Search found 3880 matches

by Spirit Rider
Mon Sep 26, 2016 7:16 pm
Forum: Investing - Theory, News & General
Topic: 401(k) to Simple
Replies: 3
Views: 224

Re: 401(k) to Simple

That is an interesting question. Normally, when a company changes employer retirement plans, the assets are rolled over to the new plan. However, as you noted there is no ability, nor would you want one to roll over Roth sub accounts to a SIMPLE IRA pre-tax accounts. The logical (not always true in ...
by Spirit Rider
Mon Sep 26, 2016 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: S corp for physician
Replies: 14
Views: 1094

Re: S corp for physician

There are other additional savings for an S-corp, including having your company pay for health insurance & HSA, and potentially being able to put more into a Solo 401(k). These benefits can be substantial. This is largely another S-Corp myth. Health insurance premiums and HSA contributions are ...
by Spirit Rider
Mon Sep 26, 2016 1:13 pm
Forum: Personal Consumer Issues
Topic: Were these microwave oven potentially harmful?
Replies: 7
Views: 785

Re: Were these microwave oven potentially harmful?

As someone who spent years of my youth, months at a time 24/7 working, eating and sleeping in close proximity to a nuclear reactor and nuclear missile warheads on a submarine. A mantra was drilled into my head when it comes to ionizing radiation: Time, Distance and Shielding (TDS). One additional fa...
by Spirit Rider
Mon Sep 26, 2016 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Can I pay off the 1k of credit card balance this way?
Replies: 15
Views: 1243

Re: Can I pay off the 1k of credit card balance this way?

One other important thing about carrying a balance. You only get an interest grace period on charges when not carrying a balance. When you carry a balance, interest starts accruing as soon as the charge is posted to your account. This is true even if you pay off the entire balance in the next billin...
by Spirit Rider
Mon Sep 26, 2016 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 35
Views: 1255

Re: Best way to manage irrevocable trust?

With regard to tax-loss harvesting, do wash sale rules apply between my personal accounts and the trust? Since it has a different tax ID will it not matter if I am buying and selling the same investments in my own accounts and the trust? Do I just need to avoid wash sales within the trust itself? T...
by Spirit Rider
Mon Sep 26, 2016 9:40 am
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 35
Views: 1255

Re: Best way to manage irrevocable trust?

Since the trust is the beneficiary, the IRA distributions would have to go to the trust. Then the trust would distribute them to the ultimate beneficiary(s). Fidelity has automatic withdrawals of RMDs for Inherited IRAs with a Look Thru Trust as beneficiary(s). They can be on an annual, quarterly or...
by Spirit Rider
Mon Sep 26, 2016 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Best way to manage irrevocable trust?
Replies: 35
Views: 1255

Re: Best way to manage irrevocable trust?

Bruce will be the best source of this information, but I will give you a non-professionals take. First, an IRA like other retirement plan accounts is a trust in and of itself. 1. If an IRA is left to the trust, will the IRA then be inside the trust, or will just the income flow into the trust? I'm n...
by Spirit Rider
Sun Sep 25, 2016 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Does anybody here have a good credit score with no credit cards?
Replies: 16
Views: 1438

Re: Credit Score

I never knew my credit score until Discover card started showing it for free a couple or three years ago, and now see that my score typically ranges from 815 to 830. No idea why it changes, since we never owe money, are never late paying bills, and never carry a balance or apply for credit. You man...
by Spirit Rider
Sat Sep 24, 2016 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Best online bill payment service.
Replies: 30
Views: 1784

Re: Best online bill payment service.

Note: About 9/10ths of bill payment systems offered by banks use one of the four largest bill payment providers as a back end. With one, Fiserve (formerly CheckFree) servicing about 3/4ths. The bank/credut union may have their own front end, but everything could likely be the same vendor. The main o...
by Spirit Rider
Sat Sep 24, 2016 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Best online bill payment service.
Replies: 30
Views: 1784

Re: Best online bill payment service.

I don't think you need any. All credit cards, utilities, and insurance companies do this. The only checks are for lawn work and maid service. I think I have written 20 or 30 checks at most in a year. From decades of experience in billing nightmares and months of trying to get my money back, I don't...
by Spirit Rider
Sat Sep 24, 2016 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Stay a 1099 contractor or incorporate?
Replies: 18
Views: 1377

Re: Stay a 1099 contractor or incorporate?

