Search found 226 matches

by bpg1234
Sun Feb 21, 2021 2:51 pm
Forum: Personal Investments
Topic: Roth Conversions, process and taxes
Replies: 13
Views: 1312

Re: Roth Conversions, process and taxes

If you want to transfer in dollars, convert to settlement account first in the IRA, then transfer, since shares of the settlement fund are dollars. Curious on this as I have a brokerage account and always a PITA with trying to transfer in dollars rather than shares. I usually have to guestimate sha...
by bpg1234
Sun Feb 21, 2021 2:00 pm
Forum: Personal Investments
Topic: Roth Conversions, process and taxes
Replies: 13
Views: 1312

Re: Roth Conversions, process and taxes

If you want to transfer in dollars, convert to settlement account first in the IRA, then transfer, since shares of the settlement fund are dollars. Curious on this as I have a brokerage account and always a PITA with trying to transfer in dollars rather than shares. I usually have to guestimate sha...
by bpg1234
Fri Feb 05, 2021 5:32 pm
Forum: Personal Investments
Topic: Non-Qualified Variable Annuity Tax Implications
Replies: 11
Views: 575

Re: Non-Qualified Variable Annuity Tax Implications

Thanks stinky and ralph. Good input that we'll consider.
by bpg1234
Fri Feb 05, 2021 2:01 pm
Forum: Personal Investments
Topic: Non-Qualified Variable Annuity Tax Implications
Replies: 11
Views: 575

Re: Non-Qualified Variable Annuity Tax Implications

Thanks all for your responses. Great food for thought regarding potential moves we could consider to reduce some of the potential tax bite. We will learn more once we can actually talk to the companies and understand more of what exists with the current contracts and what if any changes we can make.
by bpg1234
Fri Feb 05, 2021 11:13 am
Forum: Personal Investments
Topic: Non-Qualified Variable Annuity Tax Implications
Replies: 11
Views: 575

Re: Non-Qualified Variable Annuity Tax Implications

Sorry but these questions will actually need you folks to call the company if you can’t find it in the contract. The options just aren’t the same with every contract. Thanks Rexx. We have a call in and waiting for the approved POA but thought there may be some general information on how these varia...
by bpg1234
Fri Feb 05, 2021 10:31 am
Forum: Personal Investments
Topic: Non-Qualified Variable Annuity Tax Implications
Replies: 11
Views: 575

Re: Non-Qualified Variable Annuity Tax Implications

bump for the morning crowd. Any takers?
Thanks
by bpg1234
Thu Feb 04, 2021 9:19 pm
Forum: Personal Investments
Topic: Non-Qualified Variable Annuity Tax Implications
Replies: 11
Views: 575

Non-Qualified Variable Annuity Tax Implications

Thanks in advance for any potential guidance. My FIL is in a nursing home and my spouse is his POA. We have come across a few non-qualified variable annuities he contracted for back in the 90's that have increased in value over the years. We are not that well-versed in all the workings of variable a...
by bpg1234
Wed Jan 13, 2021 5:16 pm
Forum: Personal Investments
Topic: Taxes on 2020 Roth Conversion - Pay When?
Replies: 25
Views: 1335

Re: Taxes on 2020 Roth Conversion - Pay When?

You only need to make an estimated tax payment on 1/15 if and to the degree you do not meet one of the safe harbors to avoid an underpayment penalty. Owe < $1000 >= 90% of 2020 tax liability >= 100% (110% AGI > $150K) of 2019 tax liability. If you do not meet one of the safe harbors and you do not ...
by bpg1234
Wed Jan 13, 2021 4:49 pm
Forum: Personal Investments
Topic: Taxes on 2020 Roth Conversion - Pay When?
Replies: 25
Views: 1335

Re: Taxes on 2020 Roth Conversion - Pay When?

