Search found 43922 matches

by retiredjg
Mon May 17, 2021 9:11 am
Forum: Personal Investments
Topic: Should I rebalance during a market correction?
Replies: 23
Views: 1793

Re: Should I rebalance during a market correction?

Looking at your 2020 taxes, what is on line 9 (total income), line11 (AGI) and line 15 (taxable income)? Total income $236,359 Adjusted gross income 236,359 Taxable income $184,037 Do realized capital gains raise the total income? Yes, realized capital gains do raise total income, AGI and taxable i...
by retiredjg
Mon May 17, 2021 8:03 am
Forum: Personal Investments
Topic: 403b Pre-tax/After-tax Roth, Megaback door roth etc.
Replies: 4
Views: 293

Re: 403b Pre-tax/After-tax Roth, Megaback door roth etc.

I don't recall seeing this "non-deductible" wording before. However, it appears to be what I called the "after-tax account" above. Find out if this employee non-deductible account can be rolled into Roth 401k (an in-plan Roth rollover) or distributed out to Roth IRA. Either of th...
by retiredjg
Mon May 17, 2021 7:55 am
Forum: Personal Finance (Not Investing)
Topic: [Form 8606 - What do I enter for the post-withholding amount?]
Replies: 9
Views: 447

Re: [Form 8606 - What do I enter for the post-withholding amount?]

Alan S. wrote: Sun May 16, 2021 5:58 pm Assuming an IRA with no basis, just the amount actually converted goes on line 16 and 18 of Form 8606.
I'm not trying to be disagreeable and yes, that is what "net" means...but if this is correct, why did TT put the full amount on my Form 8606 line 16 and 18? :happy
by retiredjg
Mon May 17, 2021 7:50 am
Forum: Personal Finance (Not Investing)
Topic: [Form 8606 - What do I enter for the post-withholding amount?]
Replies: 9
Views: 447

Re: [Form 8606 - What do I enter for the post-withholding amount?]

Assuming an IRA with no basis, just the amount actually converted goes on line 16 and 18 of Form 8606. Yes, just verified this with TurboTax. Do you mean you found it in some TT instructions? You talked to someone who told you this? Someone directed you to something in IRS publications? FWIW, the 8...
by retiredjg
Mon May 17, 2021 7:24 am
Forum: Personal Investments
Topic: Roth conversion amount needed in Retirement?
Replies: 19
Views: 2777

Re: Roth conversion amount needed in Retirement?

Just curious....does i-ORP assume you want to convert all of your tax-deferred assets? Or do you tell it how much you want to get converted?
by retiredjg
Mon May 17, 2021 7:23 am
Forum: Personal Investments
Topic: Roth conversion amount needed in Retirement?
Replies: 19
Views: 2777

Re: Roth conversion amount needed in Retirement?

1. I was waiting to hear what you thought, I've seen statistically how many people you've helped. I try to stay grounded in common sense and it's good to hear a voice of reason. It's easy to get wrapped up in the ORP calcs. Yes, I did transfer a lot to the roll over IRA, knowing that I shouldn't ne...
by retiredjg
Mon May 17, 2021 7:01 am
Forum: Personal Investments
Topic: Should I rebalance during a market correction?
Replies: 23
Views: 1793

Re: Should I rebalance during a market correction?

1. 2020 taxable income was 185k and 2021 taxable income should be close(without cap gains). You seem to have some misunderstandings about how income is taxed. Ordinary income is taxed at 10%, 12%, 22%, 24%, and so on. Long term capital gains (LTCG) and qualified dividends (QD) are taxed at 0%, 15%,...
by retiredjg
Sun May 16, 2021 4:39 pm
Forum: Personal Investments
Topic: 403b Pre-tax/After-tax Roth, Megaback door roth etc.
Replies: 4
Views: 293

Re: 403b Pre-tax/After-tax Roth, Megaback door roth etc.

