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Re: Vanguard Small Business SEP-IRA Questions

Given the small number of employees (at least in the short term), you might consider a SIMPLE IRA. This adds an employee deferral of up to $12K currently and only requires a 3% match. You are certainly able to increase the match. This allows the principals to contribute more without having the busin...
by Spirit Rider
Fri Aug 29, 2014 11:05 am
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard Small Business SEP-IRA Questions
Replies: 2
Views: 145

Re: Gas station etiquette

I subscribe to "an open pump is an open pump" My fuel filler is on the driver's side. I would (and have), pulled past B then A like you. However, since the filler is now on the wrong side, I would turn toward the exit, then back up and pull up to the pump the other way. then when done, bac...
by Spirit Rider
Thu Aug 28, 2014 5:11 pm
 
Forum: Personal Consumer Issues
Topic: Gas station etiquette
Replies: 46
Views: 2734

Re: HSA - how to decide if it is worth it?

What is intriguing is reading that it is a health care "trust" that descendants can use - that sounds really useful. It only remains an HSA when it is inherited by a spouse. If inherited by a non-spouse (including linear descendants), it ceases to be an HSA and is taxed as ordinary income...
by Spirit Rider
Wed Aug 27, 2014 11:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA - how to decide if it is worth it?
Replies: 14
Views: 962

Re: Husband rear-ended, driver ignoring his insurance

That's not correct. The deductible applies regardless of who is at fault, unless you elected Waiver of Collision Deductible, and the other driver is uninsured or in hit-and-run cases, in which case you don't have to pay the deductible. If you want to recover the deductible and the other party is at...
by Spirit Rider
Tue Aug 26, 2014 9:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Husband rear-ended, driver ignoring his insurance
Replies: 39
Views: 3696

Re: Invest in my company's HSA or another?

Even with those high expense ratios, I would direct your contributions by payroll deduction to your company HSA. The SS max wage base is $117K for 2014, so you are getting close to where you won't benefit from the SS portion of the FICA deduction. Then you can do one indirect rollover/12 months to a...
by Spirit Rider
Mon Aug 25, 2014 11:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Invest in my company's HSA or another?
Replies: 2
Views: 289

Re: Spouse contribution to solo 401(k) - need to be employee

You would have to be either an employee or a co-owner. Otherwise there is no relationship to the business. No , there is no such thing as a spousal solo 401k contribution. If you do not want to be an employee, the co-ownership (and tax filing) would not have to have the complexity of a partnership o...
by Spirit Rider
Tue Aug 19, 2014 11:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Spouse contribution to solo 401(k) - need to be employee?
Replies: 2
Views: 338

Re: HSA Questions

Just want to make sure because we end up coming out very slightly ahead with standard deductions over itemizing. This caught my eye. Such a situation calls for bunching of deductions into every other year, so one year you do the standard deduction and the next year you itemizing because you have do...
by Spirit Rider
Tue Aug 19, 2014 1:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA Questions
Replies: 10
Views: 766

Re: Help with solo 401k

However, as a doctor there are additional concerns considering asset protection. A Solo 401k is not a ERISA plan. So while it has full federal bankruptcy protection, it is subject to state law with regards to creditors in other situations. This is highly dependent on your particular state. So, I wou...
by Spirit Rider
Mon Aug 18, 2014 8:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with solo 401k
Replies: 15
Views: 975

Re: Going from W-2 to 1099

Fidelity allows rollovers, but does not have a Roth option What do you mean by "Roth option"? After doing some research over the past hour, it appears you can do a backdoor Roth IRA with any solo 401k plan, regardless of the custodian. A back door Roth IRA has nothing really to do with a ...
by Spirit Rider
Mon Aug 18, 2014 1:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Going from W-2 to 1099
Replies: 27
Views: 1792

Re: Online property tax payment lost

The terms and conditions from every bill pay system I have used has specifically cautioned against using bill pay for tax payments. Some of them have explicitly exempted tax payments from their payment guarantees. For example, here is the relevant section from Bank of America's Service Agreement: E....
by Spirit Rider
Sun Aug 17, 2014 11:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Online property tax payment lost
Replies: 23
Views: 1396

