Search found 671 matches

by verbose
Sat Mar 16, 2024 2:51 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3323

Re: Retire in 7 years, getting close enough to plan

1. We are hoping to retire in about 7 years, when husband turns 59.5 (I will be 58). At that time, we would need to keep income under ACA thresholds for subsidies and probably withdraw some funds from the retirement accounts in addition to cash. I need a target for how much we need in taxable and how much we need to save each year on top of the maximum contributions to 401k, Roth and HSA. Right now, I think 300K might be right?? Target expenses $10k/month. (I may have overestimated, but I want to allow for travel, home improvements, new cars, medical, etc.) verbose, A) How is that possible with an annual expense of 120K per year? B) The good news is I do not think your estimate of retirement annual expense of 120K per year to be accurate. ...
by verbose
Sat Mar 16, 2024 2:47 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3323

Re: Retire in 7 years, getting close enough to plan

Unless I missed it your did not say what your expenses will be, what your Social Security will be, what your house is worth, and how large your mortgage and mortgage payment is. You can edit your post using the icon with the pencil on it to add that information so that you might get better responses. I edited the post. I didn't see the point of putting in a mortgage payment because even if we don't pre-pay it, it pays off in 7 years, which is right when we plan to retire. So, it will be gone. The monthly mortgage right now is $2248 (includes taxes and insurance). verbose, It may matter because you may not want to pay off the mortgage if you need to retire early. KlangFool Right, I don't want to pay it off early. This was originally a 15-ye...
by verbose
Sat Mar 16, 2024 2:42 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3323

Re: Retire in 7 years, getting close enough to plan

Ok, I wasn't clear in a few areas. Pension - Nope, nothing there. Social Security - yes. His/hers, his will be more but not much more than mine. I haven't started planning for what these amounts will be, realistically. Each year we don't work due to early retirement is a year that becomes a zero in the 35 years of income (at least, it does for me because I took some years off for childrearing). I haven't begun to think about what year we would claim SS either. Expenses: I have completed this exercise using actual numbers (I have tracking applications) and estimated the numbers for the years before Medicare and before Social Security. I included taxes. The number, which seems very high to me, is $10K/month, or $120K per year. Why is that num...
by verbose
Sat Mar 16, 2024 2:26 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3323

Re: Retire in 7 years, getting close enough to plan

Unless I missed it your did not say what your expenses will be, what your Social Security will be, what your house is worth, and how large your mortgage and mortgage payment is. You can edit your post using the icon with the pencil on it to add that information so that you might get better responses. I edited the post. I didn't see the point of putting in a mortgage payment because even if we don't pre-pay it, it pays off in 7 years, which is right when we plan to retire. So, it will be gone. The monthly mortgage right now is $2248 (includes taxes and insurance). I don't know about Social Security. The numbers from the SSA assume we will keep earning peak earnings (our earnings right now) until we are 67. That's not going to happen. I don'...
by verbose
Sat Mar 16, 2024 2:13 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3323

Re: Retire in 7 years, getting close enough to plan

sailaway wrote: Fri Mar 15, 2024 8:38 pm Does either 401k allow for after tax contributions that can become the Mega Backdoor Roth? If so, you may not need to add to taxable at all. This would help you control "income" for ACA purposes.
Each 401k plan allows for Roth contributions but the Roth and pre-tax contributions all have to fit into the IRS annual limit. So I think that's "no."
by verbose
Fri Mar 15, 2024 5:00 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3323

Retire in 7 years, getting close enough to plan

We want to retire in 7 years. I feel like we are getting close enough to actually plan the logistics of it. Prior to this, we've been saving as much as possible in tax-advantaged accounts, saving/paying for education, and clearing out debt, including paying down the mortgage before interest rates rose. Now, it's time to pivot from the accumulation phase to the pre-retirement phase (still accumulating, but with an end goal in mind). Emergency funds: 3 months expenses, split between bank and brokerage accounts Debt: Mortgage, 2.625%, 7 years left House: worth around $550k Estimated retirement expenses: $10k/month. It's a little far out to estimate this, but I've used actual numbers for the past year to figure this and adjusted for anticipated...
by verbose
Sat Feb 24, 2024 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: Vehicle damaged and liable party has low coverage limits
Replies: 45
Views: 4122

Re: Vehicle damaged and liable party has low coverage limits

scophreak wrote: Sat Feb 24, 2024 2:23 pm
Rotarman wrote: Fri Feb 23, 2024 6:35 pm - My insurance advised me this is NOT what uninsured/underinsured insurance is for(I carry both). That is only for bodily injury at least in my state, this will be a collision coverage claim thus my premium increasing and being on the hook for deductible
What state are you in?

