Search found 8053 matches

by Epsilon Delta
Thu Mar 28, 2019 1:28 am
Forum: Personal Consumer Issues
Topic: Tattoos and Bogleheads
Replies: 180
Views: 15252

Re: Tattoos and Bogleheads

Mingus wrote: Wed Mar 27, 2019 10:29 pm Tattoos are the equivalent of graffiti. There are relatively few exceptions to that.
The defining characteristic of graffiti is that it is done without permission. If tattoos are the equivalent of graffiti there is a lot of unreported battery going on.

And if graffiti can be permissive: Get your <political slogan> sign off your lawn.
by Epsilon Delta
Thu Mar 28, 2019 1:09 am
Forum: Personal Finance (Not Investing)
Topic: Two factor authentication loophole?
Replies: 32
Views: 4641

Re: Two factor authentication loophole?

Some sites use cookies to recognize your computer and since I erase cookies upon browser quitting, I have to do the 2FA thing on every login. What a hassle. If it's a hassle then don't erase cookies. Or, better, put the site (or the single cookie) on the cookie whitelist so the helpful cookie is not erased. If a good site can use some type of super-cookie that your browser/security programs/cookie eraser is too unsophisticated to erase then bad sites can (and will) use the same type of super-cookie to do whatever it was you are erasing cookies to prevent. IMHO if a good site wants to store information in my browser it's better if they use transparent mechanisms with reasonable management tools and my explicit permission. The alternative is...
by Epsilon Delta
Wed Mar 27, 2019 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Excess contribution
Replies: 6
Views: 962

Re: Excess contribution

Spirit Rider wrote: Wed Mar 27, 2019 7:40 pm You can do whatever you want, but make no mistake about it. Your CPA is advising tax evasion.
Consulting a CPA in good faith and getting the wrong answer is not tax evasion.
Being a clueless CPA is also not tax evasion.

Both are bad, and can get you into quite a bit of trouble, but not quite as much as tax evasion.
by Epsilon Delta
Wed Mar 27, 2019 7:53 pm
Forum: Personal Consumer Issues
Topic: Toilet Tanks
Replies: 18
Views: 2412

Re: Toilet Tanks

Some definitely aren't. There are some weird and wonderful designs for water conserving toilets that would require matching tanks and bowls.

Some are, where the only difference in the tanks or bowls are cosmetic features, such as rounded corners.

Somebody, somewhere, probably has a list of compatible and incompatible models that is longer than your arm.
by Epsilon Delta
Wed Mar 27, 2019 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: Paying tax on Roth conversions from an inherited IRA
Replies: 5
Views: 752

Re: Paying tax on Roth conversions from an inherited IRA

I think your question is "Should you use the top of the 22% bracket to do Roth conversions, paying the taxes from your taxable account; or should you withdraw from the inherited IRA, paying the taxes from your taxable account*?" This makes the question "is it better to have money in a taxable account or a Roth?" Hopefully that answer is clear. The only wrinkle I can see is if you expect your tax bracket to go up and then down again. In that case the RMDs from the inherited IRA might be taxed higher than later withdrawals from your own IRA. In a limited set of circumstances that might favor emptying the inherited IRA. I think the limited circumstances would require a close match between the inherited IRA life expectancy a...
by Epsilon Delta
Wed Mar 27, 2019 4:53 pm
Forum: Personal Investments
Topic: 2018 RMD snafu / on the hook for 5k
Replies: 13
Views: 1506

Re: 2018 RMD snafu / on the hook for 5k

If the Vanguard Rep did the RMD over the phone, they would ask. Paper check? ACH? Or Settlement account? Those are the only 3 options for the funds with a brokerage account. Maybe that part of the conversation was unclear. But there is no option to put the money in the IRA settlement account and make a distribution 13 (or so) days later. If he specified the wrong destination it should still be there. In the old system the funds from the RMD out of the mutual fund side couldn't go to the Settlement account of the Brokerage side? I guess that is interesting that only a check or bank transfer is the option in the old system. Where did funds transferred in land before you decided what to buy? You can also have a mutual fund withdrawal sent to ...
by Epsilon Delta
Wed Mar 27, 2019 4:24 pm
Forum: Personal Investments
Topic: 2018 RMD snafu / on the hook for 5k
Replies: 13
Views: 1506

Re: 2018 RMD snafu / on the hook for 5k

bloom2708 wrote: Wed Mar 27, 2019 3:26 pm You sell from the Mutual Funds, where does the funds go if you don't check/bank transfer?
If I sell a mutual fund and don't tell Vanguard where to put the money they mail me a check.

