Search found 7641 matches

by FiveK
Wed Nov 13, 2019 6:54 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA guidance
Replies: 6
Views: 325

Re: Roth IRA guidance

Count of Notre Dame wrote:
Wed Nov 13, 2019 6:38 pm
Why carry the student loans when you could sell off part of your taxable investments (hopefully not incurring a lot of taxes) to pay off that nuisance? I know the rate is low, but still!
Up to the OP, but if it is on auto-pay then the nuisance factor might be even lower than the interest rate.
by FiveK
Wed Nov 13, 2019 2:19 pm
Forum: Personal Investments
Topic: Retiring soon and need help
Replies: 15
Views: 1330

Re: Retiring soon and need help

It looks like Roth conversions make sense for spouse/I especially if one of us was to be a sole survivor. I plan to fine tune how much to convert as we get closer to retirement (and figure out ACA healthcare insurance) and to run my numbers through some tools (which I have not completely done yet) ...
by FiveK
Wed Nov 13, 2019 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Mysolo401k.com vs Vanguard solo 401k at higher income levels
Replies: 4
Views: 187

Re: Mysolo401k.com vs Vanguard solo 401k at higher income levels

Saver21 wrote:
Wed Nov 13, 2019 1:21 pm
Would also love to hear if there are other considerations that I am not thinking about in terms of benefits of one vs the other.
Solo 401(k) plan - Bogleheads might be worth a read.
by FiveK
Wed Nov 13, 2019 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA guidance
Replies: 6
Views: 325

Re: Roth IRA guidance

Gritty1109, welcome to the forum. 1. For years I have contributed to my 401k as a Roth contribution. Would I be better served to make these contributions pretax instead, given my tax bracket? 2. I have the opportunity to roll out my work 401k (Roth) to my personal Roth IRA due to a change in employm...
by FiveK
Wed Nov 13, 2019 12:40 pm
Forum: Personal Investments
Topic: Health insurance - HDHP (with HSA) versus PPO
Replies: 4
Views: 275

Re: Health insurance - HDHP (with HSA) versus PPO

Might be worth putting your numbers into a couple of comparison tools, e.g., Health Savings Account (HSA) vs. Traditional Health Plan and the 'HDHP Analysis' tab of the personal finance toolbox spreadsheet. If they support your leaning, then your leaning is probably correct. :)
by FiveK
Wed Nov 13, 2019 12:37 pm
Forum: Personal Investments
Topic: Pending Retirement/Tax Deferred Funds/Conversion Strategies?
Replies: 2
Views: 196

Re: Pending Retirement/Tax Deferred Funds/Conversion Strategies?

Is it possible or would it be advisable to convert from a 401k to a Roth 401k (but I don't have a 5 year history there)? Converting directly to a Roth IRA (because there are no RMDs from a Roth IRA but there are RMDs from a Roth 401k) seems better. Some quick estimates put you in the 24% bracket (u...
by FiveK
Wed Nov 13, 2019 12:24 pm
Forum: Personal Investments
Topic: Taxes on Long Term Capital Gains
Replies: 12
Views: 1160

Re: Taxes on Long Term Capital Gains

RubyTuesday wrote:
Wed Nov 13, 2019 12:18 pm
Every dollar of additional ordinary income was taxed at 12% AND pushed another dollar of cap gain that had been taxed at 0% to 15%. So the effective marginal rate of the additional dollars of ordinary income was 27%.
+1

See Marginal tax rate - Bogleheads for that example in chart form.
by FiveK
Wed Nov 13, 2019 2:32 am
Forum: Personal Finance (Not Investing)
Topic: How to Calculate Qualified Expense (for 529 Plan) for College Student Living at Home
Replies: 18
Views: 1231

Re: How to Calculate Qualified Expense (for 529 Plan) for College Student Living at Home

Left unspecified by that document is how one determines "the fair rental value of the home”. I am going to use “allocated actual” housing expenses to determine qualified 529 expenses. Using “fair rental value” (which is probably higher) as the basis for qualified 529 expenses *might* require the pa...
by FiveK
Wed Nov 13, 2019 1:57 am
Forum: Personal Finance (Not Investing)
Topic: How to Calculate Qualified Expense (for 529 Plan) for College Student Living at Home
Replies: 18
Views: 1231

Re: How to Calculate Qualified Expense (for 529 Plan) for College Student Living at Home

One could follow the method outlined by the Worksheet for Determining Support, used when one is determining if another is a dependent.

