Search found 56 matches

by dillrob
Fri Jan 24, 2025 8:53 am
Forum: Personal Investments
Topic: 1099-Q for roth conversion
Replies: 16
Views: 3305

Re: 1099-Q for roth conversion

The 1099Q I received is similar EXCEPT Box 6 is checked which is incorrect. The 529 designated beneficiary is the same as the Roth IRA recipient. I emailed Fidelity requesting a corrected 1099Q.
by dillrob
Sat Jan 11, 2025 7:22 am
Forum: Personal Finance (Not Investing)
Topic: Who has done a 529 to Roth IRA?
Replies: 14
Views: 1541

Re: Who has done a 529 to Roth IRA?

My understanding is that the 529 contribution has to meet the recipient's own Roth IRA annual contribution limit and eligibility. For 2025 the maximum amount a person under 50 can only contribute to a Roth IRA is $7,000. The amount transferred counts toward this total so if the recipient contributes $4000 themself, for instance, only $3000 can be contributed from the 529 plan at most. Also, the recipient has to have earned income in order to be eligible to make Roth contributions and the $7,000 total starts to phase out at AGIs over $150,000.
by dillrob
Fri Jan 10, 2025 9:45 am
Forum: Personal Investments
Topic: 1099-Q for roth conversion
Replies: 16
Views: 3305

1099-Q for roth conversion

Does anyone know what the proper 1099-Q codes should be for a 529-to-roth conversion where the funds are directly transferred from the 529 plan to the 529 plan's beneficiary's Roth IRA?
I am reviewing the recently issued 1099-Q for a 529-to-roth conversion and the distribution amount (as well as the basis and gain) is correct, line 4 box is checked (which appears to be correct), line 6 box is checked (which appears to be wrong since the recipient is the same as the 529 plan beneficiary) and the line 6 distribution code is 1.
I'd appreciate input from anyone with experience with the correct 1099-Q designations for such a conversion and whether the above appears to be correct. Thanks.
by dillrob
Tue Nov 19, 2024 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Letter from PA Dept of Revenue
Replies: 9
Views: 939

Re: Letter from PA Dept of Revenue

p1db wrote: Tue Nov 19, 2024 8:34 am You should create an online account with PA dept. of revenue and check your 2020 tax return records.
https://www.mypath.pa.gov/

Did you move out of PA in 2020? If you did, the resident credits will get adjusted downwards.
Yes, I did move out of PA in 2020. However, I followed the Schedule G-L instructions and only applied for a credit for the 2 months I no longer resided in PA.
by dillrob
Tue Nov 19, 2024 8:16 am
Forum: Personal Finance (Not Investing)
Topic: Letter from PA Dept of Revenue
Replies: 9
Views: 939

Re: Letter from PA Dept of Revenue

The letter from the PA DOR doesn't state that I have to pay anything even though it shows that the overall liability has increased. That is the only reason I'm hesitant to call. I'm not sure if this is merely an informational letter and they do not plan to follow-up since I no longer reside in Pa. Not likely, but as of now I've only received the letter delineating a line by line summary of the reported values and adjusted values.
by dillrob
Tue Nov 19, 2024 7:31 am
Forum: Personal Finance (Not Investing)
Topic: Letter from PA Dept of Revenue
Replies: 9
Views: 939

Letter from PA Dept of Revenue

I received a letter from the PA DOR stating that they adjusted my 2020 Personal Income tax return. The letter adjusts (reduces) the Resident Credit amount and results in a significant additional Overall Liability. However, there are no instructions, explanation as to how this amount was determined or how to proceed. As far as I can tell my calculations are correct. There is a telephone number listed. What are others experiences with letters such as these and suggested actions. Should I wait for further correspondence and an opportunity to see their calculations and hopefully dispute this or contact them at the number. Thanks
by dillrob
Thu May 16, 2024 8:13 am
Forum: Investing - Theory, News & General
Topic: Questioning our bond allocation
Replies: 12
Views: 1804

Re: Questioning our bond allocation

I have recently been considering this issue. I am 60 and my spouse and I have been retired 5 years now. Our AA is 70%/20%/10% (70% equities, 20% bonds, and 10 % fixed income). The fixed income is a bridge to Medicare so we can keep our MAGI manageable. I am considering what our Bond allocation should be in the future. Rather than picking a somewhat arbitrary % of NW based on age and personal risk preferences, I am looking at bonds to reduce my sequence of returns risks during deaccumulation. Therefore, I am targeting my bond allocation at 7 - 10 years of expenses so that I can liquidate bond holdings for expenses in the event of a significant equity downturn. Presumably this timeframe would allow of an equity rebound to some degree and, at ...
by dillrob
Mon Nov 13, 2023 7:02 am
Forum: Personal Finance (Not Investing)
Topic: Amica Dividend Policy - Too Good To Be True?
Replies: 32
Views: 8706

Re: Amica Dividend Policy - Too Good To Be True?

