Search found 1278 matches

by nolesrule
Thu Sep 12, 2019 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Sale of House in NJ - any tax experts?
Replies: 5
Views: 641

Re: Sale of House in NJ - any tax experts?

We sold our house and moved out of NJ in July. Seems they forgot to withhold taxes on the transaction looking over the settlement document.
by nolesrule
Tue Sep 10, 2019 7:48 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 112
Views: 9202

Re: Paying off mortgage early - am I thinking about this right?

Pudge wrote:
Tue Sep 10, 2019 6:58 pm

If your house was paid in full, would you pull all of your cash equity out of the house and invest in the stock market? If the answer is no, then pay off the mortgage early.
Why does this keep getting repeated? It's not equivalent.
by nolesrule
Mon Sep 09, 2019 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: Anybody here who uses WageWorks commuter card?
Replies: 4
Views: 497

Re: Anybody here who uses WageWorks commuter card?

My wife used it when we lived in New Jersey because her office was near an NJ Transit station, and so was our house. There's still $1.50 on the card. Last deposit onto the card was in May. Last use was mid-July. I believe I read she had 6 months to use it. We won't be using it anymore, because trans...
by nolesrule
Wed Aug 21, 2019 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Homeowner's insurance - replacement cost
Replies: 24
Views: 1366

Re: Homeowner's insurance - replacement cost

Doesn't it also cover replacement of contents in the case of destruction? You're probably not going to go out and replace everything with used items if the place burns down, scavenging garage sales and estate sales and thrift stores for bargains if the house burns down. You are more likely to go buy...
by nolesrule
Wed Aug 21, 2019 5:08 pm
Forum: Personal Investments
Topic: Invest vs pay off student loan in 1 year period
Replies: 43
Views: 2062

Re: Invest vs pay off student loan in 1 year period

Hmm, that's interesting. Where did the $15k in a taxable account come from? To clarify, option A is my current 401k balance ($70k) and the $19k goes toward my student loan. Option B is if I put that same $19k into my 401k instead, raising the balance to $89k. If you have $19k for option B, then you...
by nolesrule
Tue Aug 20, 2019 7:02 am
Forum: Personal Investments
Topic: Invest vs pay off student loan in 1 year period
Replies: 43
Views: 2062

Re: Invest vs pay off student loan in 1 year period

The money will be invested far longer than you'll have the student loans no matter what you do. So you can't look at the change in net worth after one year. Try redoing the calculation for 30 years.
by nolesrule
Fri Aug 16, 2019 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage refinance? Recast?
Replies: 69
Views: 2916

Re: Mortgage refinance? Recast?

It really depends on your goal. With a recast, you basically choose between making the same payment as you currently do, or extending the term of the loan which results in improved cashflow with the cost of paying more interest. It's a rare case where a recast is a helpful tool. If you can refinance...
by nolesrule
Fri Aug 16, 2019 8:41 am
Forum: Personal Investments
Topic: Max HSA on Jan 1 or biweekly
Replies: 15
Views: 860

Re: Max HSA on Jan 1 or biweekly

Also, to the extent your salary might be above the SS max, I believe HSA contributions (even if through payroll deduction) effectively only avoid the Medicare portion. It looks like HSA contributions are always exempt from both social security and medicare taxes. https://www.hsaedge.com/2018/09/23/...
by nolesrule
Wed Aug 14, 2019 7:41 am
Forum: Personal Finance (Not Investing)
Topic: House purchase (cash)... wire transfer or cashier's check?
Replies: 32
Views: 2055

Re: House purchase (cash)... wire transfer or cashier's check?

Funny - the title company i have used do want to use Wired funds - as then they have the funds available, but then for the Seller - they want to write a check and not send a wire - or have the Seller pay the wire transfer fees. And if you do a remote closihg as a seller, they'll charge you an overn...
by nolesrule
Tue Aug 13, 2019 8:42 am
Forum: Personal Finance (Not Investing)
Topic: House purchase (cash)... wire transfer or cashier's check?
Replies: 32
Views: 2055

Re: House purchase (cash)... wire transfer or cashier's check?

We're purchasing new construction next week. Spoke to our soon-to-be neighbors last week, and they showed up with a cashier's check. Title company would not accept it. Their closing was delayed a few hours in order to return the cashier's check and initiate a wire transfer.
by nolesrule
Sun Aug 11, 2019 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Multiple appraisal for multiple quote for mortgage loan?
Replies: 11
Views: 434

Re: Multiple appraisal for multiple quote for mortgage loan?

