Search found 6616 matches

by JW-Retired
Sat Feb 24, 2018 10:38 am
Forum: Investing - Help with Personal Investments
Topic: Reallocating --> Need ideas to minimize tax
Replies: 7
Views: 238

Re: Reallocating --> Need ideas to minimize tax

Perhaps, but if a person does sell another $10k in short term cap gains and that extra $10k pushes into the next bracket, what you said the first time is absolutely correct. I think. Sometimes, it gets confusing. Yep. I just Googled and find the "Alternate Minimum Tax" (Form 6251) and the "Net Inve...
by JW-Retired
Sat Feb 24, 2018 9:51 am
Forum: Investing - Help with Personal Investments
Topic: Reallocating --> Need ideas to minimize tax
Replies: 7
Views: 238

Re: Reallocating --> Need ideas to minimize tax

Definitely watch being bumped into a higher bracket.....but.....your bracket rate only applies to your ordinary income and short term capital gains. Yeah, should have said cap gains tax bracket. There still is 0, 15, & 20% for that. Doubtful OP is in anything but the 15% but he/she didn't say. JW
by JW-Retired
Sat Feb 24, 2018 9:13 am
Forum: Investing - Help with Personal Investments
Topic: Reallocating --> Need ideas to minimize tax
Replies: 7
Views: 238

Re: Reallocating --> Need ideas to minimize tax

Don't know, but I would doubt your idea 1 would work with kid's accounts. There is the kiddie tax, and in the 529 it seems unlikely there would be such a fabulous loophole. But please let us know if you find there is! I would get out of the high expense mutual funds first. Just be careful not to pus...
by JW-Retired
Fri Feb 23, 2018 8:36 am
Forum: Investing - Help with Personal Investments
Topic: Novice Investor looking for advice
Replies: 11
Views: 410

Re: Novice Investor looking for advice

Greetings all, This is my first post. My name is Wally. I have been investing since 2007, but am just now taking a more active role in understanding what my investments are. I have been going through Edward Jones, but after research and reading and getting better educated, I am thinking of switchin...
by JW-Retired
Thu Feb 22, 2018 9:41 am
Forum: Investing - Help with Personal Investments
Topic: Retirement investment advice for parent
Replies: 10
Views: 1003

Re: Retirement investment advice for parent

I think taking the match is always worth it, and in this situation I'd advise her to max the 401k with catch-up, the Roth IRA with catch-up, and put every extra dollar after that in a taxable account. The Vanguard balanced fund is an excellent choice that makes things easy to manage. Yes, agree max...
by JW-Retired
Thu Feb 22, 2018 8:54 am
Forum: Investing - Theory, News & General
Topic: Simple question [difference between IRA and 401k?]
Replies: 11
Views: 741

Re: Simple question [difference between IRA and 401k?]

A couple more distinctions. In some states 401ks are protected from lawsuits. I'm not sure if there are any federal laws in this regard. It's more advantage than that for 401ks vs IRAs. 401ks are protected by bullet proof federal ERISA law..... Google it. e.g., For example, 401(k) plan assets canno...
by JW-Retired
Wed Feb 21, 2018 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Safe to file taxes now?
Replies: 57
Views: 4561

Re: Safe to file taxes now?

Zonian59 wrote:
Wed Feb 21, 2018 6:20 pm
Anybody use H&R Block Deluxe tax software?
Software says not all Federal forms are final and software update coming Feb 23.
Yes, we have used H&R Block Deluxe for years. I have all my 1099s now but usually wait a couple of weeks into March. Never had a problem with that.
JW
by JW-Retired
Tue Feb 20, 2018 10:13 am
Forum: Personal Consumer Issues
Topic: Importing 1099 data into H&R Block if you use a password manager?
Replies: 9
Views: 602

Re: Importing 1099 data into H&R Block if you use a password manager?

