Search found 43586 matches

by retiredjg
Mon Apr 12, 2021 4:38 pm
Forum: Personal Investments
Topic: Tax efficient placement help - need a second set eyes
Replies: 3
Views: 210

Re: Tax efficient placement help - need a second set eyes

Appreciate the help here! I'll look at changing those bonds in blue to tax-exempt versions. The second one is already tax exempt so I think I'll just need to change the first one. Sorry, I misread the name of the second fund. In the 24% bracket, the taxable bond fund and a tax exempt bond fund prob...
by retiredjg
Mon Apr 12, 2021 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 Roth Conversion 8606 Question
Replies: 10
Views: 352

Re: 2020 Roth Conversion 8606 Question

You will not need to pro-rate unless there is something in tIRA (including Rollover IRA, SEP IRA, and SIMPLE IRA) at the end of the year. So don't accidentally roll a 401k into rollover IRA in December or something along that line. :happy
by retiredjg
Mon Apr 12, 2021 3:43 pm
Forum: Personal Investments
Topic: Wells Fargo giving bad IRA contribution/tax advice?
Replies: 4
Views: 303

Re: Wells Fargo giving bad IRA contribution/tax advice?

I believe the Wells Fargo information in incorrect for the scenario "you are covered and your spouse is not". The limits given are correct for the uncovered spouse, but not for you. Your limit would be lower. Both 2020 and 2021 appear wrong to me. They seemed to have missed the fact that y...
by retiredjg
Mon Apr 12, 2021 3:20 pm
Forum: Personal Investments
Topic: Tax efficient placement help - need a second set eyes
Replies: 3
Views: 210

Re: Tax efficient placement help - need a second set eyes

Welcome to the forum. :happy You didn't mention a tax bracket and that matters. Here are a couple of small things to consider changing. Assets Tax-Deferred - IRA/401K/HSA Fidelity® U.S. Bond Index Fund Premium Class Fidelity® Real Estate Index Fund Premium Class Fidelity® U.S. Bond Index Fund Premiu...
by retiredjg
Mon Apr 12, 2021 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 Roth Conversion 8606 Question
Replies: 10
Views: 352

Re: 2020 Roth Conversion 8606 Question

Question: Is my tax preparer correct? Or do I need to amend return, or at least attach 8606? Partially. The return will not be changed other than adding the 2020 Form 8606 to document the 2020 non-deductible contribution. So no amendment is necessary, but the Form 8606 is necessary and it can be ma...
by retiredjg
Mon Apr 12, 2021 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: 1099R Form Redistribution Code Tax Question
Replies: 11
Views: 450

Re: 1099R Form Redistribution Code Tax Question

1. Correct, no 8606 was done 2. I was not taxed on the 12k (just the initial tax in the income) 3. I will have to check when I get home tonight Depending on what you find on line 4, the fix for this might be as simple as filling out two Forms 8606 (his and hers) and mailing as described by the prev...
by retiredjg
Mon Apr 12, 2021 11:11 am
Forum: Personal Investments
Topic: How do I self-manage and completely change my portfolio?
Replies: 27
Views: 1744

Re: How do I self-manage and completely change my portfolio?

(3) Use a fee-only advisor I spoke with here in St. Louis for a couple months to clean things up (they charge 1%) and then take it from there (I can tell them exactly what I want to do and how I want my accounts set up); Do you assume you can tell them exactly what you want to do? Or is this someth...
by retiredjg
Mon Apr 12, 2021 11:07 am
Forum: Personal Investments
Topic: How do I self-manage and completely change my portfolio?
Replies: 27
Views: 1744

Re: How do I self-manage and completely change my portfolio?

Thank you! I can't find any advisor who charges hourly. They're all 1%. I'm willing to do that for a couple months to help me sort this out though. I did see the Harry referral guy, but he charges for the referral as well, and how do I know if the referral will be worth it? Harry is a well respecte...
by retiredjg
Mon Apr 12, 2021 9:51 am
Forum: Personal Investments
Topic: Question on simultaneous 72t & Roth ladder
Replies: 14
Views: 920

Re: Question on simultaneous 72t & Roth ladder

Even if you have it figured out, will your spouse know how to avoid the pitfalls if something happens to you? That would be my concern. Where to take money from would be easy to write instructions for, but I'm not sure than any amount of good written instructions would help someone figure out how fi...
by retiredjg
Mon Apr 12, 2021 8:58 am
Forum: Personal Investments
Topic: How do I self-manage and completely change my portfolio?
Replies: 27
Views: 1744

Re: How do I self-manage and completely change my portfolio?