FYI. I locked 3.375% 30-year with 0.25 points on Friday. I rolled the points into the new loan. Rates seemed to have increased a bit since then. Edit: this is a refinance Did you compare several lenders? I was told by one of the readers in the forum before. I should gather all required documents an...
by nolesrule
Fri Aug 09, 2019 11:00 am
Forum: Personal Investments
Topic: Retirement Planning 401k Traditional /401 Roth
Replies: 42
Views: 1411

Re: Retirement Planning 401k Traditional /401 Roth

Run the numbers. Using OP’s current Trad balance, 7% return, and $19k per year he’ll be at $2.5m by age 60. S&P historical return is 10%. He will be in that 24% tax bracket, unless he find a partner who only consumes :) What tax bracket will this contribution be withdrawn at in retirement? The answ...
by nolesrule
Fri Aug 09, 2019 9:48 am
Forum: Personal Investments
Topic: Retirement Planning 401k Traditional /401 Roth
Replies: 42
Views: 1411

Re: Retirement Planning 401k Traditional /401 Roth

It’s not a no brainer. Guessing the future is tough. I’m pro Roth, at you’re savings rate when you withdraw you’ll more than likely be in the same tax bracket as today. You need to save enough in traditional to get to that tax bracket in retirement, otherwise you've paid too much tax to put money i...
by nolesrule
Fri Aug 09, 2019 8:37 am
Forum: Personal Investments
Topic: Retirement Planning 401k Traditional /401 Roth
Replies: 42
Views: 1411

Re: Retirement Planning 401k Traditional /401 Roth

What I don’t see posted are the likelihood of what tax brackets will be. That's because a) nobody knows, and b) discussions of proposed laws or regulations are prohibited here. Single in 2017 the OP would be in 25% tax bracket at $40k. In 2019 he’s in the 24% bracket now with $130k. The tax cut and...
by nolesrule
Thu Aug 08, 2019 11:27 am
Forum: Personal Investments
Topic: Retirement Planning 401k Traditional /401 Roth
Replies: 42
Views: 1411

Re: Retirement Planning 401k Traditional /401 Roth

In your tax bracket, I would think you'd want to contribute to Traditional to 401k. Do you have any Traditional 401k or IRA money already?

There is also the possibility Backdoor Roth when your MAGI is too high fordirect Roth contributions.
by nolesrule
Wed Aug 07, 2019 5:13 pm
Forum: Personal Investments
Topic: UGMA vs Vanguard Brokerage Account
Replies: 10
Views: 346

Re: UGMA vs Vanguard Brokerage Account

Look into the differences in tax treatment for interest/dividends/capital gains in a custodial account vs. your own tax rates.
by nolesrule
Wed Aug 07, 2019 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Selling home- Demanding Buyer (Repairs)
Replies: 417
Views: 38664

Re: Selling home- Demanding Buyer (Repairs)

We gave concessions to a cash buyer in lieu of repairs, because 1) we'd already moved out of state, and 2) the inspection did not provide any photographs of the issues, which would have made it difficult to direct any contractor we hired, and 3) it was a pain in the butt getting contractors out to d...
by nolesrule
Wed Aug 07, 2019 12:14 pm
Forum: Personal Investments
Topic: New Jersey taxes
Replies: 58
Views: 3135

Re: New Jersey taxes

We left New Jersey on July 19th. Our property taxes were about $9300/yr on a $320k-ish 1900sq ft wood frame house in western Morris County.
by nolesrule
Tue Aug 06, 2019 10:30 am
Forum: Personal Investments
Topic: Cash needs better yield - need help with TEY and comparison
Replies: 6
Views: 484

Re: Cash needs better yield - need help with TEY and comparison

Prime MM is not fully state taxable. Last year about 28% of interest was from US Goverment Obligations.
by nolesrule
Tue Aug 06, 2019 7:57 am
Forum: Personal Investments
Topic: Help :) Backdoor Roth Settlement Account
Replies: 24
Views: 1030

