Search found 3042 matches

by terran
Wed Mar 27, 2024 6:45 am
Forum: Personal Finance (Not Investing)
Topic: Avoiding Late Payment Penalty
Replies: 1
Views: 238

Re: Avoiding Late Payment Penalty

If you pay estimated taxes in 4 equal installments by the due date around the 15th of the months you listed and meet one of the following you won't owe a penalty: Owe $1000 or less Pay at least 90% of the amount you owe Pay at least 100% of what you owed last year (110% if last year's AGI was over $150k) If you still owe taxes then you'll need to pay the rest by tax day around 4/15. You could also avoid a penalty if you pay it all by the April due date of the year for which you'll owe taxes and fill out a slightly more complicated form. Or you could avoid a penalty and pay later in the year if a larger portion of your income came later in the year and you fill out an even more complicated form. If you don't do any of this and wait until Apr...
by terran
Wed Mar 27, 2024 4:47 am
Forum: Personal Investments
Topic: SEP IRA Plan Adoption Agreement
Replies: 4
Views: 395

Re: SEP IRA Plan Adoption Agreement

I'm pretty sure it needs to be 1/1/23 if you want to make 2023 contributions. Why not a solo 401(k)? They have a higher limit at lower income, can have a Roth option, and don't interfere with backdoor Roth IRA contributions (some plans will even let you roll in previously deducted traditional IRAs to allow backdoor Roth if that's and issue you have).
by terran
Wed Mar 27, 2024 4:44 am
Forum: Personal Finance (Not Investing)
Topic: Section 199A dividends
Replies: 3
Views: 540

Re: Section 199A dividends

See form 8995 starting at line 6.
by terran
Tue Mar 26, 2024 4:45 pm
Forum: Personal Investments
Topic: TIAA 457b vs. Brokerage
Replies: 17
Views: 819

Re: TIAA 457b vs. Brokerage

I would tend towards the 457(b), which as ruralavalon says isn't terrible, although I've always had better workplace plans so I can't say for sure what I'd do. Does the plan offer a brokerage window option? I've see TIAA plans that do
by terran
Tue Mar 26, 2024 9:20 am
Forum: Personal Investments
Topic: Rollover and asset transfer question
Replies: 4
Views: 351

Re: Rollover and asset transfer question

Are the IRA and 401(k) currently invested? If so, what you're really asking is whether it's a good idea to sell all your investments and slowly reinvest them, which most people would tell you not to do. If the current accounts are not currently invested, what you're really asking about is Dollar cost averaging vs lump sum investing . As discussed at that link, lump sum investing has a higher expected return, but dollar cost averaging can have some behavioral advantages if it keeps you investing. Basically, on average being fully invested sooner rather than later is better, but sometimes the market doesn't behave as it does on average, so if you're the type of person that will panic and sell and/or be frightened off from investing altogether...
by terran
Tue Mar 26, 2024 9:09 am
Forum: Personal Investments
Topic: Automatic investments - How to keep balanced?
Replies: 6
Views: 402

Re: Automatic investments - How to keep balanced?

Probably not the answer you want, but I would stop investing automatically and start buying what you need to get closer to your desired asset allocation. Remember that you don't need to maintain your asset allocation separately in all your accounts, but can rather maintain it across all your accounts. If your tax advantages accounts are large enough you can do all your rebalancing there. Dividend reinvestment has no meaning from a tax perspective. It's a service provided by your brokerage whereby dividends you receive are used to automatically buy the investment that paid the dividend. You pay tax on the dividend the same either way. It can make it harder to tax loss harvest since the dividend reinvestment can cause a wash sale if there's a...
by terran
Tue Mar 26, 2024 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 6053
Views: 1036464

Re: Should I move it all to Fidelity?

Here's a long running thread and a wiki article on the topic.
by terran
Mon Mar 25, 2024 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional 401(k) for Spouse & Roth 401(k) for me.
Replies: 2
Views: 301

Re: Traditional 401(k) for Spouse & Roth 401(k) for me.

