Search found 7755 matches

by Epsilon Delta
Sun Feb 17, 2019 12:15 pm
Forum: Personal Investments
Topic: Changing from Roth to IRA
Replies: 14
Views: 825

Re: Changing from Roth to IRA

So what is the limit for a deduction for an IRA? 120K was just a rough estimate of their net income. Right now after standard deduction, health insurance, 403b contributions, FSA, they are around 80K gross income. IRA deduction is based on MAGI. You need to read the rules on how to figure this out....
by Epsilon Delta
Sun Feb 17, 2019 11:59 am
Forum: Personal Consumer Issues
Topic: send in driver's license photo for new Capital One credit card
Replies: 41
Views: 2839

Re: send in driver's license photo for new Capital One credit card

I can’t recall any US hotel I ever stayed at doing that. Try arriving on foot, with little luggage and paying cash. I believe the usual methods of booking, using and paying for a hotel incidentally provide them with ID, but if you bypass all of that they usually ask. Or maybe I look like the type o...
by Epsilon Delta
Sun Feb 17, 2019 11:50 am
Forum: Personal Consumer Issues
Topic: Hostels while solo traveling in Europe?
Replies: 9
Views: 1142

Re: Hostels while solo traveling in Europe?

Watty. I like your suggestion of trying out a hostel in the early part of my stay and then if I like it continue it on. I am going in "off-season" I think. First 2-3 weeks of May should be borderline off-season I think. But I will check local school calendars. The experience at a hostel in London i...
by Epsilon Delta
Sun Feb 17, 2019 12:36 am
Forum: Personal Consumer Issues
Topic: using uber versus buying a car
Replies: 34
Views: 1652

Re: using uber versus buying a car

It's almost certainly cheaper to rent. If excess frugality is the main issue then committing to spending more on rentals is your best bet. There are various tricks you could consider. Setting up a separate account for the transport budget might work. Perhaps a prepaid cards with a monthly auto depos...
by Epsilon Delta
Sun Feb 17, 2019 12:12 am
Forum: Investing - Theory, News & General
Topic: Is it best to pay all taxes up front?
Replies: 4
Views: 702

Re: Is it best to pay all taxes up front?

The standard answer is still essentially correct. Compare the marginal tax rates now with the expected marginal tax rate in retirement. If today's rate is lower use the Roth, if today's rate is higher use tax deferred. The extra taxable account does tilt very slightly to using a Roth, if the margina...
by Epsilon Delta
Sat Feb 16, 2019 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: Marriage, death, unpaid taxes
Replies: 11
Views: 851

Re: Marriage, death, unpaid taxes

Filing an amended return is optional, so no one is responsible for doing so. If somebody (who is not the IRS) is asserting that somebody else must amend they are simply wrong.
by Epsilon Delta
Sat Feb 16, 2019 10:29 pm
Forum: Personal Consumer Issues
Topic: send in driver's license photo for new Capital One credit card
Replies: 41
Views: 2839

Re: send in driver's license photo for new Capital One credit card

And if you use cash, you can still expect the bank to file a suspicious activity report on you for any large cash transactions ($10,000 or higher in a single or related transactions). That would be a cash (or currency) transaction report. Suspicious activity reports are a completely different thing.
by Epsilon Delta
Sat Feb 16, 2019 5:52 pm
Forum: Investing - Theory, News & General
Topic: Why is 401k maxing preferred over taxable?
Replies: 68
Views: 4875

Re: Why is 401k maxing preferred over taxable?

