The problem is, people focus on the form of the money. There's no difference between brand-new money recently invested and the stuff that's been there for years. In my tax-advantaged accounts I have 4x that amount in stocks. Should I sell all that because it's at "an all-time high"? Almost no one would recommend that.
You need to get out of the mindset that you can predict the markets. If you DCA for six months and the market does another December swoon, will you really feel better because you didn't put it in all at once?
I also think the recommendations to pay the mortgage down are poor. There's no rational reason to do that, it's all "you'll feel great!!!!"
Search found 7231 matches
- Mon Jul 01, 2019 5:39 pm
- Forum: Personal Investments
- Topic: Investing a windfall when the market is at “an all-time high?”
- Replies: 33
- Views: 5565
- Mon Jul 01, 2019 5:29 pm
- Forum: Personal Investments
- Topic: Mom wants to roll IRA to Roth, but lost records of contributions
- Replies: 22
- Views: 2679
Re: Mom wants to roll IRA to Roth, but lost records of contributions
Actually, a conversion is type of rollover.David Jay wrote: ↑Mon Jul 01, 2019 8:17 am Be careful with your terminology, it makes a difference. Throughout this thread you have called your Mon’s transaction a “rollover”. What your Mom is doing - moving funds from a tIRA to a Roth - is a “conversion”, not a rollover. If you researched rollovers, you have acquired the wrong instructions.
- Mon Jul 01, 2019 5:12 pm
- Forum: Personal Investments
- Topic: Setting up mega backdoor Roth - where to allocate funds?
- Replies: 8
- Views: 1040
Re: Setting up mega backdoor Roth - where to allocate funds?
Your reasoning is faulty. If you save the money rather than spend it on taxes, you'll have that money in the future to pay taxes. You should keep the normal contributions as deferred.
That being said, Mega Backdoor is good idea if it doesn't cost too much. Is this a solo plan? If so, then you don't have to worry about testing.
That being said, Mega Backdoor is good idea if it doesn't cost too much. Is this a solo plan? If so, then you don't have to worry about testing.
- Mon Jul 01, 2019 5:04 pm
- Forum: Investing - Theory, News & General
- Topic: What are you up YTD? [Year To Date]
- Replies: 5249
- Views: 900005
Re: What are you up YTD? [Year To Date]
It's not clear what you mean.J G Bankerton wrote: ↑Mon Jul 01, 2019 4:53 pm What does the OP mean by "up"? I'm up more than just my returns.
- Mon Jul 01, 2019 5:02 pm
- Forum: Personal Consumer Issues
- Topic: Life after COBRA - selecting new health insurance
- Replies: 37
- Views: 4890
Re: Life after COBRA - selecting new health insurance
Happened to notice that I had the Bronze lowest plan numbers repeated for the Silver lowest plan. Fixed that.
- Mon Jul 01, 2019 3:06 pm
- Forum: Investing - Theory, News & General
- Topic: What are you up YTD? [Year To Date]
- Replies: 5249
- Views: 900005
Re: Re:
Not as far as I have determined. Even the lowest exchange plan has higher monthly cost and deductible/OOP amounts.ruralavalon wrote: ↑Mon Jul 01, 2019 1:16 pmGoing off COBRA may decrease you health insurance premiums and overall health care costs.Earl Lemongrab wrote: ↑Mon Jul 01, 2019 1:01 pm Howver, now that I'm retired, my inflows to the portfolio are severely restricted (might be zero) and probably will go negative soon when I have to move off COBRA to other health insurance. Likely my YTD for this year will be pretty accurate. I haven't run the July numbers yet.
See discussion of this here: viewtopic.php?f=11&t=283685
As I'm leaning towards retiree medical at least for this year, that would be a minimum jump of $600+.