I could be mistaken, but as far as I am aware, underinsured motorist coverage covers BOTH medical and property damage.
It's state-specific. For property damage, it's called uninsured property damage (UMPD). This coverage can be required, optional, or not available.

https://wallethub.com/edu/ci/uninsured- ... mage/92462
by verbose
Thu Feb 15, 2024 4:49 pm
Forum: Personal Consumer Issues
Topic: What email address is "okay/acceptable" to use then?
Replies: 168
Views: 18370

Re: What email address is "okay/acceptable" to use then?

I still have a few open email addresses ending in swbell.net. None of them are primary for anything, but they have their uses. They are still open because we’ve had the same ISP since the early 2000’s.
by verbose
Fri Feb 02, 2024 11:18 am
Forum: Investing - Theory, News & General
Topic: Unintentional trading violation at Schwab due to pending dividend reinvestment
Replies: 36
Views: 4169

Re: Unintentional trading violation at Schwab due to pending dividend reinvestment

Years ago, I worked as a software developer for a brokerage (not Schwab). One of my jobs was coding some of the trading validation rules. I think this is a Reg T violation. There are federal rules and Schwab has to detect this and notify you. That said, I’m surprised there wasn’t a warning when you placed the order stating that this might happen. You would then be able to ignore the warning and continue anyway or change the order. Their order platform should be able to do this. You could ask them about this. They will have a policy of how many of these violations you can get within a certain time period before they impose a settled cash only restriction on your account. And there’s likely a time period at which this violation “drops off” yo...
by verbose
Sun Dec 03, 2023 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: SECURE ACT 2.0 Roll over 529 to Roth
Replies: 60
Views: 7063

Re: SECURE ACT 2.0 Roll over 529 to Roth

We don't know until the IRS tells us the rules, but the requirements in the legislation are "a qualified tuition program of a designated beneficiary which has been maintained for the 15-year period ending on the date of such distribution," and "does not exceed the aggregate amount contributed to the program (and earnings attributable thereto) before the 5-year period ending on the date of the distribution." So did the account have $35,000 contributed to it (or earned) 5 years ago? From a literal interpretation, you could contribute and then distribute the same $3,500 each year for 10 years and that will be enough to meet the requirements. Yes, the account had over 35k in 2019. The account balance then went down signific...
by verbose
Sun Dec 03, 2023 10:14 am
Forum: Personal Finance (Not Investing)
Topic: SECURE ACT 2.0 Roll over 529 to Roth
Replies: 60
Views: 7063

Re: SECURE ACT 2.0 Roll over 529 to Roth

I am also awaiting guidance on this. My actual scenario is more complicated than a basic over-funding. My son passed away in 2022. For various reasons, I changed the beneficiary on his 529 to his older sister. The beneficiary change resulted in the funds being transferred into her 529 account and added to the existing balance. She is in college now and will graduate in 2024. Given that her degree should be immediately useful for a job in her field and her attitude toward academics, I think graduate school is a "probably never" for her. So the 529 is over-funded by quite a bit. She will be out of school for over half of 2024 and have enough earned income for a Roth contribution, so I would like to start the Roth conversion next yea...
by verbose
Tue Nov 28, 2023 10:54 am
Forum: Personal Consumer Issues
Topic: Returning food to the grocery store
Replies: 143
Views: 25998

Re: Returning food to the grocery store

I am absolutely terrified of returning products. I feel like I'm going to be judged and berated by the staff. But in my experience, that doesn't actually happen. Despite that, I have returned food. I've returned heavy cream for being spoiled on opening. I returned a bottle of expensive (to me) wine that smelled and tasted like musty basement. And I've returned fresh packaged meat a few times when it was clearly rotten on opening the packaging. I don't think I've ever returned produce, even though I've been repeatedly underwhelmed by the actual taste of grocery store produce. Every time I returned food I was excessively anxious, but the staff were very kind and apologized for the poor experience. Return the pie. It may have been gluten-free ...
by verbose
Thu Oct 26, 2023 11:30 am
Forum: Personal Consumer Issues
Topic: Safeco Right Track Drive Monitoring App - Anyone Tried?
Replies: 17
Views: 2711

Re: Safeco Right Track Drive Monitoring App - Anyone Tried?