Left unspecified by that document is how one determines "the fair rental value of the home." The One Percent Rule might be a defensible approach.
by FiveK
Wed Nov 13, 2019 1:46 am
Forum: Personal Investments
Topic: To Roth or not to Roth, that is the question
Replies: 8
Views: 1008

Re: To Roth or not to Roth, that is the question

I have “roughly “ calculated that I need to reduce my total RMD’s by approximately $100k before 70-1/2, to stay in the 22% bracket add avoid the IRMAA cliff. Do you mean reduce the RMDs by $100K (which would require reducing your traditional balance by $2 million or so), or do you want to reduce th...
by FiveK
Tue Nov 12, 2019 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: HSA catch-up contribution to 2 separate accounts
Replies: 7
Views: 352

Re: HSA catch-up contribution to 2 separate accounts

For the $7000 family maximum you can contribute in any ratio between two accounts. If you contribute more than $7000 but no more than $8000, you have to choose between the two accounts for the extra but you could put everything into one account. If you contribute more than $8000 then you have to put...
by FiveK
Tue Nov 12, 2019 1:43 pm
Forum: Investing - Theory, News & General
Topic: Order or distributions on Roth IRA
Replies: 26
Views: 1732

Re: Order or distributions on Roth IRA

With Vanguard, If I want to open, I just have to open it it as 'Traditional IRA', right? If you want a traditional IRA, yes. If you want a Roth IRA, you open it as a Roth IRA. For your situation, the word rollover is an irrelevant adjective. In other words, it has no effect on your finances and tax...
by FiveK
Tue Nov 12, 2019 12:51 pm
Forum: Personal Investments
Topic: "Tax advantaged Annuity" advised for friend
Replies: 34
Views: 1432

Re: "Tax advantaged Annuity" advised for friend

Do folks agree with this? "Using its lower fees as rationale, convince your friend to 1035 transfer to Vanguard (if she still can as Vanguard is passing administration of investment annuities to Transamerica by December 2020). There she will get honest advice. Her current advisor's "advice" is not ...
by FiveK
Tue Nov 12, 2019 12:38 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversion Calculation
Replies: 17
Views: 1328

Re: Roth Conversion Calculation

If that is not paying the Medicare surcharge, then your gross income can't be greater than $85,000 this year. Because the income brackets used to determine Medicare surcharges in 2020 will increase by 1.7%, rounded to the nearest $1,000 , you can go up to $87,000 for 2019. Perhaps even more, becaus...
by FiveK
Tue Nov 12, 2019 1:06 am
Forum: Investing - Theory, News & General
Topic: Order or distributions on Roth IRA
Replies: 26
Views: 1732

Re: Order or distributions on Roth IRA

Fidelity (401k) sent me some forms to do the tIRA->401k rollover It tells me that it will accept money from conduit (rollover) IRAs and non-conduit IRAS Is there a difference between a rollover IRA and a traditional IRA? Not in terms of taxation. See Rollover, Traditional, And Roth IRAs . But some ...
by FiveK
Tue Nov 12, 2019 1:00 am
Forum: Personal Investments
Topic: "Tax advantaged Annuity" advised for friend
Replies: 34
Views: 1432

