 28, 2017 12:20 am
Forum: Personal Finance (Not Investing)
Topic: HSA and having a baby
Replies: 28
Views: 1612

Re: HSA and having a baby

For the OP the the years would be 2018 and 2019; but yes, this could restore the full HSA tax benefit the OP had marked for the plan option involving split HDHP/PPO coverages before the stork arrives. I'm scratching my head about omitting to mention it because not only did I know this, but actually ...
by ofckrupke
Fri Oct 27, 2017 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Allocation Help
Replies: 8
Views: 601

Re: Allocation Help

Also, be advised, VMGMX is mid-cap growth index, not blended. If VMVAX (mid-cap value index) is also offered by the employer plan, but VIMAX (mid-cap index (blend)) is not, then the 4% to mid-cap could be had as 2% to each of growth and value. If VMVAX is not available, then consider just building T...
by ofckrupke
Fri Oct 27, 2017 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: HSA and having a baby
Replies: 28
Views: 1612

Re: HSA and having a baby

Since *you* will be (presumably far enough) over the $127k wage base for the year, reduction in FICA-subject wage due to premiums/hsa/fsa contributions just shifts the point in the calendar when the 6.2% OASDI goes away (by end of year you've paid 6.2% x 127k regardless) but WOULD reduce your 1.45%...
by ofckrupke
Fri Oct 27, 2017 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: HSA and having a baby
Replies: 28
Views: 1612

Re: HSA and having a baby

Thank you for your feed back. So when she is paying premiums on her own plan, I can subtract 7.5% FICA from her own premiums? And then also 7.5% from when we are combined on one plan? Well, it would be 7.65% on her premium from her payroll, in the plan on the LH. In the plan at far right, I'm assum...
by ofckrupke
Fri Oct 27, 2017 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: HSA and having a baby
Replies: 28
Views: 1612

Re: HSA and having a baby

She will not be over the limit. I'm not sure how that would fit into the calcs. Just a break on the premiums? Premiums, yes; FSA xor HSA (hers,her payroll months), yes. But that brings up a much bigger issue. Namely, until the month starting after she quits , if she's on the PPO then her FSA will b...
by ofckrupke
Fri Oct 27, 2017 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: HSA and having a baby
Replies: 28
Views: 1612

Re: HSA and having a baby

BusDriver34 wrote:
Fri Oct 27, 2017 1:04 pm
We will be above the SS maximum so I didn't include it.
We? It's individually accounted. Will she be over the limit with 5 months of work? OK, admittedly a smaller factor since only 5 months of premiums even if not.

Still in all, I'm with mikep.
by ofckrupke
Fri Oct 27, 2017 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: HSA and having a baby
Replies: 28
Views: 1612

Re: HSA and having a baby

As long as you have a spreadsheet going, consider (if you have time today) modifying formulae in the tax saving rows for: 1) if wife doesn't work in 2nd half of year, possibly you will slip to 25% bracket. 2) payroll-withheld premiums, and HSA xor FSA contributions, also reduce FICA-subject earnings...
by ofckrupke
Tue Oct 24, 2017 2:54 am
Forum: Investing - Help with Personal Investments
Topic: UC 403b vs 457b and which funds?
Replies: 5
Views: 611

Re: UC 403b vs 457b and which funds?

If the onsets of the six figure salaries are staggered by at least one academic/trainee year, then there may be an angle for maxing both plans for the one anticipated to separate first from the current employer to an attending at another employer. The point is, in that year, with one of you earning ...
by ofckrupke
Mon Oct 23, 2017 9:21 am
Forum: Investing - Help with Personal Investments
Topic: FTSE All-World ex-US Small in taxable account?
Replies: 23
Views: 1335

Re: FTSE All-World ex-US Small in taxable account?

1. How would those of us cursed with AMT fill this out? Do I put my "bump" marginal tax rate due to exemption phaseout, or use 28%? And what is the tax rate on QDI? (I don't quite understand what the AMT does with them? 2. How would I go about adding in Fido mutual funds? 1. Use the bump marginal r...
by ofckrupke
Sun Oct 22, 2017 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement (mostly TIAA) allocation questions with 20 year horizon and concern about upcoming market volatility
Replies: 19
Views: 1095

Re: Retirement (mostly TIAA) allocation questions with 20 year horizon and concern about upcoming market volatility

With respect to Real Estate, my question is does it move with stocks in most markets or does it move differently so in the case of a 10-20% market correction, would an RE fund at TiAA also probably be down 10-20%? Firstly, TIAA Real Estate Account shouldn't be confused with any(?) other quasi-publi...
by ofckrupke
Sun Oct 22, 2017 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: FTSE All-World ex-US Small in taxable account?
Replies: 23
Views: 1335

Re: FTSE All-World ex-US Small in taxable account?