F150HD wrote:
Mon Feb 19, 2018 7:36 pm
Am wondering if there are security risks in doing this? and if one should change all account passwords after doing the import.
I always do 1099 data manually. It really takes very little time and no worries about spreading around your account passwords.
JW
by JW-Retired
Tue Feb 20, 2018 9:26 am
Forum: Investing - Theory, News & General
Topic: Any reason for equities in tIRA, if there is space for Total Equity Allocation in Taxable and Roth Accounts
Replies: 7
Views: 561

Re: Any reason for equities in tIRA, if there is space for Total Equity Allocation in Taxable and Roth Accounts

If my total portfolio allocation to equities can be fulfilled by my allocations in my taxable and Roth accounts, is there any reason to carve out a minimum percentage to maintain some equities in my tIRA? The rationale for zero equities in the tIRA would be to minimize growth of the tIRA while doin...
by JW-Retired
Mon Feb 19, 2018 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Misc Income [how to report with no 1099]
Replies: 80
Views: 3000

Re: Misc Income [how to report with no 1099]

How about on your 1040 Line 21?

I've used that for small "other income" items, but nothing approaching your amount.
JW
by JW-Retired
Mon Feb 19, 2018 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Benefit to Roth IRA for me?
Replies: 3
Views: 209

Re: Benefit to Roth IRA for me?

I also don't get any tax deduction on the Roth contributions since I always take the standard deduction. This sentence makes no sense? Nobody gets a tax deduction for a Roth IRA contribution, that's only for a traditional IRA. Anyway, Roth account earnings are never taxed so that makes it obviously...
by JW-Retired
Mon Feb 19, 2018 9:57 am
Forum: Investing - Help with Personal Investments
Topic: High ER funds with large cap gains - what to do ?
Replies: 10
Views: 850

Re: High ER funds with large cap gains - what to do ?

curious george wrote:
Mon Feb 19, 2018 8:47 am
Can anyone share their own experience on how to handle this?
Gifted large cap gain stocks to the kids who could sell at zero tax, or at least much lower than my Fed + California tax cost.

It makes what to do their problem. :D
JW
by JW-Retired
Mon Feb 19, 2018 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Turbotax help, Backdoor Roth IRA but originally made mistake
Replies: 6
Views: 430

Re: Turbotax help, Backdoor Roth IRA but originally made mistake

If you have the cash now, IMO the cleanest way to do this is to contribute another $5500 to the tIRA account for 2018 soon. Then convert the full $11k plus any earnings account balance (i.e., choose the convert all option) so you don't have a dollar or two of earnings left in the account. That's pre...
by JW-Retired
Sun Feb 18, 2018 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets
Replies: 25
Views: 1844

Re: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets

Yes, I and others were assuming (I see correctly) that the OP was misspeaking when they said "taxable 401k/IRA's", and they were really both tax deferred accounts and OP meant any withdrawals were taxable.
JW
ps: and none of the 1.9 million is in a real taxable account! :)
by JW-Retired
Sun Feb 18, 2018 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets
Replies: 25
Views: 1844

Re: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets

Thanks so much for your response! Figuring on a 4% withdrawal, then once the SS kicks in withdraw at a lower rate. When we retire we only have our tax deferred money and will have Social Security. We figured one would start withdrawing at 62 and the other at age 70. At 62 we believe it will generat...
by JW-Retired
Sun Feb 18, 2018 11:27 am
Forum: Investing - Help with Personal Investments
Topic: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets
Replies: 25
Views: 1844

Re: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets

We are hoping to fully retire at at 60, in about 2.5 years.We have about 1.9 million in taxable 401k/IRA's. I think we will be in the same income bracket but I think that the tax brackets will change in future and not be as good so I wanted to take advantage of them now. We have NO tax deferred mon...
by JW-Retired
Sun Feb 18, 2018 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets
Replies: 25
Views: 1844

Re: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets

My husband and I, ages 56 and 57, have always contributed and maxed out to a before-tax 401k. Due to lay-offs we are now making less, our income will is about $165,000 before any deductions. I was wondering does it now make sense to contribute to a Roth 401K because we are in a the 22% tax bracket?...
by JW-Retired
Sun Feb 18, 2018 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Why not tax-exempt bonds?
Replies: 23
Views: 2340

Re: Why not tax-exempt bonds?

Depends, what's your tax bracket?
JW
by JW-Retired
Fri Feb 16, 2018 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: Recharacterization, excess contribution, and Backdoor Roth confusion
Replies: 6
Views: 339

Re: Recharacterization, excess contribution, and Backdoor Roth confusion

There is no dollar limit to how much can be converted from a tIRA to a Roth. You are all good.

