Search found 10006 matches

by FiveK
Tue Sep 29, 2020 1:29 am
Forum: Personal Investments
Topic: University of California employee, how to max out mega backdoor?
Replies: 14
Views: 1041

Re: University of California employee, how to max out mega backdoor?

So theoretically, the taxpayer could adjust the withholding to be 0 for the first 3 quarters, and then raise the withholding in the last quarter. If 0.9 * current year tax - withholding < 1k, the taxpayer do not need to file form 2210, and do not own penalty for underpayment. Close. It's either 90%...
by FiveK
Tue Sep 29, 2020 12:38 am
Forum: Investing - Theory, News & General
Topic: three fund vs four funds and bonds
Replies: 10
Views: 739

Re: three fund vs four funds and bonds

1. Three, for simplicity. I'm assuming foreign bonds is your fourth? 2. Asset allocation is a personal thing. "Appropriate" allocations depend on various things, with age only one of them. You might consider what Asset allocation suggestion calculator suggests for you. On the face of it, 90/10 is n...
by FiveK
Tue Sep 29, 2020 12:23 am
Forum: Personal Investments
Topic: Calculating Net-of-Fees Return
Replies: 3
Views: 270

Re: Calculating Net-of-Fees Return

If you 1) set start-of-year (SOY) to $10,000 2) calculate the end-of-year without fees (EOY) as 1.05 * SOY 3) calculate fees as 0.22% * (SOY + EOY) / 2 4) subtract fees from EOY 5) set SOY for next year to the result of step 4 6) go back to step 2, etc. 7) add the fees for each year ...it matches wh...
by FiveK
Mon Sep 28, 2020 11:43 pm
Forum: Personal Investments
Topic: University of California employee, how to max out mega backdoor?
Replies: 14
Views: 1041

Re: University of California employee, how to max out mega backdoor?

Thanks for the link, very interesting discussion! I was thinking to set 0 withholding and pay estimated tax so that the paycheck going to the after-tax account is maximized. I have no intention to evade the tax liability, and I am willing to pay the estimated tax in the first day of each quarter. B...
by FiveK
Mon Sep 28, 2020 11:29 pm
Forum: Personal Investments
Topic: Maximizing retirement deferral and 401k Roth conversion
Replies: 3
Views: 248

Re: Maximizing retirement deferral and 401k Roth conversion

I feel a Roth is always better. Never say always. ;) I am ~40 and lets say have 24 more years to retire. Lets say money compounds at 9% and hence 8 years to double (rule of 72). SO if everything stays the same, then current traditional 40,000 401k (in old account) will grow to 320,000. If retiremen...
by FiveK
Mon Sep 28, 2020 11:24 pm
Forum: Personal Investments
Topic: rollover rollercoaster
Replies: 2
Views: 305

Re: rollover rollercoaster

2) I talked this through with a well-informed fidelity consultant and he suggested I should consider converting some of the 700K to roth ira annually now to reduce future tax sticker shock. Is this something I should consider before turning 59.5 years old for conversion ladder? Favorable timing of ...
by FiveK
Mon Sep 28, 2020 11:20 pm
Forum: Personal Investments
Topic: How does taxation for HSAs work in reitrement for non-medical expenses?
Replies: 3
Views: 461

Re: How does taxation for HSAs work in reitrement for non-medical expenses?

index2max wrote: Mon Sep 28, 2020 10:00 pm I believe my employer said an HSA distribution in retirement would count towards FICA-taxable income. Where can I confirm that officially?
Nowhere that I know of, because it is not true.
by FiveK
Mon Sep 28, 2020 9:20 pm
Forum: Personal Investments
Topic: Should I switch from 401k to Roth 401k
Replies: 6
Views: 567

Re: Should I switch from 401k to Roth 401k

I’m wondering if it makes sense for me to stop putting money in the 401(k) and start putting it in a Roth 401(k). To understand what is likely best now, one must estimate one's after-retirement marginal tax rate . Then see the rest of that wiki article for more on your choice for this and subsequen...
by FiveK
Mon Sep 28, 2020 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: Help with Backdoor Roth Conversion
Replies: 13
Views: 491

