Search found 1918 matches

by nolesrule
Mon May 17, 2021 1:04 pm
Forum: Personal Investments
Topic: HM Bradley - is it safe - FDIC response
Replies: 32
Views: 2181

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: 848

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: 363

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: 848

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: 363

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: 1812

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: 55
Views: 5151

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...
by nolesrule
Sun May 16, 2021 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Resolved. First time filing taxes after opening an individual 401k in 2020
Replies: 9
Views: 815

Re: First time filing taxes after opening an individual 401k in 2020 (help requested!)

I've been playing around with fake numbers to see if I want to make more standard or more Roth employee contributions next year. Is there a reason a $15,000 employer contribution reduces my taxes by approx $3,200 and an employee contribution of the same amount only reduces them by around $2900? I t...
by nolesrule
Sun May 16, 2021 9:43 am
Forum: Personal Investments
Topic: What's Your Rebalancing Workflow?
Replies: 26
Views: 2329

Re: What's Your Rebalancing Workflow?

I use a spreadsheet with GOOGLEFINANCE function also. The only other manual updates are from the 401k accounts (whenever I feel like) and Treasury Direct accounts (monthly) by pasting in tables which then get pulled into the main sheet via VLOOKUP, or when I buy new shares in the taxable account (mo...
by nolesrule
Sun May 16, 2021 7:51 am
Forum: Personal Investments
Topic: I Bond buy date
Replies: 19
Views: 1812

Re: I Bond buy date

I set up a recurring purchase schedule for the 26th. This way it will never bump into the next month regardless of weekends or holidays or length of the month (I'm talking about you February). Does it get credited on your set purchase date or a couple of days later? It gets credited on the first bu...
by nolesrule
Sun May 16, 2021 7:40 am
Forum: Personal Investments
Topic: I Bond buy date
Replies: 19
Views: 1812

Re: I Bond buy date

I set up a recurring purchase schedule for the 26th. This way it will never bump into the next month regardless of weekends or holidays or length of the month (I'm talking about you February).
by nolesrule
Sat May 15, 2021 2:14 pm
Forum: Personal Investments
Topic: I-Bonds and EE Bonds in Portfolio [in your 20's]
Replies: 51
Views: 4261

Re: I-Bonds and EE Bonds in Portfolio [in your 20's]

csm14 wrote: Sat May 15, 2021 12:19 pm Fair question. I did it out of principle just to have some extra diversification but I think I'll keep buying I-Bonds and just move to 100% equities.
What about your 401k? Does that not have decent bond choices?
by nolesrule
Sat May 15, 2021 11:36 am
Forum: Personal Investments
Topic: I-Bonds and EE Bonds in Portfolio [in your 20's]
Replies: 51
Views: 4261

Re: I-Bonds and EE Bonds in Portfolio [in your 20's]

Based on this-any reason that someone like me shouldn't use I-Bonds each year as opposed to BND (Bond ETF) in my portfolio? Other than the federal tax implications since I have BND in my ROTH IRA. Seems like I-Bonds serve the same purpose with more benefits. Why are you holding bonds in your Roth I...
by nolesrule
Fri May 14, 2021 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Does HSA have to be in name of primary healthcare beneficiary?
Replies: 7
Views: 738

Re: Does HSA have to be in name of primary healthcare beneficiary?

Hmmm I was thinking I will be paying 15.3% in payroll taxes on the amount AFTER I deduct out my regular 401k and HSA. 401k contributions do not reduce SS and Medicare taxes. Only payroll deduction contributions to an HSA reduce SS and Medicare taxes. The income adjustment for contributions to an HS...
by nolesrule
Fri May 14, 2021 1:30 pm
Forum: Personal Investments
Topic: 2020 Backdoor Roth Conversion - Does this work?
Replies: 10
Views: 562

Re: 2020 Backdoor Roth Conversion - Does this work?

