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CoronitaParticipant[quote=scaredyclassic]yeah, we should have a housekeeper. this is too much.
however, as to a., b., c., and d. that you describe above, I dispute that there is any way to know what those numbers are.[/quote]
Look at it this way. There’s a lot of people out of work these days. When you hire a housekeeper, a gardener, or buy some takeout food, you’re either creating a job for someone or helping someone keep theirs.
CoronitaParticipantIn general, I like the idea of 401k’s and IRA’s, I just wish the rules were more consistent and simple, and for some, I wish there weren’t hoops to jump through.
For example: let’s say your AGI is above the threshold to allow you to contribute to a Roth IRA. Well, there is a legal way still available, called the backdoor Roth IRA conversion.
The idea is basically, you open a traditional IRA and deposit the money, say $3000 into your traditional IRA and then immediately do a Roth IRA conversion. Since the money you put into the new traditional IRA has not earned anything, when you do a Roth conversion, there are no tax consequences
….Well, almost no tax consequences…You see, the big assumption is that you do not have any other IRA accounts opened. If you do have any other IRA accounts, than technically when you converted that $3000 to Roth, you took a distribution across ALL your IRA accounts, not just the one that you opened. From the IRS perspective, an IRA distribution is not from a specific account, it’s from your entire IRA amount across all accounts…
…However, the IRS treats IRA and 401k differently.
If you had a 401k account, and no IRA accounts, then you could do the backdoor roth IRA conversion, since you will only open 1 traditional IRA to do the backdoor roth ira conversion. Again, IRS treats your 401k diferrently from IRAs, even 401ks that were from your previous employers…..There are two huge implications of this 401k and IRA distinction from the IRS.
1. If you ever rolled over a 401k from a previous employer to a Rollover IRA, you just eliminated your ability to do a backdoor Roth IRA. Because the moment you converted your 401k to a Rollover IRA, now you have an IRA account that will be counted as part of any distribution you take converting any IRA money into a Roth IRA,and your pay taxes on that distribution, even if you are taking out (say $3000) exactly what you just put in.
2. If you have other traditional IRAs and want to do a backdoor Roth IRA, then what you could do is you could rollover your IRAs into your existing employer’s 401k plan, if they allow that. Then, for the purposes of the IRS, you have no other IRA accounts, and therefore can do a backdoor Roth IRA conversion. But there are drawbacks to doing thiss.
1. You would be limited to the fund selection(s) and fees of your current employer’s 401k plan
2. This assumes your current employer even allows a rollover from elsewhere into your current plan.Why is it this complicated, I have no idea… But again, yes another first world problem.
Morale of the story. If you want to do a backdoor Roth IRA, don’t ever rollover a previous employer’s 401k account into a IRA… Either keep the 401k or roll it into your existing employer’s 401k plan.
CoronitaParticipant[quote=plm]I’ve come to the realization that deferring taxes into a 401K is shortsighted and I’m probably going to end up paying an even higher rate when RMD kicks. Just switched to a Roth 401k instead but it’s too late, having maxed out contributions to 401k for a long time already.
Fidelity 401ks have something called brokeragelink where you can invest into whatever you wish. That seems a better option than rolling into an IRA since you can still do a backdoor ROTH this way.[/quote]
The brokerage link option for Fidelity is only available if your 401k plan allows for a self directed plan. I have a Fidelity 401k from a previous employer and one from my current employer.
My previous employer’s plan allows for self directed investment via brokerage link.
My current employees plan doesn’t.
If I could roll money over from my current plan to my previous one, I would. But can’t do that too.
The fund selection is also better in the previous plan. Although Fidelity administers, most of the funds are institutional vanguard index funds with very low fees….
CoronitaParticipant[quote=sdrealtor]Don’t remind me[/quote]
I sold some AMD yesterday…. Right before the almost 8% gain today alone…. Bite me.
CoronitaParticipant[quote=scaredyclassic]Im not sure i see any advantage to a 401k for me other than lawsuit protection. Seems actually bad.
If i were betting, id say some sort of extra 401k tax, esp on higher inc. People, is a likely future event.[/quote]
there’s lawsuit protection.
In the case that your company has a 401k match, it’s free money (so at least contribute to get the maximum match)
But it’s also a way for people who otherwise aren’t financially disciplined to force them to put money away for the future.
