Search found 5363 matches

by FiveK
Tue Sep 25, 2018 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: Be sure to check your tax estimates for 2018
Replies: 18
Views: 1662

Re: Be sure to check your tax estimates for 2018

Does the IRS website have an online tax calculator for 2018, or did you use the tax tables? The 2018 Withholding Calculator site has to have some tax calculations embedded, but it doesn't provide details. For estimating 2018 taxes, the "what if?" worksheets of TurboTax, TaxAct, etc. may be the most...
by FiveK
Tue Sep 25, 2018 1:54 pm
Forum: Investing - Theory, News & General
Topic: Digging deeper on advisability of Roth Conversions
Replies: 31
Views: 2119

Re: Digging deeper on advisability of Roth Conversions

All the above is dangerous speculation.... I believe said speculation is correct. Perhaps you should speculate on today's lottery numbers? :) What about the spike on the graph at about $16,000? Looks like some sort of cliff threshold was passed. Anybody (FiveK?) know what that is about? Saver's cre...
by FiveK
Tue Sep 25, 2018 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: Early mortgage payoff- a hoax?
Replies: 11
Views: 983

Re: Early mortgage payoff- a hoax?

And if you want to delve into the math behind calculating the monthly payment that exactly pays the mortgage in the specified time, see Derivation of Mortgage Loan Payment Formula.
by FiveK
Tue Sep 25, 2018 1:18 pm
Forum: Investing - Theory, News & General
Topic: Digging deeper on advisability of Roth Conversions
Replies: 31
Views: 2119

Re: Digging deeper on advisability of Roth Conversions

I used to think I understood taxes pretty well, now I'm entering a whole new realm, that I think I should have entered 5 years ago. So now that you see the numbers, do you have any advice? Thanks Off the top of my head: a) Don't bother with SEP/tIRA contributions. Put $6500 each into Roth IRAs. b) ...
by FiveK
Tue Sep 25, 2018 12:43 pm
Forum: Investing - Theory, News & General
Topic: Digging deeper on advisability of Roth Conversions
Replies: 31
Views: 2119

Re: Digging deeper on advisability of Roth Conversions

Note, this was when I was contributing to an IRA and SEP plus doing* Roth conversion. Cells B48 and C48 include SEP and IRA contribution. D47 is my deductible Health insurance premium. Self employed, no W2 income. Ah, the 20% QBI deduction! The ~12% for the $77K tIRA withdrawal is not a simple "12%...
by FiveK
Tue Sep 25, 2018 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Estimated Federal Income Tax Payment
Replies: 7
Views: 721

Re: Estimated Federal Income Tax Payment

Our previous CPA advised us to mail the estimates instead of paying online. Just print out the estimated tax payment vouchers, fill it out and include your check. Send it certified mail to the appropriate address for your state. That part is easy... understanding what you actually owe, I found that...
by FiveK
Tue Sep 25, 2018 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Estimated Federal Income Tax Payment
Replies: 7
Views: 721

Re: Estimated Federal Income Tax Payment

blueman457 wrote:
Tue Sep 25, 2018 9:10 am
My state is a flat income tax (based off of federal taxable income), so I think I should be ok?
Depends on how much non-W2 income. A quick state tax estimate may allow you to change the question mark to a period.
by FiveK
Tue Sep 25, 2018 10:16 am
Forum: Investing - Theory, News & General
Topic: Digging deeper on advisability of Roth Conversions
Replies: 31
Views: 2119

Re: Digging deeper on advisability of Roth Conversions

I'm juggling income numbers in CSS, https://drive.google.com/file/d/0B45krBaG0b6KTWZDeXEySVBHVXc/view?usp=sharing I've estimated my income, interest and dividends for 2018 and calculated I will owe $834 in Federal Income tax. Then I add a $77,000 IRA distribution for the Roth Conversion, my taxes g...
by FiveK
Mon Sep 24, 2018 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Returns - Multiple states and tax exempt interest
Replies: 2
Views: 164

Re: Tax Returns - Multiple states and tax exempt interest

oaks wrote:
Mon Sep 24, 2018 7:26 pm
What do you do?
Include interest income in the return for the state of residency.

For non-resident returns, do not include that income under the "income applicable to state of return" columns.