Re: Help with Backdoor Roth Conversion

Based on this quote from Can I Buy An Annuity With My IRA or 401k? — ImmediateAnnuities.com , So really buying an annuity with IRA money is the same as moving your money from its current IRA or 401k trustee to another IRA trustee. it appears the money is still "in an IRA" and that makes the pro-rata...
by FiveK
Mon Sep 28, 2020 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Help with Backdoor Roth Conversion
Replies: 13
Views: 491

Re: Help with Backdoor Roth Conversion

gasdoc wrote: Mon Sep 28, 2020 7:33 pm If I were to transfer the taxable amount to a 401K, does the annuity purchased with IRA money play any role? Thanks.
Is the annuity still within the IRA?
by FiveK
Mon Sep 28, 2020 8:21 pm
Forum: Personal Finance (Not Investing)
Topic: Help with Backdoor Roth Conversion
Replies: 13
Views: 491

Re: Help with Backdoor Roth Conversion

I knew someone that just decided to forget about the basis in their traditional IRA because they just decided it was not worth tracking it. Look at your conversion this year. It sounds like the pro rata non deductible portion will be about $25. So, you will save about $5-$10 in taxes ...this year. ...
by FiveK
Mon Sep 28, 2020 8:08 pm
Forum: Personal Investments
Topic: Investing order
Replies: 10
Views: 687

Re: Investing order

401k's require age 59.5 age for non penalty withdrawals. 403b has a provision where there is no penalty if you separate from your employer after age 55. 401k also follows the "Rule of 55". See Topic No. 558 Additional Tax on Early Distributions from Retirement Plans Other than IRAs | Internal Reven...
by FiveK
Mon Sep 28, 2020 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Help with Backdoor Roth Conversion
Replies: 13
Views: 491

Re: Help with Backdoor Roth Conversion

Does this complicate my returns going forward by leaving a mix of pre and post tax money in the IRA, or is this a 2020 year problem only? Thanks. If in a future year you have no - nondeductible contributions to a traditional IRA - distributions (including Roth conversions) from traditional IRAs whi...
by FiveK
Mon Sep 28, 2020 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional vs Roth - Is this a factor?
Replies: 4
Views: 445

Re: Traditional vs Roth - Is this a factor?

$tar-Lord wrote: Mon Sep 28, 2020 3:43 pm However, are the government's taxation results the same?
No, but as JoMoney and David Jay commented, who cares?

Using "amount of tax paid" as a guide is the second of two Common misconceptions in this arena.
by FiveK
Mon Sep 28, 2020 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: Help with Backdoor Roth Conversion
Replies: 13
Views: 491

Re: Help with Backdoor Roth Conversion

Is it relevant that there were no other IRA funds at the time of the backdoor Roth done earlier this year, or does it only matter that there are IRA funds at the end of the year? What do I do now???? Thank you in advance! Fill a draft Form 8606 for what you expect to file. It's doable by hand, or s...
by FiveK
Mon Sep 28, 2020 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Rollover (pre-tax tIRA to 401k) - But $3 of post-tax $ left in tIRA
Replies: 8
Views: 240

Re: Reverse Rollover (pre-tax tIRA to 401k) - But $3 of post-tax $ left in tIRA

...it looks like there might have been a $.90 dividend on December 31, 2019 in the account around the time of my 2019 traditional IRA contribution and rollover to Roth IRA. I believe I technically would have paid taxes on that $.90 dividend when I paid my 2019 taxes? If by "in the account" you mean...
by FiveK
Mon Sep 28, 2020 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Rollover (pre-tax tIRA to 401k) - But $3 of post-tax $ left in tIRA
Replies: 8
Views: 240

Re: Reverse Rollover (pre-tax tIRA to 401k) - But $3 of post-tax $ left in tIRA

The $3 is not after-tax: you have never paid tax on that money, because it "appeared" within the traditional IRA.

