Search found 4326 matches

by FiveK
Sat Apr 21, 2018 6:29 am
Forum: Personal Finance (Not Investing)
Topic: When can you buy TurboTax for 2018 tax year?
Replies: 10
Views: 908

Re: When can you buy TurboTax for 2018 tax year?

TwstdSista wrote:
Sat Apr 21, 2018 6:07 am
Do any of the 2018 tax calculators available address the 20% pass-through deduction yet?
Don't think so. Not surprising, because the IRS hasn't yet clarified everything about how that will be implemented.
by FiveK
Sat Apr 21, 2018 6:01 am
Forum: Personal Finance (Not Investing)
Topic: When can you buy TurboTax for 2018 tax year?
Replies: 10
Views: 908

Re: When can you buy TurboTax for 2018 tax year?

Here's the 2018 tax calculator that I'm using for advance planning https://www.mortgagecalculator.org/calcs/1040-calculator.php That's one of the web-based tax estimation programs that fall into the "just wrong" category, at least for the refundable part of the Child Tax Credit: it allows $2K/child...
by FiveK
Fri Apr 20, 2018 11:09 pm
Forum: Personal Finance (Not Investing)
Topic: When can you buy TurboTax for 2018 tax year?
Replies: 10
Views: 908

Re: When can you buy TurboTax for 2018 tax year?

This site also looks good on the surface and was recommended to me elsewhere: https://sites.google.com/site/excel1040/home/2018-tax-planner-new-tax-law Note this has an Excel spreadsheet with macros, which for some may raise security concerns. That may be the best-looking tax spreadsheet. For those...
by FiveK
Fri Apr 20, 2018 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 78
Views: 5857

Re: Help me explain why pre-tax investing can help when retiring in same bracket

1. Presumably this means they have already filled up the low tax brackets. However for that to be true, they need to have substantial other income (like pension). A pension is not necessary for this situation. Helpful, to be sure, but not necessary. For someone who takes Invest early and often to h...
by FiveK
Fri Apr 20, 2018 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: When can you buy TurboTax for 2018 tax year?
Replies: 10
Views: 908

Re: When can you buy TurboTax for 2018 tax year?

Most of the web-based tax estimation programs (TaxCaster et al. ) omit certain things at best, and are just wrong at worst. Unfortunately it usually isn't clear what they are omitting. Thus, it may be perfectly accurate for one person but inadequate for another. If you have TurboTax for 2017 (or a f...
by FiveK
Fri Apr 20, 2018 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: 2018 Portfolio Review
Replies: 7
Views: 725

Re: 2018 Portfolio Review

On the fund layout I have in the post is there anything you would change? Anything I should look out for? I might pick different ones, or not. I didn't do an exhaustive study of the options, but did look at your choices and they look reasonable. At some point it's similar to "which of Baskin-Robbin...
by FiveK
Fri Apr 20, 2018 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: Which 3 are recommended?
Replies: 6
Views: 653

Re: Which 3 are recommended?

I would like to transition to the famed 3 funds in order to reduce the risk going forward. In what way do you expect the risk to reduce? Many people view target date funds aggressively risky for a given age approaching retirement. ... Personally, in the interest of transparency, each target date fu...
by FiveK
Fri Apr 20, 2018 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Which 3 are recommended?
Replies: 6
Views: 653

Re: Which 3 are recommended?

I have been invested in Vanguard target date 2040 fund in my 403B and 457B funds. I would like to transition to the famed 3 funds in order to reduce the risk going forward. In what way do you expect the risk to reduce? Note that the Vanguard - Target Retirement 2040 Fund - Portfolio & Managemen...
by FiveK
Fri Apr 20, 2018 11:52 am
Forum: Investing - Help with Personal Investments
Topic: 2018 Portfolio Review
Replies: 7
Views: 725

Re: 2018 Portfolio Review

Questions: 1. My concern is selling a significant amount at once will bring my income out of the limits for our Roths. ... Do I mess around with a back door? 2. Is there an online tool to test the what ifs? 3. Would aligning to something along the below make sense...? 1. A Backdoor Roth IRA takes m...
by FiveK
Thu Apr 19, 2018 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Question on tax planning
Replies: 3
Views: 429