PS. The wording is awkward because Roth 401k is after-tax. And some plans even use the term after-tax when referring to the designated Roth account in the 401k. Your plan has 3 different accounts that you can put money into - traditional (pre-tax), designated Roth (after-tax or post-tax) and the aft...
by retiredjg
Sun May 16, 2021 4:35 pm
Forum: Personal Investments
Topic: 403b Pre-tax/After-tax Roth, Megaback door roth etc.
Replies: 4
Views: 293

Re: 403b Pre-tax/After-tax Roth, Megaback door roth etc.

1. Can I contribute to the Roth section additional money for this mega roth conversion? Whatever you contribute above the $19.5k elective deferral will go into the after-tax account. This is not the same as the Roth 401k account which shares the $19.5k limit with your pre-tax contributions. Your pl...
by retiredjg
Sun May 16, 2021 3:30 pm
Forum: Personal Investments
Topic: Should I rebalance during a market correction?
Replies: 23
Views: 1793

Re: Should I rebalance during a market correction?

The recommended format can be found in the link at the bottom of this message.
by retiredjg
Sun May 16, 2021 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: [Form 8606 - What do I enter for the post-withholding amount?]
Replies: 9
Views: 447

Re: [Form 8606 - What do I enter for the post-withholding amount?]

Most people here prefer NOT to withhold taxes if they have other sources to pay from. That is because more gets into Roth IRA that way. They either increase withholding on other income (pension, SS, etc.) or pay an estimated tax payment for the quarter in which they did the conversion. I hope you ar...
by retiredjg
Sun May 16, 2021 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: [Form 8606 - What do I enter for the post-withholding amount?]
Replies: 9
Views: 447

Re: Roth conversion amount needed in Retirement?

SoCal....I'm going to change my answer above. I recall this being discussed before and the answer was "the net amount" - after withholding. I was surprised because prior to that I had always put in the total amount. However, I just looked at my Form 8606 that TurboTax prepared for me this ...
by retiredjg
Sun May 16, 2021 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: [Form 8606 - What do I enter for the post-withholding amount?]
Replies: 9
Views: 447

Re: Roth conversion amount needed in Retirement?

Naive related question: In the language of Form 8606 Part II line 16, is the "net amount you converted from traditional, SEP, and SIMPLE IRAs to Roth IRAs", the post-withholding amount going into the Roth (not the higher amount coming out of the tIRA)? https://www.irs.gov/pub/irs-pdf/f860...
by retiredjg
Sun May 16, 2021 1:11 pm
Forum: Personal Investments
Topic: Bad 401k Plan - What to Do?
Replies: 9
Views: 664

Re: Bad 401k Plan - What to Do?

If you are 33, you cannot take out your elective deferrals (the $19.5k you are allowed to contribute) until you separate from employment. I suppose a hardship withdrawal would be an exception. You might be able to roll out the match or any after-tax employee contributions (not the same as Roth contr...
by retiredjg
Sun May 16, 2021 11:23 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - need to completely exit stock?
Replies: 10
Views: 1255

Re: Tax loss harvesting - need to completely exit stock?

If I don’t need to completely exit out a stick to harvest losses, why do people recommend keeping a specific MF or ETF (ie, VTI or VOO) only in one account and another specific fund in another account exclusively? It sounds I can still harvest losses if say VTI is both in my personal and Roth or 40...
by retiredjg
Sun May 16, 2021 11:17 am
Forum: Personal Investments
Topic: Should I rebalance during a market correction?
Replies: 23
Views: 1793

Re: Should I rebalance during a market correction?

