Search found 34688 matches

by retiredjg
Sun Jan 20, 2019 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: Municipal Bonds in Taxable Retirement Account
Replies: 3
Views: 258

Re: Municipal Bonds in Taxable Retirement Account

I would put all of your bonds in the 401k. I would only put bonds in taxable if they won't all fit in the 401k.
by retiredjg
Sun Jan 20, 2019 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: After-tax 401(k) to Roth IRA conversion - confused about tax treatment
Replies: 9
Views: 332

Re: After-tax 401(k) to Roth IRA conversion - confused about tax treatment

What happens in the case when one's 401(k) has both pre-tax and after-tax money. Is after-tax money tracked separately and can be rolled-over as such? Depends on your plan. The law allows (in spite of that poorly worded and confusing IRS comment) for you to roll the after tax account out to Roth IR...
by retiredjg
Sun Jan 20, 2019 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: asset allocation timeline
Replies: 2
Views: 244

Re: asset allocation help

Does what sound reasonable? Your desired asset allocation or taking a year to get there? If you are mid 40's, then holding 20% in bonds is considered somewhat low by many of us. YOur current allocation of only 10% to bonds sounds very low to me. I'd shift to 20% this week and have 25% by year end. W...
by retiredjg
Sun Jan 20, 2019 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: After-tax 401(k) to Roth IRA conversion - confused about tax treatment
Replies: 9
Views: 332

Re: [Roth conversion - confused between pre-tax and post-tax money]

What happens in the case when one's 401(k) has both pre-tax and after-tax money. Is after-tax money tracked separately and can be rolled-over as such? First, you need to define what you mean by "after tax". There are two different ways that 401k plans can hold money that has already been taxed. It ...
by retiredjg
Sun Jan 20, 2019 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: Tax basis in TIRA after backdoor Roth conversion
Replies: 8
Views: 370

Re: Tax basis in TIRA after backdoor Roth conversion

philrhenry wrote:
Sun Jan 20, 2019 5:01 pm
Does that hold true even if I've been inaccurately entering my basis for several years?
No. But I would think if you had inaccurately entered your basis for several years, all your back doors would be messes up and you would have noticed it right away.
by retiredjg
Sun Jan 20, 2019 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Parting ways with financial advisor--is this allocation right for now?
Replies: 8
Views: 497

Re: Parting ways with financial advisor--is this allocation right for now?

Parting ways with financial advisor--is this allocation right for now? It obviously is not right because you want something simple. If simple is what you want, you can build a 3 fund portfolio with all of the tax-advantaged accounts without triggering any taxes. No need for that many funds. No need...
by retiredjg
Sun Jan 20, 2019 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Tax basis in TIRA after backdoor Roth conversion
Replies: 8
Views: 370

Re: Tax basis in TIRA after backdoor Roth conversion

If your previous year's line 14 was $0, then your basis for line 2 is $0.
by retiredjg
Sun Jan 20, 2019 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Bond index in Roth or Munis in taxable
Replies: 5
Views: 345

Re: Bond index in Roth or Munis in taxable

I'd probably go with the munis in taxable. And maybe some I Bonds in taxable.
by retiredjg
Sun Jan 20, 2019 3:09 pm
Forum: Investing - Help with Personal Investments
Topic: Help re-examine Vanguard fund choices (corrected with full fund names)
Replies: 8
Views: 522

Re: Help re-examine Vanguard fund choices (corrected with full fund names)

https://investor.vanguard.com/mutual-funds/profile/VTHRX The Vanguard Target 2030 fund is currently very near 70% stocks and 30% bonds. It is migrating slowly toward more bonds and contains the exact same stuff as what PAS has you invested in. The cost is .14% total. This is a tiny amount higher tha...
by retiredjg
Sun Jan 20, 2019 2:28 pm
Forum: Personal Consumer Issues
Topic: Confirm that IPhone 5s Won't Work on Verizon Network as of Late 2019?
Replies: 13
Views: 1445

Re: Confirm that IPhone 5s Won't Work on Verizon Network as of Late 2019?

