Search found 1556 matches

by tashnewbie
Mon May 17, 2021 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Buy a house or not? Would I be house poor?
Replies: 13
Views: 1051

Re: Buy a house or not? Would I be house poor?

Why do you want to move to the HCOL area? Is it closer to family or amenities that you want? Although no one can predict the future, how long do you plan to stay in the HCOL area? Personally, a $500k house or even a $400k one on $100k salary would scare me. But, I know house buying math can be diffe...
by tashnewbie
Wed May 12, 2021 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Best/tax-efficient sources for getting down payment together for a first-time house purchase
Replies: 16
Views: 1215

Re: Best/tax-efficient sources for getting down payment together for a first-time house purchase

Seems like the best of these not so great options is to fully liquidate the taxable brokerage account. Looks like you'll have net $8k capital gains, after using carryover losses to offset gains. Looks like you'd have ~$99k from liquidating this account (if you're in the 15% LTCG bracket). I'd keep s...
by tashnewbie
Mon May 10, 2021 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Student loan debt vs investing
Replies: 24
Views: 1766

Re: Student loan debt vs investing

My wife and I both had Roth 401k and traditional 401ks. We opened up a Roth IRA and rollover IRA fidelity to move the funds to. There should be no penalty or tax for doing it this way right? As long as you're just transferring the Roth 401k to Roth IRA, there is no tax. But you will pay tax if you'...
by tashnewbie
Fri May 07, 2021 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: New Employer - Need advice please
Replies: 1
Views: 597

Re: New Employer - Need advice please

Short answer is “no.”

I also had this question this year. Annual contribution limit is for 401k and 403b. 457s are treated differently and you can also max a contribution to that.

Google something like “can I contribute max to 401k and 403b in the same year?” for confirmation.
by tashnewbie
Thu May 06, 2021 2:19 pm
Forum: Personal Investments
Topic: Late 20s questions about investment allocation over next few years
Replies: 21
Views: 2054

Re: Late 20s questions about investment allocation over next few years

Also, once you are married, your spouse should max her 401k contributions ($19.5k/year), if possible with her salary. You'll want as much tax-deferral as you can get, especially since you won't have access to a 401k, at least initially. [You'll also be able to deduct a Traditional IRA contribution (...
by tashnewbie
Thu May 06, 2021 2:14 pm
Forum: Personal Investments
Topic: Late 20s questions about investment allocation over next few years
Replies: 21
Views: 2054

Re: Late 20s questions about investment allocation over next few years

Based on what you said above, this Betterment account is a taxable brokerage account. Therefore, you cannot transfer this account into your old 401k (even if the old 401k would accept incoming transfers at this point, which it probably wouldn't). You also can't convert this money to Roth IRA (you c...
by tashnewbie
Thu May 06, 2021 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Question on Backdoor Roth IRA
Replies: 8
Views: 595

Re: Question on Backdoor Roth IRA

Thank you @tashnewbie. I am a little lost here. I have a single Traditional IRA and Roth IRA currently (Traditional / Rollover IRA - called Rollover as I rolled previous 401(k)s into this before) in Vanguard. All the money in it is in VBTLX (about $100k). So, if I am understanding you correctly, th...
by tashnewbie
Thu May 06, 2021 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Question on Backdoor Roth IRA
Replies: 8
Views: 595

Re: Question on Backdoor Roth IRA

Deadline to make 2020 CONTRIBUTION to IRA is May 17, 2021. There is no deadline to do the second step of the backdoor Roth (i.e., Roth conversion). If you make a 2020 non-deductible Traditional IRA contribution (by 5/17/21), you will need to complete a 2020 Form 8606. You can file this form as a st...
by tashnewbie
Thu May 06, 2021 9:35 am
Forum: Personal Investments
Topic: Late 20s questions about investment allocation over next few years
Replies: 21
Views: 2054

Re: Late 20s questions about investment allocation over next few years

Near term (before 5/17/21):[/b] 1. Since I had <$124K income in 2020, make a substantial contribution to my old Roth IRA at Vanguard (maybe $60K, leaving me with $35K cash) -this needs to be done before 5/17, right? -is this relevant to my 2020 tax return? As I mentioned, I am in the process of fil...
by tashnewbie
Thu May 06, 2021 9:05 am
Forum: Personal Investments
Topic: Late 20s questions about investment allocation over next few years
Replies: 21
Views: 2054

