Search found 2979 matches

by Spirit Rider
Fri Feb 05, 2016 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Best IRA account for Self Employed?
Replies: 8
Views: 319

Re: Best IRA account for Self Employed?

TheTimeLord wrote:Can't you defer the first $23K of your income (after Medicare, FICA and self-employment tax) with a Solo 401K?

The max deferral in 2015/16 is $24K if >= age 50, $18K otherwise. It was $23K/$17.5K in 2013/14.
by Spirit Rider
Fri Feb 05, 2016 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Money Withdrawn From UTMA Account Eligible for Roth IRA Contribution?
Replies: 6
Views: 146

Re: Money Withdrawn From UTMA Account Eligible for Roth IRA Contribution?

UTMA money is no different that any other money you would contribute to a Roth IRA. It has no relevance for the necessity to have earned income to make IRA contributions. The only case I am aware of that a UTMA account can be the source of money for a tax-advantaged plan is a 529. You can rollover U...
by Spirit Rider
Fri Feb 05, 2016 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: UTMA Account
Replies: 12
Views: 470

Re: UTMA Account

A common mistake that many people make is assuming UGMA/UTMA accounts are rigidly controlled. There is model legislation that covers all aspects of the these accounts, but the truth is that there is generally no oversight of the custodian. There is no UGMA/UTMA police enforcing the law. These accoun...
by Spirit Rider
Fri Feb 05, 2016 10:21 am
Forum: Personal Finance (Not Investing)
Topic: S-Corp Help
Replies: 1
Views: 73

Re: S-Corp Help

This may be a little tricky and there might be some issues with how the distributions are allocated. Your five uncles will have to agree with you doing this. This is what I believe you can do. IANAL Your best option is for the S-Corp to adopt an individual participant 401k. This is somewhat of a mis...
by Spirit Rider
Thu Feb 04, 2016 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: [Am I getting a bad deal from my financial planner?]
Replies: 58
Views: 3848

Re: Am I getting screwed?

$132.53 - wife's disability insurance $125.66 - my disability insurance (BOTH THESE ARE PUZZLING. YOU ARE YOUNG. WHY DO YOU NEED DISABILITY INSURANCE NOW? SOMETHING TO THINK ABOUT) I would look carefully to see if long term disability insurance is provided by ones employer. Both my wife and I have ...
by Spirit Rider
Thu Feb 04, 2016 4:34 pm
Forum: Investing - Theory, News & General
Topic: If SS covers expenses why invest?
Replies: 56
Views: 3238

Re: If SS covers expenses why invest?

Many people underestimate their expenses in retirement. Are you factoring in replacement of vehicles? Are you factoring the costs of medical care/insurance. Just Medicare Part B + Part D premiums + Medigap premiums can be six figures in retirement. I am amazed how many people are shocked when they g...
by Spirit Rider
Thu Feb 04, 2016 4:22 pm
Forum: Investing - Theory, News & General
Topic: Delaying SS Benefits?
Replies: 25
Views: 1591

Re: Delaying SS Benefits?

Also, depending on your expense level and what level of taxable income you need to meet those expenses. Claiming social security early could result in a larger percentage of your SS benefits being taxed. A draw down from 62 on also has the effect of reducing RMDs starting in the year you turn age 70...
by Spirit Rider
Thu Feb 04, 2016 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: Beating the 53k Limit - Aftertax only at day job? - pretax in individual 401k?
Replies: 3
Views: 347

Re: Beating the 53k Limit - Aftertax only at day job? - pretax in individual 401k?

Some 401k plans require you to max your employee salary deferrals before making after-tax contributions. If they don't have this restriction, the best strategy to max out your available tax-advantaged space would be to: ⋅ If your company doesn't match after-tax contributions, make the mini...
by Spirit Rider
Thu Feb 04, 2016 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: Beating the 53k Limit - Aftertax only at day job? - pretax in individual 401k?
Replies: 3
Views: 347

Re: Beating the 53k Limit - Aftertax only at day job? - pretax in individual 401k?