Re: Question on tax planning

lbrowning wrote:
Thu Apr 19, 2018 4:35 pm
...would it be better to pay estimated taxes than try to make it up via withholding?
Silk M's idea to use withholding looks good.
by FiveK
Thu Apr 19, 2018 6:51 pm
Forum: Investing - Help with Personal Investments
Topic: Finally Getting out of Annuities
Replies: 5
Views: 574

Re: Finally Getting out of Annuities

If the marginal rate they will pay on traditional->Roth conversions now is the same or lower than they would pay on traditional->Roth conversions in the future, and they can pay the tax from cash on hand, then getting everything out of the tIRA annuities now and into Roth index funds is a good idea.
by FiveK
Thu Apr 19, 2018 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity 4 fund that would be better than freedom fund?
Replies: 15
Views: 1090

Re: Fidelity 4 fund that would be better than freedom fund?

Thanks for the help 788. And to clarify my question, is their 4 index funds with Fidelity that resembles the Core Four suggested by Rick Ferri? There is FFNOX, which does not have a REIT component, but otherwise is somewhat similar to the "Core Four". Of course, "somewhat similar" is in the eye of ...
by FiveK
Thu Apr 19, 2018 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Is this annuity really as bad as I think it is? (Symetra Select 7)
Replies: 6
Views: 1065

Re: Is this annuity really as bad as I think it is? (Symetra Select 7)

In another sense it's not as bad as it sounds since they can cash it in now and get about 92% of their money back. arcion, this point is well worth considering. Sure, nobody likes to admit a mistake, but that attitude can be costly. E.g., if the money were invested in something return 5%/yr instead...
by FiveK
Thu Apr 19, 2018 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI mistake with Roth contributions
Replies: 2
Views: 326

Re: MAGI mistake with Roth contributions

No comment on 1 & 2, other than "recharacterize a recharacterization" - Google Search . From a quick scan, it appears one cannot "recharacterize a recharacterization". Someone else may be more familiar with these situations. For #3, contributing the full $18.5K to the 401k is probably wise. Then, if...
by FiveK
Wed Apr 18, 2018 11:54 pm
Forum: Investing - Help with Personal Investments
Topic: EJ Escapee
Replies: 7
Views: 824

Re: EJ Escapee

izzor3120, welcome to the forum. Perhaps the best place to start is, not surprisingly, Getting started - Bogleheads . Other good overviews include Investment Order Stock Series www.etf.com/docs/IfYouCan.pdf. You could do worse than using Vanguard Target Retirement 2060 Fund in all your IRAs, and Tot...
by FiveK
Wed Apr 18, 2018 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover questions in preperation for Backdoor Roth
Replies: 6
Views: 390

Re: Rollover questions in preperation for Backdoor Roth

Earl Lemongrab wrote:
Wed Apr 18, 2018 3:40 pm
There is no such thing as a backdoor Roth.
While that particular phrase might not be found in the US Code, it can be found in many places, including Backdoor Roth IRA - Bogleheads. Which is probably known to you, so this is merely to avoid causing any angst in the OP.
by FiveK
Wed Apr 18, 2018 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: Best Available 2018 tax estimator
Replies: 15
Views: 2030

Re: Best Available 2018 tax estimator

Almost there wrote:
Wed Apr 18, 2018 3:16 pm
boglesmind wrote:

Thank you for recommending the "Mortgage Calculator". That worked out perfect for me.
Note: that one allows $2K/child as a refundable credit. The law allows $1.4K. No idea how well it does everything else, but that was the first thing I tried, so....
by FiveK
Wed Apr 18, 2018 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated Taxes Question -- Help!
Replies: 14
Views: 912

Re: Estimated Taxes Question -- Help!

