Search found 83 matches

by uwbadgers
Wed Mar 17, 2021 7:29 am
Forum: Personal Investments
Topic: tIRA/SEP IRA issue
Replies: 8
Views: 534

Re: tIRA/SEP IRA issue

I ended up calling VG and they had me contribute as "employer" and it worked out fine. I already had made the SEP IRA. So I believe that through my recharacterization/backdoor I am taxed on the earnings I had for the year it was in the ROTH and the new SEP IRA, which I could contribute to ...
by uwbadgers
Tue Mar 16, 2021 8:26 am
Forum: Personal Investments
Topic: tIRA/SEP IRA issue
Replies: 8
Views: 534

tIRA/SEP IRA issue

Hi, I am having trouble contributing to a SEP IRA for 2020 tax year......here is the situation. 2020, contributed to ROTH IRA Jan 1......income too high, so did the following: In early 2021.... Recharacterized ROTH contribution to tIRA Coverted tIRA back to ROTH This was all for the 2020 tax year. -...
by uwbadgers
Sat Jan 09, 2021 9:23 am
Forum: Personal Investments
Topic: Review of Roth IRA to tIRA + 2021 backdoor roth
Replies: 4
Views: 356

Re: Review of Roth IRA to tIRA + 2021 backdoor roth

There will still be the gains from the 2020 recharacterization since I don't see anywhere that the op converted that to roth. So I'm looking to do the conversion, of the recharacterized roth, right now, but with the total now $7,300, which is over the 6k I'd convert, what happens/what do I do with ...
by uwbadgers
Fri Jan 08, 2021 2:37 pm
Forum: Personal Investments
Topic: Review of Roth IRA to tIRA + 2021 backdoor roth
Replies: 4
Views: 356

Review of Roth IRA to tIRA + 2021 backdoor roth

I posted recently (https://www.bogleheads.org/forum/viewtopic.php?f=1&t=334532&p=5701288#p5701288) of how we ended up with a large income increase and are about 100k over ROTH income limits. This is the follow up plan. I *think* I've got things figured out but wanted to lay it out and get so...
by uwbadgers
Fri Jan 01, 2021 11:57 am
Forum: Personal Investments
Topic: 2020 over Roth limit, contributed Jan 1, what now?
Replies: 12
Views: 933

Re: 2020 over Roth limit, contributed Jan 1, what now?

I do NOT have a retirement plan with my work but my wife does......does that mean we do or do not get to deduct on taxes? You wrote that you have a solo 401K. Are you contributing to it? Yes, that is correct, I do have one through my LLC, but not through my W2 job. I created and contributed to it l...
by uwbadgers
Fri Jan 01, 2021 11:51 am
Forum: Personal Investments
Topic: 2020 over Roth limit, contributed Jan 1, what now?
Replies: 12
Views: 933

Re: 2020 over Roth limit, contributed Jan 1, what now?

You'll need to do 2 recharacterizations. https://investor.vanguard.com/ira/ira-recharacterization#:~:text=Your%20contribution%20must%20be%20recharacterized,amended%20return%20at%20that%20time.) And then after that is done you can probably convert the Traditional IRAs to Roth IRAs. If you might be o...
by uwbadgers
Wed Dec 30, 2020 4:33 pm
Forum: Personal Investments
Topic: 2020 over Roth limit, contributed Jan 1, what now?
Replies: 12
Views: 933

2020 over Roth limit, contributed Jan 1, what now?