Yes, you get a separate annual addition limit (2015/16 = $53K) per employer. This does not apply to a work 403b plan and owner i401k or SEP IRA plans. As you noted, you only get one employee salary deferral limit (2015/16 = $18K, >= age 50 $24K) across all plans (not counting 457 plans). If you max ...
by Spirit Rider
Thu Feb 04, 2016 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Insurance says rock chip repair will not count as a claim on insurance?
Replies: 8
Views: 534

Re: Insurance says rock chip repair will not count as a claim on insurance?

This is pretty standard that they will repair small chips/cracks for no cost even if you don't have coverage for windshield replacement. This generally will not be a chargeable claim. However, be very careful that they don't report a non-chargeable claim to CLUE. It maybe too late anyway, a claim ma...
by Spirit Rider
Thu Feb 04, 2016 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited a home, any tax benefits?
Replies: 30
Views: 1227

Re: Inherited a home, any tax benefits?

We did use a probate attorney to settle the estate. All paperwork has been properly filed with the court. It seems that when we decide to sell I will use the executor papers to sign as my father on the sale. I will then split the proceeds with my sister as instructed in the will. I'm sill of the op...
by Spirit Rider
Thu Feb 04, 2016 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Uber driving for extra income in retirement.
Replies: 31
Views: 2870

Re: Uber driving for extra income in retirement.

Is this the south side of Chicago, IL or Provo, UT. Like many things it life it is, location, Location, LOCATION.
by Spirit Rider
Thu Feb 04, 2016 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Inherited a home, any tax benefits?
Replies: 30
Views: 1227

Re: Inherited a home, any tax benefits?

I approached the county about changing the name on the title but they said they don't do that unless there is a sale. That sounds a little strange to me. If property is inherited, a different person(s) owns it. It does not seem that this handling of the title would work if you eventually sell the p...
by Spirit Rider
Thu Feb 04, 2016 10:24 am
Forum: Personal Finance (Not Investing)
Topic: HSA Account Closure Question
Replies: 2
Views: 253

Re: HSA Account Closure Question

Not that I am aware of, but it is worth mentioning another issue for account closing. It does not apply to this situation, but might help someone else reading this thread. If you have (or will have) unreimbursed qualified expenses. You should not draw down an HSA account to $0 unless you know you wi...
by Spirit Rider
Thu Feb 04, 2016 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Inherited a home, any tax benefits?
Replies: 30
Views: 1227

Re: Inherited a home, any tax benefits?

You did not ask this question, but it is kind of relevant. Most states have an "elective share" requirement for a legal spouse. This is essentially a minimum share of the estate regardless of the will. In some states this is applied to the "augmented estate". A pre-nup can overri...
by Spirit Rider
Thu Feb 04, 2016 12:04 am
Forum: Investing - Help with Personal Investments
Topic: A little confused about what to do with new 1099 income
Replies: 3
Views: 400

Re: A little confused about what to do with new 1099 income

Am I right in assuming that my best option is to open up a solo/individual 401k at Vanguard, and that I can contribute roughly 25% of her earnings to this 401k (I know the 25% is calculated after deducting self-employment tax)? The contribution is 25% of compensation. However, the contribution itse...
by Spirit Rider
Wed Feb 03, 2016 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: S. Corp Salary Amount and Retirement Contributions
Replies: 53
Views: 4455

Re: S. Corp Salary Amount and Retirement Contributions

earlier today you said Increasing salary for an S-Corp to increase the i401k employer contribution, subjects that higher salary to the 15.3% tax and Additionally, the S-Corp employer contribution is not subject to FICA these two quotes are not in contradiction because (obviously) the employeR's con...
by Spirit Rider
Wed Feb 03, 2016 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Changing Solo 401(k) TPA From Another Provider to Vanguard
Replies: 8
Views: 255

Re: Changing Solo 401(k) TPA From Another Provider to Vanguard

I don't have an answer for your main question, but a possible cause of the large fee. This may not be just a simple restatement. It is possible that the restatement also contained mandatory adoption of certain amendments required to completely comply with the Pension Protection Act (PPA) of 2006. Th...
by Spirit Rider
Wed Feb 03, 2016 6:43 pm
Forum: Investing - Help with Personal Investments
Topic: S. Corp Salary Amount and Retirement Contributions
Replies: 53
Views: 4455