- Mon Jul 01, 2019 1:01 pm
- Forum: Investing - Theory, News & General
- Topic: What are you up YTD? [Year To Date]
- Replies: 5249
- Views: 900005
Re:
In order to compare apples-to-apples, shouldn't the number that matters here be the actual total return -- not the change in portfolio value counting contributions or withdrawals? Shades of the Beardstown Ladies! I have always freely admitted that my results are Beardstown accounting. I don't try to calculate XIRR for my investments because it's a lot of work for no value to me. I really don't care what my rate of return is. I have a portfolio that's largely index funds so I get what I get. I'm not fiddling with the allocation at all. Howver, now that I'm retired, my inflows to the portfolio are severely restricted (might be zero) and probably will go negative soon when I have to move off COBRA to other health insurance. Likely my YTD for ...
- Mon Jul 01, 2019 12:46 pm
- Forum: Personal Finance (Not Investing)
- Topic: Paying debt weekly rather than monthly
- Replies: 21
- Views: 2211
Re: Paying debt weekly rather than monthly
The bi-weekly payment ("one weird trick") scheme was just a way to obscure what was going on and to fool some people into thinking that they pay the same amount but save money. And we'll charge them for the privilege!
So if you want to pay early on your mortgage, and I'm usually in the "don't do that" camp, then definitely never use a paid service for it. Just follow the normal monthly schedule and make extra payments against principal at whatever amounts and intervals you like.
So if you want to pay early on your mortgage, and I'm usually in the "don't do that" camp, then definitely never use a paid service for it. Just follow the normal monthly schedule and make extra payments against principal at whatever amounts and intervals you like.
- Mon Jul 01, 2019 12:27 pm
- Forum: Investing - Theory, News & General
- Topic: Calculating VTSAX(or total stock) return without dividends reinvested
- Replies: 13
- Views: 2142
Re: Calculating VTSAX(or total stock) return without dividends reinvested
The OP stated that the goal was to show what the capital gains would be for the original investment. So price chart is what is needed in this case. People are bringing in irrelevant details for the given question. Obviously the dividends existed.
- Sun Jun 30, 2019 5:11 pm
- Forum: Investing - Theory, News & General
- Topic: Is anyone else worried about tech becoming too big/overvalued?
- Replies: 54
- Views: 5887
Re: Is anyone else worried about tech becoming too big/overvalued?
Nope. A core principal of my plan is that I have NO talent for timing the market. That includes sectors of the market. So I don't even know what tech is valued at.
Edit: "no talent".
Edit: "no talent".
- Sun Jun 30, 2019 5:08 pm
- Forum: Investing - Theory, News & General
- Topic: Calculating VTSAX(or total stock) return without dividends reinvested
- Replies: 13
- Views: 2142
Re: Calculating VTSAX(or total stock) return without dividends reinvested
Just look for price charts. For Morningstar, search for the fund. That will give you a growth chart. Click "More" and look at the new chart. There should be a pulldown on the left of the bar at the top of the chart that says Growth. Change that to Price. Set the time period. Here is an example:
VTSAX 10-year price chart
VTSAX 10-year price chart
- Sun Jun 30, 2019 4:43 pm
- Forum: Personal Finance (Not Investing)
- Topic: Paying debt weekly rather than monthly
- Replies: 21
- Views: 2211
Re: Paying debt weekly rather than monthly
Thanks folks. Just bought a house. 30 yr fixed. Got a letter in the mail advertising paying mortgage weekly would shave 12 years off the mortgage and therefore a ton of interest dollars. Why do you think that is worthwhile goal? You save interest at the expense of reducing your available money for investing. You could have saved even more interest with a 15-year loan, as that would have a lower rate. The way the weekly/bi-weekly schedules work is that you end up making one extra payment per year over monthly. So you can just do that. You sure don't need a third-party processor charging a fee. If you really want this, then calculate a monthly payment divided by 12 and add that much as principal each month. No need for weekly payments. If yo...
- Sun Jun 30, 2019 4:39 pm
- Forum: Personal Investments
- Topic: Moving from Vanguard to Merrill Edge
- Replies: 127
- Views: 21902
- Sat Jun 29, 2019 11:47 pm
- Forum: Investing - Theory, News & General
- Topic: After tax 401k contributions and in-plan conversions to Roth 401k
- Replies: 25
- Views: 2165
Re: After tax 401k contributions and in-plan conversions to Roth 401k
I wouldn't worry. If you retire early, you can access contributions from your Roth IRA without concern, and possibly the earnings. I would never pass up Roth savings for taxable.