Re: Late 20s questions about investment allocation over next few years

You can only contribute $6k/year to IRA (Roth, Traditional, or a combo). You can’t dump $35k in there for 2020 (many of us wish there was no Roth IRA contribution limit!). You can contribute $6k for 2020 (by 5/17) and $6k for 2021 all at the same time. Given that your income may exceed the limit th...
by tashnewbie
Thu May 06, 2021 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Student loan debt vs investing
Replies: 24
Views: 1766

Re: Student loan debt vs investing

My wife and I both had Roth 401k and traditional 401ks. We opened up a Roth IRA and rollover IRA fidelity to move the funds to. There should be no penalty or tax for doing it this way right? As long as you're just transferring the Roth 401k to Roth IRA, there is no tax. But you will pay tax if you'...
by tashnewbie
Wed May 05, 2021 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Student loan debt vs investing
Replies: 24
Views: 1766

Re: Student loan debt vs investing

I don’t know what you should do about your specific question. But both of you probably should be doing traditional 401k contributions. I’d at least do those to get full employer match. Also, it’s not clear to me what you’re planning to do with the Rollover IRAs. Are those rollovers of Roth 401k or T...
by tashnewbie
Wed May 05, 2021 7:45 pm
Forum: Personal Investments
Topic: Late 20s questions about investment allocation over next few years
Replies: 21
Views: 2054

Re: Late 20s questions about investment allocation over next few years

You can only contribute $6k/year to IRA (Roth, Traditional, or a combo). You can’t dump $35k in there for 2020 (many of us wish there was no Roth IRA contribution limit!). You can contribute $6k for 2020 (by 5/17) and $6k for 2021 all at the same time. Given that your income may exceed the limit thi...
by tashnewbie
Wed May 05, 2021 2:36 pm
Forum: Personal Investments
Topic: Late 20s questions about investment allocation over next few years
Replies: 21
Views: 2054

Re: Late 20s questions about investment allocation over next few years

I think you're in great shape overall. I agree with user above that it's not ideal to use a TDF in taxable. You mentioned you have Betterment TLH turned on. I don't see how there can be any TLH of a TDF. You don't need to pay Betterment a percentage of your assets to hold a TDF. You can EASILY do th...
by tashnewbie
Wed May 05, 2021 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: New Job: Valuing Current Pension
Replies: 11
Views: 700

Re: New Job: Valuing Current Pension

I'm definitely no expert, so confirm this, and hopefully others will provide more feedback. Couldn't you calculate the present value of the $850k lump sum pension payout in 20 years? I used an online calculator and it looks like PV is ~$250k, which means it'll gain ~$600k over 20 years or $30k/year...
by tashnewbie
Wed May 05, 2021 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a townhouse in Nova
Replies: 24
Views: 2764

Re: Buying a townhouse in Nova

Totally unrelated to OP's direct question, but if your total household gross income is $200k and you contribute $39k combined to traditional 401ks, then your AGI is no more than $161k. You don't need to use the backdoor Roth if your married filing jointly AGI (and likely MAGI) is $161k. You can make...
by tashnewbie
Tue May 04, 2021 2:00 pm
Forum: Personal Investments
Topic: 30 Year Old; First Steps into Financial Readiness
Replies: 9
Views: 794

Re: 30 Year Old; First Steps into Financial Readiness

I would definitely start with paying off the CC debt. I would stop 529 investments until you have paid off the CCs and bumped your emergency fund. As an investing priority, I would max Roth IRAs for each of you each year ($1000/month). I would use Fidelity for those, since you already have one there...
by tashnewbie
Tue May 04, 2021 9:47 am
Forum: Personal Finance (Not Investing)
Topic: What to do with $80K?
Replies: 5
Views: 1064

Re: What to do with $80K?

Maxing out 401k will be about an extra $15k it seems, which at 22% (+5% state) will result in paying $4000 less in taxes. I would do that, it's always nice to pay less in taxes. It's even slightly better because he's in the 24% fed bracket. OP, definitely max your traditional 401k. At your income l...
by tashnewbie
Tue May 04, 2021 9:23 am
Forum: Personal Investments
Topic: Late 20s questions about investment allocation over next few years
Replies: 21
Views: 2054

Re: Late 20s questions about investment allocation over next few years

1. What does Betterment IRA (post-tax) mean? Is it a Roth IRA, Traditional IRA, or a brokerage account? Where are your "misc. brokerage accounts" held? Also at Betterment? FYI, if your Betterment IRA (post-tax) is a Roth or Traditional IRA, you can't just dump $50k in it at any given time....
by tashnewbie
Mon May 03, 2021 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: Sending money to mentally unstable relative without revealing my home address
Replies: 39
Views: 3510

