Search found 1556 matches

by teen persuasion
Sun Jun 20, 2021 10:29 am
Forum: Personal Investments
Topic: Roth Conversions: Spouses Both Have Traditional IRAs
Replies: 23
Views: 1727

Re: Roth Conversions: Spouses Both Have Traditional IRAs

I've only recently gotten access to an employer retirement account (SIMPLE IRA), so my eventually-tIRA balance is significantly lower than DH's. He's retiring this year, but I will continue working for a few more years. Our state exempts from taxation the first $20k of tIRA income for each person, b...
by teen persuasion
Wed Jun 16, 2021 4:37 pm
Forum: Personal Investments
Topic: New to SIMPLE IRA, Questions
Replies: 2
Views: 233

Re: New to SIMPLE IRA, Questions

Contributions to an HSA made thru payroll deductions can reduce FICA. Retirement account contributions do not. It's a double edged sword, though - your SS reported wages are reduced by that HSA contribution, so your lifetime SS benefits calculated on reported wages are reduced somewhat, too, as long...
by teen persuasion
Mon Jun 14, 2021 6:33 am
Forum: Personal Investments
Topic: Actions needed for tax filing status change
Replies: 20
Views: 1683

Re: Actions needed for tax filing status change

New HSA fund (I wasn't eligible while on husbands insurance) Annual Contribution $500 Employers Annual contribution $500 We will have more than this in medical expenses. If you have medical expenses, it makes sense to contribute at least enough to cover those expenses. You will be paying them anywa...
by teen persuasion
Sun Jun 13, 2021 10:17 am
Forum: Personal Investments
Topic: 401k Expenses - Investing past the match?
Replies: 10
Views: 1134

Re: 401k Expenses - Investing past the match?

I was thinking. . .at what point are your 401k expenses "so" bad that it doesn't make sense to contribute past the match? In my case, our company matches dollar for dollar up to 4% of my salary. . .however, contributing past that point doesn't necessarily seem that beneficial over just pu...
by teen persuasion
Sat Jun 12, 2021 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Is my graduating senior a dependent? AOTC considerations?
Replies: 46
Views: 1980

Re: Is my graduating senior a dependent? AOTC considerations?

OP, The bigger picture question is have you use up the whole 4 years of AOTC? In general, the kid start school in September. So, the AOTC was claimed in the first calendar year when the kid started school. The 4 years of AOTC was used up by the last calendar year (May). Hence, this issue never aris...
by teen persuasion
Sat Jun 12, 2021 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: Is my graduating senior a dependent? AOTC considerations?
Replies: 46
Views: 1980

Re: Is my graduating senior a dependent? AOTC considerations?

I have a lot of playing to do in Turbotax. Some answers to questions above: - No loans this year - He had no job the first half of the year. - He will be making maybe $30K in the second half of the year. That may be the real issue. I just did not think through how that is going to be taxed. If taxe...
by teen persuasion
Sat Jun 12, 2021 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Is my graduating senior a dependent? AOTC considerations?
Replies: 46
Views: 1980

Re: Is my graduating senior a dependent? AOTC considerations?

OP, The bigger picture question is have you use up the whole 4 years of AOTC? In general, the kid start school in September. So, the AOTC was claimed in the first calendar year when the kid started school. The 4 years of AOTC was used up by the last calendar year (May). Hence, this issue never aris...
by teen persuasion
Fri Jun 11, 2021 7:27 pm
Forum: Investing - Theory, News & General
Topic: [Roth IRA vs Traditional IRA]
Replies: 12
Views: 1092

Re: [Roth IRA vs Traditional IRA]

I have a Roth IRA and traditional 401k because I have no idea what my tax rate will be in retirement. We also have Roth IRA and traditional employer accounts (401k, 403b, SIMPLE IRA) - the traditional employer plans help us increase our refundable credits, but IRAs are worthless for this, so Roth i...
by teen persuasion
Fri Jun 11, 2021 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: What role do tax refunds and guaranteed payments play in the 25x expenses number for FI?
Replies: 5
Views: 691

Re: What role do tax refunds and guaranteed payments play in the 25x expenses number for FI?

