tag:blogger.com,1999:blog-2980246226076317453.post5287878238880202500..comments2024-03-27T09:17:51.095-07:00Comments on Done by Forty: Backloaded Traditional IRA?Done By Fortyhttp://www.blogger.com/profile/06246597867355460723noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-2980246226076317453.post-71571739321215584372017-03-01T22:38:43.812-07:002017-03-01T22:38:43.812-07:00Ding ding ding!Ding ding ding!Anonymoushttps://www.blogger.com/profile/17344483376849442717noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-39127752643334623322017-03-01T21:14:50.432-07:002017-03-01T21:14:50.432-07:00Also, kudos on the auto withdrawal for the IRA. Au...Also, kudos on the auto withdrawal for the IRA. Automation is like, at least 50% of all personal finance. Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-87918958880493771012017-03-01T21:13:57.898-07:002017-03-01T21:13:57.898-07:00Ha! As long as you made it to the end, I'm a h...Ha! As long as you made it to the end, I'm a happy camper.<br /><br />I really like your idea of trying to estimate and maybe shaving a bit off of the estimate, to get close but not TOO close. That's a neat way of taking the best of both approaches.<br /><br />The really hard part for us is that the rentals' income and expenses can change on a dime. Busted pipe or unannounced tenant move out drastically changes our MAGI for the year, and we don't know if or when it would happen. But like you said, if we could estimate, it might work out.Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-88898359171833449452017-03-01T21:11:11.036-07:002017-03-01T21:11:11.036-07:00Could you take a few years of numbers to get a min...Could you take a few years of numbers to get a minimum estimate for the Traditional? ($1,400 could be 100/ month with some wiggle room.) To stop being a slacker I set up $50 automatic withdrawal from savings to Roth, monthly. It won't fully fund it, but it's a start, the money with go in all year, so I get a smidge of dollar cost averaging. I am targeting funding my 2017 Roth by mid year, with the auto withdrawal finishing it up by year end. <br />I did not drink espresso, as it's close to bed time, and I made it to the end!Anonymoushttps://www.blogger.com/profile/13234416102537600529noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-15294854283203189882017-03-01T08:15:37.260-07:002017-03-01T08:15:37.260-07:00So long as I inspire people to drink more coffee, ...So long as I inspire people to drink more coffee, then I've done my job.<br /><br />And yes, you're right: it's a good problem to have. I need constant reminding of my first world status.<br /><br />My guess is that you picked the option to invest all at once later next year, which is what I'm leaning towards, too. I think a judicious use of the cash in our emergency fund, then replenishing throughout the year every month, will more or less simulate dollar cost averaging (at least from a cashflow perspective).Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-12211352489901603072017-03-01T08:13:30.918-07:002017-03-01T08:13:30.918-07:00That makes sense. Does moving from a taxable accou...That makes sense. Does moving from a taxable account into your Traditional IRA cause any tax issues (like capital gains)?Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-46596169915859477632017-02-28T20:30:14.355-07:002017-02-28T20:30:14.355-07:00Had to buy an expresso machine just for this post ...Had to buy an expresso machine just for this post ;)<br /><br />Hm...play it safe and lose out on tax savings, or take a guess and risk going over your IRA limit. Good problem to have :)<br /><br />I voted my answer (given my ESTJ risk adverse nature, you can probably guess which one I picked). Let's see what the crowd says.Anonymoushttps://www.blogger.com/profile/17344483376849442717noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-45078900573660581852017-02-28T13:33:25.296-07:002017-02-28T13:33:25.296-07:00I usually just call my broker and ask him to move ...I usually just call my broker and ask him to move xyz amount from one account to another.EcoCatLadyhttps://www.blogger.com/profile/15704811319510740473noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-89174531466899695882017-02-28T08:14:01.542-07:002017-02-28T08:14:01.542-07:00Right! The tax free growth and the tax avoidance a...Right! The tax free growth and the tax avoidance are the benefits of this strategy. <br /><br />In our example, it really is getting $350 less in taxes (which we'd turn around and invest). Not much for just one year, but if we keep doing it, the benefits could add up.Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-69818133121762353182017-02-28T08:11:58.093-07:002017-02-28T08:11:58.093-07:00I think that once we get on that schedule, it will...I think that once we get on that schedule, it will feel pretty normal. <br /><br />Do you just have enough funds when you do your taxes to make the $5,500 contribution at once? That's the part that would be tricky for us, but we could likely do something like use our emergency fund, then replenish it throughout the year.<br /><br />I'm just not keen on saving up a bunch in cash (increases opportunity costs) so I'd love some way to invest the funds throughout the year.Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-43815637401146892252017-02-28T07:42:29.594-07:002017-02-28T07:42:29.594-07:00I thought I remembered the Mad Fientist sort of sp...I thought I remembered the Mad Fientist sort of split between a taxable account and a traditional IRA. If you're going to follow the Roth IRA Conversion Ladder, does it matter that much in the end? I guess it matters $350 plus tax-free growth, to answer my own question! :) Lauriehttp://www.thethreeyearexperiment.comnoreply@blogger.comtag:blogger.com,1999:blog-2980246226076317453.post-67588959569935365762017-02-27T20:15:02.470-07:002017-02-27T20:15:02.470-07:00Well, being self employed, I never have a clue wha...Well, being self employed, I never have a clue what my income is gonna look like, so I always wait until I do my taxes to make my contributions. I sorta thought everyone did it that way!EcoCatLadyhttps://www.blogger.com/profile/15704811319510740473noreply@blogger.com