2016 and 2017 HSA Contribution Limits

The contribution limits for various tax advantaged accounts for the following year are usually announced in the fall, except for HSA, which come out in the spring. The IRS announced contribution limits for Health Savings Account (HSA) for 2017. Due to mild inflation and rounding rules, the 2017 HSA contribution limit for family coverage will stay unchanged. The 2017 HSA contribution limit for individual coverage will go up by $50. HSA Contribution [...]

Mutual Fund Or ETF Dividend Frequency and Compounding

Over on the Bogleheads forum, for a short while, a number of posters were wondering why they didn't see a dividend posted from certain Fidelity funds. Fidelity Spartan Total Market Index Fund, for example, typically pays dividend twice a year in [...]

Mega Backdoor Roth in TurboTax

A mega backdoor Roth means making non-Roth after-tax contributions to a 401k-type plan and then taking the money out (with earnings) to a Roth IRA. It's a great way to put additional money into your Roth IRA without having to pay much additional tax. [...]

Early Retirement and Opportunity Cost

Opportunity cost is a fundamental concept in economics. It's the value of the best alternative forgone. When you choose to do X, you forego the value of doing Y. Opportunity cost is everywhere in our financial decisions. The opportunity cost for [...]

Warranty On Car Repairs Out of Town

Back in the winter, on a skiing road trip, our car ran into a problem. The power steering pump was making a loud noise. The power steering fluid tank was overflowing. We were in a very small town, without much of a choice in repair shops. We found a [...]

Leave Some Money On The Table

I said this a few times in my replies to comments on different posts. I'd like to put it in a separate topic for everyone. What I observed is a tendency among some people to over-optimize, in other words trying to wring out every last drop. It's not [...]

Price and Effectiveness: Nasonex vs Nasacort Or Flonase

My wife gets seasonal allergy in the spring. Her doctor prescribed a nasal spray Mometasone (brand name Nasonex) last year. She asked for a refill. The doctor's office sent the refill prescription electronically to the pharmacy. How much will it [...]

Backdoor Roth: Planned vs Unplanned

How to do the backdoor Roth and how to report it on the tax return are popular topics on this blog. Many people are doing the backdoor Roth pre-planned. They know their income is too high for  contributing directly to their Roth IRA. So they do [...]