Consider the Roth vs traditional wiki . For the next few years while the Qualified Business Income deduction is still a thing contributing to Roth solo 401(k) and traditional other accounts is preferable to the reverse since traditional solo 401(k) contributions reduce QBI while Roth don't. Some states have preferable tax treatment when both spouses have income and file separately. If the state where you intend to retire is such a state it could be helpful to have some traditional in both your names. if you're near certain tax thresholds it could be beneficial to make more traditional contributions. For example if you're near the deductible traditional IRA or the Roth IRA contribution income limits. Or if you use ACA health insurance. Or if...
by terran
Mon Mar 25, 2024 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI over limit for Roth contribution - Distribution already taken
Replies: 4
Views: 318

Re: MAGI over limit for Roth contribution - Distribution already taken

So you contributed $6500 to a Roth IRA, discovered you're only eligible to contribute $5000 so you had your broker remove $1500 plus/minus earnings/losses as a removal of excess contributions?

If that's correct, then you don't need to do a recharacterization as you no longer have an over contribution, but I would think you could make a $1500 contribution to a non-deductible traditional IRA and proceed from there as you're currently under the total contribution limit. Make sure you don't have any traditional IRAs that were previously deducted, including rollovers from old employer plans.
by terran
Mon Mar 25, 2024 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Why no "prepaid principal" with "prepaid interest" on mortgage?
Replies: 4
Views: 429

Re: Why no "prepaid principal" with "prepaid interest" on mortgage?

If you want to pay more to principal you'd increase the downpayment thus reducing the loan amount.
by terran
Mon Mar 25, 2024 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor roth in 2024 for year 2023?
Replies: 17
Views: 564

Re: Backdoor roth in 2024 for year 2023?

Small correction to the above: No matter what, the conversion is not part of your 2023 taxes. The conversion goes on the taxes for the year it was made regardless of what year the original contribution was for.

If when you made the contribution it was marked as a 2024 contribution you could make another contribution now for 2023 if you have the money available, or you could call the broker and ask if they can reclassify the contribution as a 2023 contribution.
by terran
Mon Mar 25, 2024 11:35 am
Forum: Personal Investments
Topic: Correctly Representing 2 Years of Roth Backdoor Conversions That Were Done At The Same Time in Form 8606
Replies: 7
Views: 424

Re: Correctly Representing 2 Years of Roth Backdoor Conversions That Were Done At The Same Time in Form 8606

Makes sense. It's usually best to enter all information you have forms for or can think of before relying on any tax software refund/owed estimates or accuracy of forms. There are lots of interconnected parts of the the tax code that can change the results.
by terran
Mon Mar 25, 2024 9:41 am
Forum: Personal Investments
Topic: 2026 Tax tables impact on Roth conversions! Act now?
Replies: 10
Views: 1530

Re: 2026 Tax tables impact on Roth conversions! Act now?

Here's a thread with some guesses at inflation adjusted 2026 brackets (including mine) that are rather higher than what you've posted. That said, if you you can currently contribute/convert to Roth in the 22% bracket and expect to retire in the 25% bracket you probably should, but if you expect to retire in the 15% bracket you probably shouldn't.

If you expect to retire before medicare age you might also consider lost ACA premium subsidies as another form of tax. By my calculations considering federal tax and ACA subsidies you're up over a 25% marginal rate once you get over 200% FPL at $40800 if the 2017/2026 tax brackets where in effect now (this will adjust for inflation).
by terran
Mon Mar 25, 2024 7:48 am
Forum: Personal Investments
Topic: Correctly Representing 2 Years of Roth Backdoor Conversions That Were Done At The Same Time in Form 8606
Replies: 7
Views: 424

Re: Correctly Representing 2 Years of Roth Backdoor Conversions That Were Done At The Same Time in Form 8060

Line 1 of your form 8606 should be $6500 which would lead line 3 to be $12500.

Have you entered your 2023 contribution anywhere yet? If all you've entered is that 1099R then the tax software doesn't know that there's a 2023 contribution to be accounted for.

