Search found 918 matches

by FactualFran
Fri Nov 15, 2019 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA Thresholds in 2020
Replies: 29
Views: 5750

Re: IRMAA Thresholds in 2020

just for clarification of this rook: MAGI for IRMAA purposes is Line 11 of the new tax form 1040 + the add-backs (such as tax-exempt interest). In other words, MAGI+exempt interest is net of the new standard or itemized deductions, correct? (Only asking since 'MAGI' does not appear to be a tax form...
by FactualFran
Fri Nov 15, 2019 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: mechanics of paying a large tax bill
Replies: 42
Views: 2724

Re: mechanics of paying a large tax bill

Everything I've read about estimated payments says they have to be (mostly) equal, so I'm assuming a $100k payment on Jan 10th is problematic? Or will that fix the safe harbor problem? In that case, everything you have read about estimated payments is incorrect. It is the case that if one paid the ...
by FactualFran
Thu Nov 14, 2019 7:25 pm
Forum: Personal Investments
Topic: Wash Sale Help
Replies: 16
Views: 413

Re: Wash Sale Help

What i don't understand is what I do in the 30 days prior to the sale for a loss that can trigger a wash. It is the way the tax law was written. With the example you have given, on Jan 25 you sold at a loss the shares bought on Jan 20. One line of thought is that it is not a wash sale because there...
by FactualFran
Thu Nov 14, 2019 7:17 pm
Forum: Personal Investments
Topic: Wash Sale Help
Replies: 16
Views: 413

Re: Wash Sale Help

Hypothetical: Buy 100 shares VTI Jan 1 2019 Sell 100 shares VTI Jan 10, 2019 (yields gain of $100) Buy 100 shares VTI Jan 20, 2019 Sell 100 shares VTI Jan 25, 2019 (yields LOSS of $100 Wait 30 days to buy VTI to avoid wash sale Buy 100 shares VTI Feb 26, 2019 (hold position) The second buy sell her...
by FactualFran
Wed Nov 13, 2019 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Could someone explain these numbers to me?
Replies: 2
Views: 400

Re: Could someone explain these numbers to me?

Safe Harbor is a way for 401(k) plans to avoid be subjected to certain tests. With 401(k) plans that don't pass the test, there are restrictions on the amount that highly compensated employees are allowed to contribute. $8400 is the amount of money your employer will contribute for you. The Safe Har...
by FactualFran
Tue Nov 12, 2019 5:33 pm
Forum: Personal Consumer Issues
Topic: Blankets/Bedding for Cold Winter Nights
Replies: 56
Views: 3482

Re: Blankets/Bedding for Cold Winter Nights

Flannel sheets, an electric heated mattress pad under the sheets, a sleeping bag that is flat when unzipped above the sheets in place of a comforter.
by FactualFran
Tue Nov 12, 2019 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: Paying for Medicare Via Monthly Social Security Distribution
Replies: 6
Views: 673

Re: Paying for Medicare Via Monthly Social Security Distribution

Chance are the Medicare premiums will start to be taken from you Social Security benefits when the Social Security Administration usually does so. You will likely have no choice about the starting month. Any payments you made ahead of time will be refunded to you sometime after the starting month.
by FactualFran
Tue Nov 12, 2019 5:04 pm
Forum: Investing - Theory, News & General
Topic: Why is VBTLX dropping?
Replies: 16
Views: 3390

Re: Why is VBTLX dropping?

