Personal Finance What happens if you contribute to a Roth IRA but at the end of the year, you realize your income was higher than the maximum allowed by the IRS? (US) |
- What happens if you contribute to a Roth IRA but at the end of the year, you realize your income was higher than the maximum allowed by the IRS? (US)
- Laid off at 57: Advice on pension, 401k, etc.
- Stage 4 cancer, no insurance, but stocks and IRA
- Should I refinance from 3.25% to 2.75%
- Considering opening a Roth IRA and looking for advice
- How to best grow my extra $7,000
- Car repossessed after two weeks
- How Much Rent Can I Afford?
- Best method to pay of mortgage quickly
- Best Method to Repay $50K worth of debt?
- What would i tell my mom to do?
- HSA is Hemorrhaging
- Question about gift tax
- Pay off student debt, car loan, or IRA?
- How do you balance allocation of savings between short-term and long-term?
- Hurt my foot at work, now I'll have to pay $8k for surgery :(
- Medical Bill sent to Collections 90 days from DOS and didn't get a bill
- My graduation present is ~$5k worth of federal savings bonds. What should I do with them?
- Whole Life Insurance as Investment Vehicle Advice
- Payoff current mortgage faster or save for future house down-payment?
- ROTH IRA Income Limits after marriage
- Front-loaded Commisions
- I am having trouble with an equifax credit freeze.
- Any luck reducing your Geico premium?
| Posted: 09 May 2020 08:00 AM PDT I'm in a sales role, so my exact income is a mystery to me until the end of the year - it can vary a lot from year-to-year. What happens if I start putting money into a Roth IRA now, but at the end of the year find out I don't qualify because of my annual income for 2020? [link] [comments]  | ||||||||||||||||||||||||||||
| Laid off at 57: Advice on pension, 401k, etc. Posted: 09 May 2020 05:49 PM PDT I caught a lay off recently. No pity, we're pretty fortunate financially. But I don't know much about the choices I need to make and I'm hoping for some general advice. I'll be 57 when I go off payroll on July 1. I've been through a few company acquisitions, so I have, all with the current company name attached and managed by the same 3rd party account:
I'd appreciate any general advice. I don't really know the differences between a 401(k) vs an IRA, etc. Whatever I roll over, I'd like it to be at Vanguard with some other stuff. Retirement Income Plan Service Based Program (Vested)We can immediately start drawing low-4-figures/mo. or get a mid-6-figures lump. There's no advantage to delaying this one -- with a later start, the payments stay the same and the lump amount goes down. The income stream is appealing, but I'm paranoid about the company screwing us someday. (The acquired company I was in took health care away from retirees many years ago.) How do I judge that risk? Also, we have enough non-tax-advantaged savings to make it to 65 and could roll a lump into an IRA (or ??). Retirement Income Plan (Cash Balance, Vested)Mid-5-figures lump vs low 3-figures/mo. The lump or the monthly payment go up a bit if I wait 8 years to age 65. (Due to investment growth, not more input.) Can I roll this over like I can the other pension and the 401k? Savings/401(k) PlanLow-6-figures. We'd definitely roll this over into an IRA (or a ?). Any advice? Thanks. [link] [comments]  | ||||||||||||||||||||||||||||
| Stage 4 cancer, no insurance, but stocks and IRA Posted: 09 May 2020 06:29 PM PDT I'm a short-timer, less than 6 months now. I'm going to dissolve my Apple stock and IRAs and 401(k) plans to pay for palliative care and pain management meds. What should I know before I do this? Please help me avoid stupid mistakes. [link] [comments]  | ||||||||||||||||||||||||||||
| Should I refinance from 3.25% to 2.75% Posted: 09 May 2020 06:43 PM PDT House Value $390,000 Current: VA Loan for $375,000 (now 320K) on Jan 2016 30 years term 3.25% Pay $400 additional for principle each month. Should I refinance to: VA loan for $320,000 with cash-out $30K (payoff personal debt) 20 years term 2.75% $4K fee Purpose of refinance is to payoff sooner and save on interest pay. How much would I save? [link] [comments]  | ||||||||||||||||||||||||||||
| Considering opening a Roth IRA and looking for advice Posted: 09 May 2020 08:01 AM PDT I'm currently 22 and would like to get a jump start at retirement savings. I make about $400 to $450 a week after taxes and am thinking about opening an account and contributing $150 to $200 a month. I am fortunate in my financial situation in that I don't have student loans and my parents help with my expenses like rent. Is now a good time to start and would the monthly amount I'm looking to contribute be worth it? Would the coronavirus have a big effect on contributions I make now? [link] [comments]  | ||||||||||||||||||||||||||||