2) If your 401k is sufficiently funded, it is worthwhile to divert some amount to taxable to allow you to build up pre-taxed income. When the time comes to do Roth conversions or otherwise pay your taxes, it is better to pay them with pre-taxed income rather than withdrawing additional amounts from...
by Epsilon Delta
Sat Feb 16, 2019 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: Another "Is it worth it to fix" question
Replies: 30
Views: 1896

Re: Another "Is it worth it to fix" question

If the tank is failing from rust it is likely that everything else under the car is also questionable. This includes fuel lines, brake lines and floor pans as well as suspension parts. It's probably worth having somebody check that the car really is in the good condition you think it is. Some of the...
by Epsilon Delta
Sat Feb 16, 2019 5:21 pm
Forum: Personal Investments
Topic: Partially recharacterize Roth IRA contribution for 2018
Replies: 13
Views: 419

Re: Partially recharacterize Roth IRA contribution for 2018

Thanks. What's the purpose of the statement, from the IRS's perspective. Why is it necessary? Why isn't it enough to know that I contributed x in traditional and y in Roth? A recharacterization can be preformed as late as October 15 of the next year. This is well after the cut off for the informati...
by Epsilon Delta
Sat Feb 16, 2019 4:21 pm
Forum: Personal Investments
Topic: Partially recharacterize Roth IRA contribution for 2018
Replies: 13
Views: 419

Re: Partially recharacterize Roth IRA contribution for 2018

For taxes, after I do the recharacterization can I not simply input my taxes as if I had originally done a $630 Roth contribution and $4870 traditional contribution? I am required to mention recharacterizing? The forms will look exactly like an original $630 Roth contribution and $4870 tIRA contrib...
by Epsilon Delta
Sat Feb 16, 2019 12:51 am
Forum: Personal Finance (Not Investing)
Topic: [Want to do backdoor Roth, but non-deductible contributions not maxed out]
Replies: 13
Views: 497

Re: [Want to do backdoor Roth, but non-deductible contributions not maxed out]

Thanks. I suppose I should just keep the fund in the Trad IRA in a money market account so they don't appreciate much between the time of contribution and the time of conversion, hopefully just a few days each time. A few days of money market returns is not going to make a significant difference, b...
by Epsilon Delta
Sat Feb 16, 2019 12:38 am
Forum: Personal Finance (Not Investing)
Topic: How to live well in retirement below the poverty line (not pay taxes)
Replies: 44
Views: 5497

Re: How to live well in retirement below the poverty line (not pay taxes)

My real question is what's the best way to maximize income while paying little to no tax after retirement? In the last year of work, tax gain harvest all your capital gains and convert all your traditional 401(k)s and IRAs to Roth. It's not the answer that's wrong. I would think you tax gain Harves...
by Epsilon Delta
Fri Feb 15, 2019 1:26 pm
Forum: Personal Investments
Topic: Can't contribute to an IRA during grad school but still want to save
Replies: 20
Views: 871

Re: Can't contribute to an IRA during grad school but still want to save

In a taxable account having a 10% bond allocation in a separate bond fund is a lot easier to unwind than a 10% bond allocation in Vanguard Target 2060. Unwinding the latter requires selling the 90% of stock. This could incur capitals gains at a time when you are in a higher tax bracket.
by Epsilon Delta
Fri Feb 15, 2019 1:17 pm
Forum: Personal Consumer Issues
Topic: send in driver's license photo for new Capital One credit card
Replies: 41
Views: 2839

Re: send in driver's license photo for new Capital One credit card

The bank is probably equally unsure about what "recent" banking law changes have made things more difficult.

It is very common for banks (and others) to introduce their own rules for their own purposes (good, bad or non-existent) and blame it on the Feds when somebody complains.
by Epsilon Delta
Fri Feb 15, 2019 12:55 pm
Forum: Investing - Theory, News & General
Topic: Charlie Munger: Teaching young people to actively trade stocks is like starting them on heroin
Replies: 51
Views: 4209

Re: Charlie Munger: Teaching young people to actively trade stocks is like starting them on heroin

nisiprius wrote:
Fri Feb 15, 2019 10:44 am
Oh... and this. Written in the 1870s, published posthumously in 1902. I don't know exactly which side Samuel Butler is on here--the wrong side, I think
I believe Samuel Butler is making a modest proposal. It would have taken great perspicuity to use the heroin simile in the 1870s.
by Epsilon Delta
Fri Feb 15, 2019 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: turbo tax online deleting form 2210 help
Replies: 17
Views: 558

Re: turbo tax online deleting form 2210 help

TT told you to fix form 2210 so you deleted form 2210. Apparently that is not the fix TT was expecting.

