Bogleheads.org

ERISA Stone

To summarize: 1. If it is a small business with the min % contribution to eligible employees, EF was just fine since they don't need to do any testing and just do record keeping. 2. Any business that has profit sharing and/or more complex testing requirements that EF needs to do - EF currently has ...

ERISA Stone

2, and really unforgivable in my experience - EF gave a 2nd HCE a higher contribution than all other participants other than the owner. EF didn't ask the owner how the other HCE was to be handled. I advised the owner to tell EF to give the HCE only the 3% SH contribution (NO PS contribution. This i...

ERISA Stone

Can you engage EF as a recordkeeper only and then hire an outside TPA? I doubt it but maybe. Most TPAs might be willing to do testing (we called this wrap services but that term can have several meanings depending on the company you're talking to) and not recordkeeping but I don't know of any who a...

ERISA Stone

smitcat wrote: ↑
Wed Mar 21, 2018 7:02 am

The largest disappointment with the EF 401K remains participation and employees leaving the plan.

Then you don't have any issues with EF because this isn't in the scope of administering a 401k plan. That falls on the company and the advisor if you have one.

ERISA Stone

Since I have heaped quite a bit of praise on Employee Fiduciary since I signed up with them in 2017, I feel obligated to update the board on a few issues. I've always tried to understand how EF was able to offer such low rates and a premium service, and I think after this round of administration it'...

ERISA Stone

b) I thought bonds and stocks are inverse correlated. I'm not sure where this thought came from. There are lots of different types of bonds, treasury bonds, corporate bonds, municipal bonds, and within those categories, there are lot of different bond grades (with the exception of treasuries) and b...

ERISA Stone

All it will take is for one state’s 529 plan to allow K-12 tuition, and anybody interested in a state refusing to allow them will head for the exits. Is there a precedent for this comment based on some other tax benefit? If I were in this situation, I would say, "man I wish I lived in that state." ...

ERISA Stone

I'm not sure what you want me to say here. I don't want to be disrespectful but I don't think you are interpreting the words correctly. My "argument" makes complete sense to me. If you want to apply Occam's Razor, have at it, but we are on the opposite sides of what exactly the simplest explanation...

ERISA Stone

theplayer11 wrote: ↑
Tue Jan 30, 2018 11:41 am

Your last sentence is all that really matters.

I agree.

ERISA Stone

I'd go with the X. Screen is pretty much the same on both but the actual phone is much larger with plus. As I've said previously on this thread, that might be true in theory (square inches), but in reality X is narrower and harder to read. The real estate is more valuable on the Plus The X is easie...

ERISA Stone

^But the instructions for line 17 does state "or any other deferred compensation plan." It does say "deferred" but your comment ignores the first half of that sentence. I'm finished with this conversation because I feel comfortable in my stance and I don't think I'm going to change anyone's mind wh...

ERISA Stone

Your argument makes no sense, because the part I didn't bold says; "or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan." So you are going to tell me that SARSEP and SIMPLE IRA employee deferrals do not get reported on lines 7&8, but 401k deferrals do? Not to mention ...

ERISA Stone

Deferrals should be included under compensation on line 7 or 8 of the Form 1120. Line 17 is reserved for employER contributions. I understand that technically a salary deferral is an employER contribution made on behalf of the employEE but I can't recall seeing an accountant take this to mean defer...

ERISA Stone

lazydavid wrote: ↑
Sat Jan 27, 2018 7:18 am

ERISA Stone wrote: ↑
Fri Jan 26, 2018 12:18 am
I've had the 6s Plus and the 7s Plus, and now I have the X.
There's no such thing as a 7s. They released the 8 instead.

7 Plus then? I get the models mixed up.

ERISA Stone

Deferrals should be included under compensation on line 7 or 8 of the Form 1120. Line 17 is reserved for employER contributions. I understand that technically a salary deferral is an employER contribution made on behalf of the employEE but I can't recall seeing an accountant take this to mean deferr...

ERISA Stone

I went through a test drive at Tesla yesterday. The salesman said they're being told the tax credit will start to phase out in May. It could be a ploy to sell me a car, but if so, I would think he would've picked an earlier month. Those guys often don't know what they're talking about from what I'v...

