Investment

» allancoleman - 2007 HSA data

In response to 2007 HSA data posted by rice1:

Thanks for the tip , Eric , about checking out other custodians of HSAs before I make my roll - over in the future . I will be sure to check'em all out before I switch .

Although my annual out of pocket limit on my high deductable for a single individual is only $5,000 , because I have a family plan ( wife & I both ) , my annual out of pocket limit is ' TWICE ' the individual deductable , regardless of the number of persons covered . Which is $10k . However , my monthly preminum for this plan is only $334 a month , after my company subsidy , for the wife and I both , including dental . So , we've gone with this coverage the last couple of years because it is so cheap . Course , IF we have any medical expenses , we're on the hook for pretty much the first $10k before they begin to pick up everything . But normally our medical expenses are only a thousand or two a year for routine tests about once a year to verify my blood counts are still within limits . I usually vist a local health fair about twice a year and order a full panel of blood work and usually only pay $50 to a hundred bucks or sometimes a donation to the local organization who puts the health fair on .

The $800 ' catch up ' provision for next year ( 2007 ) is a special federal additional amount that is allowed for folks over 55 , no matter what their deductable is . It was $700 this year ( 2006 ) and will be $900 , I believe , in 2008 .

And , by the way , I ran my HSA numbers on my tax return by my income tax advisor ( myself ) and TurboTax , and they O.K.'d it . So I'm good to go until I get audited .

-- posted by allancoleman

» allancoleman - 2006 / 2007 HSA data

The maximum $6,150 HSA deposit I made in January of this year ( 2006 ) resulted in approximately a $1,538 savings in my taxes owed on my 2006 tax return . It's approximate because I need to return to Alaska in 2007 to get my 1099's awaiting me in my mailbox before I can get a more exact calculation . The $6,450 maximum deposit I will make to my TAXFREE HSA account in January of next year ( 2007 ) will bring my account total to over $14k that can be used not only for medical expenses , but also for medical expenses later under Medicare and long term care expenses later .

Intend to make maximum deposits to this HSA account until age 65 when I'll be on Medicare , at which time they are no longer allowable . Stay tuned .

These numbers were taken from the installation of my 2006 Turbotax software . And I highly recommend tax software as a planning tool for investing purposes . For example , it also looks like my $100k plus Roth conversion for this tax year ( 2006 ) is going to cost me approximate 14 cents for every dollar converted as my effective tax rate for this tax year is looking like 14% versus 15% for last year's ( 2005 ) taxes .

-- posted by allancoleman

» SteveT - 2006 / 2007 HSA data

In response to 2006 / 2007 HSA data posted by allancoleman:

.
allan, how do you get the post office to hold your mail longer than a month? Or do you have someone pick it up and hold it for you? I've got friends that use mail forwarding services that work very well.

BTW congrats on keeping that tax bite to a minimum.

-- posted by SteveT

» allancoleman - 2006 / 2007 HSA data

In response to 2006 / 2007 HSA data posted by SteveT:

Hello SteveT ,

I don't ask the post office to hold my mail for longer than a month any more , although I have in the past at other post office boxes I've had in other towns in Alaska . Mail forwarding is a big deal for snow birds . The way I've solved it now is to obtain the largest Post office box possible at that particular post office . That size box at my permanent mailing address in Anchorage , Alaska is over $600 a year . The largest size post office box I was able to obtain here in Kailua - Kona is $300 a year .

My present mail forwarding routine is to have the local UPS Store to check my post office box in Anchorage , Alaska ONCE a week and forward ALL mail to me here at my Kailua - Kona post office box while I'm absent from Alaska . In the summer when I'm in Alaska and might be absent from that condo there for longer than a week , that post office mail box there is big enoough to hold a month's worth of mail . My Kailua - Kona post office box is big enough to hold all my mail when I'm ansent from Hawaii from May til October . I will call that UPS Store approximately December 27th and request that they STOP forwarding my mail after that date and when I show up in Alaska January 12th , I'll only have a couple of weeks worth of mail waiting for me .

Snow birds can also obtain a permanent mailing address from some mailing service and call them when you want mail forwarded too . I just like dealing with the US postal service for my permanent mailing address for safety reasons . Don't care to have my mail sit out in a mailbox on the street , yard , or condo lobby .

The UPS Store in Anchorage , Alaska charges me $5 to pick up my mail . They have other accounts at my local downtown Anchorage , Alaska post office so are able to keep those expenses down because they have numerous accounts to check and pick up too at that post office . That , and the large box of 100% Kona coffee I send the staff there every trip I come over here to Hawaii . I then pay the first class mailing charges to my address here in Hawaii . I ONLY forward mail from Alaska to Hawaii . I never forward mail from Hawaii to Alaska because my permanent mailing address is in Alaska .

It's easy to keep the tax bite lower with TurboTax . . And fun . I like plugging in different numbers on different line items on my tax return and seeing the end taxes due without alot of math . Makes tax planning for future years easy .

-- posted by allancoleman

» Happy_2 - Mail delivery to two homes

In response to 2006 / 2007 HSA data posted by allancoleman:

Sounds pretty damm complicated to me. One more reason I prefer to have just
one home, and travel where ever and when ever I like.
In my little village, the postmaster holds my mail for whatever length I need.
No problem.

-- posted by Happy_2

» allancoleman - Mail delivery to two homes

In response to Mail delivery to two homes posted by Happy_2:

Actually , Happy_2 , it's easier than I make it sound in my post . I just go down to my local UPS Store a day before I leave Alaska and tell them to start forwarding my mail to Hawaii and call them from here in Hawaii before I get ready to leave to return to Alaska . That allows me to surf every morning as I did this morning in Hawaii while my fellow Alaskans , and some fellow Americans in the good ole lower 48 deal with cold weather and snow . You takes your choice .

-- posted by allancoleman

» allancoleman - Mail delivery to two homes

In response to Mail delivery to two homes posted by allancoleman:

Also , Happy_2 , allows me to reside in a TAXFREE state like Alaska with my large Roth conversions , deferred account distributions income taxes , and later RMDs and yet spend almost six months a year surfing over here in the winter in Hawaii . Figure my savings I save on a typical California tax return more than pays for the couple hundred dollars a year I spend on mail forwarding .

-- posted by allancoleman

» Happy_2 - taxes

In response to Mail delivery to two homes posted by allancoleman:

If you were properly invested in depreciable commercial real estate, you would be paying very little Federal as well as state income taxes.

-- posted by Happy_2

» allancoleman - taxes

In response to taxes posted by Happy_2:

Sold all my depreciable real estate . Easier dealing with Taxfree Roths . Pay NO taxes , Federal or state .

-- posted by allancoleman

» Happy_2 - taxes

In response to taxes posted by allancoleman:

Paying taxes on all your IRA's is a pretty steep price to pay to not pay taxes. Sounds like a "least of evils" kind of move. With depreciable real estate you never have to pay taxes.
1031 exchanges, step up in basis when you die.

Does this mean when all your IRA's are converted to Roths, and all your income is tax free, you will be moving to Hawaii on a permanent basis?

-- posted by Happy_2