I was NOT expecting this at all, and now I am going to be substantially short on the tax payments unless I increase my withholdings dramatically in April/May. If by "withholdings" you do mean "tax withheld" (as opposed to "estimated tax paid") then you have all year to get the correct amount of wit...
by FiveK
Wed Apr 18, 2018 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Zero Return Filings (quarterly taxes)
Replies: 1
Views: 216

Re: Zero Return Filings (quarterly taxes)

If you have no 1099-MISC income, then withholding can likely handle your W-2 and small amounts of other (e.g., interest and dividends) income. In that case, you have no need whatsoever to file estimated taxes. Further, there is probably no need to use the online company at all. One exception might b...
by FiveK
Wed Apr 18, 2018 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover questions in preperation for Backdoor Roth
Replies: 6
Views: 390

Re: Rollover questions in preperation for Backdoor Roth

Thanks FiveK! I'm anxious to get this ball rolling! You may also do the backdoor Roth steps before moving the pre-tax money to the 401k. What matters is the balance in all your pre-tax IRAs on 31-Dec, not what the balance was on the days of the backdoor Roth. But if you have and prefer to use only ...
by FiveK
Wed Apr 18, 2018 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 78
Views: 5857

Re: Help me explain why pre-tax investing can help when retiring in same bracket

What 27% marginal rate? There is a 46% and a 25% marginal rate. The 27% is an effective tax rate (total tax/total dollars looked at). The point is simply if you do marginal versus marginal you get the wrong answer since that is a local optimum (reduces taxes on my next dollar) and not the global on...
by FiveK
Wed Apr 18, 2018 6:58 am
Forum: Investing - Help with Personal Investments
Topic: Rollover questions in preperation for Backdoor Roth
Replies: 6
Views: 390

Re: Rollover questions in preperation for Backdoor Roth

1. That depends on the receiving brokerage. Ask them. 2. Does not need to be closed. A zero balance is sufficient. 3. Adding the mid cap and small cap along with the Fidelity 500 index is optional. No red flags. 4. The backdoor is fine whether you "had to" or not. No penalties for using it. Good luck!
by FiveK
Tue Apr 17, 2018 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: Weighted Expense Ratio Calculator
Replies: 7
Views: 644

Re: Weighted Expense Ratio Calculator

Excel?

How many separated expense ratios do you need to weight?
by FiveK
Tue Apr 17, 2018 9:29 pm
Forum: Investing - Help with Personal Investments
Topic: Roth contribution for someone who didn't file a return
Replies: 4
Views: 333

Re: Roth contribution for someone who didn't file a return

Last week I asked my son if he made at least $5500 working for "Ken" and he replied, "Oh yeah $6000 easily" so I made a $5500 contribution to his Roth IRA for 2017. We also filed our own 2017 return without claiming him as a dependent for the first time. Your son isn't required to file for income t...
by FiveK
Tue Apr 17, 2018 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 78
Views: 5857

Re: Help me explain why pre-tax investing can help when retiring in same bracket

What does multiplication have to do with an addition problem. Here is the math on my next 100k of income .40*100k = 40k .46*10k + 90k*.25 = 27.1k As you can see paying 46% is clearly the right move even though it is a higher marginal rate. Why? Because effective tax rate is what matters:) Local opt...
by FiveK
Tue Apr 17, 2018 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Minimizing taxes for 2018
Replies: 12
Views: 1427

Re: Minimizing taxes for 2018

So if I contributed $5500 to Roth instead I would still qualify for 10% saver's credit but my taxes would be $4068 instead. Yes? You would still get a $400 saver's credit. The tax before the credit would be ~$4059 so the tax due would be ~$3659. The personal finance toolbox spreadsheet can help wit...
by FiveK
Tue Apr 17, 2018 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Filing Taxes for Parents with Teen working
Replies: 3
Views: 176

Re: Filing Taxes for Parents with Teen working

No change to yours, other than whatever educational credits you might now be eligible for. He is still your dependent. You do not include his income in your filing. He doesn't need to file a federal return. Probably not state either, but I don't have all 40+ state laws memorized. ;) But he should fi...
by FiveK
Tue Apr 17, 2018 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 78
Views: 5857

Re: Help me explain why pre-tax investing can help when retiring in same bracket

I suspect many people think of trad IRA as coming from dollars at marginal rate. Agreed - it does. However when money is distributed and it fills the lower tax rates And the amount coming from traditional withdrawals from previous years' contributions fills those lower tax rates the same as a pensi...
by FiveK
Tue Apr 17, 2018 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: Too Many Options: IRA, i401k, 403b, 457b. What to do?
Replies: 6
Views: 509

Re: Too Many Options: IRA, i401k, 403b, 457b. What to do?