- Sat Jun 29, 2019 4:48 pm
- Forum: Personal Finance (Not Investing)
- Topic: Vanguard intentionally delaying fund transfer to Fidelity DAF?
- Replies: 31
- Views: 4838
Re: Vanguard intentionally delaying fund transfer to Fidelity DAF?
But selling soon follows transfer. When I did it, I transferred ETFs from Merrill Edge to my Fidelity account first, then from there to the DAF.TropikThunder wrote: ↑Sat Jun 29, 2019 11:54 am Vanguard will still be collecting the ER on their mutual fund regardless of whether it’s held at Vanguard or Fidelity. A nefarious motive would be trying to stop you from selling it, not transferring it.
- Sat Jun 29, 2019 4:46 pm
- Forum: Investing - Theory, News & General
- Topic: After tax 401k contributions and in-plan conversions to Roth 401k
- Replies: 25
- Views: 2165
Re: After tax 401k contributions and in-plan conversions to Roth 401k
It's not clear what you don't understand. You make after-tax contributions. You then either do in-plan conversion or request a rolloverto send to your IRA(s).Wannaretireearly wrote: ↑Sat Jun 29, 2019 4:43 pm Urggh. Thanks. Still not crystal clear on this...
I've done backdoors so I know how to invest and convert that to Roth immediately without tax liability.
This new 401k example I'm not sure. Can someone who does this walk me thru this with baby steps? Much appreciated....
Much of detail is specific to your plan.
- Sat Jun 29, 2019 4:35 pm
- Forum: Personal Finance (Not Investing)
- Topic: 401k rolled over to IRA, co-mingled with non-deductible contributions, now rolling over to new 401k
- Replies: 9
- Views: 1034
Re: 401k rolled over to IRA, co-mingled with non-deductible contributions, now rolling over to new 401k
It seems like first doing a rollover of the pre-tax funds into a new IRA before rolling that again into the 401k would be a reliable way to go if they will not directly take that portion of money from my current single IRA, many thanks for that idea. Generally a rollover into a qualified plan doesn't involve them taking anything from the IRA. You have your IRA custodian generate a check that you send in. Sometimes if the same custodian is involved they might not do it directly. However, you can't roll the pretax amount into another IRA. It just doesn't work that way. You could roll an amount equal to the pretax holdings, but that hasn't separated anything. If the 401(k) is picky about amounts only coming from a rollover IRA, then there mig...
- Sat Jun 29, 2019 1:06 pm
- Forum: Personal Investments
- Topic: Best way to transfer shares to son
- Replies: 9
- Views: 1254
Re: Best way to transfer shares to son
Almost all custodians tracked basis for non-covered shares, they just didn't report to the IRS or guarantee the information. The OP can go to the G/L Unrealized tab of the account view to see the basis information if it exists.
- Sat Jun 29, 2019 12:58 pm
- Forum: Personal Investments
- Topic: Merrill Edge alternatives to Vanguard Money Market Funds
- Replies: 11
- Views: 2382
Re: Merrill Edge alternatives to Vanguard Money Market Funds
Is it in taxable? If so, then hold the cash somewhere else in a linked account.
- Sat Jun 29, 2019 12:53 pm
- Forum: Personal Investments
- Topic: Financial planning now that retired
- Replies: 65
- Views: 14921
Re: Financial planning now that retired
I would double-check that list. It's unusual for a plan to have all of those low-cost index funds but not an S&P or similar fund.
- Sat Jun 29, 2019 12:42 pm
- Forum: Personal Investments
- Topic: Has anyone recently transferred shares from Computershare to Vanguard?
- Replies: 27
- Views: 13691
Re: Has anyone recently transferred shares from Computershare to Vanguard?
