Search found 767 matches

by FactualFran
Sat Jan 19, 2019 12:45 pm
Forum: Investing - Theory, News & General
Topic: IRS Form 8606
Replies: 14
Views: 1290

Re: IRS Form 8606

My question is: Can this form be filed mach year to track basis from a Traditional or Roth IRA? Is that generally recommended? I was starting to prepare our 2018 tax return in Turbo Tax and there is a question about tracking basis. I recommend filing a Form 8606 only when necessary. For example, do...
by FactualFran
Fri Jan 18, 2019 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: VTEAX Tax Exempt Bond Index Fund
Replies: 7
Views: 689

Re: VTEAX Tax Exempt Bond Index Fund

The interesting factoid, is that an investor can purchase ETF shares of VTEB without the one-time purchase fee, at the same expense ratio 0.09% Also interesting, perhaps, is that the market price of ETF shares can diverge from the NAV of the holdings of the ETF. Buying ETF shares at a premium to th...
by FactualFran
Fri Jan 18, 2019 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: IRS to lower 2018 safe harbor withholding threshold to 85% [2018 only]
Replies: 22
Views: 2691

Re: IRS to lower 2018 safe harbor withholding threshold to 85% [2018 only]

What are the conditions under which you are required to withhold 110%? Here is a quote from the 2017 instructions Form 2210 (Underpayment of Estimated Tax by Individuals, Estates, and Trusts). If your adjusted gross income (AGI) for 2016 was more than $150,000 ($75,000 if your 2016 filing status is...
by FactualFran
Wed Jan 16, 2019 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?
Replies: 32
Views: 1291

Re: Mega Roth Conversion and Backdoor Roth IRA in the same year possible?

You can do both, you will just be taxed on 150,000 of the total conversion amount of 156,000. And that is true even if your year end balance is 0 because the conversion of the 150,000 has the same affect as if you didn't convert and had a year end balance of 150,000. In other words, if you do a tax...
by FactualFran
Fri Jan 11, 2019 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: state income tax on VMMXX interest
Replies: 13
Views: 918

Re: state income tax on VMMXX interest

I will also quote directly from the 2017 1040-NJ Instruction, page 21 for Line 15b. New Jersey tax-exempt interest income includes interest from: ... Distributions paid by mutual funds to the extent the distributions are attributable to interest earned on federal obligations. ... Also on page 21, a...
by FactualFran
Fri Jan 11, 2019 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: HELP Wash Sale Idiot - Anything I can do?
Replies: 12
Views: 986

Re: HELP Wash Sale Idiot - Anything I can do?

Whether the broker reports to you and the IRS that there has been a wash sale depends on whether the taxable account and the IRAs are with the same broker. If the broker reports that there has been wash sale, then you should likely be able to include in your income tax return exactly what the broker...
by FactualFran
Fri Jan 11, 2019 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: state income tax on VMMXX interest
Replies: 13
Views: 918

Re: state income tax on VMMXX interest

In 2017, 20.4% of VMMX dividends were derived from US Treasuries. Whether or not that is deductible on your state income taxes is subject to the laws of your state of residence. I was recently happily corrected by other forum members and learned that I can reduce my VMMXX dividends by that amount i...
by FactualFran
Wed Jan 09, 2019 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: [Roth Conversions Question - TSP]
Replies: 11
Views: 393

Re: [Roth Conversions Question - TSP]

Yes, you should have tax free/penalty free access immediately to all converted funds including earnings due to age.

The only Form 8606 issue is you need to include one with your tax return for each year during which you have done a conversion to a Roth IRA.
by FactualFran
Tue Jan 08, 2019 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: High Yield TIPS Bill
Replies: 5
Views: 429

Re: High Yield TIPS Bill

Thank you everyone for your responses! Is it then fair to say that the stated 4.4% yield to worst is a useless number because it will change and the best way to estimate the yield is to look at non-TIPS bonds that will mature at the same day? I the yield to worst a good predictor of yield for non-T...
by FactualFran
Mon Jan 07, 2019 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: High Yield TIPS Bill
Replies: 5
Views: 429

Re: High Yield TIPS Bill

I am a beginner investor who just opened his first Merrill Edge account and was just browsing around when I notice a 1 year TIPS bill with a 4.4% Yield to Worst/Maturity. This boggled my mind because it is an inflation protected instrument so I would expect the yield to be low. I see that the coupo...
by FactualFran
Mon Jan 07, 2019 4:52 pm
Forum: Investing - Theory, News & General
Topic: Modeling "withdrawing just income generated"
Replies: 30
Views: 2380

Re: Modeling "withdrawing just income generated"

I wonder how that calculation handles capital gains distributions. It would be possible to do that for individual funds if the data has been tabulated as such. For a person interested in tax performance ST and LT would have to be separated. For the case of performance of asset classes I doubt there...
by FactualFran
Mon Jan 07, 2019 4:48 pm
Forum: Personal Consumer Issues
Topic: TV antennas...
Replies: 35
Views: 2640

Re: TV antennas...

