Search found 4895 matches

by FiveK
Wed Jul 18, 2018 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard 2 factor authentication and Mint or Personal Capital
Replies: 14
Views: 13951

Re: Vanguard 2 factor authentication and Mint or Personal Capital

Has there been any change to this? I got an email from Vanguard saying soon I will absolutely have to have two factor authentication but I really like to see it in Mint. Anyway to make it work without manually updating it? We received some "you have to add another authentication layer by July 10" e...
by FiveK
Wed Jul 18, 2018 4:11 pm
Forum: Investing - Help with Personal Investments
Topic: Heresy: Is It Worth Converting tIRAs to Roth?
Replies: 41
Views: 3447

Re: Heresy: Is It Worth Converting tIRAs to Roth?

If you are attempting a quantitative guess at this, you might put your current and then expected retirement income numbers into the personal finance toolbox spreadsheet. That can show you your current and projected marginal tax rates for tIRA withdrawals. Marginal rates may or may not be the same as...
by FiveK
Wed Jul 18, 2018 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Phasing our Roth vs 401k
Replies: 10
Views: 711

Re: Phasing our Roth vs 401k

A single filer with an AGI that high would probably save 24% (plus whatever state tax rate) using a traditional 401k. Do you have good reason to expect that or higher rate when withdrawing? If not, traditional 401k should be better for you than Roth. As others have said, if there is any doubt about ...
by FiveK
Tue Jul 17, 2018 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Continue contributing to Roth or switch to Traditional?
Replies: 10
Views: 761

Re: Continue contributing to Roth or switch to Traditional?

N1CKV wrote:
Tue Jul 17, 2018 2:50 pm
the 12% bracket cap is $77,400, not $77,200.
True, but the 0%/15% change in QD/LTCG tax (as the law is currently written) is $77,200.
by FiveK
Tue Jul 17, 2018 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: Continue contributing to Roth or switch to Traditional?
Replies: 10
Views: 761

Re: Continue contributing to Roth or switch to Traditional?

SerenityBlue wrote:
Tue Jul 17, 2018 12:01 pm
I thought recharacterizing IRA contributions plus their gains was simple enough and not complicated at all. Is this inaccurate?
You are correct, not inaccurate.
by FiveK
Mon Jul 16, 2018 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Questions for my Parents
Replies: 19
Views: 1284

Re: Social Security Questions for my Parents

Seems time to cut expenses and put everything they can into traditional 401k/IRA plans. Given the very low retirement plan balance, they will likely pay a low marginal rate when it comes time to withdraw, so whatever they can save on taxes now is all to the good.
by FiveK
Mon Jul 16, 2018 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: Planning to invest, but where?
Replies: 4
Views: 341

Re: Planning to invest, but where?

See Investment Order for thoughts on this topic.
by FiveK
Mon Jul 16, 2018 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Questions for my Parents
Replies: 19
Views: 1284

Re: Social Security Questions for my Parents

LFKB wrote:
Mon Jul 16, 2018 5:58 pm
...they need the monthly cash and...Their income is a bit over $100k per year.
As JoeRetire implied, this seems an unusual combination, unless they have no other resources to draw from if they stopped working and deferred SS.

Might be useful to have a fuller picture of their finances.
by FiveK
Mon Jul 16, 2018 6:11 pm
Forum: Investing - Help with Personal Investments
Topic: flowchart from Kitces.com for backdoor roths
Replies: 4
Views: 981

Re: flowchart from Kitces.com for backdoor roths

Unfortunately the beginning is wrong or at least misleading. One may make a backdoor IRA contribution regardless of income. A direct Roth makes more sense if one is nowhere near the phaseout range, but there is nothing wrong with using the backdoor if one might be over the Roth MAGI limit, even if o...
by FiveK
Mon Jul 16, 2018 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Tax Hump vs. Tax Torpedo
Replies: 21
Views: 2275

Re: Social Security Tax Hump vs. Tax Torpedo

Chip wrote:
Mon Jul 16, 2018 10:57 am
...the additional tax will be no more than 85% multiplied by the marginal tax bracket multiplied by $1000.
Yes. Marginal tax rates depend on the specific type of income under study.
by FiveK
Mon Jul 16, 2018 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Continue contributing to Roth or switch to Traditional?
Replies: 10
Views: 761

Re: Continue contributing to Roth or switch to Traditional?