Re: Help with solo 401k

To make things more complex, Can I do followings: Not to maximize my current employer's 401k, lets say I put 10000 in current employer's 401k Therefore now can I put 20% of 1099 income to individul 401 k ( employer contribution) and 7.5k as employee contributon to roth individual 401k ? So the tota...
by Spirit Rider
Sun Aug 17, 2014 9:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with solo 401k
Replies: 15
Views: 975

Re: Help with solo 401k

1. Is opening and maintaining a solo 401K more complex than a SEP IRA ? 2. Should I open the solo 401k in Fidelity instead of vanguard? ( as it has more option for future ) 3. Is tax filing of solo 401k very complex ? I have been doing my own tax so far. Will I be needing a CPA due to addition of s...
by Spirit Rider
Sun Aug 17, 2014 3:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with solo 401k
Replies: 15
Views: 975

Re: Verizon Rewards - worth signing up?

I too have about 40K points. However, the rewards are just about useless. I can get equal or better deals without the rewards on everything I checked.
by Spirit Rider
Fri Aug 15, 2014 11:28 am
 
Forum: Personal Consumer Issues
Topic: Verizon Rewards - worth signing up?
Replies: 11
Views: 1786

Re: Why is a back door Roth necessary

I would suggest the reason they do not remove the Roth income limits is tax revenue. Yes, backdoor Roth's are discussed here and are known to a certain segment of the populace. However, the whole reason for removing the income limits on Roth conversions in 2010 was to accelerate revenue collection. ...
by Spirit Rider
Fri Aug 15, 2014 11:16 am
 
Forum: Personal Finance (Not Investing)
Topic: Why is a back door Roth necessary
Replies: 6
Views: 869

Re: Going from W-2 to 1099

Thanks for the information. Does anyone know if Vanguard has a solo 401k program? And is it common for solo 401k plans to allow you to rollover your prior 401k into the solo one? Yes, Vanguard has a Solo 401k. However, they do not allow rollovers. Fidelity allows rollovers, but does not have a Roth...
by Spirit Rider
Thu Aug 14, 2014 8:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Going from W-2 to 1099
Replies: 27
Views: 1792

Re: Solo 401k-Wife Question

The maimum 2014 Solo 401k contributions for a sole proprietor are subjet to the lowest of the following limits: Self-employment income, which is net profit - 1/2 SE tax. Employment deferral max 2014 = $17,500. Profit sharing max 20% of self-employemnt income, but not more than $52K - employee deferr...
by Spirit Rider
Thu Aug 14, 2014 4:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Solo 401k-Wife Question
Replies: 4
Views: 334

Re: HSA Help - Time Required and Maximum Contribution

Assume HSA payroll deductions are available through employer. I am not an expert on SS but I think the decrease in SS benefit after 65 is very less compared to the tax benefit one gets right now for a person with income of say more than 50k. SS tax rate is 6.2%. If the OP contributed the max allowe...
by Spirit Rider
Thu Aug 14, 2014 4:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA Help - Time Required and Maximum Contribution
Replies: 6
Views: 558

Re: HSA Help - Time Required and Maximum Contribution

Yes, but... Under the last month rule , you are able to make the full contribution for the year if you are an eliblible individual on the first day of the last month of the tax year (Dec. 1 for most). However, you must remain eligible for the testing period (12/1 to 12/31 of the following year). If ...
by Spirit Rider
Wed Aug 13, 2014 2:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: HSA Help - Time Required and Maximum Contribution
Replies: 6
Views: 558

Re: Can I open a Solo 401k plan with no income?

I should have been more clear. I already secured an EIN (and she already has business credit cards) and it would be easy to show she has the intent to make money. She is a technical writer by trade and there are plenty of freelance, piece work type jobs out there for her expertise level she can bid...
by Spirit Rider
Wed Aug 13, 2014 11:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Can I open a Solo 401k plan with no income?
Replies: 15
Views: 1372

Re: Can I open a Solo 401k plan with no income?

