Search found 6515 matches

by JW-Retired
Thu Dec 14, 2017 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3482

Re: How does the IRS know the value of my 401K at end of year for RMDs

Thanks for your advice I did not take it as a criticism. I will likely take out slightly higher RMDS that Fidelity or Vanguard estimates as I'm neurotic about not paying enough taxes. Lynette, You really don't need to do "slightly higher". Fidelity or Vanguard don't "estimate" your RMDs they comput...
by JW-Retired
Thu Dec 14, 2017 10:52 am
Forum: Personal Consumer Issues
Topic: How easy is it to minimize tax liability yourself without a CPA/accountant?
Replies: 26
Views: 2379

Re: How easy is it to minimize tax liability yourself without a CPA/accountant?

I started doing taxes myself, in pen way before software was available to do it, when the CPA I went to made a mistake (that I found) and then charged me more than the mistake cost in tax to file the form to fix the mistake. I figured that even if I made a $500 mistake, I'd be ahead of the game. De...
by JW-Retired
Thu Dec 14, 2017 10:22 am
Forum: Investing - Help with Personal Investments
Topic: 40,000 to safely invest
Replies: 15
Views: 749

Re: 40,000 to safely invest

With the backdoor option it is not a tax savings at a higher combined income level? It doesn't save on (or add too) your taxes now but it does save on your taxes when you get to the point of taking money out of the Roth in retirement. For the Roth there is no tax on any withdrawals when you take mo...
by JW-Retired
Thu Dec 14, 2017 8:59 am
Forum: Investing - Help with Personal Investments
Topic: 40,000 to safely invest
Replies: 15
Views: 749

Re: 40,000 to safely invest

We earn to much for the Roth IRA and reg Ira we don't get a tax deduction. I guess the reason I am asking is I know my earning potential is going away to raise our kids and I've been careeer oriented this far. Letting my husband go kill the meat for a bit.. Do you already have money in a reg IRA? (...
by JW-Retired
Wed Dec 13, 2017 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3482

Re: How does the IRS know the value of my 401K at end of year for RMDs

There is no IRS reporting of individual 401k year end balances or if RMDs are required. The only year-end reporting for 401k plans is for the plan as a whole via one of the versions of Form 5500. Unlike IRAs, 401k plan administrators are required to distribute RMDs. These are reported on Form 1099-...
by JW-Retired
Wed Dec 13, 2017 12:25 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3482

Re: How does the IRS know the value of my 401K at end of year for RMDs

I took my RMD in January which my Megacorp designated as the required amount. I took a further distribution in June. I've started the rollover in December so that I can take QCDs next year. My confusion was how the IRS would know the balance on my 401K on 12/31/2016 to ensure that I had taken suffi...
by JW-Retired
Wed Dec 13, 2017 9:24 am
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3482

Re: How does the IRS know the value of my 401K at end of year for RMDs

Thank you for all of the assistance. The reason I asked the question is that I am in the process of rolling over my 401K to Vanguard and Fidelity IRA's. I wanted to know how the reporting worked so that I can fill in my 1040 correctly. I understand that the balance for my 401K at the end of 2016 ne...
by JW-Retired
Wed Dec 13, 2017 8:33 am
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3482

Re: How does the IRS know the value of my 401K at end of year for RMDs

There is no IRS reporting of individual 401k year end balances or if RMDs are required. The only year-end reporting for 401k plans is for the plan as a whole via one of the versions of Form 5500. Unlike IRAs, 401k plan administrators are required to distribute RMDs. These are reported on Form 1099-...
by JW-Retired
Tue Dec 12, 2017 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: How does the IRS know the value of my 401K at end of year for RMDs
Replies: 30
Views: 3482

Re: How does the IRS know the value of my 401K at end of year for RMDs

How does the IRS know the value of my 401K / IRA at the end of the year to calculate RMDs? 2017 was the first year I had to take RMDs and my former employer calculated the amount of the RMD. I was wondering if that information is given to the IRS as I think there are large penalties if you do not t...
by JW-Retired
Tue Dec 12, 2017 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: How to report property tax
Replies: 6
Views: 329

Re: How to report property tax

I pay my property taxes directly to the local authorities. They send me a bill. I send them a check. The IRS is not involved at all. I put the amounts I paid on my Schedule A. So it is just like any other tax deductible item (charitable donation): I have a cancelled check and a receipt. Yep, exactl...
by JW-Retired
Tue Dec 12, 2017 11:57 am
Forum: Investing - Help with Personal Investments
Topic: Having trouble finding a Lincoln Financial "Regional Office"...any help?
Replies: 5
Views: 349