Re: "Tax advantaged Annuity" advised for friend

Just got some more information: From her: "It is in an annuity. I am considering converting it to a tax advantaged annuity. All annuities are "tax advantaged" in that gains are not taxed until withdrawn - as opposed to a taxable account in which interest and dividends are taxed annually. All annuit...
by FiveK
Tue Nov 12, 2019 12:50 am
Forum: Personal Investments
Topic: "Tax advantaged Annuity" advised for friend
Replies: 34
Views: 1432

Re: "Tax advantaged Annuity" advised for friend

Wenonah wrote:
Tue Nov 12, 2019 12:23 am
billfromct:
"Short term money (1-5 years) to build a house/pay for college should be put in a short term fixed income investment never into an annuity. Annuities should only be used for long term (40-50 year) retirement savings."

Basically just a money market or short term CDs??
Pretty much.
by FiveK
Tue Nov 12, 2019 12:08 am
Forum: Personal Investments
Topic: "Tax advantaged Annuity" advised for friend
Replies: 34
Views: 1432

Re: "Tax advantaged Annuity" advised for friend

I need some savvy people to ask me questions for her, so she does the right thing with this money! Thanks! What does "locked in" mean? Re: "...taken 50,000 out of the taxable interest. It is non taxable...." What is taxable to her and what isn't? Has she annuitized this policy or is it still in the...
by FiveK
Mon Nov 11, 2019 10:38 pm
Forum: Personal Investments
Topic: "Tax advantaged Annuity" advised for friend
Replies: 34
Views: 1432

Re: "Tax advantaged Annuity" advised for friend

Wenonah wrote:
Mon Nov 11, 2019 10:28 pm
...currently in an annuity that is locked in, earning 2.8% a year and she can take out 10,000.00 a year.
What does "locked in" mean?

Usually the best reaction to annuities suggested by a "financial advisor" is to run far, far away. Don't know enough about this one to suggest otherwise.
by FiveK
Mon Nov 11, 2019 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: savings/retirement/benefits options for a small nonprofit
Replies: 1
Views: 154

Re: savings/retirement/benefits options for a small nonprofit

Don't know what the best provider would be for you, but Employee Fiduciary is often mentioned as one that might make your short list. E.g., see "employee fiduciary" site:bogleheads.org - Google Search for several threads that mention that and other "usual suspects." Might give you a start....
by FiveK
Mon Nov 11, 2019 8:50 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversion Calculation
Replies: 17
Views: 1328

Re: Roth Conversion Calculation

In short, TaxCaster has too many shortcomings. It might be accurate for you, but there are much better tools that are just as easy to use.

See US and state income tax calculator - Bogleheads.org for a good overview of the better web-based and spreadsheet options.
by FiveK
Mon Nov 11, 2019 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement and Tax savings question
Replies: 7
Views: 535

Re: Retirement and Tax savings question

Morgan84 wrote:
Mon Nov 11, 2019 4:16 pm
Can we have 401K and IRA account at same time and max both of them.
Yes.

See IRA Deduction Limits | Internal Revenue Service for AGI limits on deducting a tIRA contribution, and follow the link in that article to the AGI limits on direct Roth contributions.
by FiveK
Mon Nov 11, 2019 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement and Tax savings question
Replies: 7
Views: 535

Re: Retirement and Tax savings question

This year our combined income would be close to 205K and I plan to contribute 15K till end of year to 401K. Is there anything we can do other than Backdoor Roth for my spouse. Is that $205K gross (before any deduction), or is that your expected Adjusted Gross Income (AGI) which is your gross income...
by FiveK
Mon Nov 11, 2019 4:04 pm
Forum: Personal Consumer Issues
Topic: Water hammer
Replies: 27
Views: 2002

Re: Water hammer

About every 5 or 6 hours, I hear the sound of water being pumped, usually 3 bursts, then followed by water hammer in the pipes. This occurs during periods where I have not used water for a number of hours. I suspect maybe a slow leak, as no real change has happened in my water bill. Does the water ...
by FiveK
Mon Nov 11, 2019 2:01 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 273
Views: 17632

Re: Will we be OK at 3% WR?