Welcome to the forum. :happy Much of this is your personal preference about how fast you want your portfolio to change into what you now want. Unless you are in a very low tax bracket, there will be capital gains taxes. How much depends on how much gains you have and which capital gains bracket you ...
by retiredjg
Sun May 16, 2021 10:42 am
Forum: Personal Investments
Topic: Portfolio Review - Semiretired and Heading into 70s
Replies: 2
Views: 343

Re: Portfolio Review - Semiretired and Heading into 70s

I think 52% stocks is way too much for a 68 year old person who has always been risk averse and has limited (or no) experience with investing in stocks. I can't imagine that she would be comfortable with that.
by retiredjg
Sun May 16, 2021 9:41 am
Forum: Personal Investments
Topic: Roth conversion amount needed in Retirement?
Replies: 19
Views: 2777

Re: Roth conversion amount needed in Retirement?

1. You probably should not convert any tIRA to Roth before age 59.5 unless you have money in savings or from income to pay the taxes. If you pay the taxes out of the tiRA, that would be an early withdrawal and that amount would be subject to a 10% penalty. You didn't mention any large savings. You c...
by retiredjg
Sun May 16, 2021 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Use a Roth IRA for long term savings?
Replies: 5
Views: 745

Re: Use a Roth IRA for long term savings?

Welcome to the forum. :happy And congrats on being almost out of debt! I think you are asking the wrong question. You are asking about where to hold the money rather than what to invest the money in. Money you want to use in 5 years should probably not be invested in stocks at all. If there is a mar...
by retiredjg
Sun May 16, 2021 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth conversion and confusion
Replies: 10
Views: 759

Re: Backdoor Roth conversion and confusion

3. Once CU TIRAs are converted ROTH IRA, wait a week for confirmation from CU and then ask Fidelity to convert TIRAs for 2020 and 2021. I am assuming this can be done after Monday Tax due date. Thank you. Just reconfirming, Do I need to conver my TIRAS for 2020 on or before May 17,2021? Or can I do...
by retiredjg
Sat May 15, 2021 3:22 pm
Forum: Personal Investments
Topic: Too Conservative???
Replies: 13
Views: 2468

Re: Too Conservative???

You are 64 and nearing retirement. I didn't see an age for your husband, but he is already retired. I do not believe that 60% stocks and 40% bonds is in any way "too conservative" at this point. Once you are both retired and once is it clear that you are investing entirely for your heirs, ...
by retiredjg
Sat May 15, 2021 2:46 pm
Forum: Personal Investments
Topic: Please rate my portfolio and provide help on any needed changes
Replies: 9
Views: 866

Re: Please rate my portfolio and provide help on any needed changes

What are some tax efficient bond funds for a taxable account? I heard it’s not good to hold bonds in taxable? I live in California if that changes my options. Many of us prefer to hold bonds in tax-deferred accounts. But California and a couple of other high tax states are a bit of an exception. Pe...
by retiredjg
Sat May 15, 2021 10:47 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth conversion and confusion
Replies: 10
Views: 759

Re: Backdoor Roth conversion and confusion

I just talked to CU and they told they may convert it to ROTH but did not confirm yet and I need to check with the IRA processing team Monday. Assuming option #1 works out and CU agrees to change to ROTH IRA, following are the steps I can think of. Please confirm if this is right. 1. Request CU to ...
by retiredjg
Sat May 15, 2021 10:43 am
Forum: Personal Investments
Topic: Wish to retire in 7 yrs. and request financial advice
Replies: 34
Views: 4963

Re: Wish to retire in 7 yrs. and request financial advice

What about the question I posed earlier about limiting contributions for the next 6 years(prior to my retirement) to VEXAX only in my joint taxable account and adding it to my TIRA account(and discontinuing contributions to STAR)? VEXAX is well diversified(comparable # of stocks as VTSAX), has had ...
by retiredjg
Sat May 15, 2021 10:37 am
Forum: Personal Investments
Topic: Should I do 403(b) and 457(b) pre or post tax?
Replies: 6
Views: 656

Re: Should I do 403(b) and 457(b) pre or post tax?

