Search found 11629 matches

by DSInvestor
Mon Apr 05, 2021 10:05 pm
Forum: Personal Investments
Topic: Should I use a Roth 401k instead of a regular 401k?
Replies: 23
Views: 2516

Re: Should I use a Roth 401k instead of a regular 401k?

Are you single or married filing jointly? If single, your high income and coverage by employer sponsored retirement plan will make you ineligible to take the Traditional IRA deduction. See IRS page on IRA deduction limits: https://www.irs.gov/retirement-plans/ira-deduction-limits Full Roth IRA contributions are permitted if MAGI for Roth IRA purposes is under 125K for a single filer. I would keep maxing out Traditional 401k contributions and HSA contributions which reduce your AGI and MAGI. If you have made Traditional IRA contributions for 2020 and 2021 tax year, you have time to recharacterize those to 2020 and 2021 Roth IRA contributions. If you cannot deduct your Traditional IRA contributions, it is better to switch to Roth IRA contribu...
by DSInvestor
Mon Apr 05, 2021 12:57 pm
Forum: Personal Investments
Topic: Are converted Roth IRA Contributions Penalty Free Withdrawal?
Replies: 36
Views: 3020

Re: Are converted Roth IRA Contributions Penalty Free Withdrawal?

Here is a link to fairmark page on Distributions after a Roth IRA conversion:
https://fairmark.com/retirement/roth-ac ... onversion/

Link to Fairmark's Roth page where you will find lots of information on Roth contributions, conversions, recharactsrizations, distributions and Designated Roth accounts:
https://fairmark.com/retirement/roth-accounts/
by DSInvestor
Wed Mar 31, 2021 12:09 pm
Forum: Investing - Theory, News & General
Topic: Taxes on Traditional IRA Distributions
Replies: 15
Views: 1394

Re: Taxes on Traditional IRA Distributions

Traditional IRA are taxable and add to your Adjusted Gross Income (AGI) which also increases your Taxable Income (Adjusted Gross Income minus deductions).

The tax rate on the IRA withdrawal can be determined by finding the total tax without the IRA withdrawal and then with IRA withdrawal.

The tax rate on the withdrawal will the that difference in tax / IRA withdrawal amount.
by DSInvestor
Mon Mar 29, 2021 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Taxact (Online version): Did I mess up my backdoor IRA? Wrong 8606.
Replies: 18
Views: 997

Re: Did I mess up my backdoor IRA? Wrong 8606.

Thanks for the reply retiredjg. I opened a brand new tIRA account and made a new $6000 non-deductible contribution in 2020. My Line 4b on 1040 is blank. Did you tell your tax software that you made a contribution to Traditional IRA for 2020 tax year? If yes, the tax software would have inspected your tax situation to see whether you are eligible for the TIRA deduction. If eligible for the Trad IRA deduction, this appears in form 1040 schedule 1 line 19 for IRA deduction. In this case, there is no IRA basis and there is nothing to track in Part I of 8606. IRS Form 1040 schedule 1: https://www.irs.gov/pub/irs-pdf/f1040s1.pdf If not eligible for the Trad IRA deduction, there would be IRA basis (non-deductible contribution) and the tax softwar...
by DSInvestor
Fri Mar 26, 2021 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Recharacterize Roth contribution to get bigger education credit?
Replies: 4
Views: 385

Re: Recharacterize Roth contribution to get bigger education credit?

Do you have an HSA eligible health insurance plan? If yes, HSA contribution would reduce your AGI. The downside is that you need to have extra cash available to make the HSA contribution.

Assuming she is eligible to take the Trad IRA deduction, recharacterization of the Roth IRA contribution to Traditional IRA contribution requires no extra cash.

IRS page on IRA deduction limits:
https://www.irs.gov/retirement-plans/ir ... ion-limits
by DSInvestor
Thu Mar 25, 2021 11:39 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 11151
Views: 2085768

Re: What Movie Have You Recently Watched?

ruralavalon wrote: Thu Mar 18, 2021 8:14 pm Waking Ned Devine, on Amazon Prime.

