Search found 2879 matches

by FiveK
Mon Oct 23, 2017 12:32 am
Forum: Investing - Help with Personal Investments
Topic: 2 in Daycare -Sell Taxable to Max 401k?
Replies: 23
Views: 1348

Re: 2 in Daycare -Sell Taxable to Max 401k?

We max out IRAs (11k) every year and for last several years have maxed out work 401k contributions (36k) annually. ... Tax Rate: 25% Federal, 5.75% State Just checking: if you are maxing (and deducting) traditional IRAs then your MAGI must be less than $99K. Standard deduction and 4 exemptions woul...
by FiveK
Mon Oct 23, 2017 12:21 am
Forum: Investing - Help with Personal Investments
Topic: 2 in Daycare -Sell Taxable to Max 401k?
Replies: 23
Views: 1348

Re: 2 in Daycare -Sell Taxable to Max 401k?

MotoTrojan wrote:
Sun Oct 22, 2017 11:41 pm
Sell your lowest cost basis shares, ideally shares at s loss.
Good idea, assuming "highest cost basis relative to current price" is what is meant.
by FiveK
Mon Oct 23, 2017 12:15 am
Forum: Investing - Theory, News & General
Topic: Isn't a Roth IRA and Backdoor Roth Equally Advantageous?
Replies: 6
Views: 701

Re: Isn't a Roth IRA and Backdoor Roth Equally Advantageous?

A similar guideline in the MMM forum has

4. Max Traditional IRA or Roth (or backdoor Roth) based on income level
5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5)
by FiveK
Sun Oct 22, 2017 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH OR IRA
Replies: 10
Views: 635

Re: ROTH OR IRA

Let's say I am invested in STAR fund in traditional IRA, now If I want to invest in ROTH in the same fund, can I do so and they will keep track of what was invested through ROTH and what was invested through traditional or I will need to open separate STAR ROTH IRA? You need separate accounts: one ...
by FiveK
Sun Oct 22, 2017 12:39 pm
Forum: Investing - Help with Personal Investments
Topic: Help! - New Believer and overwhelmed
Replies: 19
Views: 1861

Re: HALP! - New Believer and overwhelmed

She keeps enough tax withholding to cover her taxes (Fed only - FL has no state income tax) and always gets a refund. She itemizes deductions (25 to 30k) so she is paying tax on a lower AGI. I noticed the savings drain last year and bumped her IRA withdrawal since the RMD table Fidelity uses (Unifo...
by FiveK
Sun Oct 22, 2017 2:10 am
Forum: Investing - Help with Personal Investments
Topic: Help! - New Believer and overwhelmed
Replies: 19
Views: 1861

Re: HALP! - New Believer and overwhelmed

Income: $64,000 Social Security - $20,000 IRA Distr - $38,000 Div - $6,000 ... Taxes 10% AGI (10% withheld from SS & IRA dist) Assuming standard deduction (probably not true but...) raises a couple of questions: 1. Is that withholding enough, or does she pay a penalty due to under-withholding? Tax ...
by FiveK
Sun Oct 22, 2017 1:32 am
Forum: Investing - Help with Personal Investments
Topic: TSP advice sought
Replies: 18
Views: 1280

Re: TSP advice sought

I suggest that he only make enough traditional contributions to bring his AGI below the Saver's Credit 50% cliff (2017 = $18,500). This will ensure he pays no income tax. He should make all the rest of his contributions as Roth contributions, since any further tax-deferred contributions will not re...
by FiveK
Sun Oct 22, 2017 1:15 am
Forum: Investing - Help with Personal Investments
Topic: ROTH OR IRA
Replies: 10
Views: 635

Re: ROTH OR IRA

Given two scenarios 1. lower tax bracket 2. No state- tax ... If that be a case, wouldn't it be better to choose traditional IRA over ROTH? Yes, if by "lower tax bracket" you mean "lower marginal tax rate." Either lower federal or state rates may make this true. If you have a pension, or have accum...
by FiveK
Sun Oct 22, 2017 1:05 am
Forum: Investing - Theory, News & General
Topic: Calculator - pretax vs aftertax plans
Replies: 8
Views: 447

