Search found 44827 matches

by retiredjg
Mon Aug 02, 2021 1:23 pm
Forum: Personal Investments
Topic: Roth/Traditional 401k Options To Reduce Administrative Fees
Replies: 16
Views: 1094

Re: Roth/Traditional 401k Options To Reduce Administrative Fees

Requesting ideas on actions we can take now to smartly get the money to a new account (maybe a new investment firm?) with lower fees, but also be smart from a tax perspective. There is little to nothing that can be done while your partner is working for that employer. At the very most, the employer...
by retiredjg
Mon Aug 02, 2021 1:01 pm
Forum: Personal Investments
Topic: Complex analysis- High income.. convert IRA to Roth, or Rollover to Employer 401k?
Replies: 15
Views: 1182

Re: Complex analysis- High income.. convert IRA to Roth, or Rollover to Employer 401k?

Welcome to the forum. :happy a) rollover my IRA (the Husband IRA) into my employer's 401k plan, thereby freeing up my IRA to allow annual $6k non-deductible contributions and backdoor rollovers into my own Roth IRA? The upside is obvious, that being that I can do the backdoor Roth annually for mysel...
by retiredjg
Mon Aug 02, 2021 12:46 pm
Forum: Personal Investments
Topic: Did I dodge pro-rata with my backdoor Roth?
Replies: 24
Views: 2013

Re: Did I dodge pro-rata with my backdoor Roth?

DiceGames wrote: Sun Aug 01, 2021 10:31 pm The check was made out to the 401k custodian FBO DiceGames. Hopefully that helps?
This makes it a direct rollover. I'm not sure a direct rollover is subject to the 60 day requirement. Alan?
by retiredjg
Mon Aug 02, 2021 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Once retired, how much SHOULD one keep in their Pre-Tax accounts (PTAs)?
Replies: 14
Views: 1118

Re: Once retired, how much SHOULD one keep in their Pre-Tax accounts (PTAs)?

2. If you want to have some untaxed money available for high medical costs of long term care, maybe something like $200k to $500k per person. Hi, could you explain what the benefit is of having a pre-tax balance for medical expenses? I'm actually in the dark about this... If medical expenses are hi...
by retiredjg
Mon Aug 02, 2021 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Once retired, how much SHOULD one keep in their Pre-Tax accounts (PTAs)?
Replies: 14
Views: 1118

Re: Once retired, how much SHOULD one keep in their Pre-Tax accounts (PTAs)?

Personally, I don't like to suggest that someone "should" do this because there might be other factors or preferences involved. I think the suggestion is that it is certainly OK not to convert everything to Roth. One of the possible uses for leaving money in tax deferred accounts is to use...
by retiredjg
Mon Aug 02, 2021 10:44 am
Forum: Personal Investments
Topic: Retiring help with Vanguard 401k rollover to Vanguard IRAs
Replies: 7
Views: 282

Re: Retiring help with Vanguard 401k rollover to Vanguard IRAs

With your accounts all at one place, I doubt the money will be out of the market at all. Since this is something you have no control over, I would not worry about it. Just let them do what they need to do.
by retiredjg
Mon Aug 02, 2021 10:38 am
Forum: Personal Investments
Topic: New Member, portfolio review
Replies: 37
Views: 2576

Re: New Member, portfolio review

What kind of account is it in now? I know it is at Fidelity and I know it is not part of the rollover IRA or the Roth IRA, but you have not said what kind of account it is in. What do you mean by "options"? Financially speaking "options" are a certain thing. Or do you just mean ...
by retiredjg
Mon Aug 02, 2021 10:29 am
Forum: Personal Investments
Topic: Please help rebalancing my Portfolio
Replies: 8
Views: 900

Re: Please help rebalancing my Portfolio

How much do you like using a target fund in your 401k?

How do you plan to put $11k into IRA when the limit is $6k?
by retiredjg
Mon Aug 02, 2021 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Once retired, how much SHOULD one keep in their Pre-Tax accounts (PTAs)?
Replies: 14
Views: 1118

Re: Once retired, how much SHOULD one keep in their Pre-Tax accounts (PTAs)?

