Search found 4748 matches

by Spirit Rider
Mon Feb 27, 2017 11:03 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k / Backdoor Roth question
Replies: 2
Views: 140

Re: Solo 401k / Backdoor Roth question

I don't mind rolling the Roth IRA over to Fidelity as well, but I thought I had read somewhere that they don't do Roth rollovers . I think you must be confusing Roth Rollovers with the fact that Fidelity doesn't offer Roth designated accounts in their Solo 401k. With that said, you have a very spec...
by Spirit Rider
Mon Feb 27, 2017 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k options - available investments
Replies: 10
Views: 648

Re: Solo 401k options - available investments

The only downside is that we have to mail in a paper check to fund the account (no electronic transfers) but it's not a huge deal to us. In case you didn't notice the last bullet from my previous post, I will repeat it. Fidelity normally requires check for contribution, but you can open cash manage...
by Spirit Rider
Mon Feb 27, 2017 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: Simple IRA employee quit
Replies: 6
Views: 549

Re: Simple IRA employee quit

The 2 year period is per individual, not the plan. It begins on the date of first contribution, employee or employer. So the separating employee with only eight months would be subject to the 25% penalty if they withdrew the SIMPLE IRA or tried to roll it over to anything other than another SIMPLE ...
by Spirit Rider
Mon Feb 27, 2017 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Simple IRA employee quit
Replies: 6
Views: 549

Re: Simple IRA employee quit

Remember there can be no end of year requirement. You must still match the employee's deferrals or make the non-elective contribution on their compensation up to their date of separation. The 2 year period is per individual, not the plan. It begins on the date of first contribution, employee or empl...
by Spirit Rider
Sun Feb 26, 2017 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Closed HSA but Reopen within 18 Months... Sufficient?
Replies: 13
Views: 740

Re: Closed HSA but Reopen within 18 Months... Sufficient?

I realize you really want to make this contribution by payroll deduction, but you should stop trying to read something into the answer of Q-81 that isn't there. Clause (1) is clearly referring to health plans sponsored by that employer, not the HSA. They are responsible for determining your eligibil...
by Spirit Rider
Sun Feb 26, 2017 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: How much are independent contractors really taxed?
Replies: 43
Views: 2265

Re: How much are independent contractors really taxed?

This last few posts highlights why the OP is asking the wrong question. The difference in taxation between an employee and am independent contractor is a red herring. The only real difference is the employer's share of FICA (7.65% maximum) is paid as part of the SE tax. ... This usually amounts to ...
by Spirit Rider
Sun Feb 26, 2017 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Open new SEP-IRA other than established one?
Replies: 2
Views: 140

Re: Open new SEP-IRA other than established one?

The practice's SARSEP advisor should definitely know better and this is one more example of the decline of Vanguard's customer service. A partner of a partnership is an owner-employee and must be covered under the partnership's SAR SEP as an employee . Unless they own <= 10% in which case they are c...
by Spirit Rider
Sun Feb 26, 2017 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: How much are independent contractors really taxed?
Replies: 43
Views: 2265

Re: How much are independent contractors really taxed?

This last few posts highlights why the OP is asking the wrong question. The difference in taxation between an employee and am independent contractor is a red herring. The only real difference is the employer's share of FICA (7.65% maximum) is paid as part of the SE tax. Employee benefits are the rea...
by Spirit Rider
Sun Feb 26, 2017 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Multiple 401K rules small business
Replies: 1
Views: 160

Re: Multiple 401K rules small business

There should be no problem with taking advantage of a retirement plan from a truly unrelated business. There can be complex Controlled Group and Affiliated Service Group rules if there is common ownership and or common business interests. Note: Attribution rules can bring businesses owned by certain...
by Spirit Rider
Sun Feb 26, 2017 12:38 am
Forum: Personal Finance (Not Investing)
Topic: Inactive LLC and individual 401k
Replies: 4
Views: 368

Re: Inactive LLC and individual 401k

I'm interested in the answer (I don't know it). But as an alternative, could you re-activate the LLC once every 5 years, so your average cost goes down to $20/year? Or is there an additional cost to re-activate it? At least in my state, you have to pay all unpaid annual report fees and a 50% penalt...
by Spirit Rider
Sun Feb 26, 2017 12:36 am
Forum: Personal Finance (Not Investing)
Topic: Inactive LLC and individual 401k
Replies: 4
Views: 368

Re: Inactive LLC and individual 401k

A one-participant 401k is first and foremost a 401k subject to the vast majority of 401k laws, regulations and guidance. A 401k is intended to be a semi-permanent employer retirement plan. No employer, no justification for the plan. So if you terminate the business, the plan must be terminated. If t...
by Spirit Rider
Sat Feb 25, 2017 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: What Amount of My Bonds Should Be I Bonds?
Replies: 10
Views: 1129

Re: What Amount of My Bonds Should Be I Bonds?