Re: Help :) Backdoor Roth Settlement Account

You'll get a 1099-R for the distribution from the Traditional IRA and you will complete Form 8606 which will calculate the taxable amount of the Roth conversion.
by nolesrule
Tue Aug 06, 2019 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Renegotiate Rate 30 Days from Closing? (First Time Homebuyer)
Replies: 3
Views: 486

Re: Renegotiate Rate 30 Days from Closing? (First Time Homebuyer)

Interesting, thanks for the feedback. I had assumed that the appraisal I bought could be carried to a new lender but have not verified that. Nope. Read the fine print on the appraisals. They can only be used by the the person/entity who ordered it... and that's usually the mortgage company. It's a ...
by nolesrule
Mon Aug 05, 2019 1:18 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 12034
Views: 2047363

Re: U.S. stocks in free fall

<t>I've been sitting on the sideline with new money, but not because of market conditions. We've been in the middle of a relocation, so decided to keep in cash money that would have been invested over the last several months just to ensure we'd qualify for a mortgage with the down payment we wanted ...
by nolesrule
Mon Aug 05, 2019 8:30 am
Forum: Personal Investments
Topic: Help :) Backdoor Roth Settlement Account
Replies: 24
Views: 1030

Re: Help :) Backdoor Roth Settlement Account

Convert everything. It makes the Form 8606 easier since there will be no pro-rata and no carryover of basis, as little as it might be.
by nolesrule
Fri Aug 02, 2019 7:53 am
Forum: Personal Investments
Topic: Pay off $17k student loan or max out 401k this year?
Replies: 48
Views: 3218

Re: Pay off $17k student loan or max out 401k this year?

If you have the income to max out a 401k or pay off the loans in less than half a year, you have the income to max out the 401k this year and next year max out the 401k and pay off the loans.
by nolesrule
Mon Jul 29, 2019 2:42 pm
Forum: Personal Investments
Topic: Child Care Flex Spending Accout
Replies: 12
Views: 642

Re: Child Care Flex Spending Accout

Even if you can't get the Dependent Care FSA for this year, you can still claim a tax credit on unreimbursed childcare expenses. There are limits based on 1 or 2+ children, and also there are reductions to the amount if you have DC FSA reimbursed expenses. See Form 2441 and instructions.
by nolesrule
Mon Jul 29, 2019 2:09 pm
Forum: Personal Investments
Topic: Starting job mid-year and 401k HCE
Replies: 8
Views: 545

Re: Starting job mid-year and 401k HCE

However, at the new job, you are not an HCE in 2019 (assuming you have never worked there before) and therefore would be eligible for the $56k annual 401k contribution with respect to new employer plan inclusive of all plans . In other words, $56,000 minus any contributions to any other QRP (like p...
by nolesrule
Mon Jul 29, 2019 12:58 pm
Forum: Personal Investments
Topic: Starting job mid-year and 401k HCE
Replies: 8
Views: 545

Re: Starting job mid-year and 401k HCE

However, at the new job, you are not an HCE in 2019 (assuming you have never worked there before) and therefore would be eligible for the $56k annual 401k contribution with respect to new employer plan inclusive of all plans . In other words, $56,000 minus any contributions to any other QRP (like p...
by nolesrule
Sun Jul 28, 2019 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Dependent care FSA
Replies: 8
Views: 569

Re: Dependent care FSA

We max our dependent care FSA $5000/year. Because we are in a high tax bracket this saves $2,000/yr. Also we don't qualify for the child tax credit due to phaseout. The child tax credit is not phased out completely, you get $200 minimum. Just saying ... our combined income is mid 200's and we have ...
by nolesrule
Thu Jul 25, 2019 3:48 pm
Forum: Personal Investments
Topic: Adding Solo Roth 401(k) for side hustle?
Replies: 13
Views: 974

Re: Adding Solo Roth 401(k) for side hustle?

You have to be careful with employer contributions to solo 401k at low SE income amounts, as employer contributions also reduce compensation eligible for contribution to the Solo 401k. You should review the worksheet in Chapter 5 of Publication 560.
by nolesrule
Wed Jul 24, 2019 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Confused about above the line AGI deductions...
Replies: 12
Views: 857

Re: Confused about above the line AGI deductions...

Carl53 wrote:
Wed Jul 24, 2019 12:29 pm
Your income as a couple is over $250k. I believe there exist Additional Medicare taxes thus due.
https://www.thebalancesmb.com/medicare-tax-3193121
Additionally any income from capital gains, dividends and interest would be subject to 3.8% NIIT.
by nolesrule
Wed Jul 24, 2019 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Confused about above the line AGI deductions...
Replies: 12
Views: 857

Re: Confused about above the line AGI deductions...

