One of the joys of being a parent is teaching my six children about their needy Uncle Sam. This year, I helped four of them file taxes, two of them for the first time. We used a variety of methods to file their taxes and had some good discussions along the way. Número Uno Our… Continue reading Child Tax Returns – 2021
It’s tax season at the OchoSinCoche household. As I started digging into my tax return for 2021, I quickly came to the realization that I had made a significant mistake with my backdoor Roth IRA contribution in 2021. Instead of making a non-taxable conversion, I had unexpected triggered a Roth conversion that was 96% taxable.… Continue reading Botching the Backdoor Roth IRA
In 2013, I found out that I’d contributed too much to my Roth IRA during 2012. Our income had exceeded the income phase-out for Roth IRA contributions. It wasn’t until I was doing my taxes that I found out that I’d contributed too much during 2012. Time to panic? Was the big bad IRS going… Continue reading Contributing Too Much To A Roth IRA
The other day at work, I was discussing the advantages of converting traditional IRA money into a Roth IRA with a coworker. I’ve always been of the opinion that if my marginal rate is the same today as in the future when I withdraw the money, then it makes no difference to convert today instead… Continue reading Should I Convert to a Roth IRA?
A couple years ago, I opened an account at Wealthfront, one of the popular robo-advisors. Their core tenets of low-cost investing in broadly diversified index funds aligned with my own investment philosophy, and I was curious to see how their tax-loss harvesting system behaved. At the time, they offered to manage the first $10k invested… Continue reading Robo-Advisors Disillusionment
You’re following the advice to max out your pre-tax contributions to 401(k) and Traditional IRA accounts. You notice the balances creeping up and you start to wonder, is there a point when you’ve saved too much in those tax advantaged accounts? Or, as Jeremy over at GoCurryCracker poses the question: “Is Your 401k Too Big?”… Continue reading Is my 401(k) balance too high?
I first heard the phrase “Roth IRA” as a graduate student. Jim, a fellow graduate student, and I were talking about saving and investing and he told me about his Roth IRA account. I was 25 years-old at the time, and I remember feeling that I had missed out on some vital financial lesson. Shortly… Continue reading Matching your child’s Roth IRA Contributions