Careful, EITC is the Earned income tax credit - if you no longer have earned income, you are not eligible. DH is nearly done working, but I'm planning to continue part time enough to maintain eligibility for EITC as long as we have at least 1 dependent. The CTC is constantly changing: it used to be ...
by teen persuasion
Thu Jun 10, 2021 7:51 pm
Forum: Personal Investments
Topic: Any reason to contribute to HSA?
Replies: 12
Views: 1677

Re: Any reason to contribute to HSA?

It depends on the actual numbers. Since your child tax credits are refundable, you may get more money back by making contributions that lower your liability even more. I hadn't considered the refundable piece. So we actually have a fifth child due later this summer, and all five of our children wil...
by teen persuasion
Tue Jun 08, 2021 7:17 pm
Forum: Personal Investments
Topic: Why do we need 25 years of expenses, help me understand mechanics.
Replies: 36
Views: 5429

Re: Why do we need 25 years of expenses, help me understand mechanics.

Or you can just view the money as different "pots". For example if you had $1.5M, split it into 2 pots of $1M and 500K. Spend 100% of the 500K from 60 to 70 (or whatever) but only spend 4% (1/25) or less from the other pot. This is close to how I think about our possible max budget from r...
by teen persuasion
Tue Jun 08, 2021 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Child tax credit changes -- monthly refund
Replies: 32
Views: 1874

Re: Child tax credit changes -- monthly refund

Hoe are others handling this? We are not changing anything. We already had our withholding as close to zero as we can. Receiving part of the refundable credit before next year is a bonus. And since the credit is both larger and fully refundable now, we will STILL get a refund next year (tiny bit la...
by teen persuasion
Tue Jun 08, 2021 7:48 am
Forum: Personal Finance (Not Investing)
Topic: Return to Work - How is your company dealing with it?
Replies: 260
Views: 23750

Re: Return to Work - How is your company dealing with it?

At my work, most people seem to be angling for a hybrid situation: in the office 2-3 days per week and WFH the rest of the time. I'm curious as to their reasoning. Do they want more WFH, but realize 100% WFH won't fly so espouse partial WFH? Or do they miss the interactions with coworkers and want ...
by teen persuasion
Mon Jun 07, 2021 8:20 pm
Forum: Personal Investments
Topic: Let's say I want to retire - what are my expenses?
Replies: 32
Views: 3526

Re: Let's say I want to retire - what are my expenses?

Assuming you will have Social Security you don't need 25 x $70k. You need 25 x $70k-social security, (ignoring SS taxation). So at your income if we assume you'll get even a single decent-sized SS payment of $30k (current dollars), then your expenses after income are $40k. 25 x $40k = $1m, not $1.7...
by teen persuasion
Fri Jun 04, 2021 8:34 am
Forum: Personal Investments
Topic: Results of my modeling out Roth conversions
Replies: 238
Views: 14977

Re: Results of my modeling out Roth conversions

privateID, That may not be true. And, that is my point. You may achieve the same goal faster by retiring and move to Florida. But then one would need to live in Florida. The point of life is to live, not just minimize taxes. We have a place to live in Florida and New York - moving to Florida does n...
by teen persuasion
Fri Jun 04, 2021 8:12 am
Forum: Personal Investments
Topic: Hoping to retire early, rule of 55/Rule 72(t)
Replies: 8
Views: 2186

Re: Hoping to retire early, rule of 55/Rule 72(t)

