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Re: Just inherited an IRA...how to incorporate into AA?

I have a different take on this. Consider a few concepts that we generally follow. 1. It is generally better to defer taxes during the accumulation phase. 2. You should manage your portfolios to minimize taxes. 3. You should manage volatility for accounts in distribution. For this reason, I subscrib...
by Spirit Rider
Tue Sep 30, 2014 11:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Just inherited an IRA...how to incorporate into AA?
Replies: 3
Views: 191

Re: Solo 401k - W2 Reporting

I thought of one other W2 issue that many S-Corps do not do properly, health insurance premiums. If the policy is in the S-Corp's name the S-Corp pays the premium directly. If the policy is in the employees name the S-Corp may still pay the premium directly or the employee pays the premium and the S...
by Spirit Rider
Tue Sep 30, 2014 3:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Solo 401k - W2 Reporting
Replies: 10
Views: 320

Re: Fidelity Freedom Index Funds - Available to retail inves

If you spin your own with FSTVX, FSGDX, FSITX (all advantage class), at the most likely asset allocations you will have 0.085% = 0.09% instead of 0.16%.
by Spirit Rider
Tue Sep 30, 2014 12:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity Freedom Index Funds - Available to retail investors
Replies: 6
Views: 941

Re: Solo 401k - W2 Reporting

ER contributions (match, profit sharing) do not get reported on the w-2. Roth 401(k) contributions are reported as AA in box 12. Pretax 401(k) contributions are reported as D in box 12 . http://www.irs.gov/instructions/iw2w3/ch01.html#d0e3089 + Pretax 401(k) contributions from 12D above are subtrac...
by Spirit Rider
Tue Sep 30, 2014 11:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Solo 401k - W2 Reporting
Replies: 10
Views: 320

Re: Maxing your IRA or 401k at the beginning of the year?

Your company 401k contributions have to be by payroll deduction. You couldn't do it by lump sum. You could do the maximum contribution for some number of payrolls until you hit the max. However as many previous responses have noted, that may cost you the company match for the remainder of the year. ...
by Spirit Rider
Tue Sep 30, 2014 3:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Maxing your IRA or 401k at the beginning of the year?
Replies: 11
Views: 818

Re: Worth converting from single member LLC to S-Corp?

I agree with aude that there is not enough data. Specifically, are the revenues from professional services, manufacturing, sales, etc... Are there capital assets, return on capital, employees, etc... However, even without the details, I feel fairly safe saying that $60K seems very low. Especially, g...
by Spirit Rider
Tue Sep 30, 2014 2:48 am
 
Forum: Personal Finance (Not Investing)
Topic: Worth converting from single member LLC to S-Corp?
Replies: 8
Views: 507

Re: Low cost online payroll?

It depends on what level of payroll support you want and what that $550 is really buying you. BoA will provide Intuit online basic payroll for free, if you have a BoA business checking and personal checking accounts and run payroll with direct deposit from the business to the personal account. You r...
by Spirit Rider
Tue Sep 30, 2014 2:14 am
 
Forum: Personal Finance (Not Investing)
Topic: Low cost online payroll?
Replies: 4
Views: 329

Re: Working & Collecting SS Benefits

Unfortunately, she is not in the clear. As vested1 stated: Your adjusted gross income + Nontaxable interest + ½ of your Social Security benefits = Your "combined income" So it is $23K-$24K plus any other income she has including tax exempt interest, plus 1/2 of the social security benefit ...
by Spirit Rider
Mon Sep 29, 2014 9:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Working & Collecting SS Benefits
Replies: 6
Views: 625

Re: What kinds of LLC owners can open a Solo 401k?

1. Not enough information. More likely than not, this is passive income and not eligible for a Solo 401k. Only a review of the IRS rules on passive income and the details of your involvement in this LLC can determine this.

2. No problem.
by Spirit Rider
Mon Sep 29, 2014 6:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: What kinds of LLC owners can open a Solo 401k?
Replies: 1
Views: 188

Re: Suggested Fidelity Indx funds for Solo 4O1K

Spirit rider, did you mean 120-age in equities conservatve? Looks like a typo, as you have 100 - age in equities, conservative 110 - age in equities, moderate 100 - age in equities, aggressive Mike Actually the other end, aggressive should have been 120 - age in equities (I made the edit). Conserva...
by Spirit Rider
Mon Sep 29, 2014 6:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggested Fidelity Indx funds for Solo 4O1K
Replies: 9
Views: 368

