Search found 4173 matches

by Spirit Rider
Fri Dec 09, 2016 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: Optimizing Inherited IRA RMDs
Replies: 6
Views: 382

Re: Optimizing Inherited IRA RMDs

One thing you can do is reduce the growth in the RMDs, by reducing the growth in the balance. This not a flip answer. What it means, is look at your portfolio in total. Then optimise the asset location to the degree it is possible. Generally, you would want your highest earning most tax efficient as...
by Spirit Rider
Fri Dec 09, 2016 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Maximizing Social Security Payouts
Replies: 11
Views: 816

Re: Maximizing Social Security Payouts

To update for 2017. The 2017 SS maximum wage base: $127,200. The PIA calculation from AIME for someone claiming benefits in 2017: 90% $0 - $885, 32% $885 - $5,336, and 15% > $5,336
by Spirit Rider
Fri Dec 09, 2016 9:35 am
Forum: Investing - Help with Personal Investments
Topic: HSA - is keeping 40 years of medical records practical?
Replies: 57
Views: 2475

Re: HSA - is keeping 40 years of medical records practical?

Consider a "minimize the noise" strategy for HSA reimbursements. Immediately reimburse for expenses less than $100 and save the receipts for the others. This greatly reduces the need to retain receipts for things like reading glasses, first aid supplies, qualified ongoing expenses, many la...
by Spirit Rider
Fri Dec 09, 2016 9:24 am
Forum: Investing - Theory, News & General
Topic: Why not have an Emergency Fund in your Roth...(for those who can't max out anyways)
Replies: 22
Views: 2070

Re: Why not have an Emergency Fund in your Roth...(for those who can't max out anyways)

I'm not familiar with the program, and thought contributions had to come put of paychecks (undesirable complication). You can fund it via a bank transfer. Your confusion may be based on the fact, as originally conceived MyRA was intended for those individuals who lacked a retirement plan at work. I...
by Spirit Rider
Thu Dec 08, 2016 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: Wife is losing 401k...what to do???
Replies: 13
Views: 1810

Re: Wife is losing 401k...what to do???

No she can not uses the W-2 income from the other employer, she can only contribute from the 1099 income to a solo 401k.
by Spirit Rider
Thu Dec 08, 2016 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: Is son's taxable income high enough to contribute to Roth after maxing out 401k?
Replies: 10
Views: 843

Re: Is son's taxable income high enough to contribute to Roth after maxing out 401k?

But this was not accurate for my son's 2015 W-2. His wages box 1 already has the nonqualified plan amount deducted from it. If I follow Mr. Thomas's direction and deduct box 12 nonqualified plans again, I would be deducting the 401k $18,000 twice, leaving my son with no qualifying income for IRA pu...
by Spirit Rider
Thu Dec 08, 2016 4:40 pm
Forum: Personal Finance (Not Investing)
Topic: Treasury Direct Conundrum
Replies: 19
Views: 1412

Re: Treasury Direct Conundrum

I've been to three different branches of US bank and have also phoned the 1-800 number. No luck. I was told that a signature guaranteed stamp and medallion stamp are the same thing. I had the same experience when I phoned Charles Schwab. You need to go again and ask to speak with a branch manager. ...
by Spirit Rider
Thu Dec 08, 2016 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Switch biz to LLC for tax purposes?
Replies: 44
Views: 1452

Re: Switch biz to LLC for tax purposes?

As pointed out an LLC is a state charted business entity. It in and of itself is not a taxable entity. As also pointed out a default Single Member LLC (SMLLC) is considered a dis-regarded entity by the IRS. It is treated for federal income tax purpose as a sole proprietorship and you file on a Sched...
by Spirit Rider
Thu Dec 08, 2016 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Invest in HSA outside that offered by company
Replies: 7
Views: 318

Re: Invest in HSA outside that offered by company

You save on payroll taxes by contributing via payroll deduction. FICA and SS taxes alone that is 7.65%. So you are saving about $256 by contributing via payroll. Your employer is correct, they can't process it pre-tax thru payroll if you choose another provider. While most likely practically correc...
by Spirit Rider
Thu Dec 08, 2016 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: SEP-IRA vs. 401k & Roth-IRA
Replies: 8
Views: 720