| How to best grow my extra $7,000 Posted: 09 May 2020 07:26 PM PDT I don't really know much about personal finance but you have to start somewhere, right? I have about 7k sitting around and I'm not sure what to do with it. I thought about opening up a high-yield savings account but I've also read that it's not the best idea. Do you think I should buy some stocks with this amount? I don't really want to lose this money is the thing, but I do know that you have to take risks in order to gain more. Any advice would be appreciated. [link] [comments]  | ||||||||||||||||||||||||||||
| Car repossessed after two weeks Posted: 09 May 2020 01:09 PM PDT Hi guys. Long time lurker, first time posting. My car issues started several years ago. Someone pulled out in front of me and totaled my car, and I wasn't given enough to pay off my loan. Due to this (and my bad credit) I was forced to go to a buy-here-pay-here to purchase a new car. The whole thing was sketch, I am a young woman who knows nothing about cars and didn't have anyone to come with me to help make good decisions. I bought a Beetle at 13k. My payments were split up into two biweekly payments of 189. At the time, I was able to afford it easily. Several months later, I used the "$5 oil change" service the dealership offers to those who purchase cars through them. They put the wrong oil in my car!!!!! It caused a major oil leak and I had to take out a small loan of $1000 to pay the $1300 repair. I contacted the dealership several times to no avail. Fast forward to March. I lost my job, and moved back to my hometown. Coronavirus hit the US, and I can't find a new job. Despite this I have somehow been able to make my biweekly payments. Up until my last payment. My car payment was 2 weeks late yesterday when a tow truck came and repossessed my car. I know I am at fault. I've been waiting for unemployment for a month now. I can't find a job in my field and somehow can't even get callbacks for "easier" jobs. The dealership is asking close to $1000 to get my car back. I have nothing. What do I do? I can ask my grandma to help me, but I can't imagine she would because my sister took advantage in the past. I can give up the car, but my loan still has ~10k on it and the car is only worth $3500 at best. I don't want to end up having to pay that.... but if it's my best option.... I don't have reliable transport to get to work (when i find a job) without a car so I am kind of freaking out so sorry for formatting issues. I am also on Mobile. TIA. [link] [comments]  | ||||||||||||||||||||||||||||
| Posted: 09 May 2020 07:21 PM PDT I am looking to move to Arlington, Virginia and as a recent college graduate I am looking to rent an apartment either alone or with roommates. I will be making 72k pre tax and the cheapest apartments in the area start around 1.3k per month either alone or with roommates. Is paying somewhere around that per month feasible? I will not have a car, will walk/metro to work, and will not have to pay for my phone bill. I will be looking to max out my 401k, and have a reasonable emergency fund. Just wanted some advice since I have no clue what I am doing/how much I can actually afford as this is my first "job". [link] [comments]  | ||||||||||||||||||||||||||||
| Best method to pay of mortgage quickly Posted: 09 May 2020 08:59 AM PDT $500k in IRA and 401k work sponsored plans $16,000 in cash $12,000 stock investments $200k 30 year mortgage @3.875 $100k salary; 58 y/o; no bills What is the best way to payoff mortgage before age 65? [link] [comments]  | ||||||||||||||||||||||||||||
| Best Method to Repay $50K worth of debt? Posted: 09 May 2020 06:44 AM PDT Between credit card and student loan debt, my wife has roughly $50K worth of debt. I'm looking for the best method to pay this off. I am active duty military and she is currently in search of a state or federal teaching job therefore I am not super concerned with us not having money in the coming months but am fully aware that is a possibility. I am currently "deployed" to Okinawa and due to liberty restrictions cannot go out in town so I'm saving a ton of cash for our emergency fund. Currently have $10k and plan to leave in July with at least $15k (likely more) which would be a comfortable emergency fund. The money I'm saving now I plan to switch to paying down debt. Ultimate goal is 2-3 years the debt is gone. Below is a table of each loan
