Search found 5630 matches

by Spirit Rider
Sat Jul 22, 2017 8:18 am
Forum: Investing - Help with Personal Investments
Topic: Choosing asset allocation for young children
Replies: 3
Views: 316

Re: Choosing asset allocation for young children

As usual, I am going to go against conventional wisdom here. If part of your goal is investment education, understand your risk tolerance is not their risk tolerance. They do not have your long-term perspective. You could be one massive correction away from novice investors being scared away from eq...
by Spirit Rider
Sat Jul 22, 2017 7:47 am
Forum: Investing - Help with Personal Investments
Topic: Planning 529 Distributions
Replies: 25
Views: 1150

Re: Planning 529 Distributions

A better source for all things 529 is IRS Publication 970 Tax Benefits for Education In this case, Chapter 8 Qualified Tuition Program (QTP), Page 60, Additional Tax on Taxable Distributions, 3(a). This is also where you will find the reference that non-qualified distributions are taxable to the dis...
by Spirit Rider
Fri Jul 21, 2017 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: Planning 529 Distributions
Replies: 25
Views: 1150

Re: Planning 529 Distributions

Contrary to my experience and statement, current Publication 970 examples for non-qualified distributions to or on the behalf of the beneficiary are taxable to that beneficiary. that would be consistent with the idea of a 529 as a completed gift to the beneficiary. My highlighted statement might be...
by Spirit Rider
Fri Jul 21, 2017 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: Planning 529 Distributions
Replies: 25
Views: 1150

Re: Planning 529 Distributions

Non-qualified 529 distributions are always taxable income to the account owner, regardless of who the distribution goes to. The beneficiaries marginal tax rate is irrelevant unless it is a UTMA 529 account. Not asking you to do my Google work for me, but would you happen to know of a good online re...
by Spirit Rider
Fri Jul 21, 2017 9:20 am
Forum: Investing - Help with Personal Investments
Topic: Planning 529 Distributions
Replies: 25
Views: 1150

Re: Planning 529 Distributions

Will the taxes be at the account owner's tax rate, or the beneficiary's tax rate? Or does it simply depend on who we request the distribution checks be made out to? Also, consider when your kids graduate and how much of a gap until they start working or what their first incomes might be. If the mon...
by Spirit Rider
Fri Jul 21, 2017 9:00 am
Forum: Personal Consumer Issues
Topic: Why does State Farm have poor reviews?
Replies: 31
Views: 2572

Re: Why does State Farm have poor reviews?

One thing you need to understand is that State Farm is a multitude of independently operating subsidies. This is why people's claims experience varies widely. So you really need to make sure the reviews apply to your state/actual state farm company. State Farm and/or one of their subsidies has proba...
by Spirit Rider
Fri Jul 21, 2017 12:12 am
Forum: Investing - Help with Personal Investments
Topic: ibond purchases on treasurydirect
Replies: 10
Views: 835

Re: ibond purchases on treasurydirect

And if you prefer to store the information locally there is the Savings Bond Wizard
by Spirit Rider
Thu Jul 20, 2017 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: *** ALERT Individual 401k Form 5500-EZ filings (if necessary) due by 7/31
Replies: 10
Views: 831

Re: *** ALERT Individual 401k Form 5500-EZ filings (if necessary) due by 7/31

Ok, cool, thanks. I suppose I'll wait and see how fidelity handles the statement once I'm over $250k. Although it's possible they already send them and I just didn't pay it too much attention since I knew I didn't need to file it yet. Look online under your tax forms. You should see a Form 5000 AVS...
by Spirit Rider
Thu Jul 20, 2017 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: After-tax contributions to Vanguard managed 401k
Replies: 8
Views: 493

Re: After-tax contributions to Vanguard managed 401k

Even if my company gave 100% match to 18k, doesn't the 53k limit suggest after-tax dollars are an option? Just because after-tax contributions are allowed by the IRS does not mean they are required. It's up to your employer to decide what 401k options its plan will have. Roth 401k contributions are...
by Spirit Rider
Thu Jul 20, 2017 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: COBRA For 1 Month (?)
Replies: 11
Views: 501

Re: COBRA For 1 Month (?)