How much (in dollars, preferably) do you find useful to keep in there, is the question. I think the answer depends on your goals. 1. If you are just trying to avoid high RMDs, the answer might be $1 million because the RMDs on $1 million should not be too burdensome for many people. This is just an...
by retiredjg
Mon Aug 02, 2021 9:47 am
Forum: Personal Investments
Topic: New Member, portfolio review
Replies: 37
Views: 2576

Re: New Member, portfolio review

I do have a small pension that is in my Fidelity from a previous employer. I think the lump sum amount if I did it now would be just 6k. I've come across lots of info suggesting people to take the lump sum and put it back into the IRA? A pension from a previous employer should have been rolled dire...
by retiredjg
Mon Aug 02, 2021 8:54 am
Forum: Personal Investments
Topic: New Member, portfolio review
Replies: 37
Views: 2576

Re: New Member, portfolio review

I do have a small pension that is in my Fidelity from a previous employer. I think the lump sum amount if I did it now would be just 6k. I've come across lots of info suggesting people to take the lump sum and put it back into the IRA? A pension from a previous employer should have been rolled dire...
by retiredjg
Mon Aug 02, 2021 8:32 am
Forum: Personal Investments
Topic: 401K Roth or tax deferred? - Advice needed
Replies: 5
Views: 507

Re: 401K Roth or tax deferred? - Advice needed

Welcome to the forum. :happy I don't think there is enough information to answer your question very well. Consider posting your information in the format shown in the link at the bottom of this message. Since your question is not about what to invest in, you could leave out what your actual investme...
by retiredjg
Sun Aug 01, 2021 8:17 pm
Forum: Personal Investments
Topic: Taxable account for high-income earners
Replies: 18
Views: 2952

Re: Taxable account for high-income earners

It is also good to understand the potential short-comings of what appear to be two non-governmental 457 plans.
by retiredjg
Sun Aug 01, 2021 8:16 pm
Forum: Personal Investments
Topic: Taxable account for high-income earners
Replies: 18
Views: 2952

Re: Taxable account for high-income earners

For the long term, you are saving way to much in tax-deferred accounts. :shock: Since you are starting somewhat later, you can get away with this for awhile. If you do this for years and years and if you don't retire "early", you could easily end up with a tax bomb on your hands in your l...
by retiredjg
Sun Aug 01, 2021 4:52 pm
Forum: Personal Investments
Topic: Can I max 401k and 457b in the same calendar year?
Replies: 6
Views: 412

Re: Can I max 401k and 457b in the same calendar year?

A 403b and a 401k would share the same $19.5k limit. That is not the case here - a 401k and a 457 have separate $19.5k limits. No problem filling both if you are able. Contributing to a pension does not interfere with any limits. It might mean you want to use more Roth IRA and/or some Roth 457 though.
by retiredjg
Sun Aug 01, 2021 3:56 pm
Forum: Personal Investments
Topic: Starting over
Replies: 22
Views: 1618

Re: Starting over

This like will give you some ideas of how to mix the large, mid, and small US stocks to give something like total stock market. It is not important to be very precise.

https://www.bogleheads.org/wiki/Approxi ... ock_market
by retiredjg
Sun Aug 01, 2021 3:53 pm
Forum: Personal Investments
Topic: Starting over
Replies: 22
Views: 1618

Re: Starting over

So would it be best to decrease the amount I have invested in the Dodge & Cox Income Fund and invest more in the below international options if I want to be more aggressive? American Funds Capital World G/I R6 International MFS International Diversification R4 International Vanguard Total Intl ...
by retiredjg
Sun Aug 01, 2021 2:31 pm
Forum: Personal Investments
Topic: Starting over
Replies: 22
Views: 1618

Re: Starting over

So would it be best to decrease the amount I have invested in the Dodge & Cox Income Fund and invest more in the below international options if I want to be more aggressive? American Funds Capital World G/I R6 International MFS International Diversification R4 International Vanguard Total Intl ...
by retiredjg
Sun Aug 01, 2021 2:05 pm
Forum: Personal Investments
Topic: Backdoor Roth Questions
Replies: 7
Views: 567

Re: Backdoor Roth Questions

Welcome to the forum. :happy In terms of long term wealth, it will not matter what you do. I would not contribute monthly and do a Roth conversion each time. Just too much trouble. The easiest thing is to get/save the $6k, contribute to tIRA and convert the next day (or soonest day possible). It is ...
by retiredjg
Sun Aug 01, 2021 1:49 pm
Forum: Personal Investments
Topic: Starting over
Replies: 22
Views: 1618

Re: Starting over

P.S. Pay off the credit card debt and don't let it build up again.
by retiredjg
Sun Aug 01, 2021 1:35 pm
Forum: Personal Investments
Topic: Rollover IRA to Roth IRA Questions
Replies: 6
Views: 331