Re: Having trouble finding a Lincoln Financial "Regional Office"...any help?

edge wrote:
Tue Dec 12, 2017 11:56 am
Why in the world would you want to find one?
You beat me to this comment.
JW
by JW-Retired
Tue Dec 12, 2017 9:29 am
Forum: Investing - Help with Personal Investments
Topic: What to do after losing $117k in stock market?
Replies: 115
Views: 10942

Re: What to do after losing $117k in stock market?

Yes, I feel like the biggest idiot especially in this bull market. I only started investing 3 years ago and got involved in high risk stocks (oil and biotech). Made some really bad picks and took a massive loss. ........ I am lucky to have a stable $120k/year job. Maybe I missed it but did you real...
by JW-Retired
Mon Dec 11, 2017 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: RMD and Roth IRA conversions
Replies: 8
Views: 916

Re: RMD and Roth IRA conversions

So it sounds like I will have to wait until she retires. Then start moving money into the Roth IRA up to the 25% tax bracket max. We don't plan to take SS until 67 so that will give us some years to move money into the Roth IRA. Also, we can live the same as now with just my pension. Looks like a g...
by JW-Retired
Mon Dec 11, 2017 10:13 am
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 944

Re: How should I look at SS and pensions when developing my post-FRA AA?

How should I look at SS and pensions when developing my post-FRA AA? Should I count them as bonds @ 25x, should I discount them to 20x or 15x, or should I disregard them. It makes sense to me to regard them as guaranteed income streams and subtract them from projected expenses for cash flow purpose...
by JW-Retired
Mon Dec 11, 2017 8:25 am
Forum: Investing - Help with Personal Investments
Topic: RMD and Roth IRA conversions
Replies: 8
Views: 916

Re: RMD and Roth IRA conversions

Is this correct, and is there really a big advantage of starting to moving the money early. My example is that my pension keeps us in the 25% tax bracket. My wife still works but we max out her 401k at work. This keeps us below the Roth IRA contribution salary limits. When she retires in around 7 y...
by JW-Retired
Sun Dec 10, 2017 10:14 am
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 944

Re: How should I look at SS and pensions when developing my post-FRA AA?

Simple straightforward question. How should I look at SS and pensions when developing my post-FRA AA? Should I count them as bonds @ 25x, should I discount them to 20x or 15x, or should I disregard them. It makes sense to me to regard them as guaranteed income streams and subtract them from project...
by JW-Retired
Sun Dec 10, 2017 9:40 am
Forum: Investing - Help with Personal Investments
Topic: Does a Boglehead ever time the market?
Replies: 65
Views: 4024

Re: Does a Boglehead ever time the market?

livesoft wrote:
Sun Dec 10, 2017 9:12 am
^I think you may have mis-read "not a few hundred." :) I think the OP may have a 6-figure or more windfall or something like that.
Maybe, but I was thinking 6-figures would have rated at least a "not a few thousand". :D
by JW-Retired
Sun Dec 10, 2017 9:08 am
Forum: Investing - Help with Personal Investments
Topic: Does a Boglehead ever time the market?
Replies: 65
Views: 4024

Re: Does a Boglehead ever time the market?

Wow that is a lot of replies and a lot of info to digest, thanks to everyone for the advice and the time spent replying, its a bit overwhelming I feel like I have dived in head first. For the record I am 34, timeframe is 20 years + and my nestegg is a lump sum, not a few hundred. No offense, but "n...
by JW-Retired
Sat Dec 09, 2017 7:08 pm
Forum: Investing - Help with Personal Investments
Topic: Did I make an irrevocable IRA mistake?
Replies: 6
Views: 643

Re: Did I make an irrevocable IRA mistake?