Go back to the original post. On Dec 20 he asked for a distribution. He gave no further commands. The distribution was not completed until Jan 2. That is not how mutual fund accounts work. It is not how brokerage accounts work either. If he did not ask for a distribution (i.e. he made a mistake) there should not have been a distribution. If he did ask for a distribution it should have been faster.

I suppose he could have scheduled a distribution for Jan 2, but it should be hard to do that.
by Epsilon Delta
Wed Mar 27, 2019 3:21 pm
Forum: Personal Investments
Topic: 2018 RMD snafu / on the hook for 5k
Replies: 13
Views: 1506

Re: 2018 RMD snafu / on the hook for 5k

bloom2708 wrote: Wed Mar 27, 2019 2:53 pm
Epsilon Delta wrote: Wed Mar 27, 2019 2:48 pm
bloom2708 wrote: Wed Mar 27, 2019 1:05 pm Each and every account at Vanguard has a Settlement account inside the wrapper. We have 3 taxable accounts, 2 Rollover IRAs and 2 Roth IRAs. Each has a Settlement account inside.
Not true. Mutual fund accounts do not have a settlement account.
But he converted to the Brokerage account. So would it be false to say each brokerage account (new), Roth IRA or Rollover IRA has a Settlement account?
That is true, which is one of the reasons the conversion is so insidious. The brokerage accounts are new and improved, with a new and improved option to shoot yourself in the foot. (Although I think in this case most likely Vanguard shot him in the foot.)
by Epsilon Delta
Wed Mar 27, 2019 3:07 pm
Forum: Personal Investments
Topic: 2018 RMD snafu / on the hook for 5k
Replies: 13
Views: 1506

Re: 2018 RMD snafu / on the hook for 5k

Alan S. wrote: Wed Mar 27, 2019 2:12 pm Never pay the penalty up front, just file the 5329 requesting the waiver. No need to involve Vanguard further as it would be a waste of your time given that the IRS will waive the penalty.
It could make a difference if the income is in 2018 or 2019. If it does it's worth talking to Vanguard.

Given the OPs description it seems likely that this was a glitch caused by the conversion to a brokerage account. There is a reasonable chance that Vanguard will fix it if pressed.
by Epsilon Delta
Wed Mar 27, 2019 2:48 pm
Forum: Personal Investments
Topic: 2018 RMD snafu / on the hook for 5k
Replies: 13
Views: 1506

Re: 2018 RMD snafu / on the hook for 5k

bloom2708 wrote: Wed Mar 27, 2019 1:05 pm Each and every account at Vanguard has a Settlement account inside the wrapper. We have 3 taxable accounts, 2 Rollover IRAs and 2 Roth IRAs. Each has a Settlement account inside.
Not true. Mutual fund accounts do not have a settlement account.
by Epsilon Delta
Wed Mar 27, 2019 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Can one make Roth IRA contributions without having earned income?
Replies: 24
Views: 2950

Re: Can one make Roth IRA contributions without having earned income?

Yeah, I should that. But i will talk first to my 401K plan administrator to get a more definitive understanding of my options for taking money out... while they provide the capability to do partial online transfers it is only to taxable accounts, so I have to determine how they allow partial rollovers. An ordinary distribution from a 401(k) that is not a RMD is rollover eligible. So you could take a partial distribution to a taxable account and withing 60 days make a rollover contribution to a (traditional) IRA. That is equivalent to a partial transfer to an IRA. IIRC there is mandatory withholding from the 401(k) withdrawals so you need some available cash in a taxable account to complete the rollover, and you probably want to reduce othe...
by Epsilon Delta
Wed Mar 27, 2019 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Transferring land from parent to child
Replies: 14
Views: 1891

Re: Transferring land from parent to child

runfast4 wrote: Mon Mar 25, 2019 3:33 pm They purchased it in 2014 for $33k and I would assume the area has appreciated since then. It hasn't been appraised since then, so I am not sure of the current value.
Your basis in the gift will be the donors basis. So you should also get documents that establish their basis.