I feel very turned off to Schwab just because of my current advisor, so would like to switch to Vanguard but that depends on the costs involved. I'm going to call them today. Take note that there is a difference between a Schwab advisor and an advisor who places clients investments at Schwab. Don't...
by retiredjg
Mon Apr 12, 2021 8:38 am
Forum: Personal Finance (Not Investing)
Topic: 1099R Form Redistribution Code Tax Question
Replies: 11
Views: 450

Re: 1099R Form Redistribution Code Tax Question

It appears to me you did the process right (assuming there were no other IRAs except Roth IRA). It also appears to me you did a Roth conversion, not a re-characterization. And I think your 1099 is correct as well. It is one of the great mysteries....lots of tax-preparers don't know what to do with t...
by retiredjg
Mon Apr 12, 2021 8:17 am
Forum: Personal Investments
Topic: Question on simultaneous 72t & Roth ladder
Replies: 14
Views: 920

Re: Question on simultaneous 72t & Roth ladder

Thank you yog for continuing to explain this to me. I get it now. It was certainly a head scratcher at first, especially the idea of putting Roth IRA into a SEPP (whether you withdraw from it or not).

I suspect that you may actually enjoy the balancing act on a knife's edge. :D
by retiredjg
Mon Apr 12, 2021 7:39 am
Forum: Personal Investments
Topic: How do I self-manage and completely change my portfolio?
Replies: 27
Views: 1744

Re: How do I self-manage and completely change my portfolio?

Advice from Vanguard would not be free. You would have to move your money to Vanguard and pay 0.3% for their Advisor Service. There is no contract so you could stop at any time you feel ready to do it yourself. And whatever they set you up with is a portfolio you could leave at Vanguard or transport...
by retiredjg
Sun Apr 11, 2021 4:38 pm
Forum: Personal Investments
Topic: How do I self-manage and completely change my portfolio?
Replies: 27
Views: 1744

Re: How do I self-manage and completely change my portfolio?

I'm the person who suggested Vanguard's PAS earlier, if only for a limited time to get you going (like training wheels). It's a good idea. Doing it all on your own is a good idea as well. I'm not sure I could suggest one over the other for someone who is willing and able to do it. Maybe someone else...
by retiredjg
Sun Apr 11, 2021 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth IRA and Pro-rata Rule
Replies: 13
Views: 641

Re: Backdoor Roth IRA and Pro-rata Rule

I have one more question about the pro-rata rule though. Let's assume I have tIRA with $16k where $10k is pre-tax money and $6k is after-tax money. Do I have to pay taxes if I transfer $16k from tIRA to Roth IRA and on December 31 I will have tIRA with zero balance? It looks like the pro-rata rule ...
by retiredjg
Sun Apr 11, 2021 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth IRA and Pro-rata Rule
Replies: 13
Views: 641

Re: Backdoor Roth IRA and Pro-rata Rule

5) To the end of the year I will have trad IRA with zero dollars, Solo 401(k) with after-tax money (10k), and Roth IRA with after-tax money (6k). Will pro-rata rule be avoided if I do 1)-5) in one year? You will avoid pro-rating, but the Solo 401k money will not be after-tax. It will still be pre-t...
by retiredjg
Sun Apr 11, 2021 3:42 pm
Forum: Personal Investments
Topic: Taking over in-law's retirement accounts, advice on strategy
Replies: 9
Views: 1035

Re: Taking over in-law's retirement accounts, advice on strategy

Currently I have their Vanguard IRA accounts in roughly 70/30, VTSAX(USA stock) and VTIAX(Intl Stock)+VWO (emerging mkts). Personally I feel some pressure to "catch up" because their gains were suppressed under their old advisory. Catch up is not your job. Your job is to preserve what the...
by retiredjg
Sun Apr 11, 2021 2:40 pm
Forum: Personal Investments
Topic: How do I self-manage and completely change my portfolio?
Replies: 27
Views: 1744

Re: How do I self-manage and completely change my portfolio?