Re: Rollover IRA to Roth IRA Questions

A rollover IRA is a traditional IRA. It would have been possible to make contributions to the rollover IRA if he wanted. As long as he never made any non-deductible contributions, it does not matter.
by retiredjg
Sun Aug 01, 2021 1:32 pm
Forum: Personal Investments
Topic: Starting over
Replies: 22
Views: 1618

Re: Starting over

You didn't list the expense ratios of the funds in your 457, but they seem ok. I think you should start using some Roth contributions - either to Roth IRA (you are under the limit) or to Roth 457 (if that is an option in your plan). Or maybe some of each. With an expected pension, you will not need ...
by retiredjg
Sun Aug 01, 2021 1:14 pm
Forum: Personal Investments
Topic: Rollover IRA to Roth IRA Questions
Replies: 6
Views: 331

Re: Rollover IRA to Roth IRA Questions

The question is can he convert money to his Roth IRA from his Rollover IRA. Yes. He can convert as much or as little as he wants from rollover IRA to His Roth IRA. I have read threads on here about the pro rata rule (I don't fully understand it) and know that if he were to convert part of his Rollo...
by retiredjg
Sun Aug 01, 2021 1:05 pm
Forum: Personal Investments
Topic: Taxable account for high-income earners
Replies: 18
Views: 2952

Re: Taxable account for high-income earners

Welcome to the forum. :happy For the long term, you are saving way to much in tax-deferred accounts. :shock: Since you are starting somewhat later, you can get away with this for awhile. If you do this for years and years and if you don't retire "early", you could easily end up with a tax ...
by retiredjg
Sun Aug 01, 2021 11:57 am
Forum: Personal Finance (Not Investing)
Topic: IRMAA Question For New Widow
Replies: 16
Views: 1157

Re: IRMAA Question For New Widow

If family harmony is an issue, I'd liquidate tomorrow and hope for the waiver (which does seem likely).
by retiredjg
Sun Aug 01, 2021 9:39 am
Forum: Investing - Theory, News & General
Topic: How do you define your goals when considering Roth IRA conversion?
Replies: 27
Views: 1795

Re: How do you define your goals when considering Roth IRA conversion?

Free to Choose wrote: Sun Aug 01, 2021 9:18 am I do not want to appear mean while writing short responses. Sorry if it comes across this way. It is not my intention.
Not to worry - I didn't take it that way. :happy
by retiredjg
Sun Aug 01, 2021 9:24 am
Forum: Personal Finance (Not Investing)
Topic: IRMAA Question For New Widow
Replies: 16
Views: 1157

Re: IRMAA Question For New Widow

Without liquidation of the IRA, there will be no IRMAA surcharge in 2023. Liquidating the entire IRA will cause the 1 year increase. However, if the entire IRA is not needed before the end of 2021, she might be able to avoid the IRMAA surcharge. Quick and dirty guestimate - taking less than about $8...
by retiredjg
Sun Aug 01, 2021 8:56 am
Forum: Personal Investments
Topic: Do I understand backdoor Roth?
Replies: 10
Views: 801

Re: Do I understand backdoor Roth?

Not surprising. Most discussions along this line apply to IRAs that contain some after-tax money (non-deductible contributions). That requires pro-rating between pre and post tax amounts if any part of any IRA (except Roth) is converted to Roth. Your situation (all pre-tax IRA) is not discussed that...
by retiredjg
Sun Aug 01, 2021 7:16 am
Forum: Personal Investments
Topic: Do I understand backdoor Roth?
Replies: 10
Views: 801

Re: Do I understand backdoor Roth?

A Roth conversion is not the same thing as the "backdoor Roth". The concept of "backdoor Roth" does not apply to your situation at all. My question is this: is there any way that I can get my already-invested $6k into a Roth? Yes. There are two ways to do this. 1. Ask your custod...
by retiredjg
Sat Jul 31, 2021 5:57 pm
Forum: Personal Investments
Topic: The Best of the Bad Options (Stuck in Voya for 401k)
Replies: 18
Views: 1820

Re: The Best of the Bad Options (Stuck in Voya for 401k)

Good idea, but the original post says the ER of the target date fund is 1.21% :shock: Hard to put lipstick on this pig. This is just a bad plan. After all the recent lawsuits about bad 401k plans, it is hard to believe a law firm would put up with this garbage when decent low cost plans are availabl...
by retiredjg
Sat Jul 31, 2021 5:51 pm
Forum: Investing - Theory, News & General
Topic: How do you define your goals when considering Roth IRA conversion?
Replies: 27
Views: 1795

Re: How do you define your goals when considering Roth IRA conversion?