Can't say that is an exhaustively researched approach, but it's what we do.
by FiveK
Mon Sep 24, 2018 5:09 pm
Forum: Investing - Theory, News & General
Topic: Digging deeper on advisability of Roth Conversions
Replies: 31
Views: 2119

Re: Digging deeper on advisability of Roth Conversions

I'm pretty much convinced that Roth Conversions are financially advisable when you expect your marginal tax rate to be the same or lower when you withdraw the money vs when you convert the money. retiredjg already noted "lower" vs "higher". I have done the math paying taxes out of the conversion mo...
by FiveK
Sun Sep 23, 2018 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for advice on whether to participate in Deferred Compensation Plan
Replies: 12
Views: 1180

Re: Looking for advice on whether to participate in Deferred Compensation Plan

How good are the investment choices in the DCP plan? Frankly, not sure as the products can't be researched. Are they Collective Investment Trusts (CITs)? If so, they may be as good as an index fund covering the same investments, e.g., a CIT covering the S&P 500. Do you know the expense ratios? As W...
by FiveK
Sun Sep 23, 2018 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Traditional?
Replies: 21
Views: 1312

Re: Roth 401k or Traditional?

...the saver's credit is nonrefundable; it is essentially impossible to get the full benefit. Uncommon, but possible without too much contortion. Easiest example is HOH with one CTC-eligible dependent making $30,500. Tax = $1050, saver's credit = $1000 (max for one person), non-refundable CTC = $50...
by FiveK
Sun Sep 23, 2018 11:21 am
Forum: Personal Finance (Not Investing)
Topic: I'm just itching to tax-GAIN harvest
Replies: 7
Views: 1188

Re: I'm just itching to tax-GAIN harvest

I know I can do a Roth conversion, but I'm not crazy about paying the taxes on the conversion. Or I suppose I could take the capital gain and plow the money back into my taxable account, thus increasing my cost basis... Any of y'all facing the same conumdrum? If you expect to pay a higher marginal ...
by FiveK
Sun Sep 23, 2018 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question - NY K1
Replies: 5
Views: 379

Re: Tax Question - NY K1

If by NJ 1040R you mean NJ-1040NR, you should not be using that form as a NJ resident.

As a NJ resident you will include the K1 income on your NJ-1040 return.
by FiveK
Sun Sep 23, 2018 11:08 am
Forum: Investing - Help with Personal Investments
Topic: Fund my traditional rollover or open a new roth? Am I on a good path to retirement?
Replies: 9
Views: 521

Re: Fund my traditional rollover or open a new roth? Am I on a good path to retirement?

cburg86, welcome to the forum. My question is should I start to contribute post tax dollars to my traditional IRA or open a new roth IRA? If you are eligible to make a direct Roth contribution you should do so. ...more difficult than I thought in terms of trying to paint an overall picture without o...
by FiveK
Sun Sep 23, 2018 2:34 am
Forum: Personal Finance (Not Investing)
Topic: 2018 UTMA tax gain harvesting
Replies: 12
Views: 1125

Re: 2018 UTMA tax gain harvesting

So, from what I see, if the unearned income is greater than $2100, then the 0% cap gains rate applies to the first $2600, but not on top of the $2100. So, the end result would be 0% tax on $2600 in long term cap gain, but not on $4700, as has been stated earlier. I hope I am wrong, but if so, I'd l...
by FiveK
Sun Sep 23, 2018 1:31 am
Forum: Personal Finance (Not Investing)
Topic: 2018 UTMA tax gain harvesting
Replies: 12
Views: 1125

Re: 2018 UTMA tax gain harvesting

davel316 wrote:
Sat Sep 22, 2018 11:07 pm
But line 4 is the amount of income from the 1040, which would appear to be the full amount of the unearned income.
Line 4 of 8615 is the taxable income from 1040, so you would deduct $1050 (in the case of no earned income) from the full amount of the unearned income.
by FiveK
Sun Sep 23, 2018 12:54 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs Traditional IRA
Replies: 11
Views: 866

Re: Roth vs Traditional IRA

Oh! sorry--I'm thinking the 2017 rate--it is 24% in 2018--I am paying only federal tax--my state has no tax. Thank you! That makes the answer to the title question easy: you make too much to deduct a tIRA, so use a Roth IRA. See 2018 IRA Contribution and Deduction Limits If You ARE Covered by a Ret...
by FiveK
Sat Sep 22, 2018 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs Traditional IRA
Replies: 11
Views: 866

Re: Roth vs Traditional IRA

winter5 wrote:
Sat Sep 22, 2018 9:53 pm
My marginal tax rate is currently 25%.
Is that federal+state+local? There is no federal 25% rate in 2018.
by FiveK
Sat Sep 22, 2018 10:19 pm
Forum: Investing - Help with Personal Investments
Topic: Which do I pick? Roth 401(k) or Traditional 401(k)?
Replies: 36
Views: 2528

Re: Which do I pick? Roth 401(k) or Traditional 401(k)?

