Search found 1517 matches

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: 2756

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: 2756

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: 2756

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: 248

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: 248

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: 248

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: 248

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: 2756

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: 2756

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: 1613

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: 9
Views: 661

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?
by tashnewbie
Tue Apr 13, 2021 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Any happy lawyers out there?
Replies: 133
Views: 11786

Re: Any happy lawyers out there?

The catch is that I don't particularly want to be a lawyer. You answered your own question. If you don't want to practice law, don't go to law school. I'm a fairly "happy" lawyer. I'm an in-house counsel, and I have great hours, great colleagues, the work is decently interesting, and I'm ...
by tashnewbie
Mon Apr 12, 2021 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 Roth Conversion 8606 Question
Replies: 10
Views: 423

Re: 2020 Roth Conversion 8606 Question

You don't need to file an amended 2020 tax return because the non-deductible TIRA contribution doesn't affect your tax liability. BUT, you will need to file Form 8606. Check the instructions to Form 8606 to see the situations when you need to file Form 8606. One of those is when you make a non-deduc...
by tashnewbie
Mon Apr 12, 2021 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: BrioDirect - 0.60% Money Market Account - Are they reliable?
Replies: 3
Views: 373

Re: BrioDirect - 0.60% Money Market Account - Are they reliable?

Why don't you go with one of the big players, like Ally Bank (0.50%)? Is the extra tenth of a percent per year really worth going with another bank for which you have to ask "are they reliable"? Just for context, if you have $100K, that extra tenth of percent would only net you an extra $...
by tashnewbie
Mon Apr 12, 2021 12:00 pm
Forum: Personal Investments
Topic: Tax Loss Harvest with VTSAX and VTIAX
Replies: 5
Views: 322

Re: Tax Loss Harvest with VTSAX and VTIAX

This list of potential TLH partners from user @Duckie might be helpful for you: viewtopic.php?p=5863931#p5863931
by tashnewbie
Mon Apr 12, 2021 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Still in Finance Kindergarden
Replies: 12
Views: 1432

Re: Still in Finance Kindergarden

I would probably opt to invest the money you plan to put in your credit union account each month for future mortgage payments in equities in a taxable brokerage account. Then when you have enough to make big lump sum payments, possibly even paying it off completely, you can decide what to do with t...
by tashnewbie
Sun Apr 11, 2021 7:17 pm
Forum: Personal Investments
Topic: Invest in After-Tax Brokerage Account or Take Student Loan?
Replies: 14
Views: 604

Re: Invest in After-Tax Brokerage Account or Take Student Loan?

If you take the loan, where is the money coming from that you’d invest in a taxable brokerage account? From your EF or regular cash flow? Are kids going to college? How will that be funded? Thank you for your reply! Our average monthly expenses are around $4.8k right now and our ER fund is at $31.2...
by tashnewbie
Sun Apr 11, 2021 6:27 pm
Forum: Personal Investments
Topic: Adding a bond index fund to taxable to replace HYS, and the rebalancing after
Replies: 10
Views: 923

Re: Adding a bond index fund to taxable to replace HYS, and the rebalancing after

$180k seems like a lot of cash for a single person with no debt and seemingly pretty ironclad job security (even if you own a home outright). Is a portion of that earmarked for short or mid-term spending (house down payment, car, etc)? I’d figure out how much you really need as an emergency fund, th...
by tashnewbie
Sun Apr 11, 2021 6:08 pm
Forum: Personal Investments
Topic: Invest in After-Tax Brokerage Account or Take Student Loan?
Replies: 14
Views: 604

Re: Invest in After-Tax Brokerage Account or Take Student Loan?

If you take the loan, where is the money coming from that you’d invest in a taxable brokerage account? From your EF or regular cash flow?


Are kids going to college? How will that be funded?
by tashnewbie
Sun Apr 11, 2021 3:28 pm
Forum: Personal Investments
Topic: Taking over in-law's retirement accounts, advice on strategy
Replies: 12
Views: 1660

Re: Taking over in-law's retirement accounts, advice on strategy

My main comment is that you should probably not be involved with their finances, even if they want you to be. I’d want to get them to a place where they can handle their own affairs or get them connected with an advisory service like Vanguard PAS or Vanguard DAS. You’re familiar with the relational ...
by tashnewbie
Sun Apr 11, 2021 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: First time homebuying in this environment...
Replies: 33
Views: 2984

Re: First time homebuying in this environment...