My goal is to convert as much as I can in the 22% bracket while staying under the first IRMAA limit. My tax-deferred account is not large enough to "need" to do conversions so I don't need to take on any extra costs to get them done. I just give it a little haircut each year so it won't g...
by retiredjg
Sat Jul 31, 2021 5:31 pm
Forum: Personal Investments
Topic: Which of these portfolios is best? (more int'l but higher fees?)
Replies: 6
Views: 579

Re: Which of these portfolios is best? (more int'l but higher fees?)

1) Current portfolio: 401k: 100% VINIX Roth IRA: 100% VTIAX Use this. And maybe add a touch of bonds. :happy This next comment is going to sound rude, but it really isn't. It is just fact. It does not matter what you invest in right now. A beginning portfolio does not grow much based on what it con...
by retiredjg
Sat Jul 31, 2021 4:57 pm
Forum: Investing - Theory, News & General
Topic: Market Timing
Replies: 14
Views: 1073

Re: Market Timing

Seems to me if you have an item that you no longer need and can sell it for a good price, you should sell it. GPU...old Mustang...farmland...it does not matter what it is.

Market timing is about the stock market. This has nothing to do with the stock market.
by retiredjg
Sat Jul 31, 2021 4:34 pm
Forum: Investing - Theory, News & General
Topic: Market Timing
Replies: 14
Views: 1073

Re: Market Timing

What is a GPU? And why are you investing in it?
by retiredjg
Sat Jul 31, 2021 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Your Total Income Tax Deductions When Retired and Playing the 12% Tax Rate Game!
Replies: 35
Views: 2767

Re: Your Total Income Tax Deductions When Retired and Playing the 12% Tax Rate Game!

Once you reach the age of 71.5, you are eligible for QCDs. These are even better than deductions. We use QCDs for all of our charity donations and the standard deduction for everything else. 70 1/2 But it doesn't really generate a deduction until you start RMDs which is generally age 72 for anyone ...
by retiredjg
Sat Jul 31, 2021 2:21 pm
Forum: Personal Investments
Topic: The Best of the Bad Options (Stuck in Voya for 401k)
Replies: 18
Views: 1820

Re: The Best of the Bad Options (Stuck in Voya for 401k)

YOu still need to look at the Voya fixed account. Sounds like it might be a stable value fund. Whatever it is paying is after expenses. It may be better to use that for your bond allocation than putting bonds into Roth IRA.
by retiredjg
Sat Jul 31, 2021 2:15 pm
Forum: Investing - Theory, News & General
Topic: How do you define your goals when considering Roth IRA conversion?
Replies: 27
Views: 1795

Re: How do you define your goals when considering Roth IRA conversion?

My goal is to convert as much as I can in the 22% bracket while staying under the first IRMAA limit. My tax-deferred account is not large enough to "need" to do conversions so I don't need to take on any extra costs to get them done. I just give it a little haircut each year so it won't ge...
by retiredjg
Sat Jul 31, 2021 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Your Total Income Tax Deductions When Retired and Playing the 12% Tax Rate Game!
Replies: 35
Views: 2767

Re: Your Total Income Tax Deductions When Retired and Playing the 12% Tax Rate Game!

Once you reach the age of 71.5, you are eligible for QCDs. These are even better than deductions. We use QCDs for all of our charity donations and the standard deduction for everything else. 70 1/2 But it doesn't really generate a deduction until you start RMDs which is generally age 72 for anyone ...
by retiredjg
Sat Jul 31, 2021 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Your Total Income Tax Deductions When Retired and Playing the 12% Tax Rate Game!
Replies: 35
Views: 2767

Re: Your Total Income Tax Deductions When Retired and Playing the 12% Tax Rate Game!

Standard deduction for me. From what I've read around here, I suspect that applies to a large majority.
by retiredjg
Sat Jul 31, 2021 10:49 am
Forum: Personal Investments
Topic: Roth 403b to Roth IRA within same brokerage
Replies: 4
Views: 265

Re: Roth 403b to Roth IRA within same brokerage

PS. Start keeping up with how every dollar gets into your Roth IRA (from the very beginning). You will need this information if you ever need/want to take money out of Roth IRA before age 59.5.
by retiredjg
Sat Jul 31, 2021 10:18 am
Forum: Personal Investments
Topic: Roth 403b to Roth IRA within same brokerage
Replies: 4
Views: 265

Re: Roth 403b to Roth IRA within same brokerage

I would roll the Roth 403b into Roth IRA. Continue contributing to Roth IRA as much as you can while in indentured servitude. Intra and inter-broker concerns are not particularly relevant. The only thing that affects a future backdoor process is a traditional IRA (including rollover IRA, SEP IRA and...
by retiredjg
Sat Jul 31, 2021 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Does Backdoor Roth Inhibit Megabackdoor Roth?
Replies: 14
Views: 810

Re: Does Backdoor Roth Inhibit Megabackdoor Roth?

