FEIE, VA disability and future plans

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weimfan
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FEIE, VA disability and future plans

Post by weimfan » Tue May 19, 2020 8:13 am

A few posters mentioned I should retitle my subject and I noticed a few errors in my other post so giving it another shot. Thanks Crre and ICMoney.

Emergency funds: Probably close to 9 months of expenses, hard to tell as we currently do not pay normal price for a lot of bills or food like we would back in the states. But the number is what we both feel comfortable with. Currently includes 18k for student loans that will be used when they start accruing interest again. All of the money is currently held in a HYSA.

Debt: 166k/4.375% mortgage (VA Loan) with 28 years left and we estimate its worth around 178k. Started 2020 with 41k student loans, with 18k student loans currently at 0%. House is looked after by family friend who is keeping the yard intact while we are gone.

Tax Filing Status: MFJ

2020 Income: Around 184k that falls under FEIE, an additional 32k or so that is tax exempt from either VA disability compensation or tax exempt GI bill benefits.

Tax Rate: 0% Federal (215,200 excluded income under FEIE), 0% State.

State of Residence: TX, LCOL Area

Age: 27m/30f

Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: Have to do more research before we decide

Current retirement assets

Total amount is currently middle 5 figures

Taxable
45.14% Vanguard Total Stock Market Index Fund (VTSAX) (.04%)

Her 401k
26.13% in TSP with a majority of the funds in the 2050 L retirement fund. Also has a small amount of around 1k in the G fund. (.04% I believe this year)

His Traditional IRA at Vanguard
5.46% Money Market currently. > I want to roll this over to my IRA if that is possible to do without paying tax on the amount. Approx $2,500.

His Roth IRA at Vanguard
5.83% Vanguard Mid-Cap Index Fund (VIMAX) (.05%) > If I can move the T IRA over I will prob transfer that and this over to VSMAX.
5.42% Vanguard Small-Cap Index Fund (VSMAX) (.05%)

Her Roth IRA at Vanguard
12.01% Vanguard Target Retirement 2065 Fund (VLXVX) (.15%)

Contributions

New annual Contributions
I do not think we are able to participate in a 401k, roth 401k, TIRA or IRA due to FEIE.

$115k taxable for current year would be possible.

Available funds

Funds available in 401(k)
Did not research as explained above. Can look into it more if that is incorrect.

Education:

Her: Has bachelor's (Criminal Justice), working towards masters in a logistics field. Should finish by end of 2021. GI bill funded.
Him: Working towards bachelor's in accounting. Should finish Spring of 2022. GI bill funded

Future prospects:
We plan on only doing a year of this job and then going back to the States to finish up our degrees and possibly start a family within the next few years. After this year our income will dramatically reduce, though we should have around 43k of tax exempt income as I will be going back to school with the GI bill in addition to our VA compensation. I also plan on trying to start my own business doing bookkeeping work while in school, but if that fails I can hopefully find some work to at least put into a 401k/IRA. Wife plans to find work in supply/logistics depending how the job market is in 2021.

Addtl Info: Both working as contractors for USG. Currently both of us have health insurance with the employer, Do not believe it is a HSA eligible plan however. Can add more to OP if required.

Questions:

1. Due to the VA disability income and LCOL area in which we live, we feel we can be tolerant of more risk as far as investments go. Does this seem reasonable? We want to maximize the opportunity that this year will hopefully provide us.

2. The mortgage is another thing we would want to square away either by paying it off or refinancing. We looked into refinancing with VA IRRL early march but we did not get a rate locked in before things shot back up. At the time I think we were told 3.0% for 30 yr and a 2.875% for 15 yr. If we got close to that again I think we would do a 30 yr and put the additional money towards investments. If we can not refiance we might just go nuclear and try to put the money that was going to be in taxable into the mortgage for a guranteed 4.375% return. Though this would counteract the question posed on #1.

3. When filing taxes, would we still get a standard deduction in addition to the FEIE amounts? This was the one part that I was kind of confused about and did not want to pull the trigger on any rollovers until I fully understood it. If so I am thinking about rolling over the TIRA and some money out of my wifes TSP. In addition with the stimulus checks I was not sure how those are going to affect us. We had low incomes for 2018 and 2019 so we most likely will recieve any stimulus money that comes through as we did get the first round.

Thanks for reading!

Topic Author
weimfan
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Re: FEIE, VA disability and future plans

Post by weimfan » Wed May 20, 2020 7:57 am

Bump for some advice.

