Search found 5340 matches

by Spirit Rider
Wed May 24, 2017 5:43 pm
Forum: Investing - Theory, News & General
Topic: 529 Questions. Double tax breaks?
Replies: 7
Views: 867

Re: 529 Questions. Double tax breaks?

If a grandparent were to use the 529 account only to pay for the final year in college, then the income rule would not make any difference, since the student will not be applying for financial aid for the following year. Starting with the 2017/2018 school year, FAFSA uses the prior-prior tax year. ...
by Spirit Rider
Wed May 24, 2017 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: Verifying IRS expectations on Inherited IRA
Replies: 20
Views: 900

Re: Verifying IRS expectations on Inherited IRA

Maybe I will have her ask them if she is a "successor beneficiary" or a "primary beneficiary". Maybe it is just a case of a failure to retitle it and she is the primary beneficary. There were two separate 1099 entries on her 2016 taxes. One with her father's name and one with he...
by Spirit Rider
Wed May 24, 2017 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: Private Practice 401k
Replies: 2
Views: 183

Re: Private Practice 401k

A 401k plan must not discriminate against any employee. So any option that is available to one employee must be available to all employees. The determination of what is allowed is based on the plan document. Some small plans do allow individual investment only retirement accounts at a custodian of c...
by Spirit Rider
Wed May 24, 2017 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity customer protection guarantee-void if you use Mint?
Replies: 38
Views: 2550

Re: Fidelity customer protection guarantee-void if you use Mint?

I read that as saying that if you use Mint (or any of these services that require your username and password), that could be grounds for voiding their customer protection guarantee. I think you are reading something into that which is not there. They would then also have to void people using Fideli...
by Spirit Rider
Wed May 24, 2017 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: IRA to 401K rollover + Backdoor IRA in same year
Replies: 9
Views: 474

Re: IRA to 401K rollover + Backdoor IRA in same year

All your pre-tax IRA balances are treated as one. Otherwise read my previous post. It is that straightforward.
by Spirit Rider
Wed May 24, 2017 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Verifying IRS expectations on Inherited IRA
Replies: 20
Views: 900

Re: Verifying IRS expectations on Inherited IRA

First the IRS enforcement mechanism is that there is a 50% penalty for any missed RMD amounts. That should be incentive enough for people to follow the rules. Although, the IRS has seemed very willing to waive the penalty if you self report and there is reasonable cause for the mistake. You need you...
by Spirit Rider
Wed May 24, 2017 10:33 am
Forum: Investing - Help with Personal Investments
Topic: IRA to 401K rollover + Backdoor IRA in same year
Replies: 9
Views: 474

Re: IRA to 401K rollover + Backdoor IRA in same year

All that is necessary for an effective backdoor Roth IRA contribution is for there to be little to no pre-tax balance in all of your IRA accounts (traditional, SEP and SIMPLE) on 12/31.

The order is not important, but doing the rollover first ensures that it has been successful.
by Spirit Rider
Wed May 24, 2017 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Verifying IRS expectations on Inherited IRA
Replies: 20
Views: 900

Re: Verifying IRS expectations on Inherited IRA

On a "standard" IRA, there is a Form 54 2 9 8 that is issued every May that tells the owner what the expected RMD was supposed to be. No, the 5498 just specifies the year end balance. A non-spouse beneficiary must start taking RMDs in the year following the year of death. Is there a metho...
by Spirit Rider
Wed May 24, 2017 9:45 am
Forum: Investing - Help with Personal Investments
Topic: First attending level job but no 401k offered. What are the options?
Replies: 14
Views: 1277

Re: First attending level job but no 401k offered. What are the options?

Can you set yourself up as an independent contractor in the group and set up your own retirement plan? WhiteCoat Investor as a post about his setup. Be careful. The definition of "employee" is not linked to what one would like from a tax point of view. That may be true in the abstract, bu...
by Spirit Rider
Tue May 23, 2017 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: Medigap Insurance Plans
Replies: 25
Views: 1867

Re: Medigap Insurance Plans

There are three classes of medical providers: ⋅ Participating provider accepting assignment: This provider will accept all Medicare direct payment amounts. You will only be subject to deductibles, co-insurance and co-payments subject to your Medigap plan if any. ⋅ Non-participati...
by Spirit Rider
Tue May 23, 2017 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Best 401k for small companies?
Replies: 7
Views: 419

Re: Best 401k for small companies?