Some did. Most elected to stay on their UHF channels because computer prediction showed that coverage of 8VSB-modulated signals would be better in some areas on UHF than it would be at VHF. In at least our own town, this was borne out when the local NBC affiliate, who was on channel 10 analog / cha...
by FactualFran
Fri Dec 28, 2018 4:46 pm
Forum: Investing - Theory, News & General
Topic: Social security deferral and COLA's
Replies: 17
Views: 1354

Re: Social security deferral and COLA's

[post removed while I think about it some more]
by FactualFran
Fri Dec 28, 2018 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Wash Sale Rule Confusion
Replies: 13
Views: 738

Re: Wash Sale Rule Confusion

What I'm saying is that if I sold all $100 of my holdings at once I would realize a net gain on the sale even though some shares would be losses (these were reinvested dividends). But I would still run into wash sale rules because some of the shares were sold at a loss? So to clarify for myself, wa...
by FactualFran
Sat Dec 22, 2018 1:51 pm
Forum: Investing - Theory, News & General
Topic: Just how good is I-bonds' nominal guarantee during deflation?
Replies: 29
Views: 2931

Re: Just how good is I-bonds' nominal guarantee during deflation?

#Cruncher wrote:
Tue Dec 18, 2018 1:34 pm
Actually the I Bond semi-annual inflation rate announced 5/1/2015 was negative at -0.80%.
A worse case was the -2.78% semi-annual inflation rate announced 5/1/2009. The composite rate of all I-Bonds that used that inflation adjustment was zero.
by FactualFran
Thu Dec 20, 2018 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated Taxes w/Large Q4 Income
Replies: 8
Views: 919

Re: Estimated Taxes w/Large Q4 Income

If you make four equal quarterly payments, and sum of those payments is at least 90% of the income tax for the year, then there should no underpayment penalty. If the payments for each of the quarters are sufficient according to a filed Form 2210 with Schedule AI completed, then there should no unde...
by FactualFran
Wed Dec 19, 2018 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Payments and Underpayment Penalties
Replies: 6
Views: 487

Re: Federal Payments and Underpayment Penalties

That is true, but the penalty will be zero if certain conditions are met. If you owe less than 1k, no penalty is owed, even if you payed all the taxes in the last quarter. https://www.hrblock.com/tax-center/irs/refunds-and-payments/underpayment-of-estimated-tax/ Although there is no underpayment pe...
by FactualFran
Wed Dec 19, 2018 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: Standard Deduction for NYS Personal Income Tax Returns? (2018 Tax Year)
Replies: 2
Views: 280

Re: Standard Deduction for NYS Personal Income Tax Returns? (2018 Tax Year)

There is a table of standard deductions on page 2 of the 2018 Instructions for Form IT-2105 (estimated tax payments). For tax table, there are Annual Tax Rate Schedules in the Exact Calculation Method sections starting on page 16 of the 2018 New York State Withholding Tax Tables and Methods . Those ...
by FactualFran
Wed Dec 19, 2018 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Payments and Underpayment Penalties
Replies: 6
Views: 487

Re: Federal Payments and Underpayment Penalties

The quarterly estimated payments have had to be made in a timely manner. The estimated payment amount made by the payment deadline for the first quarter plus 1/4 of the withholding for the year must be 1/4 or the income tax for the previous year. And similarly for the other quarters. For those with ...
by FactualFran
Thu Dec 13, 2018 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Converting to Roth IRA and Standard Deduction
Replies: 16
Views: 1131

Re: Converting to Roth IRA and Standard Deduction

One more question... if he listed his income as $39,000 with the Healthcare Marketplace (healthcare.gov) and he converts $51,000 to Roth, does that also increase the number he should have reported to Healthcare Marketplace? He should report as income to a Healthcare Marketplace his expected modifie...
by FactualFran
Thu Dec 13, 2018 5:56 pm
Forum: Personal Finance (Not Investing)
Topic: Converting to Roth IRA and Standard Deduction
Replies: 16
Views: 1131