You might never need to establish the basis, but there are circumstances where it could save you $5,000 or more in taxes.
by Epsilon Delta
Tue Mar 26, 2019 7:41 pm
Forum: Personal Consumer Issues
Topic: Tattoos and Bogleheads
Replies: 180
Views: 15252

Re: Tattoos and Bogleheads

buhlaxtus wrote: Tue Mar 26, 2019 7:20 pm Seems some are a bit shaky on the difference between aesthetic opinion and character judgment. From the thread so far I would conclude that getting a visible tattoo is a good way to avoid an intolerable employer :)
The people I know with tattoos say they do it to "express themselves". Judging people on how they express themselves is a character judgement. Judging people on the character judgements they express is also a character judgement.
by Epsilon Delta
Tue Mar 26, 2019 7:33 pm
Forum: Personal Finance (Not Investing)
Topic: TurboTax error - Under reporting threshold changes
Replies: 9
Views: 1234

Re: TurboTax error - Under reporting threshold changes

The 85%/80% exceptions do not change the math for calculating the penalty.

If you meet the, now, 80% of this years taxes threshold there is no penalty. If you miss the 80% threshold the penalty is calculated the same way it always has been. The required payments are the lesser of 90% of this years or 100%/110% of last years taxes.

So if the required payment is 90% of this years taxes and your withholding was 79% the penalty would be calculated based on 11% of this years taxes.
by Epsilon Delta
Tue Mar 26, 2019 5:34 pm
Forum: Investing - Theory, News & General
Topic: Zero federal tax. Will this cause an audit?
Replies: 43
Views: 5612

Re: Zero federal tax. Will this cause an audit?

I mean, I did some extensive tax planning for 2018, with the expectation to keep tax owed under $100. Never expected it to hit the bulls eye (zero owed). :D Zero tax usually means you missed the bullseye, on the low side. The way to tell is run a pro forma return with an extra dollars of income to see that results in non-zero tax. Could you please elaborate. I did not understand how it missed the bulls eye on the low side. Basically line item 15,16 and 18 in the 1040 form we're all the same number resulting in line number 22 being zero. The only way I would be more happy was if I could get the tax refund for the exact fee I paid to TurboTax. :D Different fuzzy string matching methods. I interpreted "tax owed" as line 11 " ta...
by Epsilon Delta
Tue Mar 26, 2019 1:22 pm
Forum: Personal Consumer Issues
Topic: Men's travel shoes. One pair for hiking/biking/walking/dining
Replies: 56
Views: 7031

Re: Men's travel shoes. One pair for hiking/biking/walking/dining

I will be hiking for two days (rocky terrain), bicycle 9 days (on mostly paved roads), walking around for 10 days and obviously want to go to decent places for dinner and such. There's a lot of fixation on the hiking but you will be spending more time biking. What type of pedals will you be using? I find most hiking and running shoes with splayed soles are too wide. They won't fit in toe straps and even without toe straps they move the ball of the foot too far outboard. You also need to pay attention how smooth they are particularly if you are using toe straps, but even if not you do not want dangling laces and such to catch on the crank or chain. Personally I'd probably go with what somebody called dad shoe's and I'd call nurses shoes. Th...
by Epsilon Delta
Tue Mar 26, 2019 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Q: Family Responsibility for Deceased Brother Auto Accident Prior to Death
Replies: 57
Views: 5937

Re: Q: Family Responsibility for Deceased Brother Auto Accident Prior to Death

The OP's problem may be that there is a clunker car that does not belong to him sitting in his driveway or otherwise in his physical custody. What can he do about that? Does he have any duty to protect the car as an asset of (presumably) the estate?

Is there a distinction between giving it to somebody, letting somebody take it, or ordering somebody to get their junker out of his driveway?
by Epsilon Delta
Tue Mar 26, 2019 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Two factor authentication loophole?
Replies: 32
Views: 4641

Re: Two factor authentication loophole?