Overall Question: What do I do with the 12k I put in Roth IRA in 2020 that now we will be over the income limit to contribute? A "good" problem to have but on Jan 1, 2020 we contributed and maxed both of our Roth IRA's (6k each). Now, while somewhat expected as the year went on, but defin...
by uwbadgers
Sat Aug 08, 2020 7:55 am
Forum: Personal Investments
Topic: Improving tax efficiency in retirement accounts
Replies: 20
Views: 1875

Re: Improving tax efficiency in retirement accounts

Thank you all for the replies. Definitely a bit more to it than I thought :) Still learning a lot, that's for sure. A few things. 1. I do NOT have a 401k offered through my W2 job, thus, the solo 401k, but, am limited because I purely don't make a lot through the LLC and, unless I am not understandi...
by uwbadgers
Thu Aug 06, 2020 6:04 pm
Forum: Personal Investments
Topic: Improving tax efficiency in retirement accounts
Replies: 20
Views: 1875

Re: Improving tax efficiency in retirement accounts

Further, why do you believe backdoor Roth contributions will be unavailable in the future? And is there any reason you wouldn't invest more through your Solo 401(k) rather than adding brokerage funds? Seems like you should make use of that space as a pretax or Roth contribution. Thank you for the a...
by uwbadgers
Thu Aug 06, 2020 5:11 pm
Forum: Personal Investments
Topic: Improving tax efficiency in retirement accounts
Replies: 20
Views: 1875

Improving tax efficiency in retirement accounts

Hi all, I am looking to flip our ROTH IRA's into 100% stocks while swapping out some of our brokerage funds to be more bond heavy. My thinking here, and please correct me if I'm wrong on this, is to make our ROTHs gain as much as possible over time = 100% stocks. We will do bonds in accounts that ar...
by uwbadgers
Thu Jul 16, 2020 8:37 am
Forum: Personal Investments
Topic: Windfall/Use solo401k for tax savings?
Replies: 10
Views: 530

Re: Windfall/Use solo401k for tax savings?

Bringing this one back up after some time......I just finished officially opening a Vanguard Solo 401k. I think I am understanding my contribution limits, but please correct if wrong. My main goal here is to put as much pre-tax money into this retirement vessel as possible. - - Projected GROSS incom...
by uwbadgers
Thu Jul 02, 2020 5:45 am
Forum: Personal Investments
Topic: Windfall/Use solo401k for tax savings?
Replies: 10
Views: 530

Re: Windfall/Use solo401k for tax savings?

I didn’t seem to find anything that referred to that.

She has 401k, Roth 401k access, but didn’t see after after tax options listed.
by uwbadgers
Wed Jul 01, 2020 6:42 pm
Forum: Personal Investments
Topic: Windfall/Use solo401k for tax savings?
Replies: 10
Views: 530

Re: Windfall/Use solo401k for tax savings?

I have zero knowledge of what/how that works, besides seeing it around here.

What would I look for in her plan to find out?
by uwbadgers
Wed Jul 01, 2020 5:38 pm
Forum: Personal Investments
Topic: Windfall/Use solo401k for tax savings?
Replies: 10
Views: 530

Re: Windfall/Use solo401k for tax savings?

Thank you for the reply. My net llc income currently, 6 months in, is 8k So 19,600 + 20% of 16k(yearly projection) = 3,200 $22,800? While thinking about things more I wonder if this would also help us meet the income, well, below the limit, for ROTH IRA contributions. I feel we may be close to cut o...
by uwbadgers
Wed Jul 01, 2020 4:55 pm
Forum: Personal Investments
Topic: Windfall/Use solo401k for tax savings?
Replies: 10
Views: 530

Windfall/Use solo401k for tax savings?

We recently sold our rental condo and I cashed a check for 225k......through drive through :) That was the only option obviously these days and made for a fun way to deposit that. My wife and I are now gradually planning where to disperse this money. My main question is would opening and depositing ...
by uwbadgers
Fri Apr 03, 2020 5:33 am
Forum: Personal Consumer Issues
Topic: Should I keep paying fitness center fees while it is closed?
Replies: 114
Views: 6472

Re: Should I keep paying fitness center fees while it is closed?