Did you look at your 2018 tax return to see what you are missing?

Your W-2 Box 1 income is gross less all pretax deductions, and that goes on the first line of your tax return.

Additionally your Box 1 may include imputed income from certain employer paid benefits.
by nolesrule
Thu Jul 18, 2019 4:58 pm
Forum: Personal Investments
Topic: What to do with my I-401k when I change jobs?
Replies: 9
Views: 927

Re: What to do with my I-401k when I change jobs?

You only have to terminate a 401k if the employer closes. If you're self-employed, your employer can't close unless you die.
by nolesrule
Wed Jul 17, 2019 8:14 am
Forum: Personal Finance (Not Investing)
Topic: EF in Roth IRA for NJ resident and withdrawal consequences
Replies: 18
Views: 841

Re: EF in Roth IRA for NJ resident and withdrawal consequences

Probably not a helpful comment, but you could consider doing what grabiner did, and I'm doing on Friday.... leave New Jersey. Looking forward to getting my HSA out of a Treasury fund once we establish our permanent residence in 37 days. It is on my to-do list, my wife still has cold-feet. May I ask...
by nolesrule
Wed Jul 17, 2019 6:01 am
Forum: Personal Finance (Not Investing)
Topic: EF in Roth IRA for NJ resident and withdrawal consequences
Replies: 18
Views: 841

Re: EF in Roth IRA for NJ resident and withdrawal consequences

Probably not a helpful comment, but you could consider doing what grabiner did, and I'm doing on Friday.... leave New Jersey. Looking forward to getting my HSA out of a Treasury fund once we establish our permanent residence in 37 days. It is on my to-do list, my wife still has cold-feet. May I ask...
by nolesrule
Tue Jul 16, 2019 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: House not appraising for amount we were offered!
Replies: 137
Views: 13949

Re: House not appraising for amount we were offered!

Just my "guess", but I suspect that in a hot market with rising sale prices, there may be a lag in appraisal amounts in catching up with sales. I strongly suspect that is the case as well. I've never completely understood the process of using comps in an appraisal. If fair market value is determine...
by nolesrule
Tue Jul 16, 2019 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: EF in Roth IRA for NJ resident and withdrawal consequences
Replies: 18
Views: 841

Re: EF in Roth IRA for NJ resident and withdrawal consequences

Probably not a helpful comment, but you could consider doing what grabiner did, and I'm doing on Friday.... leave New Jersey. Looking forward to getting my HSA out of a Treasury fund once we establish our permanent residence in 37 days. We really would love to, the problem is, once I got a decent s...
by nolesrule
Tue Jul 16, 2019 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: EF in Roth IRA for NJ resident and withdrawal consequences
Replies: 18
Views: 841

Re: EF in Roth IRA for NJ resident and withdrawal consequences

Probably not a helpful comment, but you could consider doing what grabiner did, and I'm doing on Friday.... leave New Jersey.

Looking forward to getting my HSA out of a Treasury fund once we establish our permanent residence in 37 days.
by nolesrule
Tue Jul 16, 2019 9:49 am
Forum: Personal Investments
Topic: Not Another Pay off the House or Invest...
Replies: 29
Views: 2592

Re: Not Another Pay off the House or Invest...

This means holding a loan below $377k or close ($388k) means I do not get a tax benefit and it is costing me 3.875% after tax, well... barely so far, but it will get worse as the loan goes on. Inflation is like 2% so the 3.875% is really like 1.875%. I wouldn't invest the extra payment in the marke...
by nolesrule
Thu Jul 11, 2019 3:33 pm
Forum: Personal Investments
Topic: Just discovered we may not be eligible for Roth IRA anymore
Replies: 37
Views: 3375

Re: Just discovered we may not be eligible for Roth IRA anymore

There is one thing you can do: have your current year Roth contributions characterized as non-deductible Traditional IRA contribution, then use those funds to invest in bond funds only. Consider this as part of your bond portfolio. In the case of not being able to do the backdoor because of a tradi...
by nolesrule
Thu Jul 11, 2019 3:31 pm
Forum: Personal Investments
Topic: Just discovered we may not be eligible for Roth IRA anymore
Replies: 37
Views: 3375

