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Pennstateclj1

Up to $15,000 per year per recipient does not reduce the lifetime exemption. Any amount over $15,000 reduces the lifetime exemption and requires filing form 709 with your tax return. However, there is no tax due until one exceeds the lifetime exemption. Ah I understand now. So gifting exemption doe...

Pennstateclj1

Since the 24% tax bracket goes to $315,000, I thought about converting Trad to Roth up to the top of that bracket each year for the next 5 years so that they also avoid RMD's and have no pre-tax assets when SS kicks in. This isn't what you asked, but ... Since they are age 65, are they on Medicare ...

Pennstateclj1

They should keep under the gifting "limits" which I believe are less than $15,000 per person (so I believe that should gift slightly less that $60,000). Doulbe check that. Cody Why? They will not be subject to estate taxes given the size of their portfolio. Maybe I misunderstood the gift ...

Pennstateclj1

NYS pensions and military pensions as well as social security benefits are not taxed by NYS. Also the first $20,000 distributed from each spouse's IRA is not taxed by NYS. Ahhh, ok, so really that 6% isn't coming into play for most of it next year when they are both on pension incomes. This year th...

Pennstateclj1

Cody wrote: ↑Wed Oct 24, 2018 7:20 am They should keep under the gifting "limits" which I believe are less than $15,000 per person (so I believe that should gift slightly less that $60,000). Doulbe check that.
Cody

Gifting exemption amount for 2018 is $15k. I looked it up.

Pennstateclj1

It does appear that 85% of their SS will be taxed regardless of its size at their marginal bracket. Consider whether their pensions will continue for a surviving spouse before giving away too much of their assets. On the downside, a surviving spouse also is kicked into a higher tax bracket. Not hav...

Pennstateclj1

If I understand the numbers you presented correctly, this is their situation relative to Roth conversions. 2018 Adjusted gross income is 45K + 50K + dividends. (This may not be true if they worked this year. The 24% tax rate implied they did.) If they did not and if both are age 65, standard deduct...

Pennstateclj1

Hello, I am trying to assist a relative with some tax strategies. They've done a great job accumulating, however they have pensions which fill up their tax buckets. They are trying to minimize income taxes and gift the money in case they have a long term care triggering event or something of that so...

Pennstateclj1

Hello, I know there are some social security gurus on the boards, so I am wondering if there are any PA state retirement gurus on the board that can help me understand the options available and how best to maximize them? I have a high earner friend that may be able to maximize the 403b and 457b, and...

Pennstateclj1

Anyone know what happens if the funds do not arrive in time? Assume no margin account. The transfer occurs via ACH (Automated Clearing House) which can take 1-3 days to actually arrive. In this instance the money, the transfer is done via a "pull" from the institution instead of a "p...

Pennstateclj1

I have employer ESPP stock in Fidelity and Schwab. I'd like to consolidate these into Vanguard to simplify and later sell at my convenience. Anyone know if "metadata" like grant date, FMV at purchase, qualified status etc. will also transfer? For Schwab- check this out- https://www.schwab...

Pennstateclj1

You cannot split a lot of the same security in the same account- there can be only one entry for the security in the account. The only way to accomplish this would be to open a separate account at the same BRK firm and journal the partial shares over (which is not a transfer in the ACATS system but ...

Pennstateclj1

I want to do a partial transfer. I think I have a solution to not sell the fractional. What if, in my example, I only transferred 6 out of 7.5 shares? The remaining 1.5 shares would remain intact without being liquidated correct? And the one lot would be split up so half of it transferred out while...

Pennstateclj1

Not ideal, but have to play by their rules if you're doing a custodian to custodian transfer.

Pennstateclj1

It seems that most ppl prefer TIAA because of the lower fees but I was worried about their 10 year payout. Does anyone have any input on this? I have also attached the links to the info I could find on the funds they offer. TIAA: https://www.tiaa.org/public/tcm/msorp/view-all-investments?planId=151...

Pennstateclj1

I am considering a career change, and an considering what to do with my retirement savings. I plan to open up an individual 401K to handle retirement contributions from consulting income. I would like to be able to roll over my retirement savings from my current company's 401k to the individual 401...

