Search found 11458 matches

by DSInvestor
Tue May 11, 2021 12:27 am
Forum: Personal Finance (Not Investing)
Topic: Contributed to IRA with no earned income
Replies: 5
Views: 721

Re: Contributed to IRA with no earned income

Are you married? If married, does your spouse have any compensation? If spouse has compensation and you file joint tax return, you may not have an excess contribution to your IRA.
by DSInvestor
Mon May 10, 2021 10:27 am
Forum: Personal Investments
Topic: Backdoor Roth - Forgot how to get it right on tax filing (TaxAct)
Replies: 3
Views: 227

Re: Backdoor Roth - Forgot how to get it right on tax filing (TaxAct)

It sounds like you made an IRA contribution for tax year 2019 in calendar 2020. The proper way to handle these two actions are: 1) The 2019 tax return needs to include the 2019 IRA contribution even though it was made in early 2020. If this was done, the 2019 tax return would have examined your tax ...
by DSInvestor
Sun May 09, 2021 11:00 am
Forum: Personal Consumer Issues
Topic: Adequate Speed for Internet Streaming
Replies: 22
Views: 1296

Re: Adequate Speed for Internet Streaming

Streaming is mostly downloading. 50Mbps should be plenty but the other plan has faster upload which could be a good thing if you do things like video meetings, cloud backups (iPhones and iPads backup to cloud when plugged into charge) or upload large files. When I had plans with slower upload speed,...
by DSInvestor
Mon May 03, 2021 8:51 pm
Forum: Personal Investments
Topic: Avoiding capital gains tax on reinvestments
Replies: 12
Views: 901

Re: Avoiding capital gains tax on reinvestments

I have Vanguard mutual fund accounts (not the new brokerage accounts). With Mutual fund accounts I can elect to send the distributions (capital gains distributions and dividends) of one fund to another fund. The other fund position must already exist. I do not know if this is possible with Vanguard ...
by DSInvestor
Mon Apr 26, 2021 12:14 pm
Forum: Personal Investments
Topic: What to do with s-corp profits?
Replies: 3
Views: 515

Re: What to do with s-corp profits?

Are you married and does your spouse participate in your business? If not, can the spouse participate in your business in any way? If yes, spouse becomes an employee of the S-Corp which opens up another Solo 401k contribution (employee and employer). If spouse has compensation elsewhere with an empl...
by DSInvestor
Sat Apr 24, 2021 8:56 am
Forum: Personal Consumer Issues
Topic: 2011 Subaru w/ Low Miles -- Would you Buy?
Replies: 26
Views: 2132

Re: 2011 Subaru w/ Low Miles -- Would you Buy?

I bought a 2013 Subaru outback with 105K miles on it at the time. I took the car to my mechanic for a pre-purchase inspection and mechanic said go for it. The seller was nice enough to let me keep the car overnight allow us to get a much better feel for the car. I have 176K miles on it now and have ...
by DSInvestor
Thu Apr 22, 2021 9:47 am
Forum: Personal Consumer Issues
Topic: Technology Question
Replies: 15
Views: 1261

Re: Technology Question

Apple Pencil is supported on every current iPad so you do not have to spend a lot of money on an iPad to get pencil support. The baseline iPad costs $329. Wirecutter on iPad: https://www.nytimes.com/wirecutter/reviews/the-ipad-is-the-best-tablet/ There are lots of PDF annotation apps available for i...
by DSInvestor
Tue Apr 20, 2021 2:43 pm
Forum: Personal Investments
Topic: Can someone explain wash sales to me?
Replies: 2
Views: 315

Re: Can someone explain wash sales to me?

Here's a link to Fairmark's Capital Gains page where you find information on wash sales:
https://fairmark.com/investment-taxation/capital-gain/

Fairmark's Wash Sales 101:
https://fairmark.com/investment-taxatio ... sales-101/
by DSInvestor
Sun Apr 18, 2021 8:52 pm
Forum: Personal Consumer Issues
Topic: Best online movie rental service?
Replies: 7
Views: 594

Re: Best online movie rental service?

