Search found 4614 matches

by Katietsu
Sun Apr 11, 2021 12:01 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question
Replies: 1
Views: 171

Re: Tax Question

Yes, you understand correctly. (Exception if you are law enforcement in which case up to $3000 can be excluded.)
by Katietsu
Sat Apr 10, 2021 11:14 pm
Forum: Personal Consumer Issues
Topic: Comfortable Men's Flip Flops?
Replies: 9
Views: 575

Re: Comfortable Men's Flip Flops?

I know how you feel. I had a pair I purchased for $20 at Sam’s Club that was incredibly comfortable. Looked for a couple of years to find a replacement pair. I eventually went with Olukai after trying them on at REI. I think I ended up with Ohana but I am not sure. Both men’s and women’s are availab...
by Katietsu
Sat Apr 10, 2021 7:58 pm
Forum: Personal Investments
Topic: Can I have a employer Traditional 401K and a Roth IRA simultaneously and contribute to both in the same year
Replies: 9
Views: 868

Re: Can I have a employer Traditional 401K and a Roth IRA simultaneously and contribute to both in the same year

Hi Friends, I am 42 years old and I plan to invest the maximum allowed in my Employer provided 401K. My spouse is 36 and a home maker and we invest maximum allowed 6K in her traditional IRA. We deduct the 401K contribution and my wife's IRA contribution while filing our taxes as expected. I plan to...
by Katietsu
Sat Apr 10, 2021 7:20 pm
Forum: Personal Investments
Topic: Analysis paralysis about International in Taxable Account
Replies: 21
Views: 1072

Re: Analysis paralysis about International in Taxable Account

I just use the same % of international in tax deferred as I do in taxable. I do not need to worry about which is better which year. When tax laws or my income change, I will not worry about about which location is better. If this many responses on BH are suggesting that you are overthinking it, that...
by Katietsu
Sat Apr 10, 2021 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: 529-scholarship-distribution-tax-change owner?
Replies: 4
Views: 256

Re: 529-scholarship-distribution-tax-change owner?

The 529 withdrawal should always be in the same calendar year as the expense is paid. The 1099-Q will be issued in the student’s name if the distribution is sent to either the school directly or to the student directly. The kiddie tax does apply to the earnings for any 529 dollars not used for quali...
by Katietsu
Sat Apr 10, 2021 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Laid off advice
Replies: 31
Views: 2361

Re: Laid off advice

We're in Pennsylvania. Check out the Affordable Care Act. ACA plans are total trash. The best choice was $1.5k a month in premiums with an $18,000 annual deductible. What a joke. This is probably not true. The problem is that the plans are presented with no subsidies,cost sharing, and without addre...
by Katietsu
Sat Apr 10, 2021 10:00 am
Forum: Personal Investments
Topic: Analysis paralysis about International in Taxable Account
Replies: 21
Views: 1072

Re: Analysis paralysis about International in Taxable Account

I have about the same amount of international in taxable and in tax deferred. The difference is small. And the best placement will probably change over your investing time horizon.
by Katietsu
Fri Apr 09, 2021 11:55 pm
Forum: Personal Investments
Topic: HELP - How to Allocate $5M in retirement funds
Replies: 18
Views: 2811

Re: HELP - How to Allocate $5M in retirement funds

The exemption for the estate tax is scheduled to go down in 2025. Check to see if an estate tax return was filed for her spouse to allow her to take advantage of Portability.
by Katietsu
Fri Apr 09, 2021 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: IRS disallowed my claim
Replies: 10
Views: 2408

Re: IRS disallowed my claim

The IRS has multiple ways to notify them of an address change. https://www.irs.gov/faqs/irs-procedures/address-changes/address-changes Under current conditions with the IRS so far behind in opening mail and answering phones, this might not be useful information right now. But, hopefully, the IRS wil...
by Katietsu
Fri Apr 09, 2021 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Tax implication of transferring Mutural Funds from a joint account under my SSN to a joint acct under my mom's SSN
Replies: 3
Views: 381

Re: Tax implication of transferring Mutural Funds from a joint account under my SSN to a joint acct under my mom's SSN

I understand that most people report the income on the return associated with the social security number used for reporting that income to the IRS. But, as Gill said, that is not actually the way it is supposed to be done. It is based on ownership. Who put the money into the account? Is there intend...
by Katietsu
Fri Apr 09, 2021 9:59 am
Forum: Personal Finance (Not Investing)
Topic: CPA Saying I Have Excess HSA Contribution
Replies: 31
Views: 1935