So is VBLAX, the Vanguard Long-Term Bond Index Fund Admiral Shares. VBTLX is the Vanguard Total Bond Market Index Fund Admiral Shares. Whoops! I read the original post as VBLTX (Vanguard Long-Term Bond Index Investor). And so did FactualFran. According to the information at the Vanguard web site, a...
by FactualFran
Sat Nov 09, 2019 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Understand Safe Harbor rules correctly?
Replies: 27
Views: 2489

Re: Do I Understand Safe Harbor rules correctly?

fourwheelcycle wrote:
Sat Nov 09, 2019 8:58 am
Is TurboTax correct? Does the 90% provision apply to incomes over $150K?
Yes, Turbo Tax is correct. Regardless of income, underpayment penalties are not charged if one pays 90% of the tax for a year by withholding plus, if estimate payments were made, timely estimated payments.
by FactualFran
Sat Nov 09, 2019 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Understand Safe Harbor rules correctly?
Replies: 27
Views: 2489

Re: Do I Understand Safe Harbor rules correctly?

The wording in the instructions for Form 2210 includes: in general, you may owe the penalty if the total of your withholding and timely estimated tax payments didn't equal at least. If for the current year you have a total of 100%, 110% for high income taxpayers, of the income tax for the previous y...
by FactualFran
Fri Nov 08, 2019 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA Retro Billing for 2018 and 2019
Replies: 3
Views: 390

Re: IRMAA Retro Billing for 2018 and 2019

You were granted an exception for 2018 and 2019 on the grounds that you would not have the wage income you had in 2016 and 2017. However, the actual MAGI for 2018 was above an IRMAA threshold. On its face, the actual MAGI for 2018 indicates that the exceptions were not valid. You could appeal the IR...
by FactualFran
Fri Nov 08, 2019 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Basic Medicare Part B 2020 Premium $144.30 ??
Replies: 39
Views: 3025

Re: Basic Medicare Part B 2020 Premium $144.30 ??

I recently saw several online sites quoting a 2020 medicare part B - basic premium - increase to $144.30 per month, or $8.80 increase from 2019. Is that the correct amount? That was an estimate published in April of 2019 on page 83 of a 2019 Annual Report of the Boards of Trustees of the Federal Ho...
by FactualFran
Thu Nov 07, 2019 6:55 pm
Forum: Investing - Theory, News & General
Topic: Why is VBTLX dropping?
Replies: 16
Views: 3390

Re: Why is VBTLX dropping?

VBLTX holds long-term bonds. Look at the recent rates of long-term issues in the Daily Treasury Yield Curve Rates web page.
by FactualFran
Thu Nov 07, 2019 4:29 pm
Forum: Personal Investments
Topic: Backdoor Roth left a few dollars in traditional IRA does this cause pro rata??
Replies: 15
Views: 789

Re: Backdoor Roth left a few dollars in traditional IRA does this cause pro rata??

In the future, when doing your backdoor Roth conversion (conversion from tIRA to Roth IRA), see if you can specify to convert the "total balance" instead of a set dollar amount. This avoids the little crumbs left over in your tIRA after the conversion. It's also easier if you keep the tIRA funds on...
by FactualFran
Tue Nov 05, 2019 5:11 pm
Forum: Personal Investments
Topic: FIFO - Which shares get sold when you have standing orders and submit a new order?
Replies: 9
Views: 325

Re: FIFO - Which shares get sold when you have standing orders and submit a new order?

Vanguard doesn’t allow me to select anything other than FIFO: Screen capture: https://imgur.com/gallery/SdcX8E8 Are you allowed to specify the Cost Basic Method with another Duration option? In the opening post you indicated that you wanted to sell the newest shares at a price less than the stock h...
by FactualFran
Mon Nov 04, 2019 7:38 pm
Forum: Personal Consumer Issues
Topic: Do Semi-Dry, Delicious, Complex But < $15 Wines Exist?
Replies: 29
Views: 2670

Re: Do Semi-Dry, Delicious, Complex But < $15 Wines Exist?

