Then it sounds like someone's not doing their job, unfortunately.livesoft wrote:This is for a company with about $70 million in annual revenues with about 200 to 300 employees.
Search found 37 matches
- Mon Feb 01, 2016 1:13 pm
- Forum: Personal Finance (Not Investing)
- Topic: Dental and vision insurance payments withheld from paycheck, taxed? [UPDATED]
- Replies: 20
- Views: 2574
Re: Dental and vision insurance payments withheld from paycheck, taxed?
- Sun Jan 31, 2016 9:01 pm
- Forum: Personal Finance (Not Investing)
- Topic: Dental and vision insurance payments withheld from paycheck, taxed? [UPDATED]
- Replies: 20
- Views: 2574
Re: Dental and vision insurance payments withheld from paycheck, taxed?
Yes, you are both correct. However, sometimes the savings to amend the plan do not justify the administrative costs to amend the plan. In that case, it makes business sense for the administrator to decide against amending the plan.
The cost in my Section 125 to amend a plan is something like $150. Say your dental plan is $17.50/month per employee and your employees contribute 20%. Then they you are getting a payroll tax break on $3.50 per month per employee, or about $0.20 per month per employee ($2.40/yr). It will take about 60 employee-years to break even. If you are a small business, it may not make sense.
The cost in my Section 125 to amend a plan is something like $150. Say your dental plan is $17.50/month per employee and your employees contribute 20%. Then they you are getting a payroll tax break on $3.50 per month per employee, or about $0.20 per month per employee ($2.40/yr). It will take about 60 employee-years to break even. If you are a small business, it may not make sense.
- Tue Jan 26, 2016 4:09 pm
- Forum: Personal Finance (Not Investing)
- Topic: Dental and vision insurance payments withheld from paycheck, taxed? [UPDATED]
- Replies: 20
- Views: 2574
Re: Dental and vision insurance payments withheld from paycheck, taxed?
OK, I read the links and I do not see why dental/vision insurance is different from health insurance when it comes to exclusion from wages, nor what Section 125 has go to do with any of this tax situation. My inclination is to ask why this Section 125 thing was brought up and ask if it is just side-tracking my question. Thanks! I believe Section 125 is at the heart of the question. Section 125 allows the employer to offer these benefits pre-tax. However, they have to be stated in the Section 125 plan documents to fall under the plan. The situation I could see in which this could occur would be if the Section 125 was set up and written to cover health insurance premiums. If vision and dental were added later and NOT amended into the Section...
- Wed Jan 06, 2016 3:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: solo 401k problem - overcontribution on employER side
- Replies: 10
- Views: 1487
Re: solo 401k problem - overcontribution on employER side
I appreciate the correction in the misunderstanding of the "maximum deductible" terminology. That is a pretty important distinction and I was clearly reading it wrong. I did not understand the 25% limit correctly, but now do after re-reading your post. Thank you for that re-re-re-clarification :-) I did note Spirit Rider's comment on 1/2 of the earnings minus deferral but did not recognize what it mean until now! Thanks for re-pointing me to that as well. I have been very concerned about putting a million bucks into a solo 401k only to have it disqualified right before I retire, so I do appreciate your alleviation of my fears. You hope that the IRS will accept good faith efforts en face, but you hear these horror stories... I will...
- Tue Jan 05, 2016 6:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: solo 401k problem - overcontribution on employER side
- Replies: 10
- Views: 1487
Re: solo 401k problem - overcontribution on employER side
Thanks to both of you for the help. Spirit Rider is correct, this was for 2014 so the $17.5k limit applied for that year. The employer contribution was made in 2015 for the 2014 calendar year. I think my area of question is around what the limitation for the employER contribution vs the limitation for the employer DEDUCTION. The form "Deduction Worksheet for Self Employed" https://www.irs.gov/publications/p560/ch05.html is a DEDUCTION worksheet. I understand that as meaning that this is the maximum that a self-employed person can DEDUCT from their taxes, not that maximum that they can contributed. I have been under the impression in past that, for example, you can match as much of an employee's deferral as you want, but you can on...