We re-watched this for St. Patrick's day. In a small Irish coastal village a man dies in shock when he wins the lottery. The rest of the village schemes to collect on his winning ticket. I recommend this movie.

trailer
This is a great movie. I second this recommendation.
by DSInvestor
Wed Mar 24, 2021 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: help understanding Pro Rata in ROTH conversion
Replies: 9
Views: 537

Re: help understanding Pro Rata in ROTH conversion

The IRA contribution was made in 2021. My spouse was covered by an employer plan in 2020 and will still be covered in 2021. IRA contributions made in 2021 early in the year can be for 2021 or 2020 tax year. So was the contribution for the 2020 tax year or 2021 tax year? This is an important point to make because it affects which tax returns need to include the IRA contribution and associated form 8606. Contributions made in 2021 for 2020 tax year count as 2020 IRA contribution and need to be reported on the 2020 tax return. If those contributions are deemed not eligible for the 2020 IRA deduction (high income and coverage by employer plan), then the tax software should add form 8606 to track the non-deductible contributions (IRA basis) to ...
by DSInvestor
Wed Mar 24, 2021 10:48 am
Forum: Personal Finance (Not Investing)
Topic: help understanding Pro Rata in ROTH conversion
Replies: 9
Views: 537

Re: help understanding Pro Rata in ROTH conversion

Thanks, I believe I understand now. All the IRAs are treated as one big pool. I contributed to the traditional IRA this year, and it would be considered non-deductible. So if that's the case, regardless of whether I convert it to a ROTH account, I assume I would still need to track it with a 8606 form, is that correct? Please share the tax year that the IRA contribution applies for? Contributions made in early 2021 can be for tax year 2020 or 2021. If 2020 tax year, were you covered by an employer plan for 2020? If yes, and you had high income, then your 2020 Traditional IRA contribution would be non-deductible. Form 8606 would be required for your 2020 tax return to track that IRA basis. The basis from 2020 tax year carries forward to the...
by DSInvestor
Wed Mar 24, 2021 10:11 am
Forum: Personal Finance (Not Investing)
Topic: help understanding Pro Rata in ROTH conversion
Replies: 9
Views: 537

Re: help understanding Pro Rata in ROTH conversion

So from what you are saying it sounds like I will actually get taxed twice on that $7000, or at least $6300. I am retired, so I don't have an option for a workplace plan. Now I think I just have to let that $7000 sit all by itself in the traditional IRA. What tax year was your Traditional IRA contribution for? Were you covered by an employer plan for that year? If you had high income and were covered by an employer plan, your Traditional IRA would be non-deductible (IRA basis). If you were not covered by employer plan, then your Traditional IRA may have been deductible which means no IRA basis. IRA deduction rules are tricky. If you have IRA basis, you are not double taxed on the conversion. This is because that IRA basis (non-deductible c...
by DSInvestor
Wed Mar 24, 2021 9:54 am
Forum: Personal Finance (Not Investing)
Topic: help understanding Pro Rata in ROTH conversion
Replies: 9
Views: 537

Re: help understanding Pro Rata in ROTH conversion

You are allowed to the Roth conversion. However, IRS considers your Traditional IRA, Rollover IRA, SEP-IRA, SIMPLE-IRA assets as one big Traditional iRA. So let's say your Traditional IRA has $7000 from your non-deductible contribution and your Rollover IRA has $63,000. IRS considers you to have one big $70,000 IRA with $7000 of IRA basis (non-deductible contributions). When you convert $7000 to Roth IRA, that is a partial conversion of 10% of your IRA so IRS will prorate your basis. The non-taxable amount of the conversion will be $700 and the taxable amount will be $6300. The remaining 63000 in your Rollover iRA will have 6300 of IRA basis which carries forward to next tax year. See IRS form 8606 for more details: https://www.irs.gov/pub/...
by DSInvestor
Wed Mar 24, 2021 12:46 am
Forum: Personal Finance (Not Investing)
Topic: (another) traditional vs. roth 401k question
Replies: 3
Views: 415