I see people all the time on here saying they have a "Vanguard" or a "Fidelity" 401k plan and why are the investment options so expensive. Don't fall into the trap. Most of these plans are run by an investment advisor or Third Party Administrator. Vanguard, Fidlelity, etc... are ...
by Spirit Rider
Tue May 23, 2017 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: First attending level job but no 401k offered. What are the options?
Replies: 14
Views: 1277

Re: First attending level job but no 401k offered. What are the options?

There are really two issues here. The costs of administering the 401k plan and the employer contribution costs of enabling the Highly Compensated Employees (HCEs) to maximize their contributions. The former as pointed out by brother7 is there are decent low cost small business 401k providers such as...
by Spirit Rider
Tue May 23, 2017 5:55 pm
Forum: Investing - Theory, News & General
Topic: 529 Questions. Double tax breaks?
Replies: 7
Views: 867

Re: 529 Questions. Double tax breaks?

Your plan is sound. Qualified Education Expenses are not reduced by gifts. You would be allowed to withdraw tax free, all qualified (tuition, fees, text books, room and board, computer equipment, etc...) expenses from a 529 plan. You need to have proof of the expenses and payments to make qualified ...
by Spirit Rider
Tue May 23, 2017 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k questions
Replies: 8
Views: 341

Re: Solo 401k questions

I believe the total limit is $54K. It would all be tax deferred. Typically monthly would be the safest just to ensure you don't contribute too much, but this is a case where it sounds like there is no danger of overcontributing, so you could do an immediate lump sum. No, there is a significant dang...
by Spirit Rider
Fri May 19, 2017 9:14 am
Forum: Personal Finance (Not Investing)
Topic: Husband-Wife Partnership IRA limits
Replies: 6
Views: 583

Re: Husband-Wife Partnership IRA limits

No, I am not a professional and like others here, am just a reasonably knowledgeable individual. It is generally better to not use PM's unless necessary. This forum has many willing to help, other eyes help to correct any mistakes and oversights and topics can inform others than the OP.. If you have...
by Spirit Rider
Thu May 18, 2017 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: Husband-Wife Partnership IRA limits
Replies: 6
Views: 583

Re: Husband-Wife Partnership IRA limits

The max employer contribution is 20% of net self-employment income for each of you. You can not each get 20% on the same income. If the business as a whole has $100K (+ a little for 1/2 SE tax) in net business profit such that you each have a pro-rated $50K in net self-employment income (net busines...
by Spirit Rider
Thu May 18, 2017 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: IRS says I owe..I don't
Replies: 31
Views: 4006

Re: IRS says I owe..I don't

Did you have any pre-tax IRA balances (traditional, SEP IRA or SIMPLE IRA)? All IRA accounts are treated as one. Any pre-tax balances would be included in pro-rata Roth conversions. Did you properly complete Form 8606 to report your $13K in non-deductible contributions and showing no/minimal tax lia...
by Spirit Rider
Thu May 18, 2017 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need a LLC to Do Consulting Work
Replies: 20
Views: 2054

Re: Do I need a LLC to Do Consulting Work

In some industries, the companies only want to contract with an LLC or Corporation for consulting services to ease the risks on their end. This was the case for a friend of mine that did consulting for several years. That has been my experience too. Organizing as a Corp or LLC will make things much...
by Spirit Rider
Wed May 17, 2017 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI Calculation with SCorp / SEP
Replies: 2
Views: 235

Re: MAGI Calculation with SCorp / SEP

With an S-Corp, employer retirement plan contributions are a deduction of the corporation. I assume that your $26K S-Corp ordinary business income reflects this. Your MAGI = Wife (62,000 - 18,000) + Husband (100,000) + SCorp profit (26,000) = $170,000. If you are worrying about your MAGI, why are yo...
by Spirit Rider
Wed May 17, 2017 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: HSA contribution limits for case of death of spouse
Replies: 5
Views: 418

Re: HSA contribution limits for case of death of spouse

I generally agree with Artful Dodger. The deceased individual would cease to be an HSA eligible individual upon their death. Their HSA catch-up contribution limit would be prorated to 4/12 of $1,000. The pro-rated family/individual plan contribution limit would be based when the actual coverage chan...
by Spirit Rider
Wed May 17, 2017 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: Qualified Joint Venture Retirement Options
Replies: 9
Views: 461

