|
For 2023, my wife and I will most likely be over the income limit for ROTH IRA contributions. My wife has a rollover IRA from a previous employer. It's enough that we don't want to take the tax hit from a conversion. Does this mean that we are essentially excluded from doing the backdoor contribution method? Or would it only affect her? Seems weird that we use our joint income for the income limit, but that I would still be able to backdoor and she wouldn't.
|
#
?
Dec 5, 2022 21:28
|
|
|
|
| # ? May 27, 2024 12:49 |
|
|
I might be completely misremembering The Four Pillars, but is it still advisable to rebalance a Roth IRA by “buying low selling high” despite the loss in value because of bid-ask spread? Is there a recommended app or website that can easily give me percentage holdings?
|
|
#
?
Dec 6, 2022 00:55
|
|
|
What are you trying to rebalance? There is no bid-ask spread on mutual funds, and while there is on ETFs it is usually pretty small. Unless you have the ability to perfectly time the market, bid/ask is going to be irrelevant compared to daily price movements.
|
|
#
?
Dec 6, 2022 01:17
|
|
|
drk posted:What are you trying to rebalance? I’m trying to rebalance my IRA taking 2023 contributions into account. I currently have $17.4k in a Roth IRA, but I wanted to start putting money into a trad. IRA so it’s 55% trad/45% Roth. (Prof Cederburg age+20% rule to hedge against future tax rate hikes.) My Roth is cap-weighted Advantis value ETFs. Am I correct in assuming the US-large cap and US-small cap should go in the trad IRA as opposed to the international value because they’re more tax-efficient? (US investor here)
|
|
#
?
Dec 6, 2022 01:29
|
|
|
I'm sure this gets asked a lot, but I don't see anything addressing it in the OP, nor did the one conversation I had with a financial advisor really give me a clear strategy: How do you determine when/how much to shift from Roth 401(k) to regular 401(k) contributions? I imagine that it is some combination of my age (tax-free earnings are less valuable the closer I am to retirement), my current tax rates, and my best guess at future tax rates. Right now my rolled-over IRA and my 401(k) are entirely Roth, except for the employer contributions which I guess have to be regular. I live in a high-tax state (California) but I don't intend to move away in retirement. My wife and I are probably 25-30 years from retirement (we're both 36).
|
|
#
?
Dec 6, 2022 01:46
|
|
|
Valicious posted:I’m trying to rebalance my IRA taking 2023 contributions into account. I currently have $17.4k in a Roth IRA, but I wanted to start putting money into a trad. IRA so it’s 55% trad/45% Roth. (Prof Cederburg age+20% rule to hedge against future tax rate hikes.) you dont pay taxes on dividends in either roth or trad ira so this tax efficiency question is irrelevant. Also at $18k saved these micro adjustments of balance dont really matter. When you have $100k you can start caring a little. I am intersted in why you are buying cap weighted advantis value etfs, rather than just putting everything into indexes?
|
|
#
?
Dec 6, 2022 04:38
|
|
|
Valicious posted:I’m trying to rebalance my IRA taking 2023 contributions into account. I currently have $17.4k in a Roth IRA, but I wanted to start putting money into a trad. IRA so it’s 55% trad/45% Roth. (Prof Cederburg age+20% rule to hedge against future tax rate hikes.) First of all, why are US large/small cap more tax-efficient than international? Often international is put in taxable accounts as it's considered slightly more efficient due to the foreign tax credit. For tax-advantaged accounts, this is irrelevant. Your traditional IRA will simply be taxed on the amount of each distribution, and your Roth IRA will not be taxed at all. Therefore, the main optimization is to try to maximize the growth of your Roth compared to the rest of your portfolio. You can do this by putting your expected highest-growth funds in your Roth. Based only on historical data, this would probably be US small cap, followed by US large cap, followed by international.
|
|
#
?
