Search found 1968 matches

by terran
Thu Apr 15, 2021 10:00 pm
Forum: Investing - Theory, News & General
Topic: 457 plan distribution
Replies: 11
Views: 711

Re: 457 plan distribution

Can you roll it into a IRA at Vanguard and keep your same allocation? Even if you can't bring it into a new plan, you most definitely can roll a 457 plan into an individual rollover IRA A non-governmental 457 cannot be rolled into IRA. Sad, but true. :? but a governmental one can be? (have a state ...
by terran
Tue Apr 13, 2021 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Recharacterizations of IRA contribution for 2020
Replies: 3
Views: 252

Re: Recharacterizations of IRA contribution for 2020

As long as you're eligible to deduct traditional IRA contributions you can deduct the full amount you contributed/recharacterized.
by terran
Mon Apr 12, 2021 10:00 am
Forum: Personal Consumer Issues
Topic: shiplap for bathroom accent wall (what type of board?)
Replies: 9
Views: 878

Re: shiplap for bathroom accent wall (what type of board?)

Definitely not MDF (it swells easily when exposed to moisture). Cedar has natural rot resistance (which is why it's used for outside applications) -- it does have a pretty pungent smell which some people like and others don't. I can't imagine manmade products made for outdoor applications like PVC a...
by terran
Mon Apr 12, 2021 9:53 am
Forum: Personal Investments
Topic: Question on simultaneous 72t & Roth ladder
Replies: 23
Views: 1489

Re: Question on simultaneous 72t & Roth ladder

I'm a little confused why you're thinking of doing 72t withdrawals? With $1 Million in Roth contributions you have plenty live on while you get a conversion ladder going and that's before you consider taxable which I would want to deplete before taking anything out of tax advantaged accounts anyway....
by terran
Fri Apr 09, 2021 8:51 pm
Forum: Personal Finance (Not Investing)
Topic: HSA reimbursement
Replies: 10
Views: 799

Re: HSA reimbursement

2. As I understand it you'll pay tax on the capital gains from any investments you sell just like if you'd sold them in a taxable account. So the whole distribution won't be taxable, but only the gains on the investments sold. I suppose you might be able to offset this with a medical expense deduct...
by terran
Fri Apr 09, 2021 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: HSA reimbursement
Replies: 10
Views: 799

Re: HSA reimbursement

1. You can wait indefinitely. If you die before reimbursing yourself your heirs will need to know to claim the medical expense because otherwise the full balance is taxable in the year they receive it. If you can afford to max out all other tax advantaged accounts even if you don't reimburse yoursel...
by terran
Fri Apr 09, 2021 11:33 am
Forum: Personal Investments
Topic: Allocate 401k by contribution source
Replies: 15
Views: 923

Re: Allocate 401k by contribution source

I agree that Roth usually isn't the best choice , although I wouldn't go so far as to tell someone not to contribute to Roth unless I had taken a closer look at their situation. Something to note is that the word "source" in retirement plan administration tends indicate the type of account...
by terran
Thu Apr 08, 2021 8:40 am
Forum: Personal Finance (Not Investing)
Topic: What amount of my SEP IRA contribution is "attributable to my business"?
Replies: 1
Views: 176

Re: What amount of my SEP IRA contribution is "attributable to my business"?

Yes, all of it. If you didn't have this business income you couldn't make any contribution to the SEP. Turbotax probably wants to know how much to subtract from your Qualified Business Income for your QBI deduction (just a guess).
by terran
Thu Apr 08, 2021 2:49 am
Forum: Personal Finance (Not Investing)
Topic: Have I calculated my QBI correctly?
Replies: 2
Views: 422

Re: Have I calculated my QBI correctly?

Yes, this looks right. A self employed health insurance deduction is the only other thing I can think of that would reduce QBI, but if you get health insurance through your W2 job that wouldn't apply.
by terran
Fri Apr 02, 2021 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Term insurance - free lunch?
Replies: 25
Views: 1951

Re: Term insurance - free lunch?