There are some good Rieslings from the Finger Lakes region in NY. Dr. Frank's is a favorite of mine. I have some relatives in that region looking for some dry wines, but they say that most of them are on the sweeter side. Is this one on the dry side? Dr. Frank, like many other Finger Lakes wineries...
by FactualFran
Mon Nov 04, 2019 3:29 pm
Forum: Personal Investments
Topic: Why can't I break up with Wellington? (Roth Conversion question)
Replies: 17
Views: 2171

Re: Why can't I break up with Wellington? (Roth Conversion question)

Having bonds in a Roth is not a big deal. Having bonds in a Roth can result in a higher total return than having only stocks. VWELX has had a higher total during 12 of the 17 rolling 10 calendar year periods that VWELX and VTSMX have both existed.
by FactualFran
Thu Oct 31, 2019 5:40 pm
Forum: Personal Investments
Topic: Sell before or after end-of-year distributions?
Replies: 2
Views: 435

Re: Sell before or after end-of-year distributions?

The trade-off between selling before or after a distribution is not a simple one to determine. It seems that if you sold shares, then all of the shares would be classified as long-term and the gain would be taxed at your long-term capital gain rate. By selling share before a distribution you would b...
by FactualFran
Mon Oct 28, 2019 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: is total dividend paid correct, or not?
Replies: 7
Views: 491

Re: is total dividend paid correct, or not?

I own 2077.871 share of USTEX. According to Morningstar and Yahoo Finance, the distribution per share for September 30th was .0368. I assume that when I multiply my number of shares (this number hasn't changed since I inherited them 5 years ago) times the distribution per share, the answer should e...
by FactualFran
Thu Oct 24, 2019 1:55 pm
Forum: Investing - Theory, News & General
Topic: Long Term Treasuries?
Replies: 6
Views: 564

Re: Long Term Treasuries?

BW1985 wrote:
Thu Oct 24, 2019 1:25 pm
Why are LTT's up 25% from this time last year? I didn't even know that was possible.
The market price is up because the yield has decreased from this time last year. Recently, the yield on 30-year Treasury Bonds has been about 2.2%. About a year ago the yield was about 3.3%.
by FactualFran
Wed Oct 23, 2019 5:02 pm
Forum: Personal Investments
Topic: XIRR (not IRR) spreadsheet to track a porfolio
Replies: 20
Views: 1850

Re: XIRR (not IRR) spreadsheet to track a porfolio

I hope that the OFFSET function works on Mac Excel. It does. Because the OFFSET function has been confirmed to work on Mac Excel, here is a variation of what #Cruncher wrote in another post, but it does not use the MATCH function or depend on what #Cruncher called a "kluge that might not work with ...
by FactualFran
Wed Oct 23, 2019 2:58 pm
Forum: Personal Investments
Topic: Vanguard Tax-Managed Fund Benefits? [Also, REIT asset allocation]
Replies: 8
Views: 978

Re: Vanguard Tax-Managed Fund Benefits? [Also, REIT asset allocation]

As far as I can tell, the Vanguard Tax-Managed funds have never had a purchase fee. In the past they had redemption fees "to discourage short-term trading activity".
by FactualFran
Wed Oct 23, 2019 2:39 pm
Forum: Personal Investments
Topic: XIRR (not IRR) spreadsheet to track a porfolio
Replies: 20
Views: 1850

Re: XIRR (not IRR) spreadsheet to track a porfolio

The match function Doesn’t work on Mac excel The part of the other post I provided a link to did not use the match function. The match function is not the only way to write a formula that will have an XIRR done over different calendar years. Another approach is to add a column with a formula that c...
by FactualFran
Tue Oct 22, 2019 2:06 pm
Forum: Personal Investments
Topic: XIRR (not IRR) spreadsheet to track a porfolio
Replies: 20
Views: 1850

Re: XIRR (not IRR) spreadsheet to track a porfolio

Once more I am submitting an appeal to anyone who has created a useful excel worksheet to calculate XIRR across multiple years of returns. I am a mac user so some of the work arounds I have found (such as here: https://www.bogleheads.org/forum/viewtopic.php?t=181683) have been unworkable. Thank you...
by FactualFran
Tue Oct 15, 2019 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Safe Harbor through Withholding
Replies: 22
Views: 988