Is the amount paid by AMICA treated like an ordinary dividend for tax purposes?
by dillrob
Wed Aug 30, 2023 10:12 am
Forum: Personal Consumer Issues
Topic: Retire to Delaware?
Replies: 13
Views: 2900

Re: Retire to Delaware?

I retired and moved to Delaware a few years ago from the Philadelphia suburbs (about 2 1/2 hours away) when my wife and I were 56. We are in a large resort community a few miles west of Fenwick Island (the southernmost beach town in Delaware). The community has a full array of activities such as golf, tennis, pickleball, gym, pools, watersports in the bay, organized game days and trivia nights, restaurants and a unique outdoor music venue that attracts national acts all summer long. It's not an active adult community (more like a hyperactive adult community), but a resort where there are some rentals throughout the summer. It's 4 miles to the beach but there is no need to leave the community during the busy summer weekends if you don't want ...
by dillrob
Sat Jul 29, 2023 1:30 pm
Forum: Personal Consumer Issues
Topic: Making the move from Obamacare to Medicare. When to stop ACA coverage and subsidies
Replies: 39
Views: 4249

Re: Making the move from Obamacare to Medicare. When to stop ACA coverage and subsidies

What I find confusing is how the PTC is calculated for a medicare transition year such as this. For example, I will start Medicare in March 2025 and my wife in October 2025. So, for 2 months there will be 2 of us with ACA coverage, 7 months just one spouse with coverage and 3 months with none of us having ACA coverage. Is the PTC based on our household income as compared to the federal poverty level for a family of 2 even though for the majority of the year only one of will have coverage?
by dillrob
Wed Jul 05, 2023 7:46 am
Forum: Personal Investments
Topic: Fixed Income Options for $500k from Maturing MYGA’s
Replies: 15
Views: 1793

Re: Fixed Income Options for $500k from Maturing MYGA’s

Not directly responsive to your question but a consideration.

If you are planning to continue to manage your MAGI for ACA purposes then you may have to deal with MYGAs or another deferred income product for a few more years as I suspect that $500k of maturing MYGAs will yield allot of taxable interest.

If that is the case, then you may need to 1035 some/all of the MYGAs for a few more years thus pushing this issue done the road some.
by dillrob
Sun May 21, 2023 7:27 am
Forum: Personal Finance (Not Investing)
Topic: Buying Home w/ Partner
Replies: 89
Views: 10012

Re: Buying Home w/ Partner

Hopefully I can revive this thread and obtain some information from the community. My son and his girlfriend (who intend to marry each other in a few years) are buying a house together. They will each pay half the down payment, closing costs, mortgage, utilities and maintenance. The contracts available on the internet for this situation are woefully inadequate. I plan on drafting an agreement for a licensed attorney to review, adapt and put in the correct format for recording.
Here are the topics I plan to have the agreement address in no particular order:
(1) The agreement should be legally enforceable and recorded with the deed as a Restrictive Covenant,
(2) each party will be required to pay half of all costs,
(3) there will be a ...
by dillrob
Sat May 20, 2023 8:56 am
Forum: Personal Finance (Not Investing)
Topic: will vs revocable trust
Replies: 134
Views: 13014

Re: will vs revocable trust



Spouse and I are (re)writing our estate plan; we currently have a 20 year old will that needs to be updated.

Speaking with lawyers who may write the docs, the topic of a revocable trust has come up. I've done a tiny bit of reading...is a revocable trust the preferred route? Are there specific circumstances where a will or trust would be preferred?

Thoughts and personal experiences would be welcomed. Thanks.


Revocable trusts make sense in some cases and in some states, but not in most cases in most states. You can put the same dispositive provisions (who gets what) either in a revocable trust or in a Will.