I live in a state where payroll tax savings with an S-Corp are an illusion. We have no franchise tax and no personal income tax. However, we have a business profits tax. S-Corp distributions are considered as profits by the state. So you are in the situation of wages being tax free, but not distribu...
by Spirit Rider
Sat Sep 24, 2016 11:06 am
Forum: Investing - Help with Personal Investments
Topic: HSA: Investments
Replies: 20
Views: 1361

Re: HSA: Investments

http://healthequity.com/doclib/hsa_invest.pdf page 5, footnote 1. In the long term that wrap fee will take a significant bite out your balance. Certainly you will lose a 5 figure amount. It's not viable long term. When your balance gets bigger you need to find a different HSA for long term investin...
by Spirit Rider
Sat Sep 24, 2016 1:16 am
Forum: Investing - Help with Personal Investments
Topic: HSA: Investments
Replies: 20
Views: 1361

Re: HSA: Investments

http://healthequity.com/doclib/hsa_invest.pdf page 5, footnote 1. In the long term that wrap fee will take a significant bite out your balance. Certainly you will lose a 5 figure amount. It's not viable long term. When your balance gets bigger you need to find a different HSA for long term investin...
by Spirit Rider
Sat Sep 24, 2016 1:05 am
Forum: Personal Finance (Not Investing)
Topic: 3 month health insurance gap between jobs several questions
Replies: 9
Views: 827

Re: 3 month health insurance gap between jobs several questions

What is outlined in the post by peek is your best option. If you elect COBRA coverage within the 60 days after notice, you can delay payment for an additional 45 days. This gives you a put on coverage. You essentially have an option to exercise coverage only if your out-of-pocket expenses exceed the...
by Spirit Rider
Sat Sep 24, 2016 12:40 am
Forum: Personal Finance (Not Investing)
Topic: Question about using spouse's HSA
Replies: 9
Views: 598

Re: Question about using spouse's HSA

Thanks Spirit Rider. The only thing that confuses me is the scenario where spouse A dies and spouse B is the beneficiary of the HSA. It sounds like the HSA is now considered to belong to spouse B. I don't see how the IRS would allow spouse B to make tax free withdrawals to cover historical expenses...
by Spirit Rider
Fri Sep 23, 2016 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: Question about using spouse's HSA
Replies: 9
Views: 598

Re: Question about using spouse's HSA

from Pub 969 Death of HSA Holder You should choose a beneficiary when you set up your HSA. What happens to that HSA when you die depends on whom you designate as the beneficiary. Spouse is the designated beneficiary. If your spouse is the designated beneficiary of your HSA, it will be treated as yo...
by Spirit Rider
Fri Sep 23, 2016 7:52 pm
Forum: Investing - Theory, News & General
Topic: How can markets be efficient if home prices are higher in the spring?
Replies: 50
Views: 1745

Re: How can markets be efficient if home prices are higher in the spring?

You are confusing market efficiency with pricing. They are not the same thing. People make this mistake all the time with equity and bond markets. The Efficient Market Hypothisis is instead a simple theory. That the pricing of a security reflects all available public information. If you knew ahead o...
by Spirit Rider
Fri Sep 23, 2016 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Automobile in irrevocable trust to limit liability
Replies: 33
Views: 1688

Re: Automobile in irrevocable trust to limit liability

Also, it can be very difficult and more expensive to insure a vehicle in an irrevocable trust.
by Spirit Rider
Fri Sep 23, 2016 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Threshold for pre-notifying credit card companies?
Replies: 40
Views: 2439

Re: Threshold for pre-notifying credit card companies?

PS - the weird thing is that they sent me a text message saying they declined it but did I really intend to make it (yes/no). Of course I said yes but that was after they declined it. What's up with that? This does happen after the charge is declined, but responding yes will allow the charge to be ...
by Spirit Rider
Fri Sep 23, 2016 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Starting a small business- Tax questions
Replies: 8
Views: 688

Re: Starting a small business- Tax questions

An S-Corp for payroll tax savings ranks right up there with an LLC for liability protection as the most over-hyped oversold business structure. Yes, you can save on payroll taxes (15.3% total) on salaries below the SS max wage base (2016 = $118.5K). However, you are also losing out on SS earnings. T...
by Spirit Rider
Fri Sep 23, 2016 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Starting a small business- Tax questions
Replies: 8
Views: 688

