Search found 433 matches

by SpideyIndexer
Sun Feb 10, 2019 3:08 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Conversion Being Taxed
Replies: 18
Views: 1386

Re: Backdoor Conversion Being Taxed

I started a thread a week or so about a similar issue. In my case I did the backdoor process before earning enough income to allow a deductible contribution. I have a choice on how to do the tax accounting and I suspect you do too: 1. Don't claim the deduction for the tIRA contribution; instead stat...
by SpideyIndexer
Wed Feb 06, 2019 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversions from SE401(k)
Replies: 1
Views: 70

Roth Conversions from SE401(k)

Has anyone done this? I am investigating the process. Mostly good news from Fidelity: Any investments can be converted, no need to prorate across all holdings. I forgot to ask if I could pay the taxes from an outside account, but I doubt it. In kind transfer can be done. Any amount of tax withholdin...
by SpideyIndexer
Tue Feb 05, 2019 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Medigap Plan F Extra (California)
Replies: 7
Views: 540

Re: Medigap Plan F Extra (California)

Sounds like the Anthem Innovative Plan F.
by SpideyIndexer
Tue Feb 05, 2019 2:15 am
Forum: Personal Finance (Not Investing)
Topic: better retirement distribution and Roth conversion income tax withholding
Replies: 1
Views: 178

better retirement distribution and Roth conversion income tax withholding

Paying estimated taxes on TD retirement account distributions and Roth conversions can be a pain to deal with. Roth conversions more so as they may not be executed until late in the tax year and currently no tax can be withheld. IRAs and 401(k)s have mandatory federal withholding of 10% and 20% resp...
by SpideyIndexer
Tue Feb 05, 2019 1:11 am
Forum: Personal Finance (Not Investing)
Topic: Choose Deductible Roth Conversion or Non Deductible?
Replies: 6
Views: 461

Re: Choose Deductible Roth Conversion or Non Deductible?

My state taxes Roth conversions. And I should not need the money in 5 years. So flip the coin, I guess. For a while I only have had non-deductible IRA contributions. It seems funny to have a deductible one this year but since it has been converted it won't interfere with any future backdoor Roth con...
by SpideyIndexer
Tue Feb 05, 2019 1:02 am
Forum: Personal Investments
Topic: Can I cancel a recent IRA contribution?
Replies: 20
Views: 3253

Re: Can I cancel a recent IRA contribution?

It seems the headache is minor rather than massive....I think. It is a distribution on the 1099 but still a return of excess contribution. Perhaps the IRS will question me later with one of their nice CP2000 letters.
by SpideyIndexer
Sat Feb 02, 2019 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Is roth conversion worth it in all cases?
Replies: 55
Views: 4003

Re: Is roth conversion worth it in all cases?

Is it worth it? It depends. Look carefully at any pre-SS income you may be receiving. Consider your tax brackets and IRMAA which will apply to you only for now. Also expected tax brackets in retirement. My opinion is that converting up to the 22% bracket seems to make sense. With tax rates being his...
by SpideyIndexer
Fri Feb 01, 2019 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: Choose Deductible Roth Conversion or Non Deductible?
Replies: 6
Views: 461

Choose Deductible Roth Conversion or Non Deductible?

Last year I performed what I expected to be a standard backdoor conversion, making an planned non-deductible IRA contribution and converting all of it. Afterwards I earned sufficient income that the IRA contribution could be deductible. If I had anticipated the income, I might have delayed performin...
by SpideyIndexer
Fri Feb 01, 2019 3:05 am
Forum: Personal Investments
Topic: Can I cancel a recent IRA contribution?
Replies: 20
Views: 3253

Re: Can I cancel a recent IRA contribution?

How was this resolved? I have a similar problem. I made a traditional IRA contribution late in the year, and asked Fidelity to undo it about a week later. Which they did, but they coded as a distribution. They didn't discuss this with me and I am finding it to be a massive headache to fill Turbotax ...
by SpideyIndexer
Wed Jan 30, 2019 2:27 am
Forum: Personal Finance (Not Investing)
Topic: HSA catchup contributions, multiple HSAs
Replies: 4
Views: 361

Re: HSA catchup contributions, multiple HSAs

You could put it that way. Alternatively you could say that since she had HDHP coverage the full year, she is entitled to a full year catchup. Whichever view works best for you. Extending things for the full year with each spouse owning an HSA and both with family HDHP coverage, they can contribute ...
by SpideyIndexer
Tue Jan 29, 2019 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: HSA catchup contributions, multiple HSAs
Replies: 4
Views: 361

HSA catchup contributions, multiple HSAs

We had family coverage in an HDHP last year for 7 months. For the last 5 months I moved to Medicare leaving my spouse with single coverage in an HDHP. For the first 7 months, I should be entitled to contribute a prorated amount of the $6900 annual family limit plus a prorated amount of my $1000 catc...
by SpideyIndexer
Sun Jan 27, 2019 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Can sum of IRA contributions exceed Earned Income?
Replies: 14
Views: 891

Re: Can sum of IRA contributions exceed Earned Income?