There are other ways to tap your retirement accounts before age 59.5. https://forum.mrmoneymustache.com/investor-alley/how-to-withdraw-funds-from-your-ira-and-401k-without-penalty-before-age-59-5/ We are planning to use a Roth conversion ladder to access tIRA/401k accounts pre-59.5. We have enough i...
by teen persuasion
Thu Jun 03, 2021 6:36 am
Forum: Personal Finance (Not Investing)
Topic: College kid - Dependent Status
Replies: 35
Views: 2407

Re: College kid - Dependent Status

The parents qualify to claim the student as a dependent on the parent's tax return . Period, End of Story. But one thing I want to point out here. The parents *QUALIFY* to claim the student. The parents are *NOT* required to claim the student as a dependent. But even if they don’t, since they *qual...
by teen persuasion
Mon May 24, 2021 6:54 pm
Forum: Personal Finance (Not Investing)
Topic: NYS Audit Advice ( Moved out of State)
Replies: 109
Views: 6011

Re: NYS Audit Advice ( Moved out of State)

FrugalConservative wrote: Mon May 24, 2021 1:02 pm
So can you protest multiple times?
Apparently. The way the denial letter read, I could protest the denial, so I did.
by teen persuasion
Mon May 24, 2021 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: NYS Audit Advice ( Moved out of State)
Replies: 109
Views: 6011

Re: NYS Audit Advice ( Moved out of State)

I suspect they are sending these notices en mass to see who will just pay up. Yeah, that's the conclusion I came to, too. My first notice was last fall, when the state budget was cratering from Covid expenses. Given that the credit we were squabbling over was only $200, it felt like NYS was scroung...
by teen persuasion
Mon May 24, 2021 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: NYS Audit Advice ( Moved out of State)
Replies: 109
Views: 6011

Re: NYS Audit Advice ( Moved out of State)

Not sure if this will help, but here's my recent experience with NYS. Last fall we received a letter that a review of our 2017 return led NYS to decide we didn't qualify for a college tax credit for DS4. They looked at the 1098T, saw scholarships exceeded tuition, concluded we paid zero tuition, QED...
by teen persuasion
Sun May 23, 2021 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: 529 savings plan disadvantages
Replies: 28
Views: 3313

Re: 529 savings plan disadvantages

He’s wrong If you have good income you get little to no break and that’s mostly loans. Money in his taxable also would “count against him” If he forgo paying down mortgage or putting into retirement accounts then that was a mistake So the investment $$$ counts . But does the 529 counts as kids asse...
by teen persuasion
Fri May 21, 2021 10:17 pm
Forum: Personal Finance (Not Investing)
Topic: Equalizing retirement accounts with spouse
Replies: 34
Views: 3711

Re: Equalizing retirement accounts with spouse

I'm trying to shift our retirement assets to be more even - they will never get anywhere near even, but I'm trying to nudge the balances to more even . Biggest reason is for state taxes. Our state exempts the first $20k of retirement income like IRA withdrawals (we have no pensions) from taxation, p...
by teen persuasion
Fri May 21, 2021 10:20 am
Forum: Personal Investments
Topic: Retiring early, large Roth conversion or small tIRA annual dispersments?
Replies: 17
Views: 2015

Re: Retiring early, large Roth conversion or small tIRA annual dispersments?

Who developed these tax/penalty 5 year rules (I understand there are more than one, and they are easily conflated), and codified them? The English language descriptions are terrible. A logic based rubric would be much clearer. I like the colorful chart in the Bogleheads wiki page on Roth IRA. See l...
by teen persuasion
Fri May 21, 2021 9:54 am
Forum: Personal Investments
Topic: Retiring early, large Roth conversion or small tIRA annual dispersments?
Replies: 17
Views: 2015

Re: Retiring early, large Roth conversion or small tIRA annual dispersments?

Withdrawals (other than contributions, which are tax free at all times) would not be qualified until a Roth account had been aged at least 5 tax years and you are over 59.5. So if this would be your first Roth accounts of any type, you wouldn't be able to tap it immediately. I have a different unde...
by teen persuasion
Fri May 21, 2021 9:46 am
Forum: Personal Investments
Topic: Retiring early, large Roth conversion or small tIRA annual dispersments?
Replies: 17
Views: 2015

Re: Retiring early, large Roth conversion or small tIRA annual dispersments?