Re: SEP-IRA vs. 401k & Roth-IRA

Also, I think you are confusing two separate issues: ⋅ The choice between pre-tax (traditional) and post-tax (Roth) contributions whether 401k/403b/457b or IRA. ⋅ The option for additional tax advantaged Roth IRA accounts The first is a complex question depending on your personal...
by Spirit Rider
Thu Dec 08, 2016 12:33 pm
Forum: Investing - Theory, News & General
Topic: Highly compensated Employee
Replies: 37
Views: 4332

Re: Highly compensated Employee

That's assuming it gets to the refund stage. I think most employers cap contributions to prevent refunds entirely. And contributions are (generally) on a percentage basis. I've never heard of employers limiting contributions (or if this is allowed). This would limit HCEs' contributions more than ne...
by Spirit Rider
Thu Dec 08, 2016 12:12 pm
Forum: Investing - Theory, News & General
Topic: Why not have an Emergency Fund in your Roth...(for those who can't max out anyways)
Replies: 22
Views: 2070

Re: Why not have an Emergency Fund in your Roth...(for those who can't max out anyways)

Since this is intended for use as a Contingency Fund (my term, because not all needs are emergencies), it should be invested in a no/low risk manner.

Personally, I think this is a perfect scenario to use a MyRA account. It uses the TSP G fund for investment and the current interest rate is 2.375%.
by Spirit Rider
Wed Dec 07, 2016 11:24 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct pre-purchase discount
Replies: 117
Views: 9153

Re: TaxAct pre-purchase discount

I logged into my TaxAct account and it shows $27.99 locked in Premium federal/state from last year and $0.00 locked in Premium federal/state from the link provided on Cyber Monday.

Thanks dratkinson! I like free.
by Spirit Rider
Wed Dec 07, 2016 1:11 am
Forum: Investing - Help with Personal Investments
Topic: questions on setting up solo 401k
Replies: 4
Views: 254

Re: questions on setting up solo 401k

1) You can have a SEP IRA and a solo 401k at the same time, if and only if , the SEP IRA is not a 5305-SEP. The Vanguard SEP IRA you have been using is most certainly a 5305-SEP . You would need to open either a prototype SEP or an individually designed SEP to be able to use it in conjunction with a...
by Spirit Rider
Wed Dec 07, 2016 12:09 am
Forum: Investing - Help with Personal Investments
Topic: Works offers Simple IRA
Replies: 6
Views: 392

Re: Works offers Simple IRA

ddurrett896 wrote:New job and only offering a Simple IRA. They will match 50% of contributions up to 6% - so they match 3% max.

This is a non-compliant match for a SIMPLE IRA. The company is not allowed to match anything less than 100%. The normal match is 3%, but can be reduced to as low as 1% in 2 out of 5 years.
by Spirit Rider
Tue Dec 06, 2016 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Tax impact of switching from W-2 to K-1?
Replies: 9
Views: 765

Re: Tax impact of switching from W-2 to K-1?

I'm not a lawyer, but I question whether the change in legal form of her "employer" really changes her status as an employee? I would think the rules for employee vs independent contractor are the same regardless of the legal form of the company she works for. https://www.irs.gov/business...
by Spirit Rider
Tue Dec 06, 2016 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Tax impact of switching from W-2 to K-1?
Replies: 9
Views: 765

Re: Tax impact of switching from W-2 to K-1?

+1 Great response. I don't want to quibble, but self-employed do not pay 15.3%, due to the "employer" portion being subtracted from income in the calculation on Form SE. Yes, to be precise, they pay up to 15.3% on 92.35% of their net business profit. However, they also get a deduction of ...
by Spirit Rider
Tue Dec 06, 2016 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: W2 and 1099 retirement contributions?
Replies: 2
Views: 187

Re: W2 and 1099 retirement contributions?

The $18k employee deferral limit is across all qualified plans. In your case, both SEP IRA and solo 401k plans will allow the same employer contribution (20% of net business profit - 1/2 SE tax). Since you are doing backdoor Roth contributions, the solo 401k is the best choice. The SEP IRA assets wo...
by Spirit Rider
Mon Dec 05, 2016 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: Tax impact of switching from W-2 to K-1?
Replies: 9
Views: 765

Re: Tax impact of switching from W-2 to K-1?

