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turevidar posted:Is this true of IRAs as well? HSAs?
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Jan 22, 2016 22:57
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Is there a disadvantage to maxing out an HSA through payroll deductions over the course of, say, 2 months as opposed to a year? Do smaller deductions over the course of the entire year make my overall tax liability less than it would if I maxed it in 2 or 3 paychecks?
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Jan 23, 2016 05:09
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pat_b posted:I'm not able to max my Roth IRA for 2015 - can put 1k, and maybe put 2k in it. I was able to max it for 2013 and 14, but I moved to an expensive area and also started a business, so times have been tight. Normally, I guess it would be a wash, but I do have a savings bond that is around 6k to 7k. It matures fully at 10k, but that won't be for awhile.
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Jan 23, 2016 08:02
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EugeneJ posted:Is there a disadvantage to maxing out an HSA through payroll deductions over the course of, say, 2 months as opposed to a year? Do smaller deductions over the course of the entire year make my overall tax liability less than it would if I maxed it in 2 or 3 paychecks? There is no difference in tax liability . If you make a contribution from your bank account instead of through payroll you put the numbers on your taxes in different boxes, but even then still works out the same. The only difference would be the timing of buying with your HSA money which is the old the lump sum vs dollar cost averaging debate. edit: If you do contribute ahead of the full year scheduled and later change health plans to a non HDHP plan or are otherwise not eligible to contribute to a HSA you would have to take some back out. Xenoborg fucked around with this message at 20:27 on Jan 24, 2016 |
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Jan 24, 2016 20:25
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Xenoborg posted:There is no difference in tax liability . If you make a contribution from your bank account instead of through payroll you put the numbers on your taxes in different boxes, but even then still works out the same. The only difference would be the timing of buying with your HSA money which is the old the lump sum vs dollar cost averaging debate. The payroll deductions may not make a difference, but contributing directly instead of through payroll means that you don't avoid the FICA taxes on the HSA contribution.
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Jan 24, 2016 20:35
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EugeneJ posted:Is there a disadvantage to maxing out an HSA through payroll deductions over the course of, say, 2 months as opposed to a year? Star War Sex Parrot fucked around with this message at 22:19 on Jan 24, 2016 |
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Jan 24, 2016 20:35
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My employer doesn't contribute to my HSA 
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Jan 24, 2016 21:36
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...employers actually contribute to HSAs? Next you'll tell me that employer matching on 401k plans doesn't end at $1000/year... More on topic, at what point does it become useful to itemize deductions on one's taxes? Like, I contribute (tiny amounts) to charity but my husband says to never bother mentioning it on tax forms because it won't really change what we get back.
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Jan 25, 2016 04:26
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Faerunner posted:...employers actually contribute to HSAs? Next you'll tell me that employer matching on 401k plans doesn't end at $1000/year... Oh and a 4% 401k match and 2%-8% (I believe, scales as your employment term grows, goes up a percent every 5yrs?) non elective contribution that vests at 3yrs. Limit is as dictated by law, so I'm sure some executive max out their entire 401k... Not I, though!
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Jan 25, 2016 06:35
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Faerunner posted:...employers actually contribute to HSAs? Next you'll tell me that employer matching on 401k plans doesn't end at $1000/year... You need to have deductions that total more than the standard deduction, which is $6,300 for single and $12,600 for married.
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Jan 25, 2016 07:52
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asur posted:You need to have deductions that total more than the standard deduction, which is $6,300 for single and $12,600 for married.
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Jan 25, 2016 09:48
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House hunting and major purchase question: I'm past pre-approval but still house hunting so I'm before actually applying for a mortgage. I'm about to buy an engagement ring  for about $3k, all cash (well, technically check).Is the outflow of that money (out of roughly 50k of assets) going to screw up my mortgage application? My guess is no, because since I'm paying cash it's not adding to my debt/income ratio, but I thought I'd ask. Also, related question, do charges on my credit card count towards my debt to income ratio if I never carry a balance?
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Jan 25, 2016 15:50
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Shouldn't make a big difference unless you're cutting it very close on available cash but it could ruin the surprise if you're on speakerphone when the loan officer asks you to explain all recent major purchases.
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Jan 25, 2016 16:55
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antiga posted:Shouldn't make a big difference unless you're cutting it very close on available cash but it could ruin the surprise if you're on speakerphone when the loan officer asks you to explain all recent major purchases. They don't ask what you buy. They only ask if you have money come in that is not from your employer. Also if you are worried about your debt level just pay off your cards about 5 days before you apply for the mortgage ( when they pull your credit). If your cards show $3000 on them it counts as debt, even if you are going to pay it off in a week. Your ring purchase shouldn't influence anything.
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Jan 25, 2016 19:06
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Thank you.spwrozek posted:They only ask if you have money come in that is not from your employer. What do they ask about this and how does it affect things? Because my grandma said she wants to help me with closing costs, which i don't necessarily need but i won't turn down either.
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Jan 25, 2016 19:41
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alnilam posted:Thank you. I had a friend pay me back $150 for something I picked up for him on amazon and they asked what the $150 was for. They went back 3 months. I just had to explain it. It was really easy. You can get a form for gifts for the grandma thing but it gets weird. I would suggest you have her write you a check and then use your savings for your down payment and closing. The day after you close deposit grandma's check into your savings to replenish it.
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Jan 25, 2016 20:09
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Totally clueless here. My HSA allows me to invest after it exceeds a balance of $1000. I just passed that, so the option is now available on the website. Do I go ahead and do that now, or should I at least wait until I have enough to cover the deductible and invest the excess after that? If I do invest, how accessible is the money in that account if I ended up needing it? Teeter fucked around with this message at 20:30 on Jan 25, 2016 |
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Jan 25, 2016 20:16
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Teeter posted:Totally clueless here. Who is your HSA through? I have mine through SelectAccount. It doesnt let you invest that first $1k, only any contributions after $1 thousand. Then you can select a percentage of how much you want to go to your investments and how much to go straight to the HSA.
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Jan 25, 2016 20:56
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alnilam posted:What do they ask about this and how does it affect things? Because my grandma said she wants to help me with closing costs, which i don't necessarily need but i won't turn down either. They just want to be sure that you're not taking out another loan to cover the down payment, or artificially inflating your income. Gifts from family to help out are generally fine, as long as it's a genuine gift without an expectation of repayment.
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Jan 25, 2016 21:08
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BaseballPCHiker posted:Who is your HSA through? I have mine through SelectAccount. It doesnt let you invest that first $1k, only any contributions after $1 thousand. Then you can select a percentage of how much you want to go to your investments and how much to go straight to the HSA. It's through a service called HealthEquity. Similar policy, only contributions above $1k can be invested. I'm just curious if I should jump on that now, or wait and only invest above $1.5k so that my deductible is always covered. My initial thoughts are that this may not matter much because the value would move very slowly but I'm thrown off by a few things, namely my complete ignorance about a lot of things mentioned here as well as their projections stating it could have -3% in a single year return before seeing growth past 3-5+ years.
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Jan 25, 2016 21:09
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Space Gopher posted:They just want to be sure that you're not taking out another loan to cover the down payment, or artificially inflating your income. Gifts from family to help out are generally fine, as long as it's a genuine gift without an expectation of repayment. They will often times make the gifter sign a form saying that this is a gift not a loan.
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Jan 25, 2016 21:10
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Teeter posted:It's through a service called HealthEquity. Similar policy, only contributions above $1k can be invested. I'm just curious if I should jump on that now, or wait and only invest above $1.5k so that my deductible is always covered. My initial thoughts are that this may not matter much because the value would move very slowly but I'm thrown off by a few things, namely my complete ignorance about a lot of things mentioned here as well as their projections stating it could have -3% in a single year return before seeing growth past 3-5+ years. I basically waited until I had my deductible covered and then went %50/50 on new investments and leaving it in my HSA.
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Jan 25, 2016 21:12
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spwrozek posted:They don't ask what you buy. They only ask if you have money come in that is not from your employer. YMMV. I had to explain all large transactions within the previous 60 days, including a reimbursement from my employer. Maybe they're over-conservative but if he pays by check, that's something my lender would've asked about.
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Jan 25, 2016 21:25
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Reimbursement is money coming in... Making sure you are not getting a loan from elsewhere. But I guess your lender asked for what you spent your money on. So maybe it is possible for the OP. To the HSA question I have mine set at my yearly OOP max ($3500) and then everything gets invested. If I pay for something and it goes below $3500 it fills back up to $3500 then keeps investing.
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Jan 25, 2016 22:32
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I miscalculated a bit and ended up contributing $100 more to my Roth IRAs in 2015 than was allowed. How do I make this right? Will I get hit by an early withdrawal penalty by withdrawing the excess contributions?
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Jan 26, 2016 17:28
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HSA question - I have a hospital bill that's over a year old that I'm still paying off. Can I use funds from the HSA I just opened to pay it down? Or does the medical event need to have occurred after the HSA opening?
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Jan 26, 2016 19:45
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EugeneJ posted:HSA question - I have a hospital bill that's over a year old that I'm still paying off. Can I use funds from the HSA I just opened to pay it down? Or does the medical event need to have occurred after the HSA opening? Everything I've read says that you cannot use funds from an HSA to pay medical expenses that were incurred before the account was open.
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Jan 26, 2016 19:57
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DrSunshine posted:I miscalculated a bit and ended up contributing $100 more to my Roth IRAs in 2015 than was allowed. How do I make this right? Will I get hit by an early withdrawal penalty by withdrawing the excess contributions? No biggie. Myself, I would probably roll it forward to 2016 and just pay the 6 dollar penalty. https://investor.vanguard.com/ira/excess-contribution
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Jan 26, 2016 20:02
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slap me silly posted:No biggie. Myself, I would probably roll it forward to 2016 and just pay the 6 dollar penalty. https://investor.vanguard.com/ira/excess-contribution I haven't filed my taxes yet, so could I just withdraw the $100? I bought shares of an S&P500 index with the $5600 I put in, so should I just sell $100 worth of the shares?
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Jan 26, 2016 22:54
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DrSunshine posted:I haven't filed my taxes yet, so could I just withdraw the $100? I bought shares of an S&P500 index with the $5600 I put in, so should I just sell $100 worth of the shares? If you contact Vanguard, they'll take it out for you. You'll get hit with a 10% penalty and taxes on any gains that occurred on the $100. You don't do it yourself, they do the calculations for you and remove the exact amount of shares the $100 was worth when you bought it.
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Jan 26, 2016 23:03
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I've got an account with a Canadian broker and have a taxable account with them, as well as my tax-free ones. Last year when I started investing I put stocks and bonds on all accounts, including the taxable, but now I learned having bonds in a taxable account is bad because of bond dividends being taxed, whereas stocks are not (or something like that from Bogleheads). I haven't done the math yet, but should I just bite the bullet and sell my bonds on the taxable account and eat the capital gains fee now? Or should I wait until the next taxation year?
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Feb 3, 2016 18:41
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Random newbie question - Let's say I bought $1,000,000,000,000,000,000,000,000,000,000,000 worth of Vanguard's S&P500 Index. Such an outrageously enormous amount that I technically own more value of Apple stock (3.3% of the Sp500 Index) than Apple actually has available. I wonder two things: 1. Did sinking all these hojillions of dollars into Vanguard's coffers have any impact on the overall S&P500 index? 2. Do I technically own Apple and could go fire everybody? Stupid meaningless question, but it's a concept I don't understand.
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Feb 4, 2016 17:13
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1) Yes. You would essentially be inflating the stock prices. And to clarify, you would not own more stock than available. Sellers would just agree to the insane prices you are offering. It would be like offering a million dollars per car for every car in the Wal-Mart parking lot just to prove that you could do it. It doesn't mean the cars magically turn into Lamborghinis. 2) Yes. At least once you elect yourself CEO. Knock yourself out you tycoon you. nelson fucked around with this message at 17:28 on Feb 4, 2016 |
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Feb 4, 2016 17:17
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slap me silly posted:No biggie. Myself, I would probably roll it forward to 2016 and just pay the 6 dollar penalty. https://investor.vanguard.com/ira/excess-contribution I made a similar mistake with over-contributing to my Roth in 2015. Is there a supposed to be a declaration/form you need to fill out in order to roll it forward, or is it just to contribute $5500 minus your 2015 over-contribution and it all sorts itself out come next tax season?
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Feb 4, 2016 17:55
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GoGoGadgetChris posted:Random newbie question - Let's say I bought $1,000,000,000,000,000,000,000,000,000,000,000 worth of Vanguard's S&P500 Index. Such an outrageously enormous amount that I technically own more value of Apple stock (3.3% of the Sp500 Index) than Apple actually has available. I wonder two things: 1. Yes. The fund you bought would in turn buy the individual stocks that comprise the index at market price which would rise due to demand. I believe the prospectus should cover how stocks are purchased and sold. 2. Unless Vanguard has changed it's policy, this would be a no. If you directly bought enough shares in Apple to have a majority of the votes then you'd effectively own the company, however in this specific case you own an index fund and Vanguard owns the shares. They have an overview about how they vote with the shares they own somewhere on their site and unless it's changed they don't allow stockholder input.
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Feb 4, 2016 18:17
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It's amusing to think of a director of the board appointed by Vanguard. That's some really vaguely dystopian poo poo: the blind god of investors appoints leadership to a company. Like this currently happens with private equity companies who do board takeovers but at least there's some... agency there.
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Feb 4, 2016 19:22
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I opened a savings account with Ally last month. I know the interest compounds daily which is cool, but when does it actually post to the account? The mob is going to break my legs if I don't come up with that $1.02. (Actually I'm just curious)
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Feb 6, 2016 04:00
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Rexim posted:I opened a savings account with Ally last month. I know the interest compounds daily which is cool, but when does it actually post to the account? The mob is going to break my legs if I don't come up with that $1.02. (Actually I'm just curious) Monthly, on your statement date (listed on the website).
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Feb 6, 2016 04:17
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Had to clear a few hurdles to get signed up with Ally but finally sorted it out. Was cool to see the interest on the first month's statement for an amount that probably exceeds all the interest I had collected on our old savings account over the last 5 years.
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Feb 6, 2016 05:30
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I've got an Ally account. I'm kind of tempted to use it for emergency funds\wife's taxes (she's a contractor) now that someone mentioned it. It might make us a couple dollars over time and is less accessible if my dumb rear end overspends.
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Feb 8, 2016 22:33
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