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While getting advice from an estate lawyer is never bad advice, it feels like overkill here. You're well shy of the $5M estate tax exclusion limit, and you don't seem to have complicated instructions for your estate. A simple $70 legalzoom will will suffice to ensure your kids inherit, but it's held in trust until they turn xx years. I have mine set up so that they get half their share at 18 and the rest at 25.
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Jul 2, 2016 03:59
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curried lamb of God posted:I haven't been eligible for a Roth IRA for the past 3 years due to not having taxable income, You sure about that? I know IRA rules require you to have "earned" income, but I didn't think it required any tax liability.
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Jan 19, 2017 18:11
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curried lamb of God posted:I didn't have any earned income for 3 years because of the Foreign Earned Income Exclusion. Hell, the first time I used the exclusion, TurboTax prompted me to take the money out of the IRA because of the lack of earned income. For the curious, I looked it up and this is right. Income that qualifies for FEI exclusion doesn't qualify as Compensation for IRA contributions. IRS Pub 590a posted:What Is Not Compensation? Interestingly enough, FEI does count towards your AGI when determining contribution limits https://www.irs.gov/individuals/international-taxpayers/individual-retirement-arrangements posted:If you exclude income under the foreign earned income exclusion or the foreign housing exclusion, you must add back the excluded amounts in determining your compensation for purposes of the IRA limits. Likewise, for purposes of determining the IRA limits, do not reduce your compensation by any foreign housing deductions.
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Jan 19, 2017 22:24
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Macaroni Surprise posted:I'm applying for new jobs because things are bad at my current employer. In this line of work it's typical to give 30 days notice as opposed to the typical 2 weeks, but my employer has a reputation of firing people after they put their notice in. They also have a reputation of refusing to pay remaining paychecks or PTO disbursement. Assuming you know for sure the firings have really happened and are not basing this on just a nebulous reputation, the proper response here is to not give notice. Tell them the day before you quit that tomorrow will be your last day. When they throw a hissy fit about the lack of notice, you can tell them point-blank that if they fire people who give advanced notice, they should expect their employees to stop giving advanced notice. If you really want to drive home the point, schedule a vacation that consumes all of your PTO, then call in to say you won't be coming back.
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Feb 23, 2017 17:57
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Luigi Thirty posted:I’m looking at you, Quicken, who hasn’t changed since 1995. But is dutifully obsoleted every thee years, forcing you buy the "upgrade" anyway...
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Sep 19, 2017 22:54
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You can also bring the 40K in at closing time if you prefer. Apply for the new loan at $120K, and the closing company will take the $40k from you to payoff the old loan.
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Jan 18, 2018 19:05
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Sundae posted:Let's say you have stock appreciation rights as part of your compensation. What happens if the stock splits? Is there a standard for how companies handle the impact to your previous strike prices? Yes, they should adjust the strike price to reflect the split. E.g. 2-for-1 split should halve the strike, etc.
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Feb 15, 2018 00:30
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Spokes posted:Quick question -- I'm going to be on a game show in the near future and I'm estimating that I'll win somewhere from 10k-100k (probably wishful thinking for the top end, but who knows). If I receive this money in April/May, is there anything wrong with the idea of throwing it in a bank to earn a few hundred in interest before taxes are due next year? I'm concerned that this is either stupid or illegal for some reason I haven't thought of yet but figure I'd rather ask here and be embarrassed for a day or two than end up the focus of the BWM thread when I go to tax evasion jail next year. The taxes aren't really due next year, they're due quarterly: https://www.irs.gov/publications/p505 . If you estimate too badly, the IRS will charge you underwithholding penalties and interest. Most people don't have to file estimated quarterlies because W2 withholding takes care of it. If you have a regular job, the easiest way to handle this is to have extra withheld from your paycheck to cover the tax liability from the game show winnings. If you go this route, you can win the money first, estimate the additional tax due and then adjust your W4 to spread out the withholding 'till the end of the year. Also, for all I know the game show may do a flat 25% withholding, which may or may not be enough depending on your other income.
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Feb 15, 2018 19:58
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Lando Kardashian posted:Hey GWM goons What APR is the student loan debt at? If it's >5%, I would go ahead and cash out to pay it off. You get stepped-up basis on inherited securities, so you'll only owe tax on the gains since you took possession.