You may certify "all pre-tax" with a clear conscience.
by FiveK
Mon Sep 28, 2020 3:29 am
Forum: Personal Investments
Topic: University of California employee, how to max out mega backdoor?
Replies: 14
Views: 1041

Re: UC Employee, how to max out mega backdoor?

phantom0308 wrote: Mon Sep 28, 2020 3:14 am The converted amount might be treated as income, raising the max amount you can contribute.
Good try, but IRA contributions must be supported by "compensation": money you earn from working. See What Is Compensation? - IRS publicatons 590-A.
by FiveK
Mon Sep 28, 2020 12:01 am
Forum: Personal Consumer Issues
Topic: What type of accountant / lawyer for investigating $ exploitation of an elder?
Replies: 13
Views: 1174

Re: What type of accountant / lawyer for investigating $ exploitation of an elder?

Another part of me thinks it'd require more advanced financial forensics than I've got. Like, I think it'd be challenging to even know which financial institutions to query for records, and the types of paperwork they'd need to verify the request. Searching for an Elder law attorney in her area mig...
by FiveK
Sun Sep 27, 2020 11:29 pm
Forum: Personal Finance (Not Investing)
Topic: Cashing a check made to a non existent estate
Replies: 8
Views: 985

Re: Cashing a check made to a non existent estate

Condolences to you.

You might explain the bank's intransigence to the property manager and ask for a replacement check made out to you (perhaps with "refund for decedent Mrs. H00d" on the memo line).
by FiveK
Sun Sep 27, 2020 11:24 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Planning - Mid 40s
Replies: 31
Views: 3170

Re: Retirement Planning - Mid 40s

Dennisl wrote: Sun Sep 27, 2020 9:43 pm You’ll be penalized when u touch your 401k early.
See How to withdraw funds from your IRA and 401k without penalty before age 59.5.
by FiveK
Sun Sep 27, 2020 11:14 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Planning - Mid 40s
Replies: 31
Views: 3170

Re: Retirement Planning - Mid 40s

(1): are we in a position to retire? meaning if we both stop working, will the savings we have sustain us for next 40 years( assuming lifespan of 80 ). If we live beyond 80, assume we rely only on SS. (2): If answer to #1 is NO then when is the next milestone - meaning what should be our savings ta...
by FiveK
Sun Sep 27, 2020 3:49 pm
Forum: Personal Investments
Topic: IRA or taxable (or other?)
Replies: 9
Views: 526

Re: IRA or taxable (or other?)

Very helpful responses, thank you all. Forgot to add that I have access to a deferred compensation plan through my employer. I got access to it last year and did not contribute. It’s an annual process, and we have to elect to contribute or not during a certain window (and that election stays in pla...
by FiveK
Sun Sep 27, 2020 3:42 pm
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 30
Views: 1859

Re: Updated: Personal Finance Advice for New PhD

If I am expected to be at a higher tax bracket when I retire, does it still make sense to contribute enough to the 403(b) or 457 to drop down to the 12% tax bracket now? Thanks! Depends to some extent on the definition of "when". In other words, do you mean "leading up to" or "after" retirement? Se...
by FiveK
Sun Sep 27, 2020 2:20 pm
Forum: Personal Investments
Topic: IRA or taxable (or other?)
Replies: 9
Views: 526

Re: IRA or taxable (or other?)

playtothebeat wrote: Sun Sep 27, 2020 11:41 am Trying to determine the appropriate “bucket” to invest in, IRA vs taxable (vs something else?).
Investment Order and Prioritizing investments have some suggestions.
by FiveK
Sun Sep 27, 2020 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Adding attachment to TurboTax e file?
Replies: 7
Views: 517

Re: Adding attachment to TurboTax e file?

Internet searches for
efile "attach a statement"
suggest some professional-grade software allows this, but not personal versions of TurboTax, TaxSlayer, etc. Don't know why.
by FiveK
Sat Sep 26, 2020 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: From Mega Corp to LLC
Replies: 2
Views: 357

Re: From Mega Corp to LLC

Good luck!

Solo 401(k) plan - Bogleheads is one consideration.
by FiveK
Sat Sep 26, 2020 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Would you pay off a 1.5% school loan
Replies: 27
Views: 1922

Re: Would you pay off a 1.5% school loan

EnjoyIt wrote: Sat Sep 26, 2020 4:47 pm ...school loans at 1.5%
...2.75% mortgage.
Short answer to the thread title: no.