There are two views of security. There is what could theoretically happen, which is determined by analyzing hardware, code, and protocols. There is what is actually happening, which is determined by real time monitoring and analyzing logs. Anybody who is serious about security needs to consider both. What is actually happening clearly has implications for allocating security resources and deciding whether it is cheaper to prevent them or to treat losses as a cost of business. What could happen also matters because it can turn into what is happening pretty quickly. There are various reasonable ways to deal with this. Monitor so you know when theory turns practical. Have a plan to deal with it when detected. Rollout preemptive features with a...
by Epsilon Delta
Tue Mar 26, 2019 10:54 am
Forum: Personal Investments
Topic: How does the 60-day rollover rule work?
Replies: 8
Views: 993

Re: How does the 60-day rollover rule work?

The new tax law extends the 60 day rule. . The Tax Cuts and Jobs Act significantly extended the window to repay or roll over an outstanding balance on a 401(k) loan when a borrower leaves an employer. Effective for tax years beginning in 2018, the deadline is now the due date of the employee’s tax return for the year in which the distribution occurs, including extensions. This means if you leave your job during 2018, you would have until April 15, 2019, to repay, or Oct. 15, 2019, if you get an extension. https://www.creditkarma.com/tax/i/401k-tax-reform-loan-repay/ You should definitely pay it off if you have the money, call hr to see where to send the check. The OP is using the TSP rather than a 401(k). Sometimes the rules are the same a...
by Epsilon Delta
Mon Mar 25, 2019 11:47 pm
Forum: Personal Investments
Topic: How does the 60-day rollover rule work?
Replies: 8
Views: 993

Re: How does the 60-day rollover rule work?

A taxable distribution occurs if you leave federal service with an outstanding loan balance. This distribution is rollover eligible The rollover can be completed by making a rollover contribution to another tax deferred plan within 60 days. The 60 days starts on the date of the distribution, which should be several months after the end of service. This indirect rollover would not be subject to the one-per-year limit. The mechanics of this would be to roll assets in the TSP account to a 401(k) and then write a personal check as a "rollover contribution" for the loan balance within the deadline. Of course to do the indirect rollover you need to have the cash in a taxable account to cover all or part of the loan balance. You could al...
by Epsilon Delta
Mon Mar 25, 2019 10:18 pm
Forum: Investing - Theory, News & General
Topic: Zero federal tax. Will this cause an audit?
Replies: 43
Views: 5612

Re: Zero federal tax. Will this cause an audit?

RL1013 wrote: Mon Mar 25, 2019 7:29 pm I mean, I did some extensive tax planning for 2018, with the expectation to keep tax owed under $100. Never expected it to hit the bulls eye (zero owed). :D
Zero tax usually means you missed the bullseye, on the low side.
The way to tell is run a pro forma return with an extra dollars of income to see that results in non-zero tax.
by Epsilon Delta
Mon Mar 25, 2019 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance of Trad IRA
Replies: 40
Views: 3204

Re: Inheritance of Trad IRA

not4me wrote: Mon Mar 25, 2019 4:52 pm Most of us are conditioned that we want to pay no tax until we have to as well as hold down income each year so as to keep the tax in check. BUT...your case may be different if you would lose a tax benefit by not acting this year.
If the IRA is rolled to an inherited IRA you must take RMDs every year but you can take more at any time. So if you don't need a Kubota today, but may need a barn in five years you can keep most of the money in the IRA for five years and take the withdrawal as income in a year that takes advantage of real (rather than manufactured) expense.
by Epsilon Delta
Mon Mar 25, 2019 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance of Trad IRA
Replies: 40
Views: 3204

Re: Inheritance of Trad IRA

Morgan Dollar 1921 wrote: Mon Mar 25, 2019 4:12 pm You are welcome, my father farmed, I wanted to make sure you were aware that you need thirty five years of numbers.
You do not need 35 years. You need 40 quarters (in most cases that's 10 years) to qualify. After that extra earnings lead to higher benefits, but you can end up with fairly high SS benefits even if you have less than 35 years of covered earnings.
by Epsilon Delta
Mon Mar 25, 2019 9:13 pm
Forum: Personal Consumer Issues
Topic: Ireland & Scotland Do I Need Cash?
Replies: 24
Views: 2614

Re: Ireland & Scotland Do I Need Cash?

There are two types of banknotes circulating in Scotland. Notes issued by the Bank of England (The UK's central bank) and notes issued by three private Scottish banks. All the notes are denominated in Pounds Sterling and have the same value, but Scottish notes are less generally accepted outside of Scotland. This can be an issue if you want to exchange left over currency once you get home, or keep a few pounds for your next trip to England.