Separate conversions in the same account won't really make things cleaner as far as the paperwork or 8606 reporting because the custodian will only issue a single 1099-R for the year which will include all distributions/conversions in total.
by nolesrule
Fri May 14, 2021 9:38 am
Forum: Personal Investments
Topic: Backdoor Roth Screw up
Replies: 6
Views: 634

Re: Backdoor Roth Screw up

raidman wrote: Thu May 13, 2021 11:19 pm Of course, we can still do the conversion up until next Monday.
There are no deadlines for Roth conversions. They can be done at anytime.
by nolesrule
Thu May 13, 2021 1:02 pm
Forum: Personal Investments
Topic: Roth IRA vs. Traditional IRA
Replies: 50
Views: 3092

Re: Roth IRA vs. Traditional IRA

Can you make deductible contributions to a traditional IRA?

https://www.irs.gov/retirement-plans/20 ... an-at-work
by nolesrule
Wed May 05, 2021 6:40 pm
Forum: Personal Investments
Topic: Solo 401K (Keogh) Over Contribution
Replies: 12
Views: 832

Re: Solo 401K (Keogh) Over Contribution

And just to reiterate one more time... in order to be able to make the entire $57k as an employER contribution your Self Employed net income (from Schedule C) - 1/2 SE taxes would need to be $285k or more, because the employer contribution for a sole proprietor is limited to 20% of profits.
by nolesrule
Wed May 05, 2021 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Refinance my Mortgage?
Replies: 4
Views: 330

Re: Should I Refinance my Mortgage?

Lenders credits? I’ll ask about these. The offer I mentioned was for a 15 year loan. Do you mean is the closing costs prepaying any part of my loan? I don’t believe so, I’ll check. Prepaids are part of the costs to close that involve costs that aren't actually related to getting a new loan. That wo...
by nolesrule
Wed May 05, 2021 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Should I Refinance my Mortgage?
Replies: 4
Views: 330

Re: Should I Refinance my Mortgage?

Does that closing cost amount include any prepaids (interest, property taxes, insurance)? Because if not you won't break even in a 5 year payoff. On the current loan you'd need a payment around ~$1805 and on the new loan a payment of ~1770 to have it paid off in 60 months. The difference in interest...
by nolesrule
Wed May 05, 2021 10:44 am
Forum: Personal Investments
Topic: Roth IRA for 13 yo kid
Replies: 28
Views: 2750

Re: Roth IRA for 13 yo kid

Getting paid for household tasks within your own household is not considered earned income.
by nolesrule
Wed May 05, 2021 10:08 am
Forum: Personal Investments
Topic: Solo 401K (Keogh) Over Contribution
Replies: 12
Views: 832

Re: Solo 401K (Keogh) Over Contribution

I thought that to be the case; otherwise someone could theoretically open up multiple companies and keep contributing the max to separate solo accounts? Nope. Having common ownership of 80%+ in multiple business is considered a Controlled group and they would share a 401k and have a single max cont...
by nolesrule
Wed May 05, 2021 7:58 am
Forum: Personal Finance (Not Investing)
Topic: 1099 vs W2
Replies: 24
Views: 1552

Re: 1099 vs W2

I'm not sure how that all works if you are at the limits for SS and Medicare but this is a general overview of how it might work. There are no limits to Medicare taxes. For Social Security taxes Schedule SE takes into account SS wages from the W-2 job for adjusting the SS wage cap on SE income. If ...
by nolesrule
Wed May 05, 2021 7:04 am
Forum: Personal Investments
Topic: Solo 401K (Keogh) Over Contribution
Replies: 12
Views: 832

Re: Solo 401K (Keogh) Over Contribution

Hi All, Yes the income was totally sufficient. I made the contributions throughout the year in 2020. I thought about having Fidelity move them for 2021- but the deposits weren’t made at any point this year so they aren’t willing to do that. Any ideas or directions? Making employee contributions at ...
by nolesrule
Tue May 04, 2021 11:21 am
Forum: Personal Finance (Not Investing)
Topic: 1099 vs W2
Replies: 24
Views: 1552