Have you finished entering your income? If the income you've entered so far is still with the IRA deduction limit I wonder if the tax software might give you the deduction and then also consider the conversion taxable since it wasn't a non-deductible 2023 contribution.
by terran
Mon Mar 25, 2024 7:35 am
Forum: Personal Investments
Topic: buying mutual funds seems easier than buying ETFs
Replies: 64
Views: 4870

Re: buying mutual funds seems easier than buying ETFs

Maybe someone can disabuse me of this notion, but isn't a "Market order - On the close" effectively the same as buying or selling a mutual fund? I've done this a few times when adjusting asset allocation between taxable (ETFs) and retirement (mutual funds) accounts when I didn't want things to be out of whack during the day. When I've done it I've gotten the price the ETF was at as of the end of the trading day, which as mentioned upthread should be "like buying at the consensus price after all the price drama of the day is concluded." There no such thing as post-drama consensus price "at the end of the day". The price is constantly being evaluated, up to and including the closing bell and even after hours. Bi...
by terran
Mon Mar 25, 2024 6:25 am
Forum: Personal Investments
Topic: buying mutual funds seems easier than buying ETFs
Replies: 64
Views: 4870

Re: buying mutual funds seems easier than buying ETFs

Maybe someone can disabuse me of this notion, but isn't a "Market order - On the close" effectively the same as buying or selling a mutual fund? I've done this a few times when adjusting asset allocation between taxable (ETFs) and retirement (mutual funds) accounts when I didn't want things to be out of whack during the day. When I've done it I've gotten the price the ETF was at as of the end of the trading day, which as mentioned upthread should be "like buying at the consensus price after all the price drama of the day is concluded."
by terran
Mon Mar 25, 2024 6:15 am
Forum: Personal Investments
Topic: Navigating Tax Loss Harvesting Decisions: VTSAX vs. VLCAX in Taxable Account
Replies: 9
Views: 830

Re: Navigating Tax Loss Harvesting Decisions: VTSAX vs. VLCAX in Taxable Account

othrif wrote: Sun Mar 24, 2024 11:40 pm If I invest new funds into VTSAX, holding both VTSAX and VLCAX, how would tax-loss harvesting (TLH) work in practice? Specifically, if a TLH opportunity arises, I understand I could sell VLCAX to buy VTSAX. Can I also do the reverse simultaneously—sell VTSAX to buy VLCAX, effectively oscillating between the two without adding more funds solely for TLH purposes?
No, if you want to sell both at a loss you'll need a third option. Consider switching to ETFs which would given you ITOT, another total market fund that follows a different index than VTSAX/VTI.
by terran
Sun Mar 24, 2024 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 NEC how to report it correctly? And IRA/ HSA ?
Replies: 14
Views: 722

Re: 1099 NEC how to report it correctly? And IRA/ HSA ?

Lafder wrote: Sun Mar 24, 2024 10:09 am It boggles my mind that there are so many forms that need to be filled out.

It's not really as bad as it sounds. Schedules 1-3 are just because the 2017 "simplification" of the tax code, they used to be on Form 1040 and you'll only be entering something on 1-3 of the lines on each as directed by the other forms. The other forms are just because of the special circumstances (self employed income, HSA, maybe the savers credit for low income and retirement contributions, maybe the EITC for low income that's earned). Once she just has one "real" job that pays her on W2 it should actually get easier.
by terran
Sun Mar 24, 2024 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Off-market home purchase - best practices?
Replies: 33
Views: 1969

Re: Off-market home purchase - best practices?

I'd be talking to a real estate lawyer about whether you're going to need to evict the "transients" and what you're getting into there. They should also be able to help you with the sale.
by terran
Sun Mar 24, 2024 9:18 am
Forum: Personal Investments
Topic: Question about short term capital gain loss?
Replies: 3
Views: 260

Re: Question about short term capital gain loss?

Correct. They'll need to file schedule D either way, which some tax software charges more for.
by terran
Sun Mar 24, 2024 8:49 am
Forum: Personal Investments
Topic: Question about short term capital gain loss?
Replies: 3
Views: 260

Re: Question about short term capital gain loss?

1) Yes, you can sell at a short term loss. This will go on Schedule D where the loss will offset any realized gains. If the loss exceeds any realized gains the excess will reduce other taxable income up to $3000 and any loss in excess of that will be carried forward to future years when the process will repeat. This all assumes you don't buy a "substantially identical" investment within 30 days, but it doesn't sound like you want to do that anyway.