My options are posted below. Based on that - should I up my contributions to the 401 or find better investments in my Roth IRA? Your 401k options are practically the same as what you can get in a Roth IRA. That eliminates the "401k vs. IRA" question (because either is good) and gets you back to "tr...
by FiveK
Sat Sep 22, 2018 9:18 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs Traditional IRA
Replies: 11
Views: 866

Re: Roth vs Traditional IRA

winter5 wrote:
Sat Sep 22, 2018 8:59 pm
So, in my assumption, my income will be likely lower than what I have now.
That implies a traditional account will work better for you. Do you have a reason to believe otherwise?
by FiveK
Sat Sep 22, 2018 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth IRA Tax Strategy (Post Retirement)
Replies: 27
Views: 1627

Re: TSP to Roth IRA Tax Strategy (Post Retirement)

Also, the essential version doesn't ask for the cost basis of non-retirement accounts so the taxes calculated can't be right. Perhaps Cost Basis of the After-tax Account Initial Balance is what you seek? Yes but that doesn't exist in the essential I-ORP. It's only in the extended I-ORP. That affect...
by FiveK
Sat Sep 22, 2018 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth IRA Tax Strategy (Post Retirement)
Replies: 27
Views: 1627

Re: TSP to Roth IRA Tax Strategy (Post Retirement)

geobrick wrote:
Sat Sep 22, 2018 12:55 pm
I know this is a taxable event (at the marginal tax rate) but since I'm not 59.5 yet, is it subject to an early withdrawal penalty?
No. Roth conversions are not subject to penalty regardless of age.
by FiveK
Sat Sep 22, 2018 3:08 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth IRA Tax Strategy (Post Retirement)
Replies: 27
Views: 1627

Re: TSP to Roth IRA Tax Strategy (Post Retirement)

Also, the essential version doesn't ask for the cost basis of non-retirement accounts so the taxes calculated can't be right. Perhaps Cost Basis of the After-tax Account Initial Balance is what you seek? Good point about NIIT. I should have no problem keeping my income below the MAGI threshold of $...
by FiveK
Fri Sep 21, 2018 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Fed Taxes Withholding Options
Replies: 1
Views: 277

Re: 2018 Fed Taxes Withholding Options

You'll be fine if you meet any of the safe harbor rules . 1. Owe less than $1,000 in tax for 2018, after subtracting your withholding and refundable credits. 2. Your withholding plus your refundable credits is greater than the smaller of: a) 90% of the tax to be shown on your 2018 tax return, or b) ...
by FiveK
Fri Sep 21, 2018 7:39 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional TSP and Roth TSP
Replies: 16
Views: 1445

Re: Traditional TSP and Roth TSP

Yes, we are both guessing because we don't know what his retirement income will be. But let's say he is making $90k now and is married filing jointly. His marginal rate would be 12%. What if he doesn't retire until after the tax brackets reset in about seven years? He could have just $60k in retire...
by FiveK
Fri Sep 21, 2018 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Traditional?
Replies: 21
Views: 1312

Re: Roth 401k or Traditional?

The 2018 forms are not finalized yet. Here is the draft: https://www.irs.gov/pub/irs-dft/f1040s8--dft.pdf https://www.irs.gov/pub/irs-dft/i1040s8--dft.pdf Thanks! Hadn't seen those for the "additional child tax credit" yet. Can you reach further into your bag of tricks and produce the draft forms f...
by FiveK
Fri Sep 21, 2018 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth IRA Tax Strategy (Post Retirement)
Replies: 27
Views: 1627

Re: TSP to Roth IRA Tax Strategy (Post Retirement)

Can the i-ORP show a comparison between following their recomended transfers vs not doing it? I'd like to see a big improvement before risking such a big move. I need to start looking at I-ORP threads. Yes. Use the "Essential ORP" version and it won't do any Roth conversions. In the extended ORP yo...
by FiveK
Fri Sep 21, 2018 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Traditional TSP and Roth TSP
Replies: 16
Views: 1445

Re: Traditional TSP and Roth TSP

...if you feel like you are behind in your retirement savings maxing out in a Roth will give you more later.... A lot depends on the tax bracket you are in now and the one you will be in when you retire. . If so, traditional is a better choice now. Likely, but if your goal is to amass as much as po...
by FiveK
Fri Sep 21, 2018 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Mechanics of IRA Rollover w/ Tax Basis into Employer Plan
Replies: 14
Views: 744