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Feb 21, 2018 18:21
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Likely you're thinking of buying dollar coins from the mint with free shipping and immediately depositing them in the bank.
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Mar 20, 2018 11:00
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ohgodwhat posted:Bill Pay for my bank mails a check; does Zelle take ACH routing+account numbers? I thought it was just by email? Not from the sender. The recipient can link their account, if their bank is a member, or they can give Zelle routing+account, and Zelle will ACH the money. I'd send via Zelle and just give your landlord a head up that Zelle will email him if he is not already in their system. Jerk McJerkface posted:I have one other question about 529 accounts. I have two kids and I have 529's for them. One was opened with the help of my last job's HR, and the other with this job. I live in NJ, work in NYC, so I can't get any tax benefits, since NJ doesn't allow that, and it only applies in your home state Nevada's plan is 100% Vanguard, and like all things Vanguard is a true BFC pro move. Since you can't get state tax benefits from your home state, you should sign up with Vanguard and transfer the money prono.
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Apr 5, 2018 15:33
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DJCobol posted:Yup, you shouldn't be doing poo poo. Your insurance company should be going after either the driver of the car or the owner of the car that caused the situation. He doesn't have collision coverage of his own. It is highly unlikely that his his own insurance will subrogate the claim. He'll have to deal with the other insurance company directly, a process that can range from annoying to rage-inducing.
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Apr 13, 2018 16:05
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Beach Bum, how did you come to hold two individual stocks? Regardless of your debt pay down strategy, you should also work on moving those to tax sheltered accounts, invested in something more diversified, like Vanguard lifestyle fund or total market. I would also use those assets to payoff the credit card, assuming your cc has typical 20ish% interest rates. Then use the budgeting to make sure it doesn't happen again.
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Apr 13, 2018 16:43
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GoGoGadgetChris posted:If I can't get a rate below 4% I'll just pay cash. Assuming you have tier 1 credit... USAA is at 3.5%. There will be others; it shouldn't be hard to get under 4%. BMWFS is usually no more than 50bp or so from the best outside financing. BMWFS also knows how to handle the oddities of financing with Euro Delivery. (I can't remember if you're doing ED or not. You should, it's awesome.) Any other lender you'll need to explain and verify before hand so that they don't freak out over the lien delay. With tier 1 credit nobody cares about a down payment. They'll offer to let you roll in most of the taxes and fees, too, if you want a true "nothing due at signing" experience. Term can have an affect on rates; if you can swing payments on a 36-month note, you can probably shave a bit off the rate. Probably not worth it given the low overall rates, though. Thanatosian posted:I would guess that the high principal of that loan is going to make it difficult to finance at a low rate. Contacting credit unions wouldn't be a bad idea, but you may want to put something down on it to lower their risk. 60K is far from "jumbo" loan territory.
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Aug 15, 2018 03:11
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Hoodwinker posted:They do care about receiving somewhat proper withholding quarterly, so you can't do 99 allowances for the first half of the year and jack up your additional withholding for the second Actually, you can. The IRS only considers timeliness of withholding for quarterly payments. I used to play that game when interest rates made it worthwhile.
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Jan 13, 2019 03:21
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Hoodwinker posted:If you withhold with 99 allowances for the first half of the year how can you make your first two quarterly payments The secret is to not make quarterly payments at all. If you make Quarterly Estimated payments, (i.e. you mail a check to the IRS), then they will care about timeliness and evenness of the payments across the full year. But if you satisfy the PAYGO requirements via withholding (i.e. your employer mails a check to the IRS), then they do not care about evenness of the withholding. Specifically, form 2210 makes it clear that if you hit the 90%, 100%, or 110% payment safe harbors with your withheld amount then you don't owe an underpayment penalty, even if that withholding came in a single lump sum in December.