This post is mostly just seconding other advice you've gotten, but I'd agree about steering clear of NW mutual. When we talked to one of their salesmen he would sell us term life, but I got the impression whole life is their bread and butter. We ended up finding a broker on term4sale and ended up wi...
by terran
Sat Mar 27, 2021 10:30 am
Forum: Personal Investments
Topic: merrill edge brokerage bonus ME1000
Replies: 18
Views: 2066

Re: merrill edge brokerage bonus ME1000

Did anyone here happen to save a copy of the terms and conditions for this bonus? I forgot to and my bonus hasn't been paid out after the 180 days + 2 weeks period, so before I call them I'd feel better if I had a copy of the terms to back me up. Would anybody be willing to email me a copy if I pri...
by terran
Sat Mar 27, 2021 10:23 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 2870
Views: 455951

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Did anyone here happen to save a copy of the terms and conditions for the Merrill Edge ME1000 bonus? I forgot to and my bonus hasn't been paid out after the 180 days + 2 weeks period, so before I call them I'd feel better if I had a copy of the terms to back me up. Would anybody be willing to email ...
by terran
Sat Mar 27, 2021 10:21 am
Forum: Personal Investments
Topic: merrill edge brokerage bonus ME1000
Replies: 18
Views: 2066

Re: merrill edge brokerage bonus ME1000

Did anyone here happen to save a copy of the terms and conditions for this bonus? I forgot to and my bonus hasn't been paid out after the 180 days + 2 weeks period, so before I call them I'd feel better if I had a copy of the terms to back me up. Would anybody be willing to email me a copy if I priv...
by terran
Sat Mar 27, 2021 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Schwab referral bonus question [tax reporting]
Replies: 8
Views: 687

Re: Schwab referral bonus question

Since it was deposited into an IRA you I wouldn't expect that you'll have to pay tax on it now, but you will when you withdraw unless this is a Roth IRA. That's both my understanding the of the rules, and my experience with a bonus paid into an E*trade solo 401(k).
by terran
Sat Mar 27, 2021 9:01 am
Forum: Personal Finance (Not Investing)
Topic: IRS Announcement 2021-7: PPE Deduction
Replies: 3
Views: 515

Re: IRS Announcement 2021-7: PPE Deduction

Yes, that matches my reading of it. As long as it's used by the taxpayer, spouse or dependents for the primary purpose of prevent the spread of COVID.
by terran
Tue Mar 23, 2021 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Early retirement before vs. after buying a house
Replies: 19
Views: 1774

Re: Early retirement before vs. after buying a house

Get a definitive answer on this, but I'm fairly sure the HELOC would be paid off at closing just like a mortgage. It's not saying you can't have a HELOC when you start the process of selling, just that when the house is sold the HELOC is due. One downside of a HELOC is that the lender can decide to ...
by terran
Tue Mar 23, 2021 2:02 am
Forum: Personal Investments
Topic: Spousal IRA
Replies: 37
Views: 2103

Re: Spousal IRA

I guess I'm confused again. I read your post, then this which seemed to say the same thing. https://www.irs.gov/publications/p590a#en_US_2020_publink1000230472 Basically wife is primary earner and has a work place plan in which she participates. Assume I am not working at all and not participating ...
by terran
Tue Mar 23, 2021 1:06 am
Forum: Personal Investments
Topic: Spousal IRA
Replies: 37
Views: 2103

Re: Spousal IRA

Thank you. This is very helpful. I had misunderstood the part that I bolded above, but went back and looked at it again it is exactly as you indicate. Based upon this, I, as a non earning spouse, would not be eligible for a deductible traditional IRA because my wife is covered by an employer plan a...
by terran
Mon Mar 22, 2021 10:45 pm
Forum: Personal Investments
Topic: Spousal IRA
Replies: 37
Views: 2103

Re: Spousal IRA

As David Jay says, there's no distinction between a "spousal" IRA and just a regular IRA. The only thing the terminology indicates is that a person can contribute to an IRA based on their spouse's income if they have insufficient earned income of their own to justify a contribution. This m...
by terran
Mon Mar 22, 2021 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Qualified Business Income Deduction < 20%
Replies: 3
Views: 392

Re: Qualified Business Income Deduction < 20%

The QBI deduction is 20% if QBI or 20% of taxable income before the QBI deduction, whichever is less, so if most of your taxable income is QBI then the QBI deduction will be less than 20% of QBI thanks to other deductions (including the standard deduction), so that could be it.
by terran
Sun Mar 21, 2021 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: It Happened... No Longer Employed and Seeking Advice
Replies: 33
Views: 5100