Thought I'd share my 2 cents as I'm a personal trainer that had my place of work shut down a few weeks back. Now, I'm in a bit different situation as we are a studio fitness center, not massive globogym. All of our sessions are by appointment, either 1 on 1 or group, there is no "gym fee,"...
by uwbadgers
Thu Mar 05, 2020 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: Fun 401k milestone
Replies: 5
Views: 667

Re: Fun 401k milestone

Hope you get the full employer match. I/we will be honest, never actually thought of this or knew it mattered. I just looked up info and it says: “......matching contribution of $1 for every $1 eligible employees contribute during 2020, up to 4% of eligible pay.” “The annual matching contribution i...
by uwbadgers
Thu Mar 05, 2020 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Fun 401k milestone
Replies: 5
Views: 667

Re: Fun 401k milestone

Not many people besides my wife I can share this with. Thanks for listening! Congrats on reaching a milestone. If your spouse is into loan origination business, then it would keep them busy for the next few months. Yes, she’s VERY busy right now. Also we love in Midwest so this is typically when th...
by uwbadgers
Thu Mar 05, 2020 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Fun 401k milestone
Replies: 5
Views: 667

Fun 401k milestone

We’ve been fortunate enough to be able to max 2 Roth IRA and 1 401k for the past 6 years or so (no 401k for my job). But, most years it’s taken most of the year or we did it slowly, typically just due to cash flow balance. This year though we had enough savings from last year that we plugged both RO...
by uwbadgers
Mon Feb 17, 2020 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding Tax Implication of Rental Property sale
Replies: 7
Views: 716

Understanding Tax Implication of Rental Property sale

Hi all, WILL be selling our rental property this year.....so I'm playing around with my 2019 taxes for a little "test" run of what the tax situation will look like after the sale next year. I'll try to include helpful information. Married, file jointly Combined Income: 192k in 2019 Total t...
by uwbadgers
Fri Feb 07, 2020 5:35 pm
Forum: Personal Consumer Issues
Topic: Chromebook upgrade? Laptop?
Replies: 16
Views: 1820

Re: Chromebook upgrade? Laptop?

Thanks again for the advice here. As mentioned, I ended up purchasing the Lenovo Yoga Chromebook c630. I LOVE IT! :) Wish I did this a while ago. The screen size is just what I was hoping (15.6 inch) and the speed is 500x better than my old chromebook.....at least it feels that way. I tested out my ...
by uwbadgers
Wed Feb 05, 2020 6:15 pm
Forum: Personal Consumer Issues
Topic: Chromebook upgrade? Laptop?
Replies: 16
Views: 1820

Re: Chromebook upgrade? Laptop?

Thanks for the help everyone! Been spending the last few hours researching and trying to figure out this out. Decided to go with the Lenova Chromebook C630 Found it on best buy, certified open box excellent condition for $100 off :) So, only $450. There was just no way to upgrade what I wanted/neede...
by uwbadgers
Wed Feb 05, 2020 1:38 pm
Forum: Personal Consumer Issues
Topic: Chromebook upgrade? Laptop?
Replies: 16
Views: 1820

Re: Chromebook upgrade? Laptop?

Ouch, that's a bit more than I want to spend :) I found these 2 as potential options. Would both of these, given their stats, be a pretty solid upgrade for speed of multitasking? https://www.amazon.com/Samsung-Chromebook-Processor-32Gb-Emmc-XE350XBA-K01US/dp/B07XW266D9 Samsung Chromebook 4+ Processo...
by uwbadgers
Wed Feb 05, 2020 10:38 am
Forum: Personal Consumer Issues
Topic: Chromebook upgrade? Laptop?
Replies: 16
Views: 1820

Chromebook upgrade? Laptop?