This is good news. :happy

As long as you send the entire after-tax account to Roth IRA, you will have no problem with your ordinary backdoor process.

If you do a split distribution and send the earnings to tIRA, you could have a problem. Just don't do it.
by retiredjg
Sat Jul 31, 2021 8:44 am
Forum: Personal Investments
Topic: Where to Park Down Payment?
Replies: 9
Views: 997

Re: Where to Park Down Payment?

High yield savings. CDs would be OK but have to watch FDIC limits. Money market. Very short term bonds if you are willing to risk some of the value going down.
by retiredjg
Sat Jul 31, 2021 7:16 am
Forum: Personal Investments
Topic: Confusion around Non-deductable IRA for non-working spouse
Replies: 16
Views: 1039

Re: Confusion around Non-deductable IRA for non-working spouse

My question is about my spouse who is currently not employed so there is no 401k to roll their rollover IRA into. So a backdoor roth is not available. Is contributing to a non-deductable traditional IRA a benefit here over just putting that money into tax-managed investments in a taxable account? I...
by retiredjg
Fri Jul 30, 2021 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: 401K or IRA withdrawal without penalty
Replies: 3
Views: 354

Re: 401K or IRA withdrawal without penalty

In general, you are not allowed to withdraw your elective deferral contributions to a 401k while working for that employer. An exception which some plans offer is for hardship withdrawals. Not all plans allow hardship withdrawals. Check your plan. One possible hardship withdrawal allowed is downpaym...
by retiredjg
Fri Jul 30, 2021 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: Does Backdoor Roth Inhibit Megabackdoor Roth?
Replies: 14
Views: 810

Re: Does Backdoor Roth Inhibit Megabackdoor Roth?

If you roll the entire after-tax account to Roth IRA, the mega-backdoor will not interfere with the ordinary backdoor. If you roll the after tax account through tIRA into Roth IRA, it could interfere -depending on timing. However, I'm concerned about what kind of tax you have paid when you did the c...
by retiredjg
Fri Jul 30, 2021 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Does Backdoor Roth Inhibit Megabackdoor Roth?
Replies: 14
Views: 810

Re: Does Backdoor Roth Inhibit Megabackdoor Roth?

I roll everything out of the 401K into a TIRA and then over to the Roth IRA after that--so the gains are relatively limited but they're included. Does that answer your question? You should not be rolling anything into tIRA. You should be rolling the entire account directly into Roth IRA. Why have y...
by retiredjg
Fri Jul 30, 2021 6:45 pm
Forum: Personal Investments
Topic: Confessions of a serial ex-trader
Replies: 22
Views: 2900

Re: Confessions of a serial ex-trader

I agree that this might be a solution, any additional fees/expenses coming out makes me hesitant though, perhaps 0.3% is worth the peace of mind. Yes, in a sense, you would be paying for peace of mind. But the cost of the service would almost certainly be less than what you will lose if you continu...
by retiredjg
Fri Jul 30, 2021 5:08 pm
Forum: Personal Investments
Topic: When lump sum in hot market think of TLH as a little downside protection?
Replies: 18
Views: 1741

Re: When lump sum in hot market think of TLH as a little downside protection?

If you use the 500 index as a tax-loss harvest partner for total stock index, you could create wash sales in the other accounts. This is not illegal, but it is something you must watch for and account for on your taxes. Or watch for and avoid. I suggest you use total stock and large cap index as tax...
by retiredjg
Fri Jul 30, 2021 4:39 pm
Forum: Personal Investments
Topic: Inherited Traditional IRA [when are RMDs required?]
Replies: 33
Views: 2263

Re: Inherited Traditional IRA [when are RMDs required?]

Am I to understand that in a case like retiredjg's, theoretically he could just withdraw the money in one swoop, that is, drain it to zero in one withdrawal? I may be running into an inherited traditional IRA soon. I hope not, but it seems so. I think you mean someone else. :D However if you inheri...