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Jan 13, 2019 08:53
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DaveSauce posted:Perhaps I should have phrased my question as, "How do stock options work" rather than, "what do I do with them." I expect I need to know more about the different types of awards and how they work before I can go in to depth on how they fit in our portfolio. Basically my wife was given a summary piece of paper showing her raise, her bonus, and also that she is eligible for $X in stock options (without saying any other details and her boss not knowing how they work either). I'm late to the Option Chat, but I want to chime in because I disagree with some of Motronic's advice. Options aka Non-Qualified Stock Options aka NQSOs: This is almost certainly the kind of options your wife was offered as a non-exec employee. They give you the right to buy a predetermined number of shares of the stock at a predetermined price ("strike price") for a predetermined period of time. You already got the part about profiting from the difference between the stock's current price and your strike price. The strike price will almost certainly be the stock's market price on the day of the grant. You will also need to know the vesting schedule and the expiration date. The expiration is typically 10 years from the grand date, but it might be something else, and it's very important to know this date. Once vested, you can exercise at any time until the expiration date. NQSOs usually can't be sold or transferred, so your only choices are to exercise or let them expire. That combined with the inherent time value of the option means you generally want to exercise as close to the expiration date as possible. Be sure not to gently caress it up because options worth a boatload of money on expiration date are worth zilch the day after. There are hedging strategies you can pursue to guard against the stock crashing right as you're up against the hard deadline of the expiration date, but they're beyond the scope of this post. NQSOs get decent tax treatment in that you don't pay until you exercise, so there's no tax bill on the vesting. The difference between FMV and your strike price on the day of exercise is taxed as ordinary income. Restricted Stock Units aka RSUs: For these, the company just gives you some stock, and then you can do with it what you want. Here I agree with Motronic - you wan to sell as soon as these vest and move the money to your diversified investment portfolio instead. RSUs are taxed at vesting and the full FMV of the stock on the day of vest is taxed as ordinary income. Any gains or losses after vesting are capital gains, but since that doesn't apply to the value at vesting, that is one more reason to go ahead and sell. The company will also typically pay you a "dividend equivalent" before the RSUs vest. They will pay you the dividends on your unvested shares. Because you don't actually own the shares yet this is still ordinary income. Insider Trading: There are no exceptions to insider trading laws for any of these stock incentives. If she has material non-public information she can't trade on that, but not all "sensitive" non-public information is considered material for the purposes of insider trading. Big companies usually have procedures around this in place for employees, where they identify the employees who have MNPI and have defined go/no-go trading periods for them. I.e. if her company thinks she has MNPI, they should train her on the system they use to regulate when she can and can't trade. She can always call her ethics office and get the scoop from them.
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Apr 24, 2019 15:16
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Bushido Brown posted:One more dumb question on this: if I want to do the backdoor shuffle, I should wait until I have the full 6k to put in, and do it all at once, right? It's what I'd do. It simplifies the accounting at the expense of some potential gains.
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Apr 24, 2019 15:24
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Duckman2008 posted:The main downside is there is no way to deposit cash. For reasonable amounts of cash (<$10K) you can buy money orders at the post office ($1.75 per $1000) and deposit those like checks. IOwnCalculus posted:Chase is the absolute worst / most paranoid about randomly flagging accounts for fraud and locking cards. It's been my experience that Chase is highly attuned to your purchasing patterns so what they'll flag depends on how you use the card. I've used a Chase card as my primary travel card for forever and don't even bother to tell them when I'm leaving the country anymore. It's always worked straight away wherever I've gone. Someone did manage to clone the card once and use it at a Walmart in a suburb local to me. That poo poo got flagged instantly because I don't shop at Walmart.
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Oct 1, 2020 14:13
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Small White Dragon posted:Some banks/credit unions will not accept e-deposits of money orders, so do check that in advance. Well, you can always just mail 'em in, since you're already at the post office 
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Oct 2, 2020 04:19
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Congress has explicitly tried to kill student credit cards: https://en.wikipedia.org/wiki/Credit_CARD_Act_of_2009 The right first card may very well be "any no-fee card that'll accept you". I'd try for a Discover card before I went looking at secured cards.
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Nov 5, 2020 20:32
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Poh - tay - toe / Pah - tah - toe The express point of those provisions was to kill easy credit for college students that had been the norm in preceding decades, and it did so. Typical college students who are mostly living off of loans/mom-n-dad aren't going to qualify for much in the way of credit when the banks have to underwrite on their token income. Premium rewards cards for a student with no credit history is very much a bygone era.