Re: Calculator - pretax vs aftertax plans

I am looking for a calculator. Given a starting contribution tax bracket and a withdrawal tax bracket, I want to determine how long before using after tax dollars gives a better return than using pretax dollars. If you are talking small contribution amounts (e.g., $1000) the answer is "immediately"...
by FiveK
Sat Oct 21, 2017 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Funds Help (27 years old)
Replies: 14
Views: 757

Re: 401k Funds Help (27 years old)

I should add that I am also single, annual gross income approximately $70k, and still have roughly $10k worth of student loans to repay. With $70K income, you could put $18K into a 401k and $3650 into a tIRA (saving 25% federal tax on the $21650 total) and $1850 into a Roth IRA. Federal income and ...
by FiveK
Sat Oct 21, 2017 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Funds Help (27 years old)
Replies: 14
Views: 757

Re: 401k Funds Help (27 years old)

Daedalus, welcome to the forum.

VFINX could work well.

See Asset allocation - Bogleheads and Three-fund portfolio - Bogleheads for more thoughts. E.g., if you want international stock exposure you could do so in the IRA while using VFINX in the 401k.
by FiveK
Sat Oct 21, 2017 7:48 pm
Forum: Personal Finance (Not Investing)
Topic: Can I retire early?
Replies: 9
Views: 2214

Re: Can I retire early?

Monkeyseeanddo wrote:
Sat Oct 21, 2017 5:12 pm
Does this seem doable with a basic lifestyle?
In short, yes.

Do you have the option to delay your pension start in return for a higher annual amount when you do start?

If so, that could allow you to reduce your tax bite from traditional to Roth conversions significantly.
by FiveK
Sat Oct 21, 2017 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: HRA vs HSA - Simulation
Replies: 2
Views: 322

Re: HRA vs HSA - Simulation

The 'HDHP Analysis' tab in the Personal_finance_toolbox might be useful.
by FiveK
Fri Oct 20, 2017 11:53 pm
Forum: Personal Finance (Not Investing)
Topic: Help Me Think About Roth Conversions and Retirement?
Replies: 17
Views: 1690

Re: Help Me Think About Roth Conversions and Retirement?

An online tax calculator will get the tax correct, but will just display the inappropriate tax bracket table rate. You will need to get your real marginal rate via incrementing. e.g., https://www.hrblock.com/get-answers/tax-calculators.html#/en/te/aboutYou. JW ps: There are also a series of 5 or 6 ...
by FiveK
Thu Oct 19, 2017 10:14 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on 403b vs 457b plan?
Replies: 2
Views: 259

Re: Advice on 403b vs 457b plan?

Should I fund the Roth IRA first? And then set up either the 457b or the 403b? Traditional vs. Roth IRA- any idea which is better? (I have no idea what my tax bracket will be when I retire, I imagine it will be lower?) +1 to krow36's comments. See also Investment Order for general thoughts on what ...
by FiveK
Thu Oct 19, 2017 9:07 pm
Forum: Investing - Help with Personal Investments
Topic: 403B to IRA to Roth IRA in lower income year.
Replies: 7
Views: 619

Re: 403B to IRA to Roth IRA in lower income year.

Dolcetto wrote:
Thu Oct 19, 2017 8:33 pm
I completed the rollover/conversion.
That's the important part - well done!
by FiveK
Thu Oct 19, 2017 6:54 pm
Forum: Investing - Help with Personal Investments
Topic: Roth TSP Question
Replies: 7
Views: 670

Re: Roth TSP Question

Are Roth TSP withdrawals subject to RMD's? Easy one first: yes. Now that my wife has left the workforce and I'm not a Grade 12 CSA, I'm in the 15% Bracket. ... I like the tax deduction, but looking ahead the Roth coming out tax free really looks good to me. What do all of you advise? Taking a look ...
by FiveK
Wed Oct 18, 2017 10:03 pm
Forum: Investing - Help with Personal Investments
Topic: Deciding between Roth TSP and Trad TSP
Replies: 26
Views: 1473

Re: Deciding between Roth TSP and Trad TSP

It's the rate at which the dollars are actually taxed. Agreed. For this purpose, marginal tax rate is the tax rate that will apply to the next marginal – or incremental – amount of income (or deductions). It is calculated by dividing the amount of additional taxes that will be due (or reduced) by t...
by FiveK
Wed Oct 18, 2017 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: Deciding between Roth TSP and Trad TSP
Replies: 26
Views: 1473