It took a while but it finally dawned on us our real risks to a long happy and successful retirement was premature death or lifestyle degrading disability/illness. And for a couple, it only takes a misfortune to one or the other to really mess up long-held hopes and plans for both. And even absent ...
by FiveK
Mon Nov 11, 2019 3:03 am
Forum: Personal Investments
Topic: mega backdoor roth gone wrong
Replies: 16
Views: 1697

Re: mega backdoor roth gone wrong

My Roth 401K bucket is 0 right now and I will be under 50K total for the year. The amount you can move from the after-tax non-Roth to the Roth 401k is unaffected by how much is already in the Roth 401k. E.g., you could have $1 million in your Roth 401k and still be able to move your entire after-ta...
by FiveK
Mon Nov 11, 2019 2:00 am
Forum: Personal Investments
Topic: Backdoor Roth Gone Wrong
Replies: 12
Views: 1220

Re: Backdoor Roth Gone Wrong

I have been doing my taxes (via TurboTax), which I'm realizing is probably not the smartest idea. I'm probably going to enlist an accountant's help in the future... Although, now you know how form 8606 should look, so you may know more than an accountant who is unfamiliar with the backdoor Roth pro...
by FiveK
Mon Nov 11, 2019 1:58 am
Forum: Personal Investments
Topic: mega backdoor roth gone wrong
Replies: 16
Views: 1697

Re: mega backdoor roth gone wrong

dangling wrote:
Mon Nov 11, 2019 1:34 am
...they did say i could move it to the Roth 401K portion....
That may be practically as good as moving it to a Roth IRA. As the wiki entry notes, this works if funds are rolled into a Roth IRA, or a Roth account within the 401k.
by FiveK
Sun Nov 10, 2019 10:38 pm
Forum: Investing - Theory, News & General
Topic: Tax Deferred : Taxable : Tax Free
Replies: 34
Views: 1727

Re: Tax Deferred : Taxable : Tax Free

FWIW,

Deferred 59%
Taxable 33%
Roth/HSA 8%
by FiveK
Sun Nov 10, 2019 10:31 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 273
Views: 17632

Re: Will we be OK at 3% WR?

bhsince87 wrote:
Sun Nov 10, 2019 9:59 pm
Why the need for all the qualifiers?
Which qualifiers? ETA: Oh, Wiggums's? Anyway, it is difficult....

Although, it may be that the answer to the quoted question is It’s Difficult to Make Predictions, Especially About the Future, regardless of which qualifiers one has in mind.
by FiveK
Sun Nov 10, 2019 9:56 pm
Forum: Investing - Theory, News & General
Topic: Tax Deferred : Taxable : Tax Free
Replies: 34
Views: 1727

Re: Tax Deferred : Taxable : Tax Free

retiredjg wrote:
Sun Nov 10, 2019 4:30 pm
...since we are picking on this "rule of thumb", I've never really liked it either. :(
+1

Sometimes seems "rules" of thumb in the traditional vs. Roth arena have more exceptions than rules. :)
by FiveK
Sun Nov 10, 2019 9:42 pm
Forum: Personal Investments
Topic: Dilemma: After-tax 401K to Roth IRA, limited allocation for all 401K "types".
Replies: 18
Views: 967

Re: Dilemma: After-tax 401K to Roth IRA, limited allocation for all 401K "types".

corp_sharecropper wrote:
Sun Nov 10, 2019 12:43 pm
I don't really know how "bad" it would be to have earnings before Roth IRA conversion on a quarterly basis.
Not bad at all. Would you rather pay no tax and convert a smaller amount, or pay a little tax in return for converting a larger amount?
by FiveK
Sun Nov 10, 2019 6:41 pm
Forum: Personal Investments
Topic: IRA to Roth conversion (backdoor Roth) Question and Advice
Replies: 4
Views: 264