Dec 6, 2022 04:41
|
|
|
Muir posted:I'm sure this gets asked a lot, but I don't see anything addressing it in the OP, nor did the one conversation I had with a financial advisor really give me a clear strategy: It boils down to if your tax rate is higher or lower now than you expect it to be in retirement. You are probably in the 22% or 24% tax brackets since most couplers here are (married income 89k-190k and 190k-364k). Saying you are in the 22% range: An additional dollar of retirement savings up to 89k a year of income in retirement are better saved as regular 401k since they will save you 22% tax now, but you'll be paying less than 22% in retirement (up to 89k). Retirement savings over 190k will be better as Roth, you pay 22% now but save being in 32% in retirement. Any retirement savings between the two and it won't matter which you do. And thats a pretty big range, so try and fall near the middle given whatever your assumptions are and if you are off by 50k it doesn't matter. The compounder is changing tax rates. I think its likely that the rates revert back up 3%, and in the long term will probably go up more. So I max out my Roth space (not that there is a whole lot of it compared to regular).
|
|
#
?
Dec 6, 2022 04:56
|
|
|
MrLogan posted:For 2023, my wife and I will most likely be over the income limit for ROTH IRA contributions. I'm pretty sure that the pro-rata rule is individual. So yes I believe (not an expert) that one of you can do the backdoor roth but the other can't, without running into the pro-rata rule / converting all to Roth. It's a loophole so it doesn't have to make any sense. The 'tax hit' from conversion also isn't a tax hit in the normal sense, it's more similar to pre-paying your taxes. The math works out so that you essentially get investment return on the amount used to pay taxes. $X spent on taxes when converting traditional dollars to roth is equivalent in value to spending $X to do a hypothetical $X * [tax rate in retirement] / [tax rate now] contribution into a Roth. That might actually be worth it depending on tax rates, the value of future backdoor roth contributions, and what you would otherwise be doing with that money. Muir posted:I'm sure this gets asked a lot, but I don't see anything addressing it in the OP, nor did the one conversation I had with a financial advisor really give me a clear strategy: Keep in mind that withdrawals from a regular 401k are ordinary income can push you up to a higher tax bracket. So a reasonable goal would be to target your earnings from social security pensions, taxable investments, regular 401k, etc. to meet a bracket breakpoint, and have Roth withdrawals or savings drawdown fund your lifestyle above that. That way you can pay an effective tax rate of like 12% on your regular 401k withdrawals but effectively be at a consumption level more consistent with the 22%+. It's also not a given that a Roth 401k makes sense at all even if tax rates do go up, since dollars are coming out at today's marginal rate and the tax savings are coming when you'll probably be at a lower marginal rate band.
|
|
#
?
Dec 6, 2022 05:28
|
|
|
Leperflesh posted:you dont pay taxes on dividends in either roth or trad ira so this tax efficiency question is irrelevant. Also at $18k saved these micro adjustments of balance dont really matter. When you have $100k you can start caring a little. I’m a big proponent of factor investing and the methodology that Advantis uses. The funds themselves aren’t cap-weighted but sector-weighted I believe. The % of each in my portfolio is cap-weighted. (30% AVLV/30% AVUV/14% AVDV/ 14% AVIV/12% AVES) I want to shift a few percentage points toward international as suggested by Prof. Cederburg and he cited the data that backs this up. Interview with Cederburg(I found it really informative) https://podcasts.apple.com/us/podcast/the-rational-reminder-podcast/id1426530582?i=1000584063409 Interview with Eduardo Repetto, CIO at Advantis https://podcasts.apple.com/us/podcast/the-rational-reminder-podcast/id1426530582?i=1000587366316 Since these are ETFs consisting of individual stocks, doesn’t it create a taxable event each time a stock gets added or removed from the ETF? Wouldn’t I want to put the funds that would have the least-often or least-impactful taxable events into the trad Ira and the others into the Roth? My total amount of savings isn’t a ton right now, but I’d like to figure out the exact details of my investing plan now so I don’t have to think about it too much later. Valicious fucked around with this message at 19:07 on Dec 6, 2022 |
|
#
?