The usual procedure is to hoard BoE notes and spend Scottish ones. You probably want to spend or exchange all Scottish notes before you leave Scotland.
by Epsilon Delta
Mon Mar 25, 2019 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA contributions withdrawal tax reporting
Replies: 3
Views: 626

Re: Roth IRA contributions withdrawal tax reporting

You are making a non-qualified withdrawal. The part of the withdrawal that is allocated to conversions will go on 8606 line 23. The instructions for that will lead you to Part I of form 5329 to calculate the 10% early withdrawal penalty.

The 10% penalty will only apply to the amount of each conversion that was taxed. For a backdoor Roth this is the amount of growth between the non-deductible tIRA contribution and the conversion. This is likely to be very small, but it is probably not zero.
by Epsilon Delta
Mon Mar 25, 2019 2:27 am
Forum: Personal Consumer Issues
Topic: Lock Strategy for New House
Replies: 40
Views: 4310

Re: Lock Strategy for New House

I have found that a small coded lockbox secured somewhere on the property with a spare key invaluable for the day my toddler merrily slammed the door while getting the mail (hee hee!), or when I accidentally walk out without a key. Or when I lock myself in the back yard because I thought the back door was unlocked and I just locked the gate..... Is there a way a front door lock could fail and you would need access via a rear door? Not being able to lock myself out is my first consideration for choosing locks. That means I use a deadbolt, which can only be locked (from the outside) with a key, and a passage handle, which cannot be locked at all. As for locks failing. I did have the passage handle fail. The cam that connected the handle to t...
by Epsilon Delta
Sat Mar 23, 2019 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Pay 1/4 taxes to avoid $75 fee?
Replies: 21
Views: 2184

Re: Pay 1/4 taxes to avoid $75 fee?

Double check that your software is fully updated. According to this thread , the IRS just reduced the amount of withholding/estimated tax required to avoid penalties for 2018 to 80% of the tax liability. (In a normal year, 90% is required. Some months ago the IRS announced it would lower the requirement to 85% for 2018 due to TCJA confusion but just a day or so ago the IRS further lowered 2018 requirement to 80%.) So if your software is still computing penalty based on 85%, wait a few days for updating. So "safe harbor" now is having 80% in, thanks, I did not know that! Fortunately I am way above the "safe harbor", but that additional 5% might save some folks a few bucks, especially the ones who have filed and paid a un...
by Epsilon Delta
Sat Mar 23, 2019 2:38 pm
Forum: Non-US Investing
Topic: [Wiki] Cash equivalents for EU investors - seeking feedback and contributions
Replies: 19
Views: 2103

Re: [Wiki] Cash equivalents for EU investors - seeking feedback and contributions

For an EU investor considering a dollar investing short term bond fund as a "cash equivalent" is a bit of a stretch. It at least needs some discussion. It may also be worth discussing EU countries that do not use the euro.

IMHO at least for retail investors the situation is still too fragmented generalize to the entire EU. There are still a lot of country specific things such as bank accounts and various analogs of US savings bonds (e.g. UK premium bonds, which have from time to time been a darn good cash alternative.)
by Epsilon Delta
Sat Mar 23, 2019 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: State Tax Return - Muni Bond Interest minus Related "Expenses"
Replies: 4
Views: 504

Re: State Tax Return - Muni Bond Interest minus Related "Expenses"

sport wrote: Sat Mar 23, 2019 12:32 pm It does not seem that you could deduct the ER of a mutual fund. That ER was already deducted from the funds earnings before the dividend was paid to you. You cannot deduct it twice.
+1

You should not do anything with the ER, but If the law was written differently logically you would add it to the distributed net income to get gross income, not subtract it from net income to get ???.
by Epsilon Delta
Fri Mar 22, 2019 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Form 8606 help
Replies: 12
Views: 1990

Re: Form 8606 help

dash1s wrote: 3. 11000
...
13. 11003
14. 0 (no remaining basis to be carried over to next year)
What is the reason for 0 on line 14? 11000 - 11003 = (3). As far as I can see there is nothing that prevents a negative carry forward.

If you are going to follow the instructions literally then follow all the instructions literally.