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Nov 5, 2020 21:49
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StrixNebulosa posted:I don't want a USAA-related card as that account is a joint one with my dad and um, no. The whole point of getting a new bank is that it's not tied up with my parents. If your dad qualifies for USAA, so do you. You can open a solo account. On the one hand USAA is famous for their member service, on the other, they are notoriously risk averse. So I don't know if they will solve your CC problem. It's worth a call to find out, though.
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Nov 7, 2020 03:12
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Chaotic Flame posted:Retirement. What can I do now that I can't contribute to a Roth IRA? My current one is with MassMutual (had a partnership with my old company). Is it fine to leave it with MM? Should I be looking elsewhere like Vanguard? I'm also fully funding my 401(k) along with an employer match but that's it now. I don't have kids or a high-deductible health plan. Is it just traditional IRAs at this point or other taxable accounts? I know there's a backdoor Roth but am hazy on what that actually means and/or how it needs to be set up along with the implications. Backdoor Roth: 1. Open an Traditional IRA, if you don't already have one 2. Contribute to this IRA 3. Wait a day 4. Tell the company who holds the IRA you want to convert to Roth. 5. Fill out the 8606 on next year's taxes to document #2 and #4 As long as you don't have any other trad IRAs (you say you don't), this is a simple process and you only incur taxes on any gains that happen during #3. If you're happy with MassMutual and the expense ratios are competitive, then there's no real reason to move. If you're not happy or MM is expensive, then you can do this all at Vanguard, additinoally transferring your existing Roth to have it all under one roof. Chaotic Flame posted:Mortgage. Currently have about $15,000 saved for a mortgage. Long-term, planning to use vesting RSUs to add to this in 2023 (overall grant was $100K but the stock has appreciated quite a bit since the initial grant, so will likely be more, outlook looks fine for the company). Could be in a HCOL or a less expensive but still higher than most cities COL area. Should I still be throwing a good chunk of leftover monthly money into this vs. other retirement accounts that I may setup? I'll still be contributing to it but not sure if I should prioritize over other accounts and savings. Sounds like you aren't really that close to purchasing and aren't even sure where you'll settle down yet? IMO, you should prioritize retirement savings until you have a better idea of what you're looking for and how much you plan to spend. At that point, you should save for a 20% down payment in your house fund.
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Jan 30, 2021 04:09
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Don't take a distribution. Governments don't do 401k plans, but they probably have an equivalent 457 plan you can roll over your old balance to. Alternately, open a rollover IRA and have the funds transferred there. This is simpler now, but may complicate your future investment options if you ever expect to make more than $125K/yr.
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Feb 24, 2021 21:09
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H110Hawk posted:Vanguard runs one as well. Nevada Pauly Shore posted:Quick question on future education funding: No issues with putting gifted money in a 529, but you should be aware that grandmother-owned 529 vs parent-owned 529 vs grandma-held-non-529 investments will all get different treatment for financial aid.
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May 17, 2021 23:02
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pmchem posted:Interesting. Details? See E.g. https://www.road2college.com/best-strategies-to-pay-for-college-with-529-plans/
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May 18, 2021 01:24
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Dross posted:The Toyota dealership where I bought my 2014 Corolla a few years ago has emailed me like six times this month begging me to trade in my car and upgrade, I’m like are you kidding me I’m in position to pay it off this year and I’m very much looking forward to not having a car payment. But I can get you in a brand new Corolla for the same money*, nothing down! It's practically a free car! * same monthly payment on a new 84 month loan.
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May 18, 2021 22:39
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SlapActionJackson posted:See E.g. https://www.road2college.com/best-strategies-to-pay-for-college-with-529-plans/ Quoting myself from earlier about this topic. The type of account and account holder can impact financial aid treatment, so you might want to think about that. If you'll still be earning SV money when your daughter starts you might not get much financial aid anyway.
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Jun 27, 2021 22:58
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LMFAO paper check Zelle is fine. It's just a thin wrapper around ACH so the support for it is exactly as good as your banks support for anything else.
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Nov 1, 2022 19:06
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Are you talking about staeting a mega backdoor? Yes you should do that if you can.