In order to open a Solo 401k,you must be self-employed. That means you carry on a trade or business in good faith with the intent to make a profit. The amount of income (revenue - expenses) is not important if it is supplemental to the family total income. A knowlegable and conservative CPA told me ...
by Spirit Rider
Tue Aug 12, 2014 1:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Can I open a Solo 401k plan with no income?
Replies: 15
Views: 1372

Re: Transition from 401k to SEP

Last week, I persuaded my boss to end a crummy Paychex/Fidelity 401(k) and make the switch to SEP. So... what's next? What do I need to know in order to intelligently extract myself from Fidelity shift my money into a Vanguard TDF? Very grateful for any advice. Why would you want an employer to swi...
by Spirit Rider
Sun Aug 10, 2014 2:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Transition from 401k to SEP
Replies: 1
Views: 181

Re: Solo 401K Questions

A lot of this information is in direct contradiction to what an accountant/retirement planner just told me. Here are his words: The best way to accomplish what you need is: pay her a W-2 for slightly more than her deferral amount, then allow her to defer the maximum (I don't know if you are over/un...
by Spirit Rider
Thu Aug 07, 2014 5:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Solo 401K Questions
Replies: 10
Views: 872

Re: Should I close this credit card with Annual fee

I have a Macys store credit card from early 2010 (not sure if store cards count though) Have you ever looked at a free credit report? Macy's will be there. It will have a name like MCYDSNB, which might stand for Macys Department Store National Bank. You get a mark even for months when you don't cha...
by Spirit Rider
Sat Aug 02, 2014 9:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I close this credit card with Annual fee
Replies: 20
Views: 1980

Re: Solo 401K Questions

Here are two possible issues. 1. 401K employer contributions need to be the same percentage for each employee. Even though this is a Solo 401k, I believe this still applies to your wife. So you can not be taking all of the profit sharing max. 2. W2 employee deferrals can not be taken out of compensa...
by Spirit Rider
Sat Aug 02, 2014 9:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Solo 401K Questions
Replies: 10
Views: 872

Re: Is Medigap insurance really needed?

The two key points have been made separately by previous posters. Combining them shows that it is penny-wise and pound=foolish to go without any Medigap or Medicare Advantage coverage. 1. Medigap premiums can be medically underwritten if you do not enroll during your open enrollment period. Chronic ...
by Spirit Rider
Sat Aug 02, 2014 7:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is Medigap insurance really needed?
Replies: 83
Views: 4154

Re: credit card 0% teasing rate question

rrppve wrote:
placeholder wrote:Are you sure because I thought recent legislation requires above the minimum payment go to the highest interest rate debt.

+1

+2

Card Act of 2009
by Spirit Rider
Fri Aug 01, 2014 2:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: credit card 0% teasing rate question
Replies: 8
Views: 494

Re: Misleading information on tax loss harvesting wiki artic

Wash-Sale Rule - Investopedia The key is “substantially identical” - different share classes of TSM are “substantially identical”, so your example above would be a wash sale if performed within 31 days of the original sale. Going from Vanguard TSM to, say, Schwab Total Stock Market Index would also...
by Spirit Rider
Thu Jul 31, 2014 11:11 am
 
Forum: Investing - Theory, News & General
Topic: Misleading information on tax loss harvesting wiki article
Replies: 34
Views: 1470

Re: Question: Inheritance and Financial Aid

I believe that for FASFA, if the mother's income is low enough to qualify for certain needs based programs, then the EFC-FM is an automatic $0. In this case under normal circumstances there was no student contribution to the EFC-FM. Now whether this applies to substantial assets, I do not know. In t...
by Spirit Rider
Tue Jul 29, 2014 1:14 am
 
Forum: Investing - Help with Personal Investments
Topic: Question: Inheritance and Financial Aid
Replies: 12
Views: 580

Re: Question: Inheritance and Financial Aid

Assets held by the student have the greatest detrimental effect on the Expected Family Contribution (EFC). There are three EFC methodologies; Federal Methodology (FM), Institutional Methodology (IM) and Consensus Methodology (CM). There are two account types could possibly help one or more of the me...
by Spirit Rider
Mon Jul 28, 2014 11:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Question: Inheritance and Financial Aid
Replies: 12
Views: 580

Re: Inherited accounts

Can the beneficiary change the beneficiaries if the will stipulates something different? (So that a beneficiary wouldn't have to redistribute funds after receiving the inheritance) If the beneficiary has not taken any distributions, the beneficiary can disclaim within 9 months of the death of the d...
by Spirit Rider
Mon Jul 28, 2014 1:40 am
 
Forum: Personal Finance (Not Investing)
Topic: Inherited accounts
Replies: 42
Views: 2190

Re: Is tax deferment overvalued?

