Search found 5210 matches

by Spirit Rider
Tue Apr 25, 2017 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: 401k over contribution and 1099R
Replies: 5
Views: 222

Re: 401k over contribution and 1099R

The excess deferral was never put into the 401k, it was just held in a separate fund by the 401k provider. They returned the amount in a check to my former employer a couple weeks ago. Not sure if that makes a difference here. I've been told today that I'm deserving of a 1099-R from the 401k provid...
by Spirit Rider
Tue Apr 25, 2017 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: Employer 401(k) Liability
Replies: 6
Views: 419

Re: Employer 401(k) Liability

I think your plan sounds not only feasible, but very sound. I have a feeling the Lincoln Financial guy was more interested in the money he could make. For any HCEs, a safe harbor plan is a retention plan . I have never met anyone who made their career decisions based on vesting schedules. I worked f...
by Spirit Rider
Tue Apr 25, 2017 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Unique HSA/HDHP Situation
Replies: 6
Views: 382

Re: Unique HSA/HDHP Situation

If your scenario holds, and you haven't maxed your 401k or Roth, then fund those before the HSA. That would be my advice. I disagree with this. HSA contributions by payroll deduction are federal income tax free, state income tax free (except AL, CA and NJ) and FICA tax free. Just that makes them be...
by Spirit Rider
Tue Apr 25, 2017 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: 401k over contribution and 1099R
Replies: 5
Views: 222

Re: 401k over contribution and 1099R

This is a different situation than a normal excess deferral. Normally, this can only occur when when you work for more than one employer. The corrective actions in this case are directed at the employee. It is the employee's responsibility to remove the excess deferral and earnings This particular c...
by Spirit Rider
Tue Apr 25, 2017 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: max contribution mulitple employers 401k 403b
Replies: 1
Views: 136

Re: max contribution mulitple employers 401k 403b

Your thinking is correct. The employee deferral limit (2017 = $18K) is across all employers . The annual addition limit (2017 = $54K) is per employer (exception noted below). Therefore, you could reduce your employee deferral at employer 1, max the annual addition limit and increase the deferral at ...
by Spirit Rider
Tue Apr 25, 2017 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Disturbing Conversation With Medicare Agent re Forfeiture of Future Social Security Retirement Benefits
Replies: 32
Views: 4741

Re: Disturbing Conversation With Medicare Agent re Forfeiture of Future Social Security Retirement Benefits

I'm glad you finally got it resolved. Thanks for keeping us informed. Hopefully, your experience and reporting will help other Bogleheads. It is still a massive and largely unreported Medicare/HSA gotcha. Many websites still tell people that they should always enroll in Medicare Part A at 65 if stil...
by Spirit Rider
Tue Apr 25, 2017 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k recommendations?
Replies: 32
Views: 1042

Re: Solo 401k recommendations?

That's a really interesting point. So, it's possible to hire part-time and under 21 employees and continue to contribute to a solo 401(k)? Can you point me to the part of the Fidelity Adoption Agreement that allows this? That's the plan document. It is under Section 3. Coverage. In the Adoption Agr...
by Spirit Rider
Tue Apr 25, 2017 9:03 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k recommendations?
Replies: 32
Views: 1042

Re: Solo 401k recommendations?

I would add one more potential disadvantage to a Vanguard Individual 401k. The do not allow you to specify employee eligibility criteria. The three others allow you to specify the IRS allowed maximums. Up to an age 21 restriction and 1 year service requirement >= 1,000 hours. This allows you to hire...
by Spirit Rider
Tue Apr 25, 2017 8:54 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k recommendations?
Replies: 32
Views: 1042

Re: Solo 401k recommendations?

TIAX wrote:Thanks Spirit Rider. If the business is a sole proprietorship, would having a cash management account in the owner's name work?

All I know for sure, is they wouldn't let me for an LLC. It also might be a problem if the business name is other than just your name. I would call if that is the case.
by Spirit Rider
Mon Apr 24, 2017 11:50 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k recommendations?
Replies: 32
Views: 1042

Re: Solo 401k recommendations?

Vanguard i401k, $3K min: TSM; VTSMX = 0.16%, ISM; VGTSX = 0.18%, TBM; VBMFX = 0.16%, Roth, no rollover, no brokerage, no loans, Investor Shares only, no Admiral shares. There is no minimum with a Vanguard i401k. This is a good post on where to open i401ks - Where To Open Your Solo 401K . Although F...
by Spirit Rider
Mon Apr 24, 2017 11:43 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k recommendations?
Replies: 32
Views: 1042

Re: Solo 401k recommendations?