There’s no way I’d forgo the inspection contingency (I’m also a first time homebuyer and for various personal reasons, I’m going to wait until next year to think about restarting my house search). If you really need/want extra space, rent a bigger place. I know that’s easier said than done in some a...
by tashnewbie
Sun Apr 11, 2021 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Still in Finance Kindergarden
Replies: 12
Views: 1432

Re: Still in Finance Kindergarden

Welcome to the forum. You may call yourself a simpleton, but you’re doing very well, on your own, in my opinion! Well done!! If your Modified Adjusted Gross Income (MAGI) was >$196k in 2020, you had to use the backdoor Roth to get money into a Roth IRA. See the link posted by user above. For most pe...
by tashnewbie
Sun Apr 11, 2021 9:33 am
Forum: Personal Investments
Topic: Financial Check-Up - Job Flexibility?
Replies: 4
Views: 532

Re: Financial Check-Up - Job Flexibility?

You’d have to evaluate your spending (looks like you spend ~$100k/year), to see what salary you’d be happy with/could live with, if you still want to maintain your current saving rate and spending. Then you can explore other options and decide whether you think it’d be worth going somewhere else. Yo...
by tashnewbie
Sun Apr 11, 2021 9:19 am
Forum: Personal Investments
Topic: Portfolio update/re-balance, 33 yo female
Replies: 13
Views: 1663

Re: Portfolio update/re-balance, 33 yo female

To avoid inadvertent wash sales if you decide to tax loss harvest the taxable accounts, don’t use the same (or “substantially identical” per IRS) funds in taxable and IRAs. There’s no consensus about whether 401ks are considered in the wash sale rules too, but some people do. I’d use a S&P 500 i...
by tashnewbie
Sat Apr 10, 2021 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Theory: The Only Four Situations Justifying Debt
Replies: 103
Views: 7038

Re: Theory: The Only Four Situations Justifying Debt

I’m having a hard time seeing how #3 is relevant in practice in general. If someone is otherwise able to max tax-advantaged accounts, then I don’t see why they’d need to take out a loan to do so. Even if they could afford to max them, sometimes they may not have sufficient time to do so. For example...
by tashnewbie
Fri Apr 09, 2021 11:56 am
Forum: Personal Investments
Topic: Job after lay-off: Which strategy to follow?
Replies: 16
Views: 2831

Re: Job after lay-off: Which strategy to follow?

Hi, Thank you for your suggestion! I’ve already included existing funds that I own, with ticker symbols and expense ratios, from both Vanguard, and Fidelity, in my original post. You did, but you did not include ALL of the options available in those accounts. You don't have to list everything, but ...
by tashnewbie
Fri Apr 09, 2021 9:50 am
Forum: Personal Finance (Not Investing)
Topic: 401k highly compensated employee issue
Replies: 4
Views: 772

Re: 401k highly compensated employee issue

Yep, it's something you'll probably have to deal with until you leave this employer (or the plan is qualified as a safe harbor plan again). The 401k has to pass non-discrimination testing each year. There are at least 2 components to the testing, comparing HCEs and NHCEs: average deferral percentage...
by tashnewbie
Fri Apr 09, 2021 9:34 am
Forum: Personal Investments
Topic: Job after lay-off: Which strategy to follow?
Replies: 16
Views: 2831

Re: Job after lay-off: Which strategy to follow?

Congrats on new job and baby. What are all the fund options in your old 401ks at Vanguard and Fidelity? Include fund name, ticker symbol, and expense ratio in the original post (use pencil icon to edit). Depending on those options, I might keep one of the old 401ks for access to a better bond/fixed ...
by tashnewbie
Thu Apr 08, 2021 3:09 pm
Forum: Personal Consumer Issues
Topic: walking shoes with wide toes?
Replies: 48
Views: 2937

Re: walking shoes with wide toes?

I'll add my recommendation for Altra. They were a great beginner hiking shoe for me, but they held up to weekly hikes in the Appalachian Trail region of Virginia. Love the wide toebox. The zero drop heel may take some acclimation.
by tashnewbie
Thu Apr 08, 2021 12:15 pm
Forum: Personal Investments
Topic: pay off 165k business property loan?
Replies: 16
Views: 1406

Re: pay off 165k business property loan?