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Jul 21, 2023 04:07
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Traditional 401K and Roth 401k share a contribution limit, just like trad/Roth IRA. The sum of 401k contributions to the two can't exceed $22,500. It's not an option to contribute beyond the individual limit by contributing directly to a Roth 401k. The "mega back door" works around that by making non-deductible after-tax (but not Roth!) contributions, then rolling it over to the Roth. This gives you access to the combined limit of $66,000, which needs to fit your regular/Roth contribution + employer match + mega backdoor money. Your 401k plan needs to be compatible for this to work at all, but those that are tend to allow you to auto-convert after-tax contributions to Roth, automating that part of the process. They tend to not have guardrails on setting up amounts, so be sure to math it all out in advance and stay within the limits. hobbez posted:if so, how dumb! Welcome to the US tax code.
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Jul 21, 2023 14:41
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Boris Galerkin posted:they offer a service that they say can connect directly to my local bank account and then I can transfer money from the local bank into SoFi through the SoFi website directly. That functionality is the norm. This service will be through an aggregator like Plaid and actually represents an industry step in the right direction on security and authentication. If your local bank is tech-competent you will see a federated login for them (i.e. Plaid never gets your credentials) and Plaid/SoFi just get an access token that lets them do the withdrawals.
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Jul 21, 2023 22:53
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Inherited IRAs have distribution requirements. You can't just mix the inherited money with your own IRA assets and save it all until your own retirement. Given the modest amount of money at stake here, I would absolutely just take the lump-sum distribution and save the headache.
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Jul 24, 2023 22:02
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Is your friend owner of the 529 or just the beneficiary? That may have an impact. IIRC, the Roth rollover option is tax-free, so question 2 should be moot.
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Oct 21, 2023 23:14
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529s already have Roth-like tax treatment at the federal level (no tax break for the contribution, but potentially tax-free growth), so it makes sense that the 529 -> Roth rollover path is tax-free from the feds. State tax treatment may be different, he'll need to look that up.
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Oct 22, 2023 00:26
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The Slack Lagoon posted:My sibling and their partner just had a baby. If I wanted to put some money aside for the kid for when they turn 21, what would be the best way to do that? EE bond? Drop it in an investment account? Can I set up an account on their behalf? Not looking to do a ton of money. The EE bonds after 20 years is appealing but I suppose putting it in the market will probably yield a higher return over the same time period. A trust is an ideal vehicle for this, unfortunately it's not economical unless "some money" is at least high-six-figures for you. 529 is good, but using the proceeds is restricted to education or $35K in Roth IRA contributions. UTMA account can be set up at a bank or brokerage - not restricted but it will become the legal property of the kid at the age of majority in his state (usually 18) so you'd need to be flexible on the 'turn 21' part. Taxable account in your own name and gift it to the kid - you control it all (and pay the taxes along the way) then gift the funds when you think the kid is ready. I agree with Kyoon that EE bonds are underwhelming on that timescale, but it's still a nice gesture and better than nada!
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Mar 8, 2024 20:06
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Sundae posted:In a perfect storm of mail theft and bad delivery timings, my mailbox was broken into at least 7 times last week by someone with a master key. It appears that they took the following: Fill out an identity theft affidavit with the IRS to get an identity protection PIN and lock down your tax file. e: I speak from experience here - someone filed a fraudulent return with my info in 2016. It was a huge pain in the dick and took 4 years to fully resolve. SlapActionJackson fucked around with this message at 23:57 on Apr 9, 2024 |
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Apr 9, 2024 23:49
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KYOON GRIFFEY JR posted:I am a little surprised that it makes sense for both you and your wife to have separate employer sponsored health insurance. Usually one spouse's options are better and it generally makes sense to participate in that spouse's plan as a family. I guess there are probably some plans that don't offer family coverage? It's not that weird. Mrs Jackson's and my insurance both offer family plans, but it's always been more economical for us to maintain separate insurance. Even once we had kids, they went on her plan, and I stayed on my own.
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Apr 15, 2024 23:55
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root of all eval posted:My understanding is that I can contribute to my HSA freely still, and actually still use those contributions on anyone in the household at a later point. This is right. If you're on an HDHP and she's on a regular PPO, you can contribute up to the individual max and still spend your HSA dollars on her care. Whether or not you want to do that vs treat the HSA as another IRA is a tax planning question.
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Apr 16, 2024 21:08
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