They make sense in states where probating a Will is expensive (the court fee in Delaware is 1.75% of the estate, not counting ...
by dillrob
Wed Feb 01, 2023 8:12 am
Forum: Personal Investments
Topic: Where to put $700k cash, retired yesterday
Replies: 26
Views: 7222

Re: Where to put $700k cash, retired yesterday

Not exactly responsive to your where to park question, but if you don't need access to all of the cash for a number of years you should consider doing Roth conversions up to the top of the 24% bracket since, at some point, the market will recover (and the tax rates may go up in a couple years when the tax cuts are scheduled to expire) so you will get more bang for your tax buck. Once in the Roth you have most of the options available already suggested about "where to park" your funds. Bob
by dillrob
Wed Jan 18, 2023 6:53 am
Forum: Personal Finance (Not Investing)
Topic: Do I need to file ANOTHER tax return for deceased parent?
Replies: 7
Views: 1226

Re: Do I need to file ANOTHER tax return for deceased parent?

State requirements may be lower than the federal threshold such as in Pa so make sure you check your state's filing requirement for an Estate's Income (I believe, for example, Pa has a filing requirement for as little as $33 dollars in income from an estate).
by dillrob
Sun Jan 15, 2023 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Prepay lease potential risk?
Replies: 17
Views: 2446

Re: Prepay lease potential risk?

Thanks for the information.
Based on the replies the potential benefits do not outweigh the risk of losing some or all of the prepayment or even cap cost reduction.
Bob
by dillrob
Fri Jan 13, 2023 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Prepay lease potential risk?
Replies: 17
Views: 2446

Prepay lease potential risk?

I'm considering prepaying for a lease and am concerned about what happens if the leased vehicle is totaled. Will I be refunded a prorata amount of the prepayment?

Similarly, if instead of prepaying the lease I put a large amount down, is any of this cap cost reduction refunded if the car is totaled?
by dillrob
Thu Nov 17, 2022 9:19 am
Forum: Personal Consumer Issues
Topic: Best EV for around $50k, or RAV4 Prime???
Replies: 133
Views: 19565

Re: Best EV for around $50k?

cmr79 wrote: Mon Nov 14, 2022 12:48 pm If you choose a vehicle and are willing to wait, you can get just about anything at MSRP if you order. I guess you pay either way...either in cash today, or in a 3-12 month delay!
Is this true for the RAV4 Prime as well?
by dillrob
Mon Oct 17, 2022 7:59 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 7425
Views: 1810267

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

This warning is displayed when purchasing I Bonds for another recipient (i.e., gift iBond):

IMPORTANT - As stated in the Code of Federal Regulations:

The principal amount of book-entry savings bonds that you may acquire in any calendar year is limited to $10,000 for Series EE savings bonds and $10,000 for Series I savings bonds. Any purchase in excess of $10,000 is in violation of the regulation and will be refunded.

The excess bond(s) will be removed from your TreasuryDirect account and refund will be made to the bank account of record. Continued violation of federal regulations may cause your TreasuryDirect account to be closed/suspended.

Helpful tips:

The limit is applied per social security number (SSN) of the first-named ...
by dillrob
Sat Oct 15, 2022 10:00 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 7425
Views: 1810267

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

TD website says it will be down Sunday morning so hopefully they are planning on fixing the glitch.
by dillrob
Tue Oct 11, 2022 7:24 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 7425
Views: 1810267

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)


GIFT LIMIT ISSUE
My spouse purchased a $10K I-Bond for herself earlier this year.
I purchased a $10K I-Bond gift for her (POD me) earlier this year (it's sitting in my Gift Box).
I am now trying to purchase a 2nd $10K gift bond for her but I'm getting the error "Annual Limit Exceeded" ???
I've triple-checked the registrations, SS#'s, gift designations, etc and can NOT figure out what I'm missing?
She has also tried to do the opposite (purchase a 2nd gift for me) but is getting the same error message.
I don't see anything posted online about a recent change to the gift purchase maximums?
Their office is closed today (Columbus Day) so no phone support until tomorrow ... assuming I can get thru.
Any thoughts?