2) If theres a gain and no offsetting losses it will be taxed. Short term gains are taxed at the same rate as ordinary income.
by terran
Sun Mar 24, 2024 7:23 am
Forum: Personal Finance (Not Investing)
Topic: What are your "hidden" tax tips?
Replies: 56
Views: 4772

Re: What are your "hidden" tax tips?

Even if you use a tax professional or tax software to fill out your taxes, try filling out all the forms by hand line by line and reading the instructions for anything you don't understand. Compare what you get to the forms produced by your tax professional/software. You'll learn a lot about exactly how taxes work for your situation.
by terran
Sun Mar 24, 2024 7:14 am
Forum: Personal Finance (Not Investing)
Topic: 1099 NEC how to report it correctly? And IRA/ HSA ?
Replies: 14
Views: 722

Re: 1099 NEC how to report it correctly? And IRA/ HSA ?

Agree with using tax software, I've had fine experiences with FreeTaxUSA which was mentioned or OLT.com. Off the top of my head she should probably end up filing Form 1040, Schedule 1 (SE income, SE tax deduction, IRA and HSA deductions), Schedule 2 (SE tax), Schedule 3 (savers credit of she contributes to IRA), Schedule EIC (if she qualifies for the earned income tax credit), Schedule C (business income), Schedule SE (SE tax calculation), form 8995 (qualified business income Form 8889 (if she contributes to an HSA), form 8880 (savers credit calculation if she contributes to IRA). There could also be schedule B and/or schedule D if she has much interest, dividend, or capital gain income. If she opens an HSA, due to a funny little glitch, sh...
by terran
Sat Mar 23, 2024 10:33 pm
Forum: Investing - Theory, News & General
Topic: direct roth ira contribution over MAGI limit
Replies: 5
Views: 530

Re: direct roth ira contribution over MAGI limit

Then you attach a statement to your return explaining the recharacterization and proceed as if you had originally contributed to traditional IRAs by filling out form 8606 showing the non-deductible contribution. Remember to treat the recharacterized contribution as having happened when you originally contributed to Roth, not when it was moved from Roth to traditional. Presuming you convert the contribution to Roth you'll show that conversion (as well as the 2024 non-deductible contribution and conversion) on your 2024 form 8606.
by terran
Sat Mar 23, 2024 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: Questions regarding individual 401K contribution amount as the employee?
Replies: 14
Views: 649

Re: Questions regarding individual 401K contribution amount as the employee?

avalpert1 wrote: Sat Mar 23, 2024 1:47 pm
terran wrote: Sat Mar 23, 2024 1:42 pm
ahc19081 wrote: Sat Mar 23, 2024 1:08 pm Unfortunately I am pretty sure that in order to make an employee contribution for 2023, your wife would need to have established an elective deferral by December 31. See this post from a related discussion: viewtopic.php?p=5278816#p5278816
Yes, an employee salary deferral election is required to be made by 12/31 and kept with your records, but not reported anywhere.
This is no longer accurate for first year plans - under Secure 2.0 you can retroactively elect deferrals.
Yeah, I thought that might be the case, but I wasn't sure. Thanks for being able to make a definitive statement about it.
by terran
Sat Mar 23, 2024 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Questions regarding individual 401K contribution amount as the employee?
Replies: 14
Views: 649

Re: Questions regarding individual 401K contribution amount as the employee?

Unfortunately I am pretty sure that in order to make an employee contribution for 2023, your wife would need to have established an elective deferral by December 31. See this post from a related discussion: https://www.bogleheads.org/forum/viewtopic.php?p=5278816#p5278816 Yes, an employee salary deferral election is required to be made by 12/31 and kept with your records, but not reported anywhere. I see no evidence that such an election wasn't made by OPs wife. The election can be general to allow for calculations to take place after the end of year, something like "I elect to contribute 100% of compensation, not to exceed the allowed legal limit." The actual contribution must be made by the tax filing deadline (~4/15) including...
by terran
Sat Mar 23, 2024 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Questions regarding individual 401K contribution amount as the employee?
Replies: 14
Views: 649

Re: Questions regarding individual 401K contribution amount as the employee?

physics911 wrote: Sat Mar 23, 2024 1:21 pm She can contribute up to tax day if she is sole proprietor, and she should be able to make an employer contribution (she is both employee and employer) of 25%. So the ~$5k + $1,250 ($5k * 25%)
This is incorrect on a couple of fronts. See the worksheet I linked above.
by terran
Sat Mar 23, 2024 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Questions regarding individual 401K contribution amount as the employee?
Replies: 14
Views: 649

Re: Questions regarding individual 401K contribution amount as the employee?