Several years ago, I would have suggested that you fill both of these accounts with tax-deferred dollars. I no longer believe that is a good idea unless you have some reasonable belief you will retire early. It is possible to have too much saved in tax-deferred accounts. This can cause varying degre...
by retiredjg
Sat May 15, 2021 10:08 am
Forum: Personal Investments
Topic: Please rate my portfolio and provide help on any needed changes
Replies: 9
Views: 866

Re: Please rate my portfolio and provide help on any needed changes

This is my current portfolio with Vanguard. Am I doing this right? What changes should I make if any? It sounds like your portfolio may include some accounts that are not at Vanguard. Like maybe a 401k or 403b? If you have other accounts, or a spouse with other accounts, they need to be considered ...
by retiredjg
Sat May 15, 2021 9:57 am
Forum: Personal Investments
Topic: Please be kind ....Newbie with a question
Replies: 25
Views: 2950

Re: Please be kind ....Newbie with a question

Do you agree with the (broad) following scenario? IF the market were to tank, the Treasury bonds price per share would rise, and then I could sell at a possible gain and buy stocks when they were lower? (If so, then I suppose it would be worth holding onto them.) If you mean the stock market tankin...
by retiredjg
Fri May 14, 2021 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth conversion and confusion
Replies: 10
Views: 759

Re: Backdoor Roth conversion and confusion

You only have 3 choices that I can think of. 1. Convert the old IRA to Roth and pay tax on that $5k. And convert the two new contributions to Roth. 2. Don't convert the old IRA and do convert the new contributions - and pro-rate the conversion. I don't suggest this. 3. Transfer the old IRA to a 401k...
by retiredjg
Fri May 14, 2021 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth conversion and confusion
Replies: 10
Views: 759

Re: Backdoor Roth conversion and confusion

Welcome to the forum :happy It depends on whether you have or will have any "basis" (already taxed money) in any IRA before you do the Roth conversion. If your 2020 and 2021 contributions are deductible, the other IRA at the credit union will not interfere with your Roth conversion. Howeve...
by retiredjg
Fri May 14, 2021 2:16 pm
Forum: Personal Investments
Topic: IRA with post-tax contributions cost basis.
Replies: 14
Views: 937

Re: IRA with post-tax contributions cost basis.

Vanguard will report to you and the IRS the total amount distributed. They will say it is all taxable. They will also then check the box that says "taxable amount undetermined". You will enter the 1099 by the ordinary steps. TT should ask you if you have been tracking non-deductible contri...
by retiredjg
Fri May 14, 2021 9:41 am
Forum: Personal Investments
Topic: IRA with post-tax contributions cost basis.
Replies: 14
Views: 937

Re: IRA with post-tax contributions cost basis.

This should be pretty easy then. A certain amount of your IRA is pre-tax. A certain amount is post-tax. When you take money out, some will be pre-tax and some post-tax...meaning it will be pro-rated between the pre and post tax amounts. This is calculated on an annual basis using form 8606, not for ...
by retiredjg
Fri May 14, 2021 6:53 am
Forum: Personal Finance (Not Investing)
Topic: Age + amount to no longer max out tax-advantage?
Replies: 21
Views: 2024

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

I think there is a balance in each situation. I don't think there is an age+ amount that works for a variety of situations. With 2 pensions in your future, you should probably be looking at more Roth savings than tax-deferred. Also, depending on how much you save and how much you spend in retirement...
by retiredjg
Fri May 14, 2021 6:40 am
Forum: Personal Investments
Topic: IRA (Roth) funding deadline issues
Replies: 8
Views: 591

Re: IRA (Roth) funding deadline issues

Most IRA custodians use the post mark rule for acceptance of contributions, and VG should be able to confirm that by phone. If they do, a mailed contribution to the Roth account should be accepted even if it takes a week to get there. VG would just check the envelope to see that it was postmarked b...
by retiredjg
Thu May 13, 2021 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Borrow From a Roth IRA to Buy a House
Replies: 12
Views: 1284