I received the same error ...
by dillrob
Tue Oct 04, 2022 7:52 am
Forum: Personal Investments
Topic: MYGA Insurance companies hurricane loss risk
Replies: 3
Views: 667

MYGA Insurance companies hurricane loss risk

I am in the market for some MYGAs with 3 to 5 year durations and am concerned that the insurance company ratings may not reflect any potential exposure related to the hurricane Ian losses. I understand that the insurance companies that offer MYGAs have published ratings but these ratings were likely determined 6 months ago. Is there a way to determine if an issuing insurance company has exposure to these hurricane losses other than waiting for re-ratings to be issued? Thanks, Bob
by dillrob
Fri Sep 17, 2021 9:24 am
Forum: Personal Finance (Not Investing)
Topic: ACA Subsidy / Roth Conversion
Replies: 28
Views: 3119

Re: ACA Subsidy / Roth Conversion

Another data point is the estimated healthcare cost provided by healthcare.gov. This rough estimate considers estimated healthcare usage (high, med, or low) and is based on the healthcare plan you choose. The net premium is included in the calculation and this is based off you Modified AGI. You have to have a good estimate of your MAGI. This may be more than you regular AGI and is NOT your taxable income.

The reason I suggest this is that in addition to the premium costs the estimated cost of healthcare itself is higher for a plan based on $115,000 MAGI than for a plan based on $34,400 MAGI (based on 2 adults) since the latter can have a $0 deductible and cost sharing reductions while the former will not.

Although it's a rough estimate it ...
by dillrob
Tue Aug 17, 2021 8:48 am
Forum: Personal Finance (Not Investing)
Topic: I'm 70 Years Old and I Can't Spend My Savings
Replies: 418
Views: 72928

Re: I'm 70 Years Old and I Can't Spend My Savings

There is nothing inherently wrong with only spending for needs and what you are comfortable splurging on regardless of your account balance.

Realize that this dilemma is ultimately a matter of who will spend the money not whether it will be spent.

Know with 100% certainty that it will be spent. By the government and your heirs.

Even if you do not want to spend on yourself you should at least take control of this decision and identify charities and family member you'd prefer spend your money and donate accordingly.

As "Rush" succinctly stated, "if you choose not to decide, you still have made a choice." If you are OK with this, then no action needed. This is your choice.
by dillrob
Mon Jul 26, 2021 8:34 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion worth it
Replies: 23
Views: 3587

Re: Roth conversion worth it

Eagle33 -

Yes, I considered the tax effects on the decision. Even assuming current brackets the conversion makes sense from a purely financial perspective. However, since we may not need the Roth in the future (due to large tax deferred accounts that have to be exhausted and will meet our needs), the financial benefit will likely not be realized by us. Thus, the present cost may not be worthwhile unless (1) we fully use QCDs in the future and thus require some roth and brokerage funds to meet our needs or (2) we incur this present cost for the benefit of our heirs. At this point we don't anticipate QCDs in the full amount of our RMD. We'll will do some but not at 100%. Also, our heirs should be in a lower tax bracket and would not benefit ...
by dillrob
Mon Jul 26, 2021 8:25 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion worth it
Replies: 23
Views: 3587

Re: Roth conversion worth it

afan -

At 65 I plan to withdraw from IRA/401(k) up to the top of the then current base IRMAA band to spend down these accounts since in the future (SS at 70 and RMDs at 72) I should be in a higher tax bracket. At this point the base IRMAA tops out around $176,000. This is more than I plan to need but worth the additional withdraw to spend down these accounts somewhat. At 72 RMDs may require larger withdraws.
by dillrob
Sat Jul 24, 2021 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion worth it
Replies: 23
Views: 3587

Re: Roth conversion worth it

Woodspinner -


"How big is your TDA portfolio? The larger the portfolio the more valuable the tax arbitrage will be.

How much are you relying on the portfolio for your expenses. The more you need it the less valuable the Roth Conversion arbitrage will be (e.g. you will naturally be spending it down),"

It's not that I will need the TDA portfolio but that I will have to use it. As you note, this reduces the arbitrage. My relatively large tax deferred position actually acts against doing the conversion since my RMDs from the TDA portfolio (in addition to social security) will more than cover my future expenses. This means I will not have to tap the roth rendering the arbitrage useless to me. Again, good for my heirs, but not beneficial for ...
by dillrob
Sat Jul 24, 2021 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion worth it
Replies: 23
Views: 3587

Re: Roth conversion worth it

Thanks for the replies.

