Financial Independence Daily FI discussion thread - December 30, 2020

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• Daily FI discussion thread - December 30, 2020
• Tax Planning Spreadsheet - 2020 Update
• Weekly Self-Promotion Thread - December 30, 2020
• Estimated (quarterly) tax payments in early retirement

Daily FI discussion thread - December 30, 2020 Posted: 30 Dec 2020 12:07 AM PST 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. submitted by /u/AutoModerator [link] [comments]

Tax Planning Spreadsheet - 2020 Update Posted: 30 Dec 2020 07:55 AM PST After a five year posting hiatus, I'm back with the 2020 update. Previous thread for context: https://www.reddit.com/r/financialindependence/comments/3xtxz2/tax_planning_spreadsheet/ Limitations: It is build with my personal situation in mind (single filer, state of Ohio, doesn't take into account deductions/income that I do not have) but it can be easily tweaked to match your individual situation There may be errors or bugs in how things are calculated even though I tested it for several years of data I've neglected the student loan interest calculation (so it not working properly) since I'm long past having used it I need to work out a better calculation for when backdoor rothing is suggested Link to spreadsheet submitted by /u/clvfan [link] [comments]

Weekly Self-Promotion Thread - December 30, 2020 Posted: 30 Dec 2020 12:07 AM PST Self-promotion (ie posting about projects/businesses that you operate and can profit from) is typically a practice that is discouraged in /r/financialindependence, and these posts are removed through moderation. This is a thread where those rules do not apply. However, please do not post referral links in this thread. Use this thread to talk about your blog, talk about your business, ask for feedback, etc. If the self-promotion starts to leak outside of this thread, we will once again return to a time where 100% of self-promotion posts are banned. Please use this space wisely. Link-only posts will be removed. Put some effort into it. submitted by /u/AutoModerator [link] [comments]

Estimated (quarterly) tax payments in early retirement Posted: 30 Dec 2020 12:56 PM PST How are people here handling withdrawals and estimated tax payments in early retirement? It seems like a huge hassle and I've seen a few possible ways to deal with it including: Doing nothing and paying the IRS penalty each year Having taxes withheld on (only) your last IRA withdrawal of the year, which supposedly satisfies the requirements and absolves you of the need for estimated payments. But I'm not really sure of the specifics. I plan on using the standard deduction each year to cover my Roth conversion ladder, and my estimated annual expenses on top of that should be between 25K and 30K, coming solely from my taxable account, at least for the first 5 years. So I'm not sure what my actual tax burden will be each year. I will need my Modified Adjusted Gross Income (MAGI) to be around $13K (or more) to be eligible for an ACA healthcare plan. submitted by /u/wkrick [link] [comments]

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