Re: CPA Saying I Have Excess HSA Contribution

I do have the forms. Both 8889's have the boxes checked for Family coverage which is correct. My Form 8889 shows: Line 2: $250 Line 3: $7,100 Line 5: $7,100 Line 6: $3,550 Line 8: $3,550 Line 12: $3,550 Line 13: $250 Her Form 8889 shows: Line 3: $7,100 Line 5: $7,100 Line 6: $3,550 Line 8: $3,550 L...
by Katietsu
Fri Apr 09, 2021 9:31 am
Forum: Personal Investments
Topic: Paycheck: full benefits deducted for partial period?
Replies: 5
Views: 495

Re: Paycheck: full benefits deducted for partial period?

If your benefits started on 4/1 you will start paying the going per-paycheck rate on the paycheck that includes 4/1. Health insurance is monthly and not daily pro-rated. If you are on a 26 check cycle, you may pay 1/24 (skipping the 3rd check in 3 check months) or 1/26 of the annual cost per payche...
by Katietsu
Fri Apr 09, 2021 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Disclaiming a portion of an inheritance
Replies: 16
Views: 1190

Re: Disclaiming a portion of an inheritance

You want very good legal advice. You want to make sure that if person A disclaims, the inheritance will go to A’s kids not to persons B and C. I would not rely on Person A just “knowing”. It is legal to disclaim just parts of an inheritance. It is not legal to direct where the disclaimed property go...
by Katietsu
Fri Apr 09, 2021 9:18 am
Forum: Personal Finance (Not Investing)
Topic: CPA Saying I Have Excess HSA Contribution
Replies: 31
Views: 1935

Re: CPA Saying I Have Excess HSA Contribution

Then he tells me he thinks the problem is with my wife's W2 because it doesn't break out the employee vs employer contribution in box 12. But after reading the instructions for box 12, code W, there is no breakout and the W2 is correct. "He thinks"? You're paying him to know. And as other...
by Katietsu
Fri Apr 09, 2021 8:56 am
Forum: Personal Finance (Not Investing)
Topic: IRS 2019 tax return not yet processed - Weird??
Replies: 13
Views: 822

Re: IRS 2019 tax return not yet processed - Weird??

I mailed an amended 2018 return a year ago. In October I called and after a 90 minute wait, was told it was received and had been in process; I should expect it to be resolved and my new refund paid by November. I called yesterday and the system hung up on me after saying they were overwhelmed with...
by Katietsu
Fri Apr 09, 2021 8:04 am
Forum: Personal Finance (Not Investing)
Topic: CPA Saying I Have Excess HSA Contribution
Replies: 31
Views: 1935

Re: CPA Saying I Have Excess HSA Contribution

The CPA has entered the information into the software and is just going with what the software says. I would do not consider it an unforgivable mistake to assume the software default is correct. I do consider it unacceptable that when you explained the problem and the solution, he did not research t...
by Katietsu
Thu Apr 08, 2021 11:55 am
Forum: Forum Issues and Administration
Topic: Question about discussion of a proposed law or regulation
Replies: 14
Views: 767

Re: Question about discussion of a proposed law or regulation

I think the only thing we can talk about is how to reduce estate and gift tax liability in general. Definitely not anything related to things that are not yet law. Remember that pundits have been predicting for years various changes to tax law (usually increased marginal rates) that have not come t...
by Katietsu
Thu Apr 08, 2021 10:46 am
Forum: Personal Consumer Issues
Topic: Shoe Choice for a Walker
Replies: 33
Views: 2609

Re: Shoe Choice for a Walker

I expect the tread of my hiking/running/backpacking shoes to last only about 500 miles. My Garmin watch said I did more than 600 miles in the past 6 months on my Altra Lone Peak 4.5 shoes. Others report that the padding of the midsoles (under the insoles) compresses with use and silently basically ...
by Katietsu
Thu Apr 08, 2021 10:07 am
Forum: Personal Investments
Topic: Large roth conversion -tax hit timing/strategies
Replies: 10
Views: 1355

Re: Large roth conversion -tax hit timing/strategies

1) In your situation, the safe harbor rules are likely to be your best option. 2) For someone who can not benefit from the safe harbor rules, then you should consult the 2210. You have two options to avoid a penalty. Make the minimum payments equally over the four quarters or make the payments in th...
by Katietsu
Thu Apr 08, 2021 9:54 am
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary & Estate Question
Replies: 18
Views: 1142