Re: IRA to Roth conversion (backdoor Roth) Question and Advice

Consider running your scenarios through TaxCaster or “what if” forms in tax prep software.... The "what if?" worksheets of TurboTax, TaxAct, etc. could work, but TaxCaster in particular does not handle the saver's credit so it would not be suitable here. See US and state income tax calculator - Bog...
by FiveK
Sun Nov 10, 2019 6:18 pm
Forum: Personal Investments
Topic: IRA to Roth conversion (backdoor Roth) Question and Advice
Replies: 4
Views: 264

Re: IRA to Roth conversion (backdoor Roth) Question and Advice

One quick nomenclature thing: A Backdoor Roth differs significantly from a Roth IRA conversions . The latter should be of interest to you now, while the former may be of interest to you a few years from now. Which scenario would be best? Usually for someone in your situation, given that the investme...
by FiveK
Fri Nov 08, 2019 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security withholding stopped before limit, is this incorrect?
Replies: 7
Views: 664

Re: Social Security withholding stopped before limit, is this incorrect?

wordsmith11 wrote:
Fri Nov 08, 2019 10:09 am
I do have pre-tax contributions for 401, HSA, medical premiums, etc. but don't think that applies.
401k contributions do not affect your FICA wages, but HSA and cafeteria plan medical premiums are subtracted from gross wages to get the FICA wage.
by FiveK
Fri Nov 08, 2019 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security withholding stopped before limit, is this incorrect?
Replies: 7
Views: 664

Re: Social Security withholding stopped before limit, is this incorrect?

dcare wrote:
Fri Nov 08, 2019 7:50 pm
I cannot think of a valid reason why the YTD FICA Wage on your pay stub would be greater than 132,900.
FICA covers both Social Security and Medicare. There is no upper limit on wages for Medicare taxes.
by FiveK
Fri Nov 08, 2019 7:54 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 273
Views: 17632

Re: Will we be OK at 3% WR?

Maybe you skipped where I wrote that 30-years average returns have never been too different from 10/7.5 (especially after factoring in inflation). Seems you are saying "this time it's different." Is that correct? The lowest (of all!) 30-year period is 4.3%. Japanese last 30-year return ? Less than ...
by FiveK
Fri Nov 08, 2019 6:09 pm
Forum: Personal Investments
Topic: How much is too much in an HSA?
Replies: 51
Views: 4218

Re: How much is too much in an HSA?

From what I read I think we can. But I am not certain. Yes, you can. Pub. 969 (linked previously), for an IRS publication, is quite readable. In there one finds "You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish...
by FiveK
Fri Nov 08, 2019 5:04 pm
Forum: Personal Investments
Topic: How much is too much in an HSA?
Replies: 51
Views: 4218

Re: How much is too much in an HSA?

From what I read I think we can. But I am not certain. Yes, you can. Pub. 969 (linked previously), for an IRS publication, is quite readable. In there one finds "You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish...
by FiveK
Fri Nov 08, 2019 4:13 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 273
Views: 17632

Re: Will we be OK at 3% WR?

Table at the bottom contains all inflation-adjusted numbers https://fourpillarfreedom.com/heres-how-the-sp-500-has-performed-since-1928/ The lowest (of all!) 30-year period is 4.3%. Japanese last 30-year return ? Less than zero. Are you suggesting that one should use a negative return on investment...
by FiveK
Fri Nov 08, 2019 3:51 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 273
Views: 17632

Re: Will we be OK at 3% WR?

Thesaints wrote:
Fri Nov 08, 2019 3:46 pm
...my objection is that past history average stock returns has been 10% and bond return has been 7%.
What do you think the returns were in the worst 30 year period that was successful?
by FiveK
Fri Nov 08, 2019 2:32 pm
Forum: Personal Investments
Topic: Investing in Taxable Account. Good or bad?
Replies: 20
Views: 2080

Re: Investing in Taxable Account. Good or bad?