Grab one while you can because, with the discount, these likely won't last too long.
Yep. They didn't last long. :happy
by retiredjg
Sun Jan 20, 2019 2:10 pm
Forum: Personal Consumer Issues
Topic: Confirm that IPhone 5s Won't Work on Verizon Network as of Late 2019?
Replies: 13
Views: 1445

Re: Confirm that IPhone 5s Won't Work on Verizon Network as of Late 2019?

Thanks Bogle7. I really do like the small phone and the SE seems to be the same size as my current 5c. Price is right. I'll be giving this some thought.
by retiredjg
Sun Jan 20, 2019 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: Help re-examine Vanguard fund choices (corrected with full fund names)
Replies: 8
Views: 522

Re: Help re-examine Vanguard fund choices (corrected with full fund names)

Your funds are fine. Do you know how to keep this balanced or is that part of your question? Or do you just not know how to get the $25k in there right?

Yes, it could be simpler if you used a target fund in each account. Are you interested in that?
by retiredjg
Sun Jan 20, 2019 12:37 pm
Forum: Personal Consumer Issues
Topic: Confirm that IPhone 5s Won't Work on Verizon Network as of Late 2019?
Replies: 13
Views: 1445

Re: Confirm that IPhone 5s Won't Work on Verizon Network as of Late 2019?

Well, this is disappointing. I've got a perfectly good iPhone 5c that will apparently become a paperweight in the next year. I like a small phone and they don't make this size any more. Cheapest replacement is refurbished (ugh) or about $500 if I stick with Apple brand. This is not the kind of progr...
by retiredjg
Sun Jan 20, 2019 9:50 am
Forum: Investing - Help with Personal Investments
Topic: Help Converting t401k to Roth IRA
Replies: 7
Views: 418

Re: Help Converting t401k to Roth IRA

Hey Bogleheads, My SO has ~$22,000 in 401k's from previous employers that we are looking to rollover to a Fidelity Roth IRA. Is this person a significant other or a spouse? When it comes to taxes, there is a very big difference. Why roll to Roth instead of traditional? Is it best to covert the trad...
by retiredjg
Sun Jan 20, 2019 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Need help with portfolio, template included
Replies: 25
Views: 2255

Re: Need help with portfolio, template included

My Roth IRA is with Fidelity only. I’m invested in both the Fidelity index fund and the Admiral fund because i invested the money at two different times. Over time I’ve been advised that Vanguard funds are typically lower fees than Fidelity, so I was trying to change things over to Vanguard funds, ...
by retiredjg
Sun Jan 20, 2019 7:34 am
Forum: Personal Finance (Not Investing)
Topic: How to Treat "Negative" Basis in Nondeductible IRA
Replies: 55
Views: 2982

Re: How to Treat "Negative" Basis in Nondeductible IRA

ssel wrote:
Sat Jan 19, 2019 11:58 pm
@retiredjg,

A few months late, but I can meet your challenge!
:beer :beer :beer

I see that you have!

I would contend that the intent was for line 10 to be .999 or some number longer than that, but the instructions on the form do say "rounded".
by retiredjg
Sat Jan 19, 2019 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?
Replies: 28
Views: 1037

Re: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?

Spirit Rider wrote:
Sat Jan 19, 2019 2:36 pm
I was specifically referring to the additional Roth conversions possibly pushing them into the 32% tax bracket,
I know. But he said this...."As for the Roth, even with the added $150k, since I am married, we will come in under the $321,450 limit for 24% tax bracket (sadly)."
by retiredjg
Sat Jan 19, 2019 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?
Replies: 28
Views: 1037

Re: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?

I had the same thought, but I think the premise is they can do all this and come in in the 24% bracket, not the 32% bracket which of course would be nuts . I think they are in the 22% bracket and with all the conversions and Rothness will move into the 24% bracket which is not a lot higher than 22% ...
by retiredjg
Sat Jan 19, 2019 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Critique/Allocation Advice
Replies: 6
Views: 420

Re: Portfolio Critique/Allocation Advice

How many dollars will go into each of those accounts each year?
by retiredjg
Sat Jan 19, 2019 9:17 am
Forum: Personal Finance (Not Investing)
Topic: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?
Replies: 28
Views: 1037

Re: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?