Re: Mechanics of IRA Rollover w/ Tax Basis into Employer Plan

Follow-up question: [/b]Why is the term "Rollover IRA" a trigger for potentially not accepting it? I believe that Alan was saying to make sure that the 401(k) admin knows that it is NOT a rollover IRA. Why would you want the 401K admin to believe it was NOT a rollover IRA if you were trying to get ...
by FiveK
Fri Sep 21, 2018 12:37 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Traditional?
Replies: 21
Views: 1312

Re: Roth 401k or Traditional?

billfromct wrote:
Fri Sep 21, 2018 12:06 am
...can you verify (IRS wise) that the Saver's Credit is calculated on a maximum of $2,000 (single) or $4,000 (married filing jointly) contribution figure?
Yes, that is correct. See line 6 of Form 8880.
by FiveK
Fri Sep 21, 2018 12:29 am
Forum: Investing - Help with Personal Investments
Topic: Contributing to a Roth IRA, Roth 401(k), and 401(k)
Replies: 1
Views: 245

Re: Contributing to a Roth IRA, Roth 401(k), and 401(k)

EPCOTCenter1982 wrote:
Fri Sep 21, 2018 12:09 am
Am I still able to max out the Roth IRA or is there anything about either of my 401(k)s that would prevent this?
If you meet the Roth IRA contribution limits, nothing about a 401k is relevant.
by FiveK
Thu Sep 20, 2018 10:50 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional TSP and Roth TSP
Replies: 16
Views: 1445

Re: Traditional TSP and Roth TSP

Grabiner's point is that if you live in Florida you should contribute to Roth TSP, because you are not paying state taxes on the contributions. Perhaps he meant "work in Florida...makes the Roth TSP more attractive" than it would be in a state with income tax , not more attractive than a traditiona...
by FiveK
Thu Sep 20, 2018 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional TSP and Roth TSP
Replies: 16
Views: 1445

Re: Traditional TSP and Roth TSP

...if you feel like you are behind in your retirement savings maxing out in a Roth will give you more later.... A lot depends on the tax bracket you are in now and the one you will be in when you retire. Someone "behind in...retirement savings" would likely be in lower tax bracket in retirement. If...
by FiveK
Thu Sep 20, 2018 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying SS? How Long It Will Take for It to Pay Off?
Replies: 53
Views: 5081

Re: Delaying SS? How Long It Will Take for It to Pay Off?

As remomnyc says above, "Breakevens depends on what rates you use ". The 80.3 [1] you cite assumes a 0% real discount rate . . . . What does "rate" or "real discount rate" mean in calculating the break even point? It is "r" in the formula shown in Net Present Value (NPV) Definition . In other words...
by FiveK
Thu Sep 20, 2018 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes+Health Insurance (Recent Marriage, Baby OTW)
Replies: 27
Views: 1521

Re: Taxes+Health Insurance (Recent Marriage, Baby OTW)

I just checked with my benefits administrator. If I change to the HDHP plan during this current enrollment period, my HDHP coverage will start October 1, 2018. I still have $ in my FSA for 2018, which I'm planning on depleting. How does this affect my HSA eligibility and contributions? It makes you...
by FiveK
Thu Sep 20, 2018 11:51 am
Forum: Investing - Help with Personal Investments
Topic: Question on 401k After-Tax Conversion vs Savings
Replies: 6
Views: 311

Re: Question on 401k After-Tax Conversion vs Savings

changingtimes wrote:
Thu Sep 20, 2018 11:03 am
My question is, would you max your after-tax 401k contributions (and then do the in-service conversion to Roth) if it meant dipping into your savings or your taxable account to "replace" that paycheck money?
Yes, assuming I wouldn't be dipping so far to worry about bouncing checks.
by FiveK
Thu Sep 20, 2018 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA
Replies: 8
Views: 1025

Re: Backdoor Roth IRA

I was finally able to work with Fidelity and my company get the 2k+ from my Rollover IRA to my employer 401k. However, there is 32 cents remaining in my Rollover IRA Settlement fund. I wanted to use this account to do a backdoor Roth IRA contribution. What do I do with the 32 cents? Do I go ahead a...
by FiveK
Thu Sep 20, 2018 3:18 am
Forum: Investing - Help with Personal Investments
Topic: Traditional TSP and Roth TSP
Replies: 16
Views: 1445

Re: Traditional TSP and Roth TSP

See Traditional versus Roth - Bogleheads.