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ICMoney
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Re: FEIE, VA disability and future plans

Post by ICMoney » Wed May 20, 2020 8:53 am

Hope you get more eyes on your post this round.

Is she maxing out the TSP? (I wasn't clear if she was currently contributing or not) If not then increase her contributions so she maxes it out. Is she contributing to Roth TSP? Probably makes sense to do Roth if all income is tax free as you say.

Did you/spouse have any non-FEIE income last year? If so did you already max out your 2019 Roth IRA contributions?

Hope other posters with experience in a similar situation can come along and provide specific answers to your questions.

Your service to our country is appreciated.

Best, ICM

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weimfan
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Re: FEIE, VA disability and future plans

Post by weimfan » Wed May 20, 2020 9:22 am

ICMoney wrote:
Wed May 20, 2020 8:53 am
Hope you get more eyes on your post this round.

Is she maxing out the TSP? (I wasn't clear if she was currently contributing or not) If not then increase her contributions so she maxes it out. Is she contributing to Roth TSP? Probably makes sense to do Roth if all income is tax free as you say.

Did you/spouse have any non-FEIE income last year? If so did you already max out your 2019 Roth IRA contributions?

Hope other posters with experience in a similar situation can come along and provide specific answers to your questions.

Your service to our country is appreciated.

Best, ICM
Haha, I am hoping so aswell!

Sorry if it is confusing, she has money in the TSP but she is currently not a govt employee or at least eligible to put additional money into the TSP at this time. I was hoping to take some money out of the tsp, leaving enough to keep the account open, and moving that money into her roth IRA using the standard deduction from our 2020 taxes to prevent any taxes. I would need to look up what options we have in that respect as I am not to familiar with TSP rules. As far as I am aware due to our incomes not being over the FEIE limit we can not participate in any tax advantaged accounts unfortunately.

We did max our 2019 roth IRA contributions for both of us in February of this year, so that is taken care of at least.

Thanks for taking time to respond again.

typical.investor
Posts: 1897
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Re: FEIE, VA disability and future plans

Post by typical.investor » Wed May 20, 2020 7:16 pm

weimfan wrote:
Tue May 19, 2020 8:13 am
Contributions

New annual Contributions
I do not think we are able to participate in a 401k, roth 401k, TIRA or IRA due to FEIE.
TIRA and ROTH contributions are definitely out unless you have amounts over the FEIE.

I have seen some people report that their employer makes a 401k contribution and they excluded that amount under FEIE. It didn't seem right to me and I was envious and really looked into it. There is no clear answer. This is typical of what I found:
An IRS specialist had expressed the opinion that under Revenue Ruling 70-491, FEIE income may not be contributed to retirement plans formed under Internal Revenue Code 401. However, others have argued that this ruling from 1970 was before 401(k) plans were established so cannot be applied on those plans.

From my research, I have not encountered a publicly written opinion from the IRS that specifically disallows contributing to a 401(k) with income that later gets excluded
https://moneymattersforglobetrotters.co ... e-to-401k/
weimfan wrote:
Tue May 19, 2020 8:13 am
3. When filing taxes, would we still get a standard deduction in addition to the FEIE amounts? This was the one part that I was kind of confused about and did not want to pull the trigger on any rollovers until I fully understood it. If so I am thinking about rolling over the TIRA and some money out of my wifes TSP. In addition with the stimulus checks I was not sure how those are going to affect us. We had low incomes for 2018 and 2019 so we most likely will recieve any stimulus money that comes through as we did get the first round.
Yes, you do receive the standard deduction. Be careful though if your rollover results in taxable income. You'll be paying in the 22% or 24% bracket I think as the 184k you exclude via the FEIE isn't taxed, but it does count in calculating your bracket. The IRS kindly notified me of that my first time...I use Turbo Tax now which makes things easier.

I don't own a home as we move to be close to work which moves, so maybe I shouldn't give advice there. I will just bring up the possibility of using an interest only loan. If you can't refinance, then maybe that wouldn't be possible either of course. It'd seem to have the same effect of freeing up capital for investing now if possible though.

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weimfan
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Re: FEIE, VA disability and future plans

Post by weimfan » Thu May 21, 2020 5:07 am

typical.investor wrote:
Wed May 20, 2020 7:16 pm
weimfan wrote:
Tue May 19, 2020 8:13 am
Contributions

New annual Contributions
I do not think we are able to participate in a 401k, roth 401k, TIRA or IRA due to FEIE.
TIRA and ROTH contributions are definitely out unless you have amounts over the FEIE.