Sometimes Amazon Prime members can get $1 credits good on digital orders if they select No Rush Shipping. If you have such a credit on your amazon account, that may give Amazon an edge over the other services.
by DSInvestor
Sun Apr 18, 2021 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion. Vanguard Tax Form Screw-Up?
Replies: 8
Views: 590

Re: Roth Conversion. Vanguard Tax Form Screw-Up?

Sorry, I misspoke. The IRA was a pre-tax IRA. So, I really don't know how the coversion could be a taxable event. Traditional IRA contributions can be deductible on non-deductible. Non-deductible IRA contributions are IRA basis and represent the amount of money in the IRA that you have already paid...
by DSInvestor
Sat Apr 17, 2021 9:22 pm
Forum: Personal Consumer Issues
Topic: Temp change in remote location - tell employer?
Replies: 35
Views: 2981

Re: Temp change in remote location - tell employer?

Every company has different policies. Even within the same company, there may be different policies for different jobs. For example, a regional manager who is expected to travel for much of the job may have carte blanche to work from almost anywhere but a call center representative who has to take o...
by DSInvestor
Thu Apr 15, 2021 7:33 pm
Forum: Personal Investments
Topic: Son (20) opening a Roth—investment options?
Replies: 21
Views: 1248

Re: Son (20) opening a Roth—investment options?

I suggest Target Retirement fund for simplicity.
by DSInvestor
Thu Apr 15, 2021 10:08 am
Forum: Personal Investments
Topic: Wash rules
Replies: 2
Views: 216

Re: Wash rules

If selling for a gain, there is no wash sale issue. Wash sales are something to be concerned about if you sell things at a loss. If selling for a gain, you can repurchase immediately even in the same account. There is no problem with buying back in the IRA. Here is a link to Fairmark.com where there...
by DSInvestor
Wed Apr 14, 2021 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: SD question - Solo 401(k) to Roth Conversion
Replies: 5
Views: 275

Re: SD question - Solo 401(k) to Roth Conversion

Fidelity's SE401k does not offer the Roth option. There are other providers like Vanguard and E-Trade that do offer the Roth option which would allow you to make up to 19.5K employee salary deferral contribution to Roth solo 401k. Would such a plan satisfy your needs or do you require the ability t...
by DSInvestor
Wed Apr 14, 2021 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion vs Cap Gain Harveting
Replies: 6
Views: 335

Re: Roth conversion vs Cap Gain Harveting

You may be able optimize for doing a bit of both and still get a zero tax liability. Maybe try running numbers with $3000 Roth conversion and then adding some Long Term Capital Gains (LTCG) to see how much LTCG you can have and still maintain zero tax liability. LTCG receives preferential tax treatm...
by DSInvestor
Wed Apr 14, 2021 11:04 am
Forum: Personal Finance (Not Investing)
Topic: SD question - Solo 401(k) to Roth Conversion
Replies: 5
Views: 275

Re: SD question - Solo 401(k) to Roth Conversion

Solo 401k plans typically do not allow for outbound transfer unless you have a qualifying event like separation from service, attaining age 59.5. There may be some custom Solo 401k plans that may allow for Roth option and in-plan conversion that keeps the money in the 401k plan but inside a Roth con...
by DSInvestor
Tue Apr 13, 2021 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional vs. ROTH [29% ETR]
Replies: 2
Views: 221

Re: Traditional vs. ROTH [29% ETR]

Roth vs Traditional impacts the income at the top of your income stack and the tax rates are at your marginal rates not your average or effective tax rates. If your effective tax rate is 29%, your marginal rates may be quite bit higher. Roth 401k vs Traditional 401k is easier than Roth IRA vs Tradit...
by DSInvestor
Tue Apr 13, 2021 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth- IRA basis timing question
Replies: 3
Views: 214

Re: Backdoor Roth- IRA basis timing question

Your IRA basis is the amount of non-deductible contributions that you have made. If you have have high income and were covered by an employer sponsored retirement plan in 2020, then your 2020 Traditional IRA contribution will not be eligible for the Traditional IRA deduction and will be IRA basis. I...
by DSInvestor
Tue Apr 13, 2021 9:28 am
Forum: Personal Consumer Issues
Topic: 10+ year old used cars?
Replies: 77
Views: 6455

Re: 10+ year old used cars?