1. Yes, you will now have to pay SE tax. 15.3% instead of 7.65% up to the SS max wage base (2016 = $118,500, 2017 = $125,200). 2.9% instead of 1.45% after that. The ACA surtax if subject to it is only on the employee so that will not change. Hopefully, they will increase your income more than enough...
by Spirit Rider
Mon Dec 05, 2016 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: Another Solo 401k Clarification, please
Replies: 1
Views: 199

Re: Another Solo 401k Clarification, please

Just substitute the word compensation for salary. Same thing with reduction and deferral. Keep in mind that there is no IRS form for the deferral election. These are just sample election forms offered by the providers. Unfortunately, they very often are only designed for a W-2 employee. You can edit...
by Spirit Rider
Mon Dec 05, 2016 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: W4 Allowance Rules
Replies: 6
Views: 553

Re: W4 Allowance Rules

You are far better off selecting a withholding allowance to use whatever safe harbors you have to minimize withholding that does not result in a penalty. Then you can have earnings on the money you accumulate to pay the tax due.
by Spirit Rider
Mon Dec 05, 2016 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: TSP beneficiaries per my will
Replies: 14
Views: 1200

Re: TSP beneficiaries per my will

Note: Your confusion may be, because this only became possible after the Pension Protection Act (PPA) of 2006 which permitted rollovers to inherited IRAs. Originally, the IRS ruled that companies had a choice if they wanted to adopt this provision. This was not the intent of congress and under press...
by Spirit Rider
Mon Dec 05, 2016 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: TSP beneficiaries per my will
Replies: 14
Views: 1200

Re: TSP beneficiaries per my will

It is a VERY bad idea to distribute retirement plans through your will. Non-spouse beneficiaries will be unable to utilize lifetime RMD distributions. The estate or the non-spouse beneficiaries will be required to withdraw the balance within 5 years. This has the potential of rather significant tax ...
by Spirit Rider
Mon Dec 05, 2016 11:06 am
Forum: Investing - Help with Personal Investments
Topic: Can I time-shift sole proprietor income to max employer solo401k contributions?
Replies: 9
Views: 587

Re: Can I time-shift sole proprietor income to max employer solo401k contributions?

It might seem to be semantics, but when it comes to the IRS, it most definitely matters. If you have a discussion with a client and the payment delay to next year is for "your" convenience, then the payment was constructively received this year. If it is for the "client's" conven...
by Spirit Rider
Mon Dec 05, 2016 10:39 am
Forum: Personal Finance (Not Investing)
Topic: gift tax as applies to money vs property
Replies: 5
Views: 532

Re: gift tax as applies to money vs property

JACKFFR1846's post is important. The 14K per person is the "annual exclusion" limit. Only amounts greater than this require reporting and only the amount exceeding the annual exclusion reduces the lifetime exclusion limit. Only when the lifetime limit is exceeded dos the unified gift/estat...
by Spirit Rider
Mon Dec 05, 2016 9:44 am
Forum: Personal Finance (Not Investing)
Topic: W4 Allowance Rules
Replies: 6
Views: 553

Re: W4 Allowance Rules

Trying to game your W-4 allowances can result in severe penalties and the dreaded "lock-in" letter from the IRS. This letter goes to your current and any future employer. The IRS will set your allowances and instruct the employers to disregard any W-4 submitted by you.
by Spirit Rider
Sun Dec 04, 2016 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k options - available investments
Replies: 5
Views: 301

Re: Solo 401k options - available investments

Some points regarding Fidelity vs. Vangurd: ⋅ Fidelity generally has the same expense ratios as Vanguard for the same class of index fund shares. ⋅ Vanguard normally has a $3K minimum for investor class, Fidelity normally has a $2500 minimum, but in the fine print it is $500 for ...
by Spirit Rider
Sun Dec 04, 2016 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k tax filing
Replies: 5
Views: 393

Re: Solo 401k tax filing

As for your income, I would NOT report under the new EIN but instead continue to report on your 1040 Schedule C. Well, technically it does get reported under the EIN in addition to your SSN. If you have an EIN, you must enter it in line D of the Schedule C. If you don't have an EIN line D is blank.
by Spirit Rider
Sun Dec 04, 2016 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Informal probate in Massachusetts was easy
Replies: 12
Views: 1174