Well, they still have a cost basis, just not one the custodian is required to track. However, every one I have used, including Computershare, did track the basis.anon_investor wrote: ↑Fri Jun 28, 2019 1:09 pm Lucky or unlucky for me they are for noncovered shares which have a 0 cost basis, so that was not a concern.
I transferred lots of non-covered assets over the years and basis always went along. With ACATS it often takes a week or so for that to catch up.
- Sat Jun 29, 2019 12:23 pm
- Forum: Investing - Theory, News & General
- Topic: "Alice's Adventures in Factorland"
- Replies: 209
- Views: 14686
Re: "Alice's Adventures in Factorland"
If the outperformance is due to risk, there should be no way to "arbitrage it away". After all, people have known of the greater risk and expected return of the stock market over bonds, and that hasn't gone away.David Althaus wrote: ↑Thu Jun 27, 2019 2:55 pm As stated here no one can predict the future. If you invest in SCV I'd ask myself some questions:
1. Since its past performance is pretty common knowledge has the premium been arbitraged away? If not arbitraged away am I willing to accept the higher risk associated with higher returns?
In fact if SCV is more risky and doesn't have greater expected return, then that is a major market inefficiency that could be exploited. EMH says that shouldn't happen.
- Sat Jun 29, 2019 12:10 pm
- Forum: Investing - Theory, News & General
- Topic: After tax 401k contributions and in-plan conversions to Roth 401k
- Replies: 25
- Views: 2165
Re: After tax 401k contributions and in-plan conversions to Roth 401k
It depends on specifics. How do the investment options in the 401(k) compare to the open market? Does your state have better protection against judgments for 401(k)s than IRAs?
In-plan is usually easier and can be cheaper. You also don't have to worry about time out of market, although you can mitigate that and for small amounts it probably doesn't matter. There might be lower fees.
Rollovers to IRAs allow splitting the earnings from basis, although if you do things with reasonable frequency that's not a big deal.
In-plan is usually easier and can be cheaper. You also don't have to worry about time out of market, although you can mitigate that and for small amounts it probably doesn't matter. There might be lower fees.
Rollovers to IRAs allow splitting the earnings from basis, although if you do things with reasonable frequency that's not a big deal.
- Fri Jun 28, 2019 1:20 pm
- Forum: Investing - Theory, News & General
- Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
- Replies: 7737
- Views: 1337483
- Thu Jun 27, 2019 5:04 pm
- Forum: Personal Investments
- Topic: New to investment
- Replies: 15
- Views: 1249
- Thu Jun 27, 2019 4:48 pm
- Forum: Personal Investments
- Topic: How is Dividend Yield calculated?
- Replies: 5
- Views: 1530
Re: How is Dividend Yield calculated?
To me, yield for a stock fund is next to worthless. What will you do with this information?
- Thu Jun 27, 2019 3:48 pm
- Forum: Investing - Theory, News & General
- Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
- Replies: 7737
- Views: 1337483
Re: The Final, Definitive Thread on Brokerage Transfer Bonuses
Open three accounts, make three transfers.JustinR wrote: ↑Thu Jun 27, 2019 1:55 pmWhat do you mean by multiple transfers?Earl Lemongrab wrote: ↑Thu Jun 27, 2019 12:32 pmI have received many from Etrade. I think they mean is that this particular one can only be used once. Like you can't do multiple transfers.JustinR wrote: ↑Thu Jun 27, 2019 3:40 am The fine print on the ETrade offer says "One promotion per customer."
Has anyone experienced this being enforced?
- Thu Jun 27, 2019 12:32 pm
- Forum: Investing - Theory, News & General
- Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
- Replies: 7737
- Views: 1337483
Re: The Final, Definitive Thread on Brokerage Transfer Bonuses
I have received many from Etrade. I think they mean is that this particular one can only be used once. Like you can't do multiple transfers.JustinR wrote: ↑Thu Jun 27, 2019 3:40 am The fine print on the ETrade offer says "One promotion per customer."
Has anyone experienced this being enforced?