You should get a 1099 for the $248 in earnings you made in the tIRA.
JW
by JW-Retired
Thu Feb 15, 2018 9:18 pm
Forum: Investing - Help with Personal Investments
Topic: Just wondering if you do this...
Replies: 10
Views: 1697

Re: Just wondering if you do this...

Just wondering if anyone invests in anything other than for retirement - things like dividend stocks, real estate or REITs (not homeownership), crowdfunding, peer-to-peer lending, tax liens, etc. Mostly no! However, we bought a smallish amount of dividend stocks and REITS mutual funds in our taxabl...
by JW-Retired
Thu Feb 15, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Changing from SS Spousal to Survivor
Replies: 26
Views: 1615

Re: Changing from SS Spousal to Survivor

The question is whether - without any further communication with SS - the spouse's spousal benefits would have changed to survivor benefits, given that the spousal benefits were from someone who has passed. Can you get a look at this widow's Medicare card? If she is getting benefits as a spouse the...
by JW-Retired
Thu Feb 15, 2018 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Changing from SS Spousal to Survivor
Replies: 26
Views: 1615

Re: Changing from SS Spousal to Survivor

Maybe her current benefit is so low because she is so old, and these are "ancient level" benefits. Would COLA's keep benefits for the very elderly at all comparable with current benefits? Obviously, wages many decades ago were so much lower. Oh, I hate the thought of even bringing this up. No, ever...
by JW-Retired
Thu Feb 15, 2018 8:09 am
Forum: Investing - Theory, News & General
Topic: Increasing SS PIA by working again
Replies: 27
Views: 1542

Re: Increasing SS PIA by working again

Thanks for all the calculation confirmations. In summary, if one were to work an additional five years at $50,000 annually and then live 20 years in retirement after full retirement age, they would add $21,420 in total to their SS retirement benefits received. Everyone has their own way but to me, ...
by JW-Retired
Wed Feb 14, 2018 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Incorrect cost basis on Fidelity tax statements
Replies: 12
Views: 954

Re: Incorrect cost basis on Fidelity tax statements

As far as I know, they are all regular company stock with a regular ticker. I think the issue is that the company plan transfered from e-trade to fidelity. When it went to fidelity, they didn't bother getting cost basis information from e-trade. I went back to old e-trade documents for the long ter...
by JW-Retired
Mon Feb 12, 2018 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor roth - I might have messed up
Replies: 6
Views: 535

Re: Backdoor roth - I might have messed up

It should therefore have no impact on the amount of taxes I owe in those years, but I'm worried that since I didn't file the 8606 form that IRS may come back and start charging me penalties claiming it was an ineligible Roth contribution. (My income is higher than the limit for Roth.) If it helps, ...
by JW-Retired
Sun Feb 11, 2018 10:11 am
Forum: Investing - Help with Personal Investments
Topic: Anybody else Age - 10 in bonds, rest in stocks
Replies: 116
Views: 10619

Re: Anybody else Age - 10 in bonds, rest in stocks

No, for a long time now we just stick with 60/40.
JW
by JW-Retired
Tue Feb 06, 2018 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Help with Roth IRA conversion taxes?
Replies: 3
Views: 342

Re: Help with Roth IRA conversion taxes?

The Roth conversion taxable amount is computed in the 2nd page of the IRS 8606 tax form. Vanguard will send you a 1099 without asking, but they have no clue about your tax situation. So if you have a non-deductible basis in the tIRA they won't know it. You need to have documented that on your previo...
by JW-Retired
Mon Feb 05, 2018 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: IRS form 8606
Replies: 8
Views: 953

Re: IRS form 8606

My HR Block tax software has a 2017 8606 in there now (mine has the Feb. 3 update).
JW
by JW-Retired
Mon Feb 05, 2018 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth question after a 'screwup'
Replies: 4
Views: 367

Re: Backdoor Roth question after a 'screwup'

Of course you will practice doing the 2017 & 2018 8606 forms documenting the contributions and the conversion? Ask us if something doesn't seem to work out right.
Plus, you definitely don't have any other tIRA, SEP IRA, Simple IRA, or rollover IRA accounts besides the one you contributed to?
JW
by JW-Retired
Sun Feb 04, 2018 11:21 am
Forum: Investing - Help with Personal Investments
Topic: Taxable account dividends and capital gains
Replies: 14
Views: 1256

Re: Taxable account dividends and capital gains

In taxable accounts I put them them in the cash account. Redeploying that forces me to push my AA in the right direction.

