Recent comments in /f/personalfinance

SpiritualCatch6757 t1_j2fv2gn wrote

Reply to Looking for Thoughts from Strangers by Berty-K

If it were us, Traditional IRA would be slowly converted to Roth IRA. MFJ means you should have plenty of space to convert at 12% tax bracket to a Roth IRA.

I would also prioritize maxing Roth IRA before maxing out a 401k. The reason is because you can take out contributions penalty free which you could use for your home down payment in the future.

I would have zero in savings since that amount is taxed. I would rather fill up all tax advantaged accounts before I invest in taxable.

I would cash flow vacations. There's no reason to save for it when you have upwards of $2k saved every month. Few vacations need to be paid all at once. Airfare is paid in advanced and hotels and meals are paid as you go on the vacation. We pay for vacations over the 3+ months the charges appear on our cards.

You can take out 401k loans and take out from Roth IRA for a down payment on a home. I would only stop retirement savings when plans are more defined. Until then, it is too nebulous a goal and you're losing out on valuable tax advantaged space.

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karenmcgrane t1_j2fukiq wrote

Reply to What to do with my assets when I die? by yoyokittychicky

In addition to needing an estate attorney, a will, and an executor, I suggest doing some research to make sure whatever charity you donate to will make the best use of your money.

Do you have a specific reason for wanting to support the Humane Society, or do you want to support animal welfare? Lots of charities exist that will support the second goal, and your money might go farther with a local organization or with a different animal welfare charity.

Charity Navigator provides data about how non-profits operate and a rating for each one, here's a list of animal welfare organizations:

https://www.charitynavigator.org/search/?causes=Animal%20welfare

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Grevious47 t1_j2fujkv wrote

Reply to comment by cwazycupcakes13 in Did I miss the window for a 2023 backdoor Roth contribution (without triggering the pro-rata rule)? by echo-engee

Wait. So I also have money in a rollover tIRA that I was going to rollover into a 401k before doing a backdoor Roth to avoid pro-rata. I thought I has until April 2023 to do both steps. Was that wrong and I only have until 12/31/2022 to pull money out of the rollover IRA to avoid pro-rata if I do a backdoor Roth for 2022 say march of 2023? If so I guess Im not doing a backdoor Roth in 2022 then damn.

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AllTheyEatIsLettuce t1_j2fuhdh wrote

Reply to comment by PAXICHEN in Doctor took money for copay when insurance says there is none, and is refusing to give it back almost a year later. help? by GamerGrl90

HUM isn't going to take the money off the vendor's biller because it can't take the money off the vendor's biller. The money isn't HUM's money.

The biller won't respond to the customer's requests for the money.

That leaves ... what or whom as a means of recovering the money?

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MarcableFluke t1_j2fug6g wrote

Reply to comment by cheejiburga in I want to start saving and investing, but I have no idea what I'm doing and reading all this information is giving me whip-lash by cheejiburga

401ks and IRAs are special tax advantaged accounts that are intended for people to use for retirement. That's what the tax advantages are for.

A taxable brokerage is just an account that you use to invest money like you do with 401ks and IRAs, but there are no tax advantages.

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altmud t1_j2fu2a0 wrote

Reply to Will using money from a trust for a down payment on a house trigger gift tax? by yjlevg

Assuming you are a beneficiary of the trust, and the trust is now irrevocable (not a living, revocable trust), any distributions from the trust to you are never a "gift", they are a distribution.

Part or all of the distribution may be taxable income to you. The trustee(s) of the trust can decide whether they are distributing principal or income to you, and in what percentage. This will be reflected in the Form K-1 that the trust will have to issue to you. Any of the trust's income (dividends, interest, capital gains) that are distributed to you as part of the distribution can either be taxable to you, or the trust can retain the tax liability and pay the taxes itself -- this is at the discretion of the trustee(s) (unless the trust document says otherwise).

On the other hand, if it is simply a revocable, living trust, then the fact that it is a trust is basically irrelevant. In that case, it is a gift from your mom to you, and the receiver of a gift never owes taxes. Your mom probably wouldn't owe taxes either, just will need to fill out extra forms at tax time to add it to the "lifetime exclusion".

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