+1 to above. Also, the sum of all employee retirement contributions are limited to earned income. So with 7K earned income, if you contribute 1300 to a SEP then the maximum tIRA contribution would be 5700. Btw this amount is correct for 2019, assuming you qualify for the catch-up contribution. For 2...
by SpideyIndexer
Sat Jan 26, 2019 11:50 pm
Forum: Personal Finance (Not Investing)
Topic: solo 401(k) effect on deductible IRA contributions
Replies: 3
Views: 229

Re: solo 401(k) effect on deductible IRA contributions

Spirit Rider, thanks for the clarification, which is good news. However it is unfortunate indeed that the IRS uses the "covered by" language in their publications. If this language is not in line with the tax code where the correct requirement is "being an active participant," would a taxpayer then ...
by SpideyIndexer
Sat Jan 26, 2019 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: solo 401(k) effect on deductible IRA contributions
Replies: 3
Views: 229

solo 401(k) effect on deductible IRA contributions

It appears that having a solo 401(k), even with no contributions in a given year, puts me in the position of being covered by a retirement plan at work. Therefore any deductible IRA contributions would be subject to the phaseout provisions based on MAGI. To avoid this I would need arrange for the so...
by SpideyIndexer
Thu Jan 24, 2019 12:41 pm
Forum: Investing - Theory, News & General
Topic: tool for comparing asset class price history
Replies: 1
Views: 139

tool for comparing asset class price history

Years ago I had used Yahoo Finance, then Google Finance for this purpose, and plugged in Vanguard or Fidelity or iShares MFs and ETFs. But it seem both have lost the features of plotting price history with the granularity I seek. Any suggestions? Ideally I'd like a free online tool.
by SpideyIndexer
Sat Jan 05, 2019 2:07 am
Forum: Personal Investments
Topic: Consolidate to Fidelity?
Replies: 50
Views: 2975

Re: Consolidate to Fidelity?

Some comments: Vanguard has the "investors own the funds" going for it but you can invest in the ETFs elsewhere. Vanguard MFs have high transaction fees elsewhere. They don't allow changes to MF transactions before they execute. Limit orders GTC terms are fixed at 60 days with no choice. Information...
by SpideyIndexer
Fri Jan 04, 2019 4:32 pm
Forum: Personal Investments
Topic: 5 year CDs @Penfed mature 1/22/19
Replies: 30
Views: 3130

Re: 5 year CDs @Penfed mature 1/22/19

Actually they may have LOWERED their rate recently from 2.9% to 2.85%. Sorry for the confusion. A 14 month at 2.85% is still more appealing (at least to me) than a 5 year at 3.5%. Granted, I tend to think that rates will increase steadily over the next several years... Especially when the EWP for 1...
by SpideyIndexer
Fri Jan 04, 2019 3:13 pm
Forum: Personal Investments
Topic: 5 year CDs @Penfed mature 1/22/19
Replies: 30
Views: 3130

Re: 5 year CDs @Penfed mature 1/22/19

Actually they may have LOWERED their rate recently from 2.9% to 2.85%. Sorry for the confusion.
by SpideyIndexer
Fri Jan 04, 2019 2:36 pm
Forum: Personal Investments
Topic: 5 year CDs @Penfed mature 1/22/19
Replies: 30
Views: 3130

Re: 5 year CDs @Penfed mature 1/22/19

No I don't have a link, sorry. I think they bumped up their rate but haven't publicized it. Seems the Ally CD is a much better deal if you anticipate a need to break the CD before 57 months, and can get the same rate or better when it matures. OTOH if you hold the 3.5% 5yr CD to maturity and compoun...
by SpideyIndexer
Fri Jan 04, 2019 1:49 pm
Forum: Personal Investments
Topic: 5 year CDs @Penfed mature 1/22/19
Replies: 30
Views: 3130

Re: 5 year CDs @Penfed mature 1/22/19

I corrected an error. The Ally Select 14 mo. CD has 2.9% APY, 60 day EWP. It is not very prominent on their website.
by SpideyIndexer
Thu Jan 03, 2019 12:46 pm
Forum: Personal Investments
Topic: 5 year CDs @Penfed mature 1/22/19
Replies: 30
Views: 3130