For what it's worth four decimals is at least three decimals so using .9997 is following the instructions and should be acceptable, I'd probably do what Cellia suggests.
by Epsilon Delta
Fri Mar 22, 2019 12:03 am
Forum: Personal Consumer Issues
Topic: OBD GPS tracker for new teen driver
Replies: 20
Views: 2224

OBD GPS tracke for a new teen driver

The video itself is sufficient to determine your speed. The frame rate is known and it is almost always possible to figure out where the camera was when each image was taken. Not having GPS coordinates or speed directly available just makes anybody whose interested work harder. That might be useful if only a small amount of money is at stake, but in a serious situation somebody is going to hire a photo expert to figure this out if needed.

(I'm not sure how automated this would be, when I was working on something similar over 10 years ago we needed interns to mark up the frames. State of the art software might not need the interns anymore.)
by Epsilon Delta
Thu Mar 21, 2019 3:04 am
Forum: Personal Finance (Not Investing)
Topic: Are RMDs that bad if you're not an over-saver?
Replies: 194
Views: 25583

Re: Are RMDs that bad if you're not an over-saver?

celia wrote: Thu Mar 21, 2019 12:19 am
Question: Does anyone know why Table II in IRS Publication 590-B (page 46 in the .pdf file) starts before age 70 since RMDs are not required until the older spouse is 70.5?
IIRC you can use them for calculating SEPP distributions starting before age 59.5.

In the US Code the details of RMDs are not in the IRA sections. They are included by reference from something to do with annuities. The younger ages of the tables probably come into play there as well.
by Epsilon Delta
Thu Mar 21, 2019 2:13 am
Forum: Personal Investments
Topic: Treasury Bill ETFs
Replies: 4
Views: 972

Re: Treasury Bill ETFs

Synthetic ETFs will have counter party risk. Some people will say these are not ETFs but ETNs. It can be hard to tell the difference unless you read the prospectus.
by Epsilon Delta
Thu Mar 21, 2019 1:56 am
Forum: Personal Consumer Issues
Topic: OBD GPS tracker for new teen driver
Replies: 20
Views: 2224

Re: OBD GPS tracker for new teen driver

Based on this thread GPS trackers have no effect on older drivers, and I'd guess they will have even less effect on teenagers.
by Epsilon Delta
Thu Mar 21, 2019 1:23 am
Forum: Personal Finance (Not Investing)
Topic: Worth claiming life insurance death benefit?
Replies: 31
Views: 4419

Re: Worth claiming life insurance death benefit?

bsteiner wrote: Mon Mar 18, 2019 5:32 pm If the beneficiary died first, it goes to the insured’s estate, not the beneficiary’s estate (except in the unlikely event the beneficiary designation provides otherwise).
It's not that rare for a beneficiary to be something like "<Father> and his descendants, per stripes". In which case it's beneficiaries all the way down, and the insurance would not pass through any estate.
by Epsilon Delta
Thu Mar 21, 2019 12:10 am
Forum: Personal Finance (Not Investing)
Topic: Verifying basis in Roth, and 5-yr rule
Replies: 18
Views: 2051

Re: Verifying basis in Roth, and 5-yr rule

AdamP wrote: Wed Mar 20, 2019 2:10 pm And the sum of withdrawals is first taken from the basis on Line 22. Once that is brought down to zero, the remaining withdrawals then carry over to Line 24. This assumes the total of withdrawals does not exceed the contributions + 5-yr rule "contributions".
Assuming you mean 5-year rule "conversions". Form 8606 only figures the taxable amount of withdrawal. All withdrawals attributed to conversions are tax free so form 8606 treats all conversions the same. The 10% penalty splits off at line 23 and continues to Form 5329 and instructions, which figure out is subject to the 10% penalty (the part attributed to conversion that were taxed less than five years ago) That is another fine kettle of fish.
by Epsilon Delta
Wed Mar 20, 2019 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: Verifying basis in Roth, and 5-yr rule
Replies: 18
Views: 2051