Longer answer: if you want to pay off any debt, paying the 2.75% mortgage makes more sense - and even that depends on your expected bond returns when answering the "invest vs. pay debt" question.
by FiveK
Sat Sep 26, 2020 4:34 pm
Forum: Personal Investments
Topic: VTSAX & VFIAX dividend distributions timing
Replies: 6
Views: 1207

Re: VTSAX & VFIAX dividend distributions timing

Note that for the most part Vanguard has not posted the timing for December distributions, and says A new schedule for December dividend distributions will be posted in the future.

You could use the pdf in Vanguard - Estimated 2019 year-end distributions for a reasonable guess on timing.
by FiveK
Sat Sep 26, 2020 1:50 pm
Forum: Investing - Theory, News & General
Topic: Were you nervous when you retired?
Replies: 77
Views: 6259

Re: Were you nervous when you retired?

Because finances themselves are not an issue in your case: to the extent you think your job defines you and you like that definition, you should stay with the job. To the extent your self-image is not tied to your job, you should leave. Good luck!
by FiveK
Sat Sep 26, 2020 1:44 pm
Forum: Investing - Theory, News & General
Topic: three fund vs four funds and bonds
Replies: 10
Views: 739

Re: three fund vs four funds and bonds

1. Three, for simplicity. I'm assuming foreign bonds is your fourth? 2. Asset allocation is a personal thing. "Appropriate" allocations depend on various things, with age only one of them. You might consider what Asset allocation suggestion calculator suggests for you. On the face of it, 90/10 is no...
by FiveK
Sat Sep 26, 2020 1:16 pm
Forum: Personal Consumer Issues
Topic: Excel 2019 instructions
Replies: 12
Views: 972

Re: Excel 2019 instructions

2. I would like to be able to review my financial skills through be able to evaluate the results of certain actins I have taken such as rebalancing my portfolio. In that case, see Rebalancing Spreadsheets for some examples. See also Tools and calculators - Bogleheads and search for "spreadsheet" to...
by FiveK
Fri Sep 25, 2020 6:27 pm
Forum: Personal Investments
Topic: Spousal Roth IRA - Backdoor
Replies: 11
Views: 442

Re: Spousal Roth IRA - Backdoor

Be sure that neither of you has money in any traditional IRA (including SEP IRA and SIMPLE IRA). I have my previous company's 401K money (9000 dollars) rolled over to a traditional IRA account (at millennium trust company). I was planning to move these funds to a traditional IRA account in Vanguard...
by FiveK
Fri Sep 25, 2020 3:43 pm
Forum: Personal Investments
Topic: Spousal Roth IRA - Backdoor
Replies: 11
Views: 442

Re: Spousal Roth IRA - Backdoor

The following also works - My wife opens a traditional IRA account. - She opens a Roth IRA account. - She transfers money, from whatever account she has access to, to the traditional IRA account. - She converts the money in traditional IRA account to Roth IRA account. - Then we invest. That way you ...
by FiveK
Fri Sep 25, 2020 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: What happens if your income comes in below the minimum for the ACA?
Replies: 70
Views: 5009

Re: What happens if your income comes in below the minimum for the ACA?

Tax Calculator With ACA Health Insurance Subsidy seems a good article about how to use the personal finance toolbox for analysis. AFAIK it handles all the MAGI, SS benefit taxation, and federal Premium Tax Credit calculations correctly. Depending on, among other things, whether one over- or under-e...
by FiveK
Thu Sep 24, 2020 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 964
Views: 310808

Re: Retiree Portfolio Model

renega wrote: Thu Sep 24, 2020 9:41 pm Thanks for the comments. I'll play with RPM some more. I don't know why the images didn't display inline. I could right click on the image icon and open into a new tab to display it.
Posting images in the Bogleheads forum - Bogleheads might be useful.
by FiveK
Thu Sep 24, 2020 8:36 pm
Forum: Personal Investments
Topic: What paperwork to retain to prove IRA/401K contributions was within annual legal limits?
Replies: 5
Views: 729

Re: What paperwork to retain to prove IRA/401K contributions was within annual legal limits?

userwithconcern wrote: Thu Sep 24, 2020 7:56 pm Is there something similar to form 5498 for 401(k) plans?
A W-2, showing 401k contributions using code D in box 12.