Re: 5 year CDs @Penfed mature 1/22/19

Yes, I agree with your take on the Penfed EWP. They must be seeing a lot of outflow now. I haven't lately found good rates for 5 year CDs. Vanguard also has brokered CDs. However breaking a brokered CD (besides being a tongue-twister) involves selling it at a discount so the EWP is hard to determine...
by SpideyIndexer
Thu Jan 03, 2019 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: SE Health Ins & Retirement & QBI Deductions
Replies: 0
Views: 111

SE Health Ins & Retirement & QBI Deductions

I know about maximizing the Self-Employed Health Insurance Deduction before making contributions to a SE retirement plan such as a solo 401(k), SIMPLE or SEP. Does the new QBI deduction now enter into this?
by SpideyIndexer
Wed Jan 02, 2019 7:44 pm
Forum: Personal Investments
Topic: VCIT vs IGIB
Replies: 2
Views: 167

Re: VCIT vs IGIB

Yes, that seems to make sense in terms of the more recent performance. iShares has a bewildering array of similar but not identical corporate bond ETFs: SLQD (0-5yr) and IGSB (1-5yr); also LQD and IGIB.

"IG" means Investment Grade corporate, the G does not mean government!
by SpideyIndexer
Wed Jan 02, 2019 2:53 pm
Forum: Personal Investments
Topic: VCIT vs IGIB
Replies: 2
Views: 167

VCIT vs IGIB

I was wondering if anyone compared these two IT corporate bond etfs. On first glance they appear similar in terms of portfolio, ER, SEC yield. But VCIT has performed much better from 2010 to now..4.89% CAGR vs 3.10% for IGIB though with worse drawdown. It may be I am misunderstanding the credit risk...
by SpideyIndexer
Wed Jan 02, 2019 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Tax withholding for Roth Conversion
Replies: 11
Views: 1066

Re: Tax withholding for Roth Conversion

As above, you will need to run through 2210 to determine what you should do. A Q4 estimated tax payment may or may not prevent an underpayment penalty. Remember that you must have paid enough each "quarter", not just in the last. For most, the most surefire way to safely avoid underpayment is overw...
by SpideyIndexer
Wed Dec 19, 2018 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: FDIC insurance
Replies: 3
Views: 414

FDIC insurance

The best resource I found is the FDIC brochure here: https://www.fdic.gov/deposit/deposits/brochures.html There is some incorrect information being given. For example a bank rep said each separate CD account is insured up to $250K even with the same ownership. That is false unless the beneficiaries ...
by SpideyIndexer
Sat Dec 15, 2018 2:26 pm
Forum: Investing - Theory, News & General
Topic: Which asset class is down the most for you?
Replies: 26
Views: 2317

Re: Which asset class is down the most for you?

Year to date is basically the 11 month return. So yes US equities such as TSM and US small value are way down. But if you look at the 5 yr return they are have been great. The 5-yr CAGR of VTI has been 11% and IJS 8.8% with dividends reinvested. Think long term. Rebalance to lock in gains especially...
by SpideyIndexer
Thu Dec 13, 2018 6:03 pm
Forum: Personal Investments
Topic: Non-Qualified Deferred Compensation (NQDC) Distribution Election
Replies: 20
Views: 958

Re: Non-Qualified Deferred Compensation (NQDC) Distribution Election

IMO there is little in it for the average employee in these plans and I suspect companies do it primarily to improve their own books. Isn't deferred comp, in general, a tool to keep good people from leaving the company.... no? Well maybe in this case a tool to either make them stay and fight to kee...
by SpideyIndexer
Wed Dec 12, 2018 10:15 pm
Forum: Personal Investments
Topic: Non-Qualified Deferred Compensation (NQDC) Distribution Election
Replies: 20
Views: 958

Re: Non-Qualified Deferred Compensation (NQDC) Distribution Election

Well the company contribution is a good reason to not delay contribution. Is there some matching involved, or can she contribute 1% and the company contributes its 4%? (my guess from the figures mentioned) But I second TxInjun, double check about the distribution. Quite possible the distribution for...
by SpideyIndexer
Tue Dec 11, 2018 7:24 pm
Forum: Personal Investments
Topic: Non-Qualified Deferred Compensation (NQDC) Distribution Election
Replies: 20
Views: 958