Remember I Bonds mature in 30 years. This should not be a major consideration when used as part of emergency funds or short term savings, but should for long term investing. That should really be considered into whether and how much they should factor into your overall bond allocation. You generally...
by Spirit Rider
Sat Feb 25, 2017 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: Simple IRA Options
Replies: 4
Views: 288

Re: Simple IRA Options

The other negative to this option is that the expense ratio for the money market account is .38 which seems high. I wouldn't want to actually lose money waiting to transfer funds from AF to VG. Perhaps I'm over-thinking this since the funds wouldn't be in the account for very long. ?? Also, while w...
by Spirit Rider
Sat Feb 25, 2017 3:09 pm
Forum: Investing - Theory, News & General
Topic: Options For 8 Employee 401k Bogle Friendly
Replies: 4
Views: 393

Re: Options For 8 Employee 401k Bogle Friendly

They could also consider http://www.employeefiduciary.com . Employee Fiduciary has been the most well known and best recommended small business 401k provider on BH. Their startup costs are $500, administrative costs are $1500/year for up to 30 employees ($30/additional employee) and a 0.08% AUM fee...
by Spirit Rider
Sat Feb 25, 2017 2:41 pm
Forum: Investing - Theory, News & General
Topic: Please vote on the wisest decision
Replies: 49
Views: 2781

Re: Please vote on the wisest decision

If you were to contribute the unused portion of the Roth space that you were allocating to saving for a down payment to a MyRA account. It would earn more than an online savings account (currently 2.375%) tax free. Yes, it is not much and you would have to leave the earnings in, but it is still bett...
by Spirit Rider
Sat Feb 25, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Closed HSA but Reopen within 18 Months... Sufficient?
Replies: 13
Views: 740

Re: Closed HSA but Reopen within 18 Months... Sufficient?

I'm not sure I entirely comprehend that paragraph from Spirit Rider. What I mean is: - Both my wife and I are covered by a high-deductible health plan (we're both covered by her plan) - Neither of us have any other health coverage, including Medicare - Neither of us are claimed as dependents on any...
by Spirit Rider
Sat Feb 25, 2017 10:36 am
Forum: Investing - Help with Personal Investments
Topic: 401k AA - no Total Market Fund option
Replies: 15
Views: 745

Re: 401k AA - no Total Market Fund option

Using a system of equations y= H x and solving for X while minimizing the error.... VINIX has a style box of: 28 31 28 05 05 03 00 00 00 VEXMX has style box of: 00 01 03 12 13 21 16 18 17 Using matrix math and least mean squares fit I came up with: VINIX 82.8% VEXMX 17.2% Morningstar shows that com...
by Spirit Rider
Sat Feb 25, 2017 9:33 am
Forum: Investing - Help with Personal Investments
Topic: "Borrow" $5500 from Emergency Fund to Qualify for Vanguard Admiral?
Replies: 31
Views: 3546

Re: "Borrow" $5500 from Emergency Fund to Qualify for Vanguard Admiral?

Are you or will you be deployed in combat zone, receive hazardous duty pay or involved in contingency operations? You probably have an even greater reason to use and replenish your emergency fund. You absolutely should be participating in the Savings Deposit Program (SDP). This program allows those ...
by Spirit Rider
Sat Feb 25, 2017 8:35 am
Forum: Investing - Theory, News & General
Topic: Please vote on the wisest decision
Replies: 49
Views: 2781

Re: Please vote on the wisest decision

Can't you do Roth and 401k? I can, but can't maximize both of them, may be after I am done saving for my first home down payment.. This statement does not make any sense! You can save your down payment in your Roth IRA. You can withdraw your Roth IRA contribution any time without penalty. Some folk...
by Spirit Rider
Fri Feb 24, 2017 11:58 pm
Forum: Personal Finance (Not Investing)
Topic: Closed HSA but Reopen within 18 Months... Sufficient?
Replies: 13
Views: 740

Re: Closed HSA but Reopen within 18 Months... Sufficient?

Qualified distributions are based on the individual being eligible at time of service. So you can not make a qualified distribution for your now wife before she was your wife. I'm curious how you come up with that interpretation. Pub 969 really isn't that specific. What it does say is: Qualified me...
by Spirit Rider
Fri Feb 24, 2017 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Selling inherited stocks question, cost basis??
Replies: 10
Views: 686

Re: Selling inherited stocks question, cost basis??