Dec 6, 2022 19:00
|
|
|
That is not how taxes work in retirement accounts. For a trad IRA/401(k), you don't pay taxes on any dividends or sales. You contribute pre-tax money, and you pay taxes when you withdraw money from the account (take distributions). For a Roth IRA/401(k), you contribute post-tax money, there are no taxes on dividends and sales, and in return you don't pay taxes on distributions. edit: why are you so interested in contributing to a trad IRA? It has some significant potential future implications that are not desirable. If you want to contribute pre-tax money to retirement accounts, it's best to do this (if possible) in an employer-sponsored plan like a 401(k), 403(b) etc.
|
|
#
?
Dec 6, 2022 19:20
|
|
|
Valicious posted:Since these are ETFs consisting of individual stocks, doesn’t it create a taxable event each time a stock gets added or removed from the ETF? No. You do not pay taxes on capital gains incurred via purchases & sales within either of a Roth or Traditional IRA. You also do not pay income taxes on dividends within an IRA. You don't pay any taxes at all. The only tax you eventually pay is on distributions, and only for traditional IRAs (because you got to put pre-tax money in). Moreover, half the point of ETFs is that you don't pay taxes on their internal churn. This is in contrast with a mutual fund, where you do (if you hold that mutual fund in a taxable brokerage account). Hence, when folks are investing non-tax-advantaged money in a brokerage account, we often suggest using the ETF version of a given mutual fund, to avoid the possibility of that extra taxation. As an aside, you are paying for example a .15% ER on a large cap value Advantis fund (AVLV) to track the Russel 1000 Value index to get identical performance to the Vanguard Russel 1000 Value index fund ETF, VONV, which only costs .08% ER. That's the first one I looked up, but my guess is that Vanguard and Fidelity will beat Advantis on these ERs across the board.
|
|
#
?
Dec 6, 2022 19:42
|
|
|
Valicious posted:I’m a big proponent of factor investing: 30% AVLV/30% AVUV/14% AVDV/ 14% AVIV/12% AVES Be careful with this 100% value asset allocation. Value has done relatively well this year, but looking at even a slightly longer time frame total market funds outperform value. You are diversifying into many countries with these 5 funds, but completely ignoring a huge portion of the investable market (growth stocks).
|
|
#
?
Dec 6, 2022 19:51
|
|
|
I am a total rookie who basically just keeps half an eye on this thread in case the big-picture nature of things changes and I need to do something other than my target date fund, and even I understand how tax-advantaged accounts work. That seems incredibly fundamental. From an outsider's POV, it sounds like you are getting an awful lot of your information and theory from a single source that has a direct conflict of interest (the fact that it is Avantis' job to sell you their investment products), while plugging other bits and pieces into that, and making half-informed decisions as a result. I've seen this kind of thinking enough times that I (usually) don't need to be a subject matter expert to recognize it. It's totally possible that I'm ignorant of something that makes this instance different, but the posting definitely feels like you've swallowed an over-complicated sales pitch. Maybe try tossing out Avantis' products and podcasts as your starting point, start fresh from more neutral sources and recommendations, and see if you end up in the same place? Unsinkabear fucked around with this message at 20:25 on Dec 6, 2022 |
|
#
?
Dec 6, 2022 20:12
|
|
|
esquilax posted:It's a loophole so it doesn't have to make any sense. Adding this to the list of investing aphorisms
|
|
#
?
Dec 6, 2022 20:31
|
|
|
So I'm keeping my retirement allocation really simple. I'm doing a 90/10 portfolio. S&P500/Total Bond fund and will probably keep that allocation until I turn 55 where I'll probably start heading towards a 60/40 portfolio when I turn 65. I figure even I can't mess that up.
|
|
#
?
Dec 6, 2022 21:22
|
|
|
Robinhood has announced they’re launching an IRA with a “1% match”, no employer needed. Haven’t been able to dig into the details, but are IRAs federally insured in any way? No way in hell is a 1% match worth giving money to that house of cards if not.
|
|
#
?