It is likely that the bug in TT is that it is giving unclear advice.
by Epsilon Delta
Fri Feb 15, 2019 12:23 pm
Forum: Personal Investments
Topic: Contributed to Roth when exceeding limit
Replies: 20
Views: 602

Re: Contributed to Roth when exceeding limit

Do the "backdoor" quirks apply to this in any way? I understand I have to pay taxes on the converted money. And I thought this was the case for backdoor anyway so I am not clear on the distinction. A "backdoor Roth" is actually a contribution followed by a conversion, so the quirks flow the other w...
by Epsilon Delta
Fri Feb 15, 2019 11:56 am
Forum: Personal Investments
Topic: Contributed to Roth when exceeding limit
Replies: 20
Views: 602

Re: Contributed to Roth when exceeding limit

It is based on your modified aggregated gross income (MAGI) which should be equal to or larger than your AGI (line 7 on the new 1040 form). It is not based on taxable income (line 10 of the new tax form). Modified Adjusted Gross Income MAGI can be larger, equal to or smaller than AGI, the modificat...
by Epsilon Delta
Fri Feb 15, 2019 11:31 am
Forum: Personal Investments
Topic: Can't contribute to an IRA during grad school but still want to save
Replies: 20
Views: 871

Re: Can't contribute to an IRA during grad school but still want to save

At this point it is MOST important to invest money and time in yourself. Don't get diverted into unnecessary tasks. I agree he should not seek out other work just to generate earned compensation and an IRA. But he may have earned compensation from something he would do for other reasons. IMHO the "...
by Epsilon Delta
Fri Feb 15, 2019 11:12 am
Forum: Personal Finance (Not Investing)
Topic: How to live well in retirement below the poverty line (not pay taxes)
Replies: 44
Views: 5497

Re: How to live well in retirement below the poverty line (not pay taxes)

carol-brennan wrote:
Thu Feb 14, 2019 6:31 am
My real question is what's the best way to maximize income while paying little to no tax after retirement?
In the last year of work, tax gain harvest all your capital gains and convert all your traditional 401(k)s and IRAs to Roth.

It's not the answer that's wrong.
by Epsilon Delta
Fri Feb 15, 2019 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion
Replies: 10
Views: 955

Re: Roth Conversion

You need to make estimated tax payments in the same calendar quarter as the relevant income. Four equal quarterly payments also work and are in some ways simpler. If income is front loaded some of the estimated tax payments can be made in in later quarters than the income and still avoid a penalty....
by Epsilon Delta
Fri Feb 15, 2019 10:15 am
Forum: Personal Investments
Topic: Can't contribute to an IRA during grad school but still want to save
Replies: 20
Views: 871

Re: Can't contribute to an IRA during grad school but still want to save

I figure because my income will be about $25,000 per year from the stipend and a MAXIMUM additional $1,000 from any returns (if I'm contributing $5,000 per year and somehow get a 20% return), then my tax bracket will be so low that it actually won't matter that the funds aren't in a tax-advantaged ...
by Epsilon Delta
Fri Feb 15, 2019 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Rollover IRA to Roth IRA Backdoor Tax [Non-resident working in US]
Replies: 7
Views: 340

Re: Rollover IRA to Roth IRA Backdoor Tax [Non-resident working in US]

As I understand it ... Withholding tax is not tax withholding. It is a flat rate tax on certain payments to Non-resident Aliens. It is not a payment on account to be settled when you file your tax returns. Generally NRA do not need to file tax returns, and even if US law requires them to do so there...
by Epsilon Delta
Fri Feb 15, 2019 12:18 am
Forum: Investing - Theory, News & General
Topic: Big IRA accounts
Replies: 48
Views: 4663

Re: Big IRA accounts

Spirit Rider wrote:
Thu Feb 14, 2019 5:48 pm

Compensation is W-2 (Box 1 - Box 11) and/or Form 1040 (line 12 - line 27).