Someone feel free to correct me, but I think it's the average of the high and low share price on the date of death for the per share basis. Also, whenever you sell it's treated as a long term gain/loss. For your date acquired just put inherited on the tax form....Going through this now. That is cor...
by Spirit Rider
Fri Feb 24, 2017 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Closed HSA but Reopen within 18 Months... Sufficient?
Replies: 13
Views: 740

Re: Closed HSA but Reopen within 18 Months... Sufficient?

There is no requirement to reopen the closed HSA account. All that matters to maintain the original date of opening, is to have less than a 18 month period when you had a $0 balance in any and all HSA accounts. The answer is very simple and straightforward. Example 1, specifically states that the in...
by Spirit Rider
Fri Feb 24, 2017 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: Stay at home wife 401k question
Replies: 13
Views: 516

Re: Stay at home wife 401k question

If This is only going to be $1K or $2K a year it probably isn't worth it. The only reason it might be nice to a have a Solo 401k plan is if in the future she ends having W-2 employment depositing into an IRA based retirement plan (SEP IRA/SIMPLE IRA). If that is the case it might be nice to have a v...
by Spirit Rider
Fri Feb 24, 2017 11:08 am
Forum: Investing - Help with Personal Investments
Topic: How to save for retirement after maxing out 401k and IRA?
Replies: 7
Views: 683

Re: How to save for retirement after maxing out 401k and IRA?

At your ages annuities do not make sense. Her are some major deficiencies of an annuity: ⋅ It creates additional expenses ⋅ It locks up your money ⋅ Surrender Fee periods when changing custodians ⋅ 10% penalty for early distribution < 59 1/2 ⋅ It sub...
by Spirit Rider
Thu Feb 23, 2017 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: How to help a friendly business with office space?
Replies: 23
Views: 1276

Re: How to help a friendly business with office space?

That's one of the downsides of leasing/renting in general as your rates might go up each year. I've never signed a lease for less than three years. If your rates are going up every year, get a longer lease. In many markets it is not unusual for long term leases to have built-in escalators. I was in...
by Spirit Rider
Thu Feb 23, 2017 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: retired but thinking about value of self-employed income
Replies: 13
Views: 738

Re: retired but thinking about value of self-employed income

Health insurance premiums are a deduction against self employment income. So are LTC insurance premiums. https://www.irs.gov/uac/newsroom/dont-miss-the-health-insurance-deduction-if-youre-self-employed Here is the key quote from that link. There are also some rules that apply to how the insurance p...
by Spirit Rider
Thu Feb 23, 2017 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: retired but thinking about value of self-employed income
Replies: 13
Views: 738

Re: retired but thinking about value of self-employed income

Regarding the premium deduction .... Having trouble seeing what line this would be placed on schedule C. How does line 29 of 1040 play into this? It is not a deduction of the business. It can not go on Schedule C. It is a personal self-employed health insurance deduction reported on Form 1040 line ...
by Spirit Rider
Thu Feb 23, 2017 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: Wife discoverd UTMA account; Never received 1099s; Parents want it back
Replies: 21
Views: 2286

Re: Wife discoverd UTMA account; Never received 1099s; Parents want it back

Regrettably, this thread has comments that aren't germane. UTMA/UGMA accounts don't "shield anything". The parents are responsible for taxes on income from the account, because of the rule that requires parents to pay taxes at their rates, even on investments that belong to their children...
by Spirit Rider
Thu Feb 23, 2017 10:19 am
Forum: Investing - Help with Personal Investments
Topic: Tax Question - Custodial Inherited IRA
Replies: 7
Views: 226

Re: Tax Question - Custodial Inherited IRA

Interesting question. I think the answer might be yes, but... The IRS has issued several Private Letter Rulings (PLRs) on being able to deduct wraps fees for IRAs provided the fee is paid by outside funds. Of course, it is deducted on Schedule A subject to the 2% floor. These PLRs are all based off ...
by Spirit Rider
Thu Feb 23, 2017 8:25 am
Forum: Investing - Help with Personal Investments
Topic: Contribute additional $10k to 403b to convert $10k to Roth?
Replies: 5
Views: 359

Re: Contribute additional $10k to 403b to convert $10k to Roth?