Re: Converting to Roth IRA and Standard Deduction

How does the standard deduction come into play here? If the standard deduction is $12,000 for 2018, does that mean he could convert up to 39,000+12,000= $51,000 ? Or does it mean 39,000-12,000= $27,000 ? What about personal exemptions... or does that not apply here because he does not have a job. A...
by FactualFran
Tue Dec 11, 2018 4:49 pm
Forum: Investing - Theory, News & General
Topic: CAP Gains Wellington
Replies: 12
Views: 1389

Re: CAP Gains Wellington

According to the latest estimates from Vanguard, the Admiral shares of the fund will make distributions of about $0.03 per share in short-term capital gains and $4.14 per share in long-term gains.
by FactualFran
Tue Dec 04, 2018 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: Understanding TIPS
Replies: 7
Views: 992

Re: Understanding TIPS

As others have posted, at maturity you will receive the inflation-adjusted principal and the interest payment on it. The 98.82 offer price was the price for $100 of face value not adjusted for inflation since the TIPS was issued. The bottom line price of $10,640 for $10,000 of face value included 1)...
by FactualFran
Thu Nov 29, 2018 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: When to cash in EE Savings Bonds
Replies: 16
Views: 1700

Re: When to cash in EE Savings Bonds

I thought that they were still earning 4% minimum, but apparently not. Maybe in the low to mid 2%. Check this link to determine the value and current rate. https://www.treasurydirect.gov/BC/SBCPrice The last EE Savings Bond that had a guaranteed minimum yield of 4% was issued in April 1995, before ...
by FactualFran
Wed Nov 28, 2018 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA Thresholds in 2020
Replies: 16
Views: 1517

Re: IRMAA Thresholds in 2020

So the first IRMAA threshold for married filing jointly is currently $170,000. To determine the IRMAA surcharge for Medicare premiums that DW and I will pay in 2020 (based on 2018 adjusted AGI), will the applied IRMAA threshold be: (1) $170,000 (the 2018 limit with no inflation adjustment) (2) $170...
by FactualFran
Fri Nov 23, 2018 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 177
Views: 24015

Re: IRS publishes draft 2018 1040 - Huge changes made

Form 1040-SR for taxpayers over age 65 appears to be planned for the 2019 tax year. Whether Form 1040-SR continues to be planned is not clear. The law that directed the Secretary of the Treasury to make Form 1040-SR available stated that it be as similar as practicable to Form 1040-EZ. With the new...
by FactualFran
Wed Nov 21, 2018 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: Help me understand secondary market for treasuries
Replies: 10
Views: 955

Re: Help me understand secondary market for treasuries

Likely, the 1099 you receive for a Treasury Bill will show the difference between the price you paid and the maturity value as interest ($2.059 per $100 of maturity value in the example you gave). However, it has been years since I held a Treasury bill. The maturity value will be automatcially credi...
by FactualFran
Tue Nov 13, 2018 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Tax Time is upon us
Replies: 13
Views: 2590

Re: 2018 Tax Time is upon us

All the stuff that used to go on form 1040 now goes on a 1040 worksheet and the key items on the worksheet go to line items on the POSTCARD . :twisted: Stuff that used to go on Form 1040 will go on Form 1040 and up to six schedules. I'll be going from filing a single sheet of paper for Form 1040 to...
by FactualFran
Fri Nov 09, 2018 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale at Fidelity
Replies: 6
Views: 408

Re: Wash Sale at Fidelity

if I were to sell the 10/12/18 lot today, would that 'cure' the wash sale problem for the previous lots ? I assume Fido (which uses Gainskeeper) will fix the basis for all lots (sold and this one) at tax time (or maybe I fix manually at tax time using my sale transaction records) ? Whether it will ...
by FactualFran
Tue Nov 06, 2018 4:04 pm
Forum: Investing - Theory, News & General
Topic: I Bond fixed rate = 0.5%
Replies: 90
Views: 8793

Re: I Bond fixed rate = 0.5%

That was my understanding. The Treasury Direct website previously showed my composite rate as 2.52%, but for some reason now shows 2.62%. What Treasury Direct web page? The Series I Savings Bonds Rates & Terms: Calculating Interest Rates web page has a What is the current composite rate for my I bo...
by FactualFran
Tue Nov 06, 2018 3:29 pm
Forum: Investing - Theory, News & General
Topic: I Bond fixed rate = 0.5%
Replies: 90
Views: 8793

