Alright I will need to look into this to be sure what my situation is. That notwithstanding, the contractual payment I have going on is more my concern. So far, Ive gathered I am going to have to pay an overall percentage on that income as there aren't any witholdings at all.

e: I just want to know what kind of percentages to expect/ to try and use to project what I will owe/ etc. Ive got an informative answer, but I would love as much informative input as possible.

Thanks for the response!! I've completely locked my credit cards and am not using them at all right now. Right now I'm mostly just getting reamed by interest and purchase interest charges 🥲

The Happy Money loan is at 5.99% and has a set payment plan of around $500/month, with the goal of being debt free in 2 years.

So what you think is I should keep the Happy Money loan, use the other loan for my other credit stuff, and abandon ship on the Accredited Debt Relief program?

This is good advice. You don't want your assets stuck in a court battle when your not around.

I maxed my traditional 401k last year and I've been contributing post tax dollars for the last few months. Now I need to do the in service withdrawal but I'm not sure what options to choose. The 401k is with merrill if that makes any difference.

To get started, I went into my account looking for an in service withdrawal option, but I'm not seeing that. What I do see is a 'start a withdrawal/rollover' option, and a 'in plan roth conversion' option, which, each option has a component in the name of what I'm looking for so now idk what to do.

The in plan roth conversion sounds like it's going to move those post tax dollars into the roth 401k with merrill. I also tried clicking through the withdrawal/rollover section and this apparently allows me to send money to an IRA (though, 'roth' was not explicitly mentioned).

So I guess the question is which one of these is the one I should be doing? Is there any difference between these options from a tax perspective? They seem identical to my untrained eye, aside from the obvious of where the money will be stored following this action and how many investment options I'll have.

There’s only one way to find out. Apply.

As others have noted, as long as you do the backdoor Roth conversion step in 2023, the only IRA balance that matters is the one on 12/31/2023. Fun fact, if you want to, you can actually still do a backdoor Roth for tax year 2022. Then you have the rest of 2023 to decide to if you want to do it again for tax year 2023. I have just worked through this process for a similar circumstance for myself.

No. Just dca into the market.

Do not time the market. There's no reason to put that kind of pressure on yourself.

You got bad advice then, if you're paid via W2 (aka, you receive a paystub which shows money withheld for federal/state taxes/social security/etc.) then your employer was wrong. You being hired hour to hour has nothing to do with it, all that matters is what you filled out initially and the way in which you're paid.

The primary difference is taxation. Anything that is designated as a "Roth" is funded with money that has already been subjected to taxation by the government. All other retirement accounts are funded with money that has not been taxed by the government, YET.

The government will get their taxes from those pre-tax accounts when you withdrawal the funds in retirement.

Throwing my hat into the ring for YNAB too. You can enter manually, import automatically or upload a csv/qif file from your bank as and when you please. I have eight credit cards, a car loan, a personal loan and a checking account - and manage them all with automatic import, but for those who don't trust Plaid or MX, or other services that read your financial data directly, you can very easily go "offline" with it and enter or upload manually.

I love YNAB and would hate to go back to my Excel sheets, perfectly crafted though they are. It even survived the cull of last year's price rise for me.

Oh, and none of the apps are as accessible (with a decent, unclunky app) on mobile. I even tried an Aspire Google Sheet for a while, but its mobile app didn't feel finished, nor did it allow me to manage my accounts in the way the YNAB mobile app does.

you will have to contact her HR department to be sure. Or, you will have to contact yours.

Despite what others say about "Open Enrollment period" there is some capability to fix foul-ups like this. Whether she can get out of paying for her plan and remain employed is up to HR.

I said in another comment, but I might be confusing my own initial information. I was told to keep track of everything for the fact it WAS deductible. So maybe w-2 is incorrect. i think 1099 is more what Im doing. Temp employee hired hour for hour

You need to get your budget in line and live WAY beneath your means before you play these interest rate games. If you are still racking up credit card debt, then no amount of consolidation will ever help you; you'll just get yourself into a worse situation. You need to stop using credit cards until your finances are in order.

Using the Avalanche method (highest interest rates first) or the Snowball method (lowest balances first), just pay off the debts over time. What is the interest rate on the Happy Money loan? 8.99% interest on a personal loan is far better than typical credit card rates, but if the Happy Money loan is cheaper than just use two loans and pay them off AGGRESIVELY.

I might be confusing my own initial information. I was told to keep track of everything for the fact it WAS deductible. So maybe w-2 is incorrect. i think 1099 is more what Im doing. Temp employee hired hour for hour

My entire contract for Nov-May is like <12,000 and then my other job is probably in the same neighborhood, but I get weekly paystubs showing my deductions

Thank you reading it right now very insightful

It’s not wrong, but can you afford to pay for their mortgage and rent for yourself somewhere else?

I meant to say consumer complaints, i fixed it and put the link in.

Argh, forgot to add this to my last reply

Recipients of funds from a trust:

https://www.investopedia.com/ask/answers/101915/do-beneficiaries-trust-pay-taxes.asp

You’d pay the income tax on gains of assets in the trust but not money that is principal.

You mean pay the full bill plus underpayment penalties?

Topic No. 306 Penalty for Underpayment of Estimated Tax

The current interest rate for underpayments is 6% (the underpayment penalty is based on the federal short-term rate plus 3 percentage points and it's updated quarterly).

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