Re: Qualified Joint Venture Retirement Options

You would have several issues starting mid-year that would probably require professional advice. Unfortunately, I'm not that confident you could find someone who fully understands qualified joint ventures and business retirement plans. Let alone in combination and with a partial year. Even though qu...
by Spirit Rider
Wed May 17, 2017 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Qualified Joint Venture Retirement Options
Replies: 9
Views: 461

Re: Qualified Joint Venture Retirement Options

Have you already made SEP IRA contributions for this tax year?
by Spirit Rider
Wed May 17, 2017 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Mini Milestone 100K
Replies: 19
Views: 1536

Re: Mini Milestone 100K

Congrats! I remember reading somewhere that once you hit around the 100K mark is when you really start to see compounding interest work for you. This is why I don't like arbitrary dollar amounts. This is a behavioral finance issue. The amount of your portfolio has no bearing on the return. It is ju...
by Spirit Rider
Wed May 17, 2017 8:05 am
Forum: Investing - Help with Personal Investments
Topic: Mini Milestone 100K
Replies: 19
Views: 1536

Re: Mini Milestone 100K

I know I will sound like a broken record to some, but you are a fairly new BH so you get to hear it at least once. Arbitrary dollar amounts are not good milestones, because individual circumstances vary widely. A number of zeros might feel good, but the better yardstick is a multiplier of your gross...
by Spirit Rider
Wed May 17, 2017 7:46 am
Forum: Investing - Help with Personal Investments
Topic: Made tIRA contribution for 2017 but now have 401K
Replies: 6
Views: 478

Re: Made tIRA contribution for 2017 but now have 401K

Consider getting a different accountant. This should be IRA 101 for an accountant. Thanks, it takes him a while but he usually researches things and then comes up with a definitive answer. It's a small town and I'm his first solo 401k. I prefer someone who researches and is willing to change his mi...
by Spirit Rider
Tue May 16, 2017 9:09 pm
Forum: Personal Consumer Issues
Topic: Cheshire County New Hampshire: Which town for retirement?
Replies: 14
Views: 1389

Re: Cheshire County New Hampshire: Which town for retirement?

My parents.moved to Gilsum in the early 70s. It is a tiny town just north of Keene of only several hundred people (then and now 40 years later). I only lived their for a year before joining the Navy, but here is my impression. Keene is the only area with any substantial population. if you can call i...
by Spirit Rider
Tue May 16, 2017 7:03 pm
Forum: Investing - Help with Personal Investments
Topic: Made tIRA contribution for 2017 but now have 401K
Replies: 6
Views: 478

Re: Made tIRA contribution for 2017 but now have 401K

Anyone can make a traditional IRA contribution. Your MAGI just determines how much of it is deductible if you are an active participant in an employer retirement plan such as a one-participant 401k. If some or all is not deductible due to MAGI, just recharacterize that amount to a Roth after the end...
by Spirit Rider
Tue May 16, 2017 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: How to get funds in and then out of a Roth tax free after 5 years?
Replies: 15
Views: 1247

Re: How to get funds in and then out of a Roth tax free after 5 years?

You also need to be aware that some one-participant 401k plans do not allow any in-service rollovers prior to age 59 1/2. With these plans you would need to terminate the 401k, roll over the pre-tax assets to a traditional IRA and do your Roth IRA ladder from there. Another option might be to amend ...
by Spirit Rider
Tue May 16, 2017 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: Qualified Joint Venture Retirement Options
Replies: 9
Views: 461

Re: Qualified Joint Venture Retirement Options

P.S. She does not need to perform 50% of the services to receive 50% of the income. Refer to the rules on "material participation". There are categories of participation where 100 hours or more easily justified 500 hours of participation. To qualify, they must engage in an activity that th...
by Spirit Rider
Tue May 16, 2017 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Qualified Joint Venture Retirement Options
Replies: 9
Views: 461

Re: Qualified Joint Venture Retirement Options

You would need the qualified joint venture to adopt a one-participant 401k plan. Then both of you can open 401k accounts under that plan. You will each need to receive the exact same employer contribution rate. This will be a maximum of 20% of your individual net self-employment income = proportiona...
by Spirit Rider
Mon May 15, 2017 7:03 pm
Forum: Investing - Theory, News & General
Topic: Obtaining 2 Roth IRAs
Replies: 12
Views: 836

Re: Obtaining 2 Roth IRAs

You state that your mom has a traditional IRA. If she is maxing that out, no Roth IRA could be made. The IRA contribution limit applies to the total of all (traditional + Roth) IRA contributions.