Withdrawals (other than contributions, which are tax free at all times) would not be qualified until a Roth account had been aged at least 5 tax years and you are over 59.5. So if this would be your first Roth accounts of any type, you wouldn't be able to tap it immediately. I have a different unde...
by teen persuasion
Fri May 21, 2021 7:17 am
Forum: Personal Investments
Topic: Retiring early, large Roth conversion or small tIRA annual dispersments?
Replies: 17
Views: 2015

Re: Retiring early, large Roth conversion or small tIRA annual dispersments?

Do you have ANY Roth IRAs right now? That is, have you each started the 5 year Roth clock? Or would any Roth conversion be your first Roth accounts? Withdrawals (edit) OF EARNINGS (other than contributions, which are tax free at all times) would not be qualified until a Roth account had been aged at...
by teen persuasion
Thu May 20, 2021 1:05 pm
Forum: Personal Consumer Issues
Topic: Designing a Compact Kitchen
Replies: 42
Views: 2475

Re: Designing a Compact Kitchen

Not sure about a new panel, but electric stove will need a 220 line, and stove, microwave, possibly fridge require dedicated circuit each, plus more circuits for small appliances (outlets). I believe I've figured I want 7 circuits for the kitchen we are redoing. Check local codes.
by teen persuasion
Thu May 20, 2021 12:59 pm
Forum: Personal Consumer Issues
Topic: Designing a Compact Kitchen
Replies: 42
Views: 2475

Re: Designing a Compact Kitchen

From an ease of usability viewpoint, I want the sink to be the middle element of the kitchen work triangle. Everything seems to go to the sink from one of the other two. Go to fridge for veggies, next stop sink to wash them. Go to stove to cook them, need to fill pot at sink. Put raw meat in pan, ne...
by teen persuasion
Mon May 17, 2021 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: 2021 ACA plan for Early Retired Married Filed Jointly
Replies: 43
Views: 3117

Re: 2021 ACA plan for Early Retired Married Filed Jointly

Folks, This is for married filed jointly with two persons. This is for someone early retire and need to use the ACA insurance. For 2021, you qualify for the ACA subsidy regardless of income level. And, the max is capped at 8.5%. It seems to me that this is like a great opportunity to Roth convert u...
by teen persuasion
Sun May 16, 2021 9:03 pm
Forum: Personal Investments
Topic: High-level early retirement plan - What do y'all think?
Replies: 53
Views: 6885

Re: High-level early retirement plan - What do y'all think?

Thanks for taking a look, Klangfool. I have run a few scenarios in turbo tax assuming a few thousand in interest income (~$5k), dividends in my taxable (~$12k) plus selling equities (for example, $100k proceeds on a $50k basis) Most of my income will be capital gains. I was actually surprised by th...
by teen persuasion
Sun May 16, 2021 11:09 am
Forum: Personal Consumer Issues
Topic: Life events spent more than earned
Replies: 57
Views: 6052

Re: Life events spent more than earned

Congrats on the new baby! Our income and expenses have always been lumpy, so I work on an annual budget, not monthly. No pay during summer break, property tax + HO insurance early in the year, school tax + annual oil prebuy in fall, annual car insurance bill, car repairs or replacement, roof replace...
by teen persuasion
Fri May 14, 2021 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: What specific complaints do you have for your tax software
Replies: 63
Views: 3457

Re: What specific complaints do you have for your tax software

TurboTax generates 125 pages of actual tax forms and supplemental internal forms, even for my college kid's pretty simple tax return. You are correct and it has gotten much worse over the years. TT likes to generate separate forms for everything - from 1099's to individual stock sales to multiple s...
by teen persuasion
Fri May 14, 2021 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: What specific complaints do you have for your tax software
Replies: 63
Views: 3457