- Wed Jun 26, 2019 5:11 pm
- Forum: Personal Consumer Issues
- Topic: Life after COBRA - selecting new health insurance
- Replies: 37
- Views: 4890
Re: Life after COBRA - selecting new health insurance
Yes, there is a Medicare supplement plan, currently $86/month. I don't know much about its features.Broken Man 1999 wrote: ↑Wed Jun 26, 2019 2:41 pm Does your retiree insurance options include Medicare plans when you become eligible? Hopefully they have some cheaper plans for you when you get Medicare eligible.
- Wed Jun 26, 2019 2:08 pm
- Forum: Personal Consumer Issues
- Topic: Life after COBRA - selecting new health insurance
- Replies: 37
- Views: 4890
Re: Life after COBRA - selecting new health insurance
That's what it says. I can understand the HMO being cheaper than PPO, but why the HDHP is highest I can't really figure.deltaneutral83 wrote: ↑Wed Jun 26, 2019 1:20 pm Is this $1,600+ a month in premiums? I guess the OOP max at $2k isn't all that bad I just haven't seen the monthly premium nearly match the annual OOP max
- Wed Jun 26, 2019 2:07 pm
- Forum: Personal Consumer Issues
- Topic: Life after COBRA - selecting new health insurance
- Replies: 37
- Views: 4890
Re: Life after COBRA - selecting new health insurance
I don't know. The HDHP for employees was, but I don't know about this. As it was the most expensive (why?), I didn't really worry about that.NotWhoYouThink wrote: ↑Wed Jun 26, 2019 11:20 amSince this has HDHP in the title it is HSA eligible, right?UHC-HDHP - PPO: $1,616.32; deductible: $1,500/$1,500; OOP: $2000/$4000
- Tue Jun 25, 2019 6:10 pm
- Forum: Forum Issues and Administration
- Topic: Extremely Short 'Stay Logged In' Time
- Replies: 45
- Views: 12518
Re: Extremely Short 'Stay Logged In' Time
I see that you're correct, it's "Remember Me". I don't know if that changed with one of the updates or I misremembered. I rarely see that because I never log out. As far as mobile, I can't comment.
- Tue Jun 25, 2019 6:07 pm
- Forum: Personal Investments
- Topic: Botched transfer? Security sold instead of transferred
- Replies: 12
- Views: 1252
Re: Botched transfer? Security sold instead of transferred
Yeah, that's typical. Most won't transfer the partial shares (I'm not entirely sure why). It's one reason why I don't auto-reinvest ETFs.michaeljc70 wrote: ↑Tue Jun 25, 2019 8:51 am They sold only the PARTIAL shares I had before the transfer! Sorry, I missed that.
- Tue Jun 25, 2019 5:30 pm
- Forum: Investing - Theory, News & General
- Topic: Investment Horizon
- Replies: 5
- Views: 958
- Tue Jun 25, 2019 5:30 pm
- Forum: Personal Investments
- Topic: After Tax 401(k) Rollover
- Replies: 18
- Views: 2085
Re: After Tax 401(k) Rollover
Some plans allow rolling TIRAs in. In that case you can split the rollover then roll the earnings back. That's what I did with my first big Mega as I had a lot of accumulated earnings.
- Tue Jun 25, 2019 4:16 pm
- Forum: Personal Consumer Issues
- Topic: Life after COBRA - selecting new health insurance
- Replies: 37
- Views: 4890
Re: Life after COBRA - selecting new health insurance
I'm back with more information. I had a talk with a benefits rep. Here is what I learned.
1. People above were correct. I have until 60 days after COBRA ends to elect retiree medical through MegaCorp. So the deadline is in October, although I wouldn't wait that long.
2. Retiree medical is only available when you lose workplace coverage. So if I elected to take an exchange plan I would not have a chance in the future to switch to retiree medical unless I got another job and then left it or something.
Based on #2, and some other factors, I think it makes the most sense to take one of those retiree plans. That gives me a chance to evaluate things.
Thoughts on that and input on which plan makes the most sense would be welcome.
