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My base salary is close to the income limit for Roth IRA eligibility. What happens if I contribute throughout the year but I end up with a bunch of overtime that puts my AGI over the limit?
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Apr 18, 2019 17:21
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| # ¿ May 22, 2024 18:24 |
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Leperflesh posted:My view: ESPP represents a small bonus, if it's available and you can spare the money then go for it, sell the instant you can, and seriously reconsider participating if you're not allowed to flip the shares as soon as you get them. This is how I treat it. The 15% discount I get is free money, the risk is that our stock price drops more than 15% (minus taxes) in the short interval before I can unload it each time (hasn't happened yet). withak fucked around with this message at 20:16 on Apr 18, 2019 |
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Apr 18, 2019 18:55
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Why do internet flowcharts tend to recommend funding an IRA before a 401k (after you get any employer match)? It seems like the main difference is with the 401k you are stuck with whatever investment options your employer's plan offers. If your employer's plan isn't any more expensive than what you get from Vanguard or whoever then is there any other reason to pay into an IRA before a 401k?
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May 14, 2019 18:37
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Motronic posted:Yes. You don't control the future choices in your employer's 401(k) plan, so even if they happen to be good now they may not be in the future. If you aren't leaving the company you are then in a position where you can't roll any of this money over. Current IRA provider get lovely? Roll that over whenever you want to wherever you want. Can't you roll your current 401k into an IRA if you quit and go to work somewhere with terrible options?
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May 14, 2019 18:51
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Ok thanks. My employer's plan includes Vanguard's cheap target-date funds so I wasn't sure if there was some other factor in the decision that I was missing.
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May 14, 2019 18:59
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You can put away post-tax money in a Roth (directly or back-door) right now.
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Jun 5, 2019 17:27
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Yeah ESPP with a discount is free money. Sell it for 18% more than you paid the moment you can and pocket the additional income.
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Jun 8, 2019 02:46
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Yes
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Jun 15, 2019 21:12
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Yeah you are paying the operators of the bond funds to deal with all of the issues with buying and selling actual bonds so that you can buy and sell their funds any time you want.
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Jun 17, 2019 15:59
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BRB, forwarding this thread to tips@irs.gov
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Jun 29, 2019 23:37
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If you need to regularly take cash out or spend money from it internationally then it really isn't an emergency fund and an online-only bank may not be a good choice. If your emergency fund scenario involves something where the couple of days it might take to transfer between banks matters then you should keep the money in your regular bank. One option might be to keep a little bit of the emergency fund in your regular bank savings account where it is immediately available and the rest in a high-yield online account where you can get to it in a few days.
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Jul 5, 2019 18:36
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If you like credit unions, Alliant is an online credit union with a 2.something % savings account.
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Jul 10, 2019 02:55
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You only pay taxes on it once. The people who have a big tax bill after a conversion are the people who previously deducted the Trad IRA from their taxes. If you couldn't deduct the contributions to the Trad IRA then you only have to pay taxes on any gains that came before the conversion.
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Jul 11, 2019 21:18
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Mahatma Goonsay posted:I did my back door roth conversation and apparently I earned 4 cents of interest during the one day it sat in my traditional ira. Is there anything I should do with it? Am I going to have to pay taxes on it when I convert next year? Taxes forms are rounded to the nearest dollar.
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Aug 3, 2019 18:03
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Take unpaid leave for the rest of the year.
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Aug 5, 2019 19:42
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Ur Getting Fatter posted:I don't have near enough technical knowledge to dissect this, but I figured you guys might find it interesting. It's the hedge fund manager who bet against CDOs in 2008 (The Big Short is about him) essentially saying he sees a lot of the same risk factors in Index funds. Is this related to the thread title?
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Sep 4, 2019 16:39
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spwrozek posted:Nothing better than a hot coffee in a can for 100-150 yen. Not sure whether a machine that delivers hot coffee to your can would go over well in the US. Sounds like more of a Japan thing.
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Sep 30, 2019 16:44
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nelson posted:There’s also the wait for the remodel until we can pay for it with cash method. You will never star in the BWM thread with that attitude. withak fucked around with this message at 03:24 on Oct 16, 2019 |
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Oct 16, 2019 01:40
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Tax calculations are rounded to the nearest $1, withdraw and spend that penny worry-free.
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Jan 7, 2020 19:41
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Mu Zeta posted:I never figured out how to throw away kitchen knives. Safely I mean. Just grind 'em blunt first.
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Jan 11, 2020 03:44
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androo posted:I know a lot of goons like to throw cash into their Roth ASAP at the start of the new year. What's the benefit to this? As opposed to any other time in a calendar year? The sooner the money is in there, the more the number goes up.