Hi all, I currently use this model: samsung chromebook xe500c13-k04us Intel Celeron N3060. Intel HD Graphics 400 (Braswell) 4096 MB. ... 11.6 inch 16:9, 1366 x 768 pixel 135 PPI, LED, glossy: no. 16 GB eMMC Flash, 16 GB. ... 1 USB 2.0, 1 USB 3.0 / 3.1 Gen1, 1 HDMI, Audio Connections: 3.5mm, Card Rea...
by uwbadgers
Sat Jan 11, 2020 7:25 am
Forum: Personal Finance (Not Investing)
Topic: What to know? Preparing to sell rental property
Replies: 9
Views: 908

Re: What to know? Preparing to sell rental property

I'm in a somewhat similar position. Although not selling this year probably in 2-3 years. ........ I see that you did a Roth this year for yourself and spouse. I'm wondering if you will be above the Roth IRA limit this year. I was considering doing a traditional IRA in the year we sell. Didn’t even...
by uwbadgers
Fri Jan 10, 2020 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: What to know? Preparing to sell rental property
Replies: 9
Views: 908

Re: What to know? Preparing to sell rental property

So then the 123k is taxed at 15%?

I believe that was the rate I’d fit into for cap gains.

About 18.5k in taxes owed?
by uwbadgers
Fri Jan 10, 2020 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: What to know? Preparing to sell rental property
Replies: 9
Views: 908

What to know? Preparing to sell rental property

We will be selling our rental property this Spring. This is our one and only rental as we "fell" into it about 7 years ago. Just ready to be done with it now as it is a condo and the HOA is working on phasing rentals our so going to get out now and enjoy the cash :) Main questions surround...
by uwbadgers
Sun Oct 27, 2019 7:32 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 2490
Views: 571154

Re: Share your net worth progression

Posted here in this thread about 2 years ago so thought I’d take a closer look at things. 2013---227k Kid 1, bought house 1 2014---302k 2015---411k Kid 2 2016---546k 2017---702k sold house 1 (large profit), bought house 2 2018—790k 2019—838k Big win for us, thanks to some wage increase, is maxing ou...
by uwbadgers
Tue Feb 05, 2019 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: Tax questions for newbie to single member LLC
Replies: 12
Views: 975

Re: Tax questions for newbie to single member LLC

Have you been following any of the QBI threads. Did you double check that TurboTax calculated this correctly? The Section 199A Final Regulations were released less than three weeks ago and they included significant changes to the QBI calculation and QBI deduction calculations. The 1040 Instructions...
by uwbadgers
Tue Feb 05, 2019 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: Tax questions for newbie to single member LLC
Replies: 12
Views: 975

Re: Tax questions for newbie to single member LLC

UPDATE: 2/5/19 I've just completed my taxes for 2018 using Turbotax. My questions originally were about estimated taxes and if I need to pay it. Here is how the year played out: Total Income: $151,142 Taxes Withheld: $14,756 Federal Deductions: $28,369 Federal Credits: $5,200 My single member LLC ma...
by uwbadgers
Fri Jul 06, 2018 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Tax questions for newbie to single member LLC
Replies: 12
Views: 975

Re: Tax questions for newbie to single member LLC

The AGI will only directly be use to determine that your AGI > $150K. To meet the prior year safe harbor, your withholding + estimated taxes will need to be 110% of the "tax shown on your 2017 return". For most people this is Form 1040 line 63 total tax. See the Form 1040 line 79 instruct...
by uwbadgers
Fri Jul 06, 2018 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Tax questions for newbie to single member LLC
Replies: 12
Views: 975

Re: Tax questions for newbie to single member LLC

Thanks for that latest reply.....I *think* I'm understanding...... Does this help? 2017 Taxes AGI 155k Tax Withheld 21k Total Tax Due 17k We had a $4,250 federal refund and $1,600 state refund We both have slightly variable incomes with our W2 jobs, but assuming that AGI remains ~155k and I have my ...
by uwbadgers
Tue Jul 03, 2018 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Tax questions for newbie to single member LLC
Replies: 12
Views: 975