Ideally I would like to pay the credit card debt off first then focus on the student loans. I pay the mortgage on the first of each month. I was thinking she pays $1k towards debt on the first half (01-15) of the month and I pay $1k towards the end (16-31) of the month. I get paid on the 1st and 15th but I'm not sure when she'll get paid as she is currently in search for a job. She had an interview today and if she gets that job she'll be making about $35k. I get a pay raise in June so I'll make roughly $4,500 a month and this is after taxes, TSP contribution and whatever other deductions. As far as budget I don't have one yet as we got married in January and I left in February and she was still in school several states away. Concerning bills and living expenses, we could live off of $1000-$1200. I'm basing this off of last summer when we lived together. Couple questions
Ultimately I'm just in search of advice on the best way to attack the situation. I know you would likely be able to better help me if I had greater specifics such as her pay and our budget but that is not information I can provide right now. I'm looking to get ahead of this problem and build some advice before the problem gets worse. I'm looking to pay these back as quickly and with the least amount of interest incurred as possible. [link] [comments]  | ||||||||||||||||||||||||||||
| What would i tell my mom to do? Posted: 09 May 2020 05:56 AM PDT (Throwaway) This is the story: My mom and dad have been together for a long time probably 30+ years, my dad came to the US first and eventually brought my mom with two kids (my sibling and I). Since then my mom has always been working house cleaning jobs, babysitting, taking care of old folks, all through these years and almost every single check she would get she would give to my dad in effort to pay off the cars, the house, the bills, ect. So it looks like my dad makes all the money and he pays for everything, which is not true because my mom helped throughout the 20 years living in the US. Now my dad is seeing someone else and does not want to give my mom any money back from the all years she has helped him. He says he will move back to his home country with his new gf as soon as he retires and its gotten the best of my mom. She is getting close to old age and i dont know how to advise her legally so she can at least have some funds without my dad having to do anything with it. Any advice is appreciated [link] [comments]  | ||||||||||||||||||||||||||||
| Posted: 09 May 2020 04:38 PM PDT I have an HSA. I contribute the maximum per paycheck of $80, so roughly $160/month. I see two mental health professionals, one for $250/session that I see every other month, and another for $50/session every other week. Between the two, I'm spending $175 a month. This doesn't include regular doctor visits, or my medications. Eventually, if I pay myself back from my HSA because I'm paying for those expenses out of pocket, I will run out of money and end up paying mostly out of pocket anyway. Do I have any options here? I'd like to actually have a balance in my HSA and not have to rely on my savings for preventative care. If an emergency comes up, I have significant savings, but I'd rather not use them if possible. What can I do? If I'm not providing enough information, I can answer questions. I'd like to not run out of money. If it matters, I'm 29 years old, live with my mom (and pay rent/bills), and work 36.25 hours per week (considered full time) at a grocery store. TIA. [link] [comments]  | ||||||||||||||||||||||||||||
| Posted: 09 May 2020 06:02 PM PDT Not sure if right subreddit... I have a question about the gift tax exclusion. From my understanding: 1) You can gift someone up to 15k/year without having to report it to the IRS/pay any taxes on it. 2) There is also a lifetime exclusion, meaning you can gift up to ~$11.2 MILLION throughout your lifetime without paying taxes on it. My understanding is that if you exceed the annual 15k limit you do not have to pay taxes on the excess amount gifted as long as you are UNDER the lifetime exclusion limit, you just have to report it to the IRS though. Is this correct? So theoretically, you could gift someone $1MM and not pay taxes on that gift? [link] [comments]  | ||||||||||||||||||||||||||||
| Pay off student debt, car loan, or IRA? Posted: 09 May 2020 11:49 AM PDT Hi everyone! I have a situation where I would love to hear some feedback on. I have around $22K in my checking/savings and am maxing contributions to my employer 401K. My expenses breakdown:
I have a comfortable amount in my savings and after all of my expenses I am still saving about $1,000/month. I want to put $5-7K into one of my expenses above or max out my Roth IRA for the year. However, I am not sure which of these I should allocate this amount to. I want to pay off my car loan as soon as possible especially with a 5.99% interest rate, but also am considering maxing out my Roth IRA because the ROI on that investment would be much greater in the long run compared to the car/student loan, considering how much compound interest would benefit me if I were to invest this year and not wait until next year to max it out. My job security is high, even during these times. I feel having $15K is enough to have as a security fund while also maxing out my 401K. How should I allocate these funds? Any insight would be greatly appreciated! TL;DR I am unsure how to allocate $7K towards a 1) $12K, 5.99% car loan, a 2) $27K, 4.5% student loan, to 3) allocate to my Roth IRA, or 4) spread evenly across the three. [link] [comments]  | ||||||||||||||||||||||||||||
| How do you balance allocation of savings between short-term and long-term? Posted: 09 May 2020 05:43 PM PDT Hello, I was hoping some of you might be able to help me out here. 24-year-old dude, working as an energy engineer, pre-tax salary is a little above $70k, living in a cool LCOL area. After doing all of the math, I've discovered that my estimated savings rate is around 40%, which I'm super happy with! However, I wanted to balance my allocation of savings as efficiently as I can -- I'll explain. As of today (5/9/20), my only debt is $10k of student loans. I have around $32k in savings, which is comprised of 401k, stocks, and regular savings account. Based on my pre-tax income and savings rate, and assuming I keep this up, I can save around $28k per year (based on direct savings account and 401k contribution -- of which I put in 8%, and my employer puts in 3%). So, it's evident that most of my savings goes into my direct savings account (in fact, ~29% of it does), rather than my 401k. The reason for this is, I'd love to buy a house in the next 3-4 years, but I wonder if I'm not properly allocating my savings. Any help would be greatly appreciated, and I'm happy to provide any clarification, if need be. Thank you so much! EDIT: In case it wasn't clear: direct savings is short term, 401k/stocks are long term. [link] [comments]  | ||||||||||||||||||||||||||||
| Hurt my foot at work, now I'll have to pay $8k for surgery :( Posted: 09 May 2020 07:53 PM PDT It kind of sucks to know that 1/4 of my yearly salary will go towards a small half hour surgery. Or in other words around 550 hours of hard(ish) work, and I'm not even working for a full year yet :( Thankfully I barely have any expenses so I saved enough money to cover the max out of pocket limit on my health insurance ($7900). My question is can this expense be used to save me on taxes? Is there anything else that I can do to try to save myself money? [link] [comments]  | ||||||||||||||||||||||||||||
| Medical Bill sent to Collections 90 days from DOS and didn't get a bill Posted: 09 May 2020 04:02 PM PDT I just got a letter from a collections agency. It's been pretty much 90 days since the date of service. If I'm billed 30 days later after insurance payments and then they give me 30 days to pay I would just be hitting 30 days past due. I never received any bill from them (electronic or mail) let alone a past due notice. I would have paid it immediately if I got it. What is my recourse? I obviously don't want this on my credit report. Does it immediately go on your credit report if it's sent to collections? I can't believe that they would have even sent it there even at just hitting 30 days past due. I'm in awe and of course it's the weekend and can't call until Monday so I'm worried. I have a 800+ credit score and never had anything negative on my report before. [link] [comments]  | ||||||||||||||||||||||||||||
| My graduation present is ~$5k worth of federal savings bonds. What should I do with them? Posted: 09 May 2020 07:45 PM PDT I just graduated college and my grandma surprised me by gifting me the many, MANY savings bonds she's given me over the last 22 years for every birthday and holiday. I know very little about them and have no clue what to do with them. I have a basic understanding of how their value(?) relates to interest rates, and I know that interest rates are lower than ever right now. What does all of this mean for me? What would YOU do in a situation like this? [link] [comments]  | ||||||||||||||||||||||||||||