Re: It Happened... No Longer Employed and Seeking Advice

Even if you end up needing to live completely off your wife's salary for a time consider keeping the 403(b) and 457(b) contributions going while drawing down from taxable for expenses. It's effectively a way of "transferring" taxable to tax advantaged. The same goes for Roth contributions.
by terran
Sun Mar 21, 2021 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement before vs. after buying a house
Replies: 19
Views: 1774

Re: Early retirement before vs. after buying a house

Alternatively, what about a cash out refinance on your current house while you still have a job and then use that money to bridge the gap between buying and selling regardless of when you retire? Seems like a shame to put off retirement just for short term financing while you transition houses if al...
by terran
Thu Mar 18, 2021 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: [Tax Day for individuals extended to May 17 - filing and payment]
Replies: 56
Views: 4276

Re: [Tax Day for individuals extended to May 17 - filing and payment]

So the estimated taxes are still due but you can't tell how much est taxes you owe unless you complete your return? An option I've seen mentioned (but didn't look too closely at the details) is to apply your 2020 refund to 2021 or overpay your 2020 tax due and apply that to 2021 as a way to get aro...
by terran
Mon Mar 15, 2021 1:38 am
Forum: Personal Finance (Not Investing)
Topic: Question on taxes [Solo 401(k) maximum contribution]
Replies: 2
Views: 260

Re: Question on taxes [Solo 401(k) maximum contribution]

This should help: https://obliviousinvestor.com/solo-401k-contribution-calculator/ -- You'll want to say yes to earnings from another job so you can enter your W2 403(b), but leave the earnings blank since if you enter anything it will use that to incorrectly reduce your self employment tax which wi...
by terran
Mon Mar 15, 2021 12:21 am
Forum: Personal Finance (Not Investing)
Topic: Do SEP Iras not count as a tax break? Need some advice...
Replies: 22
Views: 1199

Re: Do SEP Iras not count as a tax break? Need some advice...

I am considering taking time to fill the forms out myself and mail them directly with the IRS though. If you decide to do that take a look at Free Fillable Forms . It does a little bit of the math for you and you might still be able to efile if you don't need to do something it doesn't support (lik...
by terran
Sun Mar 14, 2021 10:44 pm
Forum: Personal Finance (Not Investing)
Topic: 3rd stimulus question
Replies: 4
Views: 794

Re: 3rd stimulus question

Your understanding of how it should work matches mine.
by terran
Sun Mar 14, 2021 4:58 pm
Forum: Personal Investments
Topic: Poor Fund Choices in 457b
Replies: 5
Views: 481

Re: Poor Fund Choices in 457b

Here's one way to think about whether to invest in a tax advantaged account with expensive investment options: https://www.bogleheads.org/wiki/401(k)# ... re_choices
by terran
Sun Mar 14, 2021 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Do SEP Iras not count as a tax break? Need some advice...
Replies: 22
Views: 1199

Re: Do SEP Iras not count as a tax break? Need some advice...

If you've gotten to the end of the turbotax interview and the amount never changed when you entered your SEP contribution then something is wrong. From everything you've presented you are eligible, and should be reflected in your return when you file, don't count on anything being adjusted later. I ...
by terran
Sun Mar 14, 2021 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: IRS $10,200 unemployment exclusion instructions are out
Replies: 32
Views: 3450

Re: IRS $10,200 unemployment exclusion instructions are out

Jags4186 wrote: Sun Mar 14, 2021 2:58 pm Is the $150,000 AGI limit for the $10,200 MFJ or single?
Both, I think (so it doesn't scale). If both people had unemployment income they could exclude up to $10,200 each (but it can't be "shared" if one doesn't use it up).
by terran
Sun Mar 14, 2021 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: IRS $10,200 unemployment exclusion instructions are out
Replies: 32
Views: 3450

Re: IRS $10,200 unemployment exclusion instructions are out

It looks like the IRS is at least telling accountants to hold off on amended returns: http://www.sharethiscontent.net/Actions ... ce=twitter
by terran
Sun Mar 14, 2021 12:09 am
Forum: Personal Finance (Not Investing)
Topic: How to change dependent care FSA allocation
Replies: 4
Views: 316