Re: Tax questions for newbie to single member LLC

Thanks for these responses! I understand opening a solo 401k is an optiom and changing withholding and may be a direction to go now. Currently, is there anything WRONG with just keeping the income? Is there set “rules” for estimated taxes, or do they not apply to single member llc since it all goes ...
by uwbadgers
Sun Jul 01, 2018 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Tax questions for newbie to single member LLC
Replies: 12
Views: 975

Tax questions for newbie to single member LLC

[Update/Question in my latest post 2/5/19] Hi all, Here's my basic question: IS there anything I should be aware of/doing right now with an expected ~25k additional income from my single member LLC in 2018? My business has taken off quickly after starting in last October 2017 and right now I'm on pa...
by uwbadgers
Fri Feb 09, 2018 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Sell or Keep Decision help
Replies: 9
Views: 880

Re: Rental Sell or Keep Decision help

" Transaction costs are high to sell or buy real estate. Sure, a 7% annual return isn't amazingly wonderful, but do you really want to pay $13k - $15k in realtor commissions and title work just to offload this - plus $4500 in capital gains and probably $10k or so in depreciation recapture? &quo...
by uwbadgers
Thu Feb 08, 2018 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Sell or Keep Decision help
Replies: 9
Views: 880

Re: Rental Sell or Keep Decision help

Hi all, Thanks for the feedback so far. To answer/follow up on a few things. 1. Yes, the property has just started to appreciate a bit, but it took ~10 years to get back to what it was purchased for in 2007....poor timing :) I would think the area continues to go up as it's in a nice part of town, g...
by uwbadgers
Thu Feb 08, 2018 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Sell or Keep Decision help
Replies: 9
Views: 880

Rental Sell or Keep Decision help

Hi, Looking for some thoughts/feedback/advice on our rental property situation. It's not a "problem" at all but more so trying to determine which decision may be most beneficial long term. I have asked some questions on this before but a few things have changed since then (we moved to a ne...
by uwbadgers
Sat Dec 09, 2017 9:56 am
Forum: Personal Finance (Not Investing)
Topic: End of year Review
Replies: 3
Views: 1011

Re: End of year Review

85/15 is a little light on bonds for my taste. I am near your age and 75/25. But it isn't wrong. If you're over the Roth limit, use the back door. It doesn't seem you have traditional IRAs that would complicate this. I think it's needlessly complicated to hold both target date funds and individual ...
by uwbadgers
Thu Dec 07, 2017 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: End of year Review
Replies: 3
Views: 1011

End of year Review

Thought I'd put together a summary of where we are at and see if there was anything that "stuck" out to anyone with our current plan or if there is anything we could be doing better/more efficiently. Thanks in advance, not many people you can talk to about things like this :happy Age: 33/3...
by uwbadgers
Thu Dec 07, 2017 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 2490
Views: 571154

Re: Share your net worth progression

2013---227k Kid 1, bought house 1
2014---302k
2015---411k Kid 2
2016---546k
2017---702k sold house 1 (large profit), bought house 2
by uwbadgers
Tue Sep 26, 2017 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Should I create LLC for new business?
Replies: 18
Views: 1836

Re: Should I create LLC for new business?

Being an independent contractor does cause you be a business that allows more options for legitimate and 100% legal business expense deductions. However, a default single member LLC is treated as a disregarded entity by the IRS. You will file on the same exact Schedules C and SE as a sole proprieto...
by uwbadgers
Sun Sep 24, 2017 7:18 am
Forum: Personal Finance (Not Investing)
Topic: Should I create LLC for new business?
Replies: 18
Views: 1836

Re: Should I create LLC for new business?

Hi all, OP back. Thanks for all the words here......can't say I understand all of them, but thanks :) From the sounds of it, many say that this isn't really a tax BENEFIT for me. My boss, not a CPA keep in mind, has made it sound like in an LLC setup I'm able to deduct A LOT of things thus showing l...
by uwbadgers
Sat Sep 23, 2017 6:51 am
Forum: Personal Finance (Not Investing)
Topic: Should I create LLC for new business?
Replies: 18
Views: 1836

Should I create LLC for new business?