Filing Status: MFJ (wife has not worked in 2018 or plans to) Gross Income: $120,000 + $7,000(approx) bonus Approx Taxabale Interest/Dividends: $4,000 Planned Traditional 401k: $18,500 Planned HSA: $6,900 Based on the above, and assuming the $4K is split into $1K interest and $3K qualified dividends...
by FiveK
Sun Jul 15, 2018 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Property tax + deductions
Replies: 6
Views: 945

Re: Property tax + deductions

I am trying to better plan our savings for this year. Can someone shed some light on how deductions work with property taxes. Might be worth your time to put numbers into the "what if?" worksheets of TurboTax, TaxAct, etc. , or another tool such as the personal finance toolbox spreadsheet. Bad news...
by FiveK
Sun Jul 15, 2018 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Blowing off the dust - financial calculator
Replies: 6
Views: 910

Re: Blowing off the dust - financial calculator

However, I'm looking to see if there are any good resources that are specific to this financial calculator that you often use for saving & investment goals. Don't know about that financial calculator specifically, but the 'Misc. calcs' tab of the personal finance toolbox spreadsheet has the Excel f...
by FiveK
Sat Jul 14, 2018 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: After-tax Roth conversion question
Replies: 18
Views: 930

Re: After-tax Roth conversion question

BeckyfromBoston wrote:
Sat Jul 14, 2018 2:08 pm
Is what I wanted to do that unusual?
No.

The procedures outlined in the Bogleheads wiki have been around for a while.

Perhaps not "common" but also not "unusual". ;)
by FiveK
Sat Jul 14, 2018 10:15 am
Forum: Investing - Help with Personal Investments
Topic: After-tax Roth conversion question
Replies: 18
Views: 930

Re: After-tax Roth conversion question

BeckyfromBoston wrote:
Sat Jul 14, 2018 9:57 am
Thanks, FiveK. Do you agree that it sounds as if the plan administrator erred in including the untaxed earnings in the check they sent to Vanguard for the Roth?
Yes.

You might cite the IRS wording to them if they claim otherwise - good luck!
by FiveK
Sat Jul 14, 2018 9:50 am
Forum: Investing - Help with Personal Investments
Topic: After-tax Roth conversion question
Replies: 18
Views: 930

Re: After-tax Roth conversion question

was part of that 50K the GAINS you made on the after tax portion you contributed? IE you made 23K on your 27K investment? In which case yes this also goes to the rIRA. According to the IRS, Earnings associated with after-tax contributions are pretax amounts in your account. BeckyfromBoston, see Aft...
by FiveK
Fri Jul 13, 2018 12:16 am
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA Withdrawal and Tax Stategy
Replies: 4
Views: 432

Re: Traditional IRA Withdrawal and Tax Stategy

Are you planning to avoid a mortgage? It may be less expensive to take a mortgage rather than pay >30% of your tIRA in federal tax alone. E.g., if you have a $20K/yr pension and $20K/yr from SSDI, your tax rates on tIRA withdrawals are https://s8.postimg.cc/49hktrodh/screenshot_366.png The spikes ar...
by FiveK
Wed Jul 11, 2018 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Best Available 2018 tax estimator
Replies: 25
Views: 4498

Re: Best Available 2018 tax estimator

Do any of these 2018 tax estimators handle the 20% deduction/exclusion for self employment income? QBI Pass-through deduction in the case study spreadsheet mentions the addition of these calculations to that tool (aka the personal finance toolbox spreadsheet) a couple of weeks ago. It also mentions...
by FiveK
Tue Jul 10, 2018 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs Traditional 401k
Replies: 11
Views: 658

Re: Roth 401k vs Traditional 401k

I do not find the second comment necessarily incorrect, but it would be more to my liking if it was stated something like: " If in a lower marginal tax bracket in retirement, Millennials in particular stand to benefit from the tax-advantages of Roth IRAs, because the longer their contributions have...
by FiveK
Tue Jul 10, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Any new info on passthrough deductions for corp?
Replies: 5
Views: 548

Re: Any new info on passthrough deductions for corp?