Re: 1099 vs W2

And, as you note, 401k contributions are capped. $19,500 employee max, $6,500 catch-up if 50 or older, and $58,000 for 2021 including company contributions ($64,500 with catchup). If you're hitting those numbers with one employer, then you can't do anything else in a solo 401k. And that's whether i...
by nolesrule
Tue May 04, 2021 6:35 am
Forum: Personal Investments
Topic: Solo 401K (Keogh) Over Contribution
Replies: 12
Views: 832

Re: Solo 401K (Keogh) Over Contribution

Was the income for your company high enough to support the entire $57k contribution as an employer contribution? And are you a Schedule C SP or an S-Corp?
by nolesrule
Sun May 02, 2021 9:13 am
Forum: Personal Finance (Not Investing)
Topic: House appraisal in insane market
Replies: 85
Views: 11063

Re: House appraisal in insane market

My son signed a contract 8 months ago for new construction, 400K The developer is currently selling that model in that same subdivision starting at 460. They close in 2 weeks. The appraisal just came in at 380. Oops. It's sort of stupid, isn't it? You get a bunch of people literally agreeing to buy...
by nolesrule
Thu Apr 29, 2021 7:48 am
Forum: Personal Investments
Topic: Understanding capital gains distributions to shareholders
Replies: 10
Views: 1153

Re: Understanding capital gains distributions to shareholders

I would expect there to be capital gains distributions in a Balanced fund most years. https://investor.vanguard.com/mutual-funds/profile/distributions/vbiax Note that there were capital gains distributions in all past quarters with the exception of the 2 quarters immediately following last years mar...
by nolesrule
Wed Apr 28, 2021 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Limited W2 salary: 457b or Dependent Care FSA?
Replies: 17
Views: 790

Re: Limited W2 salary: 457b or Dependent Care FSA?

Just as an FYI, the Child and Dependent Care Expense credit doesn't phase out to zero. it phases down. There is no income amount at which you will not qualify for the expense credit in some amount, assuming the expense cap isn't entirely consumed by DCFSA reimbursements. For 2021, it seems the rece...
by nolesrule
Wed Apr 28, 2021 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Limited W2 salary: 457b or Dependent Care FSA?
Replies: 17
Views: 790

Re: Limited W2 salary: 457b or Dependent Care FSA?

Is this a spouse employment or a second job? What about SS and medicare taxes? The DCFSA reduces both. If spouse, are they subject to social security withholding and if so do they need the SS wages or is the plan to claim spousal SS? Also the DCFSA reduces medicare wages, all of which would also be ...
by nolesrule
Wed Apr 28, 2021 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Limited W2 salary: 457b or Dependent Care FSA?
Replies: 17
Views: 790

Re: Limited W2 salary: 457b or Dependent Care FSA?

Just as an FYI, the Child and Dependent Care Expense credit doesn't phase out to zero. it phases down. There is no income amount at which you will not qualify for the expense credit in some amount, assuming the expense cap isn't entirely consumed by DCFSA reimbursements. For 2021, it seems the rece...
by nolesrule
Wed Apr 28, 2021 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Limited W2 salary: 457b or Dependent Care FSA?
Replies: 17
Views: 790

Re: Limited W2 salary: 457b or Dependent Care FSA?

457. You’ll be able to get child care tax credits in place of the FSA. Would your answer change if I am unable to get these credits due to AGI phase out? Just as an FYI, the Child and Dependent Care Expense credit doesn't phase out to zero. it phases down. There is no income amount at which you wil...
by nolesrule
Wed Apr 28, 2021 9:01 am
Forum: Personal Investments
Topic: Solo 401K (Keogh) Over Contribution
Replies: 12
Views: 832

Re: Solo 401K (Keogh) Over Contribution

would the income have supported the full amount coming from employer contributions or do you truly have excess contributions?
by nolesrule
Tue Apr 27, 2021 1:02 pm
Forum: Investing - Theory, News & General
Topic: I don’t understand why tax loss harvesting is that beneficial
Replies: 118
Views: 9053