Build up the taxable balance to pay taxes on Roth conversions in retirement, if that's even necessary. No need to convert unless RMDs push you into the 25% tax bracket. You are missing the point. The $10K tax deferred contribution plus the $10K taxable Roth conversion cancel each other out. This is...
by Spirit Rider
Thu Feb 23, 2017 8:07 am
Forum: Investing - Help with Personal Investments
Topic: Do companies match after-tax 401k contributions?
Replies: 32
Views: 1669

Re: Do companies match after-tax 401k contributions?

That said, the only thing I really have in the cobwebs of my mind about tracking IRA funds is if you ever want to roll the funds INTO another 401k, it is easiest if rollover and contributed amounts are not co-mingled, or else you have to do more math. This can apply to tIRA, but I don't believe it ...
by Spirit Rider
Thu Feb 23, 2017 1:13 am
Forum: Personal Finance (Not Investing)
Topic: How to help a friendly business with office space?
Replies: 23
Views: 1276

Re: How to help a friendly business with office space?

Is there a good way to help a small business that needs office space but doesn't have its own cash reserves to purchase an office building ~$1million? Why would a business buy an office building? My businesses have never bought an office building. Why would they want to get into real estate instead...
by Spirit Rider
Wed Feb 22, 2017 11:31 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Contribution limit + Rollover
Replies: 3
Views: 294

Re: IRA Contribution limit + Rollover

The IRA contribution limit is just that, a limit on contributions. The amount and type of rollover(s) have no impact on contributions. The probable reason the rollover chart does not cover after-tax 401k rollovers is because their volume is quite low compared to the others. Also, it is only since IR...
by Spirit Rider
Wed Feb 22, 2017 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Splitting HSA Contributions (Form 8889 Line 6)
Replies: 4
Views: 247

Re: Splitting HSA Contributions (Form 8889 Line 6)

I replied to your post on irahelp.com, but you did not seem to understand my reply. So I will try again here on the major question you are asking. As I stated, there is no difference in tax treatment regardless who the family contribution is allocated to when you file jointly. Note: When your employ...
by Spirit Rider
Tue Feb 21, 2017 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: Good Advice from Fidelity?
Replies: 7
Views: 1131

Re: Bad Advice from Fidelity?

This is your third post in the last three days covering essentially the same issues. Summarizing the most constructive replies from the posts and adding my thoughts: ⋅ If your husband does not have and will not have W-2 employees anytime soon, he should open a Solo 401k. If he does not hav...
by Spirit Rider
Tue Feb 21, 2017 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Excess Deferrals in 401(K) in 2016. How to correctly file taxes now?
Replies: 7
Views: 384

Re: Excess Deferrals in 401(K) in 2016. How to correctly file taxes now?

The W-2 does not get corrected if the excess deferral was returned in the following year (2017). The W-2 would only reflect the return of the excess deferral if the return occurred during the deferral year (2016). Since the excess was returned in 2017, You add the excess deferral amount to your 2016...
by Spirit Rider
Tue Feb 21, 2017 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Non-Roth After-Tax 401(k) to Roth IRA / Reverse Rollover / Taxes
Replies: 6
Views: 405

Re: Non-Roth After-Tax 401(k) to Roth IRA / Reverse Rollover / Taxes

If you want to keep no pre-tax traditional IRA assets and you will have after-tax earnings. You should first rollover your after-tax contributions to a Roth IRA and the pre-tax earnings to the rollover IRA. Then you can rollover all pre-tax traditional IRA assets to the 401k. This will have no impac...
by Spirit Rider
Tue Feb 21, 2017 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Just received a UGMA in the form of a variable annuity…cash it out, or keep it?
Replies: 26
Views: 1111

Re: Just received a UGMA in the form of a variable annuity…cash it out, or keep it?

It was a gift to you in the year the account was opened. Since then it has been YOUR money although your mom was the custodian while you were a minor. I hope there weren't any tax implications up to now and if there were, who paid those taxes? That is one benefit of a non-qualified annuity. It is s...
by Spirit Rider
Mon Feb 20, 2017 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: Just received a UGMA in the form of a variable annuity…cash it out, or keep it?
Replies: 26
Views: 1111

Re: Just received a UGMA in the form of a variable annuity…cash it out, or keep it?