Re: How to change dependent care FSA allocation

Yeah, I doubt you'll get an answer right away, but if you can enough of your coworkers bug them about it they might look into it.
by terran
Sun Mar 14, 2021 12:00 am
Forum: Personal Investments
Topic: in plan after tax conversion vs roth
Replies: 15
Views: 1062

Re: in plan after tax conversion vs roth

With numbers that large that sounds like something you'd probably want to check with an accountant about. If it's a capital loss then only $3k/year can offset ordinary income, which is what Roth conversions are (they're not capital gains, which a loss can offset completely).
by terran
Sat Mar 13, 2021 11:58 pm
Forum: Personal Finance (Not Investing)
Topic: How to change dependent care FSA allocation
Replies: 4
Views: 316

Re: How to change dependent care FSA allocation

The new law also allows (but does not require) employers to let you change you election, so this is something you'll need to take up with your employer.
by terran
Sat Mar 13, 2021 2:31 pm
Forum: Personal Investments
Topic: Rollover Into 403b or 457b?
Replies: 4
Views: 541

Re: Rollover Into 403b or 457b?

All other things being equal I'd roll it into the 403(b). If you're allowed to roll them into the 457(b) they will have to be accounted for separately, so you won't get the advantages of the 457(b) and it just seems messier. https://www.irs.gov/pub/irs-tege/rollover_chart.pdf
by terran
Sat Mar 13, 2021 2:27 pm
Forum: Personal Investments
Topic: in plan after tax conversion vs roth
Replies: 15
Views: 1062

Re: in plan after tax conversion vs roth

Roth 401(k) has some other rules, but they can be avoided by rolling over to Roth IRA when you retire, so I'll just ignore those since I've never paid too much attention to them given the rollover loophole. Roth contributions/principle can actually be withdrawn at any time without tax or penalty. Wi...
by terran
Tue Mar 09, 2021 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Qualifying for ACA subsidies in 2022 -- does my plan make sense?
Replies: 48
Views: 2011

Re: Qualifying for ACA subsidies in 2022 -- does my plan make sense?

My understanding is that you can get the advance credit (subsidies) by providing a letter that explains your change of circumstances. Here's a post describing why some people (those who will be near the top of the subsidy eligible income range) might consider not taking the advance credit and inste...
by terran
Tue Mar 09, 2021 11:37 am
Forum: Personal Investments
Topic: Best HSA distribution method for out of pocket medical expenses
Replies: 6
Views: 647

Re: Best HSA distribution method for out of pocket medical expenses

I don't see any benefit to making multiple distributions. They'll all be reported to the IRS as a single lump sum anyway.
by terran
Tue Mar 09, 2021 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Qualifying for ACA subsidies in 2022 -- does my plan make sense?
Replies: 48
Views: 2011

Re: Qualifying for ACA subsidies in 2022 -- does my plan make sense?

This should help answer some of your questions: https://www.healthcare.gov/income-and-household-information/income/ (also see the link there on who is counted as part of your household). Here's a calculator (for lack of a better word coming to mind) that can help you figure out if your daughter will...
by terran
Sat Mar 06, 2021 11:50 am
Forum: Personal Investments
Topic: A newish version of the 401a/403b/one-participant 401k question.
Replies: 2
Views: 256

Re: A newish version of the 401a/403b/one-participant 401k question.

From what I've read the overall $58k limit is definitely combined across the solo 401(k) and 403(b) because both are considered to be under control of the participant (for obvious reasons with the solo 401(k) and esoteric reasons with the 403(b)). I think, but can't give a definitive answer, that th...
by terran
Fri Mar 05, 2021 2:31 pm
Forum: Personal Investments
Topic: roth 401k/ mega roth and regular 401k same year
Replies: 1
Views: 127

Re: roth 401k/ mega roth and regular 401k same year

The employee salary deferral limit ($19,500 in 2021) is combined between traditional/tax-deferred and Roth across employers, so you're right in thinking you have $15,300 remaining in this limit for either Roth or traditional contributions this year. The overall limit ($58,000 in 2021) is combined be...
by terran
Fri Mar 05, 2021 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: How to prove PPP Loan used for payroll? Sole Proprietor
Replies: 28
Views: 1798