Re: Informal probate in Massachusetts was easy

Are you done with the probate court? It sounds to me like all you did was get letters testamentary and will still have to go back to the court for approval after you have settled everything. In many states there is no probate court administration required when the sole beneficiaries are a spouse an...
by Spirit Rider
Sun Dec 04, 2016 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k tax filing
Replies: 5
Views: 393

Re: Solo 401k tax filing

No, you still file as a sole proprietor. Just file as normal on a Schedule C and just enter the EIN on line D.
by Spirit Rider
Sun Dec 04, 2016 4:11 am
Forum: Personal Finance (Not Investing)
Topic: S Corp - physician side gig
Replies: 12
Views: 1538

Re: S Corp - physician side gig

1. The employee FICA does not go as a seperate line item on the 1120S, because it comes out of the employee's compensation. 2. I went back and re-read the 1120S instructions for line 7 and line 17. I believe line 7 should reflect reflect pre-tax deferrals, but not Roth deferrals. I believe line 17 s...
by Spirit Rider
Sat Dec 03, 2016 11:41 pm
Forum: Personal Finance (Not Investing)
Topic: How Quarterly Taxes Work for Bonus
Replies: 4
Views: 405

Re: How Quarterly Taxes Work for Bonus

There is a federal safe harbor if your tax withholding exceeds a percentage of your prior year's tax liability. At your income level >= $150/K, the safe harbor is 110% of last year's tax liability. If your bonus is so much larger than last year, you are certainly going to be within the safe harbor u...
by Spirit Rider
Sat Dec 03, 2016 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: S Corp - physician side gig
Replies: 12
Views: 1538

Re: S Corp - physician side gig

The employee FICA gets deducted from your gross compensation during payroll. To add it back in would cause it to be double counted. Just like the solo 401k employee deferrals are deducted from gross compensation during payroll not line 17 retirement plans. FUTA, SUTA, etc... are not deducted from yo...
by Spirit Rider
Sat Dec 03, 2016 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: How to dispute bill collector for car rental damages I didn't cause?
Replies: 3
Views: 573

Re: How to dispute bill collector for car rental damages I didn't cause?

All communications should be done in writing. Email is not an acceptable method in dealing with debt collectors.

I would dispute the debt with the collection agency. If they are legitimate, they will have provided the details as required by federal law.
by Spirit Rider
Sat Dec 03, 2016 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Looking at 16k in profits from a side LLC. Should I keep as retained earnings or cash out?
Replies: 3
Views: 241

Re: Looking at 16k in profits from a side LLC. Should I keep as retained earnings or cash out?

Only C-Corporations can retain earnings. If you have an LLC, regardless whether it is a default disregarded entity filing as a sole proprietor on a Schedule C or has elected subchapter S status and filing on a Schedule 1120S, all earnings are taxable to the individual. The business entity type deter...
by Spirit Rider
Sat Dec 03, 2016 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: S Corp - physician side gig
Replies: 12
Views: 1538

Re: S Corp - physician side gig

No, because it is part of their taxable compensation and gets deducted from that at payroll time. This will all be handled by payroll services and end of year tax software. I always recommend that everyone with an S-Corp always use a professional for the first year or two. Then once they see how eve...
by Spirit Rider
Sat Dec 03, 2016 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: S Corp - physician side gig
Replies: 12
Views: 1538

Re: S Corp - physician side gig

I suppose technically it might be possible to be paid separately as an officer of the company for that role and as an employee for providing services, but I have never seen it done that way. The 1120s instructions say that this determination is based on state law. Every S-Corp 1120S I have seen with...
by Spirit Rider
Sat Dec 03, 2016 11:18 am
Forum: Investing - Help with Personal Investments
Topic: HSA Contribution Limits
Replies: 4
Views: 553

Re: HSA Contribution Limits

For 2016, are you saying I could contribute $7,750 ($6,650 family plus $1,000) to my HSA and my wife could contribute $1,000 to her HSA? I realize the $6,650 could be split between us. Is the actual total limit for the two of us $8,750? Yes, if she was covered under your HSA qualified HDHP in 2016 ...
by Spirit Rider
Sat Dec 03, 2016 6:29 am
Forum: Personal Finance (Not Investing)
Topic: "E-E bonds" or "Double E bonds" ?
Replies: 8
Views: 964

Re: "E-E bonds" or "Double E bonds" ?