1. People above were correct. I have until 60 days after COBRA ends to elect retiree medical through MegaCorp. So the deadline is in October, although I wouldn't wait that long.
2. Retiree medical is only available when you lose workplace coverage. So if I elected to take an exchange plan I would not have a chance in the future to switch to retiree medical unless I got another job and then left it or something.
Based on #2, and some other factors, I think it makes the most sense to take one of those retiree plans. That gives me a chance to evaluate things.
Thoughts on that and input on which plan makes the most sense would be welcome.
- Tue Jun 25, 2019 3:32 pm
- Forum: Personal Finance (Not Investing)
- Topic: Question on Roth partial rollover
- Replies: 2
- Views: 455
Re: Question on Roth partial rollover
You have to complete indirect rollovers within 60 days.
- Tue Jun 25, 2019 3:31 pm
- Forum: Forum Issues and Administration
- Topic: Extremely Short 'Stay Logged In' Time
- Replies: 45
- Views: 12518
Re: Extremely Short 'Stay Logged In' Time
If you're not selecting that, then you get logged out of course. When you choose "stay logged in" you can just log out manually when done.
- Tue Jun 25, 2019 3:12 pm
- Forum: Forum Issues and Administration
- Topic: Extremely Short 'Stay Logged In' Time
- Replies: 45
- Views: 12518
Re: Extremely Short 'Stay Logged In' Time
What is a design choice, exactly? It's not extremely short login time, as many of us don't see that. My own anecdotal input is that I don't experience forced logout more than about once a month at the most.
The forum mostly uses PHPBB with default settings. Probably here as well. I know some cases of logout turned out to be people not selecting the "stay logged in" setting. So the option is there to avoid auto-logout, although it seems not to work for everyone.
- Mon Jun 24, 2019 11:45 pm
- Forum: Forum Issues and Administration
- Topic: Extremely Short 'Stay Logged In' Time
- Replies: 45
- Views: 12518
Re: Extremely Short 'Stay Logged In' Time
Not sure what you mean. Most of us don't experience this, so it definitely isn't a feature. Some people do.elpollo wrote: ↑Mon Jun 24, 2019 3:47 pm hmm, 2 years of posts about being auto-logged out, sure seems like a 'feature not a bug' to me.
maybe this could be a 'pinned' post
BH seems to be the only non-banking site that I experience doing this , no matter what browser nor settings.
How about an option to change it to 6 hours or something
- Mon Jun 24, 2019 11:41 pm
- Forum: Personal Investments
- Topic: 401(k) Rollover Options Advice
- Replies: 9
- Views: 1214
Re: 401(k) Rollover Options Advice
My point is that, IN THE YEAR the conversion took place, the $5700 is double taxed. No. It's not the same money. It's like you poured a cup of milk into a gallon of water, mixed it around, then poured out a cup of the mixture. It's not a cup milk of anymore, and thinking of it as a cup of milk only confuses the situation. Nothing ever gets taxed twice here. Every time you convert, there will be some of the conversion that is pretax (which could have been there for years or recently added) and some after-tax (which could have been there for years or recently added). When you added 6000 to the IRA, it got mixed all in with what was there. When you did the conversion, you came up with a mix that was some of what you just put in and some that ...
- Mon Jun 24, 2019 2:07 pm
- Forum: Personal Investments
- Topic: After Tax 401(k) Rollover
- Replies: 18
- Views: 2085
Re: After Tax 401(k) Rollover
Wrong. A conversion is a rollover. That applies whether it's from a qualified plan to a Roth, or from TIRA to a Roth. It just happens to be a taxable rollover.
- Mon Jun 24, 2019 1:56 pm
- Forum: Personal Investments
- Topic: Reverse Rollover IRA to 401K Question
- Replies: 7
- Views: 688
Re: Reverse Rollover IRA to 401K Question
Depending on plan rules, you might be able to roll it back out before you leave. The only contributions restricted by law are employee pretax or Roth contributions. Anything else is eligible to be distributed at the plan's discretion.