Even before the elimination of pre-existing condition restrictions in the ACA. HIPPA allowed a gap of up to 63 days before pre-existing condition restrictions could apply.
by Spirit Rider
Thu Jul 20, 2017 9:19 pm
Forum: Investing - Help with Personal Investments
Topic: move US Savings Bonds to Vanguard
Replies: 8
Views: 614

Re: move US Savings Bonds to Vanguard

Thesaints wrote:1998 + 30 = 2028. We are in 2017, so that makes it another 10 years of joy.

Yes, but you said this in your previous post and that is why stats99 corrected you.

Thesaints wrote:I bonds were introduced in 2008
by Spirit Rider
Thu Jul 20, 2017 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: COBRA For 1 Month (?)
Replies: 11
Views: 501

Re: COBRA For 1 Month (?)

You have 60 days to elect COBRA coverage, starting on the later of the date you are furnished the election notice or the date you would lose coverage. Then after you elect coverage, you have 45 days until you must pay the premiums. There is no reason to elect coverage really early just to rely on th...
by Spirit Rider
Thu Jul 20, 2017 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K match or Should I set up normal 401k?
Replies: 14
Views: 777

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 Spirit Rider
Thu Jul 20, 2017 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling OLD employer account into solo 401K. Good/Bad Idea?
Replies: 4
Views: 409

Re: Rolling OLD employer account into solo 401K. Good/Bad Idea?

Only downside is extra reporting requirements once you reach a certain balance. What are these reporting requirements, when do they kick in? Can you pl elaborate? I'm thinking of doing something with my old employer's 401k as well. When a one-participant 401k year end balance >= $250K, a Form 5500-...
by Spirit Rider
Thu Jul 20, 2017 6:12 pm
Forum: Personal Consumer Issues
Topic: Cheap eggs... how bad?
Replies: 82
Views: 6123

Re: Cheap eggs... how bad?

I'm surprised with all this talk about eggs, nobody has mentioned balut. It has quite a bit more protein than your normal egg and are guaranteed to always be farm fresh, well at least fresh from the 14 to 21 day incubation period. https://en.wikipedia.org/wiki/Balut_(food) Somehow, I'm thinking tho...
by Spirit Rider
Thu Jul 20, 2017 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 vs. W2 for MD
Replies: 6
Views: 624

Re: 1099 vs. W2 for MD

Disability insurance premiums for 1099 individual contractors are never deductible regardless if self-employed or S-Corp shareholder-employee. Therefore, benefits are always tax-free.
by Spirit Rider
Thu Jul 20, 2017 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: *** ALERT Individual 401k Form 5500-EZ filings (if necessary) due by 7/31
Replies: 10
Views: 831

Re: *** ALERT Individual 401k Form 5500-EZ filings (if necessary) due by 7/31

Sorry, I wasn't clear. I understand it's not a personal tax filing, I'm just wondering if there's any reason not to just take care of it at the same time while in "tax mode" so you don't have to worry about keeping track of the deadline later in the year? Is there some kind of information...
by Spirit Rider
Thu Jul 20, 2017 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: *** ALERT Individual 401k Form 5500-EZ filings (if necessary) due by 7/31
Replies: 10
Views: 831

Re: *** ALERT Individual 401k Form 5500-EZ filings (if necessary) due by 7/31

terran wrote:Question: When the time comes is it acceptable, and is there any reason not to just file it when you do the rest of your taxes?

This is not a personal income tax filing.

You file this as the Administrator of the plan to a different address.
by Spirit Rider
Thu Jul 20, 2017 8:30 am
Forum: Personal Finance (Not Investing)
Topic: *** ALERT Individual 401k Form 5500-EZ filings (if necessary) due by 7/31
Replies: 10
Views: 831

Re: *** ALERT Individual 401k Form 5500-EZ filings (if necessary) due by 7/31

I should add that regardless of the one-participant 401k balance, a final Form 5500-EZ is required after terminating the plan. In this case the filing deadline is the last day of the 7th month after all assets have been withdrawn/rolled over.
by Spirit Rider
Wed Jul 19, 2017 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 vs. W2 for MD
Replies: 6
Views: 624

Re: 1099 vs. W2 for MD

Health, dental, vision insurance premiums and possibly HSA contributions are deductible, but disability and life insurance premiums are not. If you have an S-Corp, the deductions paid by the Corp can be exempt from FICA. 20% is no where near enough of a hourly rate premium for 1099 over W-2. Conside...
by Spirit Rider
Wed Jul 19, 2017 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: Withdraw taxable contribution from traditional IRA
Replies: 4
Views: 234