You only need to make an estimated tax payment on 1/15 if and to the degree you do not meet one of the safe harbors to avoid an underpayment penalty. Owe < $1000 >= 90% of 2020 tax liability >= 100% (110% AGI > $150K) of 2019 tax liability. If you do not meet one of the safe harbors and you do not ...
by bpg1234
Wed Jan 13, 2021 4:37 pm
Forum: Personal Investments
Topic: Taxes on 2020 Roth Conversion - Pay When?
Replies: 25
Views: 1335

Re: Taxes on 2020 Roth Conversion - Pay When?

You only need to make an estimated tax payment on 1/15 if and to the degree you do not meet one of the safe harbors to avoid an underpayment penalty. Owe < $1000 >= 90% of 2020 tax liability >= 100% (110% AGI > $150K) of 2019 tax liability. If you do not meet one of the safe harbors and you do not ...
by bpg1234
Wed Jan 06, 2021 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Got my stimulus check, how about you?
Replies: 212
Views: 15788

Re: Got my stimulus check, how about you?

If you haven't received a check (online deposit) yet, this may explain why: If you got a ‘Status Not Available’ when running the Get My Payment IRS tool, you may have to wait until you file 2020 tax returns. See: ‘Status Not Available:’ IRS says these taxpayers won’t receive second stimulus check a...
by bpg1234
Tue Jan 05, 2021 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Got my stimulus check, how about you?
Replies: 212
Views: 15788

Re: Got my stimulus check, how about you?

Odd that we received our first stimulus electronically via the associated bank information contained on our 2018 federal tax form. Subsequent to receiving our first payment, we filed our 2019 federal taxes and the IRS successfully withdrew our taxes owed electronically but from a different bank acc...
by bpg1234
Tue Jan 05, 2021 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Got my stimulus check, how about you?
Replies: 212
Views: 15788

Re: Got my stimulus check, how about you?

Stimulus money appeared in my account yesterday. For whatever reason I expected the payment order to go about as for the first stimulus. As I had difficulty uploading my accout information into the IRS system and was in the last wave to receive first stimulus, I was surprised to be in the first wav...
by bpg1234
Tue Jan 05, 2021 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Got my stimulus check, how about you?
Replies: 212
Views: 15788

Re: Got my stimulus check, how about you?

Stimulus money appeared in my account yesterday. For whatever reason I expected the payment order to go about as for the first stimulus. As I had difficulty uploading my accout information into the IRS system and was in the last wave to receive first stimulus, I was surprised to be in the first wav...
by bpg1234
Mon Jan 04, 2021 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: Got my stimulus check, how about you?
Replies: 212
Views: 15788

Re: Got my stimulus check, how about you?

Odd that we received our first stimulus electronically via the associated bank information contained on our 2018 federal tax form. Subsequent to receiving our first payment, we filed our 2019 federal taxes and the IRS successfully withdrew our taxes owed electronically but from a different bank acco...
by bpg1234
Fri Jan 01, 2021 11:11 pm
Forum: Personal Investments
Topic: iBond Transfer from Sub-Account to Main Account
Replies: 31
Views: 1205

Re: iBond Transfer from Sub-Account to Main Account

Thanks all. I did some additional research and since it's the same SS# no tax implications. I went forward and made the change and pretty seamless.
by bpg1234
Fri Jan 01, 2021 9:07 pm
Forum: Personal Investments
Topic: iBond Transfer from Sub-Account to Main Account
Replies: 31
Views: 1205

Re: iBond Transfer from Sub-Account to Main Account

Bump - Any iBond experts out there?
by bpg1234
Fri Jan 01, 2021 12:42 pm
Forum: Personal Investments
Topic: iBond Transfer from Sub-Account to Main Account
Replies: 31
Views: 1205

iBond Transfer from Sub-Account to Main Account

First off Happy New Year to all and glad to see 2020 in the rearview mirror. Question on an iBonds transfer from sub-account to main(primary) account with same SS# regarding any potential federal tax implications. When I converted a paper iBond to electronic several years ago it placed it in a separ...
by bpg1234
Thu Dec 31, 2020 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion make me break out into a cold sweat
Replies: 48
Views: 4287