Re: Safe Harbor through Withholding

The exception to owing underpayment penalties "If you expect to owe less than $1,000 after subtracting your withholding, you're safe." should be worded more carefully. It does not matter what you expect, what matters is if you actually own less than $1,000 after subtracting the amount withheld. The ...
by FactualFran
Tue Oct 15, 2019 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Safe Harbor through Withholding
Replies: 22
Views: 988

Re: Safe Harbor through Withholding

I thought the bucket of money for estimated tax payments is discrete and separate from the bucket of money for withholdings. Are they the same for 'moneys withheld' purposes to make safe harbor in the first case? The IRS treats the sum of the income tax withheld for a year as if the withholding had...
by FactualFran
Thu Oct 10, 2019 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Question about the Safe Withdraw Rate rule
Replies: 20
Views: 1508

Re: Question about the Safe Withdraw Rate rule

When calculating the amount of money needed for early retirement, do you need to account for inflation? Let say if my current annual expenses are $40k. $40k x 25 = $1M. Does that mean I would need $1M at retirement to maintain a $40k/year lifestyle? Or do I need to adjust that $1M for inflation? If...
by FactualFran
Fri Oct 04, 2019 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: How do you handle quarterly tax payments?
Replies: 45
Views: 3700

Re: Retirees: How do you handle quarterly tax payments?

Good grief... have to pay taxes on imaginary income you will never have? Guess I need a 3rd Masters degree now to manage retirement- an MST!! :mrgreen: No, you don't have to pay taxes on income you will never have. However, if you strongly suspect that you will have that income and prefer not spend...
by FactualFran
Fri Oct 04, 2019 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: How do you handle quarterly tax payments?
Replies: 45
Views: 3700

Re: Retirees: How do you handle quarterly tax payments?

... The estimated tax payment is entered on Schedule 5 of the 1040 and transferred to line 17 of the 1040. ... That was true with the federal income tax return for 2018. With the draft forms for 2019, the amount of estimated tax payments is entered on Schedule 3 and a sum from that schedule is ente...
by FactualFran
Thu Oct 03, 2019 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: How do you handle quarterly tax payments?
Replies: 45
Views: 3700

Re: Retirees: How do you handle quarterly tax payments?

Have read everything on the IRS website and still not clear after reading that and these posts if we can wait until Jan 15, 2020 to pay estimated taxes if we do a ROTH conversion late in the year? Even with a $200k ROTH conversion this year, the tax bill would only be ~$40k so would not be anywhere...
by FactualFran
Thu Oct 03, 2019 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: How do you handle quarterly tax payments?
Replies: 45
Views: 3700

Re: Retirees: How do you handle quarterly tax payments?

FelixTheCat wrote:
Thu Oct 03, 2019 3:45 pm
Why do you guys use EFTPS? I've been told in previous threads to use https://www.irs.gov/payments for estimated tax payments.
I use EFTPS because of inertia. I started using it years ago when it was the only option available to make federal income tax payments over the web.
by FactualFran
Thu Oct 03, 2019 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: How do you handle quarterly tax payments?
Replies: 45
Views: 3700

Re: Retirees: How do you handle quarterly tax payments?

Im curious if you are estimating your taxes how do you know what your capital gains/dividends/interest will be? For capital gains I use the same as amount per share as last year for the mutual funds shares that I own and include sales that I plan to make. For dividends I use the amount per share as...
by FactualFran
Sat Sep 28, 2019 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: How to Avoid a Tax Penalty with a Roth Conversion
Replies: 50
Views: 4066

Re: How to Avoid a Tax Penalty with a Roth Conversion

Any other changes of note in the draft forms & schedules? Two other changes: 1) capital gain is reported on line 6 of Form 1040 (for 2019) instead of on line 13 of Schedule 1 with a sum from that schedule being reported on Form 1040 (for 2018), 2) schedules 1 through 6 have been replaced with sched...
by FactualFran
Sat Sep 28, 2019 11:39 am
Forum: Personal Investments
Topic: 25 year safe withdrawal rate
Replies: 8
Views: 1335