Re: Deciding between Roth TSP and Trad TSP

It's not your marginal tax rate in retirement you should be comparing with. If savings are your only income, much of that income will be taxed below your marginal rate. Part of the savings income may be taxed at the 15% rate, compared to paying taxes on all of the contribution at 25% to Roth, today...
by FiveK
Wed Oct 18, 2017 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: Deciding between Roth TSP and Trad TSP
Replies: 26
Views: 1473

Re: Deciding between Roth TSP and Trad TSP

Many BH end up converting deferred contributions into Roth accounts during years of lower income. This is especially the case if you have a pension and social security. Unfortunately this isn't an option with the TSP. One may roll over the TSP to an IRA and then convert to a Roth IRA. The investmen...
by FiveK
Tue Oct 17, 2017 11:30 pm
Forum: Investing - Help with Personal Investments
Topic: Deciding between Roth TSP and Trad TSP
Replies: 26
Views: 1473

Re: Deciding between Roth TSP and Trad TSP

...will have a pension and retire in the 25% marginal tax bracket. As PFInterest implied, that is not yet guaranteed. If you are "certain" that your pension alone will have you paying 25%, then with 25 years to go Roth is better for you whether you are paying 25% or 28% now. See Maxing out your ret...
by FiveK
Tue Oct 17, 2017 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 46
Views: 5217

Re: Tax Bracket in Retirement

Don't tax brackets generally rise with inflation? If so, then doing it all on a real basis should give you apples to apples. I think the social security benefits numbers are real, although I'm not 100% sure. I do understand the bracket for taxes on social security do not increase with inflation. Yes.
by FiveK
Tue Oct 17, 2017 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 46
Views: 5217

Re: Tax Bracket in Retirement

I'd really like to figure out how to run the "what-if" scenarios on the spreadsheet, I'll take another look at it. I've used it enough to answer most(?) questions. #Cruncher seems to understand it well also. Detailed questions may be better asked in the MMM forum. See ~rows 15-33 on the 'Instructio...
by FiveK
Tue Oct 17, 2017 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Basic HSA question
Replies: 8
Views: 643

Re: Basic HSA question

As long as you do not have a gap of more than eighteen months in which you have $0 in an HSA account, that first date remains the HSA establishment date. From where does the 18 months come? It doesn't appear to be in 2016 Publication 969 - p969.pdf or 26 U.S. Code § 223 - Health savings accounts | ...
by FiveK
Tue Oct 17, 2017 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Basic HSA question
Replies: 8
Views: 643

Re: Basic HSA question

As long as you do not have a gap of more than eighteen months in which you have $0 in an HSA account, that first date remains the HSA establishment date. From where does the 18 months come? It doesn't appear to be in 2016 Publication 969 - p969.pdf or 26 U.S. Code § 223 - Health savings accounts | ...
by FiveK
Tue Oct 17, 2017 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Basic HSA question
Replies: 8
Views: 643

Re: Basic HSA question

I have $67 in an ancient HSA account. I have lost the ATM card, and really just want to be done with it. Can it be as simple as finding a receipt (copay or prescription) that adds up to $67, 'filing it' in my file, and paying myself $67 from the HSA account? Yes, if you - didn't use that amount for...
by FiveK
Mon Oct 16, 2017 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 136
Views: 21257

Re: 30,000 in Checking Account

One difference may be, I only have to keep 1,000 in my cash account at my current provider Optum, while Optum Bank may be 2,000 minimum in the cash account. Optum Bank might have a monthly fee if you have your cash balance under 3,000 as well Would the extra 1,000 dollars to invest overcome the ER?...
by FiveK
Mon Oct 16, 2017 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 46
Views: 5217

Re: Tax Bracket in Retirement

Honestly, no. I'm trying, but these tax concepts are kind of difficult for me to grasp..... :confused That's reasonable. Let's try to build up. 1. The starting point for all this is the commutative property of multiplication as applied to t vs. R: Traditional = Original_amount * Growth * (1 - withd...
by FiveK
Mon Oct 16, 2017 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 46
Views: 5217