Also, a gift is just that. Without regards to any quid pro quo. Plus it is just plain creepy.
by Spirit Rider
Mon May 15, 2017 10:05 am
Forum: Personal Consumer Issues
Topic: Tipping for restaurants where you order at the counter
Replies: 49
Views: 4426

Re: Tipping for restaurants where you order at the counter

mak1277 wrote:The real question is...if you have an issue that results in part/all of the meal being comp'd by the restaurant, how do you tip?

Was it the wait staff's fault? If not, why would you punish them for something beyond their control.
by Spirit Rider
Mon May 15, 2017 10:02 am
Forum: Personal Consumer Issues
Topic: Tipping for restaurants where you order at the counter
Replies: 49
Views: 4426

Re: Tipping for restaurants where you order at the counter

I agree with you ... but one of the most illogical aspects of our tipping system is that is tied to the price of the meal. A server in a cheap diner is doing the same amount of work as a server in an expensive restaurant, where the price of the meal (and the tip) may be 5x the cost. That is why for...
by Spirit Rider
Sun May 14, 2017 1:02 pm
Forum: Investing - Help with Personal Investments
Topic: AA for 529
Replies: 20
Views: 1153

Re: AA for 529

To me "fully funded" does not mean you have reached some abstract feel good number, rather that you have fully funded your savings rate to your retirement plan. Let's say you have determined in your retirement plan that a 20% savings rate will meet your retirement age/lifestyle goals. If y...
by Spirit Rider
Sun May 14, 2017 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: HDHP with HSA in Teachers' Contract
Replies: 6
Views: 469

Re: HDHP with HSA in Teachers' Contract

1. Deductible of $2000/$4000. District to pay $1000 towards deductible . 2. Max out of pocket is $4000/$8000. 3. 80/20 copayment after deductible. This is probably just imprecise terminology, but be very sure this is an HSA contribution and not a reimbursement before the minimum deductible ($1300/$...
by Spirit Rider
Sat May 13, 2017 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: schedule c for single owner llc
Replies: 7
Views: 631

Re: schedule c for single owner llc

Silk McCue:

Did you not read my quote of the 2016 Schedule C, Line D instructions.

This has changed for 2016. You most definitely now use the LLC's EIN.
by Spirit Rider
Sat May 13, 2017 11:40 am
Forum: Investing - Theory, News & General
Topic: Does trade execution speed matter?
Replies: 15
Views: 1528

Re: Does trade execution speed matter?

There are differences in execution. Facts not in evidence: ⋅ Fidelity will be better than ML (what is the circumstances/metric?). ⋅ Fidelity rep misinformed (What is the context). Perspective: Does it matter for most people? Probably not. Observation: If trading costs matter, you...
by Spirit Rider
Sat May 13, 2017 11:18 am
Forum: Investing - Help with Personal Investments
Topic: Do I have to file Form 4868 for extension of Solo 401k contribution deadline?
Replies: 5
Views: 246

Re: Do I have to file Form 4868 for extension of Solo 401k contribution deadline?

I thought solo401k contributions had to be made by 12/31 unlike IRAContributions? This is only true for for employee deferrals of 401k W-2 employees. In the context of a one-participant 401k plan this only applies to shareholder-employees of S or C corporations. The self-employed have until the tax...
by Spirit Rider
Sat May 13, 2017 8:27 am
Forum: Investing - Help with Personal Investments
Topic: Do I have to file Form 4868 for extension of Solo 401k contribution deadline?
Replies: 5
Views: 246

Re: Do I have to file Form 4868 for extension of Solo 401k contribution deadline?

You needed to have filed the extension by the tax filing deadline 4/18/17, to extend the contribution deadline 10/16/17.

Once you file the extension, your contribution deadline is extended by six months. This true no matter when you file, even if you file before the tax filing deadline.
by Spirit Rider
Sat May 13, 2017 8:06 am
Forum: Personal Finance (Not Investing)
Topic: schedule c for single owner llc
Replies: 7
Views: 631

Re: schedule c for single owner llc

ok so I am confused from the reply sorry, I might have mistyped 2016 as 201, but it should been clear that the last paragraph was about 2016. as a single owner LLC, do I enter my company EIN or just use my SSN? The 2016 Schedule C Line D instructions are very clear. Follow them based on your circum...
by Spirit Rider
Fri May 12, 2017 10:38 pm
Forum: Personal Finance (Not Investing)
Topic: Can I open a spousal i401K just for a rollover?
Replies: 6
Views: 446

Re: Can I open a spousal i401K just for a rollover?