Dec 6, 2022 22:36
|
|
|
dpkg chopra posted:Robinhood has announced they’re launching an IRA with a “1% match”, no employer needed. Brokerage accounts are not insured like FDIC, because your assets are held in accounts that cannot be touched. SIPC is there for when a brokerage fraudulently misappropriates your assets, which many consider a non-issue in today's heavily regulated and audited industry. Otherwise, it'd be a huge problem for even regular folks who have rolled over or otherwise accumulated sizeable retirement savings. In other words, spreading a multi-million dollar portfolio (which is much higher than the SIPC limit) across multiple brokerages is rarely recommended as would be the case with FDIC/NCUA-insured savings accounts. It's two very different things.
|
|
#
?
Dec 7, 2022 00:15
|
|
|
Valicious has a lot to learn about taxes, but let's be a little open-minded on her choice of funds. Avantis is an offshoot of Dimensional Fund Advisors, proponents of the famous Fama/French paper on factor investing. Their funds are brand new so they have no history, but the research behind their methodology is solid. I for one am glad they made some relatively cheap options for factor investing available to the public, whether I ever invest in them or not. Now, will they outperform basic index funds in the long term? Who knows, but it's certainly possible. Would I put all my eggs in that basket? Personally no, but unlike pretty much any other non-index fund, I don't think it's that unreasonable to do so. And if you're just looking for a minor small cap value tilt, they may very well be the best option for that.
|
|
#
?
Dec 7, 2022 00:55
|
|
|
Good to know, and that's fair. I guess the two subjects don't necessarily go hand-in-hand. I don't know the first thing about factor investing, but more options becoming affordably available to the public sounds like a good thing in principle. Excited to learn more and see how it pans out in the long haul.
|
|
#
?
Dec 7, 2022 01:13
|
|
|
runawayturtles posted:Valicious has a lot to learn about taxes, but let's be a little open-minded on her choice of funds. Avantis is an offshoot of Dimensional Fund Advisors, proponents of the famous Fama/French paper on factor investing. Their funds are brand new so they have no history, but the research behind their methodology is solid. I for one am glad they made some relatively cheap options for factor investing available to the public, whether I ever invest in them or not. Essentially this sums up a lot of my reasoning. My eggs aren’t all-in on Advantis funds either. My Roth 401k is just a Vanguard TDF, and a majority of my taxable is in VTI and VXUS. I only “discovered” investing early last year, and I’ve been trying to cram as much knowledge into my head as possible. I’ve always stuck with roths for my retirement accounts in order to avoid dealing with taxes down the lines, so I never looked too closely at traditional. I’m coming to realize that might’ve been a mistake as my career doesn’t really offer advancement (home healthcare), and aren’t roths primarily for if you think you’ll be earning more when you do retire? There also the matter of mitigating the rush of tax rate hikes, which are pretty low right?
|
|
#
?
Dec 7, 2022 01:50
|
|
|
Leperflesh posted:As an aside, you are paying for example a .15% ER on a large cap value Advantis fund (AVLV) to track the Russel 1000 Value index to get identical performance to the Vanguard Russel 1000 Value index fund ETF, VONV, which only costs .08% ER. my understanding is that avantis funds are generally active, not passive, and seeks to beat the benchmark, not track it. they just try to do this in a very passive manner with a focus on screeners for profitability (maybe momentum?). thus the elevated expense ratios compared to vanguard of course, as we all know there's no guarantee that avantis's secrete sauce ever manages to justify the extra bps i'm not interested in factors or anything other than completely passive, so i've never retained much of the sales pitches i've heard, but here's a snippet from their website for avlv quote:This fund is an actively managed Exchange Traded Fund (ETF) that does not seek to replicate the performance of a specified index. To determine whether to buy or sell a security, the portfolio managers consider, among other things, various fund requirements and standards, along with economic conditions, alternative investments, interest rates and various credit metrics. If the portfolio manager considerations are inaccurate or misapplied, the fund's performance may suffer.
|
|
#
?