- Tue Jan 05, 2016 2:26 pm
- Forum: Personal Finance (Not Investing)
- Topic: solo 401k problem - overcontribution on employER side
- Replies: 10
- Views: 1487
Re: solo 401k problem - overcontribution on employER side
Thanks so much for the comments. Funds were contributed in 2015 so they could be re-classified as a 2015 employER contribution but I do not believe this is necessary. From my understanding, the problem is that too large a deduction was taken, but the funds within the 401k are not "disallowed" as would be the case if she contributed more than she made. I believe this is a matter of owing more taxes due to a non-deductible contribution, not an issue of improper 401k funding. Can anyone confirm this understanding of the foul-up? In this case, the funds could not be re-classified as employee deferral because she made a 4k contribution to the solo 401k and a 13.5k contribution to 403b, so she is fully maxed out on the employee deferral...
- Tue Jan 05, 2016 10:54 am
- Forum: Personal Finance (Not Investing)
- Topic: solo 401k problem - overcontribution on employER side
- Replies: 10
- Views: 1487
solo 401k problem - overcontribution on employER side
Hoping to get some advice from people in a similar situation. I have scoured the threads and have not found something quite like we have. We set up a solo 401k for 1099 income my wife gets for consulting on the side. She has a w2 as well. Last year, the consulting made $5887 gross. We contributed $4k to her solo 401k and $13.5k to her regular work 403b. We also contributed $1808 as the employer contribution on the solo 401k. These taxes were filed in 2014. Now as we get the recommendations back for 2015, I notice that the employer contribution to her solo 401k looks like it is more than it should be. I have read at length about the 20% vs 25% employer contribution for self employed individuals (she is a sole proprietor). On review of the pr...
- Tue Jan 05, 2016 9:57 am
- Forum: Personal Finance (Not Investing)
- Topic: Crazy to take on more debt?
- Replies: 10
- Views: 2214
Re: Crazy to take on more debt?
A few things to consider regarding the practice purchase: 1. When you say that you would not get much income, do you mean that you would be putting the income towards paying down the 1.3M purchase price, or are you saying that the practice is not cash flowing well? For 1.3M, you should be getting a beast of a practice. 2. Many areas have large hospitals buying up small practices and sometimes even larger practices. This can effectively nullify the good will portion of the practice valuation, and I have heard some people talk about the value of good will going down significantly because of this. You may wish to consider this in the valuation of the practice. 3. There are a lot of changes in healthcare, ACOs, ACA, etc on in our yards or on th...
- Sun May 31, 2015 9:57 am
- Forum: Personal Finance (Not Investing)
- Topic: Housing Market in SoCal
- Replies: 55
- Views: 10347
Re: Housing Market in SoCal
You can time the housing market based off buy:rent ratios. This market favors renting. So you rent. When buying is cheaper, you buy. Life style preferences not withstanding. This is quite different than waiting for a crash. Are there areas where the buy:rent doesn't change much? Perhaps I guess your point could be that in some areas, it never makes sense to buy. Would that be any different than choosing to buy stocks:bonds based on the most recent returns ratio? It seems hard to predict home prices and rental rates, just as it is hard to predict stock and bond performance. Don't know the answer, maybe someone wiser can share. Obviously, there is the illiquid nature of buying a home vs a stock plus the transaction costs, but for a long term...
- Fri May 29, 2015 6:41 pm
- Forum: Personal Finance (Not Investing)
- Topic: Housing Market in SoCal
- Replies: 55
- Views: 10347
Re: Housing Market in SoCal
Some areas in SD didn't seem to change all that much with the housing dip. Consider that in where you are looking if you are worried about home values dropping, particularly if you are looking for a good school district...where prices may be more stable. One thing I have always thought interesting is how most of us believe we can't time the stock market because no one can predict the future, but it seems everyone wants to time the housing market. I wonder if overpaying by 10-15% is really much of an issue if you are buying a long-term home. At the end of the day, whether your house is worth 500k or 600k in 5 years, what difference does it make to you? It's the same place you come home to every night...assuming of course that you have chosen...