Re: IRA Beneficiary & Estate Question

I will give a simpler example. There is an estate with only a savings account in it. The savings account had $20,000 of interest in 2020. There is only one beneficiary to the estate. The estate had no expenses in 2020. That is one heck of a savings account. At .05% that would be a $4 million accoun...
by Katietsu
Thu Apr 08, 2021 9:52 am
Forum: Personal Investments
Topic: Family with 4 little humans: chances of retiring/financial independence
Replies: 70
Views: 7011

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

Forget about all the detailed projections that you do not like anyway. It sounds like you have found an excellent balance between current spending and saving for the future. Stick with it and reassess as necessary. Enjoy the family.
by Katietsu
Wed Apr 07, 2021 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Help calculating federal income tax withholding for disability benefits
Replies: 8
Views: 308

Re: Help calculating federal income tax withholding for disability benefits

I strongly recommend using TaxCaster for someone like you. I like the smartphone app but you can also use it in a web browser. Here is the link https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ Put in your information like marital status and birthdate. Put the W-2 amount and dividend amou...
by Katietsu
Wed Apr 07, 2021 10:50 am
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary & Estate Question
Replies: 18
Views: 1142

Re: IRA Beneficiary & Estate Question

Am I reading incorrectly that any amount over $12,500 is taxed (in an estate) as 39.6%? The IRA has about 500k in it. The three beneficiaries most definitely do not have personal income tax rates anywhere near 39.6%. You're not digesting fully what bsteiner and AlanS have told you. Distributions fr...
by Katietsu
Wed Apr 07, 2021 8:31 am
Forum: Investing - Theory, News & General
Topic: How much do you spend annually in retirement?
Replies: 112
Views: 10234

Re: How much do you spend annually in retirement?

We're retired, late 60s / early 70s, in a small town in the South, with a paid-off house. Last year we spent a total of about $53K, of which: $3K food (no eating out because of Covid) This is remarkable. Even the USDA “thrifty plan” adds up to over $4500 a year for a married couple age 51-70. What ...
by Katietsu
Wed Apr 07, 2021 8:16 am
Forum: Personal Consumer Issues
Topic: The $2000-$4000 Car :) This made me wealthy so jump on board
Replies: 223
Views: 15202

Re: The $2000-$4000 Car :) This made me wealthy so jump on board

I am fascinated by the average age of cars in places like Texas. In my world, a Toyota driven for 15,000 miles a year as a daily driver in all weather gets taken out by corrosion well before it can get to 200k or 300k miles.
by Katietsu
Wed Apr 07, 2021 8:06 am
Forum: Investing - Theory, News & General
Topic: How to reallocate without selling?
Replies: 19
Views: 1951

Re: How to reallocate without selling?

-You picked a tilt towards small cap value. There are still many who think a small cap value tilt is a good choice. Before changing it, I would research the topic. You do not want to move out of a category, have it be the best performer for a year, then decide to move back into it. -As others have s...
by Katietsu
Wed Apr 07, 2021 6:07 am
Forum: Personal Investments
Topic: Large roth conversion -tax hit timing/strategies
Replies: 10
Views: 1355

Re: Large roth conversion -tax hit timing/strategies

Read up on the safe harbors rules for paying your taxes. This would be your best option for delaying a tax payment without incurring a penalty. Your assumption about the amount due for the 4th quarter estimated tax payment when converting in December is wrong. Get a Form 2210. Assume your hypothetic...
by Katietsu
Mon Apr 05, 2021 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.
Replies: 11
Views: 595

Re: Tax software (Tax-Act) keeps track of prior Roth contributions, conversions, earnings?! New to me.

For the life of me, I can't figure out who to model a pre-60 Roth withdrawal correctly. I suspect it's because i'm not using the appropriate code on the 1099-R. I'm off to research how a custodian might report a (for example) $50,000 Roth withdrawal for my age (taxable amount not determined? What c...
by Katietsu
Mon Apr 05, 2021 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Jobhunting after Covid-19 quit
Replies: 35
Views: 4418

Re: Jobhunting after Covid-19 quit

I would go further than just overthinking it. The only way that unemployment from a part time retail job for a recent grad during the year of Covid would negatively influence me is if the applicant gave the impression that it might matter. In other words, literally millions of college student lost o...
by Katietsu
Sun Apr 04, 2021 3:37 pm
Forum: Investing - Theory, News & General
Topic: Is Cash Trash now?
Replies: 51
Views: 4563

Re: Is Cash Trash now?