In 2017. 2018 1040 doesn't even have a line 27.
by Epsilon Delta
Thu Feb 14, 2019 11:37 pm
Forum: Personal Finance (Not Investing)
Topic: How To Fix Excess Roth Removal With Amended Return
Replies: 10
Views: 602

Re: How To Fix Excess Roth Removal With Amended Return

3) Eventually file a 5329 for each 2018 and 2019 for each of us with the 6% penalty on carried excess of $75 ($10) 4) In 2020 contribute $5925 each (assuming Max Roth contribution is $6000), so the carried $75 excess goes into 2020 contribution and is eliminated. - For 4) Is there any paperwork inv...
by Epsilon Delta
Thu Feb 14, 2019 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: How To Fix Excess Roth Removal With Amended Return
Replies: 10
Views: 602

Re: How To Fix Excess Roth Removal With Amended Return

3) Eventually file a 5329 for each 2018 and 2019 for each of us with the 6% penalty on carried excess of $75 ($10) 4) In 2020 contribute $5925 each (assuming Max Roth contribution is $6000), so the carried $75 excess goes into 2020 contribution and is eliminated. - For 4) Is there any paperwork inv...
by Epsilon Delta
Thu Feb 14, 2019 5:05 pm
Forum: Non-US Investing
Topic: EU investor: any way to avoid punitive US estate tax on death?
Replies: 28
Views: 1921

Re: EU investor: any way to avoid punitive US estate tax on death? [Ireland]

The US and Ireland are not the only two countries in the world. If you find these are bad you might need a wider net.
by Epsilon Delta
Thu Feb 14, 2019 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Pay Tax on Husband’s Bonus Check Received the Year After He Died?
Replies: 16
Views: 2789

Re: Do I Pay Tax on Husband’s Bonus Check Received the Year After He Died?

This is known as "Income In Respect Of A Decedent" or IRD. That may help you search if the IRS pub above does not help. I'd suggest you also check your state tax rules.
by Epsilon Delta
Wed Feb 13, 2019 11:29 pm
Forum: Personal Investments
Topic: $400 underpayment penalty
Replies: 14
Views: 2380

Re: $400 underpayment penalty

The penalty is calculated as daily interest. Paying now rather than on April 15th will save 2 months interest. Ideally you'd pay enough to reach the 85% of 2018 or 100/%110% of 2017 safe harbor amount. That would stop any further penalty from the date of payment. But any payment would help. Payment ...
by Epsilon Delta
Wed Feb 13, 2019 4:18 pm
Forum: Personal Consumer Issues
Topic: separate computers for specific purposes--how many and for what?
Replies: 35
Views: 2503

Re: separate computers for specific purposes--how many and for what?

I would throw out multiple computers mean multiple systems you have to keep up to date with security patches, OS updates, etc... Now you also have to sync password managers between computers (you are using a password manager right). This step should be skipped. If you have separate computers to par...
by Epsilon Delta
Wed Feb 13, 2019 4:12 pm
Forum: Personal Investments
Topic: 2019 Roth IRA limits: Clarification needed
Replies: 22
Views: 1084

Re: 2019 Roth IRA limits: Clarification needed

2. If you are currently far below the limit, as you say, getting a $150k job in August is not likely to put you over by the end of the year, unless there is also a great signing bonus. Prorate both salaries to double check. Also, it depends on your bonus and benefits. If you make $150k, but contrib...
by Epsilon Delta
Wed Feb 13, 2019 4:03 pm
Forum: Non-US Investing
Topic: What to do...FED Taxes again.
Replies: 8
Views: 1116

Re: What to do...FED Taxes again.