Thanks so much Spirit! So the ones that say "no Roth" I wouldn't be able to convert 401k funds to Roth funds on a yearly basis (ladder)? None of the one-participant plans I know of allow In-plan Roth Rollovers. The Roth for Vanguard and TD Ameritrade, refers to a Roth designated account o...
by Spirit Rider
Mon Apr 24, 2017 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k recommendations?
Replies: 32
Views: 1042

Re: Solo 401k recommendations?

This is my understanding of the options for the major one-participant 401k plans, Including lowest expense ratio for 3-fund portfolio. Some of this information has not been independently verified. So, if any of it is incorrect let me know. Vanguard i401k, No min: TSM; VTSMX = 0.16%, ISM; VGTSX = 0.1...
by Spirit Rider
Mon Apr 24, 2017 8:57 pm
Forum: Personal Finance (Not Investing)
Topic: As a business owner, what happens if the 401k company I picked goes bankrupt?
Replies: 6
Views: 797

Re: As a business owner, what happens if the 401k company I picked goes bankrupt?

I am considering guideline.com for my safe harbor 401k needs. Mine is a very small company with just 7 employees. I am considering them due to their very low fees. Just 0.03% AUM fee and annual expenses for 8 accounts is only $64. The custodian who will hold the funds is Benefit Trust Company (BTC)...
by Spirit Rider
Mon Apr 24, 2017 12:25 am
Forum: Investing - Theory, News & General
Topic: Is $20K I-Bonds considered cash or bond?
Replies: 55
Views: 3404

Re: Is $20K I-Bonds considered cash or bond?

This thread started as someone asking in the context of asset classes . Some people consider that there are really only two base asset classes with variations, Stocks and Fixed Income. However, a good many people view that there are really three base asset classes; Stocks, Bonds and Cash. This latte...
by Spirit Rider
Sun Apr 23, 2017 7:18 pm
Forum: Investing - Theory, News & General
Topic: Is $20K I-Bonds considered cash or bond?
Replies: 55
Views: 3404

Re: Is $20K I-Bonds considered cash or bond?

In my view anything that is principal protected and relatively liquid is Cash. A thirty year Treasury bond can be sold in a minute during market hours and you can have Franklin's in your hands tomorrow morning. But I don't consider them as cash. I see that you unbolded the most important half of my...
by Spirit Rider
Sun Apr 23, 2017 4:38 pm
Forum: Investing - Theory, News & General
Topic: Is $20K I-Bonds considered cash or bond?
Replies: 55
Views: 3404

Re: Is $20K I-Bonds considered cash or bond?

The answer can be found after the "I-". Nice quote, but overly simplistic. Are I-Bonds part of my fixed income assets, sure. However, I place my investments in three categories; Stocks, Bonds, and Cash. In my view anything that is principal protected and relatively liquid is Cash. This is...
by Spirit Rider
Sun Apr 23, 2017 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Why are pensions revered, but annuities reviled?
Replies: 112
Views: 8619

Re: Why are pensions revered, but annuities reviled?

I dispute the magnitude of the issue, but not the issue itself. A simple example. In the first six years of the IRA, I was in the U.S. Navy. I was considered earning credits for a pension and thus unable to contribute to an IRA. When I left the Navy after six years, I had missed out on six years of ...
by Spirit Rider
Sun Apr 23, 2017 8:40 am
Forum: Investing - Help with Personal Investments
Topic: Fund selection for unmatched 401k
Replies: 6
Views: 304

Re: Fund selection for unmatched 401k

grabiner wrote:(You could do this with your old employer 401(k); if it is charging 0.8% expenses on the target retirement fund, you want to get the money out.)

I would think that is decimal point problem. It is a Vanguard Institutional class fund.
by Spirit Rider
Sun Apr 23, 2017 8:07 am
Forum: Investing - Theory, News & General
Topic: Does Knowledge of Fellow Employees’ Retirement Contributions Encourage Greater Participation?
Replies: 13
Views: 1352

Re: Does Knowledge of Fellow Employees’ Retirement Contributions Encourage Greater Participation?