Re: (another) traditional vs. roth 401k question

I like Traditional 401k contributions, Roth IRA contributions (using backdoor if necessary) and contributing to Taxable accounts. While Traditional 401k contributions may not bring you down the lower tax bracket, ever dollar contributed takes a dollar off the top of your income stack which would have been taxed at 32%. That's $12.48K in fed tax savings on 39K of Traditional 401k contributions. You'd lose that tax break if you contribute to Roth 401k. Why pay 32% now for Roth 401k if you may be able to convert to Roth in retirement and pay a much lower rate? When you retire at age 55, you can live off the taxable account which would be very tax efficient and should leave you plenty of room in low tax brackets for Roth conversions. The tax ra...
by DSInvestor
Fri Mar 19, 2021 10:58 am
Forum: Investing - Theory, News & General
Topic: Early Retirement and Absorbing the 10% Withdrawal Penalty
Replies: 46
Views: 5656

Re: Early Retirement and Absorbing the 10% Withdrawal Penalty

[ The general wisdom for access to funds before 59.5 is as follows: 1. Plan for a Roth conversion ladder and execute that until age 50; or 2. Begin taking 72t distributions. You forgot about taxable accounts. Those who retire before 59.5 with a mix of Traditional, Roth and Taxable have the option to live off the taxable account and avoid 72t distributions. Remember that Long Term Capital Gains (LTCG) and Qualified Dividend Income (QDI) receive preferential tax treatment and can be taxed at 0% Fed. If you need 50K from a Traditional 401k or Traditional IRA, the 50K is taxable and adds 50K to your AGI and Taxable Income. If you need 50K from a taxable account, that will likely not result in a 50K increase in your AGI. The capital gain is the...
by DSInvestor
Fri Mar 12, 2021 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: how much is being able to make a Roth contribution worth ?
Replies: 12
Views: 1595

Re: how much is being able to make a Roth contribution worth ?

Are you eligible for COVID relief payment when filing Married Filing Jointly (MFJ)? Would you both be eligible for the COVID relief payment if filing separately (MFS)? If your spouse's income is such that he/she is not eligible under MFS, it may be better to file MFJ and both qualify for the payment. That should more than make up for the $1000 difference.
by DSInvestor
Fri Mar 12, 2021 11:56 am
Forum: Personal Finance (Not Investing)
Topic: TAXES question, Roth contributions increase Federal Tax owed
Replies: 21
Views: 1809

Re: TAXES question, Roth contributions increase Federal Tax owed

Traditional IRA contributions can be pretax in which case they reduce the Adjusted Gross Income (AGI) and Taxable Income. If your mom is eligible to deduct the Traditional IRA contributions, then is why the her Fed and state taxes are reduced with Traditional IRA contributions. IRS page on IRA deduction limits: https://www.irs.gov/retirement-plans/ira-deduction-limits Roth IRA contributions are after-tax and do not reduce AGI and Taxable income. Compare the AGI and Taxable Income for each scenario and I would bet that the Roth IRA contribution has AGI and Taxable Income that is higher, resulting in a higher tax liability. It looks like your mom is receiving social security benefits. The higher AGI associated with Roth IRA contributions may ...
by DSInvestor
Tue Mar 09, 2021 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Qualifying for ACA subsidies in 2022 -- does my plan make sense?
Replies: 48
Views: 3599

Re: Qualifying for ACA subsidies in 2022 -- does my plan make sense?

If you have any tax inefficient holdings that may throw off large amount of capital gains distributions, try to move them into tax advantaged accounts. You do not want a large capital gain distribution from a fund that you didn't even sell to cause your AGI to spike and potentially lose a very valuable ACA Premium Tax Credit (PTC). If you have unrealized capital losses in your taxable holdings now and also hold tax inefficient stock funds with unrealized gains, you can use the losses to offset the gains to move the tax inefficient holdings out of taxable and into Tax Advantaged accounts. If you are planning to do Roth conversions every year while you have low income, make sure you run your numbers carefully with tax software to make sure yo...
by DSInvestor
Fri Mar 05, 2021 12:25 pm
Forum: Personal Consumer Issues
Topic: How to make strong coffee equivalent to Starbucks for cheaper?
Replies: 149
Views: 20563

Re: How to make strong coffee equivalent to Starbucks for cheaper?

Whole bean: Lavazza Super Crema - Currently about $12 for 2.2lb bag at Amazon

Brew: Aeropress - I bought this for camping and loved it so much that I use it every day. $30.

