Search found 38025 matches

by retiredjg
Tue Nov 12, 2019 10:05 am
Forum: Personal Investments
Topic: Investing $140k in cash at 1k per week
Replies: 93
Views: 4420

Re: Investing $140k in cash at 1k per week

And there is no way to justify lump sum over DCA unless you looked into the future and found out that the stock market keeps rising up and there is no market crash in the near term. Actually there is a way to justify lump sum over DCA - studies have shown it works about better more often than not. ...
by retiredjg
Tue Nov 12, 2019 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Months Leading up to Retirement
Replies: 9
Views: 594

Re: Months Leading up to Retirement

Why would you need final medical and dental checkups?... Maybe so (s)he might get any necessary work done while still under the employer's medical and dental insurance? Yes, for this. You are a federal employee and in an earlier thread you said that your health care will continue in retirement (whi...
by retiredjg
Tue Nov 12, 2019 9:36 am
Forum: Personal Investments
Topic: Dilemma: After-tax 401K to Roth IRA, limited allocation for all 401K "types".
Replies: 18
Views: 928

Re: Dilemma: After-tax 401K to Roth IRA, limited allocation for all 401K "types".

Generally, once the money has been converted to Roth 401k, it is subject to the same withdrawal rules as money that was directly contributed to the Roth 401k, and no longer subject to non-Roth after-tax withdrawal rules. That usually means the money is "stuck" in the plan until separation of servic...
by retiredjg
Tue Nov 12, 2019 8:58 am
Forum: Investing - Theory, News & General
Topic: Order or distributions on Roth IRA
Replies: 21
Views: 1485

Re: Order or distributions on Roth IRA

A rollover IRA is a type of traditional IRA. If you rollover a 401k to an IRA, the new IRA is named a "rollover IRA" by your custodian - to indicate where the money came from. In the past, a 401k could only accept a rollover from a rollover IRA (conduit IRA). Some companies still do it that way. You...
by retiredjg
Tue Nov 12, 2019 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Months Leading up to Retirement
Replies: 9
Views: 594

Re: Months Leading up to Retirement

Why would you need final medical and dental checkups?

Just before my retirement I took a look at my TSP and realized it was invested at something like 90% stocks. Just dumb, but I got lucky. So check your investments.
by retiredjg
Tue Nov 12, 2019 8:25 am
Forum: Personal Investments
Topic: Asset allocation in Triditional 401k
Replies: 5
Views: 259

Re: Asset allocation in Triditional 401k

scooter101 wrote:
Mon Nov 11, 2019 10:58 pm
3. Vanguard Total Bond Market Index Fund Admiral Shares
VBTLX Exp ratio .05
No brainer in my opinion.

Total bond market is low cost and highly diversified. Contains some of most everything.
by retiredjg
Tue Nov 12, 2019 8:17 am
Forum: Personal Investments
Topic: Extra contributions to 401k ?? has anyone heard of this
Replies: 6
Views: 865

Re: Extra contributions to 401k ?? has anyone heard of this

let's hope discrimination testing has already been addressed isnt an issue as the employer is quite large and this would be a nightmare - lots of people and lots of $$ Discrimination testing is still in the picture (even in a safe harbor plan) and sometimes it has to be addressed (but the plan is r...
by retiredjg
Mon Nov 11, 2019 7:06 pm
Forum: Personal Investments
Topic: Investing $140k in cash at 1k per week
Replies: 93
Views: 4420

Re: Investing $140k in cash at 1k per week

Ok, looks like most recommended 12 months for DCA instead of 2.5 years. Is there a clear reason why 12 months is better?
Anything less than 2.5 years is better.
by retiredjg
Mon Nov 11, 2019 3:09 pm
Forum: Personal Investments
Topic: IRA Distribution and 403b contribution same year
Replies: 4
Views: 166

Re: IRA Distribution and 403b contribution same year

Taking money out and putting money in the 403 is allowed but would make little sense if there were not match. Since you do have a match, I'd contribute enough to get the match but no more.
by retiredjg
Mon Nov 11, 2019 2:46 pm
Forum: Personal Investments
Topic: Investing $140k in cash at 1k per week
Replies: 93
Views: 4420

Re: Investing $140k in cash at 1k per week

This is market timing. It might work. It might not. No way to know. But what we do know is that most of your money will be sitting on the sidelines for months. This is usually not a good practice. Investing $140k should take about 2.5 minutes, not 2.5 years. If you simply cannot do it at one time, i...
by retiredjg
Mon Nov 11, 2019 10:10 am
Forum: Personal Investments
Topic: mega backdoor roth gone wrong
Replies: 16
Views: 1651

Re: mega backdoor roth gone wrong

dangling wrote:
Mon Nov 11, 2019 2:45 am
Understood... so rolling after-tax-401k into Roth 401k is an OK option.
Yes.