Re: Starting a small business- Tax questions

1. You can not deduct startup costs this year for a business beginning next year. See IRS Publication 535, chapter 7, page 24 for allowed deductions and a reference to chapter 8, page 26-27 for amortizing the rest. Business Start-Up and Organizational Costs Business start-up and organizational costs...
by Spirit Rider
Fri Sep 23, 2016 8:24 am
Forum: Investing - Help with Personal Investments
Topic: HSA: Investments
Replies: 20
Views: 1361

Re: HSA: Investments

First question. Are you paying current expenses with HSA or investment only? If ever there was a case for a simple 3- fund portfolio, an HSA investment account would be it. Or, treat all asset locations as part of one portfolio and take advantage of that 0.02% ER for a single fund. Simplicity is you...
by Spirit Rider
Fri Sep 23, 2016 8:08 am
Forum: Personal Finance (Not Investing)
Topic: S corp for physician
Replies: 14
Views: 1094

Re: S corp for physician

The S-Corp owner's W-2 salary and distributions are both subject to ordinary income tax. No federal or state savings.
by Spirit Rider
Thu Sep 22, 2016 4:16 pm
Forum: Personal Consumer Issues
Topic: Companion Dogs for an older person
Replies: 40
Views: 2525

Re: Companion Dogs for an older person

It is a good idea to think about the safety of an elderly person around a dog. While many people worry about a larger dog knocking an elderly person over, It is much more common for a small dog to be busy around their feet and trip them. I have seen this latter scenario happen twice in last three ye...
by Spirit Rider
Thu Sep 22, 2016 4:08 pm
Forum: Investing - Help with Personal Investments
Topic: HCE 401k deferral advice
Replies: 10
Views: 525

Re: HCE 401k deferral advice

if yours is already at 3%, they should look into providing the safe harbor match, which maxes out at 4%. Then your company wouldn't have to worry about testing failure at year end. If you decide to bring it up, do it now. The safe harbor election for 2017 must be made no later than December 1, 2016...
by Spirit Rider
Thu Sep 22, 2016 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Stay a 1099 contractor or incorporate?
Replies: 18
Views: 1377

Re: Stay a 1099 contractor or incorporate?

An S-Corp allows you to to pay yourself a "reasonable salary" less than the net income of the business exclusive of employment costs. You do save yourself payroll tax costs (15.3% <= SS Max wage base). However, you are also reducing your SS earnings credit. If your Average Indexed Monthly ...
by Spirit Rider
Sun Sep 18, 2016 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: 529 distributions from a grandparent
Replies: 4
Views: 383

Re: 529 distributions from a grandparent

First determine if your 529 plan even allows transfer of ownership, many do not. 529 plans owned by either the student or parent are considered assets of the parent for FAFSA purposes. Parental assets are assessed at a maximum rate of 5.64% and distributions do not count as income to either the stud...
by Spirit Rider
Sun Sep 18, 2016 10:24 am
Forum: Investing - Help with Personal Investments
Topic: how to contribute 53k to 401(k) as employed doc?
Replies: 39
Views: 2393

Re: how to contribute 53k to 401(k) as employed doc?

No, the 35k was pretax Well I guess if the employer paid the tax , then it would be sort of pre-tax from your perspective Qualified employer retirement plan contributions are considered non-taxable fringe benefits. Therefore, they are deductible by the employer, thus pre-tax. This is why all employ...
by Spirit Rider
Sat Sep 17, 2016 10:30 pm
Forum: Investing - Help with Personal Investments
Topic: how to contribute 53k to 401(k) as employed doc?
Replies: 39
Views: 2393

Re: how to contribute 53k to 401(k) as employed doc?

First it must be an HSA qualified HDHP. There are HDHP plans that do not qualify. A company does not have to offer HSA accounts, but HSA contributions by payroll deduction are the only way for them to be payroll tax free. If your SS earnings are >= $118.5K, you HSA contributions will be subject to S...
by Spirit Rider
Sat Sep 17, 2016 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?
Replies: 12
Views: 878

Re: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?

I guess in my case, we wouldn't be able to have my HSA reimburse us for the employee share of our health insurance, if I'm paying for the insurance coverage for myself and wife and I'm under 65 and she's over 65, right? Hmmm, an interesting question. I have never seen this addressed before. The gui...
by Spirit Rider
Sat Sep 17, 2016 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: How do you calculate individual 401k contribution?
Replies: 7
Views: 728

Re: How do you calculate individual 401k contribution?