Re: Roth Conversion make me break out into a cold sweat

I will be doing Roth conversions. As of right now with just over $1 million in tax deferred at age 62, expecting $100K from my wife's pension benefits, and over 1.1 million in SS benefits. I will be able to get almost all in Roth by the time my wife passes (assuming age 100), paying a total of $135...
by bpg1234
Wed Dec 23, 2020 11:13 am
Forum: Investing - Theory, News & General
Topic: 2021 I Bonds: what's your plan?
Replies: 79
Views: 9356

Re: 2021 I Bonds: what's your plan?

As for what I'm waiting for, I bought iBonds several years ago for 4 or so years but haven't bought any since as I felt we had a decent allotment and were getting some really great 3+% rates on CDs. In light though of recently having a 5-year CD mature and the current interest rate environment with ...
by bpg1234
Wed Dec 23, 2020 9:43 am
Forum: Investing - Theory, News & General
Topic: 2021 I Bonds: what's your plan?
Replies: 79
Views: 9356

Re: 2021 I Bonds: what's your plan?

I know this is a 2021 iBonds thread but curious if you didn't buy iBonds in 2020 yet, would you consider buying still at end of December for 2020 (could do $20K for spouse and me or lesser amount), and then also consider buying again for 2021 at end of January 2021 or possibly wait until May 2021 (c...
by bpg1234
Thu Dec 10, 2020 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank savings interest rate dropping from 0.6% to 0.5%
Replies: 49
Views: 5043

Re: Ally Bank savings interest rate dropping from 0.6% to 0.5%

UpperNwGuy wrote: Thu Dec 10, 2020 3:27 pm PenFed's high yield savings account is still at 0.6%, but I'm thinking it will drop in a few days to keep up with the others.
Perhaps you really meant to say, "but I'm thinking it will drop in a few days to keep "down" with the others". LOL
by bpg1234
Tue Nov 10, 2020 6:38 pm
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Re: Ok Taking Pension Now Options

The way I see it is that you don't need the money, and are positioned well (and your roth balance is pretty low) to do the following: 1)Take the lump sum (~215 months of single life) and roll it over to tIRA (I would create a separate account for it). 2)Use your taxable account to fund your living ...
by bpg1234
Tue Nov 10, 2020 6:37 pm
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Re: Ok Taking Pension Now Options

I would be helpful if you edited your OP to show: A) Expected expenses B) Expected SS streams and when they arrive It's hard to know the best advice about taking a pension vs lump sum without knowing all the pieces. Admiral, I updated the OP to include this info, as well as our existing financial a...
by bpg1234
Tue Nov 10, 2020 10:52 am
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Re: Ok Taking Pension Now Options

I would be helpful if you edited your OP to show: A) Expected expenses B) Expected SS streams and when they arrive It's hard to know the best advice about taking a pension vs lump sum without knowing all the pieces. Admiral, I updated the OP to include this info, as well as our existing financial a...
by bpg1234
Mon Nov 09, 2020 10:54 pm
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Re: Ok Taking Pension Now Options

I took the 100% J&S. it is costly -- you can almost surely self-term-insure for less. And I almost went that route myself. But then I thought about the possibility of either not being able to pay for the term insurance, say, in my eighties or else not being able to find it - - and then predeced...
by bpg1234
Sun Nov 08, 2020 9:17 pm
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Re: Ok Taking Pension Now Options

Thanks everyone for all of your valuable perspectives. There are a number of pros and cons for either approach so I will sit and discuss everything you have all provided further with my DW. I personally do like the idea of a steady income that covers the vast majority of our expenses coming in every...
by bpg1234
Sun Nov 08, 2020 2:26 pm
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Re: Ok Taking Pension Now Options