- Wed Jan 21, 2015 3:26 pm
- Forum: Personal Finance (Not Investing)
- Topic: 401k plan sponsor responsibilities (Employee Fiduciary)
- Replies: 3
- Views: 533
Re: 401k plan sponsor responsibilities (Employee Fiduciary)
livesoft, employees with a balance over $5k cannot be forced out of your 401k. For balances less than $5k, they can be forced to roll out or convert to an IRA for which they are responsible for fees.
ERISA Stone, your 401k posts have always been tremendously helpful. It does appear that EF has a form like Principal which is filled out by the employee, signed by the employer for authorization, and then sent by the employee to EF. This does include the special tax information. I guess it is not as much of a responsibility as I thought, I am just surprised that the company that holds and doles out the money is not the one who processes all the paperwork.
ERISA Stone, your 401k posts have always been tremendously helpful. It does appear that EF has a form like Principal which is filled out by the employee, signed by the employer for authorization, and then sent by the employee to EF. This does include the special tax information. I guess it is not as much of a responsibility as I thought, I am just surprised that the company that holds and doles out the money is not the one who processes all the paperwork.
- Wed Jan 21, 2015 2:56 pm
- Forum: Personal Finance (Not Investing)
- Topic: Should I ask for a raise? If so, how?
- Replies: 11
- Views: 2125
Re: Should I ask for a raise? If so, how?
Based on your questions, I assume you are a physician. This advice is free so please take that for what it's worth. 1. It is hard to assess whether you could or should ask for a raise, particularly in medicine. Consider who your boss is. Asking a physician employer for a raise is very different than asking a business employer for a raise. Many physicians take the attitude that money is secondary. Whether this is right or wrong, it is important to know who you are talking to. As for negatives, you should be prepared to defend not only why you are asking for a raise, but why you should be compensated at your current level. Realize that medical reimbursement is generally going down. Cost of delivering healthcare is going up, not just for the c...
- Wed Jan 21, 2015 11:30 am
- Forum: Personal Finance (Not Investing)
- Topic: 401k plan sponsor responsibilities (Employee Fiduciary)
- Replies: 3
- Views: 533
401k plan sponsor responsibilities (Employee Fiduciary)
I recently started a 401k with EF. I have thus far been fairly happy. I asked them recently where I am supposed to file the employee beneficiary designation form. They told me that I am to retain them myself as I would be the one administering if it was needed. I would be responsible for processing any distributions requests. I am also responsible for inputting and administering the employee deferral forms as well as their designated default investments. These 2 forms seem reasonable to me, but the retention of and processing of distribution forms seemed odd. What if the employee has been out of my employment for 20 years? I would then be communicating with an employee with whom I have had no relationship for 2 decades. I would also be resp...
- Thu Jan 01, 2015 2:46 am
- Forum: Personal Finance (Not Investing)
- Topic: Starting sole prop or corp for max retirement savings (tax)
- Replies: 36
- Views: 5350
Re: Starting sole prop or corp for max retirement savings (t
If you set up an s-corp, you may also consider the benefit of shareholder distribution vs w2 wages. You will still need to pay yourself a "fair wage" for the work done, but the portion you assign as a "shareholder distribution" is not subject to payroll taxes. You may be subject to more state corp tax on this, but this is less than payroll tax. How you decide what is a fair wage vs shareholder distribution is murky water. Additional costs you may consider in addition to the ones you mentioned (CA corp tax, prep of 1120s) are local business licenses and business insurance, if you need it. Another added benefit of using an s-corp or LLC entity would be the ability to select your own healthcare options, including HSA. I hav...