Re: I don’t understand why tax loss harvesting is that beneficial

Tax loss harvesting is awesome if you have a sizeable taxable account and don’t feel an obligation to hold the perfect three fund portfolio. I flipped all over the place in March 20 and saved a boatload. I do agree that at one point I ran out of funds and had to start asking questions about what ba...
by nolesrule
Mon Apr 26, 2021 12:22 pm
Forum: Investing - Theory, News & General
Topic: I don’t understand why tax loss harvesting is that beneficial
Replies: 118
Views: 9053

Re: I don’t understand why tax loss harvesting is that beneficial

From a computer (i.e. not the mobile app, don't know if it's easy/possible there), log into Fidelity, click on the account, click the Portfolio tab, then click on the ticker. Should open up a box below that shows your purchase history with total gain/loss and percentage per purchase. Given that the...
by nolesrule
Mon Apr 26, 2021 9:35 am
Forum: Personal Investments
Topic: How to Invest Extra Cash - Bonds vs Pay Down Mortage?
Replies: 13
Views: 1786

Re: How to Invest Extra Cash - Bonds vs Pay Down Mortage?

Is that true if most of the interest is already been paid up front? Interest on the mortgage loan is front loaded, so I thought that towards the end the effective interest rate diminishes. Am I wrong about that? Interest is calculated each month based on the monthly balance and the interest rate. I...
by nolesrule
Sun Apr 25, 2021 10:02 am
Forum: Personal Investments
Topic: Solo 401k contributed as Employer instead of Employee how to fix?
Replies: 30
Views: 1543

Re: Solo 401k contributed as Employer instead of Employee how to fix?

For the authoritative accurate calculation, see the Worksheet in Publication 560 (make sure it's the 2020 version).

https://www.irs.gov/pub/irs-pdf/p560.pdf

See Chapter 6.
by nolesrule
Sun Apr 25, 2021 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Dividends getting full income tax
Replies: 9
Views: 1000

Re: Dividends getting full income tax

Ugh... reduces our maximum to ~$10k. Can't believe I may have to do a backdoor roth for $2k. Any tricks/tips? Like can I do a regular roth for 1 of us and a backdoor for the other? You're likely nearing the income point where you'll have to start doing them regularly unless the rate of income incre...
by nolesrule
Sat Apr 24, 2021 7:31 pm
Forum: Investing - Theory, News & General
Topic: Dividend Portfolio (SCHD) vs Stock-Bond (VTI-BND) Portfolio
Replies: 130
Views: 7499

Re: Dividend Portfolio (SCHD) vs Stock-Bond (VTI-BND) Portfolio

Has anyone bothered to change the start date to 1999 or 2000 and measured it out for 10 years? You'll have to pick out some alternate ETFs/Funds because not all of them existed then. You'll notice a bit of a different result for the 100% vs 70/30 portfolio..
by nolesrule
Thu Apr 22, 2021 11:41 am
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 336
Views: 18289

Re: "Mortgage is a negative bond" - please help me understand

The decision to take out a mortgage is separate and distinct from the decision of what to do with excess cash flow in regards to paying it off. Would I take out a mortgage on a paid off house to invest the proceeds? Would I take out a mortgage because I couldn't buy the house I plan to live in witho...
by nolesrule
Wed Apr 21, 2021 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Job Offer - Company won't put bonus info in offer letter or in writing
Replies: 40
Views: 4253

Re: Job Offer - Company won't put bonus info in offer letter or in writing

If it's not in the offer letter, then they can come back and say "what bonus?" later.
by nolesrule
Tue Apr 20, 2021 7:57 am
Forum: Investing - Theory, News & General
Topic: Any Reason to NOT max out I Bonds and EE Bonds
Replies: 80
Views: 7668