Time has flown by & I'm now looking through the cross hairs at the magic 70 years old. Not there yet, 3 months away.... It looks like you will attain age 70.5 in 2019 (Your 70th birthday is before July 1 2019). That means you have an RMD due for 2019 and the first withdrawal from the 401(k) is that...
by Epsilon Delta
Wed Feb 13, 2019 2:43 pm
Forum: Personal Investments
Topic: 2019 Roth IRA limits: Clarification needed
Replies: 22
Views: 1084

Re: 2019 Roth IRA limits: Clarification needed

2. Understood. Thank you. But my question is more about what to do if I have already contributed the maximum early this year, but then situation changes as described. What should / will be the course of action (mine / IRS')? There are at least three remedies if the Roth contribution turns out to be...
by Epsilon Delta
Wed Feb 13, 2019 2:25 pm
Forum: Personal Investments
Topic: 2019 Roth IRA limits: Clarification needed
Replies: 22
Views: 1084

Re: 2019 Roth IRA limits: Clarification needed

2. If you are currently far below the limit, as you say, getting a $150k job in August is not likely to put you over by the end of the year, unless there is also a great signing bonus. Prorate both salaries to double check. Also, it depends on your bonus and benefits. If you make $150k, but contrib...
by Epsilon Delta
Wed Feb 13, 2019 2:13 pm
Forum: Personal Consumer Issues
Topic: Need help with frequent week-long stays in Boston over next 18 mos
Replies: 68
Views: 3219

Re: Need help with frequent week-long stays in Boston over next 18 mos

If you are not familiar with the area stay somewhere. Then look around and see if there is somewhere better. Check out the commute, neighborhoods etc. You do not have to, nor should you, start with an 18 month commitment.
by Epsilon Delta
Wed Feb 13, 2019 1:59 pm
Forum: Personal Consumer Issues
Topic: Roof leak, poor workmanship, what now?
Replies: 4
Views: 523

Re: Roof leak, poor workmanship, what now?

The problem seems to be that the new roof shingles were much thicker than the old shingles. At the places where the roof meets exterior wall, the new shingles didn't fit well under the existing vinyl siding. Rather than tell me of this problem (and maybe I would have switched to the thinner 20-year...
by Epsilon Delta
Wed Feb 13, 2019 1:40 pm
Forum: Personal Investments
Topic: Bank Needs my Annual income for a Money Market Account?
Replies: 10
Views: 1395

Re: Bank Needs my Annual income for a Money Market Account?

I've seen more of these questions even from CC companies where I've had relationships for years. Some of it is creep, some of it is interpretations of the USA Patriot Act/Know Your Customer, etc. Or a creepy, self interested interpretation of "Know Your Customer". Companies are very quick to blame ...
by Epsilon Delta
Wed Feb 13, 2019 11:43 am
Forum: Investing - Theory, News & General
Topic: 327 Years of British Equity History
Replies: 19
Views: 1924

Re: 327 Years of British Equity History

And when we get back to the early parts of the timeline we see things like: 3 companies making up 90%+ of the market cap. No stocks being traded for weeks or months at a time for some securities. And so on. There is evidence that the "market" is capturing only a small part of the economy.* The reco...
by Epsilon Delta
Wed Feb 13, 2019 11:12 am
Forum: Investing - Theory, News & General
Topic: Will wife’s social security affect my Roth conversions.
Replies: 30
Views: 2440

Re: Will wife’s social security affect my Roth conversions.

It's not "if she does not estimate a shorter than average lifespan", it's if EITHER have a shorter lifespan. Remember, the lower SS payment (hers) will stop when EITHER one passes away. If you believe that BOTH of you will live pass the average age, then yes, they would be better off waiting to col...
by Epsilon Delta
Wed Feb 13, 2019 10:59 am
Forum: Investing - Theory, News & General
Topic: Will wife’s social security affect my Roth conversions.
Replies: 30
Views: 2440

Re: Will wife’s social security affect my Roth conversions.