- Thu Dec 25, 2014 11:36 pm
- Forum: Personal Finance (Not Investing)
- Topic: advice: buy vs finance office equipment
- Replies: 8
- Views: 1197
Re: advice: buy vs finance office equipment
The asset can be fully expensed in year 1 thanks to extension of the increased limit on Section 129 purchases. I may end up not taking full advantage of this if I think that using part of it may drop me down to 28% federal rate and holding back a portion might also drop me down to 28% next year. grabiner, your point is well taken. It seems that, by your logic (which I think I agree with), it is essentially never worth taking a loan for the short duration that business loans are typically taken given that it is hard to find an investment that could beat interest on the loan with any degree of certainty. A long-term loan such as a 15 or 30 year mortgage might be worth the risk, but the risk of underperforming a typical loan rate over the term...
- Mon Dec 22, 2014 4:55 pm
- Forum: Personal Finance (Not Investing)
- Topic: Paying off an Engagement Ring or Contributing to a Roth IRA?
- Replies: 26
- Views: 4138
Re: Paying off an Engagement Ring or Contributing to a Roth
Based on your disposition, it sounds like you are confident you will be able to pay the CC debt off by Feb of 2016. If so, then I would put the cash you have into the roth. Other thing to consider is if you will lose access to Roth IRA and/or backdoor roth in the near future due to income limits, etc. If you do, then putting the money in now may be wise because Roth IRAs are a nice way to diversify retirement income. Over a 1 year time horizon, if you plan on taking care of both obligations, it probably won't make much of a difference what is first and what is second. If you cannot in fact pay off the CC debt by Feb 2016, then you will need to sit down and do some calculations based on the interest rate, residual credit card amount when it ...
- Mon Dec 22, 2014 3:10 pm
- Forum: Personal Finance (Not Investing)
- Topic: advice: buy vs finance office equipment
- Replies: 8
- Views: 1197
Re: advice: buy vs finance office equipment
Excellent questions and points. For clarification of advice: 1. I am a physician, so unfortunately $55k is not an uncommon expense. We have to do this every 5-8 years or so. 2. Tax bracket is probably 28-33% federal and 10% state (thank you, CA). With the $55k purchase, I will be in the 28% bracket for sure. Whether I finance or purchase outright, the deductions would be the same so it would not change the tax implications other than the "real" interest rate I would be paying 3. As a medical practice, the corporate veil from the liability standpoint is unfortunately pretty much non-existent in terms of medical care, and this device is used for medical care. If someone slips in our offices, the corporate veil will hold as this is g...
- Mon Dec 22, 2014 1:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: advice: buy vs finance office equipment
- Replies: 8
- Views: 1197
advice: buy vs finance office equipment
So I have searched the forums and, surprisingly, have not found an answer to my question. Given the number of small business owners out there, I was surprised, but here I am nonetheless asking this questions. I am looking at acquiring a new piece of equipment for my office. It will cost about $55k. I am trying to figure out buy vs finance. The plan offered by the company is 7.99% and comes to $932/month over 60 months, which turns out to about an extra 10k in costs. I can access the HELOC on my home at 3.5% variable, and if it rises, beyond my comfort level, then pay it off. I do have the cash to buy it outright if I needed to, but it would essentially take 55k off my take-home for the year. I currently pay myself a base w2 to cover basic l...
- Thu Oct 23, 2014 10:44 pm
- Forum: Personal Finance (Not Investing)
- Topic: Creating a 401k for my company through Employee Fiduciary
- Replies: 85
- Views: 15893
Re: Creating a 401k for my company through Employee Fiduciar
I'm surprised no one has mentioned offering the Extended Market Index fund to cover mid-small caps. That, along with Total US Market, Total International, Total Bond, TIPS, +/- REIT and Emerging Markets actually allows for a good amount of diversification while allowing the informed investor to do some tilting if they so desire, while keeping the number of choices to a minimum. I agree with including both the target funds (default option) and Life Strategy funds. -K Total US Market cover large, mid, small, and some microcap companies. If I were offering S&P index fund, which only tracks large cap, I would also offer the extended market to allow access to mid/small cap. I do offer it in my 401k Vanguard Extended Market Index Adm VEXAX I...