Usually I can't tolerate selling anything to re-balance.
JW
by JW-Retired
Sun Feb 04, 2018 12:53 am
Forum: Investing - Help with Personal Investments
Topic: SEP IRA or Roth? Need help investing in retirement for my dad
Replies: 8
Views: 449

Re: SEP IRA or Roth? Need help investing in retirement for my dad

My opinion: $900k/yr income now and only $250k in a tax deferred account. Looks like he is behind in tax deferred saving..... so IMO start catching up for now. Max the deferred SEP. In a few years when you can make better guesstimates of what his income mix is going to be with and without any more ...
by JW-Retired
Fri Feb 02, 2018 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: Help a friend that finally is asking for some
Replies: 14
Views: 999

Re: Help a friend that finally is asking for some

Is all this in a taxable account or some tax-deferred?
JW
by JW-Retired
Fri Feb 02, 2018 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: SEP IRA or Roth? Need help investing in retirement for my dad
Replies: 8
Views: 449

Re: SEP IRA or Roth? Need help investing in retirement for my dad

My opinion: $900k/yr income now and only $250k in a tax deferred account. Looks like he is behind in tax deferred saving..... so IMO start catching up for now. Max the deferred SEP. In a few years when you can make better guesstimates of what his income mix is going to be with and without any more t...
by JW-Retired
Fri Feb 02, 2018 10:03 am
Forum: Investing - Help with Personal Investments
Topic: Finally going to invest, brother is FA
Replies: 89
Views: 6614

Re: Finally going to invest, brother is FA

My brother is one of my best friends (I know, this is exactly the reason I shouldn't invest with him) so I truly believe he will do his best with my money. As many of you pointed out though, the effect of compounding fees is enormous. However I will ask this, if I have an actively managed portfolio...
by JW-Retired
Thu Feb 01, 2018 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Penalty
Replies: 2
Views: 316

Re: Roth IRA Penalty

This happens all the time, but you do need to fix it. You need to re-characterize(?) that 2017 contribution as a non-deductible tIRA contribution (or simply withdraw it). In your case shifting it into a non-deductible tIRA and then converting it along with your 2018 contribution backdoor should work...
by JW-Retired
Thu Feb 01, 2018 8:46 am
Forum: Investing - Help with Personal Investments
Topic: Finally going to invest, brother is FA
Replies: 89
Views: 6614

Re: Finally going to invest, brother is FA

I can get discounted prices on mutual funds through my brother, including nav price (no loadings) and can either go with a fee based or commission based account. Fee based is 1.12% annual, and commission is .7% for every mutual fund or etf I buy (one time cost per fund). If I just buy index or low ...
by JW-Retired
Wed Jan 31, 2018 8:19 pm
Forum: Investing - Help with Personal Investments
Topic: How do I open a nondeductible IRA
Replies: 24
Views: 990

Re: How do I open a nondeductible IRA

Also note the 8606 line 6 means the value of " ALL your traditional, SEP, and SIMPLE IRA" accounts is your "nondeductible IRA" for tax purposes. You also need to know that a rollover IRA is a traditional IRA so it needs to be added in too. The form doesn't care if it was rolled from a 403b/401k or ...
by JW-Retired
Wed Jan 31, 2018 6:53 pm
Forum: Investing - Help with Personal Investments
Topic: How do I open a nondeductible IRA
Replies: 24
Views: 990

Re: How do I open a nondeductible IRA

The title of the 8606 form is "Nondeductible IRAs", which ought to be clue that it needs to be filled out if you make any nondeductible contributions in the year, or if you have in the past and later do much of anything to change the non-deductible contributions basis. My retired wife has a basis in...
by JW-Retired
Sun Jan 28, 2018 9:19 am
Forum: Investing - Help with Personal Investments
Topic: Does anyone not rebalance?
Replies: 66
Views: 4594

Re: Does anyone not rebalance?