Pennstateclj1

An alternative might be to buy a fraction of a share to create a whole share, not sure if you can do that. Interestingly enough, I have one equity that has fractional shares and I can't even place an order to sell them online, I either have to choose "sell all" or call. I had to call to f...

Pennstateclj1

Yes, when you do an ACATS transfer you can specify how many shares to transfer. I've never seen an ACATS transfer fancy enough to specify lots (i.e. I want to transfer 10 shares from the December lot and 25 shares from the January lot.) But maybe they exist. The only way to kinda do what you're men...

Pennstateclj1

No I didn’t work for either of them, but I frequently received calls from them and made calls out to them- and it’s ALL in who you get on the phone whether you get good info or not. Sad right? Check out this thread- https://www.bogleheads.org/forum/viewtopic.php?t=113387 Thanks. I called TDA again ...

Pennstateclj1

No I didn’t work for either of them, but I frequently received calls from them and made calls out to them- and it’s ALL in who you get on the phone whether you get good info or not. Sad right?

Check out this thread- viewtopic.php?t=113387

Pennstateclj1

Fractional shares transfer for open-end mutual funds but not for stocks or ETFs. I would imagine you did not to speak to someone that specifically handles transfers and got bad info. Did you speak to someone in the transfer department of either of those firms or just general customer service? Becaus...

Pennstateclj1

I know about the 75$ a year to have the account, I was just wondering if that's the only expense of their brokerage account as my advisor told me. Other that that, is it really like holding the plan at Vanguard or Schwab? Depends what you're buying. You mentioned mutual funds, are you buying loaded...

Pennstateclj1

I see. If the ACATS system doesn't recognize individual lots, do the lots carry over to the new brokerage though? I would imagine your account holdings after transfer will show 7 shares. When you click on the lot details it will still give you the breakdown of the lots. When Vanguard sends the cost...

Pennstateclj1

Whoa... That sucks. So if I have 16 lots with fractional shares, I have 16 taxable events on my hands? Ugghh. Maybe I confused you a little. Eventually yes you'll have to report each lots cost basis for the non-covered shares. The covered shares will automatically report basis to the IRS and will s...

Pennstateclj1

Is it really possible that keeping the Simple IRA in a brokerage account at Ameriprise would be equivalent to rolling it over at Vanguard, Fidelity or Schwab in terms of fees and expenses? She insisted that there would be non other charges than the annual account fee. I'm not really convinced about...

Pennstateclj1

Are they covered securities- meaning did you purchase them prior to 2012 or after 2012? https://investor.vanguard.com/taxes/cost-basis/covered-noncovered If so, the cost basis will transfer to the new custodian. If it was prior to 2011 you will need to keep the records for when you eventually sell ...

Pennstateclj1

See- https://www.irs.gov/retirement-plans/re ... h-accounts

and also: https://www.investopedia.com/articles/r ... llover.asp

Pennstateclj1

I believe they are differentiating between your contributions and earnings. The return of roth contributions and then the money you earned in the market on those contributions is what they are labeling as "taxable" if you were to take them out of the Roth prior to the 5-year Roth 401k rule...

Pennstateclj1

@Spirit Rider I assisted with transfer and rollovers at my previous firm in an inbound call center environment for about 5 years. During that time, I probably called out to 5,000 different employer plans to help people with rollovers. While not common- some plans allow in-service rollovers and it is...

Pennstateclj1

Are they covered securities- meaning did you purchase them prior to 2012 or after 2012? https://investor.vanguard.com/taxes/cost-basis/covered-noncovered If so, the cost basis will transfer to the new custodian. If it was prior to 2011 you will need to keep the records for when you eventually sell t...

Pennstateclj1

This type of transfer cannot be done via ACATS. ACATS transfers are only from one brokerage account to another brokerage account of matching registration. The receiving firm ALLY will send the signed and dated transfer form to Vanguard along with the ALLY delivery instructions. Typically, checks are...

Pennstateclj1

I would also look into the following insurances if you don't have them-
Umbrella liability
Long term disability

Pennstateclj1

I'd keep it simple and go 50/50 stocks bonds, you could leave it that way for a few years, that's more conservative than either of those target retirement funds. Remember defense is more important the older you get, you have less time to ride the ups and more importantly the downs- With your 35k- (a...