I tried to use this. We had three drivers and three cars. Two of the drivers procrastinated on setting it up and never reviewed its findings (sometimes it detects driving that isn’t driving). One driver was set up incorrectly by the insurance agent and didn’t figure it out until halfway through, so they had no results. I was the only driver who attempted to complete the program, but I couldn’t do it. The 90-day time period elapsed before I had driven 500 miles. Now that I work from home, I just don’t drive that much. I drive more than any other family member, so even if they had actually tried to do it, it wasn’t going to work for them either. So, no, it didn’t work. Each driver has to ensure its set up correctly, review its results every ...
by verbose
Wed Oct 25, 2023 9:52 pm
Forum: Personal Consumer Issues
Topic: Safeco Right Track Drive Monitoring App - Anyone Tried?
Replies: 17
Views: 2711

Re: Safeco Right Track Drive Monitoring App - Anyone Tried?

I tried to use this. We had three drivers and three cars. Two of the drivers procrastinated on setting it up and never reviewed its findings (sometimes it detects driving that isn’t driving). One driver was set up incorrectly by the insurance agent and didn’t figure it out until halfway through, so they had no results. I was the only driver who attempted to complete the program, but I couldn’t do it. The 90-day time period elapsed before I had driven 500 miles. Now that I work from home, I just don’t drive that much. I drive more than any other family member, so even if they had actually tried to do it, it wasn’t going to work for them either. So, no, it didn’t work. Each driver has to ensure its set up correctly, review its results every f...
by verbose
Fri Jul 28, 2023 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Missouri vehicle sales tax credit from total loss
Replies: 3
Views: 3335

Re: Missouri vehicle sales tax credit from total loss

I think I messed this up. We just went to the DOR to transfer the title of the 2018 Civic to my daughter. I asked for the Bill of Sale back, but they kept it and said it was theirs. The place was so incredibly busy that by the time I had thought of what that meant, the rep was already helping another person. There were at least 50 people waiting. So now I need a copy of the bill of sale that the DOR kept. They also kept the notice at the bottom of the title. Maybe that was what I should have kept? But they have it now. I guess I just make a new bill of sale with identical details? At least I sold it to my daughter so I can get her signature on it again. I don't even remember what the mileage was! And asking them is very difficult. I mean, I...
by verbose
Fri Jul 21, 2023 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Security when wiring money over phone
Replies: 1
Views: 410

Security when wiring money over phone

Ok, this is really more of an experience I had and a "what if". I don't have an issue. But the recent thread about bank wire fraud after a SIM swap attack had me thinking. I made an agreement a month ago to buy a new car that wasn't manufactured yet. The money for the car was in my Fidelity taxable account. When they called and said the car was ready, I realized I didn't have three business days to potentially wait for ACH funds to reach my checking account (not with Fidelity). I know Fidelity has check-writing, but I've never needed it and I didn't activate it on my account. I was able to initiate a wire from Fidelity to my bank over the phone. I kept track of how they authenticated my transaction, given the recent thread. 1) Fid...
by verbose
Thu Jul 20, 2023 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: Missouri vehicle sales tax credit from total loss
Replies: 3
Views: 3335

Missouri vehicle sales tax credit from total loss

FYI, this is specific to Missouri. I'm not sure anything about this issue applies to other states. In case you wonder, in Missouri, we pay sales tax at the DOR (Department of Revenue, usually called DMV or BMV in other states) at the time we apply for a title after purchasing the vehicle (private sale or dealer sale). Currently (some law changes are in the works), the dealer cannot title cars, register cars or collect sales tax. Yes, sales tax is not included in the purchase price and usually not included in car loans and if you ever wondered why Missouri has so many vehicles driving on expired temporary tags, now you know (one reason, at least, there are others). Back to my issue... My adult child owned a vehicle that was on our family ins...
by verbose
Tue Jul 04, 2023 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Filing taxes for deceased relative, can I e-file?
Replies: 12
Views: 1027

Re: Filing taxes for deceased relative, can I e-file?