#Cruncher, curious why do you say none of the pension options look very good? What would be considered very good? Something over 3% I guess. The best return was 2.8% for the 100% survivor. This is better than a commercial annuity. ( Immediate Annuities says you can get $4,067 per month which is muc...
by bpg1234
Sun Nov 08, 2020 10:58 am
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Re: Ok Taking Pension Now Options

Assuming you are both in good health I'd suggest 75% or 100% spousal. I favor maximizing retirement income in spite of a large portfolio. That is in line with you planning to wait to collect SS at 70. In the meantime Roth conversions should help keep future tax brackets in check. I maximized my ret...
by bpg1234
Sun Nov 08, 2020 10:55 am
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Re: Ok Taking Pension Now Options

I'm going to give you my take.... it will not be based in IRR, comparisons or raw numbers. First off congratulations - you have a net worth creeping in on $5M there is no wrong answer here. This is purely a "what would you like to do question". I suggest you have a long talk with your sig...
by bpg1234
Sun Nov 08, 2020 9:39 am
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Re: Ok Taking Pension Now Options

What does “J&S” mean? Does the pension have cost of living increases? Whenever I see these pension choices discussed here, the best option is usually to take monthly benefits instead of a lump sum if the pension system is financially strong. But if you don’t really need the payments and want to...
by bpg1234
Sat Nov 07, 2020 5:16 pm
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Re: Ok Taking Pension Now Options

... we have several pension options of consideration: Lump Sum $1,153K Life Only $5,401/month 50% J&S $5,027/month 75% J&S $4,858/month 100% J&S $4,701/month ... I recently turned 60 and DW 57. None of the pension options looks very good. If it can be rolled into an IRA, I'd take the lu...
by bpg1234
Sat Nov 07, 2020 2:29 pm
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Re: Ok Taking Pension Now Options

Thanks Watty. Probably should have provided this but yes we do have other reasonably size assets of roughly $2.2M in taxable, $1.25M in tIRA that we're looking to convert a decent chunk over the next 4 years and $200K in Roth at this point with no mortgage or debt and plan to hold off on SS until 7...
by bpg1234
Sat Nov 07, 2020 11:27 am
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Re: Ok Taking Pension Now Options

There is a lot about your situation that is unknown but from your tax bracket I would suspect that you would have a lot of other assets and you will get good size social security checks when you start Social Security. With Social Security, your other pension, interest and dividends in your taxable ...
by bpg1234
Sat Nov 07, 2020 11:08 am
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Re: Ok Taking Pension Now Options

Yes, I edited it to specifically reflect that is my question. My DW will have more than enough from our other savings and investments so this decision mostly comes down to perspectives on what folks see as the best option. Thanks again.
by bpg1234
Sat Nov 07, 2020 10:55 am
Forum: Personal Investments
Topic: Ok Taking Pension Now Options
Replies: 35
Views: 2297

Ok Taking Pension Now Options

Thanking you all in advance once again as this is part 2 of earlier post from a few weeks back of "Take Pension Now or Defer and Continue Roth Conversions for 5 years". Based on prior perspectives and iOrp/Retiree Calculator results we will be taking our pension now and doing Roth conversi...
by bpg1234
Sat Oct 24, 2020 5:01 pm
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

Thanks FiveK. I'm getting to the point where I think it might make the most sense to convert into the 24% tax bracket but right under the $250K AGI NIIT amount through 2023 and then subsequently stay under the IRMAA $174K amount (or whatever that is in 2024) so will avoid NIIT and IRMAA surcharges a...
by bpg1234
Sat Oct 24, 2020 4:09 pm
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

I was using the Retiree Portfolio Model and looking at tIRA to Roth conversions to the top of the 24% tax bracket MFJ. Does the calculator take into account the 3.8% NIIT for any dividends/interest/etc. once you go over the $250K AGI level as couldn't find it referenced anywhere?
by bpg1234
Fri Oct 23, 2020 10:54 pm
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