The W-2 box 1 amount, if documenting wages for that year, will be accepted as proof of earned income to support the ability to make an IRA contribution at all.
by FiveK
Thu Sep 24, 2020 6:37 pm
Forum: Investing - Theory, News & General
Topic: CARES withdrawal
Replies: 9
Views: 794

Re: CARES withdrawal

retireIn2020 wrote: Thu Sep 24, 2020 6:03 pm What are the drawbacks?
1. Non-bill money is now in taxable instead of tax-advantaged.
2. You may owe tax for the "privilege" of having moved money from tax-advantaged to taxable.
by FiveK
Thu Sep 24, 2020 4:31 pm
Forum: Investing - Theory, News & General
Topic: Valuing access to workplace retirement space
Replies: 20
Views: 828

Re: Valuing access to workplace retirement space

blastoff wrote: Thu Sep 24, 2020 3:48 pm Ah- makes sense. Let me double check my math. May have not accounted for basis change.
The Formula for dividend tax drag? thread wanders into the weeds in places, but might be useful.
by FiveK
Thu Sep 24, 2020 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: What happens if your income comes in below the minimum for the ACA?
Replies: 70
Views: 5009

Re: What happens if your income comes in below the minimum for the ACA?

FIREchief wrote: Thu Sep 24, 2020 4:19 pm At Fidelity, with my Spec ID accounts, I identify exactly which tax lots to sell. Isn't this the same at VG (or is this yet another thing that they screw up)?
Vanguard allows SpecID: Vanguard cost basis information: Know your options | Vanguard.
by FiveK
Thu Sep 24, 2020 3:08 pm
Forum: Investing - Theory, News & General
Topic: Valuing access to workplace retirement space
Replies: 20
Views: 828

Re: Valuing access to workplace retirement space

blastoff wrote: Thu Sep 24, 2020 2:58 pm I realize there is no right answer, but amount was higher than I thought so wanted to double check my "work" with people here.
It's a number, and it's defensible.

The question now becomes "what does the school administration think is the correct number?" - good luck with that!
by FiveK
Thu Sep 24, 2020 2:15 pm
Forum: Investing - Theory, News & General
Topic: Valuing access to workplace retirement space
Replies: 20
Views: 828

Re: Valuing access to workplace retirement space

Thanks. I did not know about that spreadsheet! I mostly use it as a double check on our own home-grown tax spreadsheet, but it does have other bells and whistles such as this. For thinking about this, I kind of like comparing to Roth accounts just for the sake of simplicity. ... In general, I'm OK ...
by FiveK
Thu Sep 24, 2020 2:04 pm
Forum: Personal Consumer Issues
Topic: Excel 2019 instructions
Replies: 12
Views: 972

Re: Excel 2020 instructions

kaneohe wrote: Thu Sep 24, 2020 11:27 am Only when I started working on a problem I was actually interested in did I start to make progress.
+1

mucho dinero, do you have an example description of what you would like to do?
by FiveK
Thu Sep 24, 2020 2:01 pm
Forum: Investing - Theory, News & General
Topic: Valuing access to workplace retirement space
Replies: 20
Views: 828

Re: Valuing access to workplace retirement space

Using rows 131-147 on the personal finance toolbox "Misc. calcs' tab for taxable growth suggests $137,185 after 30 years, and $128,241 after 29. The straightforward $19.5K * (1 + i)^n calculations for i = 0.075 and n = 30 and 29 gives $170,722 and $158,811 respectively. Differences of $33,536 for 30...
by FiveK
Thu Sep 24, 2020 1:48 pm
Forum: Investing - Theory, News & General
Topic: Valuing access to workplace retirement space
Replies: 20
Views: 828

Re: Valuing access to workplace retirement space

Any state and local tax involved? States generally treat qualified dividends and capital gains as ordinary income.
by FiveK
Thu Sep 24, 2020 1:43 pm
Forum: Personal Investments
Topic: How do I rollover a ROTH 401k?
Replies: 3
Views: 238

Re: How do I rollover a ROTH 401k?

Does Vanguard hold the Roth 401k?

If so, it may be doable electronically.

If not, a check sent from the 401k broker to Vanguard "For the Benefit Of" (FBO) your husband may be needed.

Usually best to start with the receiving broker (Vanguard in this case) and have it lead the process.