I filed a paper return and mailed it around April 15. The return had to be paper because the executor appointment was a required attachment. We didn't get our paperwork together and finalized until the last minute.

So, the refund is the last item keeping the estate open. I'm not surprised that "where's my refund" tells me nothing.

How long do we wait for a refund before trying to call the IRS? The IRS says 6 to 8 weeks, but what is actually an expected amount of time for this kind of paper return to be processed?
by verbose
Fri Jun 30, 2023 9:20 am
Forum: Personal Finance (Not Investing)
Topic: 529 qualified withdrawals
Replies: 14
Views: 1662

Re: 529 qualified withdrawals

From Pub 970 (emphasis added):
The expense for room and board qualifies only to the extent that it isn't more than the greater of the following two amounts.

The allowance for room and board, as determined by the school, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student.

The actual amount charged if the student is residing in housing owned or operated by the school.
This situation is addressed, and it's not favorable to your situation.
by verbose
Sat Apr 22, 2023 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Have you ever used your emergency fund?
Replies: 272
Views: 29058

Re: Have you ever used your emergency fund?

Yes, I’ve had to use it. I’ve dipped in just a little for travel-related emergencies—mostly cancelled flights. Ok a few occasions I’ve had to book new tickets immediately on another carrier and figure out the details with the cancellation later.

Last year we used most of our emergency fund for sudden and unexpected funeral costs for a young person. So, yes, we needed the emergency fund.
by verbose
Thu Mar 30, 2023 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Filing taxes for deceased relative, can I e-file?
Replies: 12
Views: 1027

Re: Filing taxes for deceased relative, can I e-file?

Ok, so my brother is the court appointed executor, based on my uncle’s will. I’m not sure what other status counts as personal representative—maybe when probate is not required? In this case, probate is required and is open. This seems to make it a paper return.

I’m curious how other posters submitted the return for a deceased taxpayer without the attachment.
by verbose
Thu Mar 30, 2023 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Filing taxes for deceased relative, can I e-file?
Replies: 12
Views: 1027

Re: Filing taxes for deceased relative, can I e-file?

To be clear, I’m concerned about signing the return in an e file. But it sounds like that isn’t an issue.
by verbose
Thu Mar 30, 2023 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Filing taxes for deceased relative, can I e-file?
Replies: 12
Views: 1027

Filing taxes for deceased relative, can I e-file?

My uncle died suddenly in January of this year. My brother is the executor and I'm helping with filing his taxes. He hadn't filed for 2022 yet. The return is going to be quite simple and I have all the information I need. There will be a small refund. Since my uncle was alive at the end of 2022, this is not his final return. The IRS is clear that my brother, as court-appointed executor, can sign the return and how he should do so. The refund is going to the estate (the estate has a TIN set up). My question: can I e-file this? If so, how? The IRS publications are silent on this issue. The estate is close to wrapping up and I don't want to wait for this tax refund because it was a paper return. My preferred tax service is FreeTaxUSA. I tried ...
by verbose
Wed Mar 15, 2023 6:44 pm
Forum: Personal Consumer Issues
Topic: Any Practical Advice for Parents of Rising College Freshman
Replies: 69
Views: 6627

Re: Any Practical Advice for Parents of Rising College Freshman

Be very glad that your rising freshman isn't starting during Covid. Mine started freshman year in 2020. Moving on... Meal plans: flexibility is key. Your college student may not skip meals, but the timing of the meals is unlikely to match traditional meal times. Without a listing of meal plan options, I can't say more. Freshman are often required to have a comprehensive meal plan while lighter/no meal plans are allowed for upperclassmen, who may have kitchens in their housing. Do not plan to go to Walmart on move-in weekend. At all. My kid's college is in a rural town and the locals avoid all shopping on move-in weekend. As one college counselor said: it isn't worth 45 minutes in line because you forgot to bring soap. Bring every non-food i...
by verbose
Wed Mar 01, 2023 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: How to fit long names in limited car title space
Replies: 5
Views: 599