Re: How to prove PPP Loan used for payroll? Sole Proprietor

It sounds like she doesn't have any employees? I'm in the same situation and didn't have to provide any proof, just fill out the forgiveness form. I did set myself up as a bill pay recipient in the account the PPP loan was deposited and set it up to have the bank send me a check every week to with a...
by terran
Fri Mar 05, 2021 3:12 am
Forum: Personal Investments
Topic: Fidelity NetBenefits In-Plan Conversion
Replies: 14
Views: 1399

Re: Fidelity NetBenefits In-Plan Conversion

I am confused about these conversion. What about something like the Roth 403(b) plan? It is an after tax contribution. Does it need to be converted? Some workplace plans allow a combination of 1) after-tax (not Roth) contributions that 2) can be rolled over while still working to either an internal...
by terran
Thu Mar 04, 2021 5:12 pm
Forum: Personal Investments
Topic: Recharacterization to back door Roth? *add new question*
Replies: 5
Views: 409

Re: Recharacterization to back door Roth?

Yes, you can recharacterize your Roth over contribution to traditional then convert back to Roth while paying taxes on any gains between the time you originally contributed to and when you convert. This assumes you have no other previously deducted balances in any traditional IRA, which would cause ...
by terran
Thu Mar 04, 2021 2:41 pm
Forum: Personal Investments
Topic: Fidelity NetBenefits In-Plan Conversion
Replies: 14
Views: 1399

Re: Fidelity NetBenefits In-Plan Conversion

My wife also has to call Fidelity to do the conversion. My understanding is that some plans can be set up to do it automatically, but it depends on the employer, so you could check, but her's doesn't have this feature. This is the script she uses based on the suggestion of one of the first reps she ...
by terran
Thu Mar 04, 2021 11:28 am
Forum: Personal Finance (Not Investing)
Topic: QBID - Qualified Business Income Deduction -Rookie questions
Replies: 24
Views: 1066

Re: QBID - Qualified Business Income Deduction -Rookie questions

Yes, if you could make employee contributions the limit would be $17,658 + $19,500 = $37,158, $19,500 of which could be either traditional or Roth (custodian permitting). See the "Deduction Worksheet for Self-Employed" in Publication 560 . Note that it appears to still be using 2019 number...
by terran
Wed Mar 03, 2021 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: QBID - Qualified Business Income Deduction -Rookie questions
Replies: 24
Views: 1066

Re: QBID - Qualified Business Income Deduction -Rookie questions

The last few replies are very valuable and brings up the discussion, whether it makes sense to get the tax savings now by contributing to traditional solo 401(k) or Roth solo 401(k). I'm sure it might depend on what my tax bracket will be during retirement. Which I'm not sure :) Yes, it very much d...
by terran
Wed Mar 03, 2021 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: QBID - Qualified Business Income Deduction -Rookie questions
Replies: 24
Views: 1066

Re: QBID - Qualified Business Income Deduction -Rookie questions

Are employER Solo 401K contributions pretax? Will that reduce your QBI income and therefore your QBI deduction as well? Yes, employer contributions are always pretax/traditional and reduce QBI. Employee contributions can be made as Roth (plan permitting) and don't reduce QBI, but as johnpau correct...
by terran
Wed Mar 03, 2021 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: QBID - Qualified Business Income Deduction -Rookie questions
Replies: 24
Views: 1066

Re: QBI - Qualified Business Income Deduction -Rookie questions

johnpau wrote: Wed Mar 03, 2021 6:11 pm So, for determining the solo 401(k) contribution limit we get the number from Total Income - Expenses (in this case 95K) ?
Yes, gross business income minus business expenses, so line 31 of Schedule C.
by terran
Wed Mar 03, 2021 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: QBID - Qualified Business Income Deduction -Rookie questions
Replies: 24
Views: 1066

Re: QBI - Qualified Business Income Deduction -Rookie questions

You'd use Schedule C line 31, or $95k in the example we've been using, as the net profit for solo 401(k) calculations for which I get a maximum employee contribution of $17,658. Remember that this will reduce QBI and therefore reduce the QBI deduction. It effectively makes traditional solo 401(k) co...
by terran
Wed Mar 03, 2021 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Should I ditch BofA?
Replies: 40
Views: 3613

Re: Should I ditch BofA?

Age of credit is (I think) a pretty big factor in credit score, so I probably wouldn't cancel your oldest card unless you have other pretty old cards, but I'd probably try to get it converted to a no fee card and then maybe use a different card most of the time (put some small recurring charge on th...