Considering everything, the additional 2022 $8,100 cost (fed taxes, state taxes and ACA costs (both PTC and CSR based on estimated costs from healthcare.gov website) will conservatively yield about $7,000 more when I'm 75 (2% growth over inflation, 24% fed and 6% state). Clearly good from a pure dollar perspective.

Our heirs will likely be in a lower bracket so leaving funds in a roth is not going to be as beneficial to them. As a matter of fact, we'll be spending down our ira/401k starting at 65 and increasingly at 72. If all goes well, we will have allot of this spent or gifted before our demise leaving the untouched roth (and other assets) to our heirs.

I am leaning heavily toward the $8,100 bird in the hand as ...
by dillrob
Sat Jul 24, 2021 8:16 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion worth it
Replies: 23
Views: 3587

Roth conversion worth it

I have a somewhat unique situation that has me questioning whether to do a roth conversion next year. I am an early retiree (currently 58) and am managing my MAGI to qualify for low cost healthcare via the ACA. I ran some numbers and have to decide whether converting $44,000 of my taxable IRA is worth the estimated additional $8,000 in federal and state taxes, and healthcare costs for 2022 ($9,600 vs $1,600). Assuming a higher federal tax bracket in the future (which is reasonable considering I will have an AGI near $200k once my RMDs start at 72) then the roth conversion certainly makes sense just considering the future after tax returns. However, I will probably not have to withdraw from my Roth as I will need to start spending down my ...
by dillrob
Fri Jul 02, 2021 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Alliant 3/2.5% card - any experience? [Now a "no annual fee" card]
Replies: 147
Views: 22809

Re: Alliant 3/2.5% card - any experience? [Now a "no annual fee" card]

None of my posts state I would not do business with Alliant.

I plan to open the checking account and go through the monthly qualification transfers.

I still want a pro-rate refund since I paid for 12 months of benefit (without having a checking account and monthly transfers) and only received 4 months of benefit.

It's that simple.
by dillrob
Thu Jul 01, 2021 9:48 am
Forum: Personal Finance (Not Investing)
Topic: Alliant 3/2.5% card - any experience? [Now a "no annual fee" card]
Replies: 147
Views: 22809

Re: Alliant Visa now limiting cash back

I paid the fee for an annual benefit. I am no longer entitled to that benefit unless I go through additional steps each month.

It's that simple. We had a deal that Alliant isn't living up to.

I agree that this is a good deal if someone is signing up new, but not a good deal for someone who already paid for this benefit (assuming under $10k/month) like myself.
by dillrob
Tue Jun 29, 2021 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Alliant 3/2.5% card - any experience? [Now a "no annual fee" card]
Replies: 147
Views: 22809

Re: Alliant Visa now limiting cash back

I inquired about a pro-rata refund of my $59 annual fee paid in March.

Alliant stated that they would NOT issue a pro-rata refund. I'm not sure how this is fair or even legal as I paid $59 for an ANNUAL agreement - 2.5% on my card up to $10,000. They are no longer doing this so they are not living up to their end of the bargain hence my pro-rata refund request.

Anyone else in the same situation? If so, I would suggest contacting Alliant as well.
by dillrob
Thu Jun 24, 2021 6:02 am
Forum: Personal Finance (Not Investing)
Topic: Alliant 3/2.5% card - any experience? [Now a "no annual fee" card]
Replies: 147
Views: 22809

Re: Alliant 2.5% Credit Card now has no annual fee

Anyone know if Alliant will be refunding half of the annual fee?
by dillrob
Fri Aug 21, 2020 7:05 am
Forum: Personal Investments
Topic: Fidelity Deferred Annuity
Replies: 8
Views: 912

Re: Fidelity Deferred Annuity

Thanks for the replies. I was planning to invest in a significant portion in equities in the annuity due to the time horizon. Accordingly the point about swapping LTCG tax treatment for ordinary income is an important consideration that I overlooked. I can mitigate this tax impact by investing in bond funds inside the annuity and adjust my post tax brokerage account bond holdings accordingly maintaining my overall AA. Thanks again. Bob
by dillrob
Thu Aug 20, 2020 9:34 am
Forum: Personal Investments
Topic: Fidelity Deferred Annuity
Replies: 8
Views: 912

Fidelity Deferred Annuity

Last year I rolled over a variable insurance policy into a Fidelity deferred annuity. I will be realizing a gain from a property sale and do not anticipate needing access to these funds for 10-15 years. Since I’m retired I do not have access tax deferred investment vehicles so I am considering adding the proceeds from the property sale to the deferred annuity (or opening a separate deferred annuity) to provide for tax free growth until I either withdraw the funds or annuitize the balance the future.