Re: Suggested Fidelity Indx funds for Solo 4O1K

andyandyandy, I missed that you were talking about a Solo 401k. So the Fidelity Freedom Funds are possibly useful for you and your wife. They are relatively new to retail investors (in the last month or two). Go to the Fidelity main page and do the following 1. Select the last tab on the right Inves...
by Spirit Rider
Mon Sep 29, 2014 4:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggested Fidelity Indx funds for Solo 4O1K
Replies: 9
Views: 368

Fidelity Freedom Index Funds - Available to retail investors

This came up in another thread, but I haven't seen it widely known. For those so inclined, Fidelity Freedom Index Funds became available to retail investors on or slightly after 08/01/2014. They should be available in brokerage, IRAs, SEP IRA, SIMPLE IRA, and Solo 401k accounts. Fund minimums should...
by Spirit Rider
Mon Sep 29, 2014 3:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity Freedom Index Funds - Available to retail investors
Replies: 6
Views: 941

Re: Suggested Fidelity Indx funds for Solo 4O1K

Be sure to look at Fidelity's Freedom Index funds, which are comparable to Vanguard's Target Retirement funds. I was going to respond that the Freedom Index Funds were only available to select 401k plans. The last time I looked (May) they were not generally available. However, when I looked today, ...
by Spirit Rider
Mon Sep 29, 2014 2:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Suggested Fidelity Indx funds for Solo 4O1K
Replies: 9
Views: 368

Re: Mortgage Advice for Self-Employed?

I will give you a last ditch option. I was in the exact same situation as you in the early 90's. There was a localized real estate boom/bust in the northeast. During the boom, it was easy to get no doc loans, but after the bust you had to fully qualify. Of course, I picked (or encouraged by layoff) ...
by Spirit Rider
Mon Sep 29, 2014 1:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Advice for Self-Employed?
Replies: 7
Views: 555

Re: Fidelity Puritan in IRA after retirement

You could consider two issues; asset allocation and asset location; If you want to keep it simple you could consider a 3-fund portfolio (total market, international, and total bond). Or if you like TIPS you could add that to your bond allocation. For example with your Tax/IRA/40k 35/10/55 split, you...
by Spirit Rider
Mon Sep 29, 2014 11:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity Puritan in IRA after retirement
Replies: 6
Views: 410

Re: Who holds your Solo 401k?

Mine is managed by fidelity. Their spartan funds are excellent and I'm pretty happy with them. is the Spartan fund the S&P 500 index or the US Total Market Index? Spartan is more like a brand or family of funds. There's a comparison to Vanguard on the wiki: http://www.bogleheads.org/wiki/Fideli...
by Spirit Rider
Mon Sep 29, 2014 11:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Who holds your Solo 401k?
Replies: 35
Views: 1917

Re: Selling car with loan.

Also, be aware that in many states a trade-in is deducted from the purchase price to calculate the sales tax. In most of those states, if it is a separate transaction you will pay sales tax on the full purchase price. You will have to check IL for their regulations.
by Spirit Rider
Sun Sep 28, 2014 12:59 pm
 
Forum: Personal Consumer Issues
Topic: Selling car with loan.
Replies: 8
Views: 500

Re: Verizon to Page Plus - documenting my experience

My mom is still on Verizon paying about $40 a month for 750 minutes. Those minutes are overkill. I'd like to switch her to a cheaper plan AND be able to port her off-contract Verizon old flip phone. No way she'll use a smartphone. Is PP an option for her? She uses max 200 minutes a month. There is ...
by Spirit Rider
Sun Sep 28, 2014 12:53 pm
 
Forum: Personal Consumer Issues
Topic: Verizon to Page Plus - documenting my experience
Replies: 63
Views: 7639

Re: Time to go back to cash and ditch the Credit Card?

I actually started using cash about a year ago, but it has nothing to do with fraud issues. I had reached the point were I used credit cards for almost everything and sometimes went weeks without any cash in my pocket. Then I finally realized that about 1/2 of my transactions were less than $10. Tha...
by Spirit Rider
Sun Sep 28, 2014 12:43 pm
 
Forum: Personal Consumer Issues
Topic: Time to go back to cash and ditch the Credit Card?
Replies: 39
Views: 3157

Re: IRA Beneficiary - Should a Trust ever be the beneficiary

I've received some conflicting information regarding titling all assets, including IRA's, into a revocable trust. It is not possible to title an IRA into any kind of trust. It is an I ndividual R etirement A rrangement. It is possible however to name a trust as a beneficiary of an IRA. Apparently, ...
by Spirit Rider
Sat Sep 27, 2014 8:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary - Should a Trust ever be the beneficiary?
Replies: 22
Views: 1413

Re: Can Employer send their Contribution to Traditional IRA?

