Search found 1961 matches

by nolesrule
Fri Jun 18, 2021 1:58 pm
Forum: Personal Investments
Topic: How much LTCG can I harvest this year?
Replies: 4
Views: 370

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: 7
Views: 574

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: 19
Views: 764

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: 19
Views: 764

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: 227

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: 3071

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: 1371

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: 603

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: 1762

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: 7388

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: 6948

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: 2496

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: 10460

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: 7388

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: 7388

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: 7388

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: 648

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: 661

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: 2645

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: 3533

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: 474

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: 1778

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: 1317

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: 6958

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: 6958

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: 1156

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: 4055

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: 3326

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: 2645

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: 770

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: 2645

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: 770

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: 1085

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:
by nolesrule
Thu May 20, 2021 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Health care FSA and spouse HSA
Replies: 9
Views: 570

Re: Health care FSA and spouse HSA

Just a reminder that OP has not stated an LPFSA is available. Usually those are only offered through an employer that is also offering an HSA. I have yet to see an employer that offers an FSA and LPFSA. That said, if a LPFSA is available, I'd use it for reimbursement of known dental and vision while...
by nolesrule
Thu May 20, 2021 1:58 pm
Forum: Investing - Theory, News & General
Topic: How fast have the cap gains tax brakets moved over time?
Replies: 9
Views: 1284

Re: How fast have the cap gains tax brakets moved over time?

Unless changed by law, the bracket ranges are adjusted annually based on an inflation index.
by nolesrule
Thu May 20, 2021 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Unexpectedly Ineligible for Roth IRA
Replies: 27
Views: 2178

Re: Unexpectedly Ineligible for Roth IRA

[...] Nice to know. Thanks! We will probably be "eligible" to backdoor within the year or so! an_asker , if you are that close to being 'eligible' to backdoor Roth, you should consider just starting now. That way there's no chance you will be :shock: like mnsportsgeek or like I was last y...
by nolesrule
Thu May 20, 2021 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Unexpectedly Ineligible for Roth IRA
Replies: 27
Views: 2178

Re: Unexpectedly Ineligible for Roth IRA

From a technical standpoint, it often is good to leave just $1 or change in the traditional IRA to avoid closing and reopening the account. I do that on Merrill Edge... contribute my $6,000 the first business day of the new year, then wait for the funds to settle before transferring all but a dolla...
by nolesrule
Thu May 20, 2021 7:01 am
Forum: Personal Finance (Not Investing)
Topic: Unexpectedly Ineligible for Roth IRA
Replies: 27
Views: 2178

Re: Unexpectedly Ineligible for Roth IRA

From a technical standpoint, it often is good to leave just $1 or change in the traditional IRA to avoid closing and reopening the account. I do that on Merrill Edge... contribute my $6,000 the first business day of the new year, then wait for the funds to settle before transferring all but a dolla...
by nolesrule
Tue May 18, 2021 9:52 am
Forum: Personal Investments
Topic: Early Withdrawal Penalty on Roth Conversion - Turbo Tax
Replies: 16
Views: 1003

Re: Early Withdrawal Penalty on Roth Conversion - Turbo Tax

So I gather that if the 1099 R is coded correctly, TurboTax will add on the penalty but they call it "other taxes" instead of "penalty". That's because technically it's an additional tax on early distribution. The title on Form 5329 is "Additional Taxes on Qualified Plans (...
by nolesrule
Tue May 18, 2021 9:30 am
Forum: Personal Investments
Topic: Potential Roth Over-Contribution Scenario / Question
Replies: 3
Views: 184

Re: Potential Roth Over-Contribution Scenario / Question

You can request from the custodian to recharacterize the contribution from one type of IRA account to the other type (TIRA to Roth or Roth to TIRA). This treats the contribution as if it was the second type the entire time. The other option is to request from the custodian a return of excess contrib...
by nolesrule
Tue May 18, 2021 9:22 am
Forum: Personal Investments
Topic: Early Withdrawal Penalty on Roth Conversion - Turbo Tax
Replies: 16
Views: 1003

Re: Early Withdrawal Penalty on Roth Conversion - Turbo Tax

Yesterday I compared a single 41 year old to a single 71 year old - the only income being a $30,000 Roth conversion (with no IRA basis). The tax changed, but exactly the amount expected due to the change in standard deduction. What about the income for the withdrawal for the taxes? That is a non-co...
by nolesrule
Tue May 18, 2021 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth conversion and confusion
Replies: 29
Views: 1932