Are there any issues, concerns or gotchas that I should be aware of with this plan? Would I be better to utilize a separate account?

Thank you in advance for your valued opinions.
by dillrob
Wed Jun 24, 2015 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: umbrella coverage premiums
Replies: 34
Views: 5727

umbrella coverage premiums

Hi - I was wondering if anyone experienced a significant premium increase for their umbrella policy this year. I have a $2million policy and was paying $484 (which I didn't think was that great). I just received my renewal and it increased to $695. No claims. We added a new driver, but that amount seems really high for a $2million policy. Are rates going up or is this 44% increase merely due to this new driver? Anyone else have this experience? Lastly, I plan to shop around now so please let me know if you are pleased with your rate and who you are insured with. Thank you.
by dillrob
Mon Mar 09, 2015 12:54 pm
Forum: Personal Consumer Issues
Topic: Home workouts and motivation
Replies: 60
Views: 7815

Re: Home workouts and motivation

As previously noted, you should consider triathlon. You already participate in 2 of the 3 disciplines. There are many triathlon clubs which offer group rides, runs, swims, cross training and social events. There is also a big focus on nutrition - triathlon's 4th discipline. Though this doesn't help with home work-outs per se, there is a tremendous amount of motivation and support offered by the club during training and events. Also, training in multiple disciplines tends to be inherently less boring. Good luck.
by dillrob
Fri Jan 30, 2015 8:23 am
Forum: Personal Consumer Issues
Topic: cvt transmissions
Replies: 67
Views: 11720

Re: cvt transmissions

homermtb wrote:2006 nissan murano here. I 've had multiple issues with the cvt that Nissan wouldn't cover. Total lemon. The issues started at around 40-60k miles. I'm at 110k miles and praying I get another 20k.
You should get your car to Nissan ASAP since the extended 10 year/120,000 warranty expires soon for you. I had a friend who paid for a new Murano CVT out of pocket and got reimbursed by Nissan. If the issues are performance related (i.e., you don't like the feel or responsiveness) then they probably won' t cover it. If it is actually defective they should cover it and I'd make another run at them and escalate if it is defective.
by dillrob
Fri Jan 30, 2015 8:18 am
Forum: Personal Finance (Not Investing)
Topic: 2.875% mortgage pay-off financially justifiable?
Replies: 64
Views: 14282

Re: 2.875% mortgage pay-off financially justifiable?

Thanks for the input and advice. Emotions aside, the general consensus is that it makes more financial sense not to pay off the mortgage at this point since there are equivalent (from a risk perspective) higher yielding alternatives.
by dillrob
Thu Jan 29, 2015 3:27 pm
Forum: Personal Consumer Issues
Topic: cvt transmissions
Replies: 67
Views: 11720

Re: cvt transmissions

About four years ago Nissan automatically extended CVT warranties from 5 years/60,000 miles to 10 years/120,000 due to issues with some early CVTs (primarily Murano) and the negative perceptive these issues were creating. They even reimbursed repair costs in the thousands that people paid out of their pocket.

I have a 2009 Rogue with a CVT and it is a bit different. It has a vibration at low RPMs and isn't as responsive as other automatics. I understand that newer CVTs don't exhibit these characteristics as much. I did have to have the differential repaired (under warranty) but the CVT has been trouble free so far (56,000 miles).

I would have no problem getting another vehicle with a CVT.
by dillrob
Thu Jan 29, 2015 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: 2.875% mortgage pay-off financially justifiable?
Replies: 64
Views: 14282

2.875% mortgage pay-off financially justifiable?

I have 12 years remaining on a 2.875% fixed rate mortgage (15 year original term). I am in the 35% marginal AMT range and will likely remain there (or 32% marginal AMT range) for the next 10 years. I am on track with retirement savings and have sufficient emergency funds, so these are non-factors.

So, with current 10 year yields at 1.75% and not likely (though possible) to go materially lower, is there anyway to financially justify paying off this mortgage rather than investing the cash?