I can't tell you how many people I know will keep 100k + in the bank for prolong periods of time without realizing they're getting ripped off. What would you do with your 100k that you want to have around in case you have an unexpected need? I guess some people are optimistic and never expect life ...
by Katietsu
Sat Apr 03, 2021 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Career advice for high schooler with HFA & difficulty with math
Replies: 63
Views: 5587

Re: Career advice for high schooler with HFA & difficulty with math

Avoid social interactions may be too broad. For instance, she may be fine interacting with a person while focussed on a particle task, eg upgrading a computer. But, she may hate general small talk or interacting with groups.
by Katietsu
Sat Apr 03, 2021 9:26 am
Forum: Personal Investments
Topic: Advice on what to do with a "windfall" at age 55
Replies: 19
Views: 3387

Re: Advice on what to do with a "windfall" at age 55

I am concerned for you. -$100,000 a year with $3000 per month in expenses. Yet, no significant retirement savings at age 55. -Buying and selling individual stocks though feeling that you are an investor novice. -Did your financial issues from 10 years ago come with a large debt that you have been pa...
by Katietsu
Sat Apr 03, 2021 8:56 am
Forum: Personal Finance (Not Investing)
Topic: interest owed on underpayment and disability waiver
Replies: 6
Views: 482

Re: interest owed on underpayment and disability waiver

First of all, where are you coming up with $1000 in fees? The underpayment penalty would be more like $100 if paid by May 17. Second, you have another post that said the TaxAct estimated your penalty at $44. So, again, why are you concerned that the fees will be large? A CPA told me because I owed ...
by Katietsu
Sat Apr 03, 2021 8:42 am
Forum: Personal Consumer Issues
Topic: Would you give money to close friends to live in same neighborhood?
Replies: 45
Views: 2941

Re: Would you give money to close friends to live in same neighborhood?

I think it is a perfectly acceptable use of $15,000. As long as you can give with no strings and no judgement on their future spending. Relationships need not be soured by gifts. I can give as many positive examples of family and friend gift giving as there have been negative examples here. My conce...
by Katietsu
Sat Apr 03, 2021 3:05 am
Forum: Personal Finance (Not Investing)
Topic: Why do I owe so much in Taxes?
Replies: 55
Views: 6727

Re: Why do I owe so much in Taxes?

So, yes, they are withholding 22% on the additional income. Thank you, but I'm not sure I understand. They are also withholding ~22% on the non-supplemental income. 12/15/20 withholding/gross 1684/8073= 21% 12/31/20 6345/29173= 21.7% Even if 22% was withheld from the entire 275k (which I don't thin...
by Katietsu
Sat Apr 03, 2021 2:06 am
Forum: Personal Finance (Not Investing)
Topic: interest owed on underpayment and disability waiver
Replies: 6
Views: 482

Re: interest owed on underpayment and disability waiver

First of all, where are you coming up with $1000 in fees? The underpayment penalty would be more like $100 if paid by May 17. Second, you have another post that said the TaxAct estimated your penalty at $44. So, again, why are you concerned that the fees will be large? Underpayment penalties are ver...
by Katietsu
Fri Apr 02, 2021 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: Snowbirds - mail and bills
Replies: 42
Views: 4242

Re: Snowbirds - mail and bills

I have been the person left behind. The snowbird had most bills on autopay. They just manually went online to pay a couple others. I took the mail from the mailbox into their house. Threw out the stuff that was clearly junk. Put most of the rest in a box to be there upon their return. If they saw th...
by Katietsu
Fri Apr 02, 2021 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: Underpayment penalty - is TaxAct's amount reliable?
Replies: 3
Views: 314

Re: Underpayment penalty - is TaxAct's amount reliable?

Look at Form 2210 Part 1. You will see that the required annual payment shown on line 9 is the smaller of line 5 or line 8. Line 8 is either 100% or 110% of your 2019 tax liability, depending on your AGI. So, if you have an unexpected increase in income one time, your tax underpayment penalty is lik...
by Katietsu
Fri Apr 02, 2021 9:55 am
Forum: Personal Investments
Topic: What Are You Doing Given Record Stock Market Highs and What Is Your Situation?
Replies: 120
Views: 12447

Re: What Are You Doing Given Record Stock Market Highs and What Is Your Situation?

I also buy individual stocks and I can tell you anecdotally SBUX (Stabucks) is trading at 20% above its Jan 2020 price but this doesn't factor in: i) people are spending less and ii) most of their stores are not open. Same holds for DIS, CAT and most fortune 500 companies. This gets me a bit nervou...
by Katietsu
Thu Apr 01, 2021 5:15 pm
Forum: Personal Consumer Issues
Topic: Laser Printer: Buy a New One?
Replies: 53
Views: 3639

Re: Laser Printer: Buy a New One?