And when the 2 years is up, I think you can roll that out to Roth IRA. The law allows it. I don't think the plan can prevent it (but I don't know for sure).
by retiredjg
Mon Nov 11, 2019 8:56 am
Forum: Personal Investments
Topic: roth ira in 403b
Replies: 14
Views: 511

Re: roth ira in 403b

Good luck! :happy
by retiredjg
Mon Nov 11, 2019 8:48 am
Forum: Personal Investments
Topic: Asset Allocation for larger portfolio
Replies: 29
Views: 1849

Re: Asset Allocation for larger portfolio

Even at current elevated market levels our allocation to stocks appears a bit low. Applying the Bucket approach as described at Morningstar we currently have 20 years of living expenses in BND/cash. I wonder if a larger portfolio ought to have a higher stock allocation given that 10 years reach of ...
by retiredjg
Mon Nov 11, 2019 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Has anyone been retro billed for IRMAA?
Replies: 4
Views: 355

Re: Has anyone been retro billed for IRMAA?

The way I understand it, the 2017 and 2018 MAGIs do not affect a person's cost for Medicare in 2018. They would affect 2019 and 2020.

Sounds like a mistake or misunderstanding to me. Could there have been some 2016 income that you forgot about?
by retiredjg
Mon Nov 11, 2019 8:29 am
Forum: Personal Investments
Topic: May need to move 401k money by end of year, but not eligible for new 401k until February
Replies: 27
Views: 1368

Re: May need to move 401k money by end of year, but not eligible for new 401k until February

Paisley wrote:
Mon Nov 11, 2019 8:23 am
sorry - what I meant was do a regular rollover but just hold the check until 2020
Interesting concept, but I don't think it will work.

Form 8606, line 6 asks for the 12/31 value of all your IRAs plus any outstanding rollovers. That is the number that gets pro-rated.
by retiredjg
Mon Nov 11, 2019 7:43 am
Forum: Personal Investments
Topic: Backdoor Roth Gone Wrong
Replies: 12
Views: 1200

Re: Backdoor Roth Gone Wrong

@retiredjg - thanks for your guidance. I have been doing my taxes (via TurboTax), which I'm realizing is probably not the smartest idea. I'm probably going to enlist an accountant's help in the future... Your plan looks right to me. The reason I asked about how you do your taxes is that it is somet...
by retiredjg
Mon Nov 11, 2019 7:31 am
Forum: Personal Investments
Topic: May need to move 401k money by end of year, but not eligible for new 401k until February
Replies: 27
Views: 1368

Re: May need to move 401k money by end of year, but not eligible for new 401k until February

Paisley wrote:
Mon Nov 11, 2019 7:08 am
why would taxes be withheld from a 60 day rollover? you can just tell them not to withhold any taxes.
You can do that with an IRA. The withholding from a 401k is mandatory 20%.

https://www.irs.gov/retirement-plans/pl ... tributions
by retiredjg
Sun Nov 10, 2019 4:55 pm
Forum: Personal Investments
Topic: Should I use my 457(b)? Worried about disbursement options...
Replies: 32
Views: 1312

Re: Should I use my 457(b)? Worried about disbursement options...

Apparently I explained this poorly so let me try again. Right now, it appears you are putting $19k into His traditional 403b and $19k into Her traditional 403b and further savings is going into taxable. You are considering adding another $19k to the new account - a 457b. I'm suggesting that you cons...
by retiredjg
Sun Nov 10, 2019 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: strategy check managing MAGI, RMD's etc
Replies: 17
Views: 957

Re: strategy check managing MAGI, RMD's etc

Well, you are clearly thinking about the options. Good luck to you! :happy
by retiredjg
Sun Nov 10, 2019 4:36 pm
Forum: Personal Investments
Topic: roth ira in 403b
Replies: 14
Views: 511

Re: roth ira in 403b

I am starting to understand the terminology. We live in Texas. An IRA is private. The 403b/401a and 403b roth are under a not for profit company retirement account. You can put $19,000-$24,000yr depending on age in these accounts divided up into either the 403b or 403 roth. (first is pre tax the ot...
by retiredjg
Sun Nov 10, 2019 4:30 pm
Forum: Investing - Theory, News & General
Topic: Tax Deferred : Taxable : Tax Free
Replies: 34
Views: 1712

Re: Tax Deferred : Taxable : Tax Free

What is the absolute amount you have in your tax deferred accounts? If it is less than $1 million (approximately) I wouldn't bother with Roth conversions. The reasoning is that, with balances less than that threshold, even withdrawals twice the RMD size would only place you in the 15% bracket, and ...
by retiredjg
Sun Nov 10, 2019 3:57 pm
Forum: Personal Investments
Topic: Need advice on maximum IRA contributions - possible oops!
Replies: 8
Views: 421

Re: Need advice on maximum IRA contributions - possible oops!