No, the condition is the employee has a SEP and a traditional IRA and works for the government, so no SS. The employer direct deposits his 6.2% (SS replacement) into the employees SEP, and direct deposits a 6% company contribution into employees traditional IRA. The upshot of this is that the 6% tr...
by Spirit Rider
Fri Sep 26, 2014 4:35 pm
 
Forum: Investing - Theory, News & General
Topic: Can Employer send their Contribution to Traditional IRA?
Replies: 11
Views: 738

Re: contract employee: quitting

You should notify your contract holder first and generally defer to their instructions on client notification. Very often this is covered in the terms of your contract. However, if your contract holder is essentially an agency and only obtains the contract and maintains billing and payment processin...
by Spirit Rider
Fri Sep 26, 2014 2:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: contract employee: quitting
Replies: 2
Views: 526

Re: Question about medicare, myself, and spouse

To add a little more detail to what dm200 said. If your insurance does not qualify as employer provided insurance, there is a Medicare Part B premium penalty of 10% for each 12 months of delay after 65. Also, the premiums on some issued-age rated policies can be higher at 66 than 65. This will be a ...
by Spirit Rider
Fri Sep 26, 2014 1:35 pm
 
Forum: Personal Consumer Issues
Topic: Question about medicare, myself, and spouse
Replies: 9
Views: 679

Re: Self employment taxes assuming you also have full time j

spectec is correct. Each corporation must withhold 6.2% SS tax (employee/employer) up to the SS max wage base ($117K, 2014). It does not matter that with personal knowledge (of personal W2 employment) the S-Corp knows that the max wage base has been reached. The total employee portion in excess can ...
by Spirit Rider
Fri Sep 26, 2014 11:20 am
 
Forum: Personal Finance (Not Investing)
Topic: Self employment taxes assuming you also have full time job
Replies: 7
Views: 756

Re: Home insurance deductible, check my math

Is there any limit that forces you to use the insurance? Say my deductible is only $1000 and $2500 damage is done. Can I pay this out of pocket and the insurance none the wiser? No, there is nothing that forces you to make a claim. However, you wouldn't get the premium benefit of a $2500 deductible.
by Spirit Rider
Fri Sep 26, 2014 10:03 am
 
Forum: Personal Finance (Not Investing)
Topic: Home insurance deductible, check my math
Replies: 7
Views: 810

Re: Individual Health Savings Account HSA

Your conclusion is correct if you have an HSA qualified HDHP. Note: Simply being a high deductible health plan does not automatically mean it is an HSA qualified plan. There are some fine points that determine eligibility. Your HR may or certainly the healthcare provider can tell you this. However, ...
by Spirit Rider
Thu Sep 25, 2014 7:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Individual Health Savings Account HSA
Replies: 2
Views: 235

Re: Can Employer send their Contribution to Traditional IRA?

This doesn't sound like either a SEP IRA or a SIMPLE IRA. Employer contributions would not be made as a check to the employee. There is such a thing as a Payroll Deduction IRA. They are exceeding rare. They were more useful when it was more difficult for employees to fund their IRA automatically. Th...
by Spirit Rider
Thu Sep 25, 2014 3:39 pm
 
Forum: Investing - Theory, News & General
Topic: Can Employer send their Contribution to Traditional IRA?
Replies: 11
Views: 738

Re: Home insurance deductible, check my math

Check my math also. From this statement "From $1000 to 3% or $6216 (in my case)", I get a valuation of $207,200. This would make the 0.5% deductible $1036. Is that also what your premium is? Or did you grab the deductible instead of the premium. It seems counter-intuitive that a $36 greate...
by Spirit Rider
Thu Sep 25, 2014 11:17 am
 
Forum: Personal Finance (Not Investing)
Topic: Home insurance deductible, check my math
Replies: 7
Views: 810

Re: Are the tax rules the same if a foreigner inherits a 401

At the moment I have my beneficiaries in my 401K and Roth IRA are " my will ". While it might be just be semantics, I have never heard the term "my will" used, rather the estate of the account holder is named as the beneficiary. It is seldom if ever a good idea. Estates do not h...
by Spirit Rider
Tue Sep 23, 2014 10:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Are the tax rules the same if a foreigner inherits a 401K?
Replies: 8
Views: 546

Re: Advice for student buying cheap used car

I'm also with the contrary view here. The price premium for 10-15 year old Toyotas and Hondas justifies looking seriously at other options. I found that looking at the Consumer reports annual car issue and looking for a 2nd tier reliability class. Sometimes there are hidden gems that tend to fly und...
by Spirit Rider
Mon Sep 22, 2014 11:35 pm
 
