Search found 12322 matches

by celia
Tue Apr 20, 2021 4:04 am
Forum: Personal Investments
Topic: Convert to Roth or stay in tax deferred?
Replies: 56
Views: 8992

Re: Convert to Roth or stay in tax deferred?

What were your thoughts on using a HELOC to pay the taxes rather than having to withdraw more from the traditional IRA during the conversion? I stopped following this thread since my last post, but how would you pay off the HELOC if all you have is the tax-deferred money? Seems like you would need ...
by celia
Tue Apr 20, 2021 1:25 am
Forum: Personal Investments
Topic: Backdoor Roth tax question
Replies: 8
Views: 561

Re: Backdoor Roth tax question

Is it rare for accountants to be well-versed in the investment space as well? In a way, you're asking about the difference between an accountant, CPA, tax preparer, and financial advisor. All of them can advise you, but are stronger in one area over another. It's a matter of different training and ...
by celia
Tue Apr 20, 2021 1:06 am
Forum: Personal Investments
Topic: Permission to retire?
Replies: 36
Views: 5309

Re: Permission to retire?

Why? What happened to make you think this way suddenly? Sudden decisions are seldom optimal. Well it happens. In my case, I have been thinking about retiring for years, but finally about 4 weeks ago, my wife threw in the towel and said, Let's retire! I am busying making my plans real now :-) To the...
by celia
Mon Apr 19, 2021 8:19 pm
Forum: Personal Investments
Topic: How Do I Untangle an Old Commingled IRA?
Replies: 13
Views: 1318

Re: How Do I Untangle an Old Commingled IRA?

I believe the original amount was contributed from post-tax dollars and so I should only be paying tax on the earnings, but after countless amounts of time trying to piece together the history, there was just no way to prove that. It was recorded as pre-tax at the time of the last exchange (I belie...
by celia
Mon Apr 19, 2021 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Choosing a university/college for my son a future Computer Science Major
Replies: 172
Views: 13967

Re: Choosing a university/college for my son a future Computer Science Major

If anyone has any experiences with the "final 3" we're glad to listen. Per the opinions posted above, we're thinking it really won't matter which school he chooses career-wise. At this point I think he is just trying to find the school that will be the best fit. Very good, so far. What I ...
by celia
Mon Apr 19, 2021 3:21 pm
Forum: Personal Investments
Topic: Permission to retire?
Replies: 36
Views: 5309

Re: Permission to retire?

Do you have "permission" from your wife? If you don't have planned activities/hobbies, she may think otherwise. :D I am 61 in May and my my wife is 59. Our net worth is approx. 2.4 Million. 390K in taxable investments. Vanguard A/A approx 70/30 401K 1.55 M usd. A/A is approx 50/50. You def...
by celia
Mon Apr 19, 2021 12:06 pm
Forum: Personal Investments
Topic: Backdoor Roth tax question
Replies: 8
Views: 561

Re: Backdoor Roth tax question

We have an accountant who keeps asking for the 1099-R, so I've been trying to explain in depth why there won't be one. And this is the last year with an accountant... Your accountant is not deficient here, so don't take that out on them. Not many people do Backdoor Roths, so they don't see this ver...
by celia
Mon Apr 19, 2021 11:52 am
Forum: Personal Investments
Topic: 65 y.o. seeks advise on retirement at 70
Replies: 35
Views: 2993

Re: 65 y.o. seeks advise on retirement at 70

"My health care expenses will go down when I get MediCare" (which I currently have); he responded: "No, they won't" Maybe your premiums go down or are more predictable, but as we age, we are more likely to have UNEXPECTED health care issues. Just a "trip and fall" can ...
by celia
Mon Apr 19, 2021 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Conclusions: tIRAs, trusts, and the SECURE Act
Replies: 21
Views: 1722

Re: Conclusions: tIRAs, trusts, and the SECURE Act

OP, I just wanted you to be aware that the SECURE Act may not end up being as you think it is (thought it was). While interesting to get some guidance, I am not sure how many people would actually avail themselves of waiting until year 10 to pull out their tIRA distributions, unless they are in the ...
by celia
Mon Apr 19, 2021 11:04 am
Forum: Personal Investments
Topic: Backdoor Roth tax question
Replies: 8
Views: 561