Assuming she files schedule C, net profit is Schedule C line 31 and net earnings are net profit minus 1/2 of self employment tax. She can contribute he net earnings or the salary deferral limit ($22,500 in 2023), whichever is less plus a profit share portion if her net earnings ever exceed that limit. Given the numbers you posted I suspect that's $5,466. See the Deduction Worksheet for Self-Employed in Publication 560 for the full calculation. Note that while you'll see people talk about a 25% profit share component, step 4 of that worksheet can be at most 20% for reasons you can read about in that publication. That only matters if her net earnings go above the salary deferral limit.
by terran
Sat Mar 23, 2024 11:51 am
Forum: Personal Investments
Topic: 401k (with mega roth) rollover to Vanguard IRA
Replies: 13
Views: 734

Re: 401k (with mega roth) rollover to Vanguard IRA

Just to add to the above, Form 8606 asks for balances of and distributions and conversions from "traditional, traditional SEP, and traditional SIMPLE IRAs" -- no mention of 401(k), 403(b), etc.
by terran
Sat Mar 23, 2024 10:15 am
Forum: Personal Investments
Topic: Trying to replicate a 3-Fund portfolio
Replies: 10
Views: 628

Re: Trying to replicate a 3-Fund portfolio

That's a creative way of getting your bond allocation! Not sure I would have thought of that. Looks like VTINX is about 70% bonds, so as long as you hold enough of it to get your desired amount of bonds that should work just fine. Alternatively, you could just hold a target date fund and nothing else and call it a day.
by terran
Sat Mar 23, 2024 9:27 am
Forum: Personal Consumer Issues
Topic: Do you setback thermostat on your electric heatpump?
Replies: 47
Views: 2749

Re: Do you setback thermostat on your electric heatpump?

68 down to 60 overnight except when it's especially cold and I expect it to have trouble keeping up the following day. I don't know if this is the right thing to do or not, although 68 overnight would be uncomfortably warm for us. Of course it's warmer in the summer, so...
by terran
Sat Mar 23, 2024 9:18 am
Forum: Personal Investments
Topic: 401k (with mega roth) rollover to Vanguard IRA
Replies: 13
Views: 734

Re: 401k (with mega roth) rollover to Vanguard IRA

With those assumptions it is very important that try to convert (back-door) the post-tax 401K balance to Roth 401K BEFORE you do any rollovers. Is it not possible to roll after-tax 401(k) directly to Roth IRA? I thought that was one of the ways to do a mega backdoor Roth? I've only ever actually done the in-plan conversion kind. It may be possible, yes. I did not consider that option in my response. That path requires an additional level of coordination between the plan administrator and the receiving IRA custodian. It would seem safer/easier to get it done at one location to me. Agreed, definitely better to do it within the plan if possible. If not then maybe better to roll it into a Roth IRA with the company that holds the 401(k) even if...
by terran
Sat Mar 23, 2024 9:00 am
Forum: Personal Investments
Topic: 401k (with mega roth) rollover to Vanguard IRA
Replies: 13
Views: 734

Re: 401k (with mega roth) rollover to Vanguard IRA

retiringwhen wrote: Sat Mar 23, 2024 7:50 am With those assumptions it is very important that try to convert (back-door) the post-tax 401K balance to Roth 401K BEFORE you do any rollovers.
Is it not possible to roll after-tax 401(k) directly to Roth IRA? I thought that was one of the ways to do a mega backdoor Roth? I've only ever actually done the in-plan conversion kind.
by terran
Sat Mar 23, 2024 8:37 am
Forum: Personal Consumer Issues
Topic: Paying Electric Bill With Checking
Replies: 49
Views: 3534

Re: Paying Electric Bill With Checking

Have you ever paid anyone by check? If so they have your checking account info.