I've been told that it's more trouble than it's worth to transfer the traditional IRA to a Roth, but I don't want that money to be decimated by taxes when I do finally decide to take it out. It's just a simple "conversion" to a Roth........ Vanguard could do it for you in a jiffy. Not any trouble a...
by JW-Retired
Sat Dec 09, 2017 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: Exchanging managed funds for Indexed funds
Replies: 10
Views: 544

Re: Exchanging managed funds for Indexed funds

in a taxable vanguard account i have a mix of indexed and managed funds - i have learned in the past 5 years to only purchase index funds to avoid the yearly tax penalty that comes from managed funds - we have about $ 90,000 in profits in the managed funds plus another $ 40,000 in profits from abou...
by JW-Retired
Sat Dec 09, 2017 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: Exchanging managed funds for Indexed funds
Replies: 10
Views: 544

Re: Exchanging managed funds for Indexed funds

- we have about $ 90,000 in profits in the managed funds plus another $ 40,000 in profits from about 20 stocks my Questions - ideally i would like to 'sell' the managed funds and move into indexed funds - however when does the long term capital gains impact cover the indexed fund advantages. - hard...
by JW-Retired
Fri Dec 08, 2017 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Tax questions about moving taxable to lower ER options
Replies: 8
Views: 648

Re: Tax questions about moving taxable to lower ER options

......... I see Cost Basis and Unrealized Gain/Loss Amount. Is calculating the tax we'd have to pay as simple as .15 * that gain amount? One other consideration. My wife might be moving to a lower paying, but much more rewarding, position next year which might drop us one tax bracket (we're on the ...
by JW-Retired
Fri Dec 08, 2017 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversions: how far should I go in 2017?
Replies: 15
Views: 1295

Re: Roth conversions: how far should I go in 2017?

If I convert to the top of the 25% bracket each year until RMD, I will be able to convert a little more than 40% of my tax deferred assets before RMDs begin. That's probably overstated because - The 40% assumes no growth of the tax deferred portfolio from now to age 70 1/2. - I have assumed no Soci...
by JW-Retired
Thu Dec 07, 2017 9:26 pm
Forum: Personal Consumer Issues
Topic: sharing cost of tree cutting
Replies: 31
Views: 1581

Re: sharing cost of tree cutting

We follow the 100% neighbor safest way for tree trimming. We pay for any/all trimming or removal of my trees, and I only trim neighbors tree limbs back to my fence line. My tree trim guys never set foot on the neighbors ground. If a little something falls in their yard they hook it up over the fence...
by JW-Retired
Thu Dec 07, 2017 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: SSN on job applications
Replies: 33
Views: 1720

Re: SSN on job applications

I’m currently searching for a job. After my last interview, which was definitely the wrong company for me, I immediately regretted putting my social on the application I filled out. If you are serious about this my thought would be to hedge your bets. Hold back your SS number for every other interv...
by JW-Retired
Thu Dec 07, 2017 11:39 am
Forum: Personal Finance (Not Investing)
Topic: What did you do with your first RMD withdrawal money?
Replies: 63
Views: 4305

Re: What did you do with your first RMD withdrawal money?

Nothing special. First and every RMD withdrawal went to withheld taxes and the checking account first. Then it is sooner or later deployed to a combination of spending, family gifting, taxable account investments, and other longer term savings. Like any income.
JW
by JW-Retired
Thu Dec 07, 2017 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Help Me Not Screw Up Back Door Roth
Replies: 3
Views: 353

Re: Help Me Not Screw Up Back Door Roth

You have it if you hold to the requirement that on 12/31/2017 you still do not to have any money in tIRAs, SEP IRAs, Simple IRAs, and rollover IRAs.

And don't forget to practice filling out the 8606 forms so you can tell if your tax software is understanding you.
JW
by JW-Retired
Wed Dec 06, 2017 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement fund suggestion
Replies: 5
Views: 616

Re: Retirement fund suggestion

Where have all your assets been invested in past years? Is Wellington a big change in stock/bond asset allocation?
JW
by JW-Retired
Wed Dec 06, 2017 8:08 pm
Forum: Investing - Help with Personal Investments
Topic: Analyzing Expense Ratios
Replies: 39
Views: 2167

Re: Analyzing Expense Ratios

My work offers a 3% match within their 401K pension plan. The plan has a mix of Oppenheimer, Prudential, and Invesco funds (Class R) available to select from. In my review of these funds the expense ratio is expensive, 1.08% to 1.66% (every one have sub-transfer fee's, front end loads, and 12B fee'...
by JW-Retired
Wed Dec 06, 2017 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: Analyzing Expense Ratios
Replies: 39
Views: 2167

Re: Analyzing Expense Ratios

A personal Roth IRA and a Roth 401k account are independent. You can open a personal IRA with Vanguard or some other low cost fund company and that adds to what you can contribute the 401k. If you are under age 50, a Roth 401k has a $18k/year contribution limit and the Roth IRA adds another $5.5k. O...
by JW-Retired
Wed Dec 06, 2017 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: Voya 401k or Not! Not enough in 401ks?
Replies: 13
Views: 889

Re: Voya 401k or Not! Not enough in 401ks?

