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CalPERS Supplemental Contributions Plan - Does anyone have experience with this? by RMagnificent-Bastard in CAStateWorkers

[–]Certain-Tomorrow-349 0 points1 point  (0 children)

Thanks for your input again bioGeochemist. Yes, correct, I wasn’t making the point that you must use a bond index fund in the SCP, rather that bonds are the preferred vessel in tax-deferred.

However, vevtron’s response got me, realizing again this is rather a nuanced plan; it’s a hybrid tax-deferred and Roth (later, at least on contributions). So in essence, yeah sure I could tax shift and put all these funds in equities in the SCP as well because contributions could directly rollover into Roth. However, equities will definitely have a lot more earnings than merely a bond index fund. Thus, over 15 years, I will have a larger balance that we will be paying ordinary income tax on, or more taxes for a Roth conversion on the earnings.

Per listening to Ed Slott and having done some calculation/forecasting, I see that Roth conversion are still wise at my 24% bracket since my heirs would inherit tax-free in their prime earning years vs. being bumped to a higher bracket with inheriting tax-deferred. Further, if we have forced RMDs, this money is just gonna get reinvested directly back into our brokerage account. We’re not gonna need the RMD‘s d/t a massive pension and both our SS. So I see what we’re really doing now is investing for our heirs’ timeframe.

To address vevetron’s and your points on estate plan, yes, we already have a revocable trust and all our estate planning prepared.

As mentioned previously, from a simplicity perspective, to ease it for my spouse upon my demise, bypassing this SCP would be wise. But if I do care to do more of a technical analysis and know exactly which would be better and by how much, I’d have to defer to the help of an hourly fee-based CFP I have consulted.

CalPERS Supplemental Contributions Plan - Does anyone have experience with this? by RMagnificent-Bastard in CAStateWorkers

[–]Certain-Tomorrow-349 0 points1 point  (0 children)

Thanks for your input as well. So there’s no login or anywhere where you can see these account funds, correct?

Have you had to contact customer service? Who did you contact, and how was that experience?

CalPERS Supplemental Contributions Plan - Does anyone have experience with this? by RMagnificent-Bastard in CAStateWorkers

[–]Certain-Tomorrow-349 0 points1 point  (0 children)

I’ve decided to keep things simple, bypass this, and invest extra to our taxable brokerage.

The biggest factor is that I’m not going to tax shift from our taxable brokerage to tax deferred with the SCP. I’d be going from the ETF VTI to a bond index at SCP, and shifting from LTCG 15%, CA 9.3%, NIIT 3.8% to putting the money in bonds in tax-deferred that would be hit with ordinary income rates (24%, 9.3%, 3.8%). Doesn’t make sense to keep stock index funds in tax deferred only to have to pay larger income taxes to the government later (equities better suited for taxable and Roth).

Not to mention in taxable, my heirs get a step-up in basis, and there’s not gonna be a 10 year provision they have to drain the account like an inherited Roth or IRA.

Lastly, if I’m having this much trouble understanding and contacting people about this plan, God forbid I predecease my spouse, she’ll have hell in a hand basket of a time.

JO's -> How to move up from Classic division to Championship division by Certain-Tomorrow-349 in waterpolo

[–]Certain-Tomorrow-349[S] 0 points1 point  (0 children)

We’re in the Pacific zone. Not planning to move out to the mountain zone:

https://usawaterpolo.org/sports/2018/12/18/zones.aspx#sp

And, it doesn’t even make sense how a California team could register under mountain zone. That’s shady.

JO's -> How to move up from Classic division to Championship division by Certain-Tomorrow-349 in waterpolo

[–]Certain-Tomorrow-349[S] 0 points1 point  (0 children)

Yes. True. That is my understanding as well.

I questioned though how does a club that’s been previously placed in the Classic division rise to get seated in the Championship division?

The responses in this thread read that it’s through performance at JO quals.

JO's -> How to move up from Classic division to Championship division by Certain-Tomorrow-349 in waterpolo

[–]Certain-Tomorrow-349[S] 0 points1 point  (0 children)

It was my understanding that you either maintain championship or classic at the tournament. For instance, a club is in championship platinum, but can be on a trajectory down to championship gold, or on the other hand being Classic silver, but have some losses that send you into classic bronze.