What? :shock: :shock: :shock: :shock:

Even if you're right (and I don't doubt that), it just feels all wrong.
by retiredjg
Sun Nov 10, 2019 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth steps
Replies: 5
Views: 455

Re: Backdoor Roth steps

You don't have to leave it at all - although I would leave it until you see the pre-tax money show up in the Solo 401k....just in case there is a glitch.

Convert as soon as you want after it is safely away in the 401k. You do not have to wait until 2020.
by retiredjg
Sun Nov 10, 2019 3:27 pm
Forum: Personal Investments
Topic: Need advice on maximum IRA contributions - possible oops!
Replies: 8
Views: 421

Re: Need advice on maximum IRA contributions - possible oops!

You did exceed the limit, but this is nothing to panic about. The limit, including the catch up, is $7k for you in 2019. So you have an excess contribution of $3k. You can take it out of either IRA - up to you. But do not just take out the money. That will look like an ordinary withdrawal. You need ...
by retiredjg
Sun Nov 10, 2019 2:58 pm
Forum: Investing - Theory, News & General
Topic: Tax Deferred : Taxable : Tax Free
Replies: 34
Views: 1712

Re: Tax Deferred : Taxable : Tax Free

We are guilty of top heavy 68:7:25. Most everybody is top heavy. The limits for 401k and IRA make it that way and only people who both make and save a lot of money will/should have anything in taxable. Thinking of paying tax now for Roth Conversions when possible without bumping up the federal marg...
by retiredjg
Sun Nov 10, 2019 2:54 pm
Forum: Personal Investments
Topic: Backdoor Roth Gone Wrong
Replies: 12
Views: 1200

Re: Backdoor Roth Gone Wrong

Both the 2019 contribution and the conversion will be documented on the 2019 form 8606 and sent in with your 2019 taxes.

Who does your taxes?
by retiredjg
Sun Nov 10, 2019 2:52 pm
Forum: Personal Investments
Topic: Backdoor Roth Gone Wrong
Replies: 12
Views: 1200

Re: Backdoor Roth Gone Wrong

April 2017 - Realize that, due to unforeseen changes from marriage, we are above the MAGI for Roth IRA for 2016.  Recharacterizes $5453.84 to traditional IRA.  However, she never performs her Backdoor Roth (please don't ask me why). So there should be a 2016 Form 8606 showing a $5k contribution on ...
by retiredjg
Sun Nov 10, 2019 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth steps
Replies: 5
Views: 455

Re: Backdoor Roth steps

3) In the Vanguard IRA, exchange $5,000 from mutual funds to cash. (Can all $5,000 in cash--say VMMXX--be considered post-tax?) 4) Transfer the remaining $5,000 in pre-tax money from Vanguard IRA to Fidelity IRA, in-kind. 5a) Roll over the Fidelity IRA into the Fidelity solo 401k. 5b) Now that I ha...
by retiredjg
Sun Nov 10, 2019 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: strategy check managing MAGI, RMD's etc
Replies: 17
Views: 957

Re: strategy check managing MAGI, RMD's etc

From what you are saying, it sounds to me like you should not go up an IRMAA tier. I don't think it is wise to convert the entire IRA to Roth. If you leave some in IRA, that money can be deducted from taxes (never taxed) later in life when/if there are large medical or long term care bills. Why not ...
by retiredjg
Sun Nov 10, 2019 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: strategy check managing MAGI, RMD's etc
Replies: 17
Views: 957

Re: strategy check managing MAGI, RMD's etc

Prime...could be Primecap or Prime Money market.... :?: :D
by retiredjg
Sun Nov 10, 2019 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: strategy check managing MAGI, RMD's etc
Replies: 17
Views: 957

Re: strategy check managing MAGI, RMD's etc

That makes a difference. If both of you were starting RMDs today, it would be something like $40k. You are already choosing to convert $83k to Roth each year and expect that to go down to about $50k when Her SS starts. In my mind, $40k in RMDs doesn't amount to a whole lot compared to $83k increased...
by retiredjg
Sun Nov 10, 2019 12:50 pm
Forum: Personal Investments
Topic: Dilemma: After-tax 401K to Roth IRA, limited allocation for all 401K "types".
Replies: 18
Views: 928

Re: Dilemma: After-tax 401K to Roth IRA, limited allocation for all 401K "types".