Re: Sending money to mentally unstable relative without revealing my home address

Sending money to an unstable relative and concern for personal safety. I hope OP is all right and not involved in some sort of coercive scheme or demand. Perhaps advice should be sought by OP in that regard. Who knows what subterfuge and threat, overt or implied, can come out of family dynamics. Co...
by tashnewbie
Mon May 03, 2021 4:33 pm
Forum: Personal Investments
Topic: 3 Fund Lazy Portfolio ( Newbie Investor)
Replies: 10
Views: 987

Re: 3 Fund Lazy Portfolio ( Newbie Investor)

It's never too late to start!! You're doing great by maxing 401k and Roth IRA annually. What are you invested in in the 401k? I would just do VTWAX in your Roth IRA. Generally, the recommendation is to keep only stock/equities in the Roth IRA because qualified withdrawals are tax- and penalty-free. ...
by tashnewbie
Mon May 03, 2021 4:28 pm
Forum: Personal Investments
Topic: How am I doing? What could I DO better? 33yr old
Replies: 8
Views: 1973

Re: How am I doing? What could I DO better? 33yr old

Everyone on this post seems to agree to go for a Roth now rather than later even while at my higher income bracket essentially to avoid future tax brackets. – Still reading into this. I think my employers offers options for the Roth account which would make it easy if that works for the backdoor me...
by tashnewbie
Mon May 03, 2021 2:00 pm
Forum: Personal Investments
Topic: How am I doing? What could I DO better? 33yr old
Replies: 8
Views: 1973

Re: How am I doing? What could I DO better? 33yr old

Welcome to the forum. Agree with others about backdoor Roth. Why are you holding $55k cash in the MM account? Is it your "emergency fund"? I agree with other user that said ensure you're at least making 0.5% on that money (some MMAs don't even have that yield right now). You could check lo...
by tashnewbie
Mon May 03, 2021 1:53 pm
Forum: Personal Investments
Topic: First time poster seeking advice for lump sum
Replies: 4
Views: 598

Re: First time poster seeking advice

Person 2 401k 2.05% T. Rowe Price Retirement 2045 Fund (TRRKX) (0.71%) no match 3. We have never done backdoor Roths and have not looked deeply into it. Is it a no brainer to do this? If so, should we only do it going forward or is there a way to convert past contributions? I don't think it is a no...
by tashnewbie
Mon May 03, 2021 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Sending money to mentally unstable relative without revealing my home address
Replies: 39
Views: 3510

Re: Sending money to mentally unstable relative without revealing my home address

Paypal? Venmo? Cashapp? I've used the first 2, and I don't think a recipient gets those personal details of the sender. Don't know if you can send that much through those apps. It's been a while since I've used them, but I do think each person has to include a bank account to send/receive funds. If ...
by tashnewbie
Mon May 03, 2021 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Question on Backdoor Roth IRA
Replies: 8
Views: 595

Re: Question on Backdoor Roth IRA

Deadline to make 2020 CONTRIBUTION to IRA is May 17, 2021. There is no deadline to do the second step of the backdoor Roth (i.e., Roth conversion). If you make a 2020 non-deductible Traditional IRA contribution (by 5/17/21), you will need to complete a 2020 Form 8606. You can file this form as a sta...
by tashnewbie
Mon May 03, 2021 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Excess Roth IRA contribution earnings
Replies: 2
Views: 240

Re: Excess Roth IRA contribution earnings

Do either of you have pretax IRAs (Traditional, SEP, SIMPLE, Rollover)? If not, then you could re-characterize the 2020 Roth IRA contributions and then do Roth conversions. These 2 steps (non-deductible TIRA contribution + Roth conversion) make up the Backdoor Roth . You should read that wiki and ot...
by tashnewbie
Mon May 03, 2021 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford a $1.75M house?
Replies: 22
Views: 3333

Re: Can we afford a $1.75M house?

Independent of buying a house, I would be diversifying out of the RSUs, so that part seems like a reasonable plan. +1. Over 50% of your non-real estate net worth is concentrated in one company (plus you work there too). At the very least, you probably should sell the RSUs as soon as you can get LTC...
by tashnewbie
Sun May 02, 2021 6:33 pm
Forum: Personal Investments
Topic: $275k in cash - increase house down payment or open taxable account?
Replies: 16
Views: 2448

Re: $275k in cash - increase house down payment or open taxable account?