Re: Borrow From a Roth IRA to Buy a House

Moving the account has nothing to do with this, so forget about that part. You are allowed to make one IRA to IRA 60 day rollover in 365 days. (That is what this will be if you take money out and put it back.) If you have not done any other IRA to IRA 60 day rollovers in the last year, you would be ...
by retiredjg
Thu May 13, 2021 4:18 pm
Forum: Personal Investments
Topic: Repay TSP loan or invest in taxable acct. for flexibility?
Replies: 8
Views: 894

Re: Repay TSP loan or invest in taxable acct. for flexibility?

I would pay off the loan.

In my opinion, it is not wise to invest borrowed money hoping to make a little extra something. Sometimes it backfires and there is no good reason to take that risk. There is plenty of risk in ordinary vanilla investing. Unnecessary risk is....unnecessary.
by retiredjg
Thu May 13, 2021 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Borrow From a Roth IRA to Buy a House
Replies: 12
Views: 1284

Re: Borrow From a Roth IRA to Buy a House

Question on this same subject: I rolled my Roth account from NW Mutual to Vanguard 3 years ago. I know one of the rules is "a withdrawal counts as qualified if the account is at least five years old". This is not correct although a lot of people seem to have read various versions of that ...
by retiredjg
Thu May 13, 2021 3:44 pm
Forum: Personal Investments
Topic: Account Rollover from 457b to TSP? Roth TPS vs TSP
Replies: 1
Views: 150

Re: Account Rollover from 457b to TSP? Roth TPS vs TSP

If your roll your traditional 457 into IRA or TSP you will lose the ability to withdraw this money prior to age 59.5 without penalty. That ability to withdraw without penalty is valuable in many situations. I would not give it up lightly. I think that traditional TSP will accept traditional 457. I d...
by retiredjg
Thu May 13, 2021 2:31 pm
Forum: Personal Investments
Topic: after-tax contributions to Roth 401K
Replies: 4
Views: 503

Re: after-tax contributions to Roth 401K

If we start doing this, the extra money we put in will not be exclusively for retirement. We will want to feel we can use it for a future house downpayment or home remodeling or college for our kids. This is allowed, right? As long as we only withdraw contributions (with careful recordkeeping), and...
by retiredjg
Thu May 13, 2021 1:47 pm
Forum: Personal Investments
Topic: IRA (Roth) funding deadline issues
Replies: 8
Views: 591

Re: IRA (Roth) funding deadline issues

I would not think that requesting a transfer on the last day will do it. I think the money has to be in there on May 17. My guess is before close of business, but I suppose it could be before opening on the 18th.
by retiredjg
Thu May 13, 2021 1:29 pm
Forum: Personal Investments
Topic: Expense ratio of John Hancock Stable Value Guaranteed Income Fund
Replies: 4
Views: 472

Re: Expense ratio of John Hancock Stable Value Guaranteed Income Fund

I have not heard of such a fund not having an expense ratio, but it is a moot point. The return that is guaranteed is after the expense ratio is taken out. If the return is good, it does not matter what the expense ratio is. If the return is bad, it still does not matter what the expense ratio is. I...
by retiredjg
Thu May 13, 2021 1:03 pm
Forum: Personal Investments
Topic: IRA with post-tax contributions cost basis.
Replies: 14
Views: 937

Re: IRA with post-tax contributions cost basis.