In addition to Silk's fine advice on your self-employment specifics, see Prioritizing investmentsand Investment Order for some generic suggestions.
by FiveK
Fri Nov 08, 2019 2:27 pm
Forum: Personal Investments
Topic: 529 plan with State Tax deduction
Replies: 18
Views: 625

Re: 529 plan with State Tax deduction

shortduck wrote:
Fri Nov 08, 2019 9:47 am
I am in Michigan. I get a tax break of 4.25% state tax for my 529 plan contributions.
At the very least, when your child is in college, you could contribute X in December, saving .0425*X in state tax, then withdraw X in January to pay the school. Wait two years and repeat.
by FiveK
Fri Nov 08, 2019 2:22 pm
Forum: Personal Investments
Topic: 529 plan with State Tax deduction
Replies: 18
Views: 625

Re: 529 plan with State Tax deduction

shortduck wrote:
Fri Nov 08, 2019 9:57 am
see over here : https://www.bogleheads.org/wiki/Priorit ... nvestments

There is no mention about 529 plans.
See also the similar Investment Order, which does address 529 plans by suggesting one use them after ensuring one's own retirement funding.
by FiveK
Fri Nov 08, 2019 2:14 pm
Forum: Personal Investments
Topic: How much is too much in an HSA?
Replies: 51
Views: 4218

Re: How much is too much in an HSA?

One more question, my HR department said that I can cover my wife and children's medical bills out of my HSA even if they are not covered by my insurance. (wife had her own this year that was not HSA eligible) Sometimes, as here, HR gets it right. ;) From https://www.irs.gov/pub/irs-pdf/p969.pdf: Q...
by FiveK
Fri Nov 08, 2019 2:14 am
Forum: Personal Consumer Issues
Topic: Is selling trees for lumber Immoral?
Replies: 33
Views: 2650

Re: Is selling trees for lumber Immoral?

1130Super wrote:
Fri Nov 08, 2019 1:55 am
One more question would this be taxable income?
Yes.

See Financial Implications of Selling Timber for starters.
by FiveK
Fri Nov 08, 2019 12:45 am
Forum: Personal Finance (Not Investing)
Topic: Weighing 0% LTCG rates versus tax-exempt munis.
Replies: 3
Views: 325

Re: Weighing 0% LTCG rates versus tax-exempt munis.

OpenOffice message: "A Scripting Framework error occurred while running the UNKNOWN script UNKNOWN. Message:Incorrect format for Script URI:", with no URI given. So OpenOffice is pretty far off the edge of the world at that point :-). Definitely off the edge of the world I inhabit. :? Both for that...
by FiveK
Thu Nov 07, 2019 11:26 pm
Forum: Personal Investments
Topic: Investment Vehicles
Replies: 2
Views: 289

Re: Investment Vehicles

moeck602 wrote:
Thu Nov 07, 2019 4:31 pm
So, it would seem to me that a r401(k) would be advantageous over a t401(k) given my likely future tax situation. Would there be any advantages to have a t401(k)?
No, if your situation plays out exactly as you project.

Yes, if you (voluntarily or involuntarily) retire prior to age 57.
by FiveK
Thu Nov 07, 2019 9:17 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 273
Views: 17632

Re: Will we be OK at 3% WR?

"the entire period being referenced is not used to arrive at 3% or 4% withdrawal rates, only the very worst such periods" I'm not even sure of what that means, since the study conclusion is that 4% was sustainable in 95% (? iirc) of cases. If they used the very worst period, either it fails, or it ...
by FiveK
Thu Nov 07, 2019 8:32 pm
Forum: Personal Investments
Topic: Partial year HSA
Replies: 3
Views: 192

Re: Partial year HSA

From https://www.irs.gov/pub/irs-pdf/p969.pdf, If you fail to remain an eligible individual during the test-ing period, for reasons other than death or becoming disa-bled, you will have to include in income the total contribu-tions made to your HSA that wouldn’t have been made except for the last-mo...