I only one-way rebalance........will sell stocks to keep my bonds near 40%. If/when bonds exceed 40% because stocks are tanking we just watch. Did that peacefully in 08/09/10.
JW
by JW-Retired
Sat Jan 27, 2018 4:29 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed with new 401K funds through Principal
Replies: 4
Views: 302

Re: Help needed with new 401K funds through Principal

401k funds usually (or at least often) don't have tickers symbols. IMO, except for #4, the expense ratios of your listed funds are plenty good enough to use.
JW
by JW-Retired
Fri Jan 26, 2018 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Sanity check of SS with less than 35 years earnings
Replies: 31
Views: 3620

Re: Sanity check of SS with less than 35 years earnings

Looking at SS benefit formula is seems that after the 2'nd bend point the increases in the SS benefit are so small they seem negligible for someone that is contemplating a reasonable middle class lifestyle, ie. I don't see that 5 more years of earnings change the calculation of whether to retire or...
by JW-Retired
Fri Jan 26, 2018 9:37 am
Forum: Investing - Theory, News & General
Topic: 401k millionaires
Replies: 158
Views: 23685

Re: 401k millionaires

deleted
by JW-Retired
Thu Jan 25, 2018 11:25 am
Forum: Personal Finance (Not Investing)
Topic: How do you decide how wealthy you really are?
Replies: 58
Views: 7941

Re: How do you decide how wealthy you really are?

On any given day, for long term planning, how do figure out or think about how much you really have? I'm a Realityland guy, but why does it matter? Realityland or Fantasyland, your long term planning will turn out be uncertain way beyond the current market's short term bouncing around. Have you eve...
by JW-Retired
Wed Jan 24, 2018 8:50 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor ROTH misunderstanding, is it me or Vanguard "Retirement Specialist"
Replies: 27
Views: 2245

Re: Backdoor ROTH misunderstanding, is it me or Vanguard "Retirement Specialist"

What did your annual IRS form 8606 say you owed in taxes? That's all that matters. If you have a large rollover IRA it must have been pretty substantial?
JW
by JW-Retired
Wed Jan 24, 2018 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Exchange funds within 401k all at once or some type of dollar cost averaging
Replies: 5
Views: 182

Re: Exchange funds within 401k all at once or some type of dollar cost averaging

They are 80% the same stocks. The returns have tracked each other very closely for the last 30 years.
http://quotes.morningstar.com/chart/fun ... ture=en_US

If you can't risk this one all at once then all trades are going to be terrible ordeals.
JW
by JW-Retired
Tue Jan 23, 2018 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Can a divorced spouse claim SS on the record of an ex- who died too young to claim?
Replies: 5
Views: 842

Re: Can a divorced spouse claim SS on the record of an ex- who died too young to claim?

I am about to file for SS at age 70. My spouse of 15 years died at age 60. I have no idea which of us earned the most given the breakdown of communications after divorce. You have nothing to lose by filing for deceased divorced spouse benefits and continuing to defer your own benefits to age 70. JW
by JW-Retired
Tue Jan 23, 2018 11:13 am
Forum: Investing - Help with Personal Investments
Topic: Non Deduct IRA Conversion
Replies: 6
Views: 383

Re: Non Deduct IRA Conversion

dale99, One other thing we should verify..... you have no other tIRA, SEP IRA, Simple IRA, or rollover IRA accounts anywhere? Nothing except those two you mentioned here? JW I have a SEP my Employer has contributed 2.5% to for years, no money out of my pocket. My wife rolled 401k to Roth in 2012 af...
by JW-Retired
Tue Jan 23, 2018 9:51 am
Forum: Investing - Help with Personal Investments
Topic: Non Deduct IRA Conversion
Replies: 6
Views: 383

Re: Non Deduct IRA Conversion

dale99,
One other thing we should verify..... you have no other tIRA, SEP IRA, Simple IRA, or rollover IRA accounts anywhere? Nothing except those two you mentioned here?
JW
by JW-Retired
Mon Jan 22, 2018 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA
Replies: 2
Views: 275

Re: Backdoor Roth IRA

Your husbands IRA does not get involved with anything you do with your IRA. The "I" means it is an individual account.

Yes, if you have no pre-tax assets in your IRA already then you are set to do yearly backdoor conversions to a Roth for you.
JW
by JW-Retired
Mon Jan 22, 2018 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Is Tax CPA really needed for Vanilla Investments ?
Replies: 25
Views: 1792

Re: Is Tax CPA really needed for Vanilla Investments ?

DW & I used a CPA for taxes exactly one time very long ago. He screwed it up (I believe purposely), and then charged us another $500 to fix it. That was a lot of money back then. This was strong encouragement for me do my own taxes ever since. I rate this as one the key financial choices that we hav...