Thank you for posting in the format we use to help people with portfolio questions. It makes it so much easier to answer your questions. Put on your seat belt. :happy If you want a simple low cost portfolio, you will need a complete liquidation. It will take some time but the results will be worth i...
by retiredjg
Sun Apr 11, 2021 11:14 am
Forum: Personal Investments
Topic: Question on simultaneous 72t & Roth ladder
Replies: 14
Views: 920

Re: Question on simultaneous 72t & Roth ladder

Are you talking about doing a SEPP on a tIRA and converting the withdrawals to Roth IRA? I must say I still don't get it. If yes, why do you want to convert huge amounts of the tIRA when it is only $1 million? I can understand doing some limited conversions on $1 million to keep it from growing too ...
by retiredjg
Sun Apr 11, 2021 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Recharacterizations of IRA contribution for 2020
Replies: 1
Views: 114

Re: Recharacterizations of IRA contribution for 2020

A re-characterization is a do-over. It is like you contributed $7k to the tIRA in the first place. You can deduct the full amount....to the extent that it is deductible in your situation. You do not need to make up the difference.
by retiredjg
Sun Apr 11, 2021 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Can I have a employer Traditional 401K and a Roth IRA simultaneously and contribute to both in the same year
Replies: 17
Views: 1556

Re: Question regarding Traditional IRA for spouse MAGI limits

Now the Traditional IRA AGI/MAGI limits for my spouse in our situation, "Married filing jointly with a spouse who is covered by a plan at work" for 2021 is $198,000 or less to be able to contribute the maximum 6K amount. It appears you are confusing contributing and deducting. . This limi...
by retiredjg
Sun Apr 11, 2021 10:42 am
Forum: Personal Investments
Topic: Question on simultaneous 72t & Roth ladder
Replies: 14
Views: 920

Re: Question on simultaneous 72t & Roth ladder

I don't know if you are missing anything because I cannot figure out what you are considering. :shock: It appears to me you only have $1 million in a tax deferred account. The $3 million in Roth does have a tax-advantage, but it is not tax-deferred. When you say 72t plan, do you mean substantially e...
by retiredjg
Sun Apr 11, 2021 8:30 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question
Replies: 4
Views: 584

Re: Tax Question

Yes. Your understanding is correct. And there is that $3k exception for public safety officers.
by retiredjg
Sun Apr 11, 2021 8:07 am
Forum: Personal Investments
Topic: Question about Roth and Traditional 401K contributions...
Replies: 5
Views: 395

Re: Question about Roth and Traditional 401K contributions...

Thank you all for your helpful responses. Now if I were to do a direct rollover of these 401K accounts into a brokerage account would it be possible to consider the Roth portion of the 401K as my Roth contribution for the year? My understanding is that I am eligible to contribute additional $6500 t...
by retiredjg
Sun Apr 11, 2021 8:04 am
Forum: Personal Investments
Topic: Analysis paralysis about International in Taxable Account
Replies: 26
Views: 1556

Re: Analysis paralysis about International in Taxable Account

I don't have a good sense of how much these little details affect things. This is an insightful observation. One of the things you have to remember about Bogleheads' is that there is a lot of "optimizing" going on here. We can talk endlessly about things that are of little importance. It ...
by retiredjg
Sun Apr 11, 2021 7:19 am
Forum: Personal Investments
Topic: Portfolio Planning/Review for someone who should’ve asked 3 years ago
Replies: 21
Views: 2683

Re: Portfolio Planning/Review for someone who should’ve asked 3 years ago

Hi @retiredjg, I recently found out about this forum post ( https://www.bogleheads.org/forum/viewtopic.php?f=1&t=342995 ) in which the linked spreadsheet suggests that for someone in the 32% tax bracket, international is not as tax efficient as total stock (comparing VXUS and VTI in spreadsheet...
by retiredjg
Sat Apr 10, 2021 5:28 pm
Forum: Personal Investments
Topic: How do I self-manage and completely change my portfolio?
Replies: 27
Views: 1744

Re: How do I self-manage and completely change my portfolio?

Thank you! It looks like the information asked for is only the specifics of my portfolio. I'm not shy about providing more numbers if it would help, such as net worth, income, and expenses. Do people provide that info or is that too much and unnecessary? You can add more if you want. But please fol...
by retiredjg
Sat Apr 10, 2021 4:06 pm
Forum: Personal Investments
Topic: How do I self-manage and completely change my portfolio?
Replies: 27
Views: 1744

Re: How do I self-manage and completely change my portfolio?

Thank you so much!! I will work on getting all that information together to post ASAP! I also really appreciate the advice to look into Vanguard's services. Will post all my financial details as soon as I can get them put together. No rush. Take your time. Doing it right is more important than doin...
by retiredjg
Sat Apr 10, 2021 3:29 pm
Forum: Personal Investments
Topic: How do I self-manage and completely change my portfolio?
Replies: 27
Views: 1744

Re: How do I self-manage and completely change my portfolio?