ERISA Stone

I never thought this was a good idea, plus the amount is very limiting, $50k, not a big amount to arbitrage one way or the other. But if you need money and has to do it then you have to do it. If you are only going to borrow money because the 401k loan is available, it's a bad idea. If you are goin...

ERISA Stone

How has no one pointed out the obvious? Taking loans out of 401(k)'s are extremely detrimental because of double taxation. Because it's not really true. https://thefinancebuff.com/401k-loan-double-taxation-myth.html most plans specify that you can't contribute to your plan while the loan is outstan...

ERISA Stone

How has no one pointed out the obvious? Taking loans out of 401(k)'s are extremely detrimental because of double taxation. Because it's not really true. https://thefinancebuff.com/401k-loan-double-taxation-myth.html most plans specify that you can't contribute to your plan while the loan is outstan...

ERISA Stone

I lived in Poland for a while. At the time, it was a hidden gem. I don't think that's the case anymore. I was about 1.5 hours by train from Krakow and went there every time I had the chance. It's a great city. If you go to Poland, it should be a requirement to go to Auschwitz. It's an emotionally he...

ERISA Stone

I've had the 6s Plus and the 7s Plus, and now I have the X. I would be a little bummed if I had to go back to one of the plus sizes. I love the size of the X and it seems the screen seems to be crisper than the pluses. Also, I hardly ever use the camera but my wife is constantly getting asked if her...

ERISA Stone

I've mentioned this several times on the website but in practice, I have either seen 1 actual after-tax contribution or none. As time goes by, I really can't remember. I'm guessing I've been involved in reviewing testing on somewhere between 400-600 plans. The reality is after-tax contributions are...

ERISA Stone

One observation I'll throw out there is that this ACP testing issue for HCEs hasn't received nearly enough mention in the various articles, blogs, etc. about the virtues of the mega backdoor Roth. Kind of surprising, at least to me, since it often (but not always, of course) suggests a fairly high ...

ERISA Stone

I went through a test drive at Tesla yesterday. The salesman said they're being told the tax credit will start to phase out in May. It could be a ploy to sell me a car, but if so, I would think he would've picked an earlier month.

ERISA Stone

What does your inclusion of 401k and 401a in the title mean. Are the two plans both 401k plans or a 401k and a 401a plan? 401a pre-tax contributions are considered mandatory contributions and are not included in the employee deferral limit. There is a separate annual addition limit (2018 = $55K) fo...

ERISA Stone

There is also a freeze period (3-6 months) that prevent you contributing to your 401k after you take a loan or distribution. While a plan can suspend 401k contributions when a participant takes a loan, this is not the norm. I believe you're thinking about hardship distributions. in which there is a...

ERISA Stone

For additional information, please see Spirit Rider's post in the link about a qualified joint venture, assuming your wife isn't a W-2 employee.

viewtopic.php?t=209448

ERISA Stone

If you are a sole proprietor you can make 401k contributions up to the filing deadline. If your wife was an S-corp, for example, and received W-2 income, the 401k contributions would have to be made through payroll. Since there is no payroll for a sole proprietor, this isn't an issue. For this state...

ERISA Stone

Vesting isn’t considered for the limit. The contribution is considered for the year in which it is attributable. So even though the contribution is deposited in 2018, it’s considered for the 2017 annual additions limit.

ERISA Stone

I've worked for about a dozen companies in the past 32 years that I've worked as an electrical design engineer. I've made a bit of a study of 401k matching. Many of the startups I've worked for offer zero match. The highest match I've ever received was 8%. My current employer is a Fortune 500 compa...

ERISA Stone

My company matches 100% on 7% of compensation. 100% Vesting after 1 year. We also have a pension on 3-year vesting. The best I've heard is Saudi Aramco, which matches 9%. Best? Nope. Read the third post above this. TravelforFun I had one client who, IIRC, for anyone who made over $55k who was able ...

ERISA Stone

total US total INTL total BND Vanguard or Fidelity Index TDF brokerage account for those that want to buy other fancy things anything past that is getting into the weeds. Our plan is with Employee Fiduciary. I selected the lineup above and added a REIT since I like to have approximately 5% of our p...

ERISA Stone

I am exploring options for retirement savings, and discovered HCE (highly compensated employee) rules for 401(k) plans. In a company with very few employees who ALL own more than 5% of the company (as in every single employee is considered a HCE) does the IRS still expect HCEs to contribute not sig...