Grinder: See this video from America's Test Kitchen
https://www.youtube.com/watch?v=O7LAzSKgeoQ

Scale to weigh your coffee: See Wirecutter reviews of scales:
https://www.nytimes.com/wirecutter/revi ... hen-scale/

The 2.2lb bag is 1kg or 1000 grams. I use around 15 grams of coffee per cup, so that works out to about 66 cups per 1kg bag.
by DSInvestor
Thu Mar 04, 2021 5:19 pm
Forum: Personal Consumer Issues
Topic: Who's responsible for lost shipment?
Replies: 32
Views: 2401

Re: Who's responsible for lost shipment?

If the vendor values customer service, they should offer free replacement rather than make you file a claim with the shipping service. If item is no longer available, then a refund should be offered. If the vendor does not do this, you may want to take your business elsewhere.
by DSInvestor
Tue Mar 02, 2021 11:53 pm
Forum: Personal Finance (Not Investing)
Topic: How to fix Over Contribution to Traditional IRA
Replies: 4
Views: 362

Re: How to fix Over Contribution to Traditional IRA

Another option would be to recharacterize part of that 2020 Traditional IRA contribution to a 2020 Roth IRA contribution. If you contributed $4500 to Traditional IRA and find that you can only deduct $4400, you could recharacterize $100 of that 2020 Traditional IRA contribution to a Roth IRA contribution. This would avoid the issue of introducing IRA basis to the Traditional IRA. See fairmark.com page on Recharacterizations: https://fairmark.com/retirement/roth-accounts/recharacterizations/recharacterization-overview/ You can call your IRA custodian and ask for a recharacterization. The IRA custodian will figure out the growth associated with the $100 contribution and then move the contribution + growth/loss into the Roth IRA. It will be li...
by DSInvestor
Sun Feb 28, 2021 9:27 pm
Forum: Personal Investments
Topic: Backdoor Roth with a tIRA balance vs Taxable
Replies: 6
Views: 526

Re: Backdoor Roth with a tIRA balance vs Taxable

Option 4 zero out the TIRA, SEP-IRA, SIMPLE-IRA, Rollover IRA by transferring those assets into workplace plan. Then do backdoor into Roth IRA.

Having a 401k plan with low costs is critical if IRA assets are large.
by DSInvestor
Sun Feb 28, 2021 5:37 pm
Forum: Personal Investments
Topic: Any downsides to Mega Backdoor even for Roth eligible?
Replies: 33
Views: 2694

Re: Any downsides to Mega Backdoor even for Roth eligible?

Max out the Traditional 401k and Roth IRA, then decide on whether you want to use mega backdoor into Roth IRA.

Do you have any assets in Traditional IRA, SEP-IRA, SIMPLE-IRA or Rollover IRA? If not, you'd be a good candidate for the backdoor into Roth IRA if your income is such that you are not eligible for direct contribution to Roth IRA.
by DSInvestor
Sat Feb 27, 2021 11:30 am
Forum: Investing - Theory, News & General
Topic: Should I realise Capital Gains while in a lower tax bracket
Replies: 36
Views: 4497

Re: Should I realise Capital Gains while in a lower tax bracket

jeffyscott wrote: Fri Feb 26, 2021 3:13 pm
DSInvestor wrote: Wed Feb 24, 2021 1:14 am Do you live in a state with state income taxes? If so, your state will tax the capital gain as ordinary income even if Fed taxes it at 0%.
Doesn't affect the OP, but...
While most states tax income from investments and income from work at the same rate, nine states — Arizona, Arkansas, Hawaii, Montana, New Mexico, North Dakota, South Carolina, Vermont, and Wisconsin — tax all long-term capital gains less than ordinary income.
https://www.cbpp.org/research/state-bud ... ital-gains
Thanks for sharing that.
by DSInvestor
Thu Feb 25, 2021 11:50 pm
Forum: Personal Consumer Issues
Topic: Buying a high property tax bill along with the condo
Replies: 23
Views: 3229

Re: Buying a high property tax bill along with the condo

When you own a condo, make sure you take a good look at the finances of the condo association. If there are not sufficient reserves, you may be hit for special assessments above and beyond your standard condo dues.
by DSInvestor
Thu Feb 25, 2021 12:00 pm
Forum: Personal Investments
Topic: Should I convert my 3-fund into a 2-fund?
Replies: 14
Views: 1442

Re: Should I convert my 3-fund into a 2-fund?