Re: How to fit long names in limited car title space

I haven’t asked yet. I need to have everything ready before I got and wait in line. It’s always busy and staff is brusque.
by verbose
Wed Mar 01, 2023 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: How to fit long names in limited car title space
Replies: 5
Views: 599

Re: How to fit long names in limited car title space

I haven’t asked yet. I need to have everything ready before I got and wait in line. It’s always busy and staff is brusque.
by verbose
Wed Mar 01, 2023 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: How to fit long names in limited car title space
Replies: 5
Views: 599

How to fit long names in limited car title space

I am taking care of some estate planning odds and ends. We live in Missouri, which allows TOD on car titles. While filling out a title application, I found that there are only 50 characters available for joint owners and TOD designation. Myself and my spouse, as well as our TOD beneficiary, share the same ten-character last name. And our last name becomes a more common but different last name if a few characters are left off the end. To illustrate without putting our names all over the internet, I have chosen entirely fictitious names that bear no resemblance to our names except that each first and last name has the exact same length, and the last name also becomes a different name when shortened (but our real name doesn’t even having the s...
by verbose
Tue Feb 28, 2023 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: ACA subsidy and insuring college senior
Replies: 27
Views: 2266

Re: ACA subsidy and insuring college senior

I also have a graduating senior in 2024, though we have employer coverage, not ACA. I’m assuming my daughter will be a dependent for 2024 and I wonder if the other posters may also have dependents for the senior year. She will be our qualifying child: - Under age 24 and a full time student for any part of any 5 months (January- May). - Lives with us (except for temporary school housing) for at least 6 months. This assumes she doesn’t move out before July 1. Of course, she might, and in that case wouldn’t be our dependent. - Single, no joint return - Does not provide over half her own support. With us paying her tuition for spring and at least 6 months of her share of our household expenses, we will easily meet this threshold. In this case, ...
by verbose
Mon Jan 30, 2023 1:50 pm
Forum: Personal Investments
Topic: Non-dependent child/student - gift stock - pay college tution - tax consequences
Replies: 9
Views: 1398

Re: Non-dependent child/student - gift stock - pay college tution - tax consequences

The IRS is aware of this workaround for capital gains taxes and it has a few wrenches to throw in your plans. First, be certain that your son cannot be claimed as a dependent. Based on what you said, he might be your qualifying child. There isn't enough information in your post to determine that. You need to check the "support test" for a qualifying child. Your payments from the 529 for college tuition count as support from you in the year you pay them, even if you pay those amounts to the university on his behalf. He has to provide more than half his own support over the year for you to be unable to claim him as a dependent (unless there are other reasons such as marriage, lives on his own, etc.) Publication 501 has the support t...
by verbose
Sat Jan 28, 2023 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: Does dependent need to file tax return
Replies: 5
Views: 768

Re: Does dependent need to file tax return

I helped her file her tax return today using FreeTax USA (as part of the Free File program). I told her that she should be able to figure most of it out without my input by just answering the questions, but that was wrong. The 1099-Q threw Free File for a loop. If I entered nothing from the 1098-T, then the entire non-qualified distribution was taxed and subject to penalties. If I entered the correct numbers from the 1098-T, then the distribution was considered qualified and form 5329 was not generated. If I entered just the tax-free assistance, it was taxed and subject to penalties. Finally, I entered tuition in the exact amount of the scholarship and the scholarship amount, and it generated a correct 5329. It didn't understand that there ...
by verbose
Wed Jan 25, 2023 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Does dependent need to file tax return
Replies: 5
Views: 768

Re: Does dependent need to file tax return

She will file, for all the reasons stated. Thanks for the input.
by verbose
Wed Jan 25, 2023 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Does dependent need to file tax return
Replies: 5
Views: 768