But you paid a 1.75% convenience fee on a 2% cashback card... didn't you gain pennies, not lose pennies? Just keeping paying by credit card.
by terran
Sat Mar 23, 2024 8:25 am
Forum: Personal Finance (Not Investing)
Topic: HSA reimbursement for first 7.5% of AGI
Replies: 9
Views: 841

Re: HSA reimbursement for first 7.5% of AGI

d0gerz wrote: Sat Mar 23, 2024 8:18 am What about the other way round? I’m assuming the answer is no there as well.

I.e. if you have medical expenses above the AGI threshold that you pay out of pocket and itemize one year, you can’t then in a later year reimburse yourself for them from an HSA?
Correct.
by terran
Sat Mar 23, 2024 8:23 am
Forum: Personal Finance (Not Investing)
Topic: March Bonus & Estimated Taxes - Just Pay for Q1?
Replies: 4
Views: 385

Re: March Bonus & Estimated Taxes - Just Pay for Q1?

If you pay in 4 equal installments and pay either 90% of what you owe or 100% of what you owed last year (110% if AGI is over $150k) between the estimated taxes and withholding then you won't owe a penalty. You could pay it all now, but then you won't earn interest on that money for the rest of the year and the form to avoid a penalty will be a little more complicated.
by terran
Fri Mar 22, 2024 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion and Taxes
Replies: 35
Views: 3597

Re: Roth Conversion and Taxes

You can pay online or you can fill out form 1040-ES and mail it with a check to pay your estimated taxes. You won't get any kind of receipt if you mail it, you might get something from the payment processor if you do it online. Either way you should be able to check your tax records and see the payment if you have a login. You also won't get anything next January. You just report your total estimated payments along with your total withholding payments when you fill out your form 1040 next year. If the IRS disagrees with the amount you say you paid you'll hear from them just like everything else you report on your taxes.
by terran
Fri Mar 22, 2024 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question: Paying IRS Balance According to Turbotax
Replies: 6
Views: 557

Re: TurboTax efile and third party tax payment options

flyingcows wrote: Fri Mar 22, 2024 5:15 pm TurboTax website charges 2.49% to pay with Credit Card, but I see sites like pay1040.com that only charge 1.89% which ends up being an extra $100 or so.
payUSAtax is a little cheaper at 1.82%. https://www.irs.gov/payments/pay-your-t ... redit-card
by terran
Fri Mar 22, 2024 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare premiums reimbursements from HSA
Replies: 17
Views: 1397

Re: Medicare premiums reimbursements from HSA

I know that you can't use HSA funds to reimburse yourself for medical expenses that were deducted as a medial expense on your Schedule A. I don't know about the Self-employed health insurance deduction however. Hmm, not being able to reimburse yourself for a medical expenses used as a deduction surprises me. And raises the question whether premiums used as to satisfy the SE Health Insurance deduction might also be in the same "non-HSA reimbursable" boat. Does anyone know the answer? I think it's technically the other way around, which might make it less surprising. You can't take a Schedule A medical expense deduction for a medical expense that was paid for by another source, in this case an HSA. I think the HSA is in a way consi...
by terran
Fri Mar 22, 2024 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question: Paying IRS Balance According to Turbotax
Replies: 6
Views: 557

Re: Tax Question: Paying IRS Balance According to Turbotax

Yes, that will be fine. There's nowhere on the forms that tells the IRS which selection you made and they don't care as long as they get their money.
by terran
Fri Mar 22, 2024 11:33 am
Forum: Personal Investments
Topic: VXUS Dividends showing up as all non-qualified
Replies: 17
Views: 1812

Re: VXUS Dividends showing up as all non-qualified

I just assumed this was how it works everywhere. Is there a way to see the qualified/non-qualified mix of Vanguard ETFs during the year?

Edit: I found the Vanguard qualified dividend income tool. It hasn't been updated since 2/29, so it's showing 2024 YTD as equal to 2023 year-end. It will probably update at the end of the month?

Now I'm looking for iShares.

