Search found 181 matches

by kate1234
Mon Aug 03, 2020 9:47 am
Forum: Personal Finance (Not Investing)
Topic: 529 distribution graduate student
Replies: 6
Views: 421

Re: 529 distribution graduate student

Other considerations I can think of are to be sure to limit the contribution to $15000 per parent because of gift tax. Anything else I am missing?
by kate1234
Mon Aug 03, 2020 8:58 am
Forum: Personal Finance (Not Investing)
Topic: 529 distribution graduate student
Replies: 6
Views: 421

Re: 529 distribution graduate student

Thank you for leading me to that article at savingforcollege.com. The good news is that the rest of the article is advocating using this "loophole" to do exactly what I intend - to get a state tax deduction in the same year that I make both a contribution and a deduction. There are only four states ...
by kate1234
Mon Aug 03, 2020 8:12 am
Forum: Personal Finance (Not Investing)
Topic: 529 distribution graduate student
Replies: 6
Views: 421

529 distribution graduate student

529 is owned by the parents, son as beneficiary. Starting 2020 son is no longer a dependent on parent's income tax. Son's educational expenses, including room and board, for the next five years will exceed the amount currently in the 529 so parents are considering contributing extra so that we can t...
by kate1234
Thu Jul 16, 2020 6:31 am
Forum: Personal Investments
Topic: Vanguard brokerage vs old-style mutual fund account
Replies: 37
Views: 2991

Re: Vanguard brokerage vs old-style mutual fund account

Their email says in part (I missed this the first read through):

"We'll continue to support clients on this old platform until it's retired from use in 2022 or earlier"
by kate1234
Wed Jul 15, 2020 9:22 am
Forum: Personal Investments
Topic: Vanguard brokerage vs old-style mutual fund account
Replies: 37
Views: 2991

Vanguard brokerage vs old-style mutual fund account

Awhile ago I followed the posts here about Vanguard's desire to move all their customers from the old-style mutual fund accounts to the brokerage accounts. I evaluated it and decided that a switch was not better for me personally so I didn't. Today I got an email that pretty much implied I had no ch...
by kate1234
Sat Apr 04, 2020 8:40 am
Forum: Personal Finance (Not Investing)
Topic: CARES Act 2019 or 2020?
Replies: 17
Views: 1051

Re: CARES Act 2019 or 2020?

Income over $75,000/$150,000 both years but not a lot. Income higher in 2019. Also child in last year of dependency; 2019 could have gone either way. If not a dependent our taxes would be higher but he would get the $1200.
by kate1234
Sat Apr 04, 2020 8:14 am
Forum: Personal Finance (Not Investing)
Topic: CARES Act 2019 or 2020?
Replies: 17
Views: 1051

Re: CARES Act 2019 or 2020?

Do we have a date by which the 2019 return is filed for it to be used as the basis for the calculation?
by kate1234
Sat Apr 04, 2020 8:10 am
Forum: Personal Finance (Not Investing)
Topic: CARES Act 2019 or 2020?
Replies: 17
Views: 1051

Re: CARES Act 2019 or 2020?

bummer
by kate1234
Sat Apr 04, 2020 7:57 am
Forum: Personal Finance (Not Investing)
Topic: CARES Act 2019 or 2020?
Replies: 17
Views: 1051

CARES Act 2019 or 2020?

Just after the CARES Act was passed I read that, although checks will be distributed in the next month or two, the amount was just an estimate based on 2018 or 2019 taxes, whichever was the most recent filed, and that the final calculation would be based on one's 2020 income. Is that correct?
by kate1234
Fri Jan 17, 2020 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: State tax on stipend
Replies: 8
Views: 483

Re: State tax on stipend

Yeah, I knew about the change for 2020 but got hopeful for 2019 given that the income ended up on line 1.
by kate1234
Fri Jan 17, 2020 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: State tax on stipend
Replies: 8
Views: 483

Re: State tax on stipend

The tax form came and it was not as I expected.The university issued a 1098-T, listing a scholarship/grant of $25,000 and tuition of $15,000. So no 1099 and no W-2. I started on student's tax return today in TurboTax and found it put the $10,000 difference on line 1 under Wages, Salaries, Tips, Etc....
by kate1234
Sat Jan 04, 2020 8:27 am
Forum: Personal Finance (Not Investing)
Topic: State tax on stipend
Replies: 8
Views: 483

Re: State tax on stipend

Thanks. The university did not withhold and will give him a 1099; and it looks like his adjusted gross income will be higher than their threshold of $5500. Turbotax plus Virginia have already been purchased from Amazon for $50, looks like we need to purchase Arizona too for an additional $40.
by kate1234
Fri Jan 03, 2020 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: State tax on stipend
Replies: 8
Views: 483

State tax on stipend

We will still claim our son as a dependent on the 2019 taxes. He lived in our home state of Virginia for the first half of the year (college) then moved to Arizona in August to attend graduate school, where he has received a stipend, not large enough to be more than half of his 2019 expenses. His le...
by kate1234
Wed Dec 04, 2019 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees, which accounts do you consume first: Taxable, Deferred,...?
Replies: 37
Views: 3085

Re: Retirees, which accounts do you consume first: Taxable, Deferred,...?

