Search found 32 matches

by EinAustin
Mon Jul 24, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Downside of Section 179 for work vehicle?
Replies: 0
Views: 85

Downside of Section 179 for work vehicle?

I need to buy a large vehicle for work and I'm wondering if there is any downside to the Section 179 depreciation other than possible recapture in the future? My understanding is if I use 179 I can't use mileage or write off the principal of the payment but I can still take a deduction for actual ex...
by EinAustin
Thu Jul 20, 2017 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401K match or Should I set up normal 401k?
Replies: 14
Views: 798

Re: Solo 401K match or Should I set up normal 401k?

One more question... Schwab gave me a form and said the $18,000 employee contribution can be contributed at one time by writing a check from our personal accounts instead of it coming out of our monthly payroll. Is there some exemption for Solo 401k that allows this because that seems to contradict ...
by EinAustin
Mon Jul 17, 2017 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401K match or Should I set up normal 401k?
Replies: 14
Views: 798

Re: Solo 401K match or Should I set up normal 401k?

Thank you. I opened the account with Schwab because Vanguard wouldn't let me do something else (unrelated to this thread) anyway.

Thank you for the information about future employees.
by EinAustin
Mon Jul 17, 2017 7:01 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401K match or Should I set up normal 401k?
Replies: 14
Views: 798

Re: Solo 401K match or Should I set up normal 401k?

Thank you. She was scheduled to be paid $24,000 so $12,000 remains for this year. I can bump it up to $18,000 but I'll have to figure out with Paychex if the entire amount of pay can go to the 401k. In other words there will be $18,000 remaining but not if SS, fed taxes etc are also taken out.
by EinAustin
Sun Jul 16, 2017 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K match or Should I set up normal 401k?
Replies: 14
Views: 798

Re: Solo 401K match or Should I set up normal 401k?

Thank you. I didn't realize the contributions had to come out of payroll. It's not a problem for my salary but my wife will have to get paid slightly more to have $18,000 remaining in her payroll.
by EinAustin
Sun Jul 16, 2017 6:08 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K match or Should I set up normal 401k?
Replies: 14
Views: 798

Re: Solo 401K match or Should I set up normal 401k?

Thank you. To answer a couple questions... We do file as a S Corp We do not qualify for any other 401K Each of us receives W2 wages. We use Paychex for our payroll. Are you saying the money has to come directly out of our account by Paychex and be sent to Schwab for the 401 k instead of us writing a...
by EinAustin
Sun Jul 16, 2017 12:10 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K match or Should I set up normal 401k?
Replies: 14
Views: 798

Solo 401K match or Should I set up normal 401k?

Hello Bogleheads. I am going to open a solo 401 K for my wife and me. My wife asked me if our company can do any type of matching of the employee contributions (on top of the employer profit share) as if we were a larger company. I can't find anywhere that says it's possible or not so I was wonderin...
by EinAustin
Thu Jul 06, 2017 9:35 pm
Forum: Investing - Theory, News & General
Topic: Convert SEP IRA to Solo 401 K
Replies: 8
Views: 648

Re: Convert SEP IRA to Solo 401 K

Schwab said they will allow this and gave me the paperwork to open the 401 k and transfer our accounts from Vanguard. I won't be able to turn in the paperwork until Monday. This is a big deal for us because we will be able to defer a lot of extra money with a high marginal tax rate this year. Thank ...
by EinAustin
Thu Jul 06, 2017 1:02 pm
Forum: Investing - Theory, News & General
Topic: Convert SEP IRA to Solo 401 K
Replies: 8
Views: 648

Re: Convert SEP IRA to Solo 401 K

Thank you for the suggestions. I went to the Schwab office and they said I can transfer my SEP from Vanguard into a Solo 401 K plan with them.
by EinAustin
Thu Jun 01, 2017 12:57 pm
Forum: Investing - Theory, News & General
Topic: Convert SEP IRA to Solo 401 K
Replies: 8
Views: 648

Re: Convert SEP IRA to Solo 401 K

I did something similar with the schwab route as set out by Spirit Rider. You should be fine. There is a section on the Schwab SEP prototype adoption agreement to set the effective date as the beginning of the year and to perform an amendment and restatement of an existing plan. Great. I was just a...
by EinAustin
Wed May 31, 2017 2:01 pm
Forum: Investing - Theory, News & General
Topic: Convert SEP IRA to Solo 401 K
Replies: 8
Views: 648