Dec 7, 2022 02:54
|
|
|
GhostofJohnMuir posted:of course, as we all know there's no guarantee that avantis's secrete sauce ever manages to justify the extra bps Fair point, but it should be mentioned that there aren't any passive ETF's that are cheaper than them for several of their asset classes. - AVES (Avantis Emerging Market Value ETF) is 0.36%. The closest EM Value ETF in cost is Schwab's FNDE at 0.39%. - AVDV (Avantis International Small Cap Value ETF) is 0.36%. The closest Intl SC Value ETF in cost is Schwab's FNDC at 0.39%. - AVIV (Avantis International Large Cap Value ETF) is 0.25%. A popular international value ETF is iShares EFV ETF at 0.34%. The Invesco FTSE RAFI ones are even more expensive. Avantis is actually extremely good value when alternatives don't really exist, as is the case with some of these value tilted portfolios. The question isn't whether Avantis' active sauce is worth the extra bps. The question is whether the factor loading is worth it. If it is, Avantis is hard to beat in both methodology, factor loading, and cost. 80k fucked around with this message at 05:15 on Dec 7, 2022 |
|
#
?
Dec 7, 2022 03:38
|
|
|
OK that's interesting, when I looked at a description of AVLV it looked like it was directly tracking the index, not using the index as a benchmark. .15% for a sort-of-active managed fund is not bad! I don't immediately buy any fund manager having a "secret sauce" that beats the market on a risk-adjusted basis over the course of an investor's long-term retirement savings life - like, 20-40 years for most of us - and I think the evidence has failed to show that anyone ever has done that over that time period. (No, we're not talking about Berkshire, Buffet invests in things retail investors don't have access to.) But if you're already in a place where you've decided to try to beat an index, I guess at least you're not paying through the nose for it.
|
|
#
?
Dec 7, 2022 04:19
|
|
|
Leperflesh posted:OK that's interesting, when I looked at a description of AVLV it looked like it was directly tracking the index, not using the index as a benchmark. .15% for a sort-of-active managed fund is not bad! I tend to agree. DFA has been around long enough that you can evaluate its performance mostly on factor loading and ER alone. The thing is, they do it very well, but I hesitate to believe that their "secrets" make a difference (patient trading, momentum-informed holding, profitability screens, IPO exclusions, etc). I think Avantis is offering the factor load and that "secret sauce" available at a price where you aren't really paying for the extras... so you are getting very good value if you want that factor loading. Myself, I am heavily invested in AVIV/AVDV/AVES/AVUV. I could probably live without AVUV, as I think the S&P 600 Value index and its ETF's/index funds are pretty awesome, but I feel like I am not paying much for a slightly deeper factor load. But AVDV and AVES? I've been wanting access to true value funds in those asset classes, and the RAFI fundamental-weighted stuff was not as pure of a play, and actually more expensive than the Avantis ETF's. The decision was easy for me.
|
|
#
?
Dec 7, 2022 05:25
|
|
|
Leperflesh posted:OK that's interesting, when I looked at a description of AVLV it looked like it was directly tracking the index, not using the index as a benchmark. .15% for a sort-of-active managed fund is not bad! https://xkcd.com/2270/
|
|
#
?
Dec 7, 2022 06:08
|
|
|
80k posted:But AVDV and AVES? I've been wanting access to true value funds in those asset classes, and the RAFI fundamental-weighted stuff was not as pure of a play, and actually more expensive than the Avantis ETF's. The decision was easy for me. international is already heavy on value compared to US total market, but if you're looking for other exposure to international value or quality there are a handful of other reasonably liquid non-RAFI ETFs that do it: EFV, IQLT, IVLU, SCHY The first 3 are from ishares. The last is from schwab.
|
|
#
?