I have seen some people report that their employer makes a 401k contribution and they excluded that amount under FEIE. It didn't seem right to me and I was envious and really looked into it. There is no clear answer. This is typical of what I found:
An IRS specialist had expressed the opinion that under Revenue Ruling 70-491, FEIE income may not be contributed to retirement plans formed under Internal Revenue Code 401. However, others have argued that this ruling from 1970 was before 401(k) plans were established so cannot be applied on those plans.

From my research, I have not encountered a publicly written opinion from the IRS that specifically disallows contributing to a 401(k) with income that later gets excluded
https://moneymattersforglobetrotters.co ... e-to-401k/
weimfan wrote:
Tue May 19, 2020 8:13 am
3. When filing taxes, would we still get a standard deduction in addition to the FEIE amounts? This was the one part that I was kind of confused about and did not want to pull the trigger on any rollovers until I fully understood it. If so I am thinking about rolling over the TIRA and some money out of my wifes TSP. In addition with the stimulus checks I was not sure how those are going to affect us. We had low incomes for 2018 and 2019 so we most likely will recieve any stimulus money that comes through as we did get the first round.
Yes, you do receive the standard deduction. Be careful though if your rollover results in taxable income. You'll be paying in the 22% or 24% bracket I think as the 184k you exclude via the FEIE isn't taxed, but it does count in calculating your bracket. The IRS kindly notified me of that my first time...I use Turbo Tax now which makes things easier.

I don't own a home as we move to be close to work which moves, so maybe I shouldn't give advice there. I will just bring up the possibility of using an interest only loan. If you can't refinance, then maybe that wouldn't be possible either of course. It'd seem to have the same effect of freeing up capital for investing now if possible though.
That is what I was reading up aswell, in regards to the tax defferred accounts. Several people at my job say are contributing to a 401k and under FEIE, but it did not make sense to me as I would be turning tax free income into money that will be taxed later on. Not to mention there is no company match and prudential apparently has fairly high ER on their funds that are provided to us.

Everything online that ive read from bogleheads and other sites a few months ago seemed that nobody was really 100% sure either so I was just gonna stay away and not put us in a bad spot later on.

For the rollover the totals would be around 12k or so for what I wanted to move from my TIRA and her TSP. Then if any of the younger taxable lots end up having capital gains close to end of the year, use the rest of the standard deduction to realize those gains. Does this sound like a good idea? I know if we go over standard deduction we are at the marginal tax rate that would occur if our income was counted normally so 24% at 184k and the same for taxable as all our gains would be short term. I might take a look at turbotax aswell then if it works for you and see what it comes up with.

We might reach out again with the company and see what rates are looking like now. At this point I think we can still get a better rate and make it a little less of a payment than what it is currently so better than nothing.

typical.investor
Posts: 1897
Joined: Mon Jun 11, 2018 3:17 am

Re: FEIE, VA disability and future plans

Post by typical.investor » Thu May 21, 2020 5:33 am

weimfan wrote:
Thu May 21, 2020 5:07 am


That is what I was reading up aswell, in regards to the tax defferred accounts. Several people at my job say are contributing to a 401k and under FEIE, but it did not make sense to me as I would be turning tax free income into money that will be taxed later on. Not to mention there is no company match and prudential apparently has fairly high ER on their funds that are provided to us.
Well, if there's no match and bad choices, then yeah skip it. It's just one year right.

In the future, try to contribute as much as you can into you 401(k) (hopefully with better choices). If you can't afford to max it out due to being in school or whatever, max the 401(k) out even though your take home won't cover your expenses and just take money from taxable for living expenses.

By the way, do you get taxed in your country of residence at a high rate? If so, maybe you might want to not take the FEIE. That's probably why work lets people make 401(k) contributions. You also have the option of paying tax on your US income (thus making a 401(k) contribution), paying taxes to your country of residence, then claiming foreign taxes paid as a credit on your US return. It only works out better than the FEIE in a few places. Germany might be one of them.

So again, I don't know the legality of making the 401(k) contribution and then taking the FEIE.
weimfan wrote:
Thu May 21, 2020 5:07 am
For the rollover the totals would be around 12k or so for what I wanted to move from my TIRA and her TSP. Then if any of the younger taxable lots end up having capital gains close to end of the year, use the rest of the standard deduction to realize those gains. Does this sound like a good idea? I know if we go over standard deduction we are at the marginal tax rate that would occur if our income was counted normally so 24% at 184k and the same for taxable as all our gains would be short term. I might take a look at turbotax aswell then if it works for you and see what it comes up with.