For many years I've had an HP LaserJet 1020 printer. Any thoughts on a replacement printer which hopefully won't develop paper-feed issues after a few years of light use? A few years? It's probably about 10-15 years old, right? And it was probably about $100 when new. You've gotten your money's wor...
by Katietsu
Thu Apr 01, 2021 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up Your Retirement Paycheck?
Replies: 14
Views: 1923

Re: Setting up Your Retirement Paycheck?

The first broad concern is maintaining asset allocation between stocks/bonds/cash. The second broad concern is minimizing taxes over one’s lifetime. How this is accomplished is going to be very different for each person. For instance, if you have all your money in a traditional 401k invested in a ta...
by Katietsu
Thu Apr 01, 2021 4:01 pm
Forum: Personal Investments
Topic: Start Pre-tax or stick with Roth 1 year from retirement?
Replies: 7
Views: 369

Re: Start Pre-tax or stick with Roth 1 year from retirement?

Read about the back door Roth. This would be the best use of the 2020 dollars. You make a non deductible traditional IRA contribution and immediately convert to a Roth. The end result is exactly the same as the Roth contribution you have been doing since you currently have no traditional IRA. Person...
by Katietsu
Thu Apr 01, 2021 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: What to do when it's the IRS's fault? S-Corp Election
Replies: 6
Views: 423

Re: What to do when it's the IRS's fault? S-Corp Election

scorp is pass through, it doesn't owe taxes. Your estimated taxes would be paid using your ss #. Makes sense that estimated taxes should be in her SSN, regardless. As an employee of the S corp, income tax withholding on a salary would be in wife’s SSN. As the owner of the S corp or as a sole propri...
by Katietsu
Thu Apr 01, 2021 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Taxes on Sportsbook/Gambling Winnings
Replies: 27
Views: 1627

Re: Taxes on Sportsbook/Gambling Winnings

You will need to report the entire winnings as income. If you are not a professional gambler or do not benefit from itemizing, you will not be able to take advantage of your losses. Your at risk wager is never relevant if you win. I would track actual losses in case you are able to itemize. At least...
by Katietsu
Wed Mar 31, 2021 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: do the covid-based rules affect when you inherit an IRA?
Replies: 3
Views: 488

Re: do the covid-based rules affect when you inherit an IRA?

This is a question for the experts. But, my guess is that the lack of an RMD for 2020 does not effect the Dec 31, 2020 date to have separate accounts for each beneficiary.
by Katietsu
Wed Mar 31, 2021 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Problems with ACA Plans Purchased on the Exchange?
Replies: 13
Views: 851

Re: Problems with ACA Plans Purchased on the Exchange?

This is not just an off and on the exchange issue. A purple select PPO plan offered by BCBS of State X may have a different network if covered through employer A vs through employer B.
by Katietsu
Wed Mar 31, 2021 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Voluntary state withholding from qualified pension?
Replies: 14
Views: 829

Re: Voluntary state withholding from qualified pension?

Hope you can work out the pension withholding to meet your automatic payment approach. One alternative is to just handle it all in the spring, assuming you file taxes during the regular tax season. Make a single estimated tax payment by April 15 at the time you are filing your taxes for the previou...
by Katietsu
Wed Mar 31, 2021 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Federal E-File rejected due to Duplicate 1099-R
Replies: 31
Views: 2468

Re: Federal E-File rejected due to Duplicate 1099-R

Same error. I gave up and mailed them. (Debated changing numbers, but didn't go that path.) Worst part is I already paid $25 for state e-file... and you can't get the refunded now. So my option is to eat that $25 loss, print and mail (which is a LOT of print-outs)... or figure out a way to make it ...
by Katietsu
Wed Mar 31, 2021 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Voluntary state withholding from qualified pension?
Replies: 14
Views: 829

Re: Voluntary state withholding from qualified pension?

Hope you can work out the pension withholding to meet your automatic payment approach. One alternative is to just handle it all in the spring, assuming you file taxes during the regular tax season. Make a single estimated tax payment by April 15 at the time you are filing your taxes for the previou...
by Katietsu
Wed Mar 31, 2021 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Voluntary state withholding from qualified pension?
Replies: 14
Views: 829

Re: Voluntary state withholding from qualified pension?

-Withholding state income tax from a pension can be a convenient way to approach state tax obligations. -In the event that your pension does not have a method to specify a flat monthly amount, you can always adjust your allowances/dependents to produce the correct withholding. _____________ However...