I doubt that the after-tax rate on a comparable bond investment will ever be significantly lower than the after-tax loan rate to make paying off the mortgage financially viable. On the contrary, bond yields are so low they will probably go up at some ...
by dillrob
Sun Jan 25, 2015 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Thanks.
Replies: 12
Views: 2385

Re: Prepaid Tuition Vs 529 plan

I think this for the class credits only. If so, you will need to supplement with an 529 investment plan since room, board, fees and books can easily cost more per year than the tuition.
by dillrob
Thu Jan 22, 2015 11:58 am
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 549
Views: 250161

Re: The Mega Backdoor Roth IRA

Hello Eddy,
I just performed my withdraw/rollover this year so hopefully Vanguard addresses this for 2015 1099s. However, I don't understand how this causes an issue. Can you explain how what was checked (or not checked) results in excess taxes. Thanks.
by dillrob
Wed Jan 21, 2015 12:17 pm
Forum: Investing - Theory, News & General
Topic: One per year IRA Rollover & Mega backdoor Roth
Replies: 3
Views: 788

Re: One per year IRA Rollover & Mega backdoor Roth

Thanks. Will do direct roll-overs and, as noted, shouldn't apply since it's not coming from an IRA.
by dillrob
Wed Jan 21, 2015 8:54 am
Forum: Investing - Theory, News & General
Topic: One per year IRA Rollover & Mega backdoor Roth
Replies: 3
Views: 788

One per year IRA Rollover & Mega backdoor Roth

Does the newly imposed one per year IRA Rollover limit apply to Mega backdoor roth rollovers from a 401K to a Roth? Can these type of rollovers be done more than once per year?
Thanks.
by dillrob
Wed Jan 14, 2015 11:19 am
Forum: Personal Finance (Not Investing)
Topic: rIRA from after tax 401(k) at Vanguard
Replies: 5
Views: 1142

Re: rIRA from after tax 401(k) at Vanguard

UPDATE

I contacted Vanguard in the beginning of January about the withdraw and roll-overs. I had to set up a rIRA (already had tIRA) and prepare and return the paperwork. The transaction was completed yesterday with my after-tax 401(k) contributions going to the rIRA and the gains on these contributions going to the tIRA.

I plan to contribute and roll-over in the future as well.

Thanks for the patient and thorough advice.
by dillrob
Mon Dec 29, 2014 11:49 am
Forum: Investing - Theory, News & General
Topic: Target Retirement Funds - are they the AA you would choose?
Replies: 32
Views: 5112

Re: Target Retirement Funds - are they the AA you would choo

Also consider the international exposure in these funds. For instance, nearly one third of the equity portion of the 2050 fund is invested in international stocks (Vanguard Total International Stock Index Fund Investor Shares). This strong international bias is one of the reasons I stopped investing in the Target funds.
by dillrob
Tue Dec 23, 2014 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Rollover of withdrawn 529 funds not currently needed
Replies: 3
Views: 899

Re: Rollover of withdrawn 529 funds not currently needed

Thanks. I will try to get the basis information from the NH account to provide to the PA administrator as I think they maintain the basis information.
by dillrob
Mon Dec 22, 2014 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: rIRA from after tax 401(k) at Vanguard
Replies: 5
Views: 1142

Re: rIRA from after tax 401(k) at Vanguard

In this case, Vanguard is the 401(k) administrator. The rep was not aware that the after -tax contributions could go into a rIRA and the gains on this account into a tIRA without any withholding.
by dillrob
Mon Dec 22, 2014 7:07 am
Forum: Personal Finance (Not Investing)
Topic: Rollover of withdrawn 529 funds not currently needed
Replies: 3
Views: 899

Rollover of withdrawn 529 funds not currently needed

I currently have two 529 plans for my son's education (an early NH plan administered by Fidelity and a PA plan). He is the beneficiary on both plans.

I recently (Dec 2014) withdrew 529 funds from the NH plan and paid (also in Dec 2014) for my son's spring 2015 college semester.

It now appears that he will not be returning to school this Spring and I do not want these funds to be treated as an nonqualified 529 withdraw.

Based on some research, I may be able to rollover these funds into the PA plan (within 60 days of the withdraw) and not incur any tax penalty.

Does it matter that when I withdrew the funds I did not designate it as a rollover?

Are there any other things to consider for this rollover of funds?

Thanks.