Forum: Personal Consumer Issues
Topic: Advice for student buying cheap used car
Replies: 54
Views: 3130

Re: SS Calculation Question

PJW's response gives you the details and means to do full what if calculations. However, if your wife will stop working soon, there is a way to get a revised estimate (with some error margin) of age 70 benefits without doing all that data entry. On ssa.gov in the middle of the home page there is a r...
by Spirit Rider
Mon Sep 22, 2014 10:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: SS Calculation Question
Replies: 5
Views: 904

Re: ADT Home Security System

Try NextAlarm or SimpliSafe.
by Spirit Rider
Sun Sep 21, 2014 11:44 pm
 
Forum: Personal Consumer Issues
Topic: ADT Home Security System
Replies: 9
Views: 962

Re: How to achieve a balance between "saving" and "living"?!

Keep maxing out the 401k and Roth IRA. Establish an emergency fund of 6 months worth of expenses. Once that is done (if not already) start saving towards the motorcycle without reducing your retirement contributions. When you have the full price of the motorcycle saved up, if you still want it, buy...
by Spirit Rider
Fri Sep 19, 2014 9:52 pm
 
Forum: Personal Consumer Issues
Topic: How to achieve a balance between "saving" and "living"?!
Replies: 64
Views: 6534

Re: A new type of mortage

This makes no sense. Check this quote: On a $100,000 mortgage at 3 percent, for example, a $6,000 down payment could bring the rate permanently down to zero, Mr. Marks said, meaning that “every penny you pay will go to principal.” So only a 6% down payment gets you an interest rate of 0%??? A better...
by Spirit Rider
Fri Sep 19, 2014 9:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: A new type of mortage
Replies: 4
Views: 1009

Re: Contribution limits for partial self/employed?

Do you have access to an HSA? That would be another option. Do you have a spouse? She could also do contributions to both an IRA, and your solo 401k depending how your business is structure (e.g. spousal contributions are allowed in sole proprietorship LLCs ) I don't believe this restriction exists...
by Spirit Rider
Fri Sep 19, 2014 11:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Contribution limits for partial self/employed?
Replies: 6
Views: 393

Re: Contribution limits for partial self/employed?

A1) Yes, $5.5K -> Roth IRA contribution A2) Yes, $17.5K -> Roth individual 401k contribution A3) My calculation is a little different A3i) SE tax = $50K * .9235 = $46,175 * 0.153 = 7064.775 A3ii) Profit sharing = $50K - $7,065/2 = $46,468 * 0.2 = $9294 -> Traditional 401k B) HSA???. Even if your emp...
by Spirit Rider
Fri Sep 19, 2014 10:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Contribution limits for partial self/employed?
Replies: 6
Views: 393

Re: How to create a new 401k Plan

If the tech company will not be making contributions, they shouldn't even bother. There will be no way to have a safe harbor plan. Without a safe harbor plan, I can tell you from personal experience a 401k is often useless for a tech company. Tech companies are all but guaranteed to have a significa...
by Spirit Rider
Fri Sep 19, 2014 1:12 am
 
Forum: Investing - Theory, News & General
Topic: How to create a new 401k Plan
Replies: 4
Views: 483

Re: Question about popularity of HSAs

I must be missing something, but I'm using Fidelity for my HSA, and I don't see a fee schedule over their standard brokerage trading fees. Granted, I've got $500k+ parked with them, so I may be fee-waived, but for me, fees don't seem an issue. But I can invest in anything I want (TIPS, I'm in CA) L...
by Spirit Rider
Wed Sep 17, 2014 7:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Question about popularity of HSAs
Replies: 23
Views: 1388

Re: Individual 401K Contribution Questions

Just had to take a look at my tax return and net profit last year was 51K so I am pretty close to the 50%. I am set up as an LLC with S-Corp election. When you say to avoid paying FICA are you saying to avoid paying them altogether or to avoid paying any more than on the 24K? I saw on my tax return...
by Spirit Rider
Wed Sep 17, 2014 6:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Individual 401K Contribution Questions
Replies: 5
Views: 287

Re: Question about popularity of HSAs

HSAs are limited by a list of eligible/ineligible expenses. 401K/IRA withdrawals are mostly limited by your age. I think most here would prefer to fill the 401K & IRA first because of the flexibility down the road. In retirement HSAs can pay for Medicare Part B Premiums and LTCI. They can also ...
by Spirit Rider
Wed Sep 17, 2014 4:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Question about popularity of HSAs
Replies: 23
Views: 1388