| Whole Life Insurance as Investment Vehicle Advice Posted: 09 May 2020 07:30 PM PDT Hi Everyone, I've recently been trying to get my personal finances and have been approached by a financial advisor (no commitment at this moment just preliminary conversations). I agree with many of the recommendations he has made but am stuck on one particular item-whole life insurance. Quick background on me ~30 year old Male, good health, maxing out 401K, ~200K /year income. I've done a bit of reading on this and the general consensus seems like it is a bad idea. I conveyed this point of view on my last call with the financial advisor and he layered in some details to persuade me on life insurance. His key points were: 1.) I'm not eligible for a ROTH IRA and I'm already maxing out my 401K so this could be used as a tax advantage investment vehicle 2.) The cash value rate of return is stable (~4%) and not subject to the volatility of the market 3.) When I eventually take distributions from the cash value of the policy there are no taxes 4.) When taking distributions the state of the market high or low will have no bearing on my cash value. The argument he made was if I was looking to take a 100K distribution out of my 401K after I was 65 I would get hit with taxes, but also that 100K would be subject to where the market is at I made the argument that I was thinking of term insurance and then taking the delta of what I would have paid in monthly whole life insurance premiums and invest it in the market (something like the S&P500 for argument sake). His push back was that if the market was way down (e.g. COVID-19 type situation) I would lose a lot of money and also I would be taxed upon distribution so in the end the whole life insurance cash-value would be more valuable. If any one has any thoughts, models, or advice I would really appreciate it. If interested I can share the sample policy he created for me. Thank you for your help and support! [link] [comments]  | ||||||||||||||||||||||||||||
| Payoff current mortgage faster or save for future house down-payment? Posted: 09 May 2020 05:15 PM PDT Hey folks, My wife and I are starting to plan for a move into a larger house in the next 5-8 years and are wondering what we could to boost our nest-egg for a down-payment. We're currently thinking of starting a savings account to move a few hundred into each month OR using that extra money to pay down our current mortgage faster. Does one make more sense then the other in the time frame given? I am currently 2 years into a 30 year mortgage of our first home (4% interest rate). Thanks for looking! [link] [comments]  | ||||||||||||||||||||||||||||
| ROTH IRA Income Limits after marriage Posted: 09 May 2020 03:38 PM PDT I was married Oct. 4, 2020 - will I be penalized for any ROTH IRA contributions I made prior to that? Now that we are married our MAGI is over the limit. [link] [comments]  | ||||||||||||||||||||||||||||
| Posted: 09 May 2020 01:21 PM PDT Hey all, My work is wanting to front-load my commissions for the rest of 2020, roughly 7-10k. They are allowing me to choose to take it as a lump sum or over 3 months. What would be most beneficial to me? Thank you. [link] [comments]  | ||||||||||||||||||||||||||||
| I am having trouble with an equifax credit freeze. Posted: 09 May 2020 07:07 PM PDT I have had my credit frozen for some time, and I would like to apply for a new credit card. I have been able to temporarily lift my freezes from all the other bureaus from their online portals except for Equifax. When I try, I just get the following message:
From there it just takes me to a page that says I can place, lift, and remove my security freeze online, by phone, or by mail. The credit card is not an urgent matter, it can wait. I would like to be able to lift my security freeze online instead of having to call or mail every time I need to do this. Do any of you have any suggestions for this? [link] [comments]  | ||||||||||||||||||||||||||||
| Any luck reducing your Geico premium? Posted: 09 May 2020 04:49 PM PDT Hey everyone, I've been a Geico customer for 5+ years. They recently cut all customer's annual premiums by 15% in response to COVID-19, which is great. I've heard it could be worth trying to reduce your premium even more, but I'm thinking they won't budge since they already slashed everyone's premium by 15%. Has anyone here had any luck further reducing their bill? [link] [comments]  |
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