Re: Withdraw taxable contribution from traditional IRA

The earnings will just be reported as income subject to your marginal tax rate and the 10% penalty is just on the amount of earnings. The best way to make sure you don't have any tax liability for the Backdoor Roth is to do a tax-free conversion of the non-deductible traditional IRA contribution to ...
by Spirit Rider
Wed Jul 19, 2017 5:16 pm
Forum: Personal Consumer Issues
Topic: Senior Lifetime National Parks Pass Fee Going Up
Replies: 68
Views: 9026

Re: Senior Lifetime National Parks Pass Fee Going Up

I actually talked to the person in charge of processing mail-in applications at USGS in April. They were getting slammed with applications, with the volume > 10 times higher. She said it might have been nice when the bill was passed at the end of last year, that they provided authorization for addit...
by Spirit Rider
Wed Jul 19, 2017 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Must file late 5500-Ez - is this DIY?
Replies: 22
Views: 1515

Re: Must file late 5500-Ez - is this DIY?

Glad it worked out. How do you know that it's required? A Form 5500-EZ filing is required for a one-participant 401k (Individual, Self-Employed, Solo, etc...) when the year end balance is >= $250K. The filing deadline for 2016 is July 31, 2017 . Time for a PSA. Thank you. I will reach out to Vangua...
by Spirit Rider
Wed Jul 19, 2017 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: Withdraw taxable contribution from traditional IRA
Replies: 4
Views: 234

Re: Withdraw taxable contribution from traditional IRA

Yes, you can ask for a return of contribution and earnings. However, the earnings will be taxable and subject to the 10% penalty for early withdrawal. You stated that you were over the income limit for the IRA deduction. However, if you are under the limit for Roth IRA contributions, you should rech...
by Spirit Rider
Wed Jul 19, 2017 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 821

Re: Solo 401k contribution limits (CPA confused! So I am too help)

Not much to add, really, except any Box 1 compensation is eligible for a 25 percent employer match ( but not an employee deferral , to my understanding.) Good luck. Actually, both one-participant 401k employee deferrals and employer contributions are based on total compensation. For an S-Corp share...
by Spirit Rider
Wed Jul 19, 2017 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: *** ALERT Individual 401k Form 5500-EZ filings (if necessary) due by 7/31
Replies: 10
Views: 831

*** ALERT Individual 401k Form 5500-EZ filings (if necessary) due by 7/31

Since we had a recent thread from a member, and many plan sponsors can be unaware of this requirement, I feel it important to raise this alert. For those members with a one-participant 401k (Individual, Self-Employed, Solo, etc...) and a year end balance is >= $250K . Your Form 5500-EZ is required b...
by Spirit Rider
Wed Jul 19, 2017 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Must file late 5500-Ez - is this DIY?
Replies: 22
Views: 1515

Re: Must file late 5500-Ez - is this DIY?

nepats wrote:Glad it worked out. How do you know that it's required?

A Form 5500-EZ filing is required for a one-participant 401k (Individual, Self-Employed, Solo, etc...) when the year end balance is >= $250K.

The filing deadline for 2016 is July 31, 2017. Time for a PSA.
by Spirit Rider
Wed Jul 19, 2017 3:33 pm
Forum: Personal Consumer Issues
Topic: Senior Lifetime National Parks Pass Fee Going Up
Replies: 68
Views: 9026

Re: Senior Lifetime National Parks Pass Fee Going Up

Be aware that many places to obtain the Senior Pass in person are already out of stock and that is before AARP sends a notice of this closer than expected deadline.

If your nearest place is a bit of a drive, call ahead to see if they have them in stock before wasting a trip.
by Spirit Rider
Wed Jul 19, 2017 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 821

Re: Solo 401k contribution limits (CPA confused! So I am too help)

Spirit Rider can you post a link to the IRC on that section? Publication 560 Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans) Search for Limits on Contributions and Benefits , Chapter 4, Page 15. 26 U.S. Code § 415 - Limitations on benefits and contribution under qualified pla...
by Spirit Rider
Tue Jul 18, 2017 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: Roll over old 401k to IRA or new employer Profit-Sharing plan (small business)?
Replies: 2
Views: 134

Re: Roll over old 401k to IRA or new employer Profit-Sharing plan (small business)?