QBI Pass-through deduction in the case study spreadsheet mentions the addition of these calculations to that tool a couple of weeks ago. It also mentions that much remains unclear for certain situations.
by FiveK
Tue Jul 10, 2018 10:25 am
Forum: Investing - Help with Personal Investments
Topic: AAPL and Tax-Gain Harvesting
Replies: 10
Views: 731

Re: AAPL and Tax-Gain Harvesting

For various reasons, my income this year will be low enough.... I recommend using Taxcaster to test out scenarios. Note that Taxcaster does not consider the saver's credit, which could be a consideration in this case. The "what if?" worksheets of TurboTax, TaxAct, etc. , or the personal finance too...
by FiveK
Mon Jul 09, 2018 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Does It Make Sense to Wait to Claim SocSec?
Replies: 62
Views: 6776

Re: Does It Make Sense to Wait to Claim SocSec?

...we may not be able to depict the situation in its entirety, and hence, cannot offer optimal advice on this topic. That would apply to most (all?) investment topics - we can't depict the future to a deterministic level. People can and do bring assumptions to the decision table. That people may br...
by FiveK
Mon Jul 09, 2018 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: AAPL and Tax-Gain Harvesting
Replies: 10
Views: 731

Re: AAPL and Tax-Gain Harvesting

If I were to sell $20K of AAPL would it be best to invest in a Target Date Fund within a Roth IRA up to the $5,500 limit and then use the remaining $14,500 to re-purchase in AAPL? Really need a good overview of your whole financial situation to go much further. Probably worth reading Investment Pla...
by FiveK
Mon Jul 09, 2018 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: AAPL and Tax-Gain Harvesting
Replies: 10
Views: 731

Re: AAPL and Tax-Gain Harvesting

I'm just uncertain about what would be the best move with these AAPL holdings, since all of my eggs are in that one basket. The true "best" move depends on knowledge of the future. Assuming lack thereof, the less risky (and possibly still the best) approach is to diversify. Selling all of the $10.3...
by FiveK
Mon Jul 09, 2018 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs pretax/457.
Replies: 6
Views: 362

Re: Roth vs pertax/457.

reebok, welcome to the forum. To simplify, let's ignore the non-gov 457 for now. A non-gov 457 may have its place, but it is significantly worse than a gov 457. The T vs. R choice really comes down to your (known) marginal rate when contributing now vs. your (estimated) marginal rate when withdrawin...
by FiveK
Sun Jul 08, 2018 8:32 pm
Forum: Investing - Help with Personal Investments
Topic: VGTSX in Traditional IRA-Convert to Roth?
Replies: 12
Views: 775

Re: VGTSX in Traditional IRA-Convert to Roth?

For converting $3000 in a tIRA to a Roth you probably don't need a tax calculator, just a knowledge of your marginal tax rate. You can look up your bracket rate in the tax tables if you can estimate your 2018 taxable income, but that's not necessarily the same as one's marginal tax rate . It might ...
by FiveK
Sat Jul 07, 2018 11:00 pm
Forum: Investing - Theory, News & General
Topic: Girls and investing
Replies: 115
Views: 5613

Re: Girls and investing

How old is too young for a [child] to start learning the basics of investing? 7 or 8, too young? As others have noted, - The sex of the child is irrelevant. We have both. - Learning to earn and not immediately spend should come first. - For a child's first "investment" beyond a savings account (e.g...
by FiveK
Sat Jul 07, 2018 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: VGTSX in Traditional IRA-Convert to Roth?
Replies: 12
Views: 775

Re: VGTSX in Traditional IRA-Convert to Roth?

coffeecup333 wrote:
Sat Jul 07, 2018 10:24 pm
Do you have any recommended calculators I can use?
The spreadsheet referenced in https://www.bogleheads.org/wiki/Tools_a ... ce_toolbox will show you a chart of your marginal tax rates for various scenarios, if you have even minimal familiarity with Excel.
by FiveK
Sat Jul 07, 2018 6:04 pm
Forum: Investing - Theory, News & General
Topic: Tradional IRA conversion to ROTH IRA taxable amount?
Replies: 32
Views: 1380

Re: Tradional IRA conversion to ROTH IRA taxable amount?