... but I'll wait to see if the IRS whines before I worry about this... I doubt there will be a whine. I saw an article yesterday that said the underpayment rules are being softened considerably for 2018. I think it had something to do with withholding tables being out of whack for the new tax laws.
by retiredjg
Sat Jan 19, 2019 9:15 am
Forum: Personal Finance (Not Investing)
Topic: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?
Replies: 28
Views: 1037

Re: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?

Does anyone know if I would need to withhold taxes for this? Like if I opt not to withhold taxes on the Roth conversion of my pre-tax rollover TIRA, would I need to pay estimated taxes to the government or since this is not a wage / salary / work income I can just pay my total tax at the end of the...
by retiredjg
Sat Jan 19, 2019 9:08 am
Forum: Personal Finance (Not Investing)
Topic: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?
Replies: 28
Views: 1037

Re: Mega Roth Conversion and Backdoor Roth IRA in the same year possible?

I believe if you have any pre-tax TIRA when when you do the backdoor Roth, it does a pro-rata calculation so you get taxed on a % basis. This is incorrect. The IRS does not know what you have in tIRA on the day you do the conversion step of the back door. Therefore they could not determine if peopl...
by retiredjg
Sat Jan 19, 2019 8:28 am
Forum: Investing - Theory, News & General
Topic: Tax-managed LifeStrategy fund
Replies: 7
Views: 1108

Re: Tax-managed LifeStrategy fund

People have wondered in the past why there are no tax-managed target funds. An answer I've seen more than once is there is some kind of legal requirement - a tax managed balanced fund can't be more than 50% stocks if I recall correctly. So it would be awkward to try to do a tax managed LS series....
by retiredjg
Fri Jan 18, 2019 8:07 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Critique/Allocation Advice
Replies: 6
Views: 420

Re: Portfolio Critique/Allocation Advice

You will get more responses if you include fund names in your post. Many people do not speak ticker and will not bother to look them up. :happy
by retiredjg
Fri Jan 18, 2019 7:27 pm
Forum: Investing - Help with Personal Investments
Topic: Mega Backdoor ROTH Clarification
Replies: 7
Views: 697

Re: Mega Backdoor ROTH Clarification

OK I tried to roll the excess from the after tax contribution into my ROTH but the plan administrator said that I cannot just pull from the after tax portion alone. She said that if I make a request it will pull from all of my accounts. I thought this seemed odd but I looked through my Summary plan...
by retiredjg
Fri Jan 18, 2019 7:14 pm
Forum: Investing - Help with Personal Investments
Topic: etf vs index funds . tax efficiency
Replies: 16
Views: 617

Re: etf vs index funds . tax efficiency

Hi, Are etf's more tax efficient than an index fund with similar er ratio in a taxable account if strategy is just to buy and hold? Thanks Part of this depends on which company's product you are looking at. At Vanguard, the mutual fund and ETF are different versions of the same stuff - tax-efficien...
by retiredjg
Fri Jan 18, 2019 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: Going from 100-0 to 90-10 with bonds in taxable account
Replies: 15
Views: 1004

Re: Going from 100-0 to 90-10 with bonds in taxable account

Sorry meant second to highest tax bracket. No other income. Maybe not. I'd just drop it, but this is a number you need to have right - important decisions are made using this number. If you are single and make $220k and put $19k into a 401k and have a standard deduction of $12,200, you will not eve...
by retiredjg
Fri Jan 18, 2019 5:55 pm
Forum: Investing - Help with Personal Investments
Topic: Going from 100-0 to 90-10 with bonds in taxable account
Replies: 15
Views: 1004

Re: Going from 100-0 to 90-10 with bonds in taxable account

Just how bad are your choices in the 401k? I'd probably just shift $20k in the 401k from stocks to bonds.