- Wed Oct 22, 2014 3:28 pm
- Forum: Personal Finance (Not Investing)
- Topic: Creating a 401k for my company through Employee Fiduciary
- Replies: 85
- Views: 15893
Re: Creating a 401k for my company through Employee Fiduciar
Thanks for the update. Where did you see that specific fee listed? I asked for a sample contract from MG Trust, and they don't list any specific fee schedules, but use vague terms such as "reasonable fees agreed upon by Company and Trustee" in certain vague events. I confirmed with the EF rep that MG Trust charges us NO FEES, and any payment to MG Trust is done by EF through the $1500/0.08% AuM fees we pay yearly. This is stately clearly in the EF FAQ. She mentioned that there is a $300 termination fee if you decide to move from EF to a new TPA. The fees are listed in the IRA rollover paperwork that is a separate contract. These are fees that are charged to the participant, and these are charged to the IRA and not the 401k. In ot...
- Wed Oct 22, 2014 3:24 pm
- Forum: Personal Finance (Not Investing)
- Topic: Creating a 401k for my company through Employee Fiduciary
- Replies: 85
- Views: 15893
Re: Creating a 401k for my company through Employee Fiduciar
Are you saying that you believe 401(k) plans cannot charge ANY fees to their participants and still be acting as a fiduciary? Fees for administration? Fees for loans? Fees for distributions? Fees for rollovers?leonard wrote:
Rationalize it however you want. You are removing $25 from a participants account. That's a fiduciary decision. If it's an unnecessary $25 that is meant to force an action and doesn't benefit the participant, that's not doing fiduciary duty. Pretty cut and dry to me.
- Wed Oct 22, 2014 2:08 pm
- Forum: Personal Finance (Not Investing)
- Topic: Creating a 401k for my company through Employee Fiduciary
- Replies: 85
- Views: 15893
Re: Creating a 401k for my company through Employee Fiduciar
FWIW, we would recommend clients charge a $25 quarterly account administrative fee to incentivize terminated employees to leave. In what way is an unnecessary $25 fee looking out for a plan participant's best interest. I am certainly no expert, but from what I understand, it is a business decision whether to offer a 401k and there is no fiduciary responsibility there. It is the plan fiduciary's decision how to administer the plan. However, part of the business decision of whether to offer a 401k or not is based on fees that the plan is going to pay. So if the business has to eat more fees, they may decide to terminate the 401k. It is therefore a negotiation between the plan fiduciary and the business as to how the fees are structured and w...
- Tue Oct 21, 2014 6:24 pm
- Forum: Personal Finance (Not Investing)
- Topic: Creating a 401k for my company through Employee Fiduciary
- Replies: 85
- Views: 15893
Re: Creating a 401k for my company through Employee Fiduciar
I do not disagree with you in the least about the exorbitant fee, but please note that this is for ADDITIONAL statements, meaning that one was already sent and the IRA owner is requesting a duplicate. In other words, the IRA owner does not have to incur this if they do not choose to.
You recommend that the plan sponsor (i.e the company) charge a quarterly fee to employees who are in the 401k but no longer employees? I presume this is billed outside of the 401k assets? How do you enforce this if the participant does not pay? Send to collections, etc?
You recommend that the plan sponsor (i.e the company) charge a quarterly fee to employees who are in the 401k but no longer employees? I presume this is billed outside of the 401k assets? How do you enforce this if the participant does not pay? Send to collections, etc?
- Tue Oct 21, 2014 5:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: Creating a 401k for my company through Employee Fiduciary
- Replies: 85
- Views: 15893
Re: Creating a 401k for my company through Employee Fiduciar
Just wanted to provide an update on my EF enrollment experience. I have received the information for the IRA rollout if the participant exits the 401k (you can automatically roll people out of the 401k into an IRA if their balance is <$5k, if they have over $5k then you are stuck paying their fees until they move their money even if they leave your company). They charge a $150 fee for a duplicate of the participant's quarterly statement. This sounds rather excessive to me and I have inquired about it as I am concerned this would NOT be considered a "reasonable fee" from the fiduciary standpoint. EF has told me that this is a fee charged by MG Trust only after the 401k is rolled into the IRA. Although I am not thrilled with that an...
