Financial Independence Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice. - October 05, 2020 |
- Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice. - October 05, 2020
- Daily FI discussion thread - October 05, 2020
- For those who are making mega backdoor Roth contributions to help accelerate FIRE, do you know if the rollover from the 401k to the Roth IRA should be coded on Form 5498 as a rollover (Box 2) or a conversion (Box 3)?
- Weekly FI Monday Milestone thread - October 05, 2020
- "You can afford a more expensive house."
| Posted: 04 Oct 2020 11:09 PM PDT Need help applying broader FIRE principles to your own situation? We're here for you! Post your detailed personal "case study" and ask as many questions as you like, or help others who've done the same. Not sure if your questions pertain? Post them anyway…you might be surprised. It'll be helpful to use our suggested format. Simply copy/paste/fill in/etc. But since everybody's situation is different, feel free to tailor your layout to your needs. -Introduce yourself -Age / Industry / Location -General goals -Target FIRE Age / Amount / Withdrawal Rate / Location -Educational background and plans -Career situation and plans -Current and future income breakdown, including one-time events -Budget breakdown -Asset breakdown, including home, cars, etc. -Debt breakdown -Health concerns -Family: current situation / future plans / special needs / elderly parents -Other info -Questions? [link] [comments]  |
| Daily FI discussion thread - October 05, 2020 Posted: 05 Oct 2020 01:09 AM PDT Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  |
| Posted: 05 Oct 2020 11:14 AM PDT I'm doing my taxes for 2019 (extended deadline) and realized that one of my mega backdoor rollovers for the year was coded as a conversion rather than a rollover on my Vanguard account activity, which means that it's showing up in Box 3 instead of Box 2. I was on the phone with Vanguard for awhile and they were claiming that it should be a conversion because it's from a pre-tax account (even though part of the money may be after-tax) to a Roth account and that it's then up to me to show how much is non-taxable on my return. I think that that's incorrect based on the IRS's Form 1040 instructions, that give the precedent that taxable conversions from a traditional IRA to a Roth IRA are included on Line 4b (for IRAs), while traditional 401k to Roth 401k OR Roth IRA conversions (or rollovers in the 401k to IRA place) are included on Line 4d (the precedent being that it's about the account it's come from, not to, but traditional IRA to Roth 401k rollovers aren't allowed). If the after-tax 401k to Roth IRA amount is to be considered a conversion, then the only way I know of showing that most of it is non-taxable is by filling out Form 8606, but that's really for non-deductible IRA contributions (the regular backdoor Roth). There's nowhere in it for non-taxable traditional 401k to Roth IRA transfers. Any help would be greatly appreciated, thank you. Edit: This is the only info I've been able to find on this. It suggests that a direct after-tax 401k to Roth IRA transfer should be considered a rollover from a qualified plan (meaning it should be in Box 2 of Form 5498) and that there should be no Form 8606 involved. I can't say if this is right though and I'm afraid that Vanguard will disagree with me when they call me back. [link] [comments]  |
| Weekly FI Monday Milestone thread - October 05, 2020 Posted: 05 Oct 2020 01:09 AM PDT Please use this thread to post your milestones, humblebrags and status updates which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  |
| "You can afford a more expensive house." Posted: 05 Oct 2020 03:32 PM PDT This happened last week. I'm not sure if this is the right sub or not, but it's a good story of an anti-FI person. A bit of backstory. I've been with my partner for almost 3 years now, and I moved into his place over the summer. We realized very quickly that his current home doesn't have enough space with both of us working from home, and his kids doing virtual school when they're here. My office is literally in the kitchen. I have to manage all of the noise that happens during the day and overlapping with meetings. The plan was always to suck it up, save a massive amount of money and buy a much larger house in a couple of years. We made a list of needs and wants in a house, and we also wanted to stay in the same school district. It always came out to $550-600k if you don't want to live in a flight zone. However, a large corner unit in our development became available. We took a look, and it would work great! Had a formal study with doors and the master has a sitting room. We wouldn't get the forth bedroom or bonus we wanted, but it was only $375k and still a big upgrade space wise. Our offer was accepted and we're working on closing. My partner mentioned the move to his ex when we dropped off the kids. How we weren't getting the forth bed or the bonus but it works, and we will still be able to save a ton of money. She looks my bf in the eyes and says, "You can afford a more expensive house. Seriously you can." Yes, we can. With our combined incomes we could get a $800k house. We choose not to, because we want to save for the future and pay of this home quickly if we want. We don't want to be in debt while approaching retirement age. With the current house if we were super aggressive, we could probably pay it off in five years and be mortgage free. [link] [comments]  |
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