Even if you bought a $500k house and put 30% down, it looks like you have too much cash (I’m not saying you should do either of those things). I’d probably only put 20% down. Definitely keep enough cash to cover increased cash reserve needs and any short-term planned spending. If you have access to ...
by tashnewbie
Thu Apr 29, 2021 5:03 pm
Forum: Personal Investments
Topic: Couple approaching 30 - Portfolio Check In
Replies: 7
Views: 1026

Re: Couple approaching 30 - Portfolio Check In

I think you two are doing really well!

I would take some of her 30% cash and pay off the student loans completely.

I would look into backdoor Roth IRAs for both of you. Check the wiki for more info.
by tashnewbie
Thu Apr 29, 2021 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Home affordability and self-employment- 370k house?
Replies: 24
Views: 1494

Re: Home affordability and self-employment- 370k house?

I definitely wouldn't sell any Roth IRA money to fund the DP/closing costs/cash reserves. If you need to do that, in your situation, I think that means you can't afford the house. At least not yet. Only you can decide if you'd be comfortable with the $20k (minus any cap gains you have to pay) from t...
by tashnewbie
Thu Apr 22, 2021 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: Negotiating substantial pay raise with leverage
Replies: 5
Views: 1042

Re: Negotiating substantial pay raise with leverage

I agree with user immediately above me. Your thread title says you have leverage, presumably because you perceive yourself to be at least temporarily irreplaceable. In my opinion, the better leverage would be to go out in the market and see what other job offers you can get. I don’t know that I’d us...
by tashnewbie
Thu Apr 22, 2021 2:16 pm
Forum: Personal Investments
Topic: Where to park EF/down payment money
Replies: 2
Views: 310

Re: Where to park EF/down payment money

A lot of high yield savings accounts pay 0.5% right now, which is not measurably different than your 0.35-0.45%. Check your local credit unions for rewards checking accounts. You may have to jump through a few hoops, so you'll have to decide if the juice is worth the squeeze for you. One of my local...
by tashnewbie
Thu Apr 22, 2021 2:10 pm
Forum: Personal Investments
Topic: How to change my portfolio?
Replies: 1
Views: 181

Re: How to change my portfolio?

Welcome to the forum. It'd be helpful if you posted using the format here: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=6212. You can edit your original post using pencil icon in top right of your post. Having everything in one place will help others review your information. You're off t...
by tashnewbie
Tue Apr 20, 2021 4:34 pm
Forum: Personal Investments
Topic: worth contributing to t-IRA after maxing 401k?
Replies: 7
Views: 636

Re: worth contributing to t-IRA after maxing 401k?

Is your MAGI too high to contribute directly to Roth IRAs? If it's not, then definitely do annual Roth IRA contributions for each of you. If it is, then others have provided your available options: try moving the pretax portion of the TIRAs into workplace plans, then proceeding with regular annual b...
by tashnewbie
Tue Apr 20, 2021 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: How Long Would You Stay in a Boring Government Job?
Replies: 110
Views: 6915

Re: How Long Would You Stay in a Boring Government Job?

As I have alluded to in another exchange in this thread, this just isn’t the case in government work. All of the complicated litigation gets referred to outside counsel. You are left with going through public records requests, researching silly issues, or going through labor negotiations where you ...
by tashnewbie
Tue Apr 20, 2021 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: How Long Would You Stay in a Boring Government Job?
Replies: 110
Views: 6915

Re: How Long Would You Stay in a Boring Government Job?

We would do ACA or go on my wife’s health insurance, neither of which are great. But I’ve always said I will refuse to let benefits dictate my career decisions. Honestly I would just keep the private practice going as is, maybe with a little more work. We spend $75k a year and if my practice made $...
by tashnewbie
Tue Apr 20, 2021 11:27 am
Forum: Personal Finance (Not Investing)
Topic: How Long Would You Stay in a Boring Government Job?
Replies: 110
Views: 6915

Re: How Long Would You Stay in a Boring Government Job?

I agree with another user that it doesn't make sense to leave the gov't job before you completely pay off the student loans. Sounds like you plan to do that by the end of this year, if/when the 0% interest period ends. I checked your prior posts, and it looks like at least some of the cash you have ...
by tashnewbie
Mon Apr 19, 2021 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Promotion and Salary Negotiations
Replies: 23
Views: 3001

Re: Promotion and Salary Negotiations

Sounds like you need to decide if even a substantial raise is personally worth the extra time/travel requirements.