Convert SEP IRA to Solo 401 K

My wife and I own a company. We thought we would have an employee this year but now it looks like we won't. For this year (2017) employer SEP IRA contributions have already been made. If I had known we wouldn't have an employee we would have set up the Solo 401 (K) instead. Is there a way to switch ...
by EinAustin
Tue May 30, 2017 9:49 am
Forum: Personal Consumer Issues
Topic: Tempurpedic Discount
Replies: 10
Views: 1315

Re: Tempurpedic Discount

All the memory foam mattress are supplied by the same company. Go with Costco. That's a great suggestion. Just checked it out but they don't sell the type of bed we need. I'm curious, what's so special about the bed? It needs to be adjustable and a split bed (2 long twin beds vs 1 king bed) for hea...
by EinAustin
Mon May 29, 2017 6:58 pm
Forum: Personal Consumer Issues
Topic: Tempurpedic Discount
Replies: 10
Views: 1315

Re: Tempurpedic Discount

unclescrooge wrote:All the memory foam mattress are supplied by the same company.

Go with Costco.


That's a great suggestion. Just checked it out but they don't sell the type of bed we need.
by EinAustin
Mon May 29, 2017 12:33 pm
Forum: Personal Consumer Issues
Topic: Tempurpedic Discount
Replies: 10
Views: 1315

Tempurpedic Discount

My wife and I are considering buying a Tempurpedic bed. It's always been my understanding that their prices are set and not negotiable. However when we were in the store and I asked the salesperson he said he could reduce the price by 15% but I would lose free delivery and I wouldn't get the whole v...
by EinAustin
Fri May 05, 2017 8:30 pm
Forum: Personal Finance (Not Investing)
Topic: Detailed explanation of income for Solo 401 k
Replies: 28
Views: 1137

Re: Detailed explanation of income for Solo 401 k

I didn't realize the contribution had to be taken out of the paycheck. I still have well over $18k in payroll left for the year. Does the employer 25% have to be taken out evenly or can that be done in one lump sum contribution? The employee salary deferral contribution has to be withheld from payc...
by EinAustin
Fri May 05, 2017 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Detailed explanation of income for Solo 401 k
Replies: 28
Views: 1137

Re: Detailed explanation of income for Solo 401 k

Just like with a SEP IRA, a solo 401k employer contribution is limited to 25% of compensation. W-2 wages are compensation. K-1 distributions are not. Thank you for explaining that so simply. Essentially we can contribute an extra $36,000 towards the 401 K vs SEP IRA but it also means I can't hire a...
by EinAustin
Fri May 05, 2017 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Detailed explanation of income for Solo 401 k
Replies: 28
Views: 1137

Re: Detailed explanation of income for Solo 401 k

Just like with a SEP IRA, a solo 401k employer contribution is limited to 25% of compensation. W-2 wages are compensation. K-1 distributions are not. Thank you for explaining that so simply. Essentially we can contribute an extra $36,000 towards the 401 K vs SEP IRA but it also means I can't hire a...
by EinAustin
Fri May 05, 2017 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Detailed explanation of income for Solo 401 k
Replies: 28
Views: 1137

Detailed explanation of income for Solo 401 k

I am so grateful to have found bogleheads.org. It is very difficult for me to understand the nuance of some of the investments available without detailed explanations. Hopefully someone can explain how my income would be counted for a solo 401 k account. My company files as an S-Corp. This year my w...
by EinAustin
Tue May 02, 2017 7:14 pm
Forum: Investing - Theory, News & General
Topic: Calculating Future Social Security Benefits
Replies: 6
Views: 1031

Calculating Future Social Security Benefits

Hello Bogleheads. I'm having a tough time trying to estimate future Social Security benefits. My income has gone up and down many times. The only calculators I can find base my benefits off my income from 2015 which hasn't been typical if you start to average my best 35 years (actually 24 at this po...
by EinAustin
Mon May 01, 2017 7:26 pm
Forum: Investing - Theory, News & General
Topic: What to do about non deductible IRA contribution?
Replies: 16
Views: 1103

Re: What to do about non deductible IRA contribution?

You would probably save the most taxes if you established a 401k plan for at least yourself and your wife when she becomes a partner. If you hire an employee you would need to apply the same rules to the employee that you apply to yourself. Depending on your income, you could defer up to $108,000 b...
by EinAustin
Mon May 01, 2017 3:43 pm
Forum: Investing - Theory, News & General
Topic: What to do about non deductible IRA contribution?
Replies: 16
Views: 1103

Re: What to do about non deductible IRA contribution?