I would not make such a change unless there was no tax cost. Take a look at your cost basis and compare against the current value. The difference is the capital gain. Shares that have been held for longer than 1 year will be long term shares and receive preferential tax rates for Fed Tax. Note that your state will likely tax that at state marginal rates. Short term shares, those held for 1 year or less, are taxed like ordinary income at marginal tax rates by Fed and state. For such a move, you would be selling all shares. Cost basis methods will not matter at all if selling all shares. I believe the expense ratio for Total World Admiral VTWAX er=0.10% is higher than the blended expense ratio of Total Stock Market Admiral VTSAX er=0.04% and ...
by DSInvestor
Wed Feb 24, 2021 1:14 am
Forum: Investing - Theory, News & General
Topic: Should I realise Capital Gains while in a lower tax bracket
Replies: 36
Views: 4497

Re: Should I realise Capital Gains while in a lower tax bracket

Do you live in a state with state income taxes? If so, your state may tax the capital gain as ordinary income even if Fed taxes it at 0%. Keep in mind that the long term capital gain increases AGI but it falls in a category that is taxed at 0% for Fed tax. The higher AGI with the capital gain could cause you to lose out on certain tax credits. Some tax credits like the ACA Premium Tax Credit could be worth a lot of money. Run your numbers carefully.
by DSInvestor
Tue Feb 23, 2021 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question: Traditional IRA deduction condition "Covered by a Plan at Work"
Replies: 6
Views: 513

Re: Tax Question: Traditional IRA deduction condition "Covered by a Plan at Work"

There are not a lot of options after calendar is over to reduce your AGI. If you have an HSA eligible High Deductible Health Insurance plan and have not yet maxed out the 2020 HSA contribution, consider maxing that out. The deadline for 2020 HSA contributions is April 15, 2021.

If you are not able to get the income down to allow full Traditional IRA contribution for 2020 tax year, I agree with the suggestions to recharacterize some or all of the 2020 Traditional IRA contribution to a 2020 Roth IRA contribution.
by DSInvestor
Sun Feb 21, 2021 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Roll over SEP-IRA to roth ira?
Replies: 2
Views: 236

Re: Roll over SEP-IRA to roth ira?

Roth IRA conversion taxation works on the calendar year of the conversion. If the conversion happened in calendar 2021, it will be handled by the 2021 tax return.
by DSInvestor
Sat Feb 13, 2021 8:02 pm
Forum: Personal Investments
Topic: Backdoor Roth - How long do you need to be unemployed?
Replies: 4
Views: 656

Re: Backdoor Roth - How long do you need to be unemployed?

The backdoor into Roth IRA is a trick for those with income that is too high to allow for direct contributions to Roth IRA. This trick combines two steps 1) Contribution to Traditional IRA and 2) Roth conversion.

I think you may be asking for Roth conversion. The best way to minimize tax consequences for Roth conversion is to convert in a year with low income. If 2021 will be a low income year, then this may be a good year to do Roth conversions.
by DSInvestor
Tue Feb 09, 2021 4:50 pm
Forum: Personal Investments
Topic: Is Backdoor Roth IRA still possible?
Replies: 6
Views: 614

Re: Is Backdoor Roth IRA still possible?

If you are covered by an employer sponsored retirement plan and have high income, your Traditional IRA contributions may not be eligible for the IRA deduction - they will be non-deductible (IRA basis). When there is IRA basis, any partial conversion of the IRA will require proration of the IRA basis. If you have 6K Traditional IRA contribution and 94K Rollover IRA, IRS considers you to have a $100K Trad IRA. If you convert 6K to Roth, that is a partial conversion 6% of the IRA and form 8606 will allow you to use 6% of the IRA basis on the partial conversion. If you did not have any Rollover IRA assets, your 6K Trad IRA contribution will be 6K IRA basis. You convert 6K (full conversion), using 100% of the 6K basis resulting in non-taxable am...
by DSInvestor
Mon Feb 08, 2021 9:59 am
Forum: Personal Consumer Issues
Topic: In price negotiations now for Subaru Crosstrek (AKA Crosstrek vs CX-30)
Replies: 46
Views: 3576

Re: Subaru Crosstrek vs Mazda CX-30

If CVT is a concern, Crosstrek is available with manual transmission.
by DSInvestor
Sat Feb 06, 2021 3:32 pm
Forum: Personal Investments
Topic: Excess IRA contribution problem (Backdoor Roth)
Replies: 3
Views: 313

Re: Excess IRA contribution problem (Backdoor Roth)

You made $3000 Roth IRA contribution that has grown to $3021. When you recharacterize the $3000 Roth IRA contribution to Traditional IRA contribution, it will be like you had contributed to Traditional IRA contribution all along. That $21 in growth is treated like it happened in the Traditional IRA. You do not have an excess contribution.