Re: Non-Qualified Deferred Compensation (NQDC) Distribution Election

A few thoughts: 1. First I would wait a while until you are in a high tax bracket, e.g. 32% with the current code. 2. A lump sum is good for getting your money back. If your wife is worried about the fiscal health of the company she can quit. BUT if this occurs after many years of deferrals and grow...
by SpideyIndexer
Sun Dec 02, 2018 4:28 pm
Forum: Personal Consumer Issues
Topic: Xfinity Mobile phone service
Replies: 11
Views: 1652

Re: Xfinity Mobile phone service

Have been trying in vain to qualify for about 3 months and am extremely frustrated with the entire process. The explanations for failing the credit check have been unclear and incorrect. Comcast's business model is to have zillions of customer service reps who know nothing working off a script and a...
by SpideyIndexer
Sun Dec 02, 2018 3:31 pm
Forum: Personal Investments
Topic: minimizing backdoor Roth paperwork
Replies: 5
Views: 457

Re: minimizing backdoor Roth paperwork

I'd rather not fill out Form 8606 at all! Seriously, I expect to fill it out this year and the next, and hopefully a few additional years. So my choice is between a simpler 8606 in 2018 and either a simpler one or more complicated one in 2019. Sounds like a don't care. There may be another point reg...
by SpideyIndexer
Sat Dec 01, 2018 7:57 pm
Forum: Personal Investments
Topic: minimizing backdoor Roth paperwork
Replies: 5
Views: 457

minimizing backdoor Roth paperwork

For 2018, I had originally thought my spouse and I would not qualify for tIRA contributions due to low earned income. However, I was mistaken. Our current situation is my spouse contributed $3500 which was later converted to a Roth. However now the tIRA balance shows a few dollars of interest. My sp...
by SpideyIndexer
Tue Nov 20, 2018 12:34 am
Forum: Personal Finance (Not Investing)
Topic: Amazon says TurboTax 2018 will be released November 12
Replies: 85
Views: 10286

Re: Amazon says TurboTax 2018 will be released November 12

Bought H&B last week from Amazon. For some reason my purchase hung up without getting a download in my software library. Had to call Amazon to have the purchase cancelled and buy it again. It works but seems to lag some tax code changes, such as the latest HSA contribution ceilings. RIght now it wi...
by SpideyIndexer
Mon Nov 19, 2018 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: renamed business license requires new SE401(k)?
Replies: 2
Views: 285

Re: renamed business license requires new SE401(k)?

Yes the custodian said there is no problem as long as the tax id is the same. We could amend the Adoption Agreement if we wish.
by SpideyIndexer
Mon Nov 19, 2018 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: Amazon says TurboTax 2018 will be released November 12
Replies: 85
Views: 10286

Re: Amazon says TurboTax 2018 will be released November 12

RIght now it will not allow property taxes to be entered. Federal tax brackets and the standard deduction look right. I don't expect property taxes to affect my federal taxes but the field is there. While the interview section won't allow it, you can enter them in forms mode. I'd suggest entering t...
by SpideyIndexer
Mon Nov 19, 2018 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Amazon says TurboTax 2018 will be released November 12
Replies: 85
Views: 10286

Re: Amazon says TurboTax 2018 will be released November 12

Bought H&B last week from Amazon. For some reason my purchase hung up without getting a download in my software library. Had to call Amazon to have the purchase cancelled and buy it again. It works but seems to lag some tax code changes, such as the latest HSA contribution ceilings. RIght now it wil...
by SpideyIndexer
Sun Nov 18, 2018 10:26 pm
Forum: Personal Finance (Not Investing)
Topic: renamed business license requires new SE401(k)?
Replies: 2
Views: 285

renamed business license requires new SE401(k)?

My spouse's local business license expired early in the year. Not being sure whether whether it would continue, the license lapsed. Once it become clear there were some opportunities, the business was re-licensed under a different name rather than pay a penalty for a late renewal. Looking into the t...
by SpideyIndexer
Mon Nov 12, 2018 1:06 pm
Forum: Personal Investments
Topic: Financial Engines thru Vanguard
Replies: 14
Views: 975

Re: Financial Engines thru Vanguard

They offer several levels of service. You may be entitled to investment advice from them either through an employer or through a financial institution if you have a sufficiently high balance. Or let them rebalance your account for a fee that is lower than most managers. But I found their projections...
by SpideyIndexer
Fri Oct 26, 2018 2:45 pm
Forum: Investing - Theory, News & General
Topic: Paul Merriman 2 Funds for Life
Replies: 41
Views: 7800

Re: Paul Merriman 2 Funds for Life

I would assume at age 67 and older you stay at 100% TDF, according to this suggestion.
by SpideyIndexer
Fri Oct 26, 2018 11:42 am
Forum: Investing - Theory, News & General
Topic: Matter/scatter, part 10: International with and without emerging markets
Replies: 33
Views: 2013