Thanks once again FiveK. I also tried the Retiree Portfolio Model and there is a lot of info but not quite sure how to digest it. There are several moving parts to consider in all of this analysis. Truly appreciate all of your assistance.
by bpg1234
Fri Oct 23, 2020 10:36 pm
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

As an FYI, another wrinkle I came across after doing Roth Conversions into the 24% tax bracket using a dummy 2019 turbotax return is the Net Investment Income Tax (NIIT) surcharge of 3.8% for any income over $250,000. The dummy return was beneficial in surfacing its impact in the planning stages of ...
by bpg1234
Fri Oct 23, 2020 6:19 pm
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

(unless it would need to be 2022 income since surcharge goes off of income 2 years earlier but heard prorating comes into play?) The "prorating" is likely (number of months on Medicare)/12, because you pay premiums monthly. Big difference for the year one turns 65 with a January b'day vs....
by bpg1234
Fri Oct 23, 2020 2:50 pm
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

(unless it would need to be 2022 income since surcharge goes off of income 2 years earlier but heard prorating comes into play?) The "prorating" is likely (number of months on Medicare)/12, because you pay premiums monthly. Big difference for the year one turns 65 with a January b'day vs....
by bpg1234
Thu Oct 22, 2020 5:20 pm
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

I'm not sure if IRMAA is accounted for in the model or just not that important so just get conversions over before turning 66 and be done with? Thanks once again in advance for any perspectives on this. If you click on the IRMAA Report link in I-ORP's results, there is (among other text) "If y...
by bpg1234
Thu Oct 22, 2020 12:47 pm
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

Interesting iORP data point. I put our financial info in the extended version to compare the different scenarios - pension/age/Roth conversion tax bracket and left all other info consistent within the model. So basically I had taking pension at age 60 with associated annual pension amount and Roth c...
by bpg1234
Wed Oct 21, 2020 12:34 pm
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

Thanks lakpr for your perspective. Also, by taking the pension now we reduce future annual income by roughly $12K that we would of had otherwise starting at 65 if we deferred pension which could be used for additional Roth conversions up to the IRMAA cliff from 66 through 70 when SS kicks in. Sounds...
by bpg1234
Wed Oct 21, 2020 9:21 am
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

My guess is take the pension now AND do Roth conversions to top of 24% tax bracket until age 63 or 64 depending on when you would get hit with the IRMAA premiums. (first year will likely be less than 12 months and also consider wife's age) The more we consider all of the outstanding advice we have ...
by bpg1234
Tue Oct 20, 2020 9:56 pm
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

Deferring taking the pension is probably the best advice for maximizing your utilitarian benefit through minimizing total income tax over your remaining lifetime by doing all those Roth Conversions. Just don't unnecessarily starve or reduce your retirement standard of living to do Roth Conversions ...
by bpg1234
Tue Oct 20, 2020 5:40 pm
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

... I hit the big 60 and I can decide to take my ... pension now at 80% of the FRA [*] I would get at 65, ... For every year I defer I gain 4% more payout. The following table may help you decide how many years to delay, if any, beyond age 60. Start at 60 61 62 63 64 65 Amount 80 84 88 92 96 100 Di...
by bpg1234
Mon Oct 19, 2020 12:48 pm
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

Thanks again for your collective responses. I figure I could decide to take the pension in January and still convert for 3 or so years up to the 24% tax bracket. That's our current thinking which could change if the tax law were to change sooner than 2025.
by bpg1234
Mon Oct 19, 2020 9:22 am
Forum: Personal Investments
Topic: Take Pension Now or Defer and Continue Roth Conversions for 5 years
Replies: 31
Views: 2541

Re: Take Pension Now or Defer and Continue Roth Conversions for 5 years

Thanks everyone for your thoughts so far. As a reference point, my significant other is 57 and we are both already retired. If I continued to defer the pension we would continue to do Roth conversions up to the top of the 22% tax bracket (assuming it remains at the lower amount and doesn't get chang...