Re: 25 year safe withdrawal rate

I'm not sure that mathematically you are going get a different answer with 25 years vs 30 years. In both instances you are going to want to more or less arrive at year 20 with most of your nest egg intact. In general, mathematically the results will be different using 25 years vs 30 years. Doing th...
by FactualFran
Fri Sep 27, 2019 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: How to Avoid a Tax Penalty with a Roth Conversion
Replies: 50
Views: 4066

Re: How to Avoid a Tax Penalty with a Roth Conversion

If you pay other than by withholding but don't pay that extra amount in equal quarterly amounts, then you will have to show that the timing or payments matched the payment of taxes via Sch AI of F2210. I think manipulating the w/h during the yr will be much easier than doing this but you may enjoy ...
by FactualFran
Fri Sep 27, 2019 4:02 pm
Forum: Investing - Theory, News & General
Topic: How does Treasury Floating rate note calculation works?
Replies: 4
Views: 328

Re: How does Treasury Floating rate note calculation works?

How does Daily Index (%) works? So daily interest rate changes every week based on 13-week's rate. Here is last few 13-week auction results. Daily Index (%) is not the same as high rate or investment rate. How does Daily Index (%) works? Security CUSIP Issue Maturity High Investment Term Date Date ...
by FactualFran
Thu Sep 26, 2019 6:11 pm
Forum: Investing - Theory, News & General
Topic: How does Treasury Floating rate note calculation works?
Replies: 4
Views: 328

Re: How does Treasury Floating rate note calculation works?

In this case, the accrued interest is $100.22 - $99.87 = $0.35. The accrued interest to more digits is in the auction results document. As to how it is calculated, as the quote in the opening post indicates, the accrued interest is the interest the security earned in the current interest period befo...
by FactualFran
Wed Sep 25, 2019 4:21 pm
Forum: Investing - Theory, News & General
Topic: What is the highest "safe" withdrawal rate for a 15 year period?
Replies: 44
Views: 3641

Re: What is the highest "safe" withdrawal rate for a 15 year period?

With a 50:50 S&P500:10-yrTreas portfolio, with annual rebalancing, the lowest withdrawal rate that has been supported for at least 15 years has been 5.77%, when starting at the end of 1972. Neither of the funds listed in the opening post have been around for that long
by FactualFran
Fri Sep 20, 2019 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Tax form for Seniors.
Replies: 23
Views: 1765

Re: Tax form for Seniors.

The IRS developed Form 1040-SR because part of a law that was enacted directed IRS to do so. According to the law the form be as similar as practicable to Form 1040EZ but without some of the restrictions that form had. The draft Form 1040-SR has many more lines than Form 1040EZ had and is essentiall...
by FactualFran
Fri Sep 20, 2019 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Tax form for Seniors.
Replies: 23
Views: 1765

Re: Tax form for Seniors.

It was news to me that the IRS is producing a simplified tax form for Seniors. https://www.irs.gov/pub/irs-dft/f1040s--dft.pdf I dreaded this when I read about it, after last year's mess, but it looks like a return to the old 1040 almost, so a good thing, in my view. If you read the document at the...
by FactualFran
Wed Sep 18, 2019 2:41 pm
Forum: Personal Investments
Topic: Recharacterized Roth IRA contribution to Traditional, now receiving unexpected bonus, options?
Replies: 8
Views: 369

Re: Recharacterized Roth IRA contribution to Traditional, now receiving unexpected bonus, options?