"The rule of thumb is taxable first, but there are definitely exceptions." White Coat Investor

Isn't a major exception whether you will leave assets to your heirs, in which case give them the benefit of the lowered cost basis of a taxable account upon inheritance.
by kate1234
Wed Nov 06, 2019 1:38 pm
Forum: Personal Investments
Topic: choosing between VTSAX and VTI
Replies: 17
Views: 2022

Re: choosing between VTSAX and VTI

Thanks for the replies everybody. I made my choice, right or wrong, and executed the trade. Done!
by kate1234
Wed Nov 06, 2019 11:38 am
Forum: Personal Investments
Topic: choosing between VTSAX and VTI
Replies: 17
Views: 2022

Re: choosing between VTSAX and VTI

Smiley face.
by kate1234
Wed Nov 06, 2019 11:06 am
Forum: Personal Investments
Topic: choosing between VTSAX and VTI
Replies: 17
Views: 2022

Re: choosing between VTSAX and VTI

It's an RMD. Waiting isn't allowed.
by kate1234
Wed Nov 06, 2019 10:49 am
Forum: Personal Investments
Topic: choosing between VTSAX and VTI
Replies: 17
Views: 2022

Re: choosing between VTSAX and VTI

Just got off the phone with Vanguard where they explained the bid/ask deal (which is new to me) and I realized that one of my most prized goals is simplicity. A mixture of mutual funds and ETFs is not as simple as all of one or the other. So the suggestion to just throw the $2000 in with the retirem...
by kate1234
Wed Nov 06, 2019 8:32 am
Forum: Personal Investments
Topic: choosing between VTSAX and VTI
Replies: 17
Views: 2022

Re: choosing between VTSAX and VTI

Thank you. While I am a mutual fund gal all the way, in this case I only have $2000 to spend so can't meet the VTSAX minimum purchase. So it sounds like nothing bad will happen if I choose VTI. It is a brokerage account that currently holds one of the target retirement funds.
by kate1234
Wed Nov 06, 2019 8:14 am
Forum: Personal Investments
Topic: choosing between VTSAX and VTI
Replies: 17
Views: 2022

choosing between VTSAX and VTI

When I compare VTSAX and VTI the only differences I see are that VTSAX has a $3000 minimum purchase (whereas VTI has none) and has an expense ratio of .04% (whereas VTI is .03). So is there any reason I wouldn't choose VTI? The accounts in question are both taxable and tax-advantaged, and both tradi...
by kate1234
Thu Aug 01, 2019 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: How do you decide what car to buy for your kid
Replies: 91
Views: 4853

Re: How do you decide what car to buy for your kid

Consumer Reports has a couple of articles on buying a car for teens and the criteria they recommend, like having it be zippy enough to get them out of a bad situation, but not so zippy they are tempted to hotrod around town. They also suggest that you think about doing the opposite of what has been ...
by kate1234
Thu Aug 01, 2019 7:50 am
Forum: Personal Investments
Topic: Tax-efficient placement of international stock fund
Replies: 8
Views: 800

Tax-efficient placement of international stock fund

The Wiki article on Tax-Efficient Fund Placement recommends that international stocks be placed in a taxable account so that one can take advantage of the foreign tax credit. I don't plan to do that because the amount of tax savings does not compensate for the increased complexity of the tax return....
by kate1234
Fri Jul 05, 2019 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Adult child - cars & residency
Replies: 14
Views: 1306

Re: Adult child - cars & residency

Each university will have their own definition of residency. In one case, a co-worker was attempting to establish in state residency for his daughter by claiming that his brother was her guardian. In that case, he finally found for that university, that residency had to have been established by the...
by kate1234
Fri Jul 05, 2019 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Adult child - cars & residency
Replies: 14
Views: 1306

Adult child - cars & residency

Our son is 22 and heading to graduate school. At the moment he is fully a dependent and is on our medical insurance and car insurance, and we own his car. We will continue to pay for the first two years of graduate school, then the school will start to pay him, so by the time he ages out of both IRS...
by kate1234
Fri Dec 28, 2018 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Do Roth distributions affect MAGI?
Replies: 16
Views: 1592

Re: Do Roth distributions affect MAGI?