How much extra time/travel would be required?

If you decide the raise is worth it, then I agree with user above regarding strategy.
by tashnewbie
Fri Apr 16, 2021 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2957

Re: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)

Do retail tax programs actually ask for recharacterization info to make the adjustment? Input requested. I started completing HR Block's free web version software. HRB asks for the amount that was recharacterized for 2020 (either from Roth to TIRA or vice versa) in 2020 and 2021. It also asks for t...
by tashnewbie
Fri Apr 16, 2021 10:44 am
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2957

Re: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)

I noticed some references to determining gains through 12/31/2020. This is entirely unnecessary because the actual amount transferred in the recharacterization is the amount by which the year end line 6 is increased. The earnings transferred are calculated from the date of the contributed Roth amou...
by tashnewbie
Thu Apr 15, 2021 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2957

Re: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)

Do retail tax programs actually ask for recharacterization info to make the adjustment? Input requested. I started completing HR Block's free web version software. HRB asks for the amount that was recharacterized for 2020 (either from Roth to TIRA or vice versa) in 2020 and 2021. It also asks for t...
by tashnewbie
Thu Apr 15, 2021 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Need 2020 Form 8606 (Recharacterization) Help
Replies: 5
Views: 255

Re: Need 2020 Form 8606 (Recharacterization) Help

According to Publication 590-A (emphasis added): If you recharacterize your contribution, you must do all three of the following. Include in the transfer any net income allocable to the contribution. If there was a loss, the net income you must transfer may be a negative amount. Report the recharac...
by tashnewbie
Thu Apr 15, 2021 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: Need 2020 Form 8606 (Recharacterization) Help
Replies: 5
Views: 255

Re: Need 2020 Form 8606 (Recharacterization) Help

Interestingly, I called Vanguard and asked for the TIRA balance as of 12/31/20. The rep told me that the value was 0. He said the recharacterization amount is recoded so that the contribution is for 2020, but the contribution date for the recharacterized amount is not the same as the original contri...
by tashnewbie
Thu Apr 15, 2021 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Need 2020 Form 8606 (Recharacterization) Help
Replies: 5
Views: 255

Re: Need 2020 Form 8606 (Recharacterization) Help

FiveK wrote: Thu Apr 15, 2021 1:00 pm Looks correct. :)
Thanks!! The Personal Finance toolbox form 8606 tab gives me the same results.
by tashnewbie
Thu Apr 15, 2021 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Need 2020 Form 8606 (Recharacterization) Help
Replies: 5
Views: 255

Need 2020 Form 8606 (Recharacterization) Help

I need to file a 2020 Form 8606 and want to ensure I correctly file it. Details: In 2020, I made a $3600 2020 non-deductible TIRA contribution and converted it to Roth IRA in 2020. I also made a $2400 2020 direct Roth IRA contribution in 2020 (did this before I realized my MAGI would probably be in ...
by tashnewbie
Thu Apr 15, 2021 9:44 am
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2957

Re: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)

I wonder if anyone knows the answer to the question user @cas presented (which, I think is the OP's fundamental question). I'm in a similar situation and want to ensure I correctly file my 2020 Form 8606. I made 2020 non-deductible TIRA contributions and converted them in 2020. I also made a partial...
by tashnewbie
Wed Apr 14, 2021 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2957

Re: Moron of the year award goes to me: need help with rechar/pro rata Roth stuff

Edited: I'm confused about the whole situation, so I'm not confident that my answer is correct, so I'm deleting it. The one thing that remains good advice is to just use the backdoor Roth method in 2021, assuming you don't have any pretax TIRA balance. Then you won't have to deal with any of this co...
by tashnewbie
Wed Apr 14, 2021 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Post House Purchase Finances Check In
Replies: 19
Views: 1647

Re: Post House Purchase Finances Check In

How stable is the commission income? Have you been making ~$400k for a while or expect it to continue for a while? Do you do backdoor Roth IRA contributions for both of you? I'd definitely do that in advance of taxable investing, assuming you don't have any pretax IRAs that would complicate the back...
by tashnewbie
Tue Apr 13, 2021 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Sell investments for house down payment ?
Replies: 12
Views: 1114

Re: Sell investments for house down payment ?

How much is in the UTMA?

What house price range would be his target?

What are his federal and state tax brackets?

Does he have other assets that could be used for the DP?

Does he plan to live in San Diego long-term?