We might reach out again with the company and see what rates are looking like now. At this point I think we can still get a better rate and make it a little less of a payment than what it is currently so better than nothing.
Yes, I would definitely use the deduction to do the rollover and realize gains up to the amount of deductions you have. If you are putting $115k in taxable now (or have some already), watch out dividends might put you over. Sometimes you have to wait to late dec. to know how much you can realize in gains.

In the past, I've had to pay taxes (10%) on the TIRA rollover, commit that amount from my own cash and then claim it back on my return. Maybe you will have better luck but I couldn't get mine processed without the withholding. Yes, I am an American.

DownToThis
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Re: FEIE, VA disability and future plans

Post by DownToThis » Thu May 21, 2020 6:55 am

I am in the process of doing the VA IRRL and am getting 2.75% for a 30 year (down from 3.75% I got in 2017). I would definitely check back in to that option. I got a few quotes from Costco (you can check the various refinance threads on this site which have been helpful)

Topic Author
weimfan
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Re: FEIE, VA disability and future plans

Post by weimfan » Thu May 21, 2020 7:06 am

by typical.investor » Thu May 21, 2020 3:03 pm
Well, if there's no match and bad choices, then yeah skip it. It's just one year right.

In the future, try to contribute as much as you can into you 401(k) (hopefully with better choices). If you can't afford to max it out due to being in school or whatever, max the 401(k) out even though your take home won't cover your expenses and just take money from taxable for living expenses.

By the way, do you get taxed in your country of residence at a high rate? If so, maybe you might want to not take the FEIE. That's probably why work lets people make 401(k) contributions. You also have the option of paying tax on your US income (thus making a 401(k) contribution), paying taxes to your country of residence, then claiming foreign taxes paid as a credit on your US return. It only works out better than the FEIE in a few places. Germany might be one of them.

So again, I don't know the legality of making the 401(k) contribution and then taking the FEIE.
Yes it is only going to be for this year, we should be back in the US in 2021.

When I get back and start back with school the GI bill should cover all essential bills, and in addition to our VA disability money let us put a substantial amount into 401ks if we are working. If not we can always put that additional money into a taxable account like we are doing this year.

Without going into too much detail, we are working in a designated combat zone and do not pay taxes to the host country. I did not think about not taking FEIE but I do not think I can reverse my decision now unfortunately, even if it would have been more beneficial.
Yes, I would definitely use the deduction to do the rollover and realize gains up to the amount of deductions you have. If you are putting $115k in taxable now (or have some already), watch out dividends might put you over. Sometimes you have to wait to late dec. to know how much you can realize in gains.

In the past, I've had to pay taxes (10%) on the TIRA rollover, commit that amount from my own cash and then claim it back on my return. Maybe you will have better luck but I couldn't get mine processed without the withholding. Yes, I am an American.
I am glad you actually brought that up, I did not even think about dividends or interest from our HYSA/Emergency fund as counting towards the deduction. We opened the taxable account in early february of this year so everything will be short term. From what ive read VTSAX does quarterly dividend payments so I guess after the last payment il have to calculate the #s to see.

So an example of your rollover would be if you had a $2500 rollover, you paid an additional $250 to roll over the $2500 amount and then recieved the $250 back after completing your taxes? Il have to talk to Vanguard to see how they withhold taxes on the TIRA. Thanks for all the help and bringing up some good points to think about.

typical.investor
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Re: FEIE, VA disability and future plans

Post by typical.investor » Thu May 21, 2020 7:37 am

weimfan wrote:
Thu May 21, 2020 7:06 am
by typical.investor » Thu May 21, 2020 3:03 pm
Well, if there's no match and bad choices, then yeah skip it. It's just one year right.

In the future, try to contribute as much as you can into you 401(k) (hopefully with better choices). If you can't afford to max it out due to being in school or whatever, max the 401(k) out even though your take home won't cover your expenses and just take money from taxable for living expenses.

By the way, do you get taxed in your country of residence at a high rate? If so, maybe you might want to not take the FEIE. That's probably why work lets people make 401(k) contributions. You also have the option of paying tax on your US income (thus making a 401(k) contribution), paying taxes to your country of residence, then claiming foreign taxes paid as a credit on your US return. It only works out better than the FEIE in a few places. Germany might be one of them.