- Thu Oct 16, 2014 1:38 am
- Forum: Personal Finance (Not Investing)
- Topic: Help with post-residency personal finance/taxes
- Replies: 3
- Views: 958
Re: Help with post-residency personal finance/taxes
Thanks in advance! I just graduated from an physician residency program and am now making more money and want to start off right. I have a few things in mind and would like some input if anyone has some advice, it would be appreciated. Here is my breakdown of what I am planning on taxes for this year. 1) I earned around $25,000 in a W2 as an employee in residency this year 2) I earned around $130,000 while moonlighting as an independent contractor this year 3) I will earn around $100,000 as a W2 employee for my current group this year. 4) I will not be able to contribute to my employee sponsored 401k until January of 2015 5) I have around $75,000 from selling our house (after taxes and everything for this year) and am unsure what to do wit...
- Wed Oct 15, 2014 5:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: Creating a 401k for my company through Employee Fiduciary
- Replies: 85
- Views: 15893
Re: Creating a 401k for my company through Employee Fiduciar
Thanks to MossySF for the info on the Vanguard stable value fund, that would explain why it seems to be so hard to find.
EF did not require a specific bond company and I went with my primary GL insurance carrier. I think that, like most insurance companies for which there is a specific triggering event (rather than disability, where one could argue the nuances of the contract are much more important), it is more important that you have it and less who you have.
EF did not require a specific bond company and I went with my primary GL insurance carrier. I think that, like most insurance companies for which there is a specific triggering event (rather than disability, where one could argue the nuances of the contract are much more important), it is more important that you have it and less who you have.
- Tue Oct 14, 2014 11:32 pm
- Forum: Personal Finance (Not Investing)
- Topic: Creating a 401k for my company through Employee Fiduciary
- Replies: 85
- Views: 15893
Re: Creating a 401k for my company through Employee Fiduciar
An ERISA bond and fiduciary liability insurance are 2 different things. The 1st is required for all plans, the 2nd is optional depending on your level of nightly sleeplessness. I was never informed of either type of insurance by anyone (consultant/investment advisor, TPA, John Hancock, my accountant) when setting up my current plan. Are they ALL incompetent, or does one of them hold the ERISA bond and I'm covered by it? I see that they are very inexpensive, but I'm shocked this is the first I have heard of them. ERISA bond is required by EF and you will see this when you fill out the enrollment paperwork when you select your funds. They will accept a "pending" when you apply, but you will need it in place when you start. That's h...
- Mon Oct 13, 2014 10:48 pm
- Forum: Personal Finance (Not Investing)
- Topic: Creating a 401k for my company through Employee Fiduciary
- Replies: 85
- Views: 15893
Re: Creating a 401k for my company through Employee Fiduciar
I would be wary of doing the education yourself, personally...if they mishear you or misinterpret what you say, that in my mind is a concern for breach of fiduciary duty in providing adequate education, particularly as a sponsor and educator. I would want to have someone with some letters after their name doing that. Of course, I don't know your background -- perhaps you are a CFA, etc. I am sure you are as capable or more capable than many with those degrees, but unfortunately it is the perception and not the reality that guides people's (legal) actions. I would also be wary of advising people to skip the auto-pilot and do it themselves. Again, a lot of room for error... This is why I plan to bring in an outside fee-based advisor. I am no...
- Mon Oct 13, 2014 5:43 pm
- Forum: Personal Finance (Not Investing)
- Topic: Creating a 401k for my company through Employee Fiduciary
- Replies: 85
- Views: 15893
Re: Creating a 401k for my company through Employee Fiduciar
Am I wrong to the do stock, bond, asset allocation education (planning to use Vanguard's tool for this) and recommend creating their own mix with the admiral shares instead of dumping into a Lifestrategy/TR fund? Essentially mimic the mix they would have in those funds, but with admiral instead of investor? I suppose the worry is they will set it and forget it and never rebalance as they age, but I'd hate for them to not take advantage of the admiral ERs. Also, do you find it disingenuous to NOT offer Vanguard Total International Bond Index Fund separately, which a few posters have recommended, even when it is in the mix of the Target Retirement and Lifestrategy funds I will offer? Maybe I'm over thinking that point a bit and it's worth om...