The problem is a lot of 401k plans suck. They fund selection suck, and the fees suck. Some plans, are more or less self-directed, so that’s good.
The issue with 401k though is it’s going to get a lot more complicated…
The problem is that a lot of these funds can now speculate in much riskier private equity.
CoronitaParticipantgold, silver, platinum prices up again.
1864, 22.79,905
CoronitaParticipantMy parents got hit hard with RMD.
Their forced RMD income now is way above what they use to make during the working years.I’ve split my annual contributions to 50% traditional 401k and 50% Roth 401k.
Then again, they could always change the rules fo Roth 401k’s too.
I don’t try to trade my 401k. Drip drip drip and forget it, maybe a semi-annual rebalance.
I’m trying to build a much larger sizable position in my after tax account, paying taxes up front. So far, it’s been ok…. I think when Biden takes over, we’re going to see a lot of tax law changes, and for practical purposes, most people here will be paying taxes up the noses in the future.
Biden’s plan is already calling for the elimination of 1031 exchanges and step-up cost basis
CoronitaParticipantI thought one of the big drawbacks to DSTs was that for many of them, they are hard to get out of.
CoronitaParticipantGold at 1840/ounce. Silver at $21.
My bullion is 30% above what I bought them at starting in 2016. Not great return, but I’ll take it.
CoronitaParticipantHuh? I think this is a great thing. I can create my own index funds and not worry about getting nickeled and dimed.
One button, a group of stocks gets all sold or all bought at once. Instant gratification, man…
CoronitaParticipant[quote=spdrun]sdrealtor — I bet that you love that (possibly Federal, possibly not) goons in unmarked rental cars are kidnapping protesters in Portland. That Fascism must taste mighty good to you … anything for property values, right?[/quote]
Well, considering a few months ago before covid took over NYC you were cheering for Covid to sterilize a good portion of the population , I thought this was odd considering you were living in ground zero. And then before that, you were pretty vocal about wishing for death and destruction and crashes so that you personally could profit from it and buy cheaper real estate. you posted about this all over this board. Are you saying after a few months of home quarantine.and seeing a bunch of people die where you live, you’ve suddenly had a change of heart and a little of humility and humbleness and are for the first time starting to show, I dare say, compassion, despite your previous self being a huge proponent of human suffering if you could personally benefit from it? Of the answer is yes, I’ve changed, wow… I have to admit good for you…I think it’s better for you.
CoronitaParticipantI normally just get a chip or tiny crack. But since this car is so low to the ground and the windshield is thin, I ended up with a 12 inch crack …. first I’ve ever had in any car the past 20 years. and I’ve only had this car for slightly over 3 years and it’s an occasional driver…. oh well.
I’m taking this with stride. It’s not a luxury car. it’s not a luxury car..It’s an econ box…I bought it so I can toss it around without feeling so remorseful if it gets a few bruises and cuts…I keep saying to myself… Problem is that I’m OCD when it comes to a car’s appearance…
I feel kinda guilty. I already broke the exhaust once when it ran too hot. Then I snapped the transmission a few months ago. And now this. And while the mileage is low, it’s all track and autocross miles lol.
I guess it could be worse. This could have a been a Porsche with a much bigger repair bill if that condo short sales didn’t come along a few years ago. I can’t afford to abuse a Porsche….yet…
CoronitaParticipantWell that does it. I guess I wont get it. Looks like it doesn’t last that long. I get a new windshield tomorrow.
CoronitaParticipantMy windshield deductible is $250. The issue isn’t the cost, the issue I’m tired of the downtime of this car and this car is known to have easily breakable windshield. The other issue is that to replace the windshield, they also have to replace the once time use window garnishes that surround the windshield, which is suppose to be color coded to the rest of your car. The problem is that if I keep replacing the windshield, the color these garnishes wlll be slightly off from the rest of the car which has slightly faded over the years. First world problem…
It’s actually quite pricey for the insurance to replace the windshield for me. The windshield and labor is about $400. But on top of that, they have to pay $300 for the color coded trim pieces that surround the windshield. And those trim pieces were covered with Xpel clear bra, and to have them redone ala carte, the company that did it wants $250 for that too. So insurance is going to be forking over $700 each time I need a new windshield with the $250 deductible I have. I probably need a windshield once every 2.5 years.
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