So again, I don't know the legality of making the 401(k) contribution and then taking the FEIE.
Yes it is only going to be for this year, we should be back in the US in 2021.

When I get back and start back with school the GI bill should cover all essential bills, and in addition to our VA disability money let us put a substantial amount into 401ks if we are working. If not we can always put that additional money into a taxable account like we are doing this year.

Without going into too much detail, we are working in a designated combat zone and do not pay taxes to the host country. I did not think about not taking FEIE but I do not think I can reverse my decision now unfortunately, even if it would have been more beneficial.
You can take the FEIE whenever you do your taxes. April 2021 (or later with the automatic extension) for example to claim 2020. You'd to arrange the 401k contributions before that though.

The only rule is you can't switch back and forth between using the FEIE and not. Anyway, if you don't use it, you'll have to pay US taxes on all your income and will have no tax credit from a foreign country. So definitely exclude your income under the FEIE.
weimfan wrote:
Thu May 21, 2020 7:06 am
Yes, I would definitely use the deduction to do the rollover and realize gains up to the amount of deductions you have. If you are putting $115k in taxable now (or have some already), watch out dividends might put you over. Sometimes you have to wait to late dec. to know how much you can realize in gains.

In the past, I've had to pay taxes (10%) on the TIRA rollover, commit that amount from my own cash and then claim it back on my return. Maybe you will have better luck but I couldn't get mine processed without the withholding. Yes, I am an American.
I am glad you actually brought that up, I did not even think about dividends or interest from our HYSA/Emergency fund as counting towards the deduction. We opened the taxable account in early february of this year so everything will be short term. From what ive read VTSAX does quarterly dividend payments so I guess after the last payment il have to calculate the #s to see.[/quote]

Yeah so definitely wait on the capital gains until you know the dividend picture. When does VTSAX pay? For a couple of my funds (not Vanguard), the dividend is announced year late December and then pays early January (credited to the prior year). So I have to watch the announcement and calculate the amount because by the time I see it, it's too late to realize capital gains.
weimfan wrote:
Thu May 21, 2020 7:06 am
So an example of your rollover would be if you had a $2500 rollover, you paid an additional $250 to roll over the $2500 amount and then recieved the $250 back after completing your taxes? Il have to talk to Vanguard to see how they withhold taxes on the TIRA. Thanks for all the help and bringing up some good points to think about.
Yeah exactly. So on the $2500 rollover, $2250 actually got into the ROTH via conversion. Then I added $250 in cash to the ROTH (after discussion with the broker who said they don't give tax advice but that's what their overseas customers do). So I have $2500 in the ROTH and am filing this year to get the refund. Turbotax seems to have handled it fine and I think I am good to go. My broker knows I am overseas though. If you are using your US address, Vanguard may just assume you are in the States. In any case, I can't make any type of IRA withdrawal without at least a 10% tax withholding.

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ICMoney
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Re: FEIE, VA disability and future plans

Post by ICMoney » Thu May 21, 2020 7:59 am

weimfan wrote:
Thu May 21, 2020 7:06 am
So an example of your rollover would be if you had a $2500 rollover, you paid an additional $250 to roll over the $2500 amount and then recieved the $250 back after completing your taxes? Il have to talk to Vanguard to see how they withhold taxes on the TIRA. Thanks for all the help and bringing up some good points to think about.
If you use Vanguard, you have the option to not have taxes withheld on tIRA to rIRA conversions in my experience.

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weimfan
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Re: FEIE, VA disability and future plans

Post by weimfan » Thu May 21, 2020 8:14 am

DownToThis wrote:
Thu May 21, 2020 6:55 am
I am in the process of doing the VA IRRL and am getting 2.75% for a 30 year (down from 3.75% I got in 2017). I would definitely check back in to that option. I got a few quotes from Costco (you can check the various refinance threads on this site which have been helpful)
If I could get sub %3 on a 30 that would be great! Il take a more in depth look into those threads and see what I can find, we were talking with veterans united but havent spoken in awhile. I assume you have to have a costco membership in order to apply for their refiance? The cost would be saved obviously but getting everything setup and waiting on mail forwards can take awhile.

typical.investor
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Re: FEIE, VA disability and future plans