Pennstateclj1

So you can max out your 401k pre-tax to reduce your tax bill. It should be $23,000 you can contribute this year. If that puts you under $112,000 for MAGI you can also contribute $6,500 to a Roth IRA. As far as a taxable account, you are in a high bracket so a tax-exempt bond fund would be appropriat...

Pennstateclj1

Welcome to the forum and thanks for serving, Question 1- Steer clear of Dave Ramsey's investing advice as you noted. I started investing with American Funds when I was 18, and what a scam that was. Front load of 5.75%, you don't need the ELP advisor, RUN away from that guy. Go with Vanguard. Questio...

Pennstateclj1

Welcome to the forum! Without listing your Expense Ratios for each account, it's hard to tell, but I'll go out on a limb and say the Vanguard funds would be the cheapest. What's your Asset Allocation or stock/bond ratio? Without your desired asset allocation we can't give percentage advice. Are you ...

Pennstateclj1

chemeng wrote:Fortunately, my company offers a good amount of options for 401k

Lots of options doesn't necessarily mean low cost. We prefer index funds or low cost active funds, something in the .2% expense ratio range or preferably lower.

Pennstateclj1

An important item you left out is marginal tax brackets for fed/state, that's another important factor.

Pennstateclj1

Welcome to the forum, Owed: $120,426 Appraised value in March 2012: $126,000 You might have a problem here, because of the lack of equity, you'll most likely have to use some of that cash. Have you considered just paying it off completely with the inheritance money so you have no mortgage? You're pr...

Pennstateclj1

They also have a five year home equity loan at 1.99% that should have low or no closing costs.https://www.penfed.org/home-equity-loan/ This. No closing costs as long as you don't pay it off in 2 years or something, it's in the fine print at the bottom. Then max all retirement accounts and taxable w...

Pennstateclj1

FB01 wrote:Pennstateclj1,

Do you reinvest the dividend in VWITX which you have for emergency ?

Yes

Pennstateclj1

lmpmd wrote:She pushes index funds here. That seems wise:
http://finance.yahoo.com/blogs/daily-ti ... 54956.html

I was waiting for her to plug Bogleheads the whole time, sadly it never happened.

Pennstateclj1

Maybe statewide there is, but it doesn't mean each municipality that the bond was issued to got their act together. CA inter term tax-exempt has 1008 bonds, all concentrated in CA, 20% of the bonds can be AMT bonds. https://personal.vanguard.com/us/funds/snapshot?FundId=0100&FundIntExt=INT#tab=2...

Pennstateclj1

The general, VWiTX. I don't want to concentrate my risk to CA especially given current budget shortfalls and such.

Pennstateclj1

For one tier of our emergency fund, we use Vanguard Intermediate tax-exempt bonds. Hold more in the fund if you're worried about -10% fluctuations. $25,000 emergency fund with 10% cushion = $27,500.

Pennstateclj1

I enjoyed it too, I'm finally above average at something.

Pennstateclj1

If you use their car buying service, you can get their low rates. This is in addition to any dealer incentives. If you go the other way through the dealer, you might only get to take $1000 cash back, but get a higher interest rate. Or $0 cash back, and a 0% rate but pay a higher up front price for t...

Pennstateclj1

The base Kia Forte through the Penfed auto buying service is $15,516 for the 4 dr automatic.

The base Corolla 4 dr automatic is $16,200 through the same service.

.49% financing for 48 months.

Pennstateclj1

We have a sufficient emergency fund if you consider our savings account balances and what we've contributed to our Roths. I might just hold onto $1k in savings, plus what's in the Roths as backup and put the rest of the cash towards the CC's. You'll never win paying interest. Yes, we are contributi...

Pennstateclj1

Loan initiated in May 2006 Current principal: $116k @5.375% Monthly payment breakdown P&I: 743.73, Tax: 57.74, Insurance: 98.40, PMI/MIP :49.88 My questions are: 1) If we were to refi the loan at a lower rate, would that negate our FHA program loan agreement? (not sure of terminology) Chances a...

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