I found out how much I will owe if I convert the tIRA to Roth and thats what I came for. I will do MFJ in 2018! But the answer may be different filing jointly. It will depend still depend on your tax bracket which may be higher or lower than you filing MFS. Dee-89, if you look at the MFJ table in t...
by FiveK
Fri Jul 06, 2018 11:41 pm
Forum: Investing - Help with Personal Investments
Topic: Upping my retirement savings game
Replies: 11
Views: 2206

Re: Upping my retirement savings game

Similar thought to pkcrafter's: why Roth instead of traditional? Until you can be reasonably confident that your tax rate on traditional withdrawals will be as high as you would save now, traditional is usually preferable to Roth.
by FiveK
Fri Jul 06, 2018 4:30 pm
Forum: Investing - Theory, News & General
Topic: Tradional IRA conversion to ROTH IRA taxable amount?
Replies: 32
Views: 1380

Re: Tradional IRA conversion to ROTH IRA taxable amount?

If MFS with $70K and $30K incomes:
$4453.50 + 0.22 * ($70000 - $12000 - $38700) = $8699.50
$952.50 + 0.12 * ($30000 - $12000 - $9525) = $1,969.50
Total = $10,699

If MFJ:
$1905 + 0.12 * ($100000 - $24000 - $19050) = $8739

You pay almost $2000 MORE by filing MFS.
by FiveK
Fri Jul 06, 2018 2:55 pm
Forum: Investing - Theory, News & General
Topic: Tradional IRA conversion to ROTH IRA taxable amount?
Replies: 32
Views: 1380

Re: Tradional IRA conversion to ROTH IRA taxable amount?

Dee-89 wrote:
Fri Jul 06, 2018 2:36 pm
If I do file MFJ will I owe the IRS less for this roth conversion scenario?
That depends on your joint income.

Is your tax situation simple enough to calculate by hand (or with a few spreadsheet cells)?
by FiveK
Fri Jul 06, 2018 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Convert IRA to Roth tax due with no other taxable income
Replies: 3
Views: 573

Re: Convert IRA to Roth tax due with no other taxable income

You could look at the marginal rates for a wide range of conversion amount by putting your numbers into the spreadsheet referenced in https://www.bogleheads.org/wiki/Tools_a ... ce_toolbox.
by FiveK
Fri Jul 06, 2018 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: VGTSX in Traditional IRA-Convert to Roth?
Replies: 12
Views: 775

Re: VGTSX in Traditional IRA-Convert to Roth?

It might be better to roll the tIRA into your existing 401k (or similar) if available.

Based on your backdoor Roth comment, your marginal rate may be higher now than in retirement. If so, you would be worse off to convert now instead of after retirement.
by FiveK
Fri Jul 06, 2018 1:34 pm
Forum: Investing - Theory, News & General
Topic: Tradional IRA conversion to ROTH IRA taxable amount?
Replies: 32
Views: 1380

Re: Tradional IRA conversion to ROTH IRA taxable amount?

Probably ~twice what you would pay if MFJ, so you should have a more-than-compensating reason for MFS.