Re: Verifying basis in Roth, and 5-yr rule

Alan S. wrote: Wed Mar 20, 2019 2:00 pm Yes, while I did state that conversions go on line 24, I overlooked that the OP proposed including conversions on line 22 and conversions go on 24, not 22. Copied from that same post:
Conversions and Roth rollovers from qualified plans can always be distributed tax free and penalty free if over 5 years for each respective conversion. At that point removing them has the same lack of current tax impact as removal of regular contributions, but you have to show your balance on line 24.
Yes, you did say that. Sorry if I over edit.
by Epsilon Delta
Wed Mar 20, 2019 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Verifying basis in Roth, and 5-yr rule
Replies: 18
Views: 2051

Re: Verifying basis in Roth, and 5-yr rule

Two, hopefully, simple questions: First, I want to verify the number that goes on 8606 line 22. Is this just simply the sum of all contributions/ conversions /rollovers minus withdrawals before the current tax year? Yes , that is what goes on line 22, adjusted for any excess contributions returned or contributions recharacterized. Don't just enter the amount you need to make the distribution non taxable if your basis is higher. We don't know that the IRS wouldn't reduce your basis to the amount you actually show on line 22. With respect to the discrepancy on the 8606 forms actually filed in the past, I think you need to reconsider your answer. The instructions are very clear that conversions from a tIRA to a Roth IRA do not belong on line ...
by Epsilon Delta
Fri Mar 15, 2019 1:58 pm
Forum: Investing - Theory, News & General
Topic: Are Vanguard Mutual Funds dying?
Replies: 152
Views: 20132

Re: Are Vanguard Mutual Funds dying?

vineviz wrote: Fri Mar 15, 2019 1:02 pm
Epsilon Delta wrote: Fri Mar 15, 2019 12:48 pm And is is clear that the customer service costs are hidden. They have been pointed out several times and you still deny they exist. Perfect camouflage.
I really don't understand why this is so hard to grasp: ETFs are not hiding customer service costs.

To the extent an ETF manager even HAS any customer service costs, they are entirely contained within the fully disclosed and completely transparent expense ratio.

It sounds like the windmill at which you are tilting is that brokers are not fully disclosing their fees. That's a different topic altogether.
That is not the point I am making at all.

I have to congratulate the investment industry on once again finding a way to hide costs from many investors.
by Epsilon Delta
Fri Mar 15, 2019 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Tax refund if taxes withheld but no return filed (under threshold)?
Replies: 8
Views: 830

Re: Tax refund if taxes withheld but no return filed (under threshold)?

KlingKlang wrote: Fri Mar 15, 2019 12:11 pm Also some states have a minimum refund amount that must be be claimed before they will send it.
So do the feds, but it's $1 :twisted: -- see 1040 instructions for line 19. Actually you can get less than a dollar if you are sufficiently persistent, but it will cost you a stamp.
by Epsilon Delta
Fri Mar 15, 2019 1:17 pm
Forum: Personal Consumer Issues
Topic: 3 Keys Not Working on Laptop. Fix Recommendations
Replies: 14
Views: 1293

Re: 3 Keys Not Working on Laptop. Fix Recommendations

One of the more common causes of failure is crumbs or other debris in the keyboard. Nearby keys stopping working is a common symptom. If you have not done so already try vacuums, brushes or compressed air while holding the key board at various angles (upside down, vertical etc.) Sometimes you can remove the key caps, look on line for your keyboard to see if they can be removed without damage. Finally the steps needed to replace a keyboard will often remove debris and the old keyboard can go back into service. This is probably more useful if you are servicing a number of laptops. In the IT support workshop if taking the keyboard out repairs the problem then the replacement keyboard can be used on the next one. For you there would either be a...
by Epsilon Delta
Fri Mar 15, 2019 12:48 pm
Forum: Investing - Theory, News & General
Topic: Are Vanguard Mutual Funds dying?
Replies: 152
Views: 20132

Re: Are Vanguard Mutual Funds dying?

[quote=vineviz post_id=4436533 time=1552650393 user_id=134698
Again, there's nothing to be gained by conflating two different things.
[/quote]
Fix your quotes.

Exactly, you are conflating the cost ownership of a mutual fund the cost of running a ETF. Two different things.