Re: Individual 401K Contribution Questions

Generally, for an Individual 401K the employer contribution is a non elective profit sharing contribution and not an elective match. From a purely tax point of view it does not matter whether pre-tax contributions are from employee deferrals or employer contributions. The only difference would be if...
by Spirit Rider
Wed Sep 17, 2014 4:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Individual 401K Contribution Questions
Replies: 5
Views: 287

SSA Resumes Mailing Social Security Statements

The agency will resume mailing periodic statements to all workers not receiving benefits. However, this will now be done every five years. They had already resumed mailing yearly statements for those >= 60. You can still review your up to date statements online. Agency Resumes Mailing Social Securit...
by Spirit Rider
Wed Sep 17, 2014 3:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: SSA Resumes Mailing Social Security Statements
Replies: 6
Views: 1140

Re: Solo 401k Contribution Limit Confusion

A good reference for the calculation is the Deduction Worksheet for Self-Employed in IRS Publication 560. Atgard's concise summation a couple of posts covers the relevant issues. Fidelity's calculator is the only online calculator I am aware of that handles this situation. One thing to keep in mind ...
by Spirit Rider
Wed Sep 17, 2014 12:41 pm
 
Forum: Investing - Theory, News & General
Topic: Solo 401k Contribution Limit Confusion
Replies: 7
Views: 822

Re: Any success stories of ppl who never made >$50,000?

Often, when browsing this forum, I see people asking for portfolio advice and usually they are dual medical professionals making north of $300,000 per year and have a $3 million plus portfolio. I am just wondering if there's anyone here who has a multi million dollar stock portfolio but has never m...
by Spirit Rider
Wed Sep 17, 2014 12:05 am
 
Forum: Personal Finance (Not Investing)
Topic: Any success stories of ppl who never made >$50,000?
Replies: 149
Views: 10004

Re: Opening Solo 401(k) and Closing SEP-IRA

You can open a solo-k for 2014. The active participant rule does not affect this; it has to do only with IRA deductibility. Ok, Now I'm confused. Could you elaborate on this further? Can you explain this FAQ Q&A from the IRS website? If I have a SEP, can I also have other retirement plans? You ...
by Spirit Rider
Mon Sep 15, 2014 11:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Opening Solo 401(k) and Closing SEP-IRA
Replies: 10
Views: 832

Re: Logistics of Solo 401(k)

1. I don't know the answer to this, but she could have just elected S-Corp status of the LLC. 2. Yes, the corporation has to make employer contributions 3. She is now an employee of a corporation, nothing involving her employment at the corporation can come from personal funds. Employee deferrals sh...
by Spirit Rider
Sun Sep 14, 2014 8:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Logistics of Solo 401(k)
Replies: 16
Views: 980

Re: Opening Solo 401(k) and Closing SEP-IRA

It is technically possible to have both a SEP IRA and Solo 401k. However, that is not true for Form 5305-SEP plans. I am not aware of any SEP IRA from a major provider that is not a Form 5305-SEP plan. So as a practical matter, you can not have both plans active at the same time. There is no formal ...
by Spirit Rider
Sun Sep 14, 2014 7:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Opening Solo 401(k) and Closing SEP-IRA
Replies: 10
Views: 832

Re: Inherited tIRA-benefits to liquidating?

And on reflection cashing out an inherited IRA to reinvest in taxable seems to me more akin to the Roth conversion discussion, with possible advantages to controlling the timing of taxes, rather than having big RMDs coming at me; additionally, it could be better to pay capital gains/dividends rate ...
by Spirit Rider
Sat Sep 13, 2014 5:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Inherited tIRA-benefits to liquidating?
Replies: 14
Views: 890

Re: SE tax and estimated taxes

JoeJohnson wrote:Line 61

+1

It is actually line 61 minus some other lines that don't apply to most people. See the 1040 instructions (line 77).

The safe harbor has extra benefits for you going W2 -> SE because FICA is not included, but hurts you going from SE -> W2 because SE tax is included.
by Spirit Rider
Fri Sep 12, 2014 10:51 am
 
Forum: Personal Finance (Not Investing)
Topic: SE tax and estimated taxes
Replies: 6
Views: 435

Re: Options vesting period coming to close, need advice

I don't have a comment on whether to exercise or not, or how much to exercise. However, I can tell you to absolutely sell at least whatever percentage of what you exercise to cover your tax liability. Your tax liability is the difference between the FMV on the date you exercise and the cost to exerc...
by Spirit Rider
Fri Sep 12, 2014 10:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Options vesting period coming to close, need advice
Replies: 8
Views: 509
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