Thanks for the clarification, that does make a difference. Note that the surviving spouse's benefit will still be lower than if she had waited to full retirement age, not sure how that factors into the equation. Taking your SS early on your own record does not affect your survivors benefit. You may...
by Epsilon Delta
Tue Feb 12, 2019 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: Rule of 55 is it official?
Replies: 62
Views: 14636

Re: Rule of 55 is it official?

I am not sure what the point is, with withdrawal $20K from Roth IRA, and add back $20K to the Roth IRA via conversion. Some Roth* withdrawals are tax and penalty free before age 59.5. So if you are say 50. Compare a) withdraw $20k from a Roth and convert $20k from a tIRA to a Roth b) withdraw $20k ...
by Epsilon Delta
Tue Feb 12, 2019 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: W-2 with different state tax withheld, how to file?
Replies: 5
Views: 298

Re: W-2 with different state tax withheld, how to file?

You should probably file a non-resident return with the other state to claim a refund of any taxes withheld. There will usually be a lot of zeros on that form (everything except amount of tax withheld and refund due). You can probably do this on paper if TT or whoever wants to charge you for state e...
by Epsilon Delta
Tue Feb 12, 2019 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Shifting approach to account access as kids are grown
Replies: 12
Views: 851

Re: Shifting approach to account access as kids are grown

The credit union is convenient and has a local branch less than a mile from our house. However, the website is kind of clunky and the credit union still requires certain things to be done in person that a place like Fidelity would not. Both kids live locally at present, but I expect both will move ...
by Epsilon Delta
Tue Feb 12, 2019 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: [2018 tax return - How does it compare to previous years?]
Replies: 193
Views: 10777

Re: Tax 2018: Shock and Awe

And my favorite -- the line that shall not be named. The white rectangle to the left of line 6. What white rectangle? :shock: Am I missing a white rectangle???? You might just be calling it something else. Hard to say because it shall not be named, so circumlocutions are needed. On line 6 of form 1...
by Epsilon Delta
Tue Feb 12, 2019 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: IRA distributions - Where listed in federal tax forms?
Replies: 6
Views: 380

Re: IRA distributions - Where listed in federal tax forms?

IRAs are not capital assets for these purposes. So they are not on schedule D etc.

The distribution goes on 1040 line 4a and 4b. If it is a Roth IRA distribution or you have basis in a traditional IRA you use form 8606 to figure out the amounts to put on lines 4.
by Epsilon Delta
Tue Feb 12, 2019 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Question
Replies: 11
Views: 542

Re: Backdoor Roth Question

You don't need to file an amended return for this. You will need to complete form 8606 showing the non-deductible 2018 contribution and mail that to the IRS. You will then need to report the conversion on your 2019 taxes next year. I am assuming that you already know that you must have a $0 balance...
by Epsilon Delta
Tue Feb 12, 2019 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: [2018 tax return - How does it compare to previous years?]
Replies: 193
Views: 10777

Re: Tax 2018: Shock and Awe

And my favorite -- the line that shall not be named. The white rectangle to the left of line 6.
by Epsilon Delta
Tue Feb 12, 2019 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Preparing Your Own Taxes
Replies: 13
Views: 1350

Re: Preparing Your Own Taxes

Should I just use the IRS website, print out the forms and mail in the old fashioned way? Additionally, for state taxes, I live/work in NY. I'm not sure that's the best way, but it's a pretty good way. It would probably be worth running any returns you generate (real or dummy) through one or more p...
by Epsilon Delta
Tue Feb 12, 2019 3:09 pm
Forum: Personal Consumer Issues
Topic: separate computers for specific purposes--how many and for what?
Replies: 35
Views: 2503

Re: separate computers for specific purposes--how many and for what?

Note that I might consider a web-accessed device like a tablet given to a younger adolescent in your household, a 'public' device, as you don't know what malware or other bad stuff has been loaded onto it inadvertently. I'd make this warning a bit stronger. I do know what malware was installed by a...