Re: Backdoor Roth tax question

When reporting the 2020 contribution, will I receive anything from Fidelity, or will the only reporting be the IRS 8606 form? Next January you will receive a 1099-R showing that in 2021, you withdrew $12,000 from the IRA and you will then report that it was converted. You will also get Form 5498 af...
by celia
Mon Apr 19, 2021 2:08 am
Forum: Personal Finance (Not Investing)
Topic: Earthquake Insurance
Replies: 17
Views: 1416

Re: Earthquake Insurance

Current home insurance premium (does not include earthquake coverage) ~$2k / year Cost to add earthquake insurance ~$1,970 / year New total home insurance / year (combined cost of regular + earthquake, total premium per year) ~$4k Deductible on earthquake insurance $118k Our earthquake insurance pr...
by celia
Sun Apr 18, 2021 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion. Vanguard Tax Form Screw-Up?
Replies: 8
Views: 548

Re: Roth Conversion. Vanguard Tax Form Screw-Up?

In 2020, I converted a sum from a Vanguard traditional IRA to a Vanguard Roth IRA. The Form 1099-R I received from Vanguard includes the full sum in Box 2a, "Taxable amount". Box 2b is checked as "Taxable Amount not determined." The Box 7 Distribution Code shows "07". ...
by celia
Sun Apr 18, 2021 7:15 am
Forum: Investing - Theory, News & General
Topic: Don't fuss about 529 accounts. Have your child skip the first two years of college instead!
Replies: 141
Views: 10262

Re: Don't fuss about 529 accounts. Have your child skip the first two years of college instead!

Also consider utilizing community colleges in for first two years. One that is in a county next to us excels in nursing and aeronautics. Although I went to private schools both undergrad and grad (latter on the company dime), I took two summer classes at our community college. One class was good, b...
by celia
Sun Apr 18, 2021 3:27 am
Forum: Investing - Theory, News & General
Topic: Impacts of Lifting Eviction Moratoriums?
Replies: 10
Views: 1587

Re: Impacts of Lifting Eviction Moratoriums?

I think the majority of those who can no longer pay rent will try to find someone else to move in with and share the costs. We would have more multi-generational households, which I think is good for society (grandparents sitting with grandkids while parents work, while keeping an eye on the elderly...
by celia
Sun Apr 18, 2021 3:05 am
Forum: Personal Investments
Topic: When to take Social Security when a pension is linked to it
Replies: 25
Views: 2420

Re: When to take Social Security when a pension is linked to it

This looks like the same decision as other people need to make as to when to start SS, since the two parts are tied together for you. You also state you want to wait until age 70 so you get the maximum. This is particularly beneficial if you might one day have a surviving spouse who would need to co...
by celia
Sat Apr 17, 2021 11:02 pm
Forum: Personal Finance (Not Investing)
Topic: Conclusions: tIRAs, trusts, and the SECURE Act
Replies: 21
Views: 1722

Re: Conclusions: tIRAs, trusts, and the SECURE Act

I don’t know why you would make any trust be a beneficiary of an IRA. (What if she wants to disclaim all/part of it such as if her kids have lower tax brackets?) And how can you account for future tax law changes? And did you notice the changes made under the SECURE Act are not yet understood? This ...
by celia
Sat Apr 17, 2021 10:49 pm
Forum: Personal Consumer Issues
Topic: How to get the best sleep?
Replies: 27
Views: 1908

Re: How to get the best sleep?

I don’t go to bed until I’m tired, but then I’m “out” within a minute and sleep soundly. A dark, cool room helps as well as no recent meals/snacks to finish processing internally. :beer

To make this actionable, sometimes I dream of IRAs and what to do about them. :oops:

Really!
by celia
Sat Apr 17, 2021 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2810

Re: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)

Are you sure you don't have to pay tax on the 1099R amount less basis which is 9300 - 7000 = $2300? Then you converted $8300 and have $1000 of basis 'stuck' on Form 8606 to carryforward. You only pay tax on the amount that was converted, which was $8300. The $1,000 that disappeared was not "ba...
by celia
Sat Apr 17, 2021 4:40 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2810

Re: Moron of the year award goes to me: need help with rechar/pro rata Roth stuff

One question I have now (and I don't think this is an issue), should I be concerned that on last year's 8606 reporting the $7000 nondeductible tIRA contribution (to record the $7000 basis) the tax guy didn't calculate any year end value as of 12/31/2019 (concerning the recharacterizations of the 20...
by celia
Sat Apr 17, 2021 4:01 pm
Forum: Investing - Theory, News & General
Topic: Vanguard - How America Invests
Replies: 28
Views: 3280

Re: Vanguard - How America Invests

The cash holdings are high enough to generate scorn and ridicule on this forum: 63% equities (stocks), 16% fixed income (bonds), and 21% cash (short-term reserves). [/i] But it is also possible that some/most of that cash is new money coming in regularly, about to be invested . After all, the repor...
by celia
Sat Apr 17, 2021 2:06 am
Forum: Investing - Theory, News & General
Topic: Vanguard - How America Invests
Replies: 28
Views: 3280

Re: Vanguard - How America Invests

are any of you individual security and ETF holders "frequent traders"?? They defined trade in the article: We define “trading” as the act of moving money from one investment option to another within an account. We have over a dozen accounts at Vanguard: Her separate Taxable, His separate ...
by celia
Fri Apr 16, 2021 11:02 pm
Forum: Personal Investments
Topic: Annuity Question, Can it work this way in Roth?
Replies: 18
Views: 1153

Re: Annuity Question, Can it work this way in Roth?

I am wondering. If I were to get an immediate annuity purchased by Roth money in a Roth account can I just have the annuity payment accumulate within the Roth or must the payment be payed as a distribution from the Roth? Can an immediate annuity payment just accumulate in a Roth? This is an interes...
by celia
Fri Apr 16, 2021 2:09 am
Forum: Personal Investments
Topic: Paycheck contribution to University of California (UC) retirement account failed
Replies: 15
Views: 1342

Re: Paycheck contribution to University of California (UC) retirement account failed

It might help to know if this also happened to others in your dept who are classified similarly. In other words, did it happen widely or just to you?
by celia
Thu Apr 15, 2021 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2810

Re: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)

I'm not sure how I'll figure out what the total ($4000 + growth) as of 12/31/2020 would have been. The concept to calculate it is simple. Assuming you didn’t add or withdraw any money from the Roth since you made a $7000 contribution, look at what percentage the $7000 was to the whole Roth on the d...
by celia
Thu Apr 15, 2021 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2810

Re: Moron of the year award goes to me: need help with rechar/pro rata Roth stuff

Part I --- Nondeductible Contributions to IRAs 6. 0 ---> 5234 (ending value of all IRAs, 4,000+1,234) I have my doubts that Aliengrrl's main question has been resolved. I think (but am not sure) that Katietsu is saying that Line 6 should be $0 after the recharacterization, because the literal value...
by celia
Thu Apr 15, 2021 4:55 am
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2810

Re: Moron of the year award goes to me: need help with rechar/pro rata Roth stuff

Your original 2019 contribution was made to a Roth in 2019, but recharacterized in 2020. The basis for 2019 ($7000) was reported on Form 8606 line 1 for 2019 because after a recharacterization, it is the same as if you had contributed to the IRA originally. The year ending value of the IRA didn't ma...
by celia
Thu Apr 15, 2021 12:42 am
Forum: Personal Finance (Not Investing)
Topic: Power of a personal real estate offer letter
Replies: 77
Views: 4795

Re: Power of a personal real estate offer letter

I'm 100% sure it helped us win the bid because my low offer beat out a higher offer from a real estate flipper. How much higher was the other offer? I was told it was $35k higher. Selling price isn’t everything. Maybe the high bidder had contingencies or shaky credit or something that would slow do...
by celia
Wed Apr 14, 2021 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Surviving spouse option to file MFJ equivalent for two years - strategies?
Replies: 4
Views: 475

Re: Surviving spouse option to file MFJ equivalent for two years - strategies?

No children in the picture, so I guess he's going to have to do Single filing starting this year. And I will pass along the Roth conversion idea. If he does the Roth conversion, he needs to be aware of how much space is in his new Single tax brackets. (It is half as much as MFJ tax brackets.) Howev...
by celia
Wed Apr 14, 2021 2:21 am
Forum: Personal Finance (Not Investing)
Topic: I just became a victim of identity theft - What to do now?
Replies: 20
Views: 1772

Re: I just became a victim of identity theft - What to do now?

Also did you call the department store back to confirm? Did you previously do business with this department store and that is how they had your number? Occasionally you will receive calls from scammers purporting to be from a banking institution, government agency or other business and attempt to s...
by celia
Wed Apr 14, 2021 12:12 am
Forum: Investing - Theory, News & General
Topic: What's your definition of "Family Money"?
Replies: 47
Views: 5508

Re: What's your definition of "Family Money"?

It depends on what you mean by "family". It could mean you and your spouse and all the kiddos. Or it could refer to the extended family of one of you. In the first case, our family money is what DH and I earned by working or investing. In the second case, it could mean what you get from yo...
by celia
Tue Apr 13, 2021 5:09 pm
Forum: Personal Investments
Topic: Multiple years of expenses in cash when starting retirement
Replies: 104
Views: 8099

Re: Multiple years of expenses in cash when starting retirement

It is currently set up to convert our 401(k)s to Roth which will hurt us from a subsidy viewpoint. We will make the calculations at that point to determine which is more valuable to us. Have you considered that maybe it would be worth it to give up a year or two of subsidies (costing you an additio...
by celia
Tue Apr 13, 2021 4:48 pm
Forum: Personal Investments
Topic: Multiple years of expenses in cash when starting retirement
Replies: 104
Views: 8099

Re: Multiple years of expenses in cash when starting retirement

I've seen many people here posting about this as they start retirement and also asking how others spend down their savings. What they often have not thought about is what will happen in the future when RMDs start along with being on SS and/or a pension. Their retirement may be financially secure, bu...
by celia
Tue Apr 13, 2021 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Job Dilemma
Replies: 68
Views: 7377

Re: Job Dilemma

I have a few potential job offers and would love to hear which one you'd go for . I would stay with #1 since I don't need any extra complications in my life while I am pregnant or early parenting. YOU should go with #1 or #3 but they sound similar. If they are in different industries, maybe it's ti...
by celia
Tue Apr 13, 2021 7:35 am
Forum: Personal Finance (Not Investing)
Topic: Unexpected interpretation of the SECURE Act 10-year inherited IRA drawdown
Replies: 8
Views: 1108

Re: Unexpected interpretation of the SECURE Act 10-year inherited IRA drawdown

I inherited an IRA late last year, and took no distribution. So under this interpretation...I guess I'd be subject to an IRS penalty already?? WTH :oops: No penalty for you since RMDs were $0 in 2020, due to covid. Sorry. :D But I can't see how you can have a penalty in the case of someone dying in...
by celia
Tue Apr 13, 2021 3:11 am
Forum: Personal Investments
Topic: advice, please: allocation in inherited IRA
Replies: 8
Views: 629

Re: advice, please: allocation in inherited IRA

It depends on what the rest of your portfolio has. If married and filing MFJ, also include your spouse's assets. The whole portfolio should look like a balanced plan, since this account is a significant amount of money. Start with your desired Asset Allocation (% of stocks vs % of bonds with stocks ...
by celia
Mon Apr 12, 2021 8:49 pm
Forum: Personal Investments
Topic: Emergency (oh my God fund)
Replies: 45
Views: 4648

Re: Emergency (oh my God fund)

How is kid's tuition an emergency? Did you adopt some 17 year-olds who were already accepted into college?

Or your kids partied in college and lost their merit scholarships?
by celia
Mon Apr 12, 2021 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Strategy for passing your Digital Assets upon your death?
Replies: 30
Views: 1818

Re: Strategy for passing your Digital Assets upon your death?

I once asked kiva.com how I could give my account assets to someone after I died. They said to just give them my login info and the beneficiary could then change my email address to theirs.
by celia
Mon Apr 12, 2021 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Strategy for passing your Digital Assets upon your death?
Replies: 30
Views: 1818

Re: Strategy for passing your Digital Assets upon your death?

My estate attorney has the password to my hidden thumb drive with all digital accounts and access codes. So what happens in 30 years when you die and the lawyer preceded you in death and his business was sold? In other words, neither you nor the lawyer will be able to tell the beneficiaries anything.
by celia
Mon Apr 12, 2021 2:47 pm
Forum: Investing - Theory, News & General
Topic: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement
Replies: 27
Views: 1954

Re: Ross Gerber (Wealth Management) claims index funds won’t have high enough returns to fund retirement

If you make $150K a year while working, you are likely maxing out your retirement accounts and will have maximum SS and possibly a pension. No-one says your savings has to provide your entire support in retirement.
by celia
Mon Apr 12, 2021 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 Roth Conversion 8606 Question
Replies: 10
Views: 423

Re: 2020 Roth Conversion 8606 Question

I forgot to say, that you have to save a copy of the 8606 with your copy of the 2020 tax return. Then whoever does your taxes next year, needs to see the 8606 along with the 2020 tax return. Hopefully this 8606 will be the only one that contributes **FOR** one year and converts **IN** a different ye...
by celia
Mon Apr 12, 2021 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 Roth Conversion 8606 Question
Replies: 10
Views: 423

Re: 2020 Roth Conversion 8606 Question

How can you convert on ‘the same day’ when the contribution hasn’t ‘settled’ yet? Nonsense! You are supposed to make the contribution to the IRA before you report it on Form 8606. Do that before May 17,2021, then send in Form 8606. But before you even do that, you need to read the Backdoor Roth wiki...
by celia
Mon Apr 12, 2021 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Contract with Family Member for Grandfather’s Care?
Replies: 17
Views: 1764

Re: Contract with Family Member for Grandfather’s Care?

Another thing to consider with the lawyer is if your state has a prorgan to pay relatives who do the care-giving. It will probably be at minimum wage, but that at least reduces your costs.

California does this.
by celia
Mon Apr 12, 2021 11:30 am
Forum: Personal Finance (Not Investing)
Topic: I mailed in my taxes not knowing about the big backlog... Is there anything I can do to cancel that and e-file instead?
Replies: 15
Views: 2038

Re: I mailed in my taxes not knowing about the big backlog... Is there anything I can do to cancel that and e-file inste

You can’t cancel the mailed return. There’s nothing to stop you from e-filing but you will just confuse them, especially if it is not the same numbers you mailed. If you want to file an amended return, THAT must be mailed in. Tax credits dont ‘run out of money’, so no worries there. There also is an...
by celia
Mon Apr 12, 2021 11:22 am
Forum: Personal Consumer Issues
Topic: Medicare Claims Processing Question
Replies: 22
Views: 1412

Re: Medicare Claims Processing Question

Claims don’t have to be submitted again if Medicare already was billed. (I never had anything re-submitted.). They just need to be re-processed from October going forward, once Medicare is made aware they are primary and that MoO is secondary. Your brother should also not be carrying around expired ...
by celia
Mon Apr 12, 2021 2:42 am
Forum: Personal Finance (Not Investing)
Topic: Prenuptial arrangements
Replies: 123
Views: 8927

Re: Prenuptial arrangements

If you haven’t met each other’s closest relatives, get going on that. (You know, a picture is worth a thousand words...). Hopefully you will be more understanding of each other after that.
by celia
Mon Apr 12, 2021 12:55 am
Forum: Personal Consumer Issues
Topic: Medicare Claims Processing Question
Replies: 22
Views: 1412

Re: Medicare Claims Processing Question

Thanks for the responses everyone. A couple of points of clarification. I did not need to cancel his PPO plan. He was not full-time (40 hours/week), but qualified for the PPO plan the following year if he achieved 1,500 hours the prior year. You only qualify for the PPO plan for one calendar year. ...
by celia
Sun Apr 11, 2021 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: Contract with Family Member for Grandfather’s Care?
Replies: 17
Views: 1764

Re: Contract with Family Member for Grandfather’s Care?

My grandfather can no longer live on his own. My father has asked for my help in drawing up a contract for my aunt to care him, ... I think this means you would pay the initial lawyer fees, unless the trust is willing to pay. That’s what I would do. As far as uncle, ask him how he would contribute ...
by celia
Sun Apr 11, 2021 9:41 pm
Forum: Personal Investments
Topic: Creating revocable trust just for buying I Bonds?
Replies: 29
Views: 1978

Re: Creating revocable trust just for buying I Bonds?

It seems like it would be MUCH simpler to talk your mom into owning I-bonds than the cost and time and tax filing for a new trust. Can your dad buy them in her name and gift them to her each year? You can also use your tax refund to get $5k in I bonds. https://www.bogleheads.org/forum/viewtopic.php?...
by celia
Sun Apr 11, 2021 8:56 pm
Forum: Personal Investments
Topic: Roth Conversion: small or large - which makes sense?
Replies: 10
Views: 1256

Re: Roth Conversion: small or large - which makes sense?

1. Continue annual $30K Roth conversions to fill up 12% tax bracket -OR- 2. Convert all of husband’s 401K pre-tax account in two larger conversions filling up the 24% tax bracket. Taxes would be paid from a separate brokerage account. 1. Always filling up to the top of the 12% tax bracket is a no-b...