I too think it is past the time to "fix this". As far as I can see, you will need to pro-rate every withdrawal you take. However, once you do it the first time, it should be relatively easy each year after that. You might want to keep some notes from year to year. You said you had records ...
by retiredjg
Thu May 13, 2021 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth, no 1099R
Replies: 4
Views: 239

Re: Backdoor Roth, no 1099R

Agree with above. 2020 taxes must have Form 8606 to document the 2020 non-deductible contribution. If your taxes are already filed, that form can be sent to the IRS alone (be sure to sign it). Roth conversions are taxed in the year they occur. The 2021 Form 8606 should include the 2021 contribution ...
by retiredjg
Thu May 13, 2021 9:00 am
Forum: Personal Investments
Topic: Portfolio review: 49 y.o. former lurker, $1+MM, a few questions
Replies: 5
Views: 1579

Re: Portfolio review: 49 y.o. former lurker, $1+MM, a few questions

1. Since our money is mostly in pre-tax accounts, we are considering (a) directing his future 401(k) contributions to his company’s Roth 401(k) option, and (b) doing Roth conversions with his rollover IRA up to the top of the 12% bracket. Does that make sense? It makes sense to be contributing to R...
by retiredjg
Thu May 13, 2021 5:56 am
Forum: Personal Finance (Not Investing)
Topic: Housing Decision. Help appreciated.
Replies: 37
Views: 2916

Re: Housing Decision. Help appreciated.

Wow. You got everything you wanted!
by retiredjg
Wed May 12, 2021 4:43 pm
Forum: Personal Consumer Issues
Topic: Does it make financial sense to buy a "beater" for a long distance commute?
Replies: 90
Views: 5115

Re: Does it make financial sense to buy a "beater" for a long distance commute?

You will be spending 8 hours a week in this car, at least some of it at the end of a long day. It should be comfortable and reliable. I would not get a beater for this. In fact, depending on what I had, I might consider an upgrade.
by retiredjg
Wed May 12, 2021 4:40 pm
Forum: Personal Investments
Topic: Recommendations for custodian of new taxable account?
Replies: 11
Views: 727

Re: Recommendations for custodian of new taxable account?

Is the local Fidelity office or Schwab office closer to you? On the rare occasions when a brick and mortar office might be handy, I'd choose that way.

Or maybe if you prefer mutual funds to ETFs, I'd go with Fido for more choices.
by retiredjg
Wed May 12, 2021 4:08 pm
Forum: Investing - Theory, News & General
Topic: not contributing to IRA, even if you have the money available
Replies: 17
Views: 1186

Re: not contributing to IRA, even if you have the money available

tibbitts wrote: Wed May 12, 2021 11:22 am As I've posted in other threads, Bogleheads are insanely over-zealous about....
...a lot of things. :D
by retiredjg
Wed May 12, 2021 4:06 pm
Forum: Personal Investments
Topic: Extreme Roth IRA contribution penalty
Replies: 20
Views: 2052

Re: Extreme Roth IRA contribution penalty

With the money invested in a CD for some of this time, the 6% excise tax each year is likely to have been more than the CD earned for at least some of these years. Then it was moved to a balanced fund (asset allocation unknown), it still may not have made more than the 6% tax each year. It is possib...
by retiredjg
Wed May 12, 2021 3:43 pm
Forum: Personal Investments
Topic: Mega Backdoor (paid tax at withdrawal/rollover):Did not receive 1099-R
Replies: 9
Views: 572

Re: Mega Backdoor (paid tax at withdrawal/rollover):Did not receive 1099-R

Alan S. wrote: Wed May 12, 2021 1:23 pm 2) If direct rollover to Roth IRA, no withholding
No withholding is required, yes.

But is withholding possible if one wanted to? Seems like if there are any earnings, the withholding might have to be pro-rated with the earnings and that would just be a mess....especially if under 59.5.
by retiredjg
Wed May 12, 2021 12:45 pm
Forum: Personal Investments
Topic: Mega Backdoor (paid tax at withdrawal/rollover):Did not receive 1099-R
Replies: 9
Views: 572

Re: Mega Backdoor (paid tax at withdrawal/rollover):Did not receive 1099-R

Don't know why you have no 1099. When you ask Vanguard, tell us what they say.

I'm wondering about taking the taxes out of the rollover/conversion, especially if your wife is under 59.5. Something does not feel Ok about that to me.