I am the original owner of a 97 Toyota Camry and it has 170K miles. I did have a small engine oil leak but that stopped after replaced the timing belt which I believe changes many seals in the engine as well. If looking at used cars, check to see if the engine requires timing belt replacement and wh...
by DSInvestor
Sun Apr 11, 2021 12:53 pm
Forum: Investing - Theory, News & General
Topic: Strategy for RMD to ROTH
Replies: 4
Views: 495

Re: Strategy for RMD to ROTH

Make sure that you are eligible for direct Roth IRA contributions. Roth IRA requires that you have eligible compensation and that your MAGI for Roth IRA purposes does not exceed certain levels. The withdrawal from the Inherited IRA will increase your AGI/MAGI and may impact your eligibility for dire...
by DSInvestor
Fri Apr 09, 2021 11:18 am
Forum: Personal Consumer Issues
Topic: Are you competitive? If so, how do you compete as you get older?
Replies: 46
Views: 3046

Re: Are you competitive? If so, how do you compete as you get older?

I like to hike and I have encountered many people of advanced age on the trail that put young people to shame. Some are doing long through hikes of trails like the Pacific Crest Trail and others are out there volunteering with trail work teams and working their butt off. If you like to run, hike, cy...
by DSInvestor
Fri Apr 09, 2021 11:08 am
Forum: Investing - Theory, News & General
Topic: Gains Harvest or Loss Harvest in Retirment? Or both?
Replies: 2
Views: 292

Re: Gains Harvest or Loss Harvest in Retirment? Or both?

Do you live in a state with state income tax? If your state has a state income tax, you may receive 0% tax rate on some Long Term Capital Gains (LTCG) and Qualified Dividend Income (QDI) on Fed Tax but your state is likely to tax it at your state marginal tax rate. The higher Adjusted Gross Income w...
by DSInvestor
Fri Apr 09, 2021 10:32 am
Forum: Personal Finance (Not Investing)
Topic: What to do with cashing out vacation time
Replies: 4
Views: 582

Re: What to do with cashing out vacation time

Given that you cannot contribute to the 401k at the new job yet, it is OK to max out your current 401k before you leave. The 19.5K tax break for Traditional 401k reduces your AGI for the year so it doesn't matter that you cannot contribute to the 401k at the new job yet. You get to max out a 401k in...
by DSInvestor
Tue Apr 06, 2021 9:00 pm
Forum: Personal Investments
Topic: Roth Conversion Timing
Replies: 10
Views: 787

Re: Roth Conversion Timing

Make sure you tell your 2020 tax software that you made a Traditional IRA contribution for 2020 tax year. If the contribution is non-deductible, it will enter $6000 IRA basis into form 8606 which will carry forward to the 2021 form 8606 and help reduce the taxable amount of the conversion that happ...
by DSInvestor
Tue Apr 06, 2021 7:42 pm
Forum: Personal Investments
Topic: Should I use a Roth 401k instead of a regular 401k?
Replies: 23
Views: 2199

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

Recharacterize those Traditional IRA contributions to Roth IRA contributions if your income allows for direct Roth IRA contributions. I'm new to all this. What is the benefit of this? Edit: Before considering recharacterizing your Trad IRA contributions to Roth IRA contributions, make sure you are ...
by DSInvestor
Tue Apr 06, 2021 7:33 pm
Forum: Personal Investments
Topic: Roth Conversion Timing
Replies: 10
Views: 787

Re: Roth Conversion Timing

Make sure you tell your 2020 tax software that you made a Traditional IRA contribution for 2020 tax year. If the contribution is non-deductible, it will enter $6000 IRA basis into form 8606 which will carry forward to the 2021 form 8606 and help reduce the taxable amount of the conversion that happe...
by DSInvestor
Tue Apr 06, 2021 1:53 pm
Forum: Personal Consumer Issues
Topic: binoculars advise
Replies: 29
Views: 1761