There is a company/organization that provides statistics on 401k plans. I don't remember who they are off the top of my head. The thing that has always struck me is the percentage of participants that contribute enough to get the full match is not as high as you would think. I don't remember the exa...
by Spirit Rider
Sat Apr 22, 2017 7:33 pm
Forum: Investing - Help with Personal Investments
Topic: Small business pre-tax savings vehicle
Replies: 14
Views: 335

Re: Small business pre-tax savings vehicle

Thank you Spirit Rider for staying with me.... Okay just confirming what I understand. With the agreement of both partners the partnership adopts an employer retirement plan of Self-Employed 401K. Than each partner can decide individually to open Self-Employed 401K or not. The one that decides to o...
by Spirit Rider
Sat Apr 22, 2017 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Liability protection for my retirement savings
Replies: 6
Views: 736

Re: Liability protection for my retirement savings

IANAL, but if your location information is correct and you intend to remain in Texas, then you appear to have robust asset protection for retirement accounts. See the following section of the Texas Property Code: 42.0021. ADDITIONAL EXEMPTION FOR CERTAIN SAVINGS PLANS. Texas appears to have protecti...
by Spirit Rider
Sat Apr 22, 2017 6:17 pm
Forum: Investing - Help with Personal Investments
Topic: Small business pre-tax savings vehicle
Replies: 14
Views: 335

Re: Small business pre-tax savings vehicle

Just to make sure I understand... If the employer (the partnership) is not making any contributions. Than each partner can make their own decision of which plan they choose and how much they contribute. In this case it's better to go with the Self-Employed 401K. Correct? No. The partnership is the ...
by Spirit Rider
Sat Apr 22, 2017 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: Incorrect 401k contribution reported on w-2 box 12a. Ramifications?
Replies: 3
Views: 378

Re: Incorrect 401k contribution reported on w-2 box 12a. Ramifications?

Carl53 is probably correct. Your W-2 Box 12 Code D reports your contributions based on your "pay dates", not pay periods or contribution deposit dates. It is likely that this value is actually correct. The only time I think this is used is to detect excess deferrals. Which you correctly no...
by Spirit Rider
Sat Apr 22, 2017 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: Small business pre-tax savings vehicle
Replies: 14
Views: 335

Re: Small business pre-tax savings vehicle

I would investigate SEP-IRA. You can shelter a lot more and absolutely no real complicated record keeping requirements. It is the exact opposite, a SEP IRA's maximum contribution is always <= a solo 401k. A SEP IRA allows only employer contributions and does not allow employee deferrals. The employ...
by Spirit Rider
Sat Apr 22, 2017 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: Small business pre-tax savings vehicle
Replies: 14
Views: 335

Re: Small business pre-tax savings vehicle

Note: The partnership is the employer, not each partner. Even though each partner is considered self-employed, the partnership must adopt the solo-401k. Then each partner can open their own account or not. Each partner can make employee deferrals from their net self-employment income. However, the p...
by Spirit Rider
Sat Apr 22, 2017 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Liability protection for my retirement savings
Replies: 6
Views: 736

Re: Liability protection for my retirement savings

A PSP is considered a qualified defined contribution plan and can be covered by ERISA, but only if the employer has eligible employees. If the plan only covers owner(s) and optionally their spouse(s), then it is not an ERISA plan.
by Spirit Rider
Sat Apr 22, 2017 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Medigap Insurance Plans
Replies: 20
Views: 1116

Re: Medigap Insurance Plans

I personally like plan-G the best; but there is no guaranteed issue if you are changing. But if you are VERY healthy, It could be a good time to change to G. I thought you could change plans without medical underwriting during open enrollment each year, so long as the new plan had a lower level of ...
by Spirit Rider
Sat Apr 22, 2017 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Medigap Insurance Plans
Replies: 20
Views: 1116

Re: Medigap Insurance Plans

The 2017 deductible for the Plan F - high deductible, is $2,200. That is the OOP total. The difference in premiums is usually close to this and in some cases even higher. For example, Plan F $279/month, Plan F high deductible $79/month. Even if you use the entire deductible, you save $200/year. Even...
by Spirit Rider
Sat Apr 22, 2017 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Delayed Mega Backdoor Roth
Replies: 6
Views: 692

Re: Delayed Mega Backdoor Roth

Another alternative if you want to preserve backdoor Roths is to determine if your plan accepts incoming traditional IRA rollovers. Many get around waiting periods by doing the following: ⋅ Mega backdoor Roth, after-tax contributions -> Roth IRA ⋅ Mega backdoor Roth, after-tax ea...
by Spirit Rider
Sat Apr 22, 2017 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard individual Roth 401k employee only?
Replies: 5
Views: 233

Re: Vanguard individual Roth 401k employee only?