I don't know if I would cash it out. The $11,000 gain would be taxed at ordinary income tax rates and subject to a 10% penalty. Since there are no surrender fees, I would consider doing a 1035 exchange to a low cost variable annuity provider (Vanguard, Fidelity, etc...). Then keep it as a retirement...
by Spirit Rider
Mon Feb 20, 2017 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Tax reporting question (box 12d code: W)
Replies: 3
Views: 324

Re: HSA Tax reporting question (box 12d code: W)

My W-2 lists a code "W" with an amount of $6,739.98 in box 12d. Code "W" has the short description of, "Employer contributions to Health Savings Account". Which only a portion of this amount agrees with. Both employer contributions and employer contributions by payroll...
by Spirit Rider
Mon Feb 20, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Roll-over IRA
Replies: 13
Views: 654

Re: Roll-over IRA

Hey Bob, I'll try to give you a useful answer rather than an undeserved flaming :) I don't consider my post to be flaming at all. Rather a reminder that these are individual accounts and language matters. We have had posts on Bogleheads where the OP was not aware of the fact that you could not roll...
by Spirit Rider
Mon Feb 20, 2017 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: How to decisively determine HCE status
Replies: 27
Views: 1593

Re: How to decisively determine HCE status

I think some might be confusing what is happening here. There are three 401k employee deferral limits: ⋅ The 402g maximum employee deferral limit (2017 = $18K) ⋅ IRS regulations allow up to 100% of compensation. Companies can and some do place plan contribution percentage limits....
by Spirit Rider
Mon Feb 20, 2017 11:18 am
Forum: Personal Finance (Not Investing)
Topic: How to decisively determine HCE status
Replies: 27
Views: 1593

Re: How to decisively determine HCE status

(1) Is the person HCE for 2017 based on income in 2016? A company can choose to use the prior year compensation, but few do so. Most plans use the current year which is not known until after 12/31. For a definitive answer you probably need to contact HR or the plan administrator. Although a hint of...
by Spirit Rider
Mon Feb 20, 2017 10:33 am
Forum: Investing - Help with Personal Investments
Topic: SEP IRA Help
Replies: 2
Views: 160

Re: SEP IRA Help

I'm a little confused about SEP IRA rules. My husband owns a small business & we file as a sole proprietor. He has 2 employees that only work part time/seasonly. They receive a 1099 for an independent contractor. Assuming they are properly classified as independent contractor and shouldn't real...
by Spirit Rider
Sun Feb 19, 2017 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: Excess IRA contribution
Replies: 10
Views: 455

Re: Excess IRA contribution

You cannot apply contributions back to 2015. You also do not have an excess contribution, you just have an amount that you can contribute but you cannot deduct. You cannot leave the 45 in the TIRA and assign it toward your 2017 contribution because it is not an excess contribution. It makes sense n...
by Spirit Rider
Sun Feb 19, 2017 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: General thoughts on maxing HSA's
Replies: 9
Views: 921

Re: General thoughts on maxing HSA's

What you left out is that if the beneficiary is your spouse, the HSA becomes their own with all the rights thereof. You should really look long term at an HSA exactly like to as it appears short term. It is really a retirement medical expense account not a retirement vehicle. Yes, it can be used aft...
by Spirit Rider
Sun Feb 19, 2017 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: Excess IRA contribution
Replies: 10
Views: 455

Re: Excess IRA contribution

You generally have two choices with an excess IRA contribution. You can either remove the excess contribution or leave it in and pay a 6% excise tax. You have util your tax filing deadline to remove the excess contribution. You ask the IRA provider to remove the excess contribution and earnings. The...
by Spirit Rider
Sun Feb 19, 2017 9:56 am
Forum: Investing - Help with Personal Investments
Topic: 403a questions
Replies: 1
Views: 133

Re: 403a questions

1) This is not an easy answer. Do you have any tax-free retirement assets at this time. It is useful to have some tax-free assets during retirement. This allows you to adjust your income during various periods for more than just marginal tax rates (phase outs, cliffs, IRMAA, < 65 medical insurance, ...
by Spirit Rider
Sat Feb 18, 2017 1:26 pm
Forum: Investing - Help with Personal Investments
Topic: Sep ira with pre tax or after tax money?
Replies: 3
Views: 217

Re: "Roth SEP IRA"???

Normally, only pre-tax employer contributions are made to a SEP IRA. That is you take a deduction on Form 1040 line 28, as that is the goal. Then when converting SEP IRA assets to a Roth IRA on Form 8606, both contributions and earnings would be taxable. This is how I always viewed the SEP IRA -> Ro...
by Spirit Rider
Fri Feb 17, 2017 11:54 pm
Forum: Investing - Help with Personal Investments
Topic: How important is 401k/403b's greater protection against creditors?
Replies: 15
Views: 897

Re: How important is 401k/403b's greater protection against creditors?

Retirement plans covered by ERISA do provide the highest degree of asset protection. However, you should be aware of the fact, that most 403b plans are not covered by ERISA.

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