Ascensus is the 22nd largest TPA by assets, 7th by number of plans and is actually the administrator for Vanguard's small business plan. However, what matters is what the plan investment options are and what fees the participants are subject to. These are controlled by the employer and it sounds lik...
by Spirit Rider
Tue Jul 18, 2017 8:48 pm
Forum: Personal Consumer Issues
Topic: Senior Lifetime National Parks Pass Fee Going Up
Replies: 68
Views: 9026

Re: Senior Lifetime National Parks Pass Fee Going Up

This post reminds me that SO applied for a Senior Lifetime NP Pass, but he can't remember if he has received it yet :oops: How long does it typically take for an application to get processsed and for one to receive the pass? I don't recall exactly but I think it is a couple of weeks. Thank you. Now...
by Spirit Rider
Tue Jul 18, 2017 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: Solo-401k options if no after-tax contributions in Wife's 401k?
Replies: 9
Views: 547

Re: Solo-401k options if no after-tax contributions in Wife's 401k?

You don't generally need to maintain cost basis for a 401k plan. You may have to separate earnings/contributions/distributions on an annual basis, but that's an easy calculation for solo(k)s. Wouldn't we need cost basis to know how much earnings are based on Roth contributions and how many are pre-...
by Spirit Rider
Tue Jul 18, 2017 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 821

Re: Solo 401k contribution limits (CPA confused! So I am too help)

Page 2 of Vanguard's iSolo401k plan kit: The total amount contributed (by employer and employee) can’t exceed the annual additions limit ( $53,000 for 2016; $59,000 for participants age 50 or older using the catch-up contribution) or 100% of compensation. So Spirit Rider VG literature does not outl...
by Spirit Rider
Tue Jul 18, 2017 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 821

Re: Solo 401k contribution limits (CPA confused! So I am too help)

Sorry if this is rather long and involved, but it is very often necessary when finding the correct answers. Ok, so here are what I believe are references to this issue. First, the catchup contribution itself is limited by the employee deferral + catchup contribution not exceeding compensation. Which...
by Spirit Rider
Tue Jul 18, 2017 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 821

Re: Solo 401k contribution limits (CPA confused! So I am too help)

I am going to put a caution to wait for verification of my statements on the application of the 415(c)(A) 100% compensation and 415(c)(B) 2017 = $54K.
by Spirit Rider
Tue Jul 18, 2017 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 821

Re: Solo 401k contribution limits (CPA confused! So I am too help)

Spirit Rider that is very tricky! It does not reflect on any of the calculators (including bankrate which also spits out $1988) but I see your reasoning here! If this is the case I bet many are calculating incorrectly. (as an aside I do hate the idea of not being able to trust the calculators!) I h...
by Spirit Rider
Tue Jul 18, 2017 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 821

Re: Solo 401k contribution limits (CPA confused! So I am too help)

But spirit rider since I've already made the salary deferral of $24,000, if the cap is employer + employee wouldn't that make $6497 over the cap? You have not made a $24,000 employee deferral. You have made an $18,000 employee deferral and a $6,000 employee catch-up. The $6,000 catch-up contributio...
by Spirit Rider
Tue Jul 18, 2017 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 821

Re: Solo 401k contribution limits (CPA confused! So I am too help)

It is a little tricky, so this is probably why one CPA got this wrong, For a W-2 employee the maximum employer contribution is 25% of their compensation. Your husband's compensation would be $25,988. So the nominal maximum calculated employer contribution $25,998 * 0.25 = $6,497. 26 U.S. Code Sectio...
by Spirit Rider
Tue Jul 18, 2017 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity interest rates
Replies: 20
Views: 1981

Re: Fidelity interest rates

I use Fidelity as my main checking account and generally have one month or less of expenses there. In my cash management account I use SPRXX -- Fidelity Money Market. The current yield is 0.96%. . Hmm, so if I put my entire cash management account (which is sitting in cash) into SPRXX, when I write...
by Spirit Rider
Tue Jul 18, 2017 12:23 am
Forum: Personal Finance (Not Investing)
Topic: To 529 or not for better Financial Aid
Replies: 17
Views: 1183