MegaCorp allows distribution of rollover contributions at any time. You can distribute company matching but they would then suspend matching for six months. The best one is after-tax contributions, which you can roll without fees into a Roth IRA (Mega Backdoor Roth).
MegaCorp allows distribution of rollover contributions at any time. You can distribute company matching but they would then suspend matching for six months. The best one is after-tax contributions, which you can roll without fees into a Roth IRA (Mega Backdoor Roth).
- Mon Jun 24, 2019 1:49 pm
- Forum: Personal Investments
- Topic: Moving from multiple accounts to Merrill Edge or Premium?
- Replies: 24
- Views: 3083
Re: Moving from multiple accounts to Merrill Edge or Premium?
Not sure why people are talking about management. The OP didn't mention it. Merrill Edge is a discount brokerage and it is perfectly set up for DIY investing. I have a lot of my assets there. I have generated thousands in bonuses from them. The OP is already set up for Preferred Rewards, so no problem there.
- Mon Jun 24, 2019 1:46 pm
- Forum: Personal Investments
- Topic: 401(k) Rollover Options Advice
- Replies: 9
- Views: 1214
Re: 401(k) Rollover Options Advice
Umm, no. No double taxation. Just taxation at a high tax rate on a portion of each conversion. That does usually make backdoor Roth not advantageous. Umm, Earl, if let us say the poster converted $6000 from non-deductible to Roth, and this constitutes 5% of the total tIRA amount: the $6k was contributed on a n-d basis so implicitly tax had been already paid; plus the Roth conversions will add $5700 to taxable income that is taxed again. So in that sense, the $6000 IS double taxed in the year such conversion is made (while there is a traditional IRA in place already) . Well, at least the $5700 is. Did I get it wrong? Yes, you got it wrong. Once money goes into the IRA it's mixed together, and the 6k after-tax sets or increases the basis of ...
- Mon Jun 24, 2019 12:29 pm
- Forum: Personal Investments
- Topic: 401(k) Rollover Options Advice
- Replies: 9
- Views: 1214
Re: 401(k) Rollover Options Advice
Umm, no. No double taxation. Just taxation at a high tax rate on a portion of each conversion. That does usually make backdoor Roth not advantageous.lakpr wrote: ↑Sun Jun 23, 2019 6:24 pm If you are in the 35% tax bracket, you are beyond the phase out limits for direct contributions to Roth IRA, so you need to resort to Backdoor Roth. If you roll the old 401k to a Rollover IRA, you will get caught by the prorata rule, which effectively will tax that IRA contribution twice. In other words, the backdoor Roth option would be closed forever
- Sun Jun 23, 2019 3:49 pm
- Forum: Personal Finance (Not Investing)
- Topic: Personal liability umbrella: how much coverage?
- Replies: 9
- Views: 1632
Re: Personal liability umbrella: how much coverage?
Personally I think that's too much coverage. Is your home equity at risk? This varies by state. Amounts in 401(k)s are protected from judgments and bankruptcy.
The rule of thumb about coverage equal to assets has no real basis.
The rule of thumb about coverage equal to assets has no real basis.
- Sun Jun 23, 2019 3:29 pm
- Forum: Personal Consumer Issues
- Topic: How do you approach tipping at carry-out restaurants
- Replies: 111
- Views: 10908
Re: How do you approach tipping at carry-out restaurants
Another one of these threads? Put tip carry out into the Google search box and get a dozen past threads on the exact topic. Same basic replies.
- Sat Jun 22, 2019 2:53 pm
- Forum: Personal Consumer Issues
- Topic: Tree stump, can't use a stump grinder. Solution?
- Replies: 64
- Views: 7982
- Sat Jun 22, 2019 11:31 am
- Forum: Personal Finance (Not Investing)
- Topic: Amended returns - overpaid LT cap gains
- Replies: 5
- Views: 531
Re: Amended returns - overpaid LT cap gains
Don't forget that qualified dividends use that same 0% tax space. As mentioned, if they went through the various worksheets for the forms, all that should be calculated correctly.