- Mon Oct 13, 2014 1:11 am
- Forum: Personal Finance (Not Investing)
- Topic: Creating a 401k for my company through Employee Fiduciary
- Replies: 85
- Views: 15893
Re: Creating a 401k for my company through Employee Fiduciar
I was told by my account setup person that minimums for admiral shares did not apply to 401k through EF, and that these only applied to "retail" shares through IRA or brokerage. Interestingly, they said that the same was not true for institutional shares and that these would not be available to me. If you have heard differently, please let me know and if you wouldn't mind, PM the name of your rep so I can confirm with them. This would obviously change my list as we are also brand spanking new and do not have any plan assets. Just to clarify, you were told Admiral shares would be available regardless of plan assets, but institutional shares would not be? I have not been told anything as I'm still in the very early stages and haven...
- Sun Oct 12, 2014 6:44 pm
- Forum: Personal Finance (Not Investing)
- Topic: Creating a 401k for my company through Employee Fiduciary
- Replies: 85
- Views: 15893
Re: Creating a 401k for my company through Employee Fiduciar
I am in the process of setup through EF as well. For what it is worth, this is what I included. My intention was to mimic the TSP and then offer an alternative for each fund I thought it would be reasonable to offer an alternative for: G Fund Vanguard Prime Money Market VMMXX 0.17% F Fund Vanguard Total Bond Market Index Adm VBTLX 0.08% C Fund Vanguard 500 Index Adm VFIAX 0.05% S Fund Vanguard Extended Market Index Adm VEXAX 0.10% I Fund Vanguard Developed Markets Int adm VTMGX 0.09% Vanguard Inflation Protected Sec Adm VAIPX 0.10% Vanguard Total Stock Market Index adm VTSAX 0.05% Vanguard Small Cap Value Index adm VSIAX 0.09% Vanguard Total Int’l Stock index Adm VTIAX 0.14% Target Retirement Funds 2020-2060 I did initially plan to include ...
- Sat Oct 11, 2014 8:43 pm
- Forum: Personal Finance (Not Investing)
- Topic: % of income spent on life insurance
- Replies: 19
- Views: 2905
Re: % of income spent on life insurance
Several others have mentioned thinking about whether you truly need 20 or 30 yr. For what it's worth, I recently shopped this as well and was considering both. 30 yr was twice as expensive, almost to the dollar, as 20 yr. In the end, you need what you need, but as others have mentioned you can consider laddering multiple policies or buying a single laddered policy to account for your buildup in assets over time.
- Sat Oct 11, 2014 8:22 pm
- Forum: Personal Finance (Not Investing)
- Topic: Aca insurance/medicaid
- Replies: 13
- Views: 1924
Re: Aca insurance/medicaid
It seems that the bulk of your question centers around the finances of ACA vs medicaid.
I'm going to guess that you have already considered the coverage implications of ACA vs medicaid. If you have not, you will want to seriously consider this. Health insurance is useless if you can't find anyone who accepts it. With ACA, it can be tough to find providers to see you (at least in CA where I am), medicaid is almost impossible. As a friendly neighborhood boglehead, I just want to make sure you are considering your health as well as your pocketbook!
I'm going to guess that you have already considered the coverage implications of ACA vs medicaid. If you have not, you will want to seriously consider this. Health insurance is useless if you can't find anyone who accepts it. With ACA, it can be tough to find providers to see you (at least in CA where I am), medicaid is almost impossible. As a friendly neighborhood boglehead, I just want to make sure you are considering your health as well as your pocketbook!