To a rough approximation (i.e., assuming 4% is a safe withdrawal rate), if you could get a total of $10,800/yr in pensions this year you could both retire now. Your current plan to put anything that would be taxed at 22% into traditional, and maximize Roth contributions after that, looks good. Reall...
by FiveK
Tue Apr 17, 2018 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 78
Views: 5857

Re: Help me explain why pre-tax investing can help when retiring in same bracket

If I had reduced the original amount invested by paying taxes upfront, I would have had far less gains. So I basically don't care what my tax rate is in the withdrawal phase at a far later time because I keep the bulk of the gains. (As long taxes are not totally usurious.) But I'm all ears to count...
by FiveK
Tue Apr 17, 2018 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 78
Views: 5857

Re: Help me explain why pre-tax investing can help when retiring in same bracket

Looking at the tables below, if you are in the 35% tax bracket while working even after all of your pre-tax contributions to your retirement accounts, then every dollar was deferred at the 35% rate. If all of your income at retirement is coming from this deferred account, then you start at the bott...
by FiveK
Tue Apr 17, 2018 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 78
Views: 5857

Re: Help me explain why pre-tax investing can help when retiring in same bracket

To the original question, putting more into traditional pre-tax accounts is better when tax rates are the same since it's always preferable to delay paying taxes in that situation. Why would it be preferable? At best, traditional ties with Roth in that situation due to the commutative property of m...
by FiveK
Tue Apr 17, 2018 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths
Replies: 31
Views: 2312

Re: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths

Newbie question. My spouse and I do not pay into social security on W2. Using the toolbox spreadsheet, I see SS calculations on income. How does this play into marginal and cumulative tax rate numbers? Perhaps the easiest thing is to edit those cells and add *0 at the end (or just delete the SS tax...
by FiveK
Tue Apr 17, 2018 11:29 am
Forum: Personal Finance (Not Investing)
Topic: Estimated taxes with W2 and other income
Replies: 3
Views: 361

Re: Estimated taxes with W2 and other income

If I ask for an additional W-4 withholding (line 6) now, can I escape a possible under withholding penalty? You certainly may. I.e., that is an allowable and common way to approach this. If you are able to withhold enough this way, and your cash flow can absorb the reduced paycheck amounts, then it...
by FiveK
Tue Apr 17, 2018 1:54 am
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 78
Views: 5857

Re: Help me explain why pre-tax investing can help when retiring in same bracket

Effective versus marginal is a very easy way to explain why pretax investing helps. The "marginal versus marginal" stuff is right when you put in the asterik (i.e. all prior tax brackets already filled) but I am guessing that is a level of complexity that is beyond what is needed. Marginal versus m...
by FiveK
Tue Apr 17, 2018 1:49 am
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 78
Views: 5857

Re: Help me explain why pre-tax investing can help when retiring in same bracket

However, I'm going to have an even harder time explaining the section of the Bogleheads wiki you linked to. If you figure a better way to explain it, the wiki can be changed. :) For most people, traditional is the way to go, especially in the absence of a pension. For those with a pension, or with ...
by FiveK
Tue Apr 17, 2018 1:17 am
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 78
Views: 5857

Re: Help me explain why pre-tax investing can help when retiring in same bracket

I guess I mean, the marginal withdrawal bracket that would correspond to that level of post-tax income -- i.e. what you live on. Obviously with 100% Roth withdrawal one's marginal rate is still 0% but that's hardly the full story. It is the full story if one uses 100% Roth contributions. ;) And the...
by FiveK
Tue Apr 17, 2018 1:13 am
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 78
Views: 5857

Re: Help me explain why pre-tax investing can help when retiring in same bracket

If your tax rate is the same while you are working and while you are retired, then the deferral offers no advantage -- I assume that's the point you're making. No, I'm making the opposite point, that it in fact does offer an advantage. The reason is the difference between effective and marginal tax...
by FiveK
Tue Apr 17, 2018 1:09 am
Forum: Personal Finance (Not Investing)
Topic: Estimated taxes with W2 and other income
Replies: 3
Views: 361