Does dependent need to file tax return

My adult daughter is a dependent (full time student, she’s a qualifying child). For 2022: No earned income Dividends/interest/cap gain distributions: $200 Long term cap gain: $100 Short term cap gain: - $1800 (loss) Basis reported to IRS? Yes, for all sales Adjustments to basis? No Non-qualified distribution from 529 (earnings): $475 Amount of non-qualified distribution offset by non-taxable scholarship: 100% Tax withheld: 0 Based on this, I have several conclusions: Her unearned income is less than $1150. All basis was reported to IRS, so the gross proceeds on 1099-B are not relevant. She might have a capital loss carry forward?? Form 5329 might need to be filed, with or without a tax return. If she files Form 5329, it will list the non-qu...
by verbose
Mon Jan 23, 2023 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: Secure Act 2 and 529 to Roth IRA transfers, check my understanding
Replies: 12
Views: 979

Re: Secure Act 2 and 529 to Roth IRA transfers, check my understanding

I'm also looking at how this is actually going to work in practice. 529 for older child was started in 2004. Older child began college in 2020 and is expected to graduate in 2024. In 2020, the 529 didn't have enough to fully fund college (this was by design as I intended to cash flow the remainder). 529 for younger child was started in 2009. This 529 had grown to $60k by 2022. Younger child died in 2022. Apparently the 529 is considered part of the estate of the beneficiary, and its amount was going to trigger full probate. I transferred the entire $60k to the older child to avoid having to hire an attorney and go through probate proceedings. Although I could have withdrawn it with just income taxes (and state taxes because the contribution...
by verbose
Sun Jan 22, 2023 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: 529 tax questions
Replies: 67
Views: 4073

Re: 529 tax questions

Thank you, that’s correct. Like I said, it was many years ago. Scholarships are taxed when the amount of scholarship exceeds the tuition, books, room and board. For example, if a student gets a “full ride” plus additional scholarships, the amount over the student’s cost of attendance is taxable. I had this lucky circumstance many, many years ago and paid income tax on part of my scholarships. Since this is the condition under which scholarships are taxable, it won’t apply to the 529. The 529 can be used to offset tax-free scholarships (aka scholarships that do not entirely cover the cost of attendance) without a penalty. Since a taxable scholarship is already over the cost of attendance, I don’t think it can be offset by 529 without penalty...
by verbose
Sun Jan 22, 2023 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: 529 tax questions
Replies: 67
Views: 4073

Re: 529 tax questions

Scholarships are taxed when the amount of scholarship exceeds the tuition, books, room and board. For example, if a student gets a “full ride” plus additional scholarships, the amount over the student’s cost of attendance is taxable. I had this lucky circumstance many, many years ago and paid income tax on part of my scholarships. Since this is the condition under which scholarships are taxable, it won’t apply to the 529. The 529 can be used to offset tax-free scholarships (aka scholarships that do not entirely cover the cost of attendance) without a penalty. Since a taxable scholarship is already over the cost of attendance, I don’t think it can be offset by 529 without penalty as well as tax. I’m sure there are other arrangements for grad...
by verbose
Mon Jan 16, 2023 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Should I drop collision and comprehensive insurance?
Replies: 14
Views: 1733

Re: Should I drop collision and comprehensive insurance?

I am probably the least informed person on this subject, but I think I heard/read somewhere that its better to keep collision and comprehensive insurance in case you are involved in a no-fault accident but the other party is not insured. I would think this scenario would be covered by uninsured/underinsured (UM) coverage. Uninsured property damage is state-specific. In some states, it doesn't even exist. Do not assume that uninsured/underinsured coverage includes property damage. You will need to look up your policy and your state. Collision coverage also assists when your car is damaged by someone else and that person and/or their insurance company is uncooperative. Without collision, you have to fight someone else's insurance by yourself...
by verbose
Sat Jan 14, 2023 12:09 pm
Forum: Personal Investments
Topic: Was this a wash sale?
Replies: 12
Views: 1012

Re: Was this a wash sale?

Thank you all for the responses.
by verbose
Sat Jan 14, 2023 11:14 am
Forum: Personal Investments
Topic: Was this a wash sale?
Replies: 12
Views: 1012

Re: Was this a wash sale?

Also during the wash sale period, regular salary deferral purchases were occurring in our 401k and HSA accounts.