Thanks to both of you! This is very helpful I wanted to clarify, if the 1099 and W2 jobs are unrelated, I still get $18k total 401k employee contribution across all my jobs? Does a 457 plan from the W2 job count toward this $18k as well, since it seems to serve the same purpose as a 401k? The emplo...
by Spirit Rider
Sat Apr 22, 2017 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Why are pensions revered, but annuities reviled?
Replies: 112
Views: 8619

Re: Why are pensions revered, but annuities reviled?

I don't think the OP missed anything. His query clearly identifies SPIAs--e.g., " It seems to me that upon retirement, converting some portion of your retirement account into an single-premium immediate annuity (SPIA) is for all practical purposes the same thing as retiring with a pension.&quo...
by Spirit Rider
Sat Apr 22, 2017 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Medigap Insurance Plans
Replies: 20
Views: 1116

Re: Medigap Insurance Plans

BUT given that Plans F and C go away in 2020, Hi-F goes away too. I have read that a High Deductible G is coming but I don't find any info about when and what it might be. I don't know where you received this information. Hi-deductible plan F is not going away. Only plans that pay coverage before a...
by Spirit Rider
Sat Apr 22, 2017 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard individual Roth 401k employee only?
Replies: 5
Views: 233

Re: Vanguard individual Roth 401k employee only?

For a sole proprietor net self-employment income = net profit - 1/2 SE tax. The OP could make an employee deferral of up to 100% of net self-employment income, but limited to the employee deferral limit (2017 = $18K) - any W-2 employment employee deferrals. The employee deferral can either be to the...
by Spirit Rider
Sat Apr 22, 2017 12:02 am
Forum: Personal Finance (Not Investing)
Topic: IRS refund today!
Replies: 42
Views: 3014

Re: IRS refund today!

They do this to give you positive connotation so you will give them an interest free loan next year as well! Truth be told, if you are excited about a (I'm assuming large) refund then you need to update your withholding. Well your assumption would be way off. Think hundreds not thousands. I wasn't ...
by Spirit Rider
Fri Apr 21, 2017 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Accounts for those with both W-2 and 1099-Misc (contractor) Income
Replies: 4
Views: 326

Re: Retirement Accounts for those with both W-2 and 1099-Misc (contractor) Income

There is no difference in maximum employer contributions between a SEP IRA and a solo 401k. The major difference is the SEP IRA assets will interfere with a backdoor Roth. Not only will the solo 401k assets not interfere with a backdoor Roth, the solo 401k provides a location to rollover any other p...
by Spirit Rider
Fri Apr 21, 2017 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating income for ACA and HSA contributions for a partial yr plan
Replies: 3
Views: 366

Re: Estimating income for ACA and HSA contributions for a partial yr plan

I was incorrect in mentioning the foreign earned income exclusion. Foreign Earned income is included in the ACA MAGI which determines ACA subsidies. It is applied later reducing the actual tax paid. Yes, if you are an HSA eligible individual on 12/1 you can make the full year's contribution. If you ...
by Spirit Rider
Fri Apr 21, 2017 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: IRS refund today!
Replies: 42
Views: 3014

IRS refund today!

Talk about fast. I filed Tuesday night and the refund was in my account earlier today. Less than three days. That has to be some kind of record.

Pretty impressive if you consider the volume they must have been getting on Tuesday night.

I was just hoping to get it by next Friday.
by Spirit Rider
Fri Apr 21, 2017 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: help with calculation: employer contribution to solo 401k
Replies: 17
Views: 1134

Re: help with calculation: employer contribution to solo 401k

This was already suggested in the fourth post and the OP acknowledge in the sixth post that this issue was resolved. The criteria in the 4th post only addresses one particular situation ; for example , the standard SE Tax calculation gets modified even if W-2 alone is < TWB ; and in the 6th post OP...
by Spirit Rider
Fri Apr 21, 2017 3:09 am
Forum: Personal Finance (Not Investing)
Topic: Estimating income for ACA and HSA contributions for a partial yr plan
Replies: 3
Views: 366

Re: Estimating income for ACA and HSA contributions for a partial yr plan

Will the overseas income qualify for the foreign earned income exclusion? If you have a Qualified High Deductable Health Plan covering more than yourself on 12/1 and you are an HSA eligible individual, then you can use the "last month rule". This would allow you to contribute the full fami...
by Spirit Rider
Thu Apr 20, 2017 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: How to Handle Taxes on One Time Windfall (sale)
Replies: 13
Views: 936

Re: How to Handle Taxes on One Time Windfall (sale)