Is the business property co-owned with another person(s)?
by tashnewbie
Thu Apr 08, 2021 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Issue with reporting backdoor roth using the Credit Karma tax website
Replies: 5
Views: 368

Re: Issue with reporting backdoor roth using the Credit Karma tax website

Upon doing some further research it appears that you can send in form 8606 separate from your return and as long as there is no refund or taxes owed you don't have to amend your return so I'm leaning towards just doing that rather than spending money on Turbotax just to ensure it's included. Or may...
by tashnewbie
Thu Apr 08, 2021 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Issue with reporting backdoor roth using the Credit Karma tax website
Replies: 5
Views: 368

Re: Issue with reporting backdoor roth using the Credit Karma tax website

I think your understanding of when Form 8606 is needed is correct, and CKT's is wrong. My understanding is that you need to file Form 8606 in any year that you make a non-deductible TIRA contribution (it tracks your basis) and in any year in which you make a Roth conversion. You should file a 2020 F...
by tashnewbie
Thu Apr 08, 2021 9:29 am
Forum: Personal Investments
Topic: What to do with $500k which may be needed at any time
Replies: 6
Views: 1146

Re: What to do with $500k which may be needed at any time

euler wrote: Thu Apr 08, 2021 1:26 am I thought about splitting it 50/50 between two HYS accounts.
That's what I'd do. You can get at least 0.50% on them nowadays.
by tashnewbie
Thu Apr 08, 2021 9:13 am
Forum: Personal Investments
Topic: Portfolio Review & Advice Ahead of First Child
Replies: 6
Views: 584

Re: Portfolio Review & Advice Ahead of First Child

It probably doesn't matter much right now because yields are low, but I wouldn't want to use VBTLX in your tax brackets in a taxable account. I would probably stick all of my desired bonds in the TSPs. This actually raises something I've never fully understood. If one of the benefits of having dive...
by tashnewbie
Wed Apr 07, 2021 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: Stacked vs Unstacked UM/UIM Auto Insurance
Replies: 9
Views: 633

Re: Stacked vs Unstacked UM/UIM Auto Insurance

If you only have one car on your policy, then stacking is not an option for you, but if you have multiple vehicles, stacking can be one of the perks of multi-car insurance. So yes? If I only have one vehicle, buy unstacked. Correct? Have you confirmed with the insurer that you can even buy a stacke...
by tashnewbie
Wed Apr 07, 2021 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: 401k " to do" when leaving job
Replies: 6
Views: 1141

Re: 401k " to do" when leaving job

You could probably increase your deferral percentage so that you get more employer match. You’d have to check your plan/with HR to see how high you can make it. Also you’ll want to confirm how the match works so that you can maximize it to the extent possible before you leave. I’ve heard Vanguard so...
by tashnewbie
Wed Apr 07, 2021 5:06 pm
Forum: Personal Investments
Topic: Family with 4 little humans: chances of retiring/financial independence
Replies: 70
Views: 7093

Re: Family with 4 little humans: chances of retiring/financial independence

As others above have said, I definitely think it's doable. You can make small tweaks, such as only using stock in Roth IRAs and not using a blended fund in taxable. I don't know if any of that will matter much, and if using the TDF and LS fund allows you to avoid potential behavioral pitfalls or und...
by tashnewbie
Wed Apr 07, 2021 4:54 pm
Forum: Personal Investments
Topic: Looking for Portfolio advice
Replies: 2
Views: 258

Re: Looking for Portfolio advice

Debt: $130k On Townhome at 30 YRS at 4.75%. Equity about $420k Current total portfolio: $380K Single Stocks Single Stocks: 40 % Visa 25 % Apple 8 % TSLA 27 % Misc New annual Contributions: 401k - My Contribution - 14k / Company Contribution: 13k Questions: 1. I feel like my investments are all over...
by tashnewbie
Wed Apr 07, 2021 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Staying at a company after giving notice? (counter-offer)
Replies: 58
Views: 5842

Re: Staying at a company after giving notice? (counter-offer)

Also, FYI for the future, I think the better move in your situation would've been to negotiate a higher salary with the $81k job (I would've wanted at least $90k, but you could've countered higher). Then you put in your notice with your current job and leave.
by tashnewbie
Wed Apr 07, 2021 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Staying at a company after giving notice? (counter-offer)
Replies: 58
Views: 5842

Re: Staying at a company after giving notice? (counter-offer)

After thinking it over a bit more --- hmm part of the current places "counter" is an annual bonus (so have to stay a full year). Yeah, I think that bolded part would make my decision for me. Would it be guaranteed if the company laid you off after 11 months? Would it be recurring, or just...
by tashnewbie
Tue Apr 06, 2021 3:35 pm
Forum: Personal Investments
Topic: Does my investing plan make sense?
Replies: 4
Views: 743

Re: Does my investing plan make sense?