Re: Tax Bracket in Retirement

I suppose I'm confusing terms. If my income touches the 33% bracket I was supposing the "cumulative" or "effective" tax rate would be in the upper 20's. ... So, I wonder if its a matter of finding the right mix of Traditional contributions to keep the marginal rate under 30% and putting the rest in...
by FiveK
Mon Oct 16, 2017 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 46
Views: 5217

Re: Tax Bracket in Retirement

I suppose I'm confusing terms. If my income touches the 33% bracket I was supposing the "cumulative" or "effective" tax rate would be in the upper 20's. ... So, I wonder if its a matter of finding the right mix of Traditional contributions to keep the marginal rate under 30% and putting the rest in...
by FiveK
Mon Oct 16, 2017 1:13 am
Forum: Personal Finance (Not Investing)
Topic: Health Insurance: HDHP vs PPO with 2 small kids
Replies: 7
Views: 557

Re: Health Insurance: HDHP vs PPO with 2 small kids

B. I am wondering if the savings are worth the sticker shock of the doctor visits till the deductible is met. In our experience, yes. YMMV. See also the 'HDHP Analysis' tab in Tools and calculators - Personal_finance_toolbox - Bogleheads to help quantify the tax advantage, etc. I plugged in my numb...
by FiveK
Mon Oct 16, 2017 12:34 am
Forum: Personal Finance (Not Investing)
Topic: Health Insurance: HDHP vs PPO with 2 small kids
Replies: 7
Views: 557

Re: Health Insurance: HDHP vs PPO with 2 small kids

Alto Astral wrote:
Sun Oct 15, 2017 8:52 pm
B. I am wondering if the savings are worth the sticker shock of the doctor visits till the deductible is met.
In our experience, yes. YMMV.

See also the 'HDHP Analysis' tab in Tools and calculators - Personal_finance_toolbox - Bogleheads to help quantify the tax advantage, etc.
by FiveK
Mon Oct 16, 2017 12:22 am
Forum: Investing - Help with Personal Investments
Topic: Roth Convert: To the max of your likely future bracket or the one just below?
Replies: 5
Views: 748

Re: Roth Convert: To the max of your likely future bracket or the one just below?

Ron Scott wrote:
Sun Oct 15, 2017 10:16 pm
For those of you who are converting this year or plan to Roth convert what is your strategy?
If you can pay the taxes from cash on hand, converting even at the same marginal rate is favorable because in effect you are converting both traditional and taxable funds into the Roth account.
by FiveK
Sun Oct 15, 2017 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 136
Views: 21257

Re: 30,000 in Checking Account

spammagnet wrote:
Sun Oct 15, 2017 10:58 pm
As the OP didn't know his bracket, even learning only that is helpful.
Yes indeed. Walk before run. :sharebeer
by FiveK
Sun Oct 15, 2017 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 46
Views: 5217

Re: Tax Bracket in Retirement

I expect in the next 2 years I'll start to touch the 33% bracket indefinitely and have an average marginal rate of the upper 20s for about 31 years. If you are in the 33% bracket, your marginal rate will be at least 33% and likely more. E.g., MFJ, one earner with two young teens, never pays a 33% m...
by FiveK
Sun Oct 15, 2017 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 136
Views: 21257

Re: 30,000 in Checking Account

Look up your annual salary in the IRS tables linked below to find your marginal federal tax rate. taxfoundation.org - 2017-tax-brackets Note that a tax bracket is not necessarily the same as a marginal tax rate . The description of the link is from the Tax Foundation page title. My suggestion was f...
by FiveK
Sun Oct 15, 2017 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating Taxes
Replies: 8
Views: 722

Re: Estimating Taxes

Thank you, I will check out the spreadsheet. I created one myself, but I don't have 100% confidence in my Excel skills or my full understanding of the tax laws! If you are in AMT territory it gets awfully complicated. I would at least check it against the on-line tax calculators. JW Agree. Thats wh...
by FiveK
Sun Oct 15, 2017 7:35 pm
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 136
Views: 21257

Re: 30,000 in Checking Account

spammagnet wrote:
Sun Oct 15, 2017 7:12 pm
Look up your annual salary in the IRS tables linked below to find your marginal federal tax rate.
taxfoundation.org - 2017-tax-brackets
Note that a tax bracket is not necessarily the same as a marginal tax rate.
by FiveK
Sun Oct 15, 2017 7:33 pm
Forum: Investing - Help with Personal Investments
Topic: 30,000 in Checking Account
Replies: 136
Views: 21257