OK, great. It is generally better if you do not use the term salary in conjunction with a sole proprietor. W-2 employees receive wages/salaries, sole proprietors generally do not. A sole proprietor's full income is available as soon as they earn it. Even if you have a business bank account and trans...
by Spirit Rider
Sat Sep 17, 2016 11:54 am
Forum: Investing - Help with Personal Investments
Topic: how to contribute 53k to 401(k) as employed doc?
Replies: 39
Views: 2393

Re: how to contribute 53k to 401(k) as employed doc?

for those who are familiar with profit sharing plans like the OP may be describing: are they subject to ADP testing like 401(k) plans ? It is not clear that the OP has a "profit sharing plan". That is a particular type of qualified plan. However, if the plan or plans contain both elective...
by Spirit Rider
Sat Sep 17, 2016 1:01 am
Forum: Investing - Theory, News & General
Topic: Is Warren Buffett the ultimate free rider?
Replies: 23
Views: 3847

Re: Is Warren Buffett the ultimate free rider?

I know there is buying and selling from time to time in the companies that Berkshire Hathaway owns, but it strikes me that Warren Buffett probably has never sold any of the shares he personally owns in Berkshire Hathaway. Well, then whatever strikes you would probably be wrong. Warren Buffet has on...
by Spirit Rider
Sat Sep 17, 2016 12:32 am
Forum: Personal Finance (Not Investing)
Topic: 401k Limits
Replies: 4
Views: 513

Re: 401k Limits

Separate elective deferral and catch-up deferral allocations are a plan administrative creation. The IRS recognizes no such differentiation. The IRS considers all total deferrals up to your allowed deferral limit as elective deferrals. The IRS considers all total deferrals above your deferral limit ...
by Spirit Rider
Fri Sep 16, 2016 10:47 pm
Forum: Investing - Help with Personal Investments
Topic: No matching on Roth?
Replies: 60
Views: 2973

Re: No matching on Roth?

One question for the OP. Do you know if your plan matches only by payroll period or if they do a "true up" at the end of the year? If they "true up" and you could raise your traditional 401k contributions for three months to 16%, you could receive the full yearly match.
by Spirit Rider
Fri Sep 16, 2016 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: HSABank: How to withdraw money and reflect it in taxes?
Replies: 49
Views: 2488

Re: HSABank: How to withdraw money and reflect it in taxes?

My main reason is that I am converting traditional retirement accounts into Roth. Right now I am paying for conversions out of my taxable accounts, but eventually I will run out of taxable funds and start reducing my retirement funds. Roth is more flexible than HSA and it makes sense for me to use ...
by Spirit Rider
Fri Sep 16, 2016 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Is it typical to wait ~24 months for a meaningful/significant raise at work?
Replies: 45
Views: 3776

Re: Is it typical to wait ~24 months for a meaningful/significant raise at work?

If the employer match isn't vested, what happens to those 401k funds. Spouse left a few months ago and the funds seem to just be sitting there in the 401k. Typically, those funds sit there until the specified time period for rehire rights. Rehire rights allow you to resume your vesting period for n...
by Spirit Rider
Fri Sep 16, 2016 9:56 pm
Forum: Personal Finance (Not Investing)
Topic: How do you calculate individual 401k contribution?
Replies: 7
Views: 728

Re: How do you calculate individual 401k contribution?

This is the first year she has earned a salary from her "company ". What do you mean by this statement? Does she have an S-Corp paying herself W-2 wages? Or is she a sole proprietor "paying" herself a draw? How do you calculate how much "profit-sharing" I can contribut...
by Spirit Rider
Fri Sep 16, 2016 9:39 pm
Forum: Investing - Help with Personal Investments
Topic: how to contribute 53k to 401(k) as employed doc?
Replies: 39
Views: 2393

Re: how to contribute 53k to 401(k) as employed doc?

Thanks Spirit. I thought I might be getting hung up in semantics. The partner who was trying to explain the plan to me earlier didn't know what it was called. Do you typically maintain the same investments in both portions? The determination of where contributions can go is determined by the plan. ...
by Spirit Rider
Fri Sep 16, 2016 8:46 pm
Forum: Investing - Help with Personal Investments
Topic: how to contribute 53k to 401(k) as employed doc?
Replies: 39
Views: 2393

Re: how to contribute 53k to 401(k) as employed doc?

Ray- if employee contributions are not allowed in these plans, how are we then contributing 18k per year? Is it essentially a 401k PLUS a profit sharing plan? It is a problem of semantics/terminology. True profit sharing plans only have employer contributions. up to 25% of compensation limited to $...
by Spirit Rider
Fri Sep 16, 2016 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?
Replies: 12
Views: 878

Re: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?