There are many definitions of MAGI, it depends on what definition is being used by the agency that you are dealing with. For instance, Federally tax free municipal bond interest is included in MAGI for purposes of IRMAA. Ralph In this case I am after the Lifetime Learning Credit, one of the educati...
by kate1234
Fri Dec 28, 2018 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Do Roth distributions affect MAGI?
Replies: 16
Views: 1592

Re: Do Roth distributions affect MAGI?

Thanks, that's just what I thought.
by kate1234
Fri Dec 28, 2018 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Do Roth distributions affect MAGI?
Replies: 16
Views: 1592

Do Roth distributions affect MAGI?

The answer to my question seems obvious to me but I have already been wrong today on other matters that seemed obvious to me so I thought I'd better confirm. Would Roth distributions affect my MAGI? I'm trying to keep the MAGI low enough to qualify for a certain tax credit.
by kate1234
Fri Dec 28, 2018 11:11 am
Forum: Personal Finance (Not Investing)
Topic: QCD, RMD, and Roth conversions
Replies: 36
Views: 1440

Re: QCD, RMD, and Roth conversions

Thanks everybody, this has been helpful and without this advice I would have done the wrong thing. So instead I'll do all 2019 withdrawals for living expenses and/or Roth conversions from an IRA that is not yet subject to RMDs. I'll leave the IRA that is subject to RMDs alone except to take QCDs an...
by kate1234
Fri Dec 28, 2018 11:01 am
Forum: Personal Finance (Not Investing)
Topic: QCD, RMD, and Roth conversions
Replies: 36
Views: 1440

Re: QCD, RMD, and Roth conversions

Thanks everybody, this has been helpful and without this advice I would have done the wrong thing. So instead I'll do all 2019 withdrawals for living expenses and/or Roth conversions from an IRA that is not yet subject to RMDs. I'll leave the IRA that is subject to RMDs alone except to take QCDs and...
by kate1234
Fri Dec 28, 2018 10:11 am
Forum: Personal Finance (Not Investing)
Topic: QCD, RMD, and Roth conversions
Replies: 36
Views: 1440

Re: QCD, RMD, and Roth conversions

Do companies like Vanguard have safeguards in place to prevent hapless people like me from doing it wrong? So if next Wednesday I contacted Vanguard with the direction to convert some portion of the tIRA to Roth, their computer would kick it out saying, "Nope, take your RMD first!"
by kate1234
Fri Dec 28, 2018 9:34 am
Forum: Personal Finance (Not Investing)
Topic: QCD, RMD, and Roth conversions
Replies: 36
Views: 1440

Re: QCD, RMD, and Roth conversions

Can you please explain further about the effect of the Roth conversion? My reasoning was that since, even if you do a Roth conversion you must still take your RMD, then the full amount of the RMD is still available for a QCD.

And yes, I do need to spend the RMD.
by kate1234
Fri Dec 28, 2018 8:57 am
Forum: Personal Finance (Not Investing)
Topic: QCD, RMD, and Roth conversions
Replies: 36
Views: 1440

QCD, RMD, and Roth conversions

I got caught out this year by failing to note that one must make a qualified charitable distribution before one had withdrawn (and spent) the full amount of the RMD. Lesson learned. For next year, how does a Roth conversion affect this? I suspect not at all. Here are some sample numbers: Assume the ...
by kate1234
Mon Dec 24, 2018 1:29 pm
Forum: Investing - Theory, News & General
Topic: Picking through tax loss harvesting
Replies: 2
Views: 272

Picking through tax loss harvesting

I don't have any capital gains in 2018 and don't expect to have any in the near future. I do have some carryover losses from a previous year's TLH. I have just swapped out all my short-term losses. Is there any reason I shouldn't also swap out my long-term losses?
by kate1234
Sat Dec 22, 2018 7:57 am
Forum: Personal Consumer Issues
Topic: Electric scooter for 10y old?
Replies: 17
Views: 889

Re: Electric scooter for 10y old?

In my state, Virginia, electric scooter riders must be at least 16 and must carry a government-issued ID (doesn't have to be a driver's license). You might be able to find information for your state at dmv.org
by kate1234
Sat Jun 23, 2018 4:44 pm
Forum: Personal Investments
Topic: Timing! [When to withdraw from a traditional IRA]
Replies: 8
Views: 1186

Re: Timing!

Thanks David and others. I did not know about the bond dividend (and we are indeed talking about VBTLX) accruing daily and not dropping in NAV when it pays the dividends. That was the core of my question.

Makes it much easier for those of us who are actually spending those hard-earned IRAs.
by kate1234
Fri Jun 22, 2018 10:58 am
Forum: Personal Investments
Topic: Timing! [When to withdraw from a traditional IRA]
Replies: 8
Views: 1186

Re: Timing!