I want to start backdooring into a Roth IRA. My plan is to contribute to the "after-tax" 401K that I'm offered through work (managed by Fidelity). I'm allowed quarterly, in-service, Roth conversions. However, I've recently discovered a fly in the ointment of my plans. I'm only allowed a single, "gl...
by retiredjg
Sun Nov 10, 2019 12:46 pm
Forum: Personal Investments
Topic: roth ira in 403b
Replies: 14
Views: 511

Re: roth ira in 403b

David Jay, I also wondered if this might be an after-tax account instead of Roth 403b, especially when renovator20 said there was no match. After thinking about it, I think it is more likely to be Roth 403b than an after-tax account, but that is just a guess.
by retiredjg
Sun Nov 10, 2019 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: strategy check managing MAGI, RMD's etc
Replies: 17
Views: 957

Re: strategy check managing MAGI, RMD's etc

Sounds like the consensus is we should consider increasing our income to up the Roth conversion, and not worry about the Medicare Premium. I think the operative word is "consider". We don't really know enough to "suggest" that you actually do it. You said there was $1.8 million in IRA and then you ...
by retiredjg
Sun Nov 10, 2019 11:13 am
Forum: Personal Investments
Topic: roth ira in 403b
Replies: 14
Views: 511

Re: roth ira in 403b

An employee can contribute up to $19,000 yr to our 403b plus employer match to 401a depending on age. That $19k (more if over 50) can go into traditional 403b or Roth 403b or a combination of the two, whatever the employee choses. Since employer is offering a roth ira in 2020, $6000 is limit on con...
by retiredjg
Sun Nov 10, 2019 10:07 am
Forum: Personal Investments
Topic: roth ira in 403b
Replies: 14
Views: 511

Re: roth ira in 403b

To get a good answer, I think you need to have a better understanding on some terms. A 403b is not an IRA. It is simply a 403b. A 401a is not an IRA. It is simply a 401a. So there is no "employer IRA" unless it is a SEP IRA or a SIMPLE IRA and I don't think that is what you are talking about. The em...
by retiredjg
Sun Nov 10, 2019 9:53 am
Forum: Personal Investments
Topic: Ira allocation
Replies: 4
Views: 199

Re: Ira allocation

I think that depends entirely on how you and your wife "feel" about it.

If increasing your stock allocation would cause you any worry at all, even a little tiny bit, the answer is definitely no.
by retiredjg
Sun Nov 10, 2019 9:44 am
Forum: Personal Finance (Not Investing)
Topic: strategy check managing MAGI, RMD's etc
Replies: 17
Views: 957

Re: strategy check managing MAGI, RMD's etc

Vanguard: 2,000,000 (1,180,000 in IRA's) Mostly in cash with some income from corporate and tax free bonds (passing up a lot of gains in this bull market, but I sure am sleeping better) One other thing, if this is your entire portfolio and you are not holding any stock funds at all, you might want ...
by retiredjg
Sun Nov 10, 2019 9:39 am
Forum: Personal Finance (Not Investing)
Topic: strategy check managing MAGI, RMD's etc
Replies: 17
Views: 957

Re: strategy check managing MAGI, RMD's etc

Seems like every time I read an entire thread I come away with more questions than answers. I thought we were doing pretty good in terms of healthcare costs, income and over all net worth. It seems like you are doing well. Then I read this thread where a lot of people are retiring early, qualifying...
by retiredjg
Sun Nov 10, 2019 9:20 am
Forum: Personal Investments
Topic: Should I use my 457(b)? Worried about disbursement options...
Replies: 32
Views: 1312

Re: Should I use my 457(b)? Worried about disbursement options...

lakpr, I see what you are saying. I think the difference is that you are assuming the money will go into a taxable account. I'm assuming it could go into a Roth 403b account...meaning they might go ahead and use the 457 for tax-deferral but change one of the 403b's to Roth. That's an interesting th...
by retiredjg
Sun Nov 10, 2019 8:48 am
Forum: Personal Investments
Topic: Should I use my 457(b)? Worried about disbursement options...
Replies: 32
Views: 1312

Re: Should I use my 457(b)? Worried about disbursement options...

lakpr, I see what you are saying. I think the difference is that you are assuming the money will go into a taxable account. I'm assuming it could go into a Roth 403b account...meaning they might go ahead and use the 457 for tax-deferral but change one of the 403b's to Roth. My point is that it is po...
by retiredjg
Sun Nov 10, 2019 8:31 am
Forum: Personal Investments
Topic: Should I use my 457(b)? Worried about disbursement options...
Replies: 32
Views: 1312

Re: Should I use my 457(b)? Worried about disbursement options...