And is is clear that the customer service costs are hidden. They have been pointed out several times and you still deny they exist. Perfect camouflage.
by Epsilon Delta
Fri Mar 15, 2019 3:30 am
Forum: Personal Finance (Not Investing)
Topic: Cost basis date to use for inherited stock
Replies: 17
Views: 2550

Re: Cost basis date to use for inherited stock

Note that there are many types of trust, used for many different purposes. Credit shelter by-pass trusts, living trusts, Totten trusts, IRAs, ... . The nature of the trust the inheritance came from matters a great deal.
by Epsilon Delta
Fri Mar 15, 2019 2:37 am
Forum: Investing - Theory, News & General
Topic: Are Vanguard Mutual Funds dying?
Replies: 152
Views: 20132

Re: Are Vanguard Mutual Funds dying?

Ironically ETFs do hide costs. They hide the cost of customer service such as statements and web sites. These are included in the ER of mutual funds but not in that of ETFs. And people say ETFs are cheaper because they hide those costs. The ER of ETFs is what pays for whatever costs the manger has, whether it is the website or customer service ( what customer service does an ETF provider even offer ). In just about every conceivable way, the costs of an ETF are more transparent than an equivalent mutual fund. The bold bit is the point. The ETF does not provide customer service. The broker provides the services so the cost is not in the ETF's ER. The services are still used and the cost still needs to be paid. If you think all broker's fees...
by Epsilon Delta
Fri Mar 15, 2019 1:32 am
Forum: Personal Investments
Topic: How do I characterize an IRA from Roth to Traditional due to my mistake
Replies: 13
Views: 1421

Re: How do I characterize an IRA from Roth to Traditional due to my mistake

You might want to go to Vanguard's recharacterization page and have a look at the "IRA Recharacterization Form" (I can't deep link directly so you'll have to find the link on that page). There is some useful information you can digest at leisure. Even if you do this by phone the form gives some idea of the questions you will want to be prepared to answer


https://investor.vanguard.com/ira/roth- ... terization
by Epsilon Delta
Thu Mar 14, 2019 5:23 pm
Forum: Investing - Theory, News & General
Topic: Are Vanguard Mutual Funds dying?
Replies: 152
Views: 20132

Re: Are Vanguard Mutual Funds dying?

Ironically ETFs do hide costs. They hide the cost of customer service such as statements and web sites. These are included in the ER of mutual funds but not in that of ETFs. And people say ETFs are cheaper because they hide those costs.
by Epsilon Delta
Thu Mar 14, 2019 4:47 pm
Forum: Non-US Investing
Topic: Help to build a three fund portfolio with non-US ETF
Replies: 21
Views: 6471

Re: Help to build a three fund portfolio with non-US ETF

Neus wrote: Wed Mar 13, 2019 9:14 am
Sorry but i can't help to ask, is there a good reason to not choose accumulating ETF?

I think accumulated ETF is better in any situation than distributing ETF?
In countries that tax dividends as they accrue*, accumulating funds have no advantage and can make tax reporting more difficult.

* Which is the rule rather than the exception.
by Epsilon Delta
Thu Mar 14, 2019 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Basis - Need to track?
Replies: 40
Views: 5614

Re: Roth IRA Basis - Need to track?

There are two requirements for a qualified distribution (which is tax and penalty free). You are 59.5 years old (or disabled, or dead) Your Roth is more than 5 years old. [more or less]. Silly question but do those rules also apply to inherited Roths? A distribution from an inherited Roth has to meet the same rules to be a "qualified distribution". However note the "or dead" in the first part. This applies to the original owner, so an inherited Roth will meet this prong of the test. "Death" is also an exception to a the 10% early withdrawal penalty. So this penalty never applies to an inherited Roth. The second prong (Roth over five years old) does need to be met for a qualified distribution, the five years da...
by Epsilon Delta
Wed Mar 13, 2019 11:19 pm
Forum: Personal Consumer Issues
Topic: Secondary sump pump needed?
Replies: 39
Views: 3746

Re: Secondary sump pump needed?

Another issue with pumps cycling too quickly is pumps that are too big.* Ideally the pump drains not only the pit but also the water in the gravel surrounding the pit. If the pump is too big it drains the pit and cuts off before much of the surrounding water can enter the pit. If you watch the pit you see the pump suck it dry, switch off and then the water level rapidly rebounds to fill say 3/4 of the usable volume. The water then slowly creeps up til the pump switches on and restarts the cycle. You can also see the same thing if the non-return valve on the discharge line is broken so check that too. You could try using a smaller pump with a larger one setup with the switch an inch or so higher, as backup for very high flows or for pump fai...