$220k income will not get you anywhere near the highest federal tax bracket. Perhaps there is other income not mentioned?
by retiredjg
Fri Jan 18, 2019 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: help with financial planning
Replies: 31
Views: 3006

Re: help with financial planning

mirandablue wrote:
Fri Jan 18, 2019 4:24 pm
Thank you! I will contact wealthfront. I had some more specific questions about the taxable asset allocation. Is it possible to private message you?
Yes. Just click on the little icon next to "contact" under my user name.
by retiredjg
Fri Jan 18, 2019 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Setting Up my 3-Fund Portfolio Help
Replies: 4
Views: 496

Re: Setting Up my 3-Fund Portfolio Help

There is a thing called the "back door" through which people with high incomes can get money into Roth IRA. Chances are, someone will suggest you do that. Don't do it . Your SEP IRA will interfere. For you Roth IRA is off the table, at least for now. Your SEP IRA does not interfere with your wife us...
by retiredjg
Fri Jan 18, 2019 8:53 am
Forum: Investing - Help with Personal Investments
Topic: help with financial planning
Replies: 31
Views: 3006

Re: help with financial planning

I contributed $5500 towards ROTH IRA for 2018 early in the year. With the job change, my gross income (before taxes) for 2018 comes out to around 175k. So, likely exceed the income limit for qualifying? What can be done? Thanks again! It appears you are over the limit. The MAGI for head of househol...
by retiredjg
Fri Jan 18, 2019 7:47 am
Forum: Personal Finance (Not Investing)
Topic: Whoops, thought wife's tIRA was Roth...help!
Replies: 30
Views: 2312

Re: Whoops, thought wife's tIRA was Roth...help!

Wow. I'm amazed it actually got fixed this fast!
by retiredjg
Thu Jan 17, 2019 7:49 pm
Forum: Investing - Help with Personal Investments
Topic: Best 401k options before rollover???
Replies: 6
Views: 306

Re: Best 401k options before rollover???

We don't know what you asked and we don't know they told you and we don't know whether what they said is the same or different from what you understood. But...here are the regs from the IRS. https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distribut...
by retiredjg
Thu Jan 17, 2019 6:07 pm
Forum: Investing - Help with Personal Investments
Topic: Setting Up my 3-Fund Portfolio Help
Replies: 4
Views: 496

Re: Setting Up my 3-Fund Portfolio Help

I think you would need to roll your current SEP money to an IRA at the custodian of your choice. It would appear you prefer Vanguard. And yes, you could set things up as you planned. But you should probably coordinate that with your other retirement accounts. If you don't have any other retirement a...
by retiredjg
Thu Jan 17, 2019 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: Best 401k options before rollover???
Replies: 6
Views: 306

Re: Best 401k options before rollover

ThriftyisFun wrote:
Thu Jan 17, 2019 5:25 pm
I understand I can only do one rollover per rolling 365 period, so I need to plan this right. 
This rule does not apply to 401k to IRA distributions. :happy
by retiredjg
Thu Jan 17, 2019 5:09 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2934

Re: Are mega back door Roth contributions considered contributions?

Here's one last thing to consider. We agree that the $1,000 that was earnings in the after-tax account gets taxed as it goes into Roth 401k. You think that money then joins up with earnings in the Roth 401k. I suppose it would have to be passed on as earnings into the Roth IRA. If what you think is ...
by retiredjg
Thu Jan 17, 2019 11:55 am
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2934

Re: Are mega back door Roth contributions considered contributions?

One thing that you may have overlooked, the things you quoted talk about a "qualified rollover from a designated Roth account". That word "qualified" is critical. https://www.irs.gov/retirement-plans/designated-roth-accounts-distributions "A qualified distribution from a designated Roth account is e...
by retiredjg
Thu Jan 17, 2019 11:47 am
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2934

Re: Are mega back door Roth contributions considered contributions?

My position is that when the Roth 401k to Roth IRA rollover occurs (before five year clock has run out), the result is: $1,000 basis $2,000 earnings Based on the sources in my previous post (primarily the bolded portion of the first quote), I don't think it's possible for a Roth 401k to rollover Ro...
by retiredjg
Thu Jan 17, 2019 9:59 am
Forum: Investing - Help with Personal Investments
Topic: help with financial planning
Replies: 31
Views: 3006

Re: Help with financial planning and saving for retirement- reposting with details

Here is what you currently have. Total portfolio = $299k Taxable $200k 66.9% cash Current 401k $9k 3% target fund at 90/10 ROTH IRA with wealthfront: $10k 3.3% mixed portfolio at 90/10 Old 403(b) $80k 26.8% target at 90/10 and some money market Roll the old 403b into your current 401k if allowed. In...
by retiredjg
Thu Jan 17, 2019 9:26 am
Forum: Investing - Help with Personal Investments
Topic: help with financial planning
Replies: 31
Views: 3006

Re: help with financial planning

But first, you need to determine if you were/are eligible to contribute to Roth IRA for 2018. If not, if you have already contributed, that will need to be fixed.