I bought FXAIX (Fidelity 500 Index) and FSMDX (Fidelity Mid Cap Index) in my 401k, spouse bought PLMFX (Principal 500 Index) in his 401k, and I bought SWPPX (Schwab 500 Index) and VIEIX (Vanguard Extended Market) in my HSA. Those were all periodic deferral purchases that didn't deviate from the usual instructions. I don't know how (or if) any of that counts for wash sales.
by verbose
Sat Jan 14, 2023 11:07 am
Forum: Personal Investments
Topic: Was this a wash sale?
Replies: 12
Views: 1012

Was this a wash sale?

Last year I started investing in taxable for the first time. We had maxed out our tax-deferred space and had additional investments. I bought VUG (Large Growth ETF) and VTEF (Muni Bond ETF) in taxable in January 2022. Over the year, circumstances changed. In June I realized that we were going to be well under the Roth IRA contribution income limit for 2022 and that our tax-deferred space was going to increase going forward (spouse switched from employer with Simple IRA to employer with 401k, and I am turning 50 which allows catch-up contributions, further, the combination of all these increased contributions reduces AGI under Roth limits). I "transferred" the taxable to the Roth IRAs. To do so: - June 24, sold VUG at a short-term ...
by verbose
Tue Jan 10, 2023 1:43 pm
Forum: Personal Consumer Issues
Topic: SUV or minivan - under $50k all in
Replies: 61
Views: 6321

Re: SUV or minivan - under $50k all in

Just a purse suggestion:

I drive a Honda Civic. I use a "purse sling" product that attaches under the headrests of the driver and passenger seats. This allows my center console to also hold a fairly large purse and prevents the purse from sliding into the back seat. Consider whether something like this would work.
by verbose
Fri Dec 16, 2022 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes - Dependents - do I understand this correctly?
Replies: 5
Views: 751

Re: Taxes - Dependents - do I understand this correctly?

The 529 as dependent support question doesn’t seem to have an official answer. The IRS has not said. I also have a child in college being paid for from 529, so I wanted to know. There seems to be a consensus that it’s parental support, but, again, the IRS has not said. A 529 is a completed gift for some purposes, but the account owner (parents, presumably) can still change the beneficiary, which means, it’s not a completed gift? The 529 account wants to have its cake and eat it too. Common sense says it’s parental support. That makes your daughter a dependent for 22. If so, she is not eligible to open or contribute to an HSA, even if it’s through an employer, and she will need to unwind it if that happened. Tax-wise, it seems best for both ...
by verbose
Mon Nov 21, 2022 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Estimating Retirement Costs - Some big numbers that I can't guess
Replies: 15
Views: 2229

Estimating Retirement Costs - Some big numbers that I can't guess

I'm trying to do some long-term planning for retirement. I need to estimate retirement income and expenses. A few of those numbers are both very important and very difficult to estimate. These two numbers are big enough and variable enough that I cannot settle on a target number for retirement at age 60 without better estimates. My spouse and I are about 50 years old. We are using a rough target of age 60 for retirement. The two numbers I cannot estimate are health costs and Social Security income. Health Care: - Ages 60 to 65 on Marketplace plan (whatever that looks like, legally and cost-wise, in 10 - 15 years) - Ages 65+ on Medicare - Currently have employer-provided health care, will have no options for retiree health care from employer...
by verbose
Sat Oct 22, 2022 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Additional Medicare Tax--missed it in 2020 and 2019
Replies: 12
Views: 1375

Re: Additional Medicare Tax--missed it in 2020 and 2019

Update: I filed 2019 and 2020 amended tax returns. They had to be on paper and mailed in. I paid the taxes due using my IRS online account. I didn't expect that the tax returns would be processed quickly, and I was not disappointed. I paid and mail the returns in early February 2021, and I just received notices in the mail yesterday. For 2019, the notice was a bit confusing: $85 additional tax (which I paid) plus $4.23 interest equals zero due. It says "you don't owe us any money, nor are you due a refund." For 2020, I received a similar notice with $5.89 interest (larger amount due over shorter period). That one wanted payment of the $5.89. So today I paid the $5.89 through my IRS online account. I was curious about the 2019 inte...
by verbose
Mon Oct 17, 2022 4:46 pm
Forum: Personal Consumer Issues
Topic: Looking to move to St Louis area, need advice
Replies: 40
Views: 3927