Re: I Bond fixed rate = 0.5%

I don't understand why my Series I savings bond rate changed. I bought it in September so the composite rate shouldn't change for 6 months I thought? Likely, many other don't understand it either. A Series I Savings Bonds issued in September 2018 has a fixed rate of 0.3%. The composite rate for its...
by FactualFran
Mon Nov 05, 2018 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Switching 2018 contributions between Roth/tIRA "in kind"?
Replies: 8
Views: 476

Re: Switching 2018 contributions between Roth/tIRA "in kind"?

Just wondering if anyone knew if certain recharacterizations between retirement accounts could be accomplished with a simple transfer "in kind." Any way, seems like the brokerage handles all the calculations of the recharacterization's earnings/losses for the investor. Likely, an "in kind" recharac...
by FactualFran
Sat Nov 03, 2018 11:49 am
Forum: Investing - Help with Personal Investments
Topic: When to redeem EE savings bond?
Replies: 7
Views: 926

Re: When to redeem EE savings bond?

I don't know what "tax penalty for interest" you mean. To get the maximum redemption value, an EE Savings Bond purchased in Jan. 1989 should be redeemed in Jan. 2019. The last interest payment will be for Dec. 2018, but because interest accrues on the 1st day of the next month, the savings bond need...
by FactualFran
Fri Nov 02, 2018 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Estimating SS benefits between FRA and age 70
Replies: 10
Views: 890

Re: Estimating SS benefits between FRA and age 70

So I am born in mid-July 1957. My FRA is 66 yrs 6 mos, which would take me into January 2024. I am definitely wanting to wait past that, quite possibly to age 70. Is age 70 July 1 2027, by the way, or Aug 1 2027? Does the Delayed Retirement Credit happen only once yearly, in January 2025 (age 67.5)...
by FactualFran
Fri Nov 02, 2018 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Savings Bond Wizard replacement is available
Replies: 28
Views: 10166

Re: Savings Bond Wizard replacement is available

I am no longer using the Wizard and I didn't last May either. Since then I used the Savings Bond Calculator which is what I am referring to.. It worked perfectly 6 months ago. The Savings Bond Calculator worked correctly for me when I tried it a few minutes ago on a saved inventory. It reported the...
by FactualFran
Fri Nov 02, 2018 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Estimating SS benefits between FRA and age 70
Replies: 10
Views: 890

Re: Estimating SS benefits between FRA and age 70

Am I correct in assuming that my SS benefits basically increase on a straight line between FRA and age 70? In other words, if I wanted to estimate my benefit at age 68, everything else being equal, would a graph plotted monthly provide that answer? The starting SS benefit does not increase in a str...
by FactualFran
Fri Nov 02, 2018 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Savings Bond Wizard replacement is available
Replies: 28
Views: 10166

Re: Savings Bond Wizard replacement is available

Thanks. Yes,I am using everything the same. Are YOU downloading? I have sent an email to the Treas to see what they say. I have downloaded Savings Bond Value Files in the past and used them with software that understands the format of those files. I doubt if the, no longer supported, Savings Bond W...
by FactualFran
Thu Nov 01, 2018 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Savings Bond Wizard replacement is available
Replies: 28
Views: 10166

Re: Savings Bond Wizard replacement is available

I am attempting to download the Dec 2018-May 2019 Savings 'Bond Value Files. All I get is numbers gibberish. The earlier one in May worked fine. Is anyone successfully downloading it? The Savings Bond Value Files are "numbers gibberish" except to software that understands the file format. Are you u...
by FactualFran
Tue Oct 30, 2018 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Tax refunds expected to be 26% more in 2019
Replies: 52
Views: 5817

Re: Tax refunds expected to be 26% more in 2019

The amount that I will owe with my 2018 tax return will be about 46% less than what I owed with my 2017 tax return. The tax law changes have little to do with it. The higher amount in "safe harbor" payments during the year have a lot to do with it.
by FactualFran
Tue Oct 16, 2018 2:37 pm
Forum: Investing - Theory, News & General
Topic: Social Security COLA - how is it applied?
Replies: 13
Views: 1362

Re: Social Security COLA - how is it applied?