I imagine that you would need to prove to the plan administrator that you are genuinely self-employed and open the account with your self employment income before you could do the rollover since it wasn't already in a self-employment retirement plan. Otherwise everyone and their brother who has mon...
by Spirit Rider
Fri May 12, 2017 12:23 am
Forum: Investing - Help with Personal Investments
Topic: Nonqualified Deferred Compensation distributions
Replies: 13
Views: 779

Re: Nonqualified Deferred Compensation distributions

Qualified retirement plans can not be taxed by source states. Be aware that certain NQDC plans can be taxed by source states, especially if the distribution period < 10 years. Last I knew there were only a handful of source states in the Northeast. So if you earn the NQDC in one of the source states...
by Spirit Rider
Tue May 09, 2017 11:14 pm
Forum: Personal Finance (Not Investing)
Topic: How to be an executor
Replies: 16
Views: 1589

Re: How to be an executor

Jim gave a pretty good basic summary of the steps involved with probate. However, the executors/beneficiary(ies) should be aware that many things are not estate assets and transfer completely outside of probate and are generally not subject to creditors: ⋅ Any assets already in the trust a...
by Spirit Rider
Mon May 08, 2017 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Does it make sense for a young adult to liquidate an Inherited IRA sooner than later?
Replies: 20
Views: 1221

Re: Does it make sense for a young adult to liquidate an Inherited IRA sooner than later?

If this was an inherited qualified plan, it would be possible to do a direct trustee-trustee Roth conversion to an inherited Roth IRA. You just can not convert an Inherited IRA to a Inherited Roth IRA and Roth IRA contributions must be in cash. The distribution from an Inherited IRA to a taxable ac...
by Spirit Rider
Mon May 08, 2017 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Does it make sense for a young adult to liquidate an Inherited IRA sooner than later?
Replies: 20
Views: 1221

Re: Does it make sense for a young adult to liquidate an Inherited IRA sooner than later?

If this was an inherited qualified plan, it would be possible to do a direct trustee-trustee Roth conversion to an inherited Roth IRA. You just can not convert an Inherited IRA to a Inherited Roth IRA and Roth IRA contributions must be in cash. The distribution from an Inherited IRA to a taxable acc...
by Spirit Rider
Sat May 06, 2017 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: 401k match true-up counts for which year?
Replies: 3
Views: 294

Re: 401k match true-up counts for which year?

You should calculate your after-tax contributions such that there is room for the true-up match. I'm not sure how the company is supposed to handle the case of a true-up match after the end of the year that would cause an excess annual addition. I would think that they should not allow the excess an...
by Spirit Rider
Sat May 06, 2017 11:44 am
Forum: Personal Finance (Not Investing)
Topic: 401k match true-up counts for which year?
Replies: 3
Views: 294

Re: 401k match true-up counts for which year?

The tax year. In this case 2016
by Spirit Rider
Sat May 06, 2017 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Detailed explanation of income for Solo 401 k
Replies: 28
Views: 911

Re: Detailed explanation of income for Solo 401 k

The OP didn't tell us exactly what the figures were for both him and his spouse. If you wanted to take maximum advantage of employer contributions for the spouse you would pay $24K, with an $18K employee deferral and a $6K employer contribution. To pay all this lest us bump up net income before wage...
by Spirit Rider
Sat May 06, 2017 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Detailed explanation of income for Solo 401 k
Replies: 28
Views: 911

Re: Detailed explanation of income for Solo 401 k

I don't think so. Someone will need to correct me if I'm wrong, but I believe that SEP-IRA contributions are reported as a reduction of income on the 1040, whereas S-corp Solo 401k contributions are reported via a reduction of W-2 Box 1 income (employee contribution) and as a business expense on 11...
by Spirit Rider
Sat May 06, 2017 1:24 am
Forum: Investing - Help with Personal Investments
Topic: Small Company Retirement Plan Options
Replies: 5
Views: 510

Re: Small Company Retirement Plan Options

The problem isn't the type of retirement plan. It is the outrageous fees. 160bps of $1M is $16,000 which is a ridiculous amount. I hate to think what the investment options are in that plan. There is no reason why DW can't find a plan administrator who can provide a 401k plan for no more than a few ...

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