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SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

Sounds like the Anthem Innovative Plan F.

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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.

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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 ...

SpideyIndexer

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 ...

SpideyIndexer

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...

SpideyIndexer

+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...

SpideyIndexer

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 ...

SpideyIndexer

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...

SpideyIndexer

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.

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

Actually they may have LOWERED their rate recently from 2.9% to 2.85%. Sorry for the confusion.

SpideyIndexer

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...

SpideyIndexer

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.

SpideyIndexer

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...

SpideyIndexer

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?

SpideyIndexer

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!

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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 ...

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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.

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

I would assume at age 67 and older you stay at 100% TDF, according to this suggestion.

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

Oh, I expected it to be the SCV and long treasuries combination which backtests extremely well.

SpideyIndexer

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 ...

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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...

SpideyIndexer

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.

SpideyIndexer

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...

SpideyIndexer

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.

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