Re: Backdoor Roth conversion and confusion

As far as I can tell, there is no such thing as SEP 401k. There is a SEP IRA though. It is critical to know which one you have because rolling the money from the CDs to SEP IRA will not solve your problem. This for sure it is SEP401K. Here is what I have https://www.fidelity.com/retirement-ira/smal...
by nolesrule
Tue May 18, 2021 9:09 am
Forum: Personal Investments
Topic: Early Withdrawal Penalty on Roth Conversion - Turbo Tax
Replies: 16
Views: 1003

Re: Early Withdrawal Penalty on Roth Conversion - Turbo Tax

Yesterday I compared a single 41 year old to a single 71 year old - the only income being a $30,000 Roth conversion (with no IRA basis). The tax changed, but exactly the amount expected due to the change in standard deduction. What about the income for the withdrawal for the taxes? That is a non-co...
by nolesrule
Mon May 17, 2021 1:04 pm
Forum: Personal Investments
Topic: HM Bradley - is it safe - FDIC response
Replies: 57
Views: 8517

Re: HM Bradley - is it safe - FDIC response

... Didn't Bernie Madoff put $64B in an FDIC bank? I don't think that's the case, $64B is roughly the amount he claimed to have in various stock market investments. Although JP Morgan did wind up paying out some sort of settlement in the scandal, related to failing to report the suspicious activity...
by nolesrule
Mon May 17, 2021 11:47 am
Forum: Personal Finance (Not Investing)
Topic: [Form 8606 - What do I enter for the post-withholding amount?]
Replies: 19
Views: 975

Re: [Form 8606 - What do I enter for the post-withholding amount?]

retiredjg wrote: Mon May 17, 2021 11:29 am nolesrule, you get the prize! :happy
You're the one who's always bringing up the notion that filling out the 8606 correctly is the hard part, and this just shows how right you are. :mrgreen:
by nolesrule
Mon May 17, 2021 11:09 am
Forum: Personal Finance (Not Investing)
Topic: SSA earnings record off
Replies: 6
Views: 420

Re: SSA earnings record off

Income from self employment won't be reported to SS until you file your income taxes which include Schedule C and Schedule SE, which determine your SS eligible income and taxes paid. The 1099s aren't enough because you could have other self-employment income without 1099s and expenses related to se...
by nolesrule
Mon May 17, 2021 9:48 am
Forum: Personal Finance (Not Investing)
Topic: [Form 8606 - What do I enter for the post-withholding amount?]
Replies: 19
Views: 975

Re: [Form 8606 - What do I enter for the post-withholding amount?]

Assuming an IRA with no basis, just the amount actually converted goes on line 16 and 18 of Form 8606. I'm not trying to be disagreeable and yes, that is what "net" means...but if this is correct, why did TT put the full amount on my Form 8606 line 16 and 18? :happy How much did you tell ...
by nolesrule
Mon May 17, 2021 9:38 am
Forum: Personal Finance (Not Investing)
Topic: SSA earnings record off
Replies: 6
Views: 420

Re: SSA earnings record off

Income from self employment won't be reported to SS until you file your income taxes which include Schedule C and Schedule SE, which determine your SS eligible income and taxes paid. The 1099s aren't enough because you could have other self-employment income without 1099s and expenses related to sel...
by nolesrule
Mon May 17, 2021 6:39 am
Forum: Personal Investments
Topic: I Bond buy date
Replies: 19
Views: 1938

Re: I Bond buy date

Scheduled transactions actually draw the funds from your bank on the date scheduled, not the next day. So If you scheduled for May 28th, it would be a May bond because the funds were drawn on the 28th. In fact by the time you wake up on the 28th, unless you are a very early bird, you'll see the bond...
by nolesrule
Sun May 16, 2021 12:00 pm
Forum: Personal Consumer Issues
Topic: Life events spent more than earned
Replies: 57
Views: 6047

Re: Life events spent more than earned

Spending is always lumpy. Things like property taxes, charitable donations, IRA contributions, home and auto insurance only happen certain times of year. Vacations tend to be paid mostly around the time of the trip. Home improvements costs are lumpy. Looking back over the past year we had negative m...