Yeah, I think you'll be fine too, because your savings rate is really high. Will you be eligible for a pension? Is it a government or non-government 457b? Your kids will be set up really well. If you don't plan to tax loss harvest in the future, it doesn't matter. But if you do, I wouldn't use ident...
by tashnewbie
Tue Apr 06, 2021 1:01 pm
Forum: Personal Investments
Topic: Portfolio Review & Advice Ahead of First Child
Replies: 6
Views: 584

Re: Portfolio Review & Advice Ahead of First Child

Looks very good overall. In order to avoid inadvertent wash sales, I wouldn't use the same fund in both taxable and Roth IRAs. You could use something like VFIAX (S&P 500 index fund) in the Roth IRAs. It probably doesn't matter much right now because yields are low, but I wouldn't want to use VB...
by tashnewbie
Tue Apr 06, 2021 12:46 pm
Forum: Personal Investments
Topic: Help with 401k Allocation and Selection
Replies: 8
Views: 608

Re: Help with 401k Allocation and Selection

My total contribution this year is going to be $3,680 to 401K and $3,000 towards Roth IRA. My salary is $92,000. Typing this out it seems to make a lot more sense to contribute all 4% to the traditional 401k. 4% if my full company match. Does that make sense? I aim to pay off the remaining private ...
by tashnewbie
Tue Apr 06, 2021 9:57 am
Forum: Personal Investments
Topic: Help with 401k Allocation and Selection
Replies: 8
Views: 608

Re: Help with 401k Allocation and Selection

Agree with user above about which funds to use and traditional 401k instead of Roth 401k. How much in total contributions are you able to make each year? Are you doing 4% to the 401k and also a Roth IRA/TIRA (max is $6k)? Depending on where you are in the 24% bracket, I'd aim to max the traditional ...
by tashnewbie
Tue Apr 06, 2021 9:50 am
Forum: Personal Investments
Topic: 43yo Newbie Investor
Replies: 19
Views: 2681

Re: 43yo Newbie Investor

Do you have a S&P 500 index fund in your 401k? It’s sort of odd that you’d have two large cap growth funds but no 500. >> My 401k has only one: FXAIX. >> In my 401k, I have chosen VIGIX, given higher growth (than S&P500) + low ER (0.04% vs. 0.02%, compared to FXAIX). >> Have moved 100% out ...
by tashnewbie
Mon Apr 05, 2021 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Your recommended banks for High Yield Savings & CDs
Replies: 46
Views: 4725

Re: Your recommended banks for High Yield Savings & CDs

Try using a credit union to find a "high"-yield savings account. Banks have to pay outside shareholders and corporate income taxes. Credit unions pay no corporate income tax and have no outside shareholders. If they are doing well, the money gets distributed back to members in the form of...
by tashnewbie
Mon Apr 05, 2021 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: Another Mortgage payoff question
Replies: 20
Views: 1313

Re: Another Mortgage payoff question

Thank you all for responses. When it comes to 401k I don't make as much as a lot of people on here, I make around 70-85k/year depending on amount of bonus and OT. I find it a tough pill to swallow to put 25% plus or minus of gross into 401k right off the top. I get that it saves taxes now, but I wi...
by tashnewbie
Mon Apr 05, 2021 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Another Mortgage payoff question
Replies: 20
Views: 1313

Re: Another Mortgage payoff question

I agree with KlangFool. I’d max traditional 401k and Roth IRA before putting any extra on the mortgage. The Roth IRA won’t save you any taxes now, but it’s a very valuable investing tool (tax free withdrawals if you follow the rules). Make $12k Roth IRA contribution, $6k for 2020 by May 17 and the o...
by tashnewbie
Mon Apr 05, 2021 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: Adding GF to work benefits
Replies: 24
Views: 2044

Re: Adding GF to work benefits

Will she be eligible for COBRA? Would she be eligible for the American Rescue Plan Act 100% COBRA subsidy?
by tashnewbie
Mon Apr 05, 2021 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: Stretched for Retirement, wondering about some current “needs”
Replies: 9
Views: 1406

Re: Stretched for Retirement, wondering about some current “needs”

So you're giving $21,600/year, which is >10% of your gross income? That's commendable. I don't know if you have a set target for giving or what. I know you say it's "non negotiable." Is it all non-negotiable? If you really want this generator, it seems like it'd be easy enough to pause th...