Have you already contributed? How about an estimate of your total income for 2018?
by retiredjg
Thu Jan 17, 2019 9:24 am
Forum: Investing - Help with Personal Investments
Topic: help with financial planning
Replies: 31
Views: 3006

Re: Help with financial planning and saving for retirement- reposting with details

1. I want to invest the cash in hand ($200k) for retirement, and contribute a fixed amount on a monthly basis for retirement. Where should I invest and what asset allocations? Should I keep the current target dated fund or use individual funds. What are the advantages of each?. If individual funds,...
by retiredjg
Thu Jan 17, 2019 9:09 am
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2934

Re: Are mega back door Roth contributions considered contributions?

Lyrrad, my brain is not nimble enough to follow what you are doing. I'm not even sure what your question is since it is not clear what part of your post you are referring to when you ask "Does this seem correct?" Here is how I think this works. Probably only Alan S. will know if it is correct or not...
by retiredjg
Wed Jan 16, 2019 8:07 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 847
Views: 43421

Re: John Bogle is dead at 89

Thanks Jack!

You made a difference, a really big difference, to a whole lot of people. :wink:
by retiredjg
Wed Jan 16, 2019 6:22 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2934

Re: Are mega back door Roth contributions considered contributions?

Justin, pay attention. I'm referring to the "earnings" before the conversion/rollover. Yes you are. Those earnings get taxed when the rollover/conversion happen. If you're rolling a Roth 401k to a Roth IRA, the pre-conversion earnings can't be withdrawn early penalty free at all. That is because, un...
by retiredjg
Wed Jan 16, 2019 6:02 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2934

Re: Are mega back door Roth contributions considered contributions?

It's interesting that: Trad IRA -> Roth IRA all eligible for early withdrawal - this is true for the part you converted; not true for the earnings that occur after the conversion (inside the Roth container). After-tax 401k -> Roth IRA all eligible for early withdrawal this is true for the part you ...
by retiredjg
Wed Jan 16, 2019 5:39 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2934

Re: Are mega back door Roth contributions considered contributions?

Any part of the $100k rollover that was a conversion would have a 5 tax year clock on it. I think. Pretty sure. The five year clock stops once you are over 59.5 and it has been 5 years or more since the first Roth IRA was established (via contribution or conversion). I agree the 5 tax year conversi...
by retiredjg
Wed Jan 16, 2019 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: Preparing for modest early retirement in 5yrs. Questions & Feedback.
Replies: 36
Views: 2411

Re: Preparing for modest early retirement in 5yrs. Questions & Feedback.

What should we invest in with the 457s? Bonds, since we will need them sooner? I doubt that I'd fill the 457s with bonds, at least no this far out. But it does seem reasonable for that money to be invested more conservatively than the 401k/403b accounts. Also, when she hits 50, we could do the 6k+ ...
by retiredjg
Wed Jan 16, 2019 4:47 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2934

Re: Are mega back door Roth contributions considered contributions?

After you rollover a Roth 401k to a Roth IRA (say a total of $100k in funds), all $100k is immediately withdrawable penalty free, regardless of age. Correct? That is not correct. The part of the $100k rollover that is the result of earnings inside the Roth 401k is not available without tax and pena...
by retiredjg
Wed Jan 16, 2019 4:40 pm
Forum: Investing - Theory, News & General
Topic: Are mega back door Roth contributions considered contributions?
Replies: 87
Views: 2934

Re: Are mega back door Roth contributions considered contributions?

So based on this information, 100% of the funds from a Roth 401k -> Roth IRA conversion would be immediately available for early withdrawal penalty free (no need to wait 5 years). JustinR, this discussion was never about Roth 401k rolling out to Roth IRA. This discussion was about an after-tax acco...