Re: 30,000 in Checking Account

GridironGems wrote:
Sun Oct 15, 2017 6:54 pm
I assume you all agree I'm doing the right thing by getting into Vanguard choice funds with .04 ER compared to .45 correct?
That is a very safe assumption. :happy
by FiveK
Sun Oct 15, 2017 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: Taxes and withdrawal strategy in retirement
Replies: 7
Views: 1239

Re: Taxes and withdrawal strategy in retirement

See discussion and comments regarding www.i-orp.com in both links already given.
by FiveK
Sun Oct 15, 2017 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating Taxes
Replies: 8
Views: 722

Re: Estimating Taxes

I would like to run some scenario's for my 2018 taxes. I usually end up paying a small amount of AMT. I have some stock options that I need to exercise before 12/31/18 and want to know their impact if I exercise them (or part of them) this year vs. next year. What software or maybe a spreadsheet so...
by FiveK
Sun Oct 15, 2017 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Social Security - Maximizing a couples benefits
Replies: 35
Views: 2784

Re: Social Security - Maximizing a couples benefits

See Tools_and_calculators#Social_Security and links therein for several programs that will calculate a strategy for maximize benefits - depending on your inputs for life expectancy, etc.
by FiveK
Sun Oct 15, 2017 10:23 am
Forum: Investing - Help with Personal Investments
Topic: Do any apps or tools do this in place of spreadsheets?
Replies: 13
Views: 1233

Re: Do any apps or tools do this in place of spreadsheets?

CaliJim wrote:
Sat Oct 14, 2017 8:43 pm
Quicken Premium
+1

Although, I do tend to use Excel as the primary tool for determining the tax consequences of selling various lots of Megacorp acquired over many years. Always nice when Excel, Quicken, and Fidelity agree on the transaction numbers.
by FiveK
Sun Oct 15, 2017 10:17 am
Forum: Investing - Help with Personal Investments
Topic: Help me optimize my portfolio
Replies: 5
Views: 374

Re: Help me optimize my portfolio

I thought I'd share my portfolio with you guys in an effort to optimize! rolly1, welcome to the forum. When you say "optimize" what do you mean? Note that nobody can tell you in advance what the best performing funds will be. Kneejerk reaction is that you have too many funds/stocks, but as others h...
by FiveK
Sun Oct 15, 2017 9:33 am
Forum: Personal Finance (Not Investing)
Topic: [HSA vs. PPO (Preferred Provider Organization) - which to select?]
Replies: 3
Views: 266

Re: [HSA vs. PPO (Preferred Provider Organization) - which to select?]

OregonKate, welcome to the forum. Can't tell for sure, but you might be missing that the insurance premiums are not included in the Out-of-pocket maximum . You can compare your specific HDHP vs. non-HDHP situation using various internet tools. E.g., the 'HDHP Analysis' tab in Tools and calculators -...
by FiveK
Sat Oct 14, 2017 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Prioritizing among tax-advantaged accounts
Replies: 7
Views: 712

Re: Prioritizing among tax-advantaged accounts

See Investment Order and Prioritizing investments - Bogleheads for suggestions.

Those links will reinforce comments already made about the HSA and 529.
by FiveK
Sat Oct 14, 2017 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: Can I fund my dad's taxable account?
Replies: 10
Views: 964

Re: Can I fund my dad's taxable account?

Thank you. Do I have to fill out some kind of form or do I just link my bank account to his Vanguard account? He's not good with computers so I'm pretty much doing everything for him. In that case, if he wishes, doing a financial power of attorney as dbr suggested seems wise. Also, if he opens a jo...
by FiveK
Sat Oct 14, 2017 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Projecting Tax Liability - Assistance Required
Replies: 5
Views: 353

Re: Projecting Tax Liability - Assistance Required

Underpayment penalties occur if you pay less than 90% of what you owe, and less than 100% or 110%, depending on income, of last year's tax bill. +1 to that whole post. HardHitter, note in particular that if this year's withholding will be 110% or more of last year's tax (the 110% assumes last year'...