Re: S. Corp Salary Amount and Retirement Contributions

Stephen Nelson may have a point, but I am not completely convinced. I should rephrase my statement to: "Assuming no deferrals from other plans, there is never an income tax-wise incentive to use a SEP IRA. In both my examples, if the employee salary deferral is pre-tax, then both the SEP IRA an...
by Spirit Rider
Wed Feb 03, 2016 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Self employed - do you use Quick Books or other tools
Replies: 9
Views: 420

Re: Self employed - do you use Quick Books or other tools

When you say "getting into a contract" can I assume this is a professional services contract where you will simply be paid for billable hours? In that case, I would just use a payroll service for your own payroll. There is a difference between being frugal and being a miser. Do you really ...
by Spirit Rider
Wed Feb 03, 2016 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: Confused about income limits for traditional IRA deductions
Replies: 9
Views: 680

Re: Confused about income limits for traditional IRA deductions

Eg. if spouse A makes 50K and spouse B makes 120K and they file married jointly, is spouse A able to fully deduct a traditional IRA contribution? If both are covered by a retirement plan at work (where "covered" means there is one and money is contributed to it in the tax year), then neit...
by Spirit Rider
Wed Feb 03, 2016 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: S. Corp Salary Amount and Retirement Contributions
Replies: 53
Views: 4455

Re: S. Corp Salary Amount and Retirement Contributions

excellently explained, as always once you reach a salary of $140K, you can max out a i401k employer contribution ($35K) with a max employee salary deferral ($18K, >= age 50 $24K). does this mean, in your opinion, that if the S Corp employee salary is above $140K, there is no tax-wise incentive in u...
by Spirit Rider
Wed Feb 03, 2016 11:15 am
Forum: Investing - Help with Personal Investments
Topic: S. Corp Salary Amount and Retirement Contributions
Replies: 53
Views: 4455

Re: S. Corp Salary Amount and Retirement Contributions

I would never choose to pay a 15.3% payroll tax so that I could contribute more money to a retirement plan. Would you add money to a retirement plan if there were a 15.3% sales load on any money you added? No, none of us would, even if it were the only option would you mind explaining what you mean...
by Spirit Rider
Wed Feb 03, 2016 12:03 am
Forum: Investing - Help with Personal Investments
Topic: SIMPLE 401k company?
Replies: 11
Views: 543

Re: SIMPLE 401k company?

The only other option is to see if you can find a Third Party Administer (TPA). They might be able to provide you SIMPLE 401k plan documents and the necessary administrative services. Possibly this could be less expensive than the other options.
by Spirit Rider
Tue Feb 02, 2016 11:56 pm
Forum: Personal Finance (Not Investing)
Topic: Confused about income limits for traditional IRA deductions
Replies: 9
Views: 680

Re: Confused about income limits for traditional IRA deductions

Eg. if spouse A makes 50K and spouse B makes 120K and they file married jointly, is spouse A able to fully deduct a traditional IRA contribution? If both are covered by a retirement plan at work (where "covered" means there is one and money is contributed to it in the tax year), then neit...
by Spirit Rider
Tue Feb 02, 2016 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: SIMPLE 401k company?
Replies: 11
Views: 543

Re: SIMPLE 401k company?

SIMPLE 401k plans are one of those orphans of the tax code. They seem to make sense, but there has been very little demand for them. I think the lack of major providers is based on simple economics. They don't see the potential market for offering the plan. It could be that the administrative costs ...
by Spirit Rider
Tue Feb 02, 2016 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Administrators -Poor Customer Service
Replies: 3
Views: 374

Re: HSA Administrators -Poor Customer Service

Did you ever think that the increased hold time and lack of email response was due to a whole bunch of people not waiting a few days to receive their 1099-SA forms when they were not even late yet? This is like people calling Vanguard on