Welcome to the forum. :happy If you wish to simply your portfolio, move to ETFs, and eventually take the portfolio over to manage yourself, you cannot do better than Vanguard's Personal Advisor Service. They charge .3% instead of the 1% your are considering. They will move your money to a simple por...
by retiredjg
Sat Apr 10, 2021 3:16 pm
Forum: Investing - Theory, News & General
Topic: Using savings draw down instead of Roth conversion
Replies: 9
Views: 497

Re: Using savings draw down instead of Roth conversion

If you do this for enough years, you will not have an RMD problem. If you plan to do it for 2 or 3 years, you need to do conversions as well if you want to avoid high RMDs. I was thinking age 66-70. But I was also thinking that if the market/our portfolio returns an average of 5% it would be mostly...
by retiredjg
Sat Apr 10, 2021 3:10 pm
Forum: Investing - Theory, News & General
Topic: Traditional IRA to Roth IRA - backdoor
Replies: 4
Views: 351

Re: Traditional IRA to Roth IRA - backdoor

yadbugee, it is not clear from your post that you even need to use the backdoor in order to contribute to Roth IRA. Are you over the limit? If yes, you have the right idea, but there are dozens of ways that people manage to do this wrong and fixing it can be gruesome. So do some thorough research be...
by retiredjg
Sat Apr 10, 2021 3:03 pm
Forum: Investing - Theory, News & General
Topic: Using savings draw down instead of Roth conversion
Replies: 9
Views: 497

Re: Using savings draw down instead of Roth conversion

If you do this for enough years, you will not have an RMD problem. If you plan to do it for 2 or 3 years, you need to do conversions as well if you want to avoid high RMDs.
by retiredjg
Sat Apr 10, 2021 2:58 pm
Forum: Personal Investments
Topic: Is it possible to open and fund a Roth IRA for my kid
Replies: 17
Views: 1212

Re: Is it possible to open and fund a Roth IRA for my kid

Thanks, this makes sense. Hypothetically lets say a few years down the line my kid finds a small part time job like in a store or something and he makes small amounts of money. Does he need to contribute to this IRA from his own earned money. My point is if the kid makes some money he will surely s...
by retiredjg
Sat Apr 10, 2021 2:54 pm
Forum: Personal Investments
Topic: Question about Roth and Traditional 401K contributions...
Replies: 5
Views: 395

Re: Question about Roth and Traditional 401K contributions...

The limit for "elective deferrals" is $19.5k. That can be traditional 401k and/or Roth 401k and includes whatever goes into the new plan.
by retiredjg
Sat Apr 10, 2021 2:51 pm
Forum: Personal Investments
Topic: Is it possible to open and fund a Roth IRA for my kid
Replies: 17
Views: 1212

Re: Is it possible to open and fund a Roth IRA for my kid

Thank you. This makes sense. One hypothetical question about earned income though. What about people who have no "income" but live off inheritance or something like that. Can they have a Roth IRA and invest in that? Like trust fund kids we keep hearing about :-D They can "have" ...
by retiredjg
Sat Apr 10, 2021 2:49 pm
Forum: Investing - Theory, News & General
Topic: Using savings draw down instead of Roth conversion
Replies: 9
Views: 497

Re: Using savings draw down instead of Roth conversion

Would that act technically as a Roth conversion if we use some of that money up before our RMD's kick in? No, it would not act as a Roth conversion. But it would accomplish the same thing as a Roth conversion in that it would reduce your tax-deferred accounts. Whether it reduces your tax-deferred a...
by retiredjg
Sat Apr 10, 2021 2:44 pm
Forum: Personal Investments
Topic: Is it possible to open and fund a Roth IRA for my kid
Replies: 17
Views: 1212

Re: Is it possible to open and fund a Roth IRA for my kid

Some kids actually earn income. The most common example is child model or actor for the very young ones. Maybe lawnmowing, babysitting, or dog walking for the older ones. I doubt that mowing the family yard or babysitting the younger sibling or walking the family dog will do. I think some people may...
by retiredjg
Sat Apr 10, 2021 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Incorrect Tax Calculation by IRS FreeFile [or Excel1040.com]
Replies: 9
Views: 637

Re: Incorrect Tax Calculation by IRS FreeFile

Ordinary income is taxed using 1 set of tables. Long term capital gains and qualified dividends are taxed using a different table. Would that explain it?