Can you please elaborate as to why the fund being in a traditional IRA made it not matter?
by kate1234
Fri Jun 22, 2018 10:34 am
Forum: Personal Investments
Topic: Timing! [When to withdraw from a traditional IRA]
Replies: 8
Views: 1186

Timing! [When to withdraw from a traditional IRA]

Timing! Everybody's favorite word. Assume a traditional IRA (but I don't think it makes a difference here) invested entirely in Vanguard Total Bond Market, which throws off dividends on about the last day of every month. And assume I want to sell/withdraw/spend on frivolous things a flat dollar amou...
by kate1234
Sun Jun 10, 2018 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: How much rent can one afford?
Replies: 4
Views: 713

How much rent can one afford?

My friend is 65 and is divorcing and selling the house after a long marriage. She has owned every house she has lived in for many decades but this new chapter of life requires more temporary living arrangements until she can get her bearings and start to craft whatever is next. She just got a new jo...
by kate1234
Sat Feb 24, 2018 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 841

Re: Social Security question under old rules

Thanks. This discussion has given several quite useful points I can pass on to my friend. Restricted app when she turns 66. And don't worry about the timing as to whether she is still married. And in five years, if they are still married and if I have any contact with him (and the laws haven't chang...
by kate1234
Sat Feb 24, 2018 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 841

Re: Social Security question under old rules

Actually, whether she would wait until age 70 to claim on her own record isn't in question. She clearly intends to. But what is new very helpful information here is that even under the new rules, she can get spousal from age 66 to 70 by filing a restricted application. I do not know what either of t...
by kate1234
Sat Feb 24, 2018 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 841

Re: Social Security question under old rules

Okay so let me be sure I understand: he would continue to collect under his own retirement record for the time being. I know that she wants to wait until age 70 and I believe that while she is waiting, he cannot collect spousal (because of the new rules). But in theory, after she claims at age 70, h...
by kate1234
Sat Feb 24, 2018 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 841

Re: Social Security question under old rules

Let me restate the question: He was born in 1950, she was born in 1953. He has filed for retirement benefits under his own record. Can he switch to spousal benefits after she reaches full retirement age?
by kate1234
Sat Feb 24, 2018 7:55 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 841

Re: Social Security question under old rules

You are correct; I was mistaken; and that changes the question - but only by a year, right?
by kate1234
Sat Feb 24, 2018 7:42 am
Forum: Personal Finance (Not Investing)
Topic: Social Security question under old rules
Replies: 12
Views: 841

Social Security question under old rules

H and W were both over age 62 when the rules about file and suspend changed, so the old rules will apply to them. H waited to age 68 to claim retirement benefits, and has claimed under his own record, about three months ago. He is still age 68. W has just reached 65 and FRA and has not yet claimed a...
by kate1234
Tue Dec 19, 2017 9:58 am
Forum: Personal Finance (Not Investing)
Topic: 529 plan withdrawal question.
Replies: 10
Views: 1280

Re: 529 plan withdrawal question.

Also, since our income is low enough to qualify for the American Opportunity Credit Act, I always reimburse $4000 less from the 529 than I spent on tuition and other qualified expenses.
by kate1234
Tue Dec 19, 2017 8:01 am
Forum: Personal Finance (Not Investing)
Topic: 529 plan withdrawal question.
Replies: 10
Views: 1280

Re: 529 plan withdrawal question.

B. Food and housing are limited by what is listed in the cost of attendance, but other expenses are what you actually incurred. To calculate the limit for 2017 I take half the limit for the 2016-17 school year, plus half the limit for 2017-18. And of course if you spent less than those limits, you w...
by kate1234
Fri Dec 08, 2017 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 4134

Re: Trying to understand Roth five-year rule

Alan S. wrote: Fri Dec 08, 2017 12:50 pm However, you better be aware of the pending tax legislation as soon as it passes because it will probably eliminate your "fine tuning" opportunity.
Thanks, I had missed this.
by kate1234
Fri Dec 08, 2017 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Roth five-year rule
Replies: 25
Views: 4134

Re: Trying to understand Roth five-year rule

Thanks, that helps and is a relief (since I recently made a withdrawal from the Roth then doubted myself). In spite of your warning though, the reason we have accumulated these tIRAs and rIRAs is to spend them! My understanding is the way one chooses whether to spend first from tIRA or rIRA is based...
by kate1234
Fri Dec 08, 2017 11:41 am
Forum: Personal Investments
Topic: Help with Inherited IRA
Replies: 14
Views: 1620

Re: Help with Inherited IRA

We transferred ours over to Vanguard so that nearly all of our accounts are in the same place. Helps with simplicity, which is one of our goals.