Your total contribution to Traditional IRA is $3000 + $3000 = $6000.
Assuming all $6000 is non-deductible, you'd have $6000 IRA basis.
You convert $6021.
If you have no other TIRA, SEP-IRA, SIMPLE-IRA, Rollover IRA assets, form 8606 will calculate the non-taxable amount = $6000 and the taxable amount = $21.
by DSInvestor
Wed Feb 03, 2021 1:29 pm
Forum: Personal Consumer Issues
Topic: Camping Stove - Upgrade?
Replies: 32
Views: 2561

Re: Camping Stove - Upgrade?

For stoves that take the 1lb green coleman propane canisters, I like to use a propane adapter hose. The thread on one end of the hose matches that on the green canisters and the connection on the other end fits standard propane tanks that are refillable. This hose allows me to connect a standard propane tank to the stove. I have a 20lb tank for my BBQ and a 5lb tank for camping. This means less green canisters going into landfills. Makes the camp stove work as an emergency stove during power outage - just connect our BBQ propane tank to the camp stove.
by DSInvestor
Wed Jan 27, 2021 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: DELETE
Replies: 28
Views: 3078

Re: Tax software: married or separate

Keep in mind that MFS status makes you ineligible for certain things. If you are looking to get an ACA Premium Tax Credit (PTC) for health insurance purchased on an exchange, tax status of MFS will make you ineligible for the PTC. This could be worth many times more than the stimulus checks.

IRS page on eligibility for PTC:
https://www.irs.gov/affordable-care-act ... tax-credit
by DSInvestor
Wed Jan 27, 2021 1:16 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth - 1099R
Replies: 5
Views: 800

Re: Backdoor Roth - 1099R

Remember that the backdoor into Roth IRA combines two steps 1) Contribution to Traditional IRA and 2) Roth conversion.

The 1099R covers the Roth conversion step. Make sure to tell your tax software that you made Traditional IRA contribution as well. If your Traditional IRA contribution was non-deductible, the non-deductible amount (IRA basis) is tracked on form 8606 and will help reduce the taxable amount of the Roth conversion.
by DSInvestor
Sat Jan 23, 2021 7:02 pm
Forum: Personal Investments
Topic: Back Door Roth Conversion 2020 & Tax Filing
Replies: 20
Views: 1780

Re: Back Door Roth Conversion 2020 & Tax Filing

The Backdoor into Roth IRA combines two steps: 1) Contribution to Traditional IRA 2) Roth Conversion. You need to enter both into the tax software. When you enter the Traditional IRA contribution, the tax software will examine the tax situation and determine whether the Traditional IRA contribution is deductible or non-deductible. If deductible, form 8606 will be added to track the non-deductible contribution (IRA basis). If deductible, the Traditional IRA contribution will show up in the IRA deduction line of the 1040 form and reduce your AGI. The Roth conversion must also be entered and your IRA custodian's 1099-R is for this step. If you have IRA basis, the basis is consumed to reduce the taxable amount of the conversion. If you do not h...
by DSInvestor
Sat Jan 23, 2021 12:41 pm
Forum: Personal Consumer Issues
Topic: Any recs for HIGH quality webcams? Has to be better then a Macbook Pro webcam
Replies: 15
Views: 1593

Re: Any recs for HIGH quality webcams? Has to be better then a Macbook Pro webcam

Wirecutter page on Webcams updated OCT 12, 2020:
https://www.nytimes.com/wirecutter/revi ... t-webcams/

Is HD enabled in your zoom software?
https://support.zoom.us/hc/en-us/articl ... hancements
zoom wrote:HD video
Note: Due to recent events with COVID-19, meetings in 720p-quality video are only available to Pro account users or higher, and only for meetings with a maximum of 2 participants; 1080p quality is for special-use cases currently. For more information, please see our requirements for Group HD.
I believe the MacBook Pro has a 720p web cam.
by DSInvestor
Thu Jan 14, 2021 4:03 pm
Forum: Personal Consumer Issues
Topic: HBO Max Issues?
Replies: 31
Views: 3677

Re: HBO Max Issues?