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Jan 22, 2020 06:21
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P. sure the only purpose of the form in question is to report the amount that you contributed to your IRA this year. So if you know how much you put in this year (spoiler alert: it's $6k) then you don't need their form. You can report your non-deductible contributions without that form.
withak fucked around with this message at 03:38 on Feb 2, 2020 |
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Feb 2, 2020 03:36
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no edit: You have to file form 8606 to document non-deductible contributions to an IRA.
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Feb 2, 2020 03:38
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the pdf version of the 8606 might let you use helvetica 12, idk
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Feb 2, 2020 03:41
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I think you can retroactively report it. You might have to pay a fee if you can't think of a good excuse why you hosed up tho. edit: LMGTFY https://www.google.com/search?q=late+8606 withak fucked around with this message at 03:48 on Feb 2, 2020 |
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Feb 2, 2020 03:44
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Reporting non-deductible TIRA contributions is how you avoid paying taxes on them if/when you convert to a Roth IRA.
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Feb 2, 2020 04:40
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For me, the fees and taxes for selling ASAP don’t leave behind enough money to make the extra tax paperwork worth the headache.
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Feb 14, 2020 19:35
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Ralith posted:You understand that the taxes are only on the profit, right? Yes, but the flat commission on the sale is set high enough that I net less than $100 for the year after putting in the max amount I am willing to. Not worth the headache and having that money locked up for the duration IMO. withak fucked around with this message at 20:18 on Feb 14, 2020 |
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Feb 14, 2020 20:12
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Bank connections to PC/Mint flake out all the time.
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Feb 17, 2020 17:21
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KillHour posted:This backdoor stuff is what always scared me off of opening an IRA. Is there an idiot's primer to doing this properly? It's just transferring money from a Trad IRA account to a Roth IRA account. Whoever your investment accounts are with will basically have a button to do this. If you are starting from zero right now then just put $6k in a Trad IRA account then transfer it to a Roth IRA account as soon as the transaction clears. Next tax time there will be a form where you document how much you put in the TIRA and how much you transferred out, and there won't be any extra taxes to pay unless that $6k managed to earn more than $1 before the transfer. It's more complicated and expensive if you already have a bunch of money in a Trad IRA. When you make the transfer you have to pay taxes on the gains and on anything that wasn't taxed before it went in.
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Feb 27, 2020 18:36
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Fhqwhgads posted:If you can only contribute $6k/yr how does the mega backdoor option work? This was the first year I needed to backdoor Roth, so I just put 6k into an empty IRA and pressed the button but I could have put in more. But if 6k is the max how do you stuff more in there? Contributions are money from your bank account. Transfers from other retirement accounts aren’t considered contributions and don’t have the income cutoffs that real contributions do (that is the “back door” loophole).
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Feb 28, 2020 20:58
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skooma512 posted:I know, but I can't pretend that sticking a bunch of money into VTI and having it go into freefall for the first month isn't an emotional blow even if it is the right thing to do in the long run. Imagine how it would feel to stick it in VTI the day before the market shoots back up 5%
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Mar 1, 2020 23:26
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The Big Jesus posted:Ayo it's ya boi whose purchase of $10k in VTSAX went through end of day Friday checking in. How much should I expect to pay for access to future investing advice?
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Mar 3, 2020 02:13
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Lol if you think SS is still going to exist in >10 years.
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Mar 4, 2020 04:45
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tumblr hype man posted:Coronavirus nuking Boomers might help it out some. Yeah, sharpening up the tip of the pyramid can't hurt.
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Mar 4, 2020 05:06
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Killing your wealthy parents is fast money.
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Mar 5, 2020 19:05
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The goon who said March 19 is the low point is full of poo poo, you will want to wait until March 23 to put all of your money in.
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Mar 9, 2020 15:24
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Woofer posted:Let me preface this by saying i am not going to be withdrawing from my 401k. Someone in another thread said they would be withdrawing it due to the market crash so that they can pay off credit cards and it got me curious about the taxes involved in withdrawing, so I have a pretty simple question. It basically is counted as income in the year you withdraw, you pay the same taxes you would on any other income. But if you are taking money out early then you pay an extra penalty on top of that also.
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Mar 10, 2020 16:37
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Mu Zeta posted:I contributed $6,000 to my Roth ira in January but I completely forgot to actually invest it in anything so it's been sitting in the sweep account. Kind of a market timing success by accident I guess. Though I'm not sure if I should dump it into vtsax like I usually do since it's so extra volatile right now. Best time to invest will be in a few days probably.
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Mar 12, 2020 18:29
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| # ¿ May 22, 2024 18:24 |
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wide stance posted:That reminds me, the Roth IRA income limits are the biggest crock of bullshit. It doesn't really matter, backdoor Roth is dead easy.
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Mar 13, 2020 23:34
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