Anything that is out-of-pocket for qualified medical expenses, prescriptions, vision/dental care, etc... It does not matter if it is completely out-of-pocket, deductible, co-pay or co-insurance. If it is a qualified expense and it was not reimbursed, then it is eligible for tax-free distribution wh...
by Spirit Rider
Fri Sep 16, 2016 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: how to contribute 53k to 401(k) as employed doc?
Replies: 39
Views: 2393

Re: how to contribute 53k to 401(k) as employed doc?

Thanks guys. I will talk to group and report back. Other group just got back to me and said that I contribute 18k and they contribute the rest up to 53k. This sounds too good to be true. What am I missing here? Are they effectively giving me 35k a year? My taxable income will only be reduced by 18k...
by Spirit Rider
Fri Sep 16, 2016 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?
Replies: 12
Views: 878

Re: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?

and as long as the medical expense was incurred after the HSA account was opened, it does not matter how late the HSA account owner withdraws the money from the HSA account, correct? Correct. For example, you have had an HSA for 10 years and didn't realize you could reimburse for spouse and/or depe...
by Spirit Rider
Fri Sep 16, 2016 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?
Replies: 12
Views: 878

Re: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?

1. HSA funds can always be used for a spouse and/or dependent for un-reimbursed qualified medical expenses . what are common examples of un-reimbursed qualified medical expenses ? copays for doctor visists? copays for medication)? amounts paid as deductible in the HDHP? Anything that is out-of-pock...
by Spirit Rider
Fri Sep 16, 2016 1:00 am
Forum: Investing - Help with Personal Investments
Topic: Switching from i401k to traditional 401k
Replies: 7
Views: 403

Re: Switching from i401k to traditional 401k

If each equity stake is at least 5% then the C-Corp can have one individual 401k plan and each owner-employee an account under that plan. Once you have an eligible non-owner employee (<= 5% owner), you must amend your plan. If the four principals want to continue the ability to use the full employee...
by Spirit Rider
Fri Sep 16, 2016 12:29 am
Forum: Personal Finance (Not Investing)
Topic: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?
Replies: 12
Views: 878

Re: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?

1. HSA funds can always be used for a spouse and/or dependent for un-reimbursed qualified medical expenses. This is retroactive to the date of first account opening regardless if they are/were covered under an HSA at any point in time. 2. Standard eligibility for HSA contributions are pro-rated. Thi...
by Spirit Rider
Tue Sep 13, 2016 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: News About Medicare Supplement Changes
Replies: 19
Views: 1452

Re: News About Medicare Supplement Changes

drawpoker wrote:Mel, I take it you are not yet of Medicare age?

I hope my sarcasm filter is broken, because otherwise I'm sure Mel is getting quite the chuckle. Just let's say that when Moses was a little boy, Mel was teaching the virtues of I-Bonds
by Spirit Rider
Tue Sep 13, 2016 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: No health insurance - please help.
Replies: 24
Views: 2080

Re: No health insurance - please help.

To follow up on drawpoker's reply, you might not be out of luck. If you lost your job in June, was your employer coverage continued until the end of June? If this was true, your two payments would likely have been for July and August COBRA coverage. Insurance companies usually cancel coverage if you...
by Spirit Rider
Tue Sep 13, 2016 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: SEP IRA Scorp Over Contribution for Sept 15 return
Replies: 1
Views: 137

Re: SEP IRA Scorp Over Contribution for Sept 15 return

I made my 10,000 SEP IRA contribution in August 2015 for my 2014 return with extension. My self employment/Scorp W2 was 16000 So 25% of 16000 = 4000 max contribution Which means my excess is 6000 So, with W2 of 31500 for 2015, 25% is $7875 for the max contribution Subtracting excess of 6000 from th...
by Spirit Rider
Tue Sep 13, 2016 1:06 am
Forum: Personal Finance (Not Investing)
Topic: Key Bank screwed up my HSA now IRS is after me - Advice needed
Replies: 6
Views: 1257

Re: Key Bank screwed up my HSA now IRS is after me - Advice needed

Actually, it is possible that the IRS may be wrong here (it wouldn't be the first time). A 5498-SA reports contributions for the year in which the contributions were actually made . Not the tax year they were for. If you made $2000 in contributions in 2014 for the 2014 tax year and $1300 in contribu...

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