Can't you do the 2 tIRAs and 3% to the 401k? Even if the match is not very much the tax reduction on 3% is the same.
JW
by JW-Retired
Wed Dec 06, 2017 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Voya 401k or Not! Not enough in 401ks?
Replies: 13
Views: 889

Re: Voya 401k or Not! Not enough in 401ks?

6 years to be vested in the 401k! Meaning they take some of the match back if she leaves earlier. It's a sliding scale so they take less of it back for each of the 5 years so the match is worthwhile after a couple of years. It's been a long time, but I recall my 401k was something like that too. The...
by JW-Retired
Wed Dec 06, 2017 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Voya 401k or Not! Not enough in 401ks?
Replies: 13
Views: 889

Re: Voya 401k or Not! Not enough in 401ks?

While I know I should of been smart after the fact and put in 401k all these years I cant go back and change that mistake. We have 40 years expenses based on my withdrawal rate if we did not cut it so good there so just not sure what is the smart thing to do here. I like just having that extra inco...
by JW-Retired
Tue Dec 05, 2017 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: question about opening Traditional IRA
Replies: 8
Views: 514

Re: question about opening Traditional IRA

mine is already rolled over. my question was i was wondering if there's any way to avoid 3 retirement accounts (my traditional IRA, hubby traditional IRA, hubby's work 401k). Nope, no way to combine yours and hubby IRAs. An IRA is an Individual Retirement Account. Same applies to Roths and employer...
by JW-Retired
Tue Dec 05, 2017 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Spousal Benefit
Replies: 23
Views: 2212

Re: Social Security Spousal Benefit

Using the calculator for SS it advises us that the higher earning spouse should claim at age 70, and the lower earning spouse should claim at full retirement age. The calculator advises us that the lower earning spouse claiming early will lower lifetime benefits. I am trying to figure out why that ...
by JW-Retired
Mon Dec 04, 2017 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Regrets for taking SS at 62 or waiting?
Replies: 100
Views: 9229

Re: Regrets for taking SS at 62 or waiting?

62 or waiting? I'm very happy I waited to 70. It's so calming to know that when I'm gone, dear wife will get the maximum $42k/year (colaed and very tax favored) SS benefit instead of a measly $24k/year. How could we do otherwise? Living in California, I also really like maximizing that lightly taxed...
by JW-Retired
Mon Dec 04, 2017 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Spousal Benefit
Replies: 23
Views: 2212

Re: Social Security Spousal Benefit

I'm surprised no one suggested that she file at age 62 and he immediately files a restricted application on her benefit. She would recive 75% of her PIA (amount of benefit at her FRA), and he would receive 1/2 of her PIA until he turns 70, when he would file for his own benefit. This is likely the ...
by JW-Retired
Sun Dec 03, 2017 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Tax implications of balancing/exchanging funds
Replies: 9
Views: 588

Re: Tax implications of balancing/exchanging funds

1) I understand that I'd pay taxes on the capital gains of an exchange, but are there any strategies that could lower this? For example, a) Is there a certain amount to move per year over the course of several years that would lower my overall tax burden? We can't tell. The capital gains tax rate c...
by JW-Retired
Sun Dec 03, 2017 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Spousal Benefit
Replies: 23
Views: 2212

Re: Social Security Spousal Benefit

I am 31 and have a long time until Social Security will be on my mind, however my dad is 67 (68 in March) and my mom is 61 (62 in January) so they are right in this time frame. Since he is older and your Dad's benefit is much larger, a strong reason for him to wait until age 70 to take his SS is to...
by JW-Retired
Sun Dec 03, 2017 9:42 am
Forum: Investing - Help with Personal Investments
Topic: cash out pension or no?
Replies: 9
Views: 1154

Re: cash out pension or no?

i can start collecting a pension when i'm 50 or have it cashed out. which scenario would be the best? of course i don't know how long i'll live so there's that wild card. age 50 collect $800/month or cash out $140K age 55 collect $1200/month or cash out $230K age 60 collect $1800/month or cash out ...
by JW-Retired
Sat Dec 02, 2017 8:49 pm
Forum: Personal Consumer Issues
Topic: Electric Car (Nissan Leaf) for a teen driver?
Replies: 43
Views: 3112

Re: Electric Car (Nissan Leaf) for a teen driver?