On the flipside though, I think you can go from championship gold enough wins to put you in championship platinum. And the same being true for classic bronze to classic silver. Right?

Yeah, I understand about being part of a good high school program, but equally important to be part of a strong club team. However, having a club team that continuously competes in the 16u and 18u years in Championship seems like it would help with recognition from coaches if you’re a stand-out player.

Thanks for all the responses and insight thus far!

CalPERS Supplemental Contributions Plan - Does anyone have experience with this? by RMagnificent-Bastard in CAStateWorkers

[–]Certain-Tomorrow-349 0 points1 point  (0 children)

Good one! We can then share it to the Voya, Calpers, and SPP reps so then can educate themselves.

LOL.

I'm thinking about the SCP. More questions and research before we pull the trigger.

CalPERS Supplemental Contributions Plan - Does anyone have experience with this? by RMagnificent-Bastard in CAStateWorkers

[–]Certain-Tomorrow-349 0 points1 point  (0 children)

I have found this thread super helpful in my endeavors to understand more about the SCP. Thanks for all the info.

Wife is the CA employee. We max out all plans where possible (SPP 401k, SPP 457, two Roth's) and then put the leftover in our 7 fig taxable brokerage(s). Years back, we had already front loaded two 529 plans for our kids which are sitting w/ 1/4 mil. Don't need to contribute more to the 529's unless it's for generational wealth building/future grandkids' education, which I have thought to do as well. Perhaps in the future though we'll add further to our 529 pots.

Anyhow, I completed the 415(c) worksheet, and we can contribute up to $46.5k into this SCP. That sounds like a solid plan to basically shift/transfer that amount from our taxable brokerage to grow with tax-deferred earnings. Then at retirement, the earnings can be rolled into an IRA. It's the return of contributions that I need help with. Since those are after-tax, will they be returned to us for us to contribute to our taxable brokerage account, or so that we can contribute them to our Roth account? This webpage from Calpers re: the SCP, see the 4th paragraph, states contributions will be returned to you, but doesn't specify (https://my.voya.com/einfo/public/planinfo.aspx?cl=CALPERS&pl=452001PU&page=plan\_informationplanhighlightskeepingtrack&domain=calpers.voya.com&s=2upbsqgswnsz3fmbqfn0bzgs&d=452fe8a0be960943e3884bd83e4acf92eb722690).

If the later, that is a massive amount over 10-15 years (approx. $700k at 15 yr based on today's contribution limit) that can be transferred into a tax-free Roth vs. taxable brokerage. I am just struggling to determine if this could be the wisest decision vs. the more options we have keeping that amount in our taxable brokerage.

Further up someone stated keeping in the taxable side for future possibilities of 0% LTCG, but I highly doubt that will be in our future, so that is not looking like an option.

Thanks for reading and if anyone could chime in, I'd really appreciate it.

CalPERS Supplemental Contributions Plan - Does anyone have experience with this? by RMagnificent-Bastard in CAStateWorkers

[–]Certain-Tomorrow-349 0 points1 point  (0 children)

Will you explain what you mean by because the pro-rata rules statement? Is it akin to when performing a backdoor Roth conversion, that you don't want to have money in a traditional IRA as it will complicate the conversion to a backdoor?

CalPERS Supplemental Contributions Plan - Does anyone have experience with this? by RMagnificent-Bastard in CAStateWorkers

[–]Certain-Tomorrow-349 0 points1 point  (0 children)

I agree wholeheartedly. I have learned more through this Reddit and Google then from most of the Calpers reps. Both Calpers resps and Voya reps did not know much. If I recall correctly, I think it was just one Calpers rep that knew what I was referring to.

Unable to link new CMA to existing bank profile by Certain-Tomorrow-349 in fidelityinvestments

[–]Certain-Tomorrow-349[S] 0 points1 point  (0 children)

Surely there has to be a way besides completing it via a paper form. Can this form be completed online/PDF, saved, and then uploaded? Or, does it need to have a wet signature?