You'll want to include the federal and state marginal rate assumptions in order for anyone else to know whether your numbers are of any use to them. Likewise, If your rates are not the ones morningstar used, then their tax cost #s are not of use to you.
by ofckrupke
Sun Oct 22, 2017 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement (mostly TIAA) allocation questions with 20 year horizon and concern about upcoming market volatility
Replies: 19
Views: 1095

Re: Retirement (mostly TIAA) allocation questions with 20 year horizon and concern about upcoming market volatility

Welcome to this forum. 24% TIAA Traditional - 80% of this is in GRA’s and can be moved out at any time. You should review the TIAA contract(s), because something above is wrong; GRA is an illiquid Trad flavor, whereas SRA and GSRA are liquid. 1) should I be more in stocks with TIAA based on age, 20 ...
by ofckrupke
Fri Oct 20, 2017 11:49 am
Forum: Personal Finance (Not Investing)
Topic: I have to fire someone that I care about personally
Replies: 83
Views: 5674

Re: I have to fire someone that I care about personally

Since the decision has already been made, just know how this ends (and indulge our small advance schadenfreude): a) before long, the new talent dumps your group for something bigger, and with the worst possible timing. Wariness over the instability paradoxically makes it harder to fill the spot. b) ...
by ofckrupke
Fri Oct 20, 2017 11:18 am
Forum: Investing - Help with Personal Investments
Topic: contribution limits with 403b/457/defined contribution, etc
Replies: 4
Views: 426

Re: contribution limits with 403b/457/defined contribution, etc

Employer A defined contribution and Employer B ARP definitely happen and will likely total about $20,000/yr. Are these considered 401k? The Emp_A DC plan and Emp_B ARP are known as qualified plans under IRC section 401. Questions: 1) In additional to DC/ARP contributions, I can also contribute $18,...
by ofckrupke
Fri Oct 20, 2017 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Life in AMT Hell (or, How I Learned to Keep Worrying and Hate the Exemption Phaseout)
Replies: 65
Views: 8639

Re: Life in AMT Hell (or, How I Learned to Keep Worrying and Hate the Exemption Phaseout)

Doesn’t overpaying state estimated tax come back to bite you the next year? It doesn't if you overpay in a non-AMT year and get the refund in an AMT year. Oddly almost no "how-to-deal-with-the-AMT" articles mention this; editors must believe that no one sees it coming until they're actually in a ye...
by ofckrupke
Wed Oct 18, 2017 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: TIAA Annuity SRA vs. Total Bond Market - Help!
Replies: 5
Views: 594

Re: TIAA Annuity SRA vs. Total Bond Market - Help!

If the old employer's plan really does allow post-separation inbound rollover of pre-tax money from TIRAs, other old employer plans, etc, then I'd probably be doing this, if not with the entire amount available. For comparison you should use the SEC yield of the alternative (VBTLX in this case, now ...
by ofckrupke
Wed Oct 18, 2017 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: Tracking HSA investment income/cost basis for CA state taxes
Replies: 18
Views: 1705

Re: Tracking HSA investment income/cost basis for CA state taxes

[...] invested the money in an intermediate-term Treasury ETF (ITE). [...] might I just as well go ahead and set the Treasury bond ETF to auto-reinvest dividends? Because this ETF distributes income monthly, I'd re-invest manually rather than automatically. It could be done on longer intervals like...
by ofckrupke
Tue Oct 17, 2017 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: HSA taxation in Calif
Replies: 21
Views: 1897

Re: HSA taxation in Calif

I let payroll contributions[1] accumulate in the interest-bearing sub-account to reduce the number of CA tax lots, and also time the share purchases to coincide with the TIPS fund's quarterly income distribution (reinvestment is automatic/forced at HealthEquity) to reduce the count of tax lots on a ...
by ofckrupke
Tue Oct 17, 2017 11:31 am
Forum: Personal Finance (Not Investing)
Topic: HSA taxation in Calif
Replies: 21
Views: 1897

Re: HSA taxation in Calif

Your custodian will send any needed 1099-Int or B or Div (I only ever got the first one...). Really? AFAIK only annual 5498-SA for contributions and 1099-SA for distributions are reportable by the HSA provider to the federal government, so CA holders of HSAs should not expect "mock" 1099-Int/B/Div ...
by ofckrupke
Fri Oct 13, 2017 7:56 pm
Forum: Investing - Theory, News & General
Topic: "Dumb and dumber" from Allan Roth
Replies: 10
Views: 3002

Re: "Dumb and dumber" from Allan Roth

However, many residents of various other states have access to only long-term state-specific tax-exempt bond funds. Those funds have durations of 15-17 years. If interest rates were to tick up 2 percentage points, you'd expect to see the NAV fall by about 30%. Or, point another way, you'd need to w...
by ofckrupke
Fri Oct 13, 2017 7:44 pm
Forum: Personal Consumer Issues
Topic: Liability of phone conversations while my client is driving (and I am not in the car)?
Replies: 64
Views: 4415

Re: Liability of phone conversations while my client is driving (and I am not in the car)?

You know better about their health. That doesn't mean you can make life decisions for them in all areas. Right. They get to make the decision about whether to hire him, or retain him, on his terms. I buy cars with voice sync for a reason, it makes talking on the phone while driving relatively painl...