Re: binoculars advise

Audubon Guide to buying binoculars:
https://www.audubon.org/gear/binocular-guide

When my wife asked for binoculars, I bought her Nikon Prostaff 7S 8x42. No complaints so far.
by DSInvestor
Tue Apr 06, 2021 1:36 pm
Forum: Personal Investments
Topic: Roth conversion
Replies: 28
Views: 1817

Re: Another Roth conversion question

What will be the anticipated tax cost for your 20,000 conversion? Market movements affect both the Traditional IRA and Roth IRA. If your concern is that you do not want to pay say $5,000 in taxes on 20K conversion only to see the 20K fall to 10K after market decline? What if the tax cost for the con...
by DSInvestor
Mon Apr 05, 2021 11:08 pm
Forum: Personal Investments
Topic: Should I use a Roth 401k instead of a regular 401k?
Replies: 23
Views: 2199

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

How many non deductible IRA contributions did you make? Those you might want to convert, depending on growth. I contributed $6k for 2020 and $6k for 2021. I was not able to deduct these from taxes this year. Recharacterize those Traditional IRA contributions to Roth IRA contributions if your income...
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: 2199

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 contr...
by DSInvestor
Mon Apr 05, 2021 12:57 pm
Forum: Personal Investments
Topic: Are converted Roth IRA Contributions Penalty Free Withdrawal?
Replies: 36
Views: 2509

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-accounts/roth-distributions/distributions-after-a-roth-ira-conversion/ Link to Fairmark's Roth page where you will find lots of information on Roth contributions, conversions, recharact...
by DSInvestor
Wed Mar 31, 2021 12:09 pm
Forum: Investing - Theory, News & General
Topic: Taxes on Traditional IRA Distributions
Replies: 15
Views: 1128

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 ra...
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: 724

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 yo...
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: 319

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 Trad...
by DSInvestor
Thu Mar 25, 2021 11:39 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 6694
Views: 1463771

Re: What Movie Have You Recently Watched?

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 recomm...
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: 352

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 t...
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: 352

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 f...
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: 352

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 contr...
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: 352

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...
by DSInvestor
Wed Mar 24, 2021 12:46 am
Forum: Personal Finance (Not Investing)
Topic: (another) traditional vs. roth 401k question
Replies: 3
Views: 356

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 hav...
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: 4420

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 t...
by DSInvestor
Fri Mar 12, 2021 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: how much is being able to make a Roth contribution worth ?
Replies: 12
Views: 1455

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...
by DSInvestor
Fri Mar 12, 2021 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: TAXES question, Roth contributions increase Federal Tax owed
Replies: 21
Views: 1478

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 deduc...
by DSInvestor
Tue Mar 09, 2021 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Qualifying for ACA subsidies in 2022 -- does my plan make sense?
Replies: 48
Views: 2039

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 valua...
by DSInvestor
Fri Mar 05, 2021 1:25 pm
Forum: Personal Consumer Issues
Topic: How to make strong coffee equivalent to Starbucks for cheaper?
Replies: 139
Views: 13622

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...
by DSInvestor
Thu Mar 04, 2021 6:19 pm
Forum: Personal Consumer Issues
Topic: Who's responsible for lost shipment?
Replies: 33
Views: 1825

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
Wed Mar 03, 2021 12:53 am
Forum: Personal Finance (Not Investing)
Topic: How to fix Over Contribution to Traditional IRA
Replies: 4
Views: 280

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 contrib...
by DSInvestor
Sun Feb 28, 2021 10:27 pm
Forum: Personal Investments
Topic: Backdoor Roth with a tIRA balance vs Taxable
Replies: 6
Views: 412

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 6:37 pm
Forum: Personal Investments
Topic: Any downsides to Mega Backdoor even for Roth eligible?
Replies: 33
Views: 2032

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 elig...