Post by typical.investor » Thu May 21, 2020 8:19 am

ICMoney wrote:
Thu May 21, 2020 7:59 am
weimfan wrote:
Thu May 21, 2020 7:06 am
So an example of your rollover would be if you had a $2500 rollover, you paid an additional $250 to roll over the $2500 amount and then recieved the $250 back after completing your taxes? Il have to talk to Vanguard to see how they withhold taxes on the TIRA. Thanks for all the help and bringing up some good points to think about.
If you use Vanguard, you have the option to not have taxes withheld on tIRA to rIRA conversions in my experience.
Do you have an overseas address? I understood it to be a requirement in that case (foreign residency)

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ICMoney
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Re: FEIE, VA disability and future plans

Post by ICMoney » Thu May 21, 2020 8:33 am

typical.investor wrote:
Thu May 21, 2020 8:19 am
ICMoney wrote:
Thu May 21, 2020 7:59 am
weimfan wrote:
Thu May 21, 2020 7:06 am
So an example of your rollover would be if you had a $2500 rollover, you paid an additional $250 to roll over the $2500 amount and then recieved the $250 back after completing your taxes? Il have to talk to Vanguard to see how they withhold taxes on the TIRA. Thanks for all the help and bringing up some good points to think about.
If you use Vanguard, you have the option to not have taxes withheld on tIRA to rIRA conversions in my experience.
Do you have an overseas address? I understood it to be a requirement in that case (foreign residency)
No I don't, I assumed OP was using their Texas address with Vanguard but maybe that is incorrect. You may disregard this comment if it is...

typical.investor
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Re: FEIE, VA disability and future plans

Post by typical.investor » Thu May 21, 2020 8:37 am

ICMoney wrote:
Thu May 21, 2020 8:33 am
typical.investor wrote:
Thu May 21, 2020 8:19 am
ICMoney wrote:
Thu May 21, 2020 7:59 am
weimfan wrote:
Thu May 21, 2020 7:06 am
So an example of your rollover would be if you had a $2500 rollover, you paid an additional $250 to roll over the $2500 amount and then recieved the $250 back after completing your taxes? Il have to talk to Vanguard to see how they withhold taxes on the TIRA. Thanks for all the help and bringing up some good points to think about.
If you use Vanguard, you have the option to not have taxes withheld on tIRA to rIRA conversions in my experience.
Do you have an overseas address? I understood it to be a requirement in that case (foreign residency)
No I don't, I assumed OP was using their Texas address with Vanguard but maybe that is incorrect. You may disregard this comment if it is...
Yeah conversion with a US address should have no withholding.

I only mentioned it as I wasn’t sure what address the OP was using.

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weimfan
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Re: FEIE, VA disability and future plans

Post by weimfan » Thu May 21, 2020 9:04 am

For Vanguard I am 99% certain I only have our Texas address but I could supply a local address if needed.

typical.investor
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Re: FEIE, VA disability and future plans

Post by typical.investor » Thu May 21, 2020 9:11 am

weimfan wrote:
Thu May 21, 2020 9:04 am
For Vanguard I am 99% certain I only have our Texas address but I could supply a local address if needed.
Texas address is best. You won’t have to worry about withholding that way.

DownToThis
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Re: FEIE, VA disability and future plans

Post by DownToThis » Thu May 21, 2020 10:24 am

weimfan wrote:
Thu May 21, 2020 8:14 am
DownToThis wrote:
Thu May 21, 2020 6:55 am
I am in the process of doing the VA IRRL and am getting 2.75% for a 30 year (down from 3.75% I got in 2017). I would definitely check back in to that option. I got a few quotes from Costco (you can check the various refinance threads on this site which have been helpful)
If I could get sub %3 on a 30 that would be great! Il take a more in depth look into those threads and see what I can find, we were talking with veterans united but havent spoken in awhile. I assume you have to have a costco membership in order to apply for their refiance? The cost would be saved obviously but getting everything setup and waiting on mail forwards can take awhile.
Yes you need a Costco membership. The benefit was that the costs are capped (well partly) but honestly for the VA IRRL there really shouldn't be any fees. In fact I got a $500 lender credit after bouncing off a few different mortgage brokers.

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weimfan
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Re: FEIE, VA disability and future plans

Post by weimfan » Fri May 22, 2020 10:17 am

I think with any VA disability % funding fees are waived so I believe you are right for the IRRL. I think we will take the next few weeks to focus on refinance, then get the rollovers taken care of. Then by year end we'l hopefully be heading home and have all our ducks in a row to start of 2021. Thanks everyone for the suggestions, I will try to update this post in a few months or at the end of the year with what went well or wrong.

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