You would probably save the most taxes if you established a 401k plan for at least yourself and your wife when she becomes a partner. If you hire an employee you would need to apply the same rules to the employee that you apply to yourself. Depending on your income, you could defer up to $108,000 b...
by EinAustin
Mon May 01, 2017 3:00 pm
Forum: Investing - Theory, News & General
Topic: What to do about non deductible IRA contribution?
Replies: 16
Views: 1103

Re: What to do about non deductible IRA contribution?

To be ineligible for Roth IRA, you have to have a MFJ MAGI of $186,000 to start losing space. What do you mean by "set up a SEP"? Does she have self-employment income? If that is the case, then she should start a solo 401(k) and roll the IRA into that instead of converting it at a high ta...
by EinAustin
Mon May 01, 2017 2:02 pm
Forum: Investing - Theory, News & General
Topic: What to do about non deductible IRA contribution?
Replies: 16
Views: 1103

Re: What to do about non deductible IRA contribution?

She has no other IRA's. I am wondering if I shouldn't do this too. I do have money in a SEP IRA but nothing in a traditional IRA. I haven't filed my taxes this year. Can I contribute to a traditional IRA as non deductible and then transfer to a Roth or would I have to transfer the money in my SEP I...
by EinAustin
Mon May 01, 2017 1:50 pm
Forum: Investing - Theory, News & General
Topic: What to do about non deductible IRA contribution?
Replies: 16
Views: 1103

Re: What to do about non deductible IRA contribution?

Earl Lemongrab wrote:You say too high for deductible. Is it too high for Roth contribution as well?


My understanding is our income combined is too high to do a regular Roth IRA.
by EinAustin
Mon May 01, 2017 1:10 pm
Forum: Investing - Theory, News & General
Topic: What to do about non deductible IRA contribution?
Replies: 16
Views: 1103

Re: What to do about non deductible IRA contribution?

She has no other IRA's. I am wondering if I shouldn't do this too. I do have money in a SEP IRA but nothing in a traditional IRA. I haven't filed my taxes this year. Can I contribute to a traditional IRA as non deductible and then transfer to a Roth or would I have to transfer the money in my SEP IR...
by EinAustin
Mon May 01, 2017 12:21 pm
Forum: Investing - Theory, News & General
Topic: What to do about non deductible IRA contribution?
Replies: 16
Views: 1103

Re: What to do about non deductible IRA contribution?

Thanks. She started the account with $5,500 and has about $100 in gain. It looks like she can only have $5,500 for a Roth so what happens to the other $100?
by EinAustin
Mon May 01, 2017 9:43 am
Forum: Investing - Theory, News & General
Topic: What to do about non deductible IRA contribution?
Replies: 16
Views: 1103

What to do about non deductible IRA contribution?

Hi Bogleheads. My wife and I file as married filing together. Our combined income is too high for deductible personal IRA's. My wife only made about $10,000 last year. She made an IRA contribution for 2016. Until we met with our CPA to go over our taxes we didn't realize that wouldn't be deductible....
by EinAustin
Mon Apr 24, 2017 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Tax deferred options for S Corp owner
Replies: 2
Views: 233

Tax deferred options for S Corp owner

Hello Bogleheads. I'm hoping someone can give me advice or point me in the right direction of where I can find better advice about my options. I own a LLC and will be filing as a S-Corp this year. Part of my income will be W-2 and the rest K-1. My wife is not currently an owner but will be in a coup...
by EinAustin
Tue Feb 28, 2017 9:22 am
Forum: Investing - Help with Personal Investments
Topic: Tracking Returns Software
Replies: 6
Views: 623

Re: Tracking Returns Software

I look forward to hear more of the answers too. I dont think it is necessary, but I like the idea of knowing my gains and returns. I am currently using Morningstar and entering all of my purchased and sold lots (including dividend reinvestments). It gets tedious, but not all of the accounts that I ...
by EinAustin
Mon Feb 27, 2017 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: Tracking Returns Software
Replies: 6
Views: 623

Tracking Returns Software

Hello, My only stock market investments are in a SEP IRA I opened last year with $20,000. I invested it all on the same day. I am now going to make another $10,000 deposit for this year. Since I will be buying addition shares at different prices what is the best way to calculate future returns of th...
by EinAustin
Wed Sep 28, 2016 8:06 pm
Forum: Investing - Help with Personal Investments
Topic: Investing With Younger Spouse
Replies: 4
Views: 879

Investing With Younger Spouse

Hello and thank you in advance for any advice. My wife is 14 years younger than I am. I am 45 and she is 31. I can find plenty of advice about social security but not much about making general investments. What I'm trying to figure out is if there is an advantage to one of us investing in tax deferr...

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