With “If you pay 25% tax on your $10k, you have $7.5k to invest. When it doubles over the intervening years, you again end up with $15k in your account.” If placed in a taxable account Would the individual have to pay capital gains on the 7.5K when it doubled? For the most part, capital gains are r...
by retiredjg
Sun Nov 10, 2019 8:22 am
Forum: Personal Investments
Topic: Portfolio Review - please critique (midlife crisis version)
Replies: 15
Views: 1373

Re: Portfolio Review - please critique (midlife crisis version)

I would not wait, but that may just be me.
by retiredjg
Sun Nov 10, 2019 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Retire or work again?
Replies: 23
Views: 2813

Re: Retire or work again?

I do not have to practice and I can definitely live without it. That seems to make #2 and #3 somewhat unattractive, doesn't it? I just do not want to feel like I am being lazy and retiring early. My family is fine with whatever I want and it is hard to get unbiased opinion from friends or colleague...
by retiredjg
Sun Nov 10, 2019 7:57 am
Forum: Personal Investments
Topic: Should I use my 457(b)? Worried about disbursement options...
Replies: 32
Views: 1312

Re: Should I use my 457(b)? Worried about disbursement options...

This is where you are thinking incorrectly. There is no benefit. It works out exactly the same. Example. Imagine that you have $10k to invest. If you invest $10k and it doubles to $20k over the intervening years and is then taxed at 25%, you end up with $15k in your account. If you pay 25% tax on y...
by retiredjg
Sun Nov 10, 2019 7:06 am
Forum: Personal Investments
Topic: Should I use my 457(b)? Worried about disbursement options...
Replies: 32
Views: 1312

Re: Should I use my 457(b)? Worried about disbursement options...

I've read some threads on the question of how much tax deferral is too much. Given that no one can predict future tax rates, it seems to boil down to a judgment call to some degree. Yes. We are in the 32% bracket + 5% state income tax. My spouse and I are maxing tax-deferred space (403(b) x 2, HSA,...
by retiredjg
Sun Nov 10, 2019 6:35 am
Forum: Personal Investments
Topic: Bonds in your taxable - any examples?
Replies: 10
Views: 1024

Re: Bonds in your taxable - any examples?

Here's an example from the White Coat Investor with some math based on 2014 returns and some simplifying assumptions: https://www.whitecoatinvestor.com/asset-location-bonds-go-in-taxable/ His model uses just a taxable account and a Roth IRA (no traditional IRA). His numbers show a real difference t...
by retiredjg
Sat Nov 09, 2019 3:54 pm
Forum: Personal Investments
Topic: 457b funds distributions - options now?
Replies: 2
Views: 167

Re: 457b funds distributions - options now?

Once I receive the check from my previous 457b funds - what options I can avail with least taxation and try to grow those funds in pre-tax situation. It depends on whether this is a governmental or non-governmental 457. What type of job was it? Is the amount small or large? Did they withhold taxes?
by retiredjg
Sat Nov 09, 2019 3:50 pm
Forum: Personal Investments
Topic: Should I use my 457(b)? Worried about disbursement options...
Replies: 32
Views: 1312

Re: Should I use my 457(b)? Worried about disbursement options...

This sounds like a better argument for using a Roth 401k/403b instead of traditional for the hypothetical couple facing the tax bomb at 70 than forgoing the 457b in favor of a taxable brokerage account. That would be one option to consider. Then you're just back to the questions about employee cred...
by retiredjg
Sat Nov 09, 2019 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Delayed IRA Conversion for Backdoor Roth?
Replies: 10
Views: 603

Re: Delayed IRA Conversion for Backdoor Roth?

Hmmm So I have a question. My assumption has been if I have an old 401k rolled over into an IRA, I can move part of it to ROTH whenever I want to. I would pay taxes on the converted amount. So if I have a few years where I have no income I could move over 30 or 40K each year and pay a little tax. I...