Re: Looking to move to St Louis area, need advice

I'm not originally from the STL area but now live in St. Charles. Single-story homes are HOT. They rarely come on the market because they are snapped up by real estate agents who already have buyers for them. If you really need a single-story, I suggest you engage an agent. I keep seeing posts on our neighborhood Facebook begging for single-story home listings. Basements are common here and a very good idea. Tornados are a thing, and even though tornado impact is highly localized and rare, the tornado-producing storms are common and cover a large area--you can't know if or where the tornados will touch down from those storms. Since I didn't grow up here, I can tell you that people here have some very definite ideas about places you should l...
by verbose
Sun Oct 09, 2022 10:19 am
Forum: Personal Consumer Issues
Topic: How to sell a used car?
Replies: 42
Views: 4186

Re: How to sell a used car?

I sold a 2008 Honda Civic with 155k miles a few months ago. There is still a shortage of used cars for sale, especially of that vintage. I had posted something general on Facebook (my feed, not marketplace) about the details/timing of transferring the title. Several people that I knew messaged me with "you're selling a car??" It didn't take long to work out a deal with a friend. The deal was for a bit more than CarMax would have paid. I didn't have to deal with low ball offers, creepy replies, aggressive haggling, flaky would-be buyers who don't show up, flat-out crazy people showing up at my house and petting the car (true story), etc. So try putting it out in your general social circle that you are selling this car and see if so...
by verbose
Fri Sep 30, 2022 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Most Secure Method to use ATM
Replies: 26
Views: 2465

Re: Most Secure Method to use ATM

Anything contactless is best because it avoids the mag stripe reader. Some skimmers are undetectable by the user. It doesn't matter if the bank's ATM hardware is actually using the mag stripe or not, if the mag stripe is inserted, and there's a skimmer, the mag stripe can be read.

This article has up-to-date info on skimmers:

https://krebsonsecurity.com/2022/09/say ... -skimmers/
by verbose
Thu Sep 15, 2022 1:13 pm
Forum: Personal Consumer Issues
Topic: Smart Switch recommendations
Replies: 19
Views: 1564

Smart Switch recommendations

We are installing smart switches for our bedroom light/ceiling fan combination, so that we can control the light and fan from Alexa. I'm looking for high-quality switches: - No hub - Wifi - Interface with iOS app and Alexa - Neutral wire available - No fixture adapter As you can see, I've been working on this a while. These are not the first smart switches we installed here. The original set of switches failed after about two years. One failed, then about a month later, the second one. They just stopped working. Power flows to them, but they don't respond. I've tried several ways to reset them, and nothing works. I've concluded that they are dead. Buying smart switches is confusing. There are so many out there, with so many configurations. ...
by verbose
Sun Sep 11, 2022 12:34 pm
Forum: Personal Investments
Topic: 529 strategy, lump sump?
Replies: 12
Views: 1613

Re: 529 strategy, lump sump?

I changed the beneficiary online— that was easy. It’s the rest of it… Steps. 0. Spend hours researching this with two specific states in mind. 1. Open a new 529 for niece in my state 2. Beneficiary transfer to niece 3. My brother opens a new 529 for niece in my state. 4. Transfer ownership of niece’s 529 to my brother (notarized mail-in form) 5. Brother does a rollover to move the 529 to the 529 he already has open for niece in his state (for tax reasons). 6. Brother finds and liquidates enough investment to cover the 529 amount. 7. Brother transfers the cash to my bank account. This particular strategy works for these two states without adverse state tax consequences. That’s not true for all states. If the family members live in the same s...
by verbose
Sun Sep 11, 2022 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: 529 qualified withdrawals
Replies: 14
Views: 1662

Re: 529 qualified withdrawals

It's only the COA room & board number, and that number is used as a maximum. Transportation and miscellaneous are excluded. If the kids live off-campus, or live on-campus but the university bills less than the COA amount (for example, if they no meal plan), you can withdraw actual expenses up to the COA amount. So, yeah, the kids should keep receipts. The formula is this: Student lives in university housing: Qualified = amount billed directly by university for housing and food If the billed amount is more than the COA for room & board, then the billed amount is the total qualified amount If the billed amount is less than the COA for room & board, actual expenses for food can be added up to the COA. Student lives off-campus Quali...