Re: Just discovered we may not be eligible for Roth IRA anymore

deltaneutral83 wrote:
Thu Jul 11, 2019 3:30 pm
triton1987 wrote:
Thu Jul 11, 2019 2:21 pm

Up until now I've been under the cap for Roth IRA contributions being single and reducing my MAGI with 401(k) contributions and standard deduction or itemizing, depending on the year.
Standard deduction reduces MAGI for Roth purposes?
No.
by nolesrule
Fri Jul 05, 2019 1:38 pm
Forum: Personal Investments
Topic: Multiple HSA Account Question
Replies: 9
Views: 669

Re: Multiple HSA Account Question

@beyou, @terran I am providing some more information below: BoA HSA: My current employer contributes to the BoA HSA. Investment account options are below. I am trying to find out the fees here. FUND NAME TICKER COLUMBIA GLOBAL STRAT EQTY ADV CWPRX COLUMBIA CAPTL ALLOC CNSRV ADV CPCYX COLUMBIA CAP A...
by nolesrule
Fri Jul 05, 2019 1:24 pm
Forum: Personal Investments
Topic: Bad 401K or Roth IRA for a 12% tax bracket couples?
Replies: 18
Views: 1072

Re: Bad 401K or Roth IRA for a 12% tax bracket couples?

S&P 500 fund. Unless there are admin fees on top of that, it's something I could live with.

I don't have any funds with ERs that low in my 401k, and there's an additional 0.70% in admin fees on top of that. I just live with it.
by nolesrule
Mon Jul 01, 2019 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: Feels like never enough in savings?
Replies: 27
Views: 3108

Re: Feels like never enough in savings?

The thing that keeps me from over-saving is to give every dollar a job. I have 6 months expenses, some maintenance/repair funds and any money I plan to save to spend spend in the next 5 years in cash and cash-like accounts. The rest gets invested after maxing out tax advantaged accounts.
by nolesrule
Sun Jun 30, 2019 8:23 am
Forum: Personal Investments
Topic: Solo 401k vs SEP-IRA in addition to 403b
Replies: 7
Views: 368

Re: Solo 401k vs SEP-IRA in addition to 403b

SEP-IRA would interfere with doing the Backdoor Roth, as it is an IRA that would be included in the aggregation of traditional IRA account balances.
by nolesrule
Sun Jun 30, 2019 8:05 am
Forum: Personal Finance (Not Investing)
Topic: dependent care FSA/child tax decution affects on MAGI
Replies: 11
Views: 847

Re: dependent care FSA/child tax decution affects on MAGI

Some things you may want to consider before diving into a dependent care FSA. 1. It's use it or lose it in the year you contributed. 2. Some daycare centers do not take newborn infants younger than 3 or 6 months. 3. The daycares that do take newborns may charge sky high rates. 4. Your spouse must b...
by nolesrule
Sat Jun 29, 2019 3:18 pm
Forum: Personal Investments
Topic: Solo 401k vs SEP-IRA in addition to 403b
Replies: 7
Views: 368

Re: Solo 401k vs SEP-IRA in addition to 403b

Seeing as with your income level you can't make deductible contributions to Traditional IRAs, you should open up a solo 401k and move any pre-tax money from your Traditional IRA into the Solo 401k, to open up the ability to do a Backdoor Roth. I know there are some specific rules about contributing ...
by nolesrule
Fri Jun 28, 2019 8:22 pm
Forum: Investing - Theory, News & General
Topic: What do you hold in your IRA and Why?
Replies: 48
Views: 3552

Re: What do you hold in your IRA and Why?

We hold Total International Stock Fund in our Roth IRAs. Why? Because the International options aren't that good in our 401k, so we're trying to reduce it and possibly eliminate it in the 401k. We also hold it as part of our taxable account.
by nolesrule
Tue Jun 25, 2019 5:28 pm
Forum: Personal Investments
Topic: After Tax 401(k) Rollover
Replies: 18
Views: 1192

Re: After Tax 401(k) Rollover

You don't need to convert the Traditional IRA at all. If it would interfere with the Backdoor Roth (non-deductible contribution to TIRA followed by Roth conversion), then you could also possibly roll the Traditional IRA with the earnings from the split rollover back into the 401k to avoid interferen...