Re: What specific complaints do you have for your tax software

This is precisely why I continue to use TaxAct. Why don't you switch? Look, we're all big-shot tycoons here (aren't we?) so what's $100 or so for a tax program? I always have to remember to enter a value on line 4a of Form 4952. That's money coming to me. Pencil and paper? Do you use a calculator o...
by teen persuasion
Fri May 14, 2021 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Age + amount to no longer max out tax-advantage?
Replies: 21
Views: 2098

Re: Age + amount to no longer max out tax-advantage?

Did you read terran's link to Mad FIentist? A Roth conversion ladder gets you access to tax deferred accounts pre-59.5. The topic starter wants to retire at 63. Roth conversions aren't needed. Later posts were discussing options between 43 and 63 at the latest. He recognizes that saving right up to...
by teen persuasion
Fri May 14, 2021 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Factoring tax credits towards being able to Semi-FIRE
Replies: 19
Views: 1620

Re: Factoring tax credits towards being able to Semi-FIRE

calwatch wrote: Fri May 14, 2021 2:32 am EITC investment income limit is permanently set at $10,000 and increases by inflation. https://crsreports.congress.gov/product/pdf/R/R46680
Thank you for the correction! Good to know.
by teen persuasion
Fri May 14, 2021 8:29 am
Forum: Personal Finance (Not Investing)
Topic: What specific complaints do you have for your tax software
Replies: 63
Views: 3457

Re: What specific complaints do you have for your tax software

As an aside, my son qualified to use the free version of H&R Block in 2019 and forgot to print that return. To print it now means he must buy the 2019 program to either print or file an amended return through H&R....Just saying...meh. Weird, that's definitely not true for free versions of T...
by teen persuasion
Fri May 14, 2021 8:03 am
Forum: Personal Finance (Not Investing)
Topic: Age + amount to no longer max out tax-advantage?
Replies: 21
Views: 2098

Re: Age + amount to no longer max out tax-advantage?

Did you read terran's link to Mad FIentist?

A Roth conversion ladder gets you access to tax deferred accounts pre-59.5.
by teen persuasion
Fri May 14, 2021 7:33 am
Forum: Personal Investments
Topic: Saver's Credit-2020 taxes and UI
Replies: 15
Views: 1600

Re: Saver's Credit-2020 taxes and UI

OK, I went to the free tax link at ny.gov. The only one I seemed to qualify for was On Line Taxes. I think I cut my nose off to spite my face. I did file for free, and get the $200 saver's credit. So I saved $50 on H&R Block. On the other hand OLT made up cut and paste all the information in, w...
by teen persuasion
Thu May 13, 2021 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: The Biggest Mistakes People Make With Social Security
Replies: 169
Views: 16363

Re: The Biggest Mistakes People Make With Social Security

The basic math says if you do not have enough money saved up to cover your living expenses, why would you retire? If you are retiring just to not have to work anymore and collect SS, then that is just being lazy. If you choose not save enough (or couldn't) over the years, you need to work to age 70...
by teen persuasion
Thu May 13, 2021 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Mother is looking to refinance and asking me to co-sign
Replies: 219
Views: 14234

Re: Mother is looking to refinance and asking me to co-sign

If she can't afford the house now - how is she going to afford it in 5 or 10 years? It's the high-interest mortgage payments she can't afford. Paying off that mortgage will be a giant step forward. After that she'll need some financial planning as you suggest. It sounds like her soc sec income is m...
by teen persuasion
Mon May 10, 2021 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: Should I tear down my house?
Replies: 57
Views: 5982

Re: Should I tear down my house?

Don't destroy a lovely old house just because you want a new house. Especially if you don't intend to stay there forever.