Hi all, SUMMARY: Should I create a single member LLC for my new side business? Is the setup/cost worthwhile for me and will it help me increase my profits using deductions? - - BASIC INFO Married 2 kids HHI = ~175k/year 0 debt I am a personal trainer and make ~40-45k/year. Over the last year I've cr...
by uwbadgers
Sat Jul 22, 2017 9:07 pm
Forum: Personal Consumer Issues
Topic: Assess our possible new house purchase (update)
Replies: 23
Views: 2849

Re: Assess our possible new house purchase

Though I'd post a little update on what we decided. We ended up getting into a purchase agreement for the new house for 558k. Today, we accepted an offer for 440k on current home. We paid 309k in 2013 so really lucked out/my sweat equity paid off! Our house was probably one of the lowest cost in the...
by uwbadgers
Fri Jul 07, 2017 2:57 pm
Forum: Personal Consumer Issues
Topic: Assess our possible new house purchase (update)
Replies: 23
Views: 2849

Re: Assess our possible new house purchase

Watty wrote:
uwbadgers wrote:The house would be 550k,
You might want to edit your original post to make that clear.

Going from a $400k to $550k house is much different than what your original post sounds like it was asking.
Yes, now as I read it more it doesn't make much sense :) Thanks, I updated and fixed the wording.
by uwbadgers
Fri Jul 07, 2017 2:42 pm
Forum: Personal Consumer Issues
Topic: Assess our possible new house purchase (update)
Replies: 23
Views: 2849

Re: Assess our possible new house purchase

Hi Watty, please see the bolded below for my answers to some of your questions. I appreciate the feedback and thoughts. A huge question is what you are willing to give up to have the larger house. For example will you and your spouse be OK it that means that you have to skimp on vacations and retir...
by uwbadgers
Fri Jul 07, 2017 8:50 am
Forum: Personal Consumer Issues
Topic: Assess our possible new house purchase (update)
Replies: 23
Views: 2849

Re: Assess our possible new house purchase

bloom2708 wrote:Approved.

One item, 401k max should be $18k + $18k = $36K + $4k match.

Match does not count against the total you can put in. Make sure doing pre-tax 401k. Pay the tax "down the road".
I do not have a 401k at my work so it's just Wife 401k and Both Roth IRA.
by uwbadgers
Fri Jul 07, 2017 8:36 am
Forum: Personal Consumer Issues
Topic: Assess our possible new house purchase (update)
Replies: 23
Views: 2849

Re: Assess our possible new house purchase

Hi Runner, Great question, let me explain what I meant. Our AVG NET incomes for each calendar year (this is where I used our "lowest" 12 month average for worst case scenario) 2013---7,295---->7,993 with rental income (734/month) 2014---7,056---->7,790 with rental income 2015---9,137---->9...
by uwbadgers
Fri Jul 07, 2017 6:58 am
Forum: Personal Consumer Issues
Topic: Assess our possible new house purchase (update)
Replies: 23
Views: 2849

Re: Assess our possible new house purchase

$2929/$8300 = 35% going to housing. I know that lenders use gross but 35% of net would be uncomfortable for me (and we're in the same income bracket with no children). Additionally, if you have cable, internet, gas, electric, water, sewer, you probably have at least another $500 in utilities bringi...
by uwbadgers
Fri Jul 07, 2017 4:53 am
Forum: Personal Consumer Issues
Topic: Assess our possible new house purchase (update)
Replies: 23
Views: 2849

Re: Assess our possible new house purchase

Well, you've been doing a good job saving and have a healthy amount in retirement accounts already. Also having a rental property is nice. Can you afford another $1000/month? Yes, it appears so. How old of a house is it? What kind of upgrades/repairs are you anticipating? I would go ahead and get a...