Neither is inherently better than the other. If in doubt, traditional is better for most.

See also Investment Order, which should support 3504PIR's comments about a well funded retirement.
by FiveK
Wed Sep 19, 2018 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA
Replies: 20
Views: 1770

Re: Setting up Backdoor Roth IRA, can't figure out where to stuff IRA

DanEmmy wrote:
Wed Sep 19, 2018 7:25 pm
So far so good?
Yes indeed. Good luck!
by FiveK
Wed Sep 19, 2018 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Social Security vs. pre-tax savings
Replies: 6
Views: 596

Re: Social Security vs. pre-tax savings

Since he is 5-10 years away from retirement and our finances are getting better each year, I have been playing with numbers to determine how much should go into his deferred comp plan and his 403(b). I had not been thinking about the affect this would have on the numbers the SSA would be getting. H...
by FiveK
Tue Sep 18, 2018 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: Mechanics of IRA Rollover w/ Tax Basis into Employer Plan
Replies: 14
Views: 744

Re: Mechanics of IRA Rollover w/ Tax Basis into Employer Plan

Is there any requirement to notify either the employer or the 401k/403b financial provider and make them aware of any of this beyond it being a 'partial' rollover? (my specific employer is generally 'nervous' about and until very recently unwilling to allow rollovers. I really don't want to give th...
by FiveK
Tue Sep 18, 2018 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Mechanics of IRA Rollover w/ Tax Basis into Employer Plan
Replies: 14
Views: 744

Re: Mechanics of IRA Rollover w/ Tax Basis into Employer Plan

Is the above scenario correct? Use the ratio established on Form 8606 years ago and roll that % of an IRA to an employer plan and the remaining % is left for tax free conversion to Roth IRA? Close but not quite. It's not the ratio established on Form 8606 years ago, it's the basis established on Fo...
by FiveK
Tue Sep 18, 2018 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Help w/ Backdoor Roth IRA tax forms
Replies: 6
Views: 553

Re: Help w/ Backdoor Roth IRA tax forms

Thanks everyone for the advice. Here's what I plan to file: - file Form 8606 for for 2014. This will set my basis to 5500 - Since in 2016, I converted a total of $12091 of TIRA into Roth; file 8606 claiming a $11000 basis (5500 from 2014 and 5500 from 2016). Result: $1091 on the growth are taxable....
by FiveK
Tue Sep 18, 2018 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying SS? How Long It Will Take for It to Pay Off?
Replies: 53
Views: 5081

Re: Delaying SS? How Long It Will Take for It to Pay Off?

For every year past 62 that you delay taking Social Security, your benefits increase 8% per year. Can you guarantee that your investments will provide the same return? While various reasons to delay taking SS are cogent, comparing an annual benefit increase to an investment return is apples vs. ora...
by FiveK
Tue Sep 18, 2018 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Rollover tax question.
Replies: 5
Views: 269

Re: 401K Rollover tax question.

So if I contribute the full rollover amount minus the witholding, but contribute more than the witheld amount, it wont effect the credit. I was thinking that, wanted to make sure. You would have to contribute at least $2000 more than the withholding to have the same maximum possible saver's credit....
by FiveK
Tue Sep 18, 2018 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Rollover tax question.
Replies: 5
Views: 269

Re: 401K Rollover tax question.

My question is this, Will this effect the savers credit that I claim, since it will be a distribution? or will just the amount of tax witheld from it be considered a distribution? Just the amount withheld, but you may pay a 10% penalty on that. See How to roll over a 401(k): What to do with an old ...
by FiveK
Tue Sep 18, 2018 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Taxes+Health Insurance (Recent Marriage, Baby OTW)
Replies: 27
Views: 1521

Re: Taxes+Health Insurance (Recent Marriage, Baby OTW)

When the baby is born (sometime in feb, or could even be late jan), would I be eligible for the qualifying event enrollment? Ask the insurance provider. At which point I'd change to the family-HDHP (me+child). Family coverage would begin 3/1/2019? How does this affect my contribution limit? See Pub...
by FiveK
Tue Sep 18, 2018 11:31 am
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth IRA Tax Strategy (Post Retirement)
Replies: 27
Views: 1627

Re: TSP to Roth IRA Tax Strategy (Post Retirement)

I'm also wondering whether we should focus on effective tax rates vs the marginal tax rates. For example, if with deductions, the federal effective tax is only 10% and transferring $20,000 in a year results in the overall effective rate moving up to 12.5% should we consider that effective rate attr...