ERISA Stone

total US total INTL total BND Vanguard or Fidelity Index TDF brokerage account for those that want to buy other fancy things anything past that is getting into the weeds. Our plan is with Employee Fiduciary. I selected the lineup above and added a REIT since I like to have approximately 5% of our p...

ERISA Stone

Piggybacking on bberris....Not only would an 11 month loan from your 401k cause you to miss out on whatever gains, but you will be taxed twice. When you repay the 401k loan, you will be repaying with after-tax money. Then many years later when you take a formal distribution, you will be taxed on th...

ERISA Stone

Allowing 401k loans to terminated participants? :shock: I'm glad you have the option but I'm having trouble fathoming a plan sponsor allowing this in a plan. What's the problem? The sponsor is not at risk. Yes, they are if they don't administer the loan properly. I don't know why an employer would ...

ERISA Stone

capsaicinguy wrote: ↑
Fri Jan 12, 2018 1:16 pm

AKA instead of paying someone 50k/year, offer 40k salary + 10k 401k contribution.

This wouldn't work for the average person. Very few people are able to trade in their salary for a 25% retirement benefit.

ERISA Stone

Allowing 401k loans to terminated participants?

I'm glad you have the option but I'm having trouble fathoming a plan sponsor allowing this in a plan.

ERISA Stone

Thank you all for sharing your advice. Sounds like life will go on, but not with this paycheck going toward her 401k. I know it's frustrating but doesn't this just mean your wife will hit the maximum deferral one paycheck later? It shouldn't have any effect on a match. That's the reasons I omitted....

ERISA Stone

You can't do this. The participant cannot have access to the funds to be contributed to the plan.

I know it's frustrating but doesn't this just mean your wife will hit the maximum deferral one paycheck later? It shouldn't have any effect on a match.

ERISA Stone

His plan would have to allow for hardship withdrawals if he is still employed. there are specific uses that qualify, see below. As you note, the money would be added to his income and he'd pay taxes. If he's over 59.5, the 10% extra penalty would not apply His company may also support 401(K) loans,...

ERISA Stone

Yes. Minivans are functional. SUVs are raised station wagons that get worse mileage, handle worse, cost way more, etc. Get a family hauler and then a commuter - maybe even a used Leaf? If you can get by with short range, they are dirt cheap and require little maintenance. Used Prius is a good bet f...

ERISA Stone

In practice we know otherwise. Proof? Just google "Password Manager breach" and read about the breaches at OnePass, LastLogin, etc. Some of the most secure banks have been hacked along with one of the big-three credit report agencies - google "breach", "hacked", etc and you can find lots of stories...

ERISA Stone

TravelGeek wrote: ↑
Mon Jan 08, 2018 12:29 pm

It is not best practice to require (or change voluntarily) passwords periodically.

Is this true? I've always read you should change your passwords every six months or so, especially those related to financial institutions.

ERISA Stone

For pastries, I recommend Veniero's. It's near where I stay and I usually get something from there every day I'm in NYC. And I have the weight progression spreadsheet to prove it.

ERISA Stone

DaftInvestor wrote: ↑
Mon Jan 08, 2018 11:54 am

In practice we know otherwise.

Proof?

ERISA Stone

Yes. Absolutely. I have used password managers for over ten years. Absolutely cannot imagine not using one. How do you keep track of dozens (or in my case, > hundred) of credentials (username, password, answers to secret questions, account numbers) in a secure way? I'll answer your question with a ...

ERISA Stone

ncbill wrote: ↑
Mon Jan 08, 2018 10:54 am

mouses wrote: ↑
Mon Jan 08, 2018 9:06 am
My dentist advises against tooth whitening because he says it can damage the nerves.
+1000

I will never do tooth whitening given the "issues" (usually sensitivity, sometimes outright damage)

does this include hydrogen peroxide as well?

ERISA Stone

I have 82 credentials currently stored in my password manager between personal and business. It was getting to be quite a chore to keep up with all of those passwords, assuming one takes the time to use different passwords and doesn't use the same one for each site. I think what makes this all the ...

ERISA Stone

I already think the "actionable" component of the website is arbitrary and frankly infuriating. I can't tell you how many times I've been chugging along a thread that is relevant to me only to have moderators cut it off. Then I see about 20% of the titles in the thread list and know that they can't ...

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