Wife and I do a lot of suburban city walking. I sure don't like teenagers driving a car I can't hear coming.
JW
by JW-Retired
Sat Dec 02, 2017 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: Gifted a significant sum - taxes?
Replies: 5
Views: 1078

Re: Gifted a significant sum - taxes?

Yes, you don't need to do anything. Any gift tax are on the persons doing the giving. It might be informative for you to download a gift tax form and instructions and take a look. JW https://www.irs.gov/forms-pubs/about-form-709-united-states-gift-and-generation-skipping-transfer-tax-return ps: If t...
by JW-Retired
Sat Dec 02, 2017 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Cash
Replies: 14
Views: 1058

Re: 401k Cash

He is charging 0.75% for the first year, then 0.5% after that. I don't think the cash is exempt from the total. I told him I was reluctant to use an advisor and he would have to convince me that he could do better than I could by at least his fee. Not looking good at this point. Well, I think your ...
by JW-Retired
Sat Dec 02, 2017 10:35 am
Forum: Personal Finance (Not Investing)
Topic: How do I convince my employees to invest more?
Replies: 92
Views: 5150

Re: How do I convince my employees to invest more?

I own a small business with 15 employees, most of them earning between $40K and $60K per year. I offer them a Simple-IRA with a 100% match up to 3% of their salary. The problem is that hardly any of them participate. Last year I only matched $6,300, up from $4,483 the year before. IMO they are most...
by JW-Retired
Sat Dec 02, 2017 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Best Financial Moves You've Made
Replies: 158
Views: 21713

Re: Best Financial Moves You've Made

--Owning just the one house.

--Maxing out the 401k for 40 years.

--Choosing a wife who is more frugal than I am (I'm counting that as a "best move" even though it was luck). :beer
JW
by JW-Retired
Fri Dec 01, 2017 9:56 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversions prior and after required minimum distributions.
Replies: 9
Views: 807

Re: Roth conversions prior and after required minimum distributions.

I myself refer to 'taxable' income as income that is taxed not income after all deductions. Ie if I make 100k a year and put 18k in my 401k I consider that I have 82k taxable income even if I have 2 child credits and itemized deductions. But that isn't their IRS definition so nobody is going to und...
by JW-Retired
Fri Dec 01, 2017 8:45 am
Forum: Personal Finance (Not Investing)
Topic: Why should I donate to my alma mater?
Replies: 133
Views: 9368

Re: Why should I donate to my alma mater?

I don't. Even at the time long ago I thought that University squandered money. Always felt like the Profs ought to teach more than 1 class (or sometimes not even that). We do donate to the little Junior College that got me (and wife) started toward satisfying careers. They seem to appreciate it and ...
by JW-Retired
Fri Dec 01, 2017 7:52 am
Forum: Investing - Theory, News & General
Topic: How your FA, insurance agent, your community reacts when you show your financial knowledge?
Replies: 39
Views: 4593

Re: How your FA, insurance agent, your community reacts when you show your financial knowledge?

I was talking with an insurance salesman and in the conversation I said something like “from an actuarial perspective” and he almost fainted. He said almost no client knows the a-word. I wound up buying DI insurance from him. He was good! I bet this was another perfectly chosen sales ploy. It certa...
by JW-Retired
Thu Nov 30, 2017 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: Financial Advisor created potential Roth IRA issue
Replies: 11
Views: 1155

Re: Financial Advisor created potential Roth IRA issue

The Roth IRA was set up for me while I was in college by my parents' financial advisor. I spoke with the advisor yesterday, and asked how he was able to set up a Roth when I had almost no reported income (freshmen in college). He stated that he 'bent the rules' a little bit and claimed income that ...
by JW-Retired
Thu Nov 30, 2017 8:22 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Taxes
Replies: 6
Views: 833

Re: Social Security Taxes

See the wiki link below. When taking both SS and other income such as pensions/RMDs, the federal marginal tax on this other income can be effectively as high as 46.25% until taxation of the SS is fully phased in. An extra dollar of other income causes another $0.85 of SS to be taxed, meaning in the ...