Re: Any Reason to NOT max out I Bonds and EE Bonds

Couple of questions on EE bonds: 1. If I max out 10k for I bonds, I can still buy 10K of EE bonds or is it either or? 2. Like I bonds, EE bonds do not carry state or federal taxes? 1. Yes. 2. No state taxes. Federal taxes are deferred until you redeem. Although you do have the option of paying taxe...
by nolesrule
Tue Apr 20, 2021 7:06 am
Forum: Personal Finance (Not Investing)
Topic: "Nobody's ever regretted paying off the mortgage."
Replies: 492
Views: 35020

Re: "Nobody's ever regretted paying off the mortgage."

Paying down does not improve cash flow by one penny. Paying down your mortgage can improve cash flow if you elect to recast your mortgage during the course of your mortgage pay down process. Our monthly PITI used to be $1,600.00/month but now it is around $775.00/month due to recasting our mortgage...
by nolesrule
Sun Apr 18, 2021 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Prepay Mortgage as EF
Replies: 9
Views: 672

Re: Prepay Mortgage as EF

If you mean prepay your monthly payments, then they won't get applied until they are due so you won't save on interest. I'm also not sure a lender will do that much in advance. If you mean prepay an amount equal to 6 months worth of payments against the principal balance, sure you'll save the intere...
by nolesrule
Fri Apr 16, 2021 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: "Nobody's ever regretted paying off the mortgage."
Replies: 492
Views: 35020

Re: "Nobody's ever regretted paying off the mortgage."

That's not true if you keep your payments the same amount they were. Just because the liability is reduced (in my case to 775/month) - you can still pay the old amount. We have kept the same overpayment schedule for a little while now. . .1,764.00 every 2 weeks But if you do that you haven't improv...
by nolesrule
Fri Apr 16, 2021 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax Misc 2021
Replies: 10
Views: 772

Re: Kiddie Tax Misc 2021

Just be careful about other sources of unearned income. Bank interest and dividends will also contribute toward the total unearned income. We were a little overzealous this year with Tax Gain Harvesting our kids' UTMA brokerage accounts and STCG + interest + non-qualified dividends exceeded $1100 so...
by nolesrule
Fri Apr 16, 2021 7:03 am
Forum: Personal Finance (Not Investing)
Topic: "Nobody's ever regretted paying off the mortgage."
Replies: 492
Views: 35020

Re: "Nobody's ever regretted paying off the mortgage."

Paying down your mortgage can improve cash flow if you elect to recast your mortgage during the course of your mortgage pay down process. Our monthly PITI used to be $1,600.00/month but now it is around $775.00/month due to recasting our mortgage during pay down. We will have our mortgage hopefully...
by nolesrule
Thu Apr 15, 2021 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: "Nobody's ever regretted paying off the mortgage."
Replies: 492
Views: 35020

Re: "Nobody's ever regretted paying off the mortgage."

Paying down does not improve cash flow by one penny. Paying down your mortgage can improve cash flow if you elect to recast your mortgage during the course of your mortgage pay down process. Our monthly PITI used to be $1,600.00/month but now it is around $775.00/month due to recasting our mortgage...
by nolesrule
Thu Apr 15, 2021 11:49 am
Forum: Investing - Theory, News & General
Topic: I Bonds variable rate @ 3.54% in May
Replies: 208
Views: 28561

Re: I Bonds variable rate @ 3.54% in May

Remember that an I Bond purchase is illiquid for the first year (you can't sell it) and there is a 3 month interest penalty for redemptions in the first 5 years. I don't see why people would be inclined to sell stocks to get this I Bond interest rate that's only guaranteed for 6 months. I Bonds are ...
by nolesrule
Wed Apr 14, 2021 6:26 pm
Forum: Investing - Theory, News & General
Topic: I Bonds variable rate @ 3.54% in May
Replies: 208
Views: 28561

Re: I Bonds variable rate @ 3.54% in May

We just do automatic monthly purchases from new income.