Dec 7, 2022 14:14
|
|
|
pmchem posted:international is already heavy on value compared to US total market, but if you're looking for other exposure to international value or quality there are a handful of other reasonably liquid non-RAFI ETFs that do it: EFV, IQLT, IVLU, SCHY I was looking for pure value plays, so IQLT and SCHY were not ones I was interested in. EFV was my previous largest holding in this asset class. I did look into IVLU when it launched but its geographical weighting is quite different than the other benchmarks (being much heavier in Japan). Strangely, the RAFI ones, despite not being pure value plays, had a good factor profile and had the geographical weightings I was looking for, so I also owned PXF along with EFV. Until AVIV came out, which is: - cheaper than the others (including the iShares) - has the factor load I am looking for - has the geographical exposure I am looking for. I could live without AVIV, as EFV/PXF covered my needs before, but I do see AVIV as the best option out there in the asset class, and I was happy to switch over.
|
|
#
?
Dec 7, 2022 17:48
|
|
|
If I'm paying for health insurance out of pocket on the marketplace and my subsidy is tied to MAGI, wouldn't it make more sense to put my retirement savings in a traditional 401k vs. Roth? The subsidies drop pretty quickly - if I move 10k to Roth from trad, it costs me like $1500 annual in premium subsidies.
truavatar fucked around with this message at 06:05 on Dec 8, 2022 |
|
#
?
Dec 8, 2022 06:02
|
|
|
80k posted:I could live without AVIV, as EFV/PXF covered my needs before, but I do see AVIV as the best option out there in the asset class, and I was happy to switch over. yup that's fair. Based on those comments you may also be interested in DSTX and ICOW, the international counterparts to successful FCF based ETFs DSTL and COWZ, respectively. Problem with those is high ERs, and not quite 'pure value' factor. Avantis keeps stuff cheap since they're directly competing for Dimensional's clients. I find Avantis' funds appealing too. Glad they exist. Don't own any though (for now).
|
|
#
?
Dec 8, 2022 14:06
|
|
|
truavatar posted:If I'm paying for health insurance out of pocket on the marketplace and my subsidy is tied to MAGI, wouldn't it make more sense to put my retirement savings in a traditional 401k vs. Roth? The subsidies drop pretty quickly - if I move 10k to Roth from trad, it costs me like $1500 annual in premium subsidies. If the reduction in MAGI from a traditional 401k makes you eligible for additional premium tax credits than it's definitely something you should take into account. Whether or not that makes up the difference is hard to say, but 15% is a very considerable amount.
|
|
#
?
Dec 8, 2022 21:35
|
|
|
80k posted:I could probably live without AVUV, as I think the S&P 600 Value index and its ETF's/index funds are pretty awesome, but I feel like I am not paying much for a slightly deeper factor load. Glad you mentioned this. I added a bit of a small cap value tilt to my portfolio last time I rebalanced, temporarily with VSIAX. It's not the greatest fund for this purpose though as it's almost mid cap. I didn't realize Vanguard had an S&P 600 value alternative in VIOV, because I just looked at mutual funds, and the equivalent there is institutional-only. So, that'll be worth considering in addition to AVUV when I switch.
|
|
#
?
Dec 8, 2022 23:42
|
|
|
runawayturtles posted:Glad you mentioned this. I added a bit of a small cap value tilt to my portfolio last time I rebalanced, temporarily with VSIAX. It's not the greatest fund for this purpose though as it's almost mid cap. I didn't realize Vanguard had an S&P 600 value alternative in VIOV, because I just looked at mutual funds, and the equivalent there is institutional-only. So, that'll be worth considering in addition to AVUV when I switch. Little known fact, but Vanguard's Tax-Managed Small Cap (VTMSX) is a closet S&P 600 Index Fund. It's the fund I have held the longest and I am quite fond of it. It is not value, but the S&P600 index (non-Value version) actually has a slight value factor loading, and the S&P 600 Value index is even more valuey (naturally). I think VIOV/IJS are excellent proxies for US Small Value among the more mainstream options. And in taxable accounts, VIOO/IJR/VTMSX are probably best.
|
|
#
?