Re: Matter/scatter, part 10: International with and without emerging markets

It is well-known that long treasuries have had a great negative correlation to the equities. Check out returns of a 60/40 portfolio of small cap value and long term treasuries. Great return vs SD. I don't know that the OP has proven that EM is a magic bullet for the equity holding. Now many Boglehea...
by SpideyIndexer
Fri Oct 26, 2018 11:41 am
Forum: Investing - Theory, News & General
Topic: Matter/scatter, part 10: International with and without emerging markets
Replies: 33
Views: 2013

Re: Matter/scatter, part 10: International with and without emerging markets

It is well-known that long treasuries have had a great negative correlation to the equities. Check out returns of a 60/40 portfolio of small cap value and long term treasuries. Great return vs SD. I don't know that the OP has proven that EM is a magic bullet for the equity holding. Now many Boglehea...
by SpideyIndexer
Fri Oct 26, 2018 11:04 am
Forum: Investing - Theory, News & General
Topic: Paul Merriman 2 Funds for Life
Replies: 41
Views: 7800

Re: Paul Merriman 2 Funds for Life

Oh, I expected it to be the SCV and long treasuries combination which backtests extremely well.
by SpideyIndexer
Wed Oct 24, 2018 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: IRS - Anyone deal with you owe us more tax letter?
Replies: 13
Views: 1877

Re: IRS - Anyone deal with you owe us more tax letter?

Yes, dealing with the IRS can frustrating. In my cover letter I requested the IRS telephone me to confirm receipt of the fax, which didn't happen. I called the following week and the agent did confirm receipt of my fax. The IRS does say the sending duplicate responses can further delay them, so you ...
by SpideyIndexer
Tue Oct 23, 2018 10:43 pm
Forum: Personal Finance (Not Investing)
Topic: NQDC versus after-tax 401(k) investment priority
Replies: 11
Views: 711

Re: NQDC versus after-tax 401(k) investment priority

Have you considered the timing of the DCP payouts and the conversions? If they occur in the same years, you may be in pretty high tax bracket. I just saw that you are aiming to retire at 50. That would allow plenty of time for payouts to finish before Roth conversions. Though it also allows plenty o...
by SpideyIndexer
Tue Oct 23, 2018 5:30 pm
Forum: Personal Finance (Not Investing)
Topic: IRS - Anyone deal with you owe us more tax letter?
Replies: 13
Views: 1877

Re: IRS - Anyone deal with you owe us more tax letter?

Regarding my first issue for which my mailed response was never received by the correct department, an agent recommended that additional data are best sent by fax. It is quicker, not just the USPS part but because sending a fax avoids the slow routing of the IRS mail system. The fax number is on the...
by SpideyIndexer
Tue Oct 23, 2018 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: Credit card claim for rental car collision?
Replies: 36
Views: 3164

Re: Credit card claim for rental car collision?

Not exactly a collision, My rental was keyed in Hawaii (be careful where you park!) The estimate for repainting (~$800) was provided by the rental agency and not questioned. I took some photos which were helpful. Visa Gold eventually paid but mucho paperwork to copy and forward, and many phone calls...
by SpideyIndexer
Mon Oct 22, 2018 4:50 pm
Forum: Personal Consumer Issues
Topic: Beer - Strong German Style Lagers
Replies: 56
Views: 4941

Re: Beer - Strong German Style Lagers

Blueskies123 wrote:
Sat Oct 20, 2018 7:21 pm
Check the calories on those beers. I have to drink light to keep my weight down.
A friend was losing weight. His doctor advised him to drink beer.
by SpideyIndexer
Mon Oct 22, 2018 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: IRS - Anyone deal with you owe us more tax letter?
Replies: 13
Views: 1877

Re: IRS - Anyone deal with you owe us more tax letter?

Do a search for "CP2000" and you'll find lots of threads. These are usually triggered automatically by the IRS computer system. The hold time is a PITA but I recommend telephoning rather than sending letters. Much easier get a quick exchange of details. I did one by mail for which my initial respons...
by SpideyIndexer
Mon Oct 22, 2018 3:41 pm
Forum: Personal Investments
Topic: Traditional IRA Interfering with Backdoor Roth Converstion
Replies: 14
Views: 854

Re: Traditional IRA Interfering with Backdoor Roth Converstion

There's some effort involved, but she could start a small business as a sole proprietor, then open a SE401(k). Fidelity's do allow rollovers from tIRAs while Vanguard's do not.