My question was answered by the link that Fran posted as follows: " For example, a worker who attained age 62 in 2014 would receive cost-of-living adjustments for the years 2014 –2016. The adjustments are cumulative, with each step rounded to the next lower dime. If the PIA at age 62 was $700, the ...
by FactualFran
Mon Oct 15, 2018 3:29 pm
Forum: Investing - Theory, News & General
Topic: Social Security COLA - how is it applied?
Replies: 13
Views: 1362

Re: Social Security COLA - how is it applied?

There are a number of details involved in calculating the Social Security Retirement benefit amount and COLAs to it. Avoiding some of the details, the benefit amount when starting at age 62 does not include a COLA. A COLA is applied at the end of later years. The age 62 benefit amount depends on the...
by FactualFran
Fri Oct 12, 2018 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Asterisks on Form 8606 for Backdoor Roth?
Replies: 5
Views: 544

Re: Asterisks on Form 8606 for Backdoor Roth?

It's not deductible at all. The wording in the Contribution and distribution in the same year paragraph of IRS Publication 590-B (for 2017) is: "If you received a distribution in 2017 from a traditional IRA and you also made contributions to a traditional IRA for 2017 that may not be fully deductib...
by FactualFran
Fri Oct 12, 2018 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: Asterisks on Form 8606 for Backdoor Roth?
Replies: 5
Views: 544

Re: Asterisks on Form 8606 for Backdoor Roth?

As other posts have indicated, what Turbo Tax is doing is correct. According to IRS Publication 590-B, you need to use a worksheet in the publication if you made contributions to a traditional IRA for a that may not be fully deductible. What lines of Form 8606 are to be filled-in depend on a value c...
by FactualFran
Wed Oct 10, 2018 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: Comparing my performance against S&P 500
Replies: 20
Views: 1376

Re: Comparing my performance against S&P 500

Thanks for your reply. My goal is to compare a specific transaction vs some index. Comparing the performance of the overall fund (which includes cash, bonds, etc) is important too. I'm looking to create a website that can do this. Any interest in checking it out when it goes live? I certainly would...
by FactualFran
Wed Oct 10, 2018 3:39 pm
Forum: Investing - Theory, News & General
Topic: How are stock dividends and bond coupons distributed in funds investment?
Replies: 6
Views: 498

Re: How are stock dividends and bond coupons distributed in funds investment?

I wonder when I hold a total market stock fund how I receive the dividend, and similarly how I receive coupon payment for a total bond fund. In the context of 401k, do I received dividend and coupon in cash and reinvest at the time of re-balance? Or these dividend and coupon payments become part of...
by FactualFran
Tue Oct 09, 2018 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: Choosing Fund Cost-Basis Methods
Replies: 9
Views: 405

Re: Choosing Fund Cost-Basis Methods

I plan to sell all the shares, they were previously purchased by a financial advisor and I plan to switch it over and consolidate into VTSAX. If you sell all the shares, then the total gain or loss is the same for all cost or basis methods. In general, the average basis method will split the total ...
by FactualFran
Sat Oct 06, 2018 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: State Income Tax (NJ) question on Gain from selling Treasury Bonds
Replies: 4
Views: 415

Re: State Income Tax (NJ) question on Gain from selling Treasury Bonds

I did see that, however, it is not clear how the $1 in my example would be handled. For federal income tax purposes that is viewed as "accrued market discount" which in effect is taxed like regular interest. It seems obvious that because market discount is taxed like interest and interest of a dire...
by FactualFran
Sat Oct 06, 2018 11:30 am
Forum: Personal Finance (Not Investing)
Topic: State Income Tax (NJ) question on Gain from selling Treasury Bonds
Replies: 4
Views: 415

Re: State Income Tax (NJ) question on Gain from selling Treasury Bonds

According to the NJ Division of taxation Exempt (Nontaxable) Income web page, one type of income not subject to New Jersey tax but should be reported in the the total amount of nontaxable interest on the "Tax exempt interest" line of the return is: "Interest and capital gains from obligations of the...
by FactualFran
Thu Oct 04, 2018 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated tax payment for Q4 Roth rollovers?
Replies: 5
Views: 599

Re: Estimated tax payment for Q4 Roth rollovers?

I believe I could avoid penalties by making payments to 110% of our 2017 tax by the January deadline. (I understand that I'll need to be sure that TurboTax adds Form 2210 to reflect the rollover timing.) Or I could make the payment now. Or I could pay the full amount of what I expect to owe based o...