Before this post I have never thought about, because I had never heard anyone refer to them as anything other than E-E Bonds.
by Spirit Rider
Sat Dec 03, 2016 5:47 am
Forum: Investing - Help with Personal Investments
Topic: Maxing 401k deferral affects what categories in my paycheck?
Replies: 5
Views: 744

Re: Maxing 401k deferral affects what categories in my paycheck?

401k deferrals are subject to payroll taxes, but not federal income taxes and thus withholding. State and local withholding would reflect relevant law. AL, CA and NJ tax HSA contributions. I would think where there are deductions for state and local income taxes, there would be withholding adjustmen...
by Spirit Rider
Fri Dec 02, 2016 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Transfer Inherited Non-tax Qualified Annuity
Replies: 12
Views: 750

Re: Transfer Inherited Non-tax Qualified Annuity

I sent a pm to Alan S.

I think the non-qualified that Jeferson National is referring to is just an annuitization of annuity balance. While I don't know, I think it is possible that you might be able to do a 1035 exchange to any SPIA.
by Spirit Rider
Fri Dec 02, 2016 11:06 pm
Forum: Personal Finance (Not Investing)
Topic: S Corp - physician side gig
Replies: 12
Views: 1538

Re: S Corp - physician side gig

...a moonlighting S-Corp owner will pay an additional 6.2% SS payroll tax on their salary while saving 2.9% (+ 0.9% surtax if applicable) Medicare payroll tax on the balance. So the sweet spot is multiples of the SS max wage base in business income to even begin to break even. That doesn't even fac...
by Spirit Rider
Fri Dec 02, 2016 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: HSA Contribution Limits
Replies: 4
Views: 553

Re: HSA Contribution Limits

No, a couple cannot contribute more than the family maximum (2017 = $6,750), plus your respective $1,000 catch-up contributions in any given year. If you have made a family contribution for 2017 of $5,062.50, she will only be able to make an individual contribution of $1687.50 plus $1000 catch-up co...
by Spirit Rider
Fri Dec 02, 2016 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Reverse rollover to Individual 401k
Replies: 8
Views: 508

Re: Reverse rollover to Individual 401k

One other potential problem with your plan. I know of no mainstream one-participant 401k provider that allows after-tax contributions and corresponding in-service withdrawals. While there is no direct relevance to the above and I have no specific knowledge. I am inclined to question the likelihood t...
by Spirit Rider
Fri Dec 02, 2016 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: HSA or Roth ?
Replies: 3
Views: 287

Re: HSA or Roth ?

Yes, if and only if there is this choice. It would always be better to exchange restricted tax-free assets for unrestricted tax-free assets.
by Spirit Rider
Fri Dec 02, 2016 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: [FICA and self-employed] taxes on HSA
Replies: 8
Views: 640

Re: FICO and selfemployd taxes on HSA

An S-Corp will not save you on income taxes, but can save you Social Security and Medicare Taxes. Additionally you can save on HSA contributions and also health insurance premiums. The sole proprietor will pay Self-Employment (SE) tax (up to 15.3%) on 0.9235 * net business profit. The S-Corp and sha...
by Spirit Rider
Fri Dec 02, 2016 3:51 am
Forum: Personal Finance (Not Investing)
Topic: "High risk colonoscopy", cost shift. Any recourse?
Replies: 19
Views: 2647

Re: "High risk colonoscopy", cost shift. Any recourse?

The insurance company is fully in compliance regarding the rules for what constitutes a screening colonoscopy and what doesn't. The fact that you had polyps removed previously, means that it will not be a cost free preventive screening.
by Spirit Rider
Fri Dec 02, 2016 3:34 am
Forum: Personal Finance (Not Investing)
Topic: Put money back into HSA account
Replies: 3
Views: 465

Re: Put money back into HSA account

There is no way the OP's circumstances constitutes a mistake of fact.

What would the "reasonable cause" be? Convenience or tax advantage would hardly qualify as a "mistaken distribution".
by Spirit Rider
Thu Dec 01, 2016 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Self-incorporation for second job?
Replies: 4
Views: 498

Re: Self-incorporation for second job?

I wonder why many of my colleagues had done it for their 1099 jobs. I would say some of the top reasons are: ⋅ There is the misunderstanding that you need an S-Corp to deduct business expenses and you can contribute substantially more to a solo 401k with an S-Corp. The former is false and...

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