Or is there a tax credit?
by retiredjg
Sat Apr 10, 2021 8:55 am
Forum: Personal Investments
Topic: Rebalance Tax Quandry
Replies: 10
Views: 792

Re: Rebalance Tax Quandry

If you are in a very low tax bracket, you might be able to sell some of the total stock and pay 0% on long term capital gains. In order to do this, your taxable income (not AGI) including the LTCG would need to be less than $80,800.
by retiredjg
Sat Apr 10, 2021 8:27 am
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1573

Re: Backdoor Roth in Vanguard question

JPM, this is what I think is happening. From the Forms 8606, it appears to me that your tax person has been (more or less) doing the form correctly each year. But she was not doing what you thought she was doing. In other words, she was entering the 1099's for the right year even though you thought ...
by retiredjg
Fri Apr 09, 2021 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Removing non-deductible portion from t-IRA
Replies: 4
Views: 320

Re: Removing non-deductible portion from t-IRA

I had a couple years where I accidentally contributed to my t-IRA when my wife and I were in the phase-out income limits. I corrected our tax returns, but that now leaves a non-deductible portion mixed in my account. Instead of endless proration, I was told I could unmix the deductible and non-dedu...
by retiredjg
Fri Apr 09, 2021 3:42 pm
Forum: Investing - Theory, News & General
Topic: How often (if ever) should I rebalance my Thrift Savings Plan?
Replies: 4
Views: 416

Re: How often (if ever) should I rebalance my Thrift Savings Plan?

Periodically, you should nudge your allocation back to or toward its target. Otherwise, there is no reason to have a target. Also it gives you the opportunity to take some gains and buy an asset class that is lagging (which also means it is cheap). Right now, your small cap is too high and your inte...
by retiredjg
Fri Apr 09, 2021 11:41 am
Forum: Personal Investments
Topic: Please Help: After tax - non Roth 401k?
Replies: 10
Views: 918

Re: Please Help: After tax - non Roth 401k?

Here is a little more clarification. A 401k can accept 3 different kinds of contributions from an employee (although not all plans have all options): -tax-deferred -Roth -after tax that is not Roth The first two buckets on the list are where your contributions (elective deferrals) go each year. It i...
by retiredjg
Fri Apr 09, 2021 11:19 am
Forum: Personal Investments
Topic: Allocate 401k by contribution source
Replies: 15
Views: 921

Re: Allocate 401k by contribution source

Heya, So, I've legit never noticed this option in Vanguard, because it is so subtle. But when I'm setting my allocation from my paycheck there is a small button above the funds that says "allocate by source." It seems like I can pick where the company match goes vs my actual money. From w...
by retiredjg
Fri Apr 09, 2021 11:14 am
Forum: Personal Investments
Topic: Investment Timing
Replies: 6
Views: 397

Re: Investment Timing

What would be your advice for getting these available funds into the market, specifically with respect to the timing of doing it and where the market is today. I'd suggest you buy enough fixed income/bonds to get you to 64/36. If there is anything left, invest it at 64/36. Asset allocation is not s...
by retiredjg
Fri Apr 09, 2021 11:05 am
Forum: Personal Investments
Topic: TSP asset allocation
Replies: 11
Views: 932

Re: TSP asset allocation

If you want 60% stocks and 40% fixed with about 40% of your stocks in international, it is perfect. :happy Some people would use some F Fund or even all F fund, some would use less (or more) international. Some would use a different ratio of C Fund to S fund. None would necessarily be any better or ...
by retiredjg
Fri Apr 09, 2021 10:50 am
Forum: Investing - Theory, News & General
Topic: Gains Harvest or Loss Harvest in Retirment? Or both?
Replies: 2
Views: 289

Re: Gains Harvest or Loss Harvest in Retirment? Or both?

Gains harvesting can be a definite plus if you actually spend money from taxable and if you eventually move out of the 0% bracket (or it goes away). If the money in taxable goes to heirs or charity, there is no benefit I can think of. Heirs get a stepped up bonus. Charities don't pay the tax anyway....
by retiredjg
Fri Apr 09, 2021 8:21 am
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1573

Re: Backdoor Roth in Vanguard question

I don't know what happened, but both links now required permission.
by retiredjg
Fri Apr 09, 2021 7:37 am
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1573

Re: Backdoor Roth in Vanguard question

The link works. It will take some time and brain power to figure out what has been done, so be patient.

Do you have any records of the dates these contributions were made?

Is there an answer to my question above?
by retiredjg
Fri Apr 09, 2021 7:24 am
Forum: Personal Investments
Topic: Backdoor Roth in Vanguard question
Replies: 24
Views: 1573

Re: Backdoor Roth in Vanguard question

JPM, your link requires a reader to ask for access. I doubt that many will do that. If you cannot figure out a way to make it available without asking for permission, you could just report the numbers here. A hassle but do-able. As I mentioned, I've always done the 6000 or 5500 non-deductible contri...