Dec 9, 2022 00:50
|
|
|
I am in the process of rolling over a 401k due to a new job. My main 401k was pre tax and all contributions were placed that way. That check is straight forward. I also received a second check that appears to be after tax contributions code g (I dont know where this came from) - for 0.42. I don't really want to deal with the paperwork plus separate accounts for fourty two cents. Do I have to or is this going to cause some irs flag? Also anyone know why I might have the 42 cents? The group, Newport, couldn't advise. Paul Proteus fucked around with this message at 20:55 on Dec 9, 2022 |
|
#
?
Dec 9, 2022 20:49
|
|
|
I probably wouldn't do anything with it because the IRS and everyone else deals in whole dollar values.
|
|
#
?
Dec 9, 2022 20:53
|
|
|
When that's happened to me, it's because I had accrued interest but not yet received that interest payment when the account was closed. They owe you the money even when the account is closed, so the owed interest comes to you in a separate check. Sorta like when you pay off your car loan and then a month later get a check for the $1.46 in extra interest you'd paid.
|
|
#
?
Dec 9, 2022 21:23
|
|
|
GoGoGadgetChris posted:When that's happened to me, it's because I had accrued interest but not yet received that interest payment when the account was closed. They owe you the money even when the account is closed, so the owed interest comes to you in a separate check. Not speaking of, but reminds me of, I switched my private student loans to Mohela and paid off my discover, where's my loving money discover.
|
|
#
?
Dec 9, 2022 22:15
|
|
|
Paul Proteus posted:I am in the process of rolling over a 401k due to a new job. It rounds to $0 so i wouldn't do anything with it.
|
|
#
?
Dec 10, 2022 23:27
|
|
|
I am trying to plan out 2023 contributions for 403(b), 457, and TSP plans for an individual and I’m wondering what limits I should be aware/wary of violating. For background, my spouse currently works at a state university where she has access to 403(b) (with a 10% match on 5% contribution) and 457 (no match) plans. Beginning in July 2023, she will continue to work at the university and will start working at the VA as well (it’s next door). She will be paid by each employer separately. According to this page (https://www.tsp.gov/making-contributions/contribution-limits/?tab=composition), it says that the 66,000 “annual additions limit” is “per employer and includes money from all sources: employee contributions (tax-deferred, after-tax, and tax-exempt), Agency/Service Automatic (1%) Contributions, and Agency/Service Matching Contributions.” Since she will have two employers (VA and State University), then she should be able to contribute the annual limit to the VA’s TSP and the annual limit to the university’s 403(b) and 457 as long as she doesn’t contribute more than 66,000 to the TSP (self + matching contributions) or more than 66,000 to the 403(b)+457 (self + matching contributions), correct? IRA limits should be separate from all the above as well, right? Are there any other limit issues I/we should be aware of with different plans at different employers?
|
|
#
?
Dec 12, 2022 20:58
|
|
|
|
| # ? May 27, 2024 12:49 |
|
|
I’ve been collecting RSUs at my job for a few years now and I’m thinking it may make sense to ‘diversify’ them by selling and putting them into a more diversified fund. I want to make sure when I do this that I only pay long term capital gains on them and I want to make sure I understand this right: Say a particular set of RSUs was awarded on 3/2020 with 1/4 vesting per year. So, the 3/2021 vesting part could be sold now and it would be LTC gains but I’d need to hold the 3/2022 vesting part until after 3/2023 for it to be LTC gains? I’m pretty sure this is right but figure I should confirm. My company is a dividend stock and this year I started taking the dividend and putting it into VOO since I didn’t have any grand idea what to put it in and I already do a Target Retirement account for my 401K. I was thinking to do the same for any stock I sell since I have no short term need for the money. Is there a different ‘diversified’ stock for parking money in? I get I’ll get taxed on dividend income there but I was anyways from my company stock so that alone doesn’t feel too bad to me.
|
|
#
?
Dec 13, 2022 17:32
|
|