I don't know how to quantify this, but there is a significant benefit that there are no transactional tax costs. This allows you to rebalance and adjust asset allocations without cost.
by Spirit Rider
Sun Jul 27, 2014 12:38 am
 
Forum: Personal Finance (Not Investing)
Topic: Is tax deferment overvalued?
Replies: 20
Views: 2486

Re: 401k Failed Discrimination Testing- What Do I Do?

I had this happen to me before several years ago. Unless things have changed, I thought the were required to do this by March 15th
by Spirit Rider
Sat Jul 26, 2014 9:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401k Failed Discrimination Testing- What Do I Do?
Replies: 6
Views: 1091

Re: $250K reporting question for multiple Solo 401k plans

Spirit Rider wrote:NOTE: Since the self-employed is by definition both employee and employer, this would be a controlled group and the 415c annual addition limits (2014 = $52K) would apply across all elf-employed plans.

I should correct this and state that this applies to human plans also.
by Spirit Rider
Sat Jul 26, 2014 8:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: $250K reporting question for multiple Solo 401k plans
Replies: 7
Views: 809

Re: $250K reporting question for multiple Solo 401k plans

Yes, an individual can have more than one Solo 401k plan, but not more than one Solo 401k plan per employer. If you have more than one self-employed employer, you would need separate plans to use that compensation as a basis for contributions. NOTE: Since the self-employed is by definition both empl...
by Spirit Rider
Sat Jul 26, 2014 3:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: $250K reporting question for multiple Solo 401k plans
Replies: 7
Views: 809

Re: Verizon Issue advice

Sorry to hear about your mother. The billing sounds correct to me. Verizon, like most communications companies 'bills in advance'. The bill for 3/20-4/20 was probably issued on 3/20 with and payment due approx 30 days later hence the ACH withdrawal on 4/16. The bill for 4/20-5/20 would have been is...
by Spirit Rider
Fri Jul 25, 2014 6:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Verizon Issue advice
Replies: 16
Views: 1271

Re: Treasury Direct--just blowing off steam

It is NOT that mistake that set me off. What steamed me is 1) an online form that offers to let you enter a message, but --doesn't let you use three perfectly good punctuation characters in the message, --doesn't warn you in advance when you are entering the message, which is when you need to know ...
by Spirit Rider
Fri Jul 25, 2014 5:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Treasury Direct--just blowing off steam
Replies: 58
Views: 4184

Re: Where should I open a Solo 401k account?

It really depends what is important to you. For Example: Vanguard: Roth, no inbound rollovers, diverse low cost index funds, no loans. Fidelity: no Roth, inbound rollovers, core low cost index funds, no loans. TD Ameritrade: Roth, inbound rollovers, no native funds, loans Other options include Schwa...
by Spirit Rider
Fri Jul 25, 2014 1:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Where should I open a Solo 401k account?
Replies: 18
Views: 1238

Re: Estate Trustee requests I "waive presentation of account

I agree will all of the above posts. I also suggest an alternative. There is a difference between the formal accounting presented to the probate court and an informal accounting to the beneficiaries. If there is reasonable trust with the parties you could ask for an informal statement of assets and ...
by Spirit Rider
Thu Jul 24, 2014 6:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estate Trustee requests I "waive presentation of accounting"
Replies: 10
Views: 1362

Re: Does a 401k plan cost an employer money?

Well the true question, that I didn't actually express in my original post, is what is the marginal cost of adding graduate students to the plan, when there are already many employees in the plans already. There is no employer match for either the 457b or the 403b available at my school. livesoft h...
by Spirit Rider
Thu Jul 24, 2014 6:10 pm
 
Forum: Investing - Theory, News & General
Topic: Does a 401k plan cost an employer money?
Replies: 32
Views: 1776

Re: Does a 401k plan cost an employer money?