- Thu Jul 17, 2014 8:04 pm
- Forum: Personal Investments
- Topic: retirement plan setup (medical practice, consulting)
- Replies: 7
- Views: 1285
Re: retirement plan setup (medical practice, consulting)
All answers tremendously helpful, thank you! I have 2 employees now and do not anticipate more than 2.5 in the next 1-2 years. They make $35-40k (thank you, metropolitan California) Bummer that I cannot do an individual 401k and my practice retirement plan (whether 401k or SIMPLE IRA). As for 401k vs SIMPLE IRA, I am looking for 401k with profit sharing in the future but for now, I do not have a 6 figure w2 salary yet (yes, hard to believe for you non-MDs out there, but we don't all make that much money!) although I do have a low 6-figure income due to distribution. Let's call it 80k salary and 50k distribution from the s-corp for even numbers. With a high 5 figure salary, a $3-5k cost to provide 401k for 2014 seemed like a bad choice when ...
- Mon Jul 14, 2014 12:19 pm
- Forum: Personal Investments
- Topic: retirement plan setup (medical practice, consulting)
- Replies: 7
- Views: 1285
Re: retirement plan setup (medical practice, consulting)
I know no one has commented yet on this, but for the benefit of anyone else who may be reading, I wanted to give an update.
It seems that you cannot set up 2 different retirement plans for 2 different businesses, even if you are a w-2 of one of them and you are offering benefits to the other employees of that business. If you control a majority in both, then you can't have one plan in your "regular" business and then a solo 401k for your 1099 income. I guess it's back to the drawing board for me...
It seems that you cannot set up 2 different retirement plans for 2 different businesses, even if you are a w-2 of one of them and you are offering benefits to the other employees of that business. If you control a majority in both, then you can't have one plan in your "regular" business and then a solo 401k for your 1099 income. I guess it's back to the drawing board for me...
- Sun Jul 13, 2014 10:57 am
- Forum: Personal Investments
- Topic: New Sole Proprietorship Retirement Questions
- Replies: 13
- Views: 2285
Re: New Sole Proprietorship Retirement Questions
What if the total income from the self employment is insufficient to reach the $17,500 individual max and/or you wish to contribute less than that?
For example, for $5k of income
gross income: 5,000
adjusted income: $4,646 (gross - 1/2 SE tax, per fidelity calculator)
s401k contribution $4,646
profit sharing $930
Since there is only $5k of income, is the max contribution between employer and profit sharing
$4,646 + $930 = $5,576 (business would be net negative)
$4,070 + $930 =$5,000
$3,716 + $930 = $4,646 which would occupy $3,716 of the $17,500 allowed for all personal contributions to retirement accounts, leaving $13,784 available to put into a 401k or SIMPLE IRA (max 12k) at another job?
*edited for math*
For example, for $5k of income
gross income: 5,000
adjusted income: $4,646 (gross - 1/2 SE tax, per fidelity calculator)
s401k contribution $4,646
profit sharing $930
Since there is only $5k of income, is the max contribution between employer and profit sharing
$4,646 + $930 = $5,576 (business would be net negative)
$4,070 + $930 =$5,000
$3,716 + $930 = $4,646 which would occupy $3,716 of the $17,500 allowed for all personal contributions to retirement accounts, leaving $13,784 available to put into a 401k or SIMPLE IRA (max 12k) at another job?
*edited for math*
- Wed Jul 09, 2014 2:01 pm
- Forum: Personal Investments
- Topic: retirement plan setup (medical practice, consulting)
- Replies: 7
- Views: 1285
retirement plan setup (medical practice, consulting)
I hope I am making this post in the appropriate forum. I was not sure if this went under Personal Investment or Personal Finance. First off, this place is just awesome! I have learned so much since snooping around the forums here! I am also an avid reader of whitecoatinvestor.com. I am kicking myself for the plethora of mistakes I have made in the past 10 years. I am hoping to get some advice as I do not have any friends in the same situation that I am in. I am a physician in solo medical practice with 2-3 employees and am finally at the place where I am looking to set up a retirement plan. I will be getting married this year. After looking into 401k vs SEP-IRA vs SIMPLE IRA, I am looking to most likely set up a SIMPLE IRA. My plan was to s...