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MJP posted:Okay, dumb question. I've contributed $20,500 to my 401k this year. I thought I could do Roth 401k contributions once I hit that number, but apparently they stopped taking my Roth 401k contribs from my paycheck. Is that $20,500 limit between regular 401k and Roth 401k contributions? Or is there some difference between Roth 401k contributions and after-tax 401k contributions which I need to address with my company's payroll/benefits people? Combined. There's a separate thing called the "Mega Backdoor Roth" which requires "after-tax contributions to a traditional 401k" which you might be able to do.
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Nov 8, 2022 18:13
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fourwood posted:I don’t give enough of a poo poo to keep all my receipts for 20 years or whatever before reimbursing I do this, but my HSA funds are never used for health expenses. It’s purely a vehicle to hide money from the IRS legally. iOS does high quality scans from the Notes app making this almost zero effort, and between NAS and Drive backups I expect to be able to cash them in a decade or three from now. The IRS already gets plenty of money from me. No reason to give them more unnecessarily.
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Nov 8, 2022 18:25
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Fidelity let's you save reciepts right inby their system with notes on whether it's been reimbursed or not. Makes it very easy
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Nov 8, 2022 18:31
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My corp's merger madness continues! Almost all the changes are going to be for the worse, but at least there is some good news: the new 401k provider looks to have considerably less lovely funds available (see below). Matching has also improved to 50% of contributions up to 6% of paycheck. Soon, my existing Roth401k (~$70k) gets put into this new plan, so I have to select a fund(s) to put them into. Outside of the 401k, I have about the same $ amount between my IRA, HSA, emergency savings, etc. in Fidelity target date funds and such. 2055 is my retirement goal. My choices, sorted by increasing expense ratio:  See my post from many years ago for comparison. The first one, iShares S&P 500 Index K, seems like the correct choice. It invests in the same area my original 401k fund, so there's minimal rebalancing required, with a low ER too. However, I am interested to learn why I am wrong.
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Nov 8, 2022 19:14
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Roumba posted:Soon, my existing Roth401k (~$70k) gets put into this new plan, so I have to select a fund(s) to put them into. Outside of the 401k, I have about the same $ amount between my IRA, HSA, emergency savings, etc. in Fidelity target date funds and such. 2055 is my retirement goal. If you are comfortable with being in all US stocks, then S&P 500 is fine. If you want proper diversification, then 60/40 S&P500/International should give you global exposure. If you want to go all the way, you could also divide that 60 slice into roughly 85% S&P 500, 10% mid-caps, 5% small-caps and own the total US stock market. But if you're willing to cover that many bases, you should just nab that sweet sweet 0.06 ER target date fund and minmax something else.
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Nov 8, 2022 19:55
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Anyone use an FSA? I have an HSA, and the option of a limited purpose FSA as well. I declined the FSA again this year, but it's probably better to fund it for teeth cleanings and eye exams.
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Nov 8, 2022 20:00
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I had a FSA but I found managing contribution amounts and spending windows to be incredibly annoying.
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Nov 8, 2022 20:01
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Bleh, just when I thought I had my ducks in a row and had the basics taken care of. CubicalSucrose posted:Combined. Is the after-tax contribution the same as a Roth 401k contribution, or am I in "call Fidelity/company's payroll department" turf?
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Nov 8, 2022 20:01
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MJP posted:Bleh, just when I thought I had my ducks in a row and had the basics taken care of. You need the ability to both do an after-tax contribution AND ALSO to either a) convert it to Roth in-plan, or b) do an in-service (while still employed) rollover to a Roth IRA. That's how the mega backdoor works. https://www.investopedia.com/mega-backdoor-roth-401-k-conversion-5210877
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Nov 8, 2022 20:04
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Salami Surgeon posted:Anyone use an FSA? I have an HSA, and the option of a limited purpose FSA as well. I declined the FSA again this year, but it's probably better to fund it for teeth cleanings and eye exams. you can just keep ~610ish in there and let it rollover every year without spending it. if you need to spend it, buy some bandaids or something.
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Nov 8, 2022 20:15
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I've used an FSA account in the past and it's a great tool, especially if you know you have a large expense coming up. I had a dental implant done a couple years ago. I was able to plan for it and maxed out my FSA that year. Between glasses, dental stuff, prescriptions etc for me and the kids I was able to use it all. My oldest is getting braces next year, so I'm loading up my FSA account this year as well. The kids and I are on a PPO plan, so no HSA for me, but my wife is on a HSA plan and I'm unclear if she can max out her limited purpose FSA as well or if that runs afoul of the rules. Braces are about 4500 I think, and my insurance will only cover 1500. It's also nice that you get the full amount to spend on the first of the year.
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Nov 8, 2022 20:17
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Thanks to being a lucky but depressed workaholic technology leader with few costs I’ve hit the point, at 41, where I’ll likely have “enough” for retirement at a normal age- at least until the US hits a real crisis and we’ll all be reduced to hunting squirrels and waiting for the Chinese helicopters to drop humanitarian rations. I understand this may be a rare situation but is there a “taxable investment accounts for total idiots” guide worth looking at? I’m up for riskier and more involvement and the FIRE thing probably isn’t feasible beyond just straight saving to knock a few years off so I’m just entering this with the goal of setting something up that can pay property taxes and utilities indefinitely.
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Nov 8, 2022 20:21
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Bobcats posted:Thanks to being a lucky but depressed workaholic technology leader with few costs I’ve hit the point, at 41, where I’ll likely have “enough” for retirement at a normal age- at least until the US hits a real crisis and we’ll all be reduced to hunting squirrels and waiting for the Chinese helicopters to drop humanitarian rations. Bogleheads wiki is always a good place to start. https://www.bogleheads.org/wiki/Taxable_account https://www.bogleheads.org/wiki/Tax-efficient_fund_placement
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Nov 8, 2022 20:43
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SamDabbers posted:You need the ability to both do an after-tax contribution AND ALSO to either a) convert it to Roth in-plan, or b) do an in-service (while still employed) rollover to a Roth IRA. That's how the mega backdoor works. Gotcha, I asked Fidelity some time ago about in-service rollovers - that is a flat nope, they don't do 'em for our plan. I'm pursuing the question about after-tax with the payroll department. I'll probably be in plebian backdoor Roth turf, but at least I have a few pay cycles to finish cashing up.
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Nov 8, 2022 20:43
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Space Fish posted:If you are comfortable with being in all US stocks, then S&P 500 is fine. Neat. Thanks.
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Nov 8, 2022 22:32
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Bobcats posted:I understand this may be a rare situation but is there a “taxable investment accounts for total idiots” guide worth looking at? I’m up for riskier and more involvement and the FIRE thing probably isn’t feasible beyond just straight saving to knock a few years off so I’m just entering this with the goal of setting something up that can pay property taxes and utilities indefinitely. You can just open a taxable brokerage account with Vanguard and buy VTI / VT. The bogleheads wiki, as mentioned, is a great resource but it’s realllllly trivial to get started.
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Nov 8, 2022 22:48
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Strong Sauce posted:you can just keep ~610ish in there and let it rollover every year without spending it. if you need to spend it, buy some bandaids or something. That's fair. It's limited purpose FSA, so dental and vision only. I'd be buying some contact lense solution.
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Nov 8, 2022 22:57
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Ally just emailed me to say their savings account rate is going up to 2.75%. Glad I moved the down payment fund there.
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Nov 9, 2022 02:35
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Citi's HYSA I use emailed me this week that they're bumping from like 2.65% to I think it was 3.10%
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Nov 9, 2022 02:53
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VMFXX is already at 3.34%, a benefit of mostly being in the Fed overnight repo
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Nov 9, 2022 02:53
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drk posted:VMFXX is already at 3.34%, a benefit of mostly being in the Fed overnight repo frontrun both HYSAs and VMFXX with SGOV: https://stockcharts.com/freecharts/perf.php?VMFXX,SGOV&n=500&O=011000 it’s just ultra short term t-bills continuously rolled
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Nov 9, 2022 03:11
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pmchem posted:SGOV: it’s just ultra short term t-bills continuously rolled  Not that big a difference from money markets, but I was actually looking for a fund like this earlier this year.
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Nov 9, 2022 03:45
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I've been dutifully maxing out my HSA for the last 12 years or so and am up to close to $90k. I've probably accumulated at most a couple thousand in medical expenses over the years, receipts all sitting in a manilla envelope in my office. 
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Nov 9, 2022 03:52
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drk posted:
yeah it’s nice for its niche. $BIL is more popular in the category but is 1-3mo duration so it can lose a bit of value in rapid unexpected fed hikes. meanwhile SGOV weathered 2022 perfectly
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Nov 9, 2022 04:06
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I had a long post about FSA’s then Apollo crashed when I clicked submit. In short: FSA needs to be revamped. It’s only worth using if you are 100% sure you will use it and your receipts will be bulletproof undeniable.
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Nov 9, 2022 08:17
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Joementum posted:Ally just emailed me to say their savings account rate is going up to 2.75%. Glad I moved the down payment fund there. Jesus, we’re basically at my mortgage rate for a savings account.
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Nov 9, 2022 11:57
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Animal posted:I had a long post about FSA’s then Apollo crashed when I clicked submit. Yeah, I don’t have yearly expected medical expenses (thank god). I never do a FSA on principle because you can lose it at xx point. gently caress that.
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Nov 9, 2022 12:58
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Residency Evil posted:Jesus, we’re basically at my mortgage rate for a savings account. I get 3.00% on my Marcus by Goldman Sachs HYSA.
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Nov 9, 2022 16:48
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pmchem posted:frontrun both HYSAs and VMFXX with SGOV: What's going on with the sawtooth price? Is this a factor of coupons being paid or tranches being bought, and, I assume you're supposed to time your buy-in...? 
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Nov 9, 2022 18:35
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Take a gander at that variability in % terms. I assume it has to do with auction volumes but it’s a rounding error.
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Nov 9, 2022 18:44
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When we're discussing a short term bond fund that may return only ~1.1% or so in three months, a predictable swing of ~0.15% over that period I think matters. The most recent drop is over 0.2%. It's not a huge amount, but I'd like to understand it.
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Nov 9, 2022 18:56
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Leperflesh posted:When we're discussing a short term bond fund that may return only ~1.1% or so in three months, a predictable swing of ~0.15% over that period I think matters. The most recent drop is over 0.2%. It's not a huge amount, but I'd like to understand it. It's correlated with distribution dates. I think it's a sell-off immediately after distributions pay. As distributions have gotten larger the effects have gotten larger.
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Nov 9, 2022 19:27
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Those dips correspond in date and magnitude to the ex-date of the dividends.
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Nov 9, 2022 19:28
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Right, I guess that makes sense for the underlying bond prices, but I wasn't sure if the bond fund pays out those "dividends" (coupons or maturation payments or whatever) to shareholders, or reinvests them. I would have thought a bond fund would just roll the cash into the next set of bonds and the fund's price would not seesaw on them.
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Nov 9, 2022 19:40
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The bond dividends are taxable, so it would be a bit odd for the fund to not pay them out. The sawtooth pattern is because there is interest accruing and then being regularly distributed. This graph showing NAV and NAV with dividends should illustrate: 
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Nov 9, 2022 19:58
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Ok I guess I was making some poor assumptions. Makes sense.
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Nov 9, 2022 21:40
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pmchem posted:frontrun both HYSAs and VMFXX with SGOV: Ok, someone talk me out of using this for my unknown-term down payment fund. I’m only half joking.
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Nov 9, 2022 21:49
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raminasi posted:Ok, someone talk me out of using this for my unknown-term down payment fund. I’m only half joking. A true min-max hero wouldnt pay 5 bp in expenses, you can roll your own ultra short treasuries
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Nov 10, 2022 00:58
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drk posted:A true min-max hero wouldnt pay 5 bp in expenses, you can roll your own ultra short treasuries i know someone who does this and many brokers support it but figured it was a step beyond the desired complexity of this thread SGOV is pretty simple. it won’t make you rich but ultrashort govt funds have a niche e: to clarify leper’s line of posts, yeah my original stockcharts link uses total return for perf of funds, not price return pmchem fucked around with this message at 05:11 on Nov 10, 2022 |
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Nov 10, 2022 05:08
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I think I read that you don’t qualify for an HSE if you have good enough health insurance. The SEIU gives me better health insurance than I have any right to have, and my dental is like $159/year. Am I imagining that caveat to HSAs?
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Nov 10, 2022 14:21
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