Re: Estimated taxes with W2 and other income

...a 110% estimated tax safe harbor rule.... That phrase may have been meant differently, but as written "there is no such thing." See safe harbor rules for more. If you know in advance all your income for the year, and how much will be subject to - regular withholding, or - supplemental withholdin...
by FiveK
Tue Apr 17, 2018 12:48 am
Forum: Personal Finance (Not Investing)
Topic: Help me explain why pre-tax investing can help when retiring in same bracket
Replies: 78
Views: 5857

Re: Help me explain why pre-tax investing can help when retiring in same bracket

...where one's withdrawal marginal rate equals one's working marginal rate.... If this is the case, there are no "lower brackets to fill" because, by what you have defined, they are already full. And in that situation, Roth is better (or at least no worse) - see Maxing out your retirement accounts ...
by FiveK
Mon Apr 16, 2018 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: Best Available 2018 tax estimator
Replies: 15
Views: 2030

Re: Best Available 2018 tax estimator

CTC in cell G23 is actually "College Tax Credit" of $2,500 for the American Opportunity Tax Credit. I've got that filled in.It's based on cells R56 and 57. It's got to be the AOTC because of the amount. The Family Tax Credit (formerly Child Tax Credit)...I have filled in 1 dependent in cell G4 for ...
by FiveK
Mon Apr 16, 2018 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths
Replies: 31
Views: 2312

Re: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths

Hi, I am using toolbox spreadsheet (AWESOME!!!) and I entered all the information except for SEP IRA. Is there an entry forSEP IRA? If not, how would one manipulate the spreadsheet or is there a workaround? Thanks in advance. You could include the SEP amount along with any deductible tIRA contribut...
by FiveK
Mon Apr 16, 2018 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: Best Available 2018 tax estimator
Replies: 15
Views: 2030

Re: Best Available 2018 tax estimator

One other Q on kids on the tax estimator: - Child Tax Credit/ now Family Tax Credit:I see spots for entering minor children, but I don't see a $1,000 deduction showing up. Am I missing something? Assuming you are using a 2018 version (e.g., cell Q1 on the Instructions tab is V11.07), the CTC should...
by FiveK
Mon Apr 16, 2018 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: Best Available 2018 tax estimator
Replies: 15
Views: 2030

Re: Best Available 2018 tax estimator

I need to play with deductible health insurance premiums as an adjustment to my AGI.My husband and I are self-employed and can deduct all of our health insurance premiums. I'm using the above calculator from the Personal Finance Toolbox. I know I need to add it as a line item in "Subtractions for A...
by FiveK
Mon Apr 16, 2018 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Tax time: Where to find tax exempt interest dividends by state?
Replies: 4
Views: 275

Re: Tax time: Where to find tax exempt interest dividends by state?

Did you get a "consolidated 1099" (or words to that effect - typically includes 1099-INT, 1099-DIV, 1099-B) from Wealthfront? Often there will be a listing of the percentages by state for exempt interest in the funds that generated income for you. When present, this is usually at the end of the docu...
by FiveK
Mon Apr 16, 2018 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage rate % when tax deferred should take back seat
Replies: 16
Views: 787

Re: Mortgage rate % when tax deferred should take back seat

If I could save 22% tax now by going 401k instead of mortgage, even if expecting same rate of return, being able to pay less tax than 22% in retirement would mean investing > paying mortgage, right? So, paying down the mortgage wins either way if taxation is the factor considered. Strange as it may...
by FiveK
Mon Apr 16, 2018 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths
Replies: 31
Views: 2312

Re: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths

teen persuasion wrote:
Mon Apr 16, 2018 1:14 pm
First question: do you have investment income > $3500? If so, you are ineligible for EITC.
Good point. TurboTax et al. and the toolbox spreadsheet will all account for that (assuming one enters the interest, dividends, etc.).
by FiveK
Mon Apr 16, 2018 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths
Replies: 31
Views: 2312

Re: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths

Yes, the difference is mandatory pre-tax pension contribution for both of us. In addition, FSA medical of $2,600 for 2017, pre-tax medical insurance and pre-tax dental insurance. Thanks. With the pension deduction, and "only" $12K in Schedule C income, you could reach EIC eligibility and 33.06% mar...