2nd edit: Looks like iShares publishes annual qualified dividend documents, but not until mid February, so doesn't really help with year end estimates and not really any better than Fidelity's timeline.
by terran
Fri Mar 22, 2024 7:43 am
Forum: Investing - Theory, News & General
Topic: Silly TLH games
Replies: 40
Views: 3814

Re: Silly TLH games

Whatever you do just make sure you're tax loss harvesting into an investment you're perfectly happy holding forever since, as you say, it might just keep going up. You don't want to get stuck with an investment you're not happy with because of these games.
by terran
Fri Mar 22, 2024 6:49 am
Forum: Personal Investments
Topic: retirement income - reinvesting dividends
Replies: 4
Views: 872

Re: retirement income - reinvesting dividends

In an IRA I'd probably reinvest dividends and sell when I needed money. In a taxable account I wouldn't reinvest them since you'll pay tax on that money either way and that way you can avoid a bunch of tiny tax lots (I already don't reinvest dividends automatically in taxable before retirement for this reason).
by terran
Fri Mar 22, 2024 6:34 am
Forum: Personal Investments
Topic: Long term capital gains
Replies: 3
Views: 481

Re: Long term capital gains

I'm not sure where lakpr's numbers are coming from, maybe a previous year? Here are the 2024 tax brackets . LTCG brackets are about 2/3rds down the page. You can add your standard/itemized deduction to those numbers to estimate what bracket your ordinary + LTCG income puts you in. The extra 3.8% comes from the Net Investment Income Tax (NIIT) , which kicks on for those with an AGI (not taxable income like the other brackets, so no standard/itemized deduction) over $200k/$250k for single/married filers. The comment about a 27% marginal tax bracket makes sense when you have LTCG income and are considering the marginal rate of earning more ordinary income when you're near the 0%/15% LTCG tax bracket threshold. This is because you'll pay the 12...
by terran
Fri Mar 22, 2024 6:20 am
Forum: Personal Investments
Topic: Feeling Lost with 529s
Replies: 20
Views: 1902

Re: Feeling Lost with 529s

wilked wrote: Fri Mar 22, 2024 6:14 am NJ gives no tax breaks for 529 (reference here https://finaid.org/savings/state529deductions/ )
This link would seem to be out of date. I see at least one other state in addition to NJ that has a tax deduction for 529 contributions but is listed as "none" at that link. Here's information on the NJ deduction: https://nj.gov/treasury/taxation/indivi ... tion.shtml. Note that the deduction only applies to those with NJ gross income under $200k.
by terran
Fri Mar 22, 2024 6:03 am
Forum: Personal Investments
Topic: Long term capital gains
Replies: 3
Views: 481

Re: Long term capital gains

Effective rate doesn't matter, ordinary income tax bracket and long term capital gains (LTCG) tax bracket is what matters. The LTCG tax is always lower that the ordinary income tax for a given amount of income. Remember that the LTCG stack on top of ordinary income when determining the LTCG tax bracket.
by terran
Fri Mar 22, 2024 5:46 am
Forum: Personal Investments
Topic: Vanguard dividend projection feature?
Replies: 12
Views: 1284

Re: Vanguard dividend projection feature?

HappyJack wrote: Thu Mar 21, 2024 5:15 pm When I go to the accounts page there is a “dividend view” tab that shows it.
Neat, thanks!
by terran
Thu Mar 21, 2024 3:44 pm
Forum: Personal Investments
Topic: Vanguard dividend projection feature?
Replies: 12
Views: 1284

Re: Vanguard dividend projection feature?

Where is this at Fidelity? I've only ever seen tax info YTD.
by terran
Thu Mar 21, 2024 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Is a part-Roth conversion considered a Roth contribution?
Replies: 7
Views: 529

Re: Is a part-Roth conversion considered a Roth contribution?

Yes, if you transferred it directly from a traditional IRA to a Roth IRA it's a conversion, not a distribution.

It will be taxable to the extent that previously deducted traditional IRA contributions or gains were converted and non-taxable to the extent that non-deductible contributions were transferred. There shouldn't be a penalty either way, so you'll need to track down why the tax software thinks you took a distribution subject to penalty.