My understanding is that a myRA is just going to be a special kind of IRA. It would not increase an individual's contribution limits, unlike a 401k, 403b, or 457b To add a little more detail. The myRA is going to be a special kind of Roth IRA investing in a special Savings Bond based on the same in...
by Spirit Rider
Thu Jul 24, 2014 5:53 pm
 
Forum: Investing - Theory, News & General
Topic: Does a 401k plan cost an employer money?
Replies: 32
Views: 1776

Re: If Argentina Defaults

It's also arguable that given these bonds are held by 'vulture' funds these are not the people who lent Argentina money in the first place. So there's not the same moral obligation to repay (again different from the 1970-80s situation). How is it arguable that there is not the same moral obligation...
by Spirit Rider
Wed Jul 23, 2014 12:24 pm
 
Forum: Investing - Theory, News & General
Topic: If Argentina Defaults
Replies: 21
Views: 2040

Re: If Argentina Defaults

Do you really understand the Argentine economy. With all due respect and love for the Argentine people, the business community and government is one big Mafia-like environment. How do I know? I spent several years including >50% 1999-2001 living and working in Buenos Aires. My Porteno friends say it...
by Spirit Rider
Tue Jul 22, 2014 11:04 pm
 
Forum: Investing - Theory, News & General
Topic: If Argentina Defaults
Replies: 21
Views: 2040

Re: Small Business owner w/employees can I have SEP-IRA and

Unless you specifically adopted a non-SEP-5305 plan you are most probably a 5305 plan. Fidelity, Vanguard and most large providers are all SEP-5305 plans. Your provider can certainly tell you.
by Spirit Rider
Tue Jul 22, 2014 10:59 am
 
Forum: Personal Finance (Not Investing)
Topic: Small Business owner w/employees can I have SEP-IRA and 401k
Replies: 6
Views: 490

Re: Small Business owner w/employees can I have SEP-IRA and

Yes, I exempted the employees from the SEP-IRA (all joined the company after me and have not been employed for 3 years). I left those details out so it was less confusing. I actually messed up my years too (!) I meant can I do all of this in 2014... I think you got the general idea though anyway, I...
by Spirit Rider
Tue Jul 22, 2014 9:41 am
 
Forum: Personal Finance (Not Investing)
Topic: Small Business owner w/employees can I have SEP-IRA and 401k
Replies: 6
Views: 490

Re: Small Business owner w/employees can I have SEP-IRA and

In years 2012 and 2013 did you also have eligible employees? You stated that you put the maximum in both those years. You were required to contribute the same exact percentage to those eligible employees as you did for yourself. If not, you have a serious non-compliance issue with serious IRS liabil...
by Spirit Rider
Mon Jul 21, 2014 9:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Small Business owner w/employees can I have SEP-IRA and 401k
Replies: 6
Views: 490

Re: Should I open a solo 401k?

Wouldn't this affect my ability to do a backdoor Roth contribution? Exactly. I don't understand this hesitancy against using a Solo 401k. There is a trivial difference in the level of effort between a Solo401k and a SEP IRA. Yes, you might have one time Solo 401K paperwork vs. online enrollment for...
by Spirit Rider
Mon Jul 21, 2014 6:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I open a solo 401k?
Replies: 9
Views: 700

Re: Hearing Aids

I have a service connected disability rating for tinnitus and also have high frequency hearing loss. I always felt it was rather ironic that I have a disability rating for a subjective condition that cannot be proved. However, a 60db loss at 3KHz and 80db loss at 4Khz+ has no rating. I'm sure my hea...
by Spirit Rider
Sun Jul 20, 2014 11:14 pm
 
Forum: Personal Consumer Issues
Topic: Hearing Aids
Replies: 82
Views: 6311

Re: Business structure - Self employed software engineer

Good point, thank you. I'm planning on having a separate bank account. Any specific accounting software you would recommend for the LLC accounting/record keeping? Personally, I never felt the need for accounting software. As an hourly independent software contractor with minimal expenses I just kep...
by Spirit Rider
Sun Jul 20, 2014 9:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Business structure - Self employed software engineer
Replies: 18
Views: 1999

Re: Business structure - Self employed software engineer

Given the current market rates for my skillset, the net profits from my consulting business will generally be well under $200k; in some very good years it may reach 250K - but I think that would be the max for the next 5-7 years. One of my goal is to maximize the contributions to the retirement acc...
by Spirit Rider
Sun Jul 20, 2014 3:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Business structure - Self employed software engineer
Replies: 18
Views: 1999

Re: Need help w/self-employed 401(k) questions (and others!)

It is that the health insurance policy not just the coverage that needs to be in the name of the business. Note: It is ok if the policy is in the name of a self-employed individual, because the business is the individual. A group policy whether through other employment, COBRA, etc... do not qualify....
by Spirit Rider
Fri Jul 18, 2014 11:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need help w/self-employed 401(k) questions (and others!)
Replies: 9
Views: 527
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