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Hoodwinker posted:...You can only set up a Solo 401k if you're self-employed. ... This reminds me of a plan I've had trouble researching. My 403b contributions through are limited to a set percentage of my salary by my employer, so I can't max out the contribution. But, I picked up a side job as an adjunct professor. Unfortunately, the school doesn't offer a 401k for adjuncts, but could adjuncting qualify as self-employment for making my own 401k?
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Oct 12, 2017 04:45
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Giant Metal Robot posted:This reminds me of a plan I've had trouble researching.
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Oct 12, 2017 04:55
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Hoodwinker posted:2. IRA up to max. (Roth in your case since you're above the Traditional deduction limit, unless you contribute the full $18k to your 401k to get below $62k taxable income) For ROTH IRA, is the after tax calculated right away and removed from the principal sum or is this something I file for at the end of the year in my tax filings? lol internet. fucked around with this message at 06:49 on Oct 12, 2017 |
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Oct 12, 2017 06:45
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Giant Metal Robot posted:This reminds me of a plan I've had trouble researching. If you are paid on a 1099 then you can use that income to fund a solo 401k. You are a sole proprietor small professional business of contracted teaching services. Various brokers will open and administer a solo 401k for you, I use TD Ameritrade just as an example. You must calculate your maximum deferral with a worksheet on IRS Form 560 which is filed with your return, it is complicated due to the self employment tax.
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Oct 12, 2017 11:27
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lol internet. posted:For ROTH IRA, is the after tax calculated right away and removed from the principal sum or is this something I file for at the end of the year in my tax filings? The taxes were already "taken out" when you earned the money. You shouldn't have to do anything related to taxes with ROTH. You don't report it to the IRS, the provider (i.e. Vanguard) does, which pretty much is just to prove that you didn't over-contribute. It's the same way you buy a candy bar with after tax money.
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Oct 12, 2017 13:18
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Duh of course. Couple last questions. Does Roth contributions generally change from. Year to year or has it always been 5500 per year for under 50? Just wondering this so I can just set and forget automatic payments. I currently have basically 200 in my Vanguard account, I plan on adding 225 per paycheck. I wanted to just put it all into a s&p fund. So my options are vfinx, vfiax which both I don't have the minimum at the moment. Is there any place I should be putting it before I hit the 3k minimum or should I go with a different plan game plan together to get to vfiax. Thanks!
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Oct 12, 2017 15:41
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lol internet. posted:Duh of course. If you're at Vanguard, set it to maximize for the automatic investing and it will adjust upwards automatically when the Roth limits change. They do every few years.
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Oct 12, 2017 15:44
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lol internet. posted:Duh of course. It changes every once in a while. The IRS usually decides about a year in advance. It's been 5.5k for 6 years now. It was 5k before that.
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Oct 12, 2017 15:45
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It's quite unlikely that it will change downward, and it's very well announced in advance if there is a change.
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Oct 12, 2017 16:01
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Changes for this year were announced at the end of last October, so we should know for sure in a couple weeks for next year. Outside analysis seems to indicate 401k caps increase to 18.5k, but IRAs remain flat.
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Oct 12, 2017 16:18
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a messed up horse posted:If you're at Vanguard, set it to maximize for the automatic investing and it will adjust upwards automatically when the Roth limits change. They do every few years. That's cool. I wish Fidelity did that.
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Oct 12, 2017 16:31
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crazypeltast52 posted:Changes for this year were announced at the end of last October, so we should know for sure in a couple weeks for next year. haha further screwing people who don't have good employers I'm down though my employer is Good.
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Oct 12, 2017 19:54
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https://amp.businessinsider.com/bitcoin-not-biggest-bubble-negative-yielding-bonds-2017-10 Ok I'm confused. This article talks about negative yields and a bond bubble and how terrible 2008 was for bonds. 1. The bonds it's talking about where REITs or something not treasuries or corporate right? 2. How much of this article is complete bullshit?
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Oct 13, 2017 18:45
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e: nevermind
Mu Zeta fucked around with this message at 04:25 on Oct 14, 2017 |
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Oct 14, 2017 01:04
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Put my first 1k towards retirement for 2055  . Vanguard is pretty cool with how much learning content they have on their website.
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Oct 14, 2017 11:15
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I hosed up some of my tax lot allocation and I'm going to be way over the IRA contribution limits. No problem, I can withdraw the $5500, but how do I know how much I need to remove in gains? Just prorate my annual gains to date?
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Oct 14, 2017 18:35
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paternity suitor posted:I hosed up some of my tax lot allocation and I'm going to be way over the IRA contribution limits. No problem, I can withdraw the $5500, but how do I know how much I need to remove in gains? Just prorate my annual gains to date? Your brokerage should handle it for you. I had to do this once and it was like 1 whole sheet of paper. Signed it and they did the rest.
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Oct 14, 2017 18:46
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Your custodian should do that for you. Do they mention it on the paperwork anywhere? I just looked up Fidelity's and T. Rowe Price's and they do it automatically unless you specify otherwise and attach additional paperwork.
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Oct 14, 2017 18:47
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Goldman Sachs raised their savings account rate to 1.30 Waiting for Ally to match...
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Oct 14, 2017 19:11
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Makes sense. I just shot Vanguard a message. I actually ended up finding the IRS formula which is pretty straightforward, but I'll wait to hear from Vanguard regardless. My CPA slapped my wrist for realizing I was over the limit after tax filing two years ago so I will just avoid it this year and be a responsible citizen. By the way, I loving hate Vanguards website and interface. It's so cumbersome. Ally is the poo poo.
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Oct 14, 2017 19:17
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buglord posted:Put my first 1k towards retirement for 2055 RIDE VFFVX OR DIE MOTHERFUCKER RIDE VFFVX OR DIE MOTHERFUCKER I need to write some hip hop.
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Oct 14, 2017 19:28
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I'm a California resident holding $10k, in VMMX in my Vanguard brokerage account. Currently using it as an extension of my emergency fund, and as it hit's $15K I move 5K into my equity/bond fund portfolio for mid-term savings. Should I convert this into another money market fund or bonds with a higher yield? Don't want much risk with this pool, but it doesn't need to be liquid since I already have a six month emergency fund in an Ally account.
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Oct 14, 2017 19:52
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paternity suitor posted:Makes sense. I just shot Vanguard a message. I actually ended up finding the IRS formula which is pretty straightforward, but I'll wait to hear from Vanguard regardless. My CPA slapped my wrist for realizing I was over the limit after tax filing two years ago so I will just avoid it this year and be a responsible citizen. Are you over the Roth limit or traditional Ira limit? The latter just means you put in 5500 post tax and track the basis until retirement at which point you can withdraw the 5500 tax free. It's a pain in your accountants butt.
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Oct 14, 2017 20:16
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H110Hawk posted:Are you over the Roth limit or traditional Ira limit? The latter just means you put in 5500 post tax and track the basis until retirement at which point you can withdraw the 5500 tax free. It's a pain in your accountants butt. Sounds like too much work for a few $k. I'd rather just leave it in, but pulling out is easier. I don't want to have to track anything for decades. I definitely pulled it all out too, I swear I didn't leave any capital gains. Yes I'm sure, we don't need to talk to anyone tomorrow. It's fine. God.
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Oct 14, 2017 21:15
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KaiserKarl posted:I'm a California resident holding $10k, in VMMX in my Vanguard brokerage account. Currently using it as an extension of my emergency fund, and as it hit's $15K I move 5K into my equity/bond fund portfolio for mid-term savings. Should I convert this into another money market fund or bonds with a higher yield? Don't want much risk with this pool, but it doesn't need to be liquid since I already have a six month emergency fund in an Ally account.  There's also VCITX (long-term) which gives a little better yield, but has a little more risk and more prone to some declining principal once interest rates start rising. I'd probably stick with VCAIX if it's mean to be an extension of emergency funds.
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Oct 14, 2017 22:04
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I currently have a work 401k open at Betterment with TLH enabled and want to open a Roth IRA with Vanguard to contribute my yearly maximum into a fund already owned in my Trad. 401k ( like VTI). Do I open myself up to any tax implications by leaving TLH enabled with the Betterment account? I am having a little trouble understanding the wash sale rules and the impact TLH could have on funds owned by external accounts.
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Oct 14, 2017 22:20
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Thanatus posted:I currently have a work 401k open at Betterment with TLH enabled and want to open a Roth IRA with Vanguard to contribute my yearly maximum into a fund already owned in my Trad. 401k ( like VTI). Do I open myself up to any tax implications by leaving TLH enabled with the Betterment account? I am having a little trouble understanding the wash sale rules and the impact TLH could have on funds owned by external accounts. Tax-loss harvesting doesn't give you any benefit in a tax-advantaged account like a 401k since you're not being taxed on any of the gain when trading within a 401k. I think wash sale rules definitely get triggered for transactions of similar shares between a taxable brokerage account and an IRA, but there isn't a clear rule for a 401k, just most people act under the assumption that the IRS will treat it similarly if it came up in an audit.
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Oct 14, 2017 23:29
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Xaris posted:Ahoy fellow California resident. I suggest VCAIX (California Intermediate Municipal Tax-Free Bonds). It's pretty safe, "past performance does not equal future performance" and all, but it's historically held principal well and the dividends are both state and federal tax free. Return is not particularly great, but its a solid ~2.5% or so div. Plus you kind of support California Awesome, this makes good sense.
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Oct 15, 2017 00:19
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Xaris posted:Ahoy fellow California resident. I suggest VCAIX (California Intermediate Municipal Tax-Free Bonds). It's pretty safe, "past performance does not equal future performance" and all, but it's historically held principal well and the dividends are both state and federal tax free. Return is not particularly great, but its a solid ~2.5% or so div. Plus you kind of support California Huh. This might just get me to open a Vanguard account. I also live in and this seems like a great place to store excess liquid savings.
H110Hawk fucked around with this message at 23:18 on Oct 16, 2017 |
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Oct 15, 2017 01:10
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Xaris posted:Ahoy fellow California resident. I suggest VCAIX (California Intermediate Municipal Tax-Free Bonds). It's pretty safe, "past performance does not equal future performance" and all, but it's historically held principal well and the dividends are both state and federal tax free. Return is not particularly great, but its a solid ~2.5% or so div. Plus you kind of support California With VCAIX I should keep it at least a year before selling right? Otherwise I'm taxed for short term gains?
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Oct 15, 2017 01:27
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Mu Zeta posted:With VCAIX I should keep it at least a year before selling right? Otherwise I'm taxed for short term gains? But that's not the point, it's the interest that's tax free which is really the main draw and so you really can sell at any time since it's already been earned. This usefulness also depends on your state and federal tax bracket as well to how beneficial it would be to you, if you're in a higher tax bracket that's often a very attractive feature, if you're in a lower tax bracket it may not be as attractive (depending on your goals of your portfolio balance, growth, and risk of course). My purpose of it is just the next tier up from "emergency savings/checking funds", i.e. low-risk liquid slush fund that I could tap into that isn't just eating itself up through inflation and better than savings Also goes without saying and should be obvious, but don't put it in your IRA. Xaris fucked around with this message at 01:46 on Oct 15, 2017 |
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Oct 15, 2017 01:38
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Xaris posted:Also goes without saying and should be obvious, but don't put it in your IRA. Because the tax free interest is nullified in a tax free IRA and you still take whatever trade-offs (increasing your exposure to the financial well-being of your home state)? I'm still learning, and it's not completely obvious to me yet.
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Oct 15, 2017 14:52
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Giant Metal Robot posted:Because the tax free interest is nullified in a tax free IRA and you still take whatever trade-offs (increasing your exposure to the financial well-being of your home state)? I'm still learning, and it's not completely obvious to me yet. Right. More specifically you're getting a lower return for no reason in an IRA. In a taxable account, if you have a high tax bracket that 2.5% has the same value as ~4% on taxable bonds. Throw all your crazy taxable bonds and REITs in your tax deferred or Roth account.
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Oct 15, 2017 15:16
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I am told by our HR department I have to manage my 401K withholding percentage to make sure I don't hit the limit (I'm going to). Seems I remember people saying most providers just won't take any contributions over $18K? Is this our HR department just being lazy, again?
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Oct 16, 2017 17:06
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ManDingo posted:I am told by our HR department I have to manage my 401K withholding percentage to make sure I don't hit the limit (I'm going to). Seems I remember people saying most providers just won't take any contributions over $18K? Is this our HR department just being lazy, again? Lazy and/or completely uninformed. I've have several 401k providers at this point and not one of them would take anything over the max for the year - whenever you hit it the contributions stop going in. I suppose this requires some sort of communication between the plan administrator and the payroll processor. If your company does it's own payroll and is ignoring the statements from the plan administrator.......welp.
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Oct 16, 2017 17:13
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The two companies I have worked for both automatically contributed anything over the limit to the after-tax, non-Roth 401k category.
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Oct 16, 2017 17:24
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That's not what I've seen, but I suppose it's a thing. My current administrator is Fidelity, and this is how they handle it:  Anything over your max contribution limit(s) simply doesn't get contributed.
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Oct 16, 2017 19:18
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My parents have put all their retirement money into an annuity. They still have 8 or 9 years to go so I wanted to make them Vanguard IRA and taxable accounts (they are self employed, no 401k). I figure their asset allocation at this point should be 50/50, so should I pretty much do Total Bond Market in IRA and Total Stock market in taxable? Or maybe play around with something like a Tax Managed Fund in taxable along with a Lifestrategy fund in the IRA? Their tax bracket is around 28% and California tax is 9%. Mu Zeta fucked around with this message at 20:38 on Oct 16, 2017 |
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Oct 16, 2017 20:36
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ManDingo posted:I am told by our HR department I have to manage my 401K withholding percentage to make sure I don't hit the limit (I'm going to). Seems I remember people saying most providers just won't take any contributions over $18K? Is this our HR department just being lazy, again? I have run into problems when changing jobs and accidentally overcontributed as a result. Havent had issues when all contributions in a year were at the same place though.
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Oct 16, 2017 21:58
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ManDingo posted:I am told by our HR department I have to manage my 401K withholding percentage to make sure I don't hit the limit (I'm going to). Seems I remember people saying most providers just won't take any contributions over $18K? Is this our HR department just being lazy, again? The other thing to make sure of is that you keep getting your company match if you max out before the end of the year. I had one company that stopped since I stopped, despite being on average well over the 5% or whatever to get the match. Next year I had to get close and the dribble in the rest of the year at 5%.
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Oct 16, 2017 22:37
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