Based on https://www.forbes.com/sites/kellyphill ... 4dc66f3133, your numbers look correct.
by FiveK
Thu Jun 28, 2018 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16479

Re: IRS publishes draft 2018 1040 - Huge changes made

I realize that I have to make many changes for 2018 but not much more than simply updating the tax brackets and standard deduction. FWIW, both https://sites.google.com/site/excel1040/home/2018-tax-planner-new-tax-law and the personal finance toolbox spreadsheets have been updated for 2018. The latt...
by FiveK
Thu Jun 28, 2018 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16479

Re: IRS publishes draft 2018 1040 - Huge changes made

Presumably the refundable part of the Child Tax Credit will appear on Schedule 5 at some point. As it hasn't even been assigned a line number yet (as far as I could tell), it appears we'll have to wait a while for specific instructions on the (Refundable) Child Tax Credit in 2018 . It looks like it...
by FiveK
Wed Jun 27, 2018 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16479

Re: IRS publishes draft 2018 1040 - Huge changes made

Stinky wrote:
Wed Jun 27, 2018 10:05 pm
I flat understand my taxes, which enables me to plan more effectively.
Forewarned is forearmed. Good for you! One of these days your kids may grow to your level. ;)
by FiveK
Wed Jun 27, 2018 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16479

Re: IRS publishes draft 2018 1040 - Huge changes made

Presumably the refundable part of the Child Tax Credit will appear on Schedule 5 at some point.

As it hasn't even been assigned a line number yet (as far as I could tell), it appears we'll have to wait a while for specific instructions on the (Refundable) Child Tax Credit in 2018.
by FiveK
Wed Jun 27, 2018 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: High yield and tax-free munis
Replies: 23
Views: 2399

Re: High yield and tax-free munis

logat2 wrote:
Tue Jun 26, 2018 10:59 am
...given federal , state, FICA + local taxes equate to about 45%.
FICA tax does not apply to bond interest, in case that 7.65% makes a difference.
by FiveK
Tue Jun 26, 2018 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: Roth or Traditional 401k with recent grad
Replies: 15
Views: 915

Re: Roth or Traditional 401k with recent grad

I actually was using the Personal Finance Toolbox to model the scenarios. Incredibly helpful, just hope everything is accurate on it. ... Per the Toolbox, it appears Illinois state tax is not progressive, so the Traditional 401k has an added benefit since she's taxed on the first dollar. The federa...
by FiveK
Tue Jun 26, 2018 3:14 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 550
Views: 35755

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Whether it's a good idea to so lock in (and to what extent) is, of course, a separate issue and depends on individual circumstances. Yes indeed! The conclusions one reaches do - or at least should ;) - depend on the assumptions one makes. The vast majority of the article appears well done. One poin...
by FiveK
Tue Jun 26, 2018 1:35 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 550
Views: 35755

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

$40,000 of income with $30,000 coming from Social Security does not put a Single in 22% marginal rate. True, but $30K coming from SS plus income from other sources (e.g., tIRA withdrawal) puts the marginal rate on the other income as shown in the chart. $30K from SS plus $10K from other income does...
by FiveK
Tue Jun 26, 2018 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Help! converting traditional IRA in order to Back Door ROTH
Replies: 5
Views: 371

Re: Help! converting traditional IRA in order to Back Door ROTH

1) Roll over her Schwab Traditional IRA to her 401k 4) Open a new traditional IRA...and contribute $5500 for 2018. 6) Perform conversion from traditional IRA to Roth IRA 7) Success! What remains above is all you need do (in addition to Form 8606, with which I assume you are already familiar). Anyth...
by FiveK
Tue Jun 26, 2018 11:43 am
Forum: Investing - Help with Personal Investments
Topic: 401k/Roth 401K split
Replies: 13
Views: 1110

Re: 401k/Roth 401K split

My question if I act on it would change to 9k Trad 401k, 9.5k Roth 401k, and 5k in my Roth, and 5k in my wife's Roth. From the article another user posted it suggest that i should do this since I am maxing out my 401k. Maxing out your retirement accounts is not a sufficient reason to use Roth inste...
by FiveK
Tue Jun 26, 2018 9:02 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 550
Views: 35755

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

My typo.. yes I meant $40k What I am trying to say is that after $38,700 (tax brackets for 2018), your marginal rate goes to 22%. If plan to reach this marginal rate on retirement via SS and traditional. The rest, I wanted via Roth Yes, that makes sense. I think you are using your examples with mar...