I have Apple TV (not the 4K model) and HBO Max works really well on it.
by DSInvestor
Tue Jan 12, 2021 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: Do Self-Employed “Employer” 401k Contributions Reduce SE Tax?
Replies: 6
Views: 551

Re: Do Self-Employed “Employer” 401k Contributions Reduce SE Tax?

For S-Corp, the social security and medicare payroll taxes are determined by the amount of your S-Corp W-2 Salary Solo 401k employer contributions do not reduce the payroll taxes. Solo 401k employer contributions are an expense of the S-Corp and reduce the net income of the S-Corp.
by DSInvestor
Sun Jan 10, 2021 10:43 pm
Forum: Personal Investments
Topic: (SOLVED) Traditional IRA mistake, options?
Replies: 2
Views: 367

Re: Traditional IRA mistake, options?

You can recharacterize some or all of that 2020 Traditional IRA to a 2020 Roth IRA contribution. The deadline to recharacterize 2020 IRA contribibutions is tax filing deadline plus extensions so you still have time. If you recharacterize the Traditional IRA contribution to Roth IRA contribution, it will make it as though you had contributed to Roth IRA all along and any growth since the original contribution will be treated as though it was in the Roth IRA. See fairmark.com's Recharacterization page: https://fairmark.com/retirement/roth-accounts/recharacterizations/ Note that if you file married filing jointly and one spouse is covered by an employer plan, there are different income limits for each spouse. The income limit for the covered s...
by DSInvestor
Fri Jan 08, 2021 5:36 pm
Forum: Personal Investments
Topic: Can I do a Traditional IRA?
Replies: 7
Views: 513

Re: Can I do a Traditional IRA?

Are you married? If married, does your spouse max out retirement contributions? For spouses without compensation, spousal IRA contributions are permitted if you file your taxes as Married Filing Jointly.

Taxable account contributions are a great option if you've maxed out all tax advantaged options.
by DSInvestor
Fri Jan 08, 2021 10:27 am
Forum: Personal Investments
Topic: Correcting excess IRA contributions
Replies: 2
Views: 270

Re: Correcting excess IRA contributions

You have excess Roth IRA contributions for 2020 and possibly 2021. You may be ineligible for Traditional IRA deduction but there is no income limit to disallow Traditional IRA contributions if you have compensation. As such, recharacterization of your 2020 Roth IRA contribution to 2020 Traditional IRA contribution is an option for you. If you choose to recharacterize, it will be as though you had contributions to Traditional for 2020 all along. You still have time to recharacterize the 2020 Roth IRA contribution as the deadline is tax return filing deadline plus extensions. If you were covered by an employer sponsored retirement plan for 2020, your high income will make your 2020 Traditional IRA contribution non-deductible (IRA basis) and t...
by DSInvestor
Tue Jan 05, 2021 1:05 pm
Forum: Personal Investments
Topic: Backdoor Roth - Help please !
Replies: 12
Views: 735

Re: Backdoor Roth - Help please !

Hello, I am an investment newbie.Sorry if this is pretty basic :) . I have been reading about Backdoor Roth and want to utilize that since I do not qualify for contributing to Roth directly. The issue is I have a rollover IRA and I am trying to move it to my current 401k. Assuming I could get this done in the next week or so, can I still do Backdoor Roth for 2020 since I still had the rollover IRA funds as of Dec 31 2020. Should I just do it for 2021 instead? Any inputs? You can still use backdoor into Roth IRA for 2020 tax year. There are two steps involved: 1) Traditional IRA contribution for 2020. The deadline for this is APRIL 15, 2021 (tax filing deadline). 2) Roth conversion. This works by calendar year. Since the conversion will hap...
by DSInvestor
Tue Jan 05, 2021 10:42 am
Forum: Personal Investments
Topic: 2021 401k and Roth contributions
Replies: 5
Views: 609

Re: 2021 401k and Roth contributions

401k and Roth IRA contribution limits are separate. You can contribute to both 401k and Roth IRA.