Sell the old house unremuddled to someone who prefers older houses, and buy yourself the new house you want.
by teen persuasion
Fri May 07, 2021 12:08 pm
Forum: Personal Investments
Topic: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?
Replies: 60
Views: 8985

Re: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?

Biggest concern in my mind is the part about living to 85. Why such an early age? I know many people who get to their 90's and a few over 100. I agree. That's a terrible number to use for financial planning purposes unless the OP is in VERY poor health. Another agree - I plan out to 105, at least. ...
by teen persuasion
Fri May 07, 2021 8:57 am
Forum: Personal Investments
Topic: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?
Replies: 60
Views: 8985

Re: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?

Biggest concern in my mind is the part about living to 85. Why such an early age? I know many people who get to their 90's and a few over 100. I agree. That's a terrible number to use for financial planning purposes unless the OP is in VERY poor health. Another agree - I plan out to 105, at least. ...
by teen persuasion
Fri May 07, 2021 7:32 am
Forum: Personal Investments
Topic: 24 y/o and making $55k - should I go traditional or Roth 401k?
Replies: 24
Views: 2040

Re: 24 y/o and making $55k - should I go traditional or Roth 401k?

I currently contribute $800 per paycheck to a traditional 401k through my company. This will put me right near the max yearly contribution limit by the end of the year. I also have a Roth IRA that I max. Once I knock off $15k of taxable income to get that portion out of the 22% tax bracket, should ...
by teen persuasion
Wed Apr 28, 2021 11:45 am
Forum: Personal Finance (Not Investing)
Topic: FAFSA student aid. Should I forgo Roth and use up brokerage account?
Replies: 60
Views: 3403

Re: FAFSA student aid. Should I forgo Roth and use up brokerage account?

Is it not better to have dedicated college savings so you don't have to stop putting money in retirement those years? It seems like even a taxable account would be better than just skipping saving entirely. I can maybe understand if you're not using all your space, but if you're already maxing reti...
by teen persuasion
Wed Apr 28, 2021 11:27 am
Forum: Personal Finance (Not Investing)
Topic: FAFSA student aid. Should I forgo Roth and use up brokerage account?
Replies: 60
Views: 3403

Re: FAFSA student aid. Should I forgo Roth and use up brokerage account?

Scenario 2: Max out retirement accounts before kids go to college More money in retirement accounts Continue to save in retirement accounts to stay under threshold Pay for college from Roth IRA The issue that I have with this scenario is that it probably works fine for 1 kid, but less likely for 2....
by teen persuasion
Mon Apr 26, 2021 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA student aid. Should I forgo Roth and use up brokerage account?
Replies: 60
Views: 3403

Re: FAFSA student aid. Should I forgo Roth and use up brokerage account?

Private colleges have plenty of money to give you but they're going to dig into your home equity, what cars you drive and all your retirement accounts. This depends on whether the private college uses FAFSA or CSS (or both.) CSS is much more intrusive in terms of what they want to know. My daughter...
by teen persuasion
Mon Apr 26, 2021 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA student aid. Should I forgo Roth and use up brokerage account?
Replies: 60
Views: 3403

Re: FAFSA student aid. Should I forgo Roth and use up brokerage account?

D) 85K + 85K = 170K . Roth IRA contribution over 18 years = 12K X 18 = 216K . OP could use Roth IRA contribution to pay for college education while hidden from FAFSA. KlangFool My Roth IRA is way more valuable to me for retirement. I wouldn't want to blow it on paying for college if there were othe...
by teen persuasion
Mon Apr 26, 2021 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA student aid. Should I forgo Roth and use up brokerage account?
Replies: 60
Views: 3403

Re: FAFSA student aid. Should I forgo Roth and use up brokerage account?

The current FAFSA rules and the new and improved FAFSA rules are two different animals. How old your kids are, and when they begin college, matters. You can walk thru the current FAFSA EFC calculations to see how you'd fare right now, but if your kids are a few years out its the new FAFSA rules you ...