Re: To 529 or not for better Financial Aid

Home equity is not counted by FAFSA, but it is counted to a varying degree by CSS Profile and Consensus 568 schools. Some schools using the profile do not assess home equity, some cap it at 1.2 to 2.4 times AGI, and some do not cap at all. The assessment is usually 5% of the capped amount, less any ...
by Spirit Rider
Mon Jul 17, 2017 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Health Savings Account and "Last Month Rule"
Replies: 19
Views: 1593

Re: Health Savings Account and "Last Month Rule"

If you choose to make a 12-month contribution, the "gift" carries with it a risk. You must maintain a HDHP plan for 12 months. If you don't, you'll owe a tax and penalty. There is just a 10% penalty, the contributions stay in the account and there is no tax. There is tax in the year you f...
by Spirit Rider
Mon Jul 17, 2017 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: Health Savings Account and "Last Month Rule"
Replies: 19
Views: 1593

Re: Health Savings Account and "Last Month Rule"

If you choose to make a 12-month contribution, the "gift" carries with it a risk. You must maintain a HDHP plan for 12 months. If you don't, you'll owe a tax and penalty. There is just a 10% penalty, the contributions stay in the account and there is no tax. Yes, I dealt with this. Since ...
by Spirit Rider
Mon Jul 17, 2017 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Health Savings Account and "Last Month Rule"
Replies: 19
Views: 1593

Re: Health Savings Account and "Last Month Rule"

$4K is still $4K. Where else do you get a tax deduction and then likely free tax distributions. Vanguard does not have an HSA account. They used to co-market a plan from Health Savings Administrators which uses Vanguard funds. I don't see it even mentioned on their site anymore, but Health Savings A...
by Spirit Rider
Mon Jul 17, 2017 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Health Savings Account and "Last Month Rule"
Replies: 19
Views: 1593

Re: Health Savings Account and "Last Month Rule"

If you have a spouse over 55, that spouse can also make a $1,000 catch-up contribution, but it must be by direct contribution to their own account. So the total could be $8,750. You would be better off making the contribution by payroll deduction, because such contributions would be exempt from the ...
by Spirit Rider
Mon Jul 17, 2017 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity interest rates
Replies: 20
Views: 1981

Re: Fidelity interest rates

In my cash management account I use SPRXX -- Fidelity Money Market. The current yield is 0.96%. They liquidate it at the end of each day to reconcile debits in the account. Isn't the FDIC-insured deposit sweep account your core position for the cash account? How do you get an automatic draw from SP...
by Spirit Rider
Mon Jul 17, 2017 11:14 am
Forum: Investing - Help with Personal Investments
Topic: Basic Question on I bonds
Replies: 11
Views: 1058

Re: Basic Question on I bonds

You can cash in I-Bonds after 1 year, but you must give up 3 months interest unless you have held them for 5 years. As mentioned, the rate changes every 6 months from the month you purchased them. And, you can effectively get back 2 of those 3 months by purchasing I Bonds at the end of the month, a...
by Spirit Rider
Mon Jul 17, 2017 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Health Savings Account and "Last Month Rule"
Replies: 19
Views: 1593

Re: Health Savings Account and "Last Month Rule"

You understand the rule correctly. You need to stay enrolled through 2018. Keep in mind you have until April 2018 to make the contribution to top off the 2017 amount. Thanks. This does make the decision harder. The consequences of a testing failure are that you must pay a 10% penalty on the amount ...
by Spirit Rider
Mon Jul 17, 2017 7:46 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401K match or Should I set up normal 401k?
Replies: 14
Views: 777

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

To answer the other question you had about adding employees later. The IRS allows you to restrict 401k eligiblity to those; with >= 1 year of service with >= 1,000 hours/year and those >= age 21. You just select this in the adoption agreement, making sure to grandfather current employees (you and yo...
by Spirit Rider
Mon Jul 17, 2017 7:26 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401K match or Should I set up normal 401k?
Replies: 14
Views: 777

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

The 401k deferral can only be met after other mandatory deductions (income tax witholding, FICA, etc...). However, this should not be a problem if you are making the full 25% PS contribution. As I said, the minimum salary would need to be $22.5K. The 415c requirement must be met even though the empl...
by Spirit Rider
Sun Jul 16, 2017 11:53 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K match or Should I set up normal 401k?
Replies: 14
Views: 777

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. Actually, it needs to be a little more than you might expect because of the employer contribution. If ...

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