Search found 11439 matches

by DSInvestor
Sun Apr 11, 2021 12:53 pm
Forum: Investing - Theory, News & General
Topic: Strategy for RMD to ROTH
Replies: 4
Views: 461

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: 2951

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: 289

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: 570

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: 754

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: 2146

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: 754

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: 1705

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: 1775

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: 2146

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: 2146

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: 2451

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: 1092

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: 714

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: 311

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: 6535
Views: 1449325

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: 345

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: 345

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: 345

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: 345

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: 354

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: 4352

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: 1449

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: 1461

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: 2008

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: 125
Views: 9611

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: 1798

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: 276

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: 407

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: 2020

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...
by DSInvestor
Sat Feb 27, 2021 12:30 pm
Forum: Investing - Theory, News & General
Topic: Should I realise Capital Gains while in a lower tax bracket
Replies: 36
Views: 3739

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 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, Mont...
by DSInvestor
Fri Feb 26, 2021 12:50 am
Forum: Personal Consumer Issues
Topic: Buying a high property tax bill along with the condo
Replies: 14
Views: 1500

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 1:00 pm
Forum: Personal Investments
Topic: Should I convert my 3-fund into a 2-fund?
Replies: 14
Views: 1107

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 ...
by DSInvestor
Wed Feb 24, 2021 2:14 am
Forum: Investing - Theory, News & General
Topic: Should I realise Capital Gains while in a lower tax bracket
Replies: 36
Views: 3739

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 ...
by DSInvestor
Tue Feb 23, 2021 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question: Traditional IRA deduction condition "Covered by a Plan at Work"
Replies: 6
Views: 315

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 t...
by DSInvestor
Sun Feb 21, 2021 10:02 pm
Forum: Personal Finance (Not Investing)
Topic: Roll over SEP-IRA to roth ira?
Replies: 2
Views: 159

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 9:02 pm
Forum: Personal Investments
Topic: Backdoor Roth - How long do you need to be unemployed?
Replies: 4
Views: 465

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 consequence...
by DSInvestor
Tue Feb 09, 2021 5:50 pm
Forum: Personal Investments
Topic: Is Backdoor Roth IRA still possible?
Replies: 6
Views: 321

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...
by DSInvestor
Mon Feb 08, 2021 10:59 am
Forum: Personal Consumer Issues
Topic: In price negotiations now for Subaru Crosstrek (AKA Crosstrek vs CX-30)
Replies: 46
Views: 2541

Re: Subaru Crosstrek vs Mazda CX-30

If CVT is a concern, Crosstrek is available with manual transmission.
by DSInvestor
Sat Feb 06, 2021 4:32 pm
Forum: Personal Investments
Topic: Excess IRA contribution problem (Backdoor Roth)
Replies: 3
Views: 221

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....
by DSInvestor
Wed Feb 03, 2021 2:29 pm
Forum: Personal Consumer Issues
Topic: Camping Stove - Upgrade?
Replies: 32
Views: 1778

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 pro...
by DSInvestor
Wed Jan 27, 2021 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: married filing separately
Replies: 27
Views: 2243

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 pag...
by DSInvestor
Wed Jan 27, 2021 2:16 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth - 1099R
Replies: 5
Views: 527

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-deduc...
by DSInvestor
Sat Jan 23, 2021 8:02 pm
Forum: Personal Investments
Topic: Back Door Roth Conversion 2020 & Tax Filing
Replies: 20
Views: 1448

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 ...
by DSInvestor
Sat Jan 23, 2021 1:41 pm
Forum: Personal Consumer Issues
Topic: Any recs for HIGH quality webcams? Has to be better then a Macbook Pro webcam
Replies: 15
Views: 1214

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/reviews/the-best-webcams/ Is HD enabled in your zoom software? https://support.zoom.us/hc/en-us/articles/115002595343-Video-enhancements HD video Note: Due to recent events with COVID-19, meetings in 720p-quality vid...
by DSInvestor
Thu Jan 14, 2021 5:03 pm
Forum: Personal Consumer Issues
Topic: HBO Max Issues?
Replies: 31
Views: 2502

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 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: Do Self-Employed “Employer” 401k Contributions Reduce SE Tax?
Replies: 6
Views: 496

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 11:43 pm
Forum: Personal Investments
Topic: (SOLVED) Traditional IRA mistake, options?
Replies: 2
Views: 295

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 ...