For 2021 and 2020, IRA contribution limit are 6K (7K for folks age 50 or over).

There is still time to make IRA contributions for tax year 2020. If your income was too high for Roth IRA contributions, you can make 2020 contributions to Traditional IRA and then convert to Roth IRA. This two step process is what we call the Backdoor into Roth IRA. It works best for folks who do not have substantial IRA balances in Traditional IRA, SEP-IRA, SIMPLE-IRA or Rollover IRA. I mention this in case your wife may not have IRA balances.
by DSInvestor
Sat Jan 02, 2021 7:16 pm
Forum: Investing - Theory, News & General
Topic: Muni bonds for taxable account?
Replies: 55
Views: 7622

Re: Muni bonds for taxable account?

I view all my investment accounts (taxable, tax deferred, Roth) as parts of one portfolio. I do not hold bonds in my taxable account because my tax advantaged space is large enough to hold my entire bond allocation.
by DSInvestor
Sat Jan 02, 2021 3:58 pm
Forum: Personal Investments
Topic: Best Broker for backdoor Roth process?
Replies: 7
Views: 1669

Re: Best Broker for backdoor Roth process?

I have done Roth conversions at Fidelity and Vanguard and both firms make it easy do Roth conversions online.
by DSInvestor
Thu Dec 31, 2020 6:09 pm
Forum: Personal Finance (Not Investing)
Topic: How to estimate tax liability and estimated payments before getting W2
Replies: 9
Views: 687

Re: How to estimate tax liability and estimated payments before getting W2

Thanks for the replies, really appreciate it. I was able to figure out most of this stuff, except for distinguishing qualified vs ordinary dividends on Vanguard's site. By comparison, in TD Ameritrade when I look at my transactions list and filter by "Dividends", they say in the description either "Qualified" or "Ordinary". Does anyone know where to find this on Vanguard's site? I can't wait until a 1099-DIV is issued, because by that time it's too late -- i.e. I need to know this for tax planning purposes ahead of time in order to not incur in underpayment penalties. There are two ways to avoid underpayment penalties: 1. If the sum of your 2020 tax withholdings and estimated tax payments is at least 100% of p...
by DSInvestor
Thu Dec 31, 2020 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Dividend Taxes
Replies: 14
Views: 1420

Re: Dividend Taxes

You could hold your dividend stocks in your retirement accounts and shift to a more tax efficient strategy in your taxable account. That's one way. OP already mentioned they have fully funded their retirement accounts and their pension, so the taxable account is additional investing, so they were asking about tax strategies. Asset location swap can be done without making any new contributions. For example, if OP has tax inefficient bonds in the taxable account and the retirement accounts have a mix of stocks and bonds, they can move bonds out of taxable and into tax advantaged by placing two trades: 1) In taxable, exchange bonds for tax efficient stock funds 2) In tax advantaged, exchange stocks for bonds. For many bond funds, there may no...
by DSInvestor
Wed Dec 30, 2020 11:08 am
Forum: Personal Finance (Not Investing)
Topic: How to estimate tax liability and estimated payments before getting W2
Replies: 9
Views: 687

Re: How to estimate tax liability and estimated payments before getting W2

You have the 2019 tax liability from the 2019 tax return. If your paychecks have withheld at least 100% of the 2019 tax (110% if your 2019 AGI was over 150K ), you have no underpayment penalty. The amount withheld YTD can be seen on your paystubs.

If you've reached the safe harbor, then you're good to go.

If you find yourself needing to estimate your 2020 income and tax liability, take a look at your 2019 year end paystubs and compare them against your 2019 W-2 and use that to approximate your 2020 W-2 using your 2020 year end paystub. 2020 tax software will be useful to calculate the tax once you have the income estimated.
by DSInvestor
Tue Dec 29, 2020 11:04 am
Forum: Investing - Theory, News & General
Topic: What do you use as the Tax Loss Harvest Partner for Total Market Index (VTSAX)?
Replies: 14
Views: 1370

Re: What do you use as the Tax Loss Harvest Partner for Total Market Index (VTSAX)?

If not interested in ETFs, consider Vanguard 500 Index fund VFIAX, Vanguard Large Cap Index VLCAX.