Spirit Rider: We normally pay, rather than receive a refund. Last year we paid about $8k. If the taxes on the partnership distribution are around $50K, that would be about $60k in withholding to add to the current withholding. Sounds like a lot. You don't have to add the taxes on the sale of the pa...
by Spirit Rider
Thu Apr 20, 2017 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: CPA or TurboTax
Replies: 18
Views: 1410

Re: CPA or TurboTax

Tax filing is relatively straightforward for most people and they really don't get much benefit from a CPA. You don't know what you don't know. You could be leaving money on the table. However, this seldom is a reason for a CPA to do your taxes, they are slammed at tax time and have very little time...
by Spirit Rider
Thu Apr 20, 2017 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: How to Handle Taxes on One Time Windfall (sale)
Replies: 13
Views: 936

Re: How to Handle Taxes on One Time Windfall (sale)

You have plenty of time to increase W-2 withholding. You have over eight months to ensure that your tax withholding >= 110% of you 2016 tax liability. If you normally get a refund, you might not even have to increase your withholding or by that much. You can always check back in on say 9/1 and bump ...
by Spirit Rider
Thu Apr 20, 2017 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to SEP IRA and traditional IRA in same tax year?
Replies: 15
Views: 602

Re: Contribute to SEP IRA and traditional IRA in same tax year?

It seems like they should. you took an action that any reasonable person would to make a compliant 2016 SEP IRA contribution by the tax filing deadline. It was their weird system that rejected you. A point to consider. Traditional and Roth IRAs contributions are reported for the tax year they are fo...
by Spirit Rider
Thu Apr 20, 2017 2:18 pm
Forum: Investing - Theory, News & General
Topic: Anybody purposely loading up on mortgage debt?
Replies: 107
Views: 9961

Re: Anybody purposely loading up on mortgage debt?

It doesn't get mentioned much, but outright home ownership of your family home is one of the best asset protection moves you can make with taxable money. That maybe true in a state with an unlimited homestead exemption. In the vast majority of the country it would be best to keep your equity below ...
by Spirit Rider
Thu Apr 20, 2017 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K (Employer) with Maxed 403B?
Replies: 3
Views: 264

Re: Solo 401K (Employer) with Maxed 403B?

It was a reasonable conclusion. After all, you are getting paid for performing duties.

It is just that the IRS does not generally consider non-professional fiduciaries (e.g custodian) to be engaged in a trade or business. The good news is there are no SE taxes.
by Spirit Rider
Thu Apr 20, 2017 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K (Employer) with Maxed 403B?
Replies: 3
Views: 264

Re: Solo 401K (Employer) with Maxed 403B?

First things first. Payments for custodians, trustees, executors, etc... Cannot be considered as business income unless you are "in the business" of providing such services. Providing such services in only one case especially a dependent, most certainly does not constitute being in the bus...
by Spirit Rider
Thu Apr 20, 2017 1:12 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to SEP IRA and traditional IRA in same tax year?
Replies: 15
Views: 602

Re: Contribute to SEP IRA and traditional IRA in same tax year?

If you submitted the contribution ahead of the deadline and there was a problem, there should be a way to allow the contribution after the error is corrected. It sounds like the error was on Merrill's end. Yes, Monday. They're claiming that the website I used was only for employee contributions, an...
by Spirit Rider
Thu Apr 20, 2017 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: Is an IRA conversion the same as a backdoor IRA?
Replies: 2
Views: 321

Re: Is an IRA conversion the same as a backdoor IRA?

Any movement from from a traditional IRA to a Roth IRA is a Roth conversion. It mechanically may be a same trustee inter-account transfer, a trustee - trustee transfer or an indirect rollover. Tax-wise it must always be reported as a Roth conversion on form 8606 even if there is no tax liability. Al...
by Spirit Rider
Wed Apr 19, 2017 10:59 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct pre-purchase discount
Replies: 142
Views: 17719

Re: TaxAct pre-purchase discount

The 50% promo was in an email from a couple of weeks ago.

I have the Ebates browser extension loaded and it just pops up when there is cashback available.

If you filed an extension you have to 10/16/17 to file.
by Spirit Rider
Wed Apr 19, 2017 10:41 pm
Forum: Investing - Help with Personal Investments
Topic: individual 401k to traditional ira question
Replies: 7
Views: 511

Re: individual 401k to traditional ira question

Are you an active current employee? If yes, then any contributions from your current employer plan can't be rolled out of the plan until you leave, get fired, etc. This is not entirely true. If you are not happy with the expense ratios of your current plan, why don't you just amend your plan to the...

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