As to the limit on "shenanigans by taxpayers" mentioned in the opening post, it is no longer allowed to recharacterize a conversion to a Roth IRA back to a traditional IRA. That is not an issue in this case.
by FactualFran
Sat Sep 14, 2019 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 Medicare Part B Expected Income Breakpoints
Replies: 3
Views: 774

Re: 2020 Medicare Part B Expected Income Breakpoints

Source of the "expected" numbers? The expected numbers are from percentage increase calculations described in Federal Regulations: "in 2019, CMS will set the modified adjusted gross income ranges for 2020 and publish them in the Federal Register. In each year thereafter, CMS will set the modified a...
by FactualFran
Fri Sep 13, 2019 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 Medicare Part B Expected Income Breakpoints
Replies: 3
Views: 774

2020 Medicare Part B Expected Income Breakpoints

Here are the expected 2020 Medicare Part B Modified Adjusted Gross Income (MAGI) breakpoints for tax returns with a filing status of either Single or Married Filing Jointly. Single Joint Standard Premium Multiplier $86,000 $173,000 1.4 $109,000 $218,000 2.0 $136,000 $272,000 2.6 $163,000 $326,000 3....
by FactualFran
Fri Sep 13, 2019 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: SS COLA projection for 2020
Replies: 5
Views: 1152

Re: SS COLA projection for 2020

As for the projection of the Sept CPI W figure, I didn't attempt to determine if any projection is estimating that the Sept figure will be the same as August, or if the decline from July to August will also occur from August to Sept. Using the average CPI W for July and August results in an estimat...
by FactualFran
Thu Sep 12, 2019 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: SS COLA projection for 2020
Replies: 5
Views: 1152

Re: SS COLA projection for 2020

The Senior Citizen League reports a slightly higher estimate on their Social Security COLA Drops to 1.6 Percent For 2020 web page. According to that web page "the Medicare Trustees have forecast that Part B premiums will increase from $135.50 to $144.30 per month". That is a 6.5% increase, much high...
by FactualFran
Wed Sep 11, 2019 3:04 pm
Forum: Personal Investments
Topic: VYM dividend related question
Replies: 5
Views: 576

Re: VYM dividend related question

The question comes down to whether the annual distribution amounts will keep up with inflation. That is likely not known. Since inception, the distribution amounts of the Vanguard High Dividend yield fund has generally increased by more than inflation. However, there have been times when the annual ...
by FactualFran
Wed Sep 11, 2019 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Payments for selling stocks
Replies: 11
Views: 1108

Re: Tax Payments for selling stocks

There seems to be an issue about whether it is necessary to complete Schedule AI of Form 2210. It is not necessary but doing so can reduce or eliminate underpayment penalties. If one does not include a Form 2210 with a tax return, then the IRS will calculate underpayment penalties using the assumpti...
by FactualFran
Thu Sep 05, 2019 2:59 pm
Forum: Personal Investments
Topic: Series I bonds - question about compounding interest
Replies: 18
Views: 1801

Re: Series I bonds - question about compounding interest

... Months 1 thru 6 get the same interest payment ... The interest payments within a semi-annual earning period are not necessarily the same each month. An I Bond that I have made the following sequence of interest payments during one semi-annual earning period: $6.40, $8.00, $6.40, $8.00, $6.40, $...
by FactualFran
Wed Sep 04, 2019 6:00 pm
Forum: Personal Investments
Topic: Series I bonds - question about compounding interest
Replies: 18
Views: 1801

Re: Series I bonds - question about compounding interest

According to the answer to the Frequently Asked Question How do I bonds earn interest? An I bond earns interest monthly from the first day of the month in the issue date. The interest accrues (is added to the bond) for up to 30 years. The interest is compounded semiannually . Every six months from t...
by FactualFran
Wed Sep 04, 2019 3:02 pm
Forum: Personal Investments
Topic: Invidividual Bond Transaction
Replies: 4
Views: 256

Re: Invidividual Bond Transaction

Usually, it is redeemed early because it was a callable bond and the company called it. According to the info it was noncallable. I don't know the source of that info, but according to what appears to be a Registration Statement for the Notes: "The 5.15% Notes due 2020 are redeemable at the option ...