Search found 1978 matches

by nolesrule
Wed Jun 23, 2021 1:28 pm
Forum: Personal Investments
Topic: 1099 income into retirement account questions
Replies: 19
Views: 902

Re: 1099 income into retirement account questions

Answer to maximize pre-tax contributions: individual 401k for the wife where she can put away unto $19,500 plus up to 25% of matching. Here is some math: 1099 income is $30k after deduction. Payroll taxes are 15.3% (4,590.) Half of which is a business expense ($2,295.) Business profit is therefore ...
by nolesrule
Wed Jun 23, 2021 11:15 am
Forum: Personal Investments
Topic: 1099 income into retirement account questions
Replies: 19
Views: 902

Re: 1099 income into retirement account questions

I think I've mixed up in my head employee vs employer for a 1099 gig, which is causing me trouble for understanding the different account types. I ran through the calculator and etc at https://www.mysolo401k.net/solo-401k/solo-401k-contribution-limits-and-types/ It looks like I can make an employer...
by nolesrule
Wed Jun 23, 2021 6:42 am
Forum: Personal Investments
Topic: Fee incurred during HSA reallocation?
Replies: 11
Views: 975

Re: Fee incurred during HSA reallocation?

seeker24 wrote: Tue Jun 22, 2021 10:08 pm Does VT ETF in HSA while staying in CA incur taxes? Since HSA is considered a taxable account in CA, wondering if this matters only if I sell VT? I plan to hold it though....
The dividends will be taxable.
by nolesrule
Tue Jun 22, 2021 8:56 pm
Forum: Personal Investments
Topic: Donor advised fund questions
Replies: 14
Views: 1124

Re: Donor advised fund questions

Thanks for all the responses. It sounds like what I was thinking was correct so I appreciate the assistance. When I was talking about capital gains, I meant that if I make any sales of stocks or mutual funds in my taxable account, any realized capital gains would be donated to my DAF to avoid payin...
by nolesrule
Tue Jun 22, 2021 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: Opt out for Advance Child Tax Credit payments available at IRS.gov
Replies: 56
Views: 2365

Re: Opt out for Advance Child Tax Credit payments available at IRS.gov

I appreciate the response, but my question is different. Assume your 2020 AGI was over the threshold - do you still need to opt out? It appears that if you received even the regular CTC in 2020, not just the additional one from the stimulus, that you are considered eligible and would need to drop o...
by nolesrule
Tue Jun 22, 2021 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Form 8606. Did both Backdoor Roth and also additionally did 401k to IRA and then to Roth conversion
Replies: 12
Views: 766

Re: Form 8606. Did both Backdoor Roth and also additionally did 401k to IRA and then to Roth conversion

Yes, that is correct. Are you using tax software or filling out the forms manually? With tax software, entering the 1099s and answering the questions correctly will get everything in the right place.
by nolesrule
Tue Jun 22, 2021 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Opt out for Advance Child Tax Credit payments available at IRS.gov
Replies: 56
Views: 2365

Re: Opt out for Advance Child Tax Credit payments available at IRS.gov

mw1739 wrote: Tue Jun 22, 2021 10:14 am See FAQ J6 and J7:
https://www.irs.gov/credits-deductions/ ... e-payments
Thank you for providing the additional information. Very much appreciated.
by nolesrule
Tue Jun 22, 2021 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Opt out for Advance Child Tax Credit payments available at IRS.gov
Replies: 56
Views: 2365

Re: Opt out for Advance Child Tax Credit payments available at IRS.gov

mw1739 wrote: Tue Jun 22, 2021 10:02 am If you file jointly both spouses have to create IRS accounts and verify identities to opt out. The process is a bit of a pain.
Where does it say that?

I just went through the process to unenroll us and didn't see anything about that.
by nolesrule
Tue Jun 22, 2021 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Form 8606. Did both Backdoor Roth and also additionally did 401k to IRA and then to Roth conversion
Replies: 12
Views: 766

Re: Form 8606. Did both Backdoor Roth and also additionally did 401k to IRA and then to Roth conversion

401k to Traditional IRA is just a rollover. Traditional IRA to Roth IRA is an IRA to IRA Roth conversion, and will need to be part of Form 8606. If you had taken the check from the 401k and put it directly in a Roth IRA then it would not have been part of Form 8606 and instead would have been handl...
by nolesrule
Tue Jun 22, 2021 7:21 am
Forum: Personal Finance (Not Investing)
Topic: Form 8606. Did both Backdoor Roth and also additionally did 401k to IRA and then to Roth conversion
Replies: 12
Views: 766

Re: Form 8606. Did both Backdoor Roth and also additionally did 401k to IRA and then to Roth conversion

401k to Traditional IRA is just a rollover. Traditional IRA to Roth IRA is an IRA to IRA Roth conversion, and will need to be part of Form 8606. If you had taken the check from the 401k and put it directly in a Roth IRA then it would not have been part of Form 8606 and instead would have been handle...
by nolesrule
Mon Jun 21, 2021 3:40 pm
Forum: Personal Investments
Topic: Is the strategy explained in these videos about Mega Backdoor Roth Coversion the most efficient?
Replies: 24
Views: 1677

Re: Is the strategy explained in these videos about Mega Backdoor Roth Coversion the most efficient?

Now would this then complicate my process for the regular Backdoor Roth IRA ($6000 per year). How can I ensure I will be able to add $6000 to the Roth IRA via the backdoor process without getting caught up in the complex pro-rata rules. :confused Thanks in advance for your advise guys. As long as t...
by nolesrule
Mon Jun 21, 2021 8:36 am
Forum: Investing - Theory, News & General
Topic: What pitfalls do even smart people make when buying a home?
Replies: 149
Views: 12245

Re: What pitfalls do even smart people make when buying a home?

Buying a house that's too small can also be problematic. Family of 4. We went from 1100 sq ft in FL to 1900 sq ft in NJ when we moved thinking the extra space would be enough. But I work from home and the children get bigger. After 5 years, that house that seemed a great size when we got it started ...
by nolesrule
Mon Jun 21, 2021 6:44 am
Forum: Personal Investments
Topic: Donor advised fund questions
Replies: 14
Views: 1124

Re: Donor advised fund questions

We did stock transfer from Vanguard to our Fidelity DAF in December of 2020 for the first time. Prior to that we had donated cash. It was really easy. You just put in that you want to make a gift on Vanguard's site, answer the questions about which shares you want to donate and use the information f...
by nolesrule
Sun Jun 20, 2021 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Ally suddently asking to input new password
Replies: 13
Views: 1543

Re: Ally suddently asking to input new password

I received the letter on Friday.

It was a coding error that outputted the personal information in a report to a third party in a data exchange file. Any technology provider could have made this error unfortunately.
by nolesrule
Sat Jun 19, 2021 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Loan vs capital gains tax
Replies: 17
Views: 1414

Re: Loan vs capital gains tax

I'm confused here. What is the actual gap in income you are trying to to fill? Is it a $20k gap in income or is it larger than $20k but selling the stock to hit that number would result in $20k in gains? The loan would have to be for the full amount of the gap, but capital gains would only be paid o...
by nolesrule
Sat Jun 19, 2021 10:25 am
Forum: Personal Investments
Topic: Oops - Undoing a UTMA account!?
Replies: 23
Views: 1992

Re: Oops - Undoing a UTMA account!?

I don't think dual-credit would qualify for the exception as credits are not given on the basis of a test. AP however would as credits are test based, as is CLEP etc. Don't know about IB. IB is going to depend. I earned the IB Diploma, and back in the mid-90s the states schools in Florida would awa...
by nolesrule
Sat Jun 19, 2021 6:19 am
Forum: Personal Investments
Topic: After Tax 401K vs. Taxable Decision
Replies: 8
Views: 852

Re: After Tax 401K vs. Taxable Decision

or do a Roth in plan conversion and put the after tax money in my Roth 401 and the gains in the pre-tax 401K to be taxed later. I don't think you can separate the pre-tax gains from the after-tax dollars like this with an in-plan conversion, but i could be wrong. That is true, HOWEVER, you can alwa...
by nolesrule
Fri Jun 18, 2021 1:58 pm
Forum: Personal Investments
Topic: How much LTCG can I harvest this year?
Replies: 5
Views: 678

Re: How much LTCG can I harvest this year?

The 0% LTCG bracket ends at $80,800 taxable income for MFJ. Add in your standard or itemized deduction to that number to get the AGI threshhold inclusive of taxable gains.
by nolesrule
Fri Jun 18, 2021 1:52 pm
Forum: Personal Investments
Topic: After Tax 401K vs. Taxable Decision
Replies: 8
Views: 852

Re: After Tax 401K vs. Taxable Decision

paul63 wrote: Fri Jun 18, 2021 9:40 am or do a Roth in plan conversion and put the after tax money in my Roth 401 and the gains in the pre-tax 401K to be taxed later.
I don't think you can separate the pre-tax gains from the after-tax dollars like this with an in-plan conversion, but i could be wrong.
by nolesrule
Fri Jun 18, 2021 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Am I thinking about the mortgage interest deduction correctly?
Replies: 20
Views: 1196

Re: Am I thinking about the mortgage interest deduction correctly?

Your math is correct. Another way to think about it is that mortgage interest is only deductible for a narrow range of mortgage balance. Once your itemized deductions are less than the standard deduction, the mortgage becomes a non-deductible. If your interest rate were 3%, this happens when: $10,0...
by nolesrule
Fri Jun 18, 2021 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Am I thinking about the mortgage interest deduction correctly?
Replies: 20
Views: 1196

Re: Am I thinking about the mortgage interest deduction correctly?

Your math is correct. Another way to think about it is that mortgage interest is only deductible for a narrow range of mortgage balance. Once your itemized deductions are less than the standard deduction, the mortgage becomes a non-deductible. If your interest rate were 3%, this happens when: $10,0...
by nolesrule
Wed Jun 16, 2021 10:03 am
Forum: Personal Investments
Topic: New to SIMPLE IRA, Questions
Replies: 2
Views: 236

Re: New to SIMPLE IRA, Questions

Yes, you can contribute to both a SIMPLE IRA and a personal IRA. Since you are covered by a workplace plan, whether you can make deductible contributions to an IRA will depend on your modified AGI. This is not a factor for your wife's IRA since she is not employed. Contributions to a SIMPLE IRA do n...
by nolesrule
Wed Jun 16, 2021 8:57 am
Forum: Personal Investments
Topic: Pay off mortgage vs bonds in taxable (after maxing out other retirement)
Replies: 33
Views: 3117

Re: Pay off mortgage vs bonds in taxable (after maxing out other retirement)

It wasn’t no-fee but the refinance had us skip a payment so the fees were pretty reasonable. That's a typical "feature" of all mortgages, because the payment is in arrears. At closing you pay interest from closing to the end of the month. Then after the next month starts you get the bill ...
by nolesrule
Tue Jun 15, 2021 9:18 am
Forum: Personal Investments
Topic: Mega Backdoor Roth with a catch
Replies: 19
Views: 1394

Re: Mega Backdoor Roth with a catch

In my wife's plan with Fidelity as the custodian online amounts eligible for rollover while active include after-tax contributions + earnings and company match. However there is a specific withdrawal order specified in the plan documents and the after-tax + earnings comes out first. Since the rollov...
by nolesrule
Mon Jun 14, 2021 2:27 pm
Forum: Personal Investments
Topic: Selling entire position in an ETF - Vanguard
Replies: 6
Views: 613

Re: Selling entire position in an ETF - Vanguard

Vanguard will automatically sell them for you when you sell all the other lots.
by nolesrule
Mon Jun 14, 2021 9:22 am
Forum: Personal Investments
Topic: Am I calculating the tax cost of Vanguard LifeStrategy fund correctly?
Replies: 22
Views: 1790

Re: Am I calculating the tax cost of Vanguard LifeStrategy fund correctly?

Short term gains and non-qualified dividends are also subject to NIIT. It wasn't clear by the way you worded it if you included that in your calculations.
by nolesrule
Sun Jun 13, 2021 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Wiki - "Mega backdoor Roth" vs. After-tax 401(k)
Replies: 138
Views: 7440

Re: Wiki - "Mega backdoor Roth" vs. After-tax 401(k)

For consistency, I think "mega-backdoor Roth" is appropriate when capitalization isn't needed. (Capitalization is needed in the title or when starting a sentence.) Update: Corrected grammar. Just as an FYI, I ran it by a linguistics professor who stated that in the case where specific ter...
by nolesrule
Fri Jun 11, 2021 7:07 am
Forum: Personal Finance (Not Investing)
Topic: My auto insurance is crazy high
Replies: 57
Views: 6990

Re: My auto insurance is crazy high

Just so ya'll don't all move to NC, we could also talk about some other balancing factors, such as taxation of regular retirement income, capital gains, etc. :D I mentioned earlier in this thread I'm paying less today in auto insurance than I did 35 years ago when I lived in S. Florida. As you say ...
by nolesrule
Thu Jun 10, 2021 9:04 pm
Forum: Personal Investments
Topic: Should I invest in I Bonds?
Replies: 31
Views: 2514

Re: Should I invest in I Bonds?

Same here. Also, i think it's good to purchase the i-bonds in smaller chucks. Instead of buying 10K as 1 transaction, I made 10 x $1K purchase. So in case, i need to access it for emergency, I can redeem just enough to cover my situation, and I will not be forced to redeem the whole 10K. You can pa...
by nolesrule
Wed Jun 09, 2021 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Home seller (at-least initially) declined only offer at list price
Replies: 97
Views: 10509

Re: Home seller (at-least initially) declined only offer at list price

You can't have a bidding war without multiple bidders. Auction-type negotiation goes out the window when you only have one potential buyer. With a single bidder/buyer the listing's asking price is an anchoring price within the negotiation and since it's put forth by the seller, that's the max price ...
by nolesrule
Wed Jun 09, 2021 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: Wiki - "Mega backdoor Roth" vs. After-tax 401(k)
Replies: 138
Views: 7440

Re: Wiki - "Mega backdoor Roth" vs. After-tax 401(k)

I would have to agree with Lady Geek. Mega is not a noun. It is an adjective. Mega backdoor-Roth is just wrong (although I don't believe anyone suggested that one). Mega Backdoor Roth is kind of ok for the reasons given, but Mega-backdoor Roth is probably closest to correct in my opinion. My argume...
by nolesrule
Wed Jun 09, 2021 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Wiki - "Mega backdoor Roth" vs. After-tax 401(k)
Replies: 138
Views: 7440

Re: Wiki - "Mega backdoor Roth" vs. After-tax 401(k)

I'm going to put forth a counter-argument that Mega Backdoor Roth should be instead be Mega-backdoor Roth . First, Roth is the name of the US senator who created the account type (See: Roth IRA ). Names are always capitalized. Next, "Mega" is an SI unit prefix meaning Million. See: Mega- ...
by nolesrule
Wed Jun 09, 2021 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Wiki - "Mega backdoor Roth" vs. After-tax 401(k)
Replies: 138
Views: 7440

Re: Wiki - "Mega backdoor Roth" vs. After-tax 401(k)

Perhaps, but we need to follow Wikipedia guidelines for page and section titles. See: Wikipedia:Manual of Style - Wikipedia (Capital letters) Wikipedia article titles and section headings use sentence case, not title case; For consistency, it's best to stick with one convention. I'm going to put fo...
by nolesrule
Tue Jun 08, 2021 1:17 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Contributions - Treated as regular contribution for withdrawal purposes?
Replies: 13
Views: 654

Re: Mega Backdoor Roth Contributions - Treated as regular contribution for withdrawal purposes?

As stated above, the MBR is a conversion, it gets the same treatment as any other conversion, including "waiting in line." That is, you take out any and all direct contributions first. Then you take out the tax free portion of your oldest conversion (ie, backdoor or MBR contributions, not...
by nolesrule
Thu Jun 03, 2021 7:46 am
Forum: Personal Investments
Topic: SOLO 401K AND W2 401K
Replies: 9
Views: 667

Re: SOLO 401K AND W2 401K

Is your self employment an S-Corp with W-2 salary or are you using Schedule C as a sole proprietor? The employer max contribution calculations are a bit different depending on which, because compensation is defined/calculated differently.
by nolesrule
Wed Jun 02, 2021 4:18 pm
Forum: Personal Investments
Topic: Any Tax Benefit to Investing in Same Stock?
Replies: 40
Views: 2648

Re: Any Tax Benefit to Investing in Same Stock?

The primary difference between investing in one company with 20 purchases over 12 months and investing serially in 12 different companies is going to be the performance of the stocks, and that's not something that can be predicted with any certainty. The other issues is you are buying shares at var...
by nolesrule
Wed Jun 02, 2021 7:01 am
Forum: Personal Finance (Not Investing)
Topic: Is my 401k company lying to me?
Replies: 28
Views: 3538

Re: Is my 401k company lying to me?

Despite some others giving you a hard time, and employer failing to make properly elected deferrals is indeed a plan error and needs to be remedied by the employer. https://www.irs.gov/retirement-plans/fixing-common-plan-mistakes-correcting-a-failure-to-effect-employee-deferral-elections That said, ...
by nolesrule
Mon May 31, 2021 2:03 pm
Forum: Personal Investments
Topic: Need to track employer 401k match when switching between traditional 401k to from Roth 401k?
Replies: 5
Views: 477

Re: Need to track employer 401k match when switching between traditional 401k to from Roth 401k?

My spouse have an old 401k account where she previously switched between 401k Traditional and Roth method a few times. 401k account online shows the balance broken out by "Roth contribution", "Traditional contribution", and "Employer contribution". We're looking to rol...
by nolesrule
Sat May 29, 2021 12:28 am
Forum: Personal Investments
Topic: Backdoor Roth ?
Replies: 23
Views: 1790

Re: Backdoor Roth ?

Let me see if I can find and link to that post. Please do. Here it is. Disclaimer: my post was based on my understanding. If anyone finds any flaws, feel free to call them our. Well, you don't mention tax brackets at all, and if you have to do backdoor Roth, one is almost always in the 24% marginal...
by nolesrule
Fri May 28, 2021 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Yet another pre vs. post tax savings question, with some unique details
Replies: 22
Views: 1334

Re: Yet another pre vs. post tax savings question, with some unique details

Here is additional information - We have access to 401k (up to 58k each), 403b (19.5 each), and 457 (19.5 each), HSA, and Backdoor roth - no social security contribution and benefit down the road (state employees of some states have this) - no pension. How much of that $58k into 401k is pre-tax (de...
by nolesrule
Thu May 27, 2021 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: Is maxing out tradition 401K when in 12% tax bracket make sense?
Replies: 104
Views: 6981

Re: Is maxing out tradition 401K when in 12% tax bracket make sense?

You could also look to see if they allow you to roll your Roth 401K contributions while you're employed. ("In-service withdrawals.") I checked the plans documents and I found the following: You may withdraw amounts from accounts for rollover contributions at any time. Conditions and Limit...
by nolesrule
Thu May 27, 2021 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Is maxing out tradition 401K when in 12% tax bracket make sense?
Replies: 104
Views: 6981

Re: Is maxing out tradition 401K when in 12% tax bracket make sense?

You could also look to see if they allow you to roll your Roth 401K contributions while you're employed. ("In-service withdrawals.") I checked the plans documents and I found the following: You may withdraw amounts from accounts for rollover contributions at any time. Conditions and Limit...
by nolesrule
Thu May 27, 2021 11:49 am
Forum: Personal Investments
Topic: Portfolio Questions
Replies: 18
Views: 1158

Re: Reallocating across taxable and Roth accts.

You would have to manually adjust the basis on your tax return for the number of shares that were repurchased in the Roth account within 30 days.
by nolesrule
Mon May 24, 2021 2:19 pm
Forum: Personal Investments
Topic: House as portion of "bond" portfolio?
Replies: 45
Views: 4073

Re: House as portion of "bond" portfolio?

What I've done is using my original amortization for my mortgage as a comparison, determined how far ahead I am with the loan balance due to any prepayment. That difference is counted toward my fixed income allocation. This comparison will continue until the original amortization completes, which wi...
by nolesrule
Mon May 24, 2021 6:49 am
Forum: Personal Investments
Topic: Is Anyone 100% International In Either Their 401k or Roth?
Replies: 24
Views: 3329

Re: Is Anyone 100% International In Either Their 401k or Roth?

We were 100% Total International in our Roth IRAs, but we've been slowly adding Total World (VTWAX) the last couple of years and migrating some of the VTIAX tothat as we invest more money in our taxable account.
by nolesrule
Sat May 22, 2021 8:56 am
Forum: Personal Investments
Topic: Any Tax Benefit to Investing in Same Stock?
Replies: 40
Views: 2648

Re: Any Tax Benefit to Investing in Same Stock?

The primary difference between investing in one company with 20 purchases over 12 months and investing serially in 12 different companies is going to be the performance of the stocks, and that's not something that can be predicted with any certainty. The other issues is you are buying shares at vary...
by nolesrule
Fri May 21, 2021 7:25 am
Forum: Personal Investments
Topic: Qualified Dividends question
Replies: 8
Views: 777

Re: Qualified Dividends question

Thank you for the prompt responses. Nice to know that the dividends are taxed progressively, like income. So if for instance, I have $0 income outside of these dividends for 2021, would I then be able to move up to $24,800 (married) (standard deduction amount) from my Traditional IRA to Roth IRA ta...
by nolesrule
Fri May 21, 2021 6:38 am
Forum: Personal Investments
Topic: Any Tax Benefit to Investing in Same Stock?
Replies: 40
Views: 2648

Re: Any Tax Benefit to Investing in Same Stock?

The cost basis is just what you pay for each individual share. When you sell, it's still what you pay for each individual share, so when you sell more than one purchase lot but not all the capital gain will depend on which shares you sell.
by nolesrule
Fri May 21, 2021 6:28 am
Forum: Personal Investments
Topic: Qualified Dividends question
Replies: 8
Views: 777

Re: Qualified Dividends question

No. In this scenario, you'd pay zero on the standard deduction, zero on money that falls into the 0%, 15% an the money that falls in that bracket, and 20% on money that falls in that bracket. Check out the Qualified Dividends and Long Term Capital Gains Worksheet to see how it's calculated. Addition...
by nolesrule
Thu May 20, 2021 7:46 pm
Forum: Personal Investments
Topic: Mega backdoor Roth Newbie
Replies: 7
Views: 1136

Re: Mega backdoor Roth Newbie

Avogato wrote: Thu May 20, 2021 7:40 pm Currently pre tax bucket is $0.
Are you making pre-tax contributions also or did you mean after-tax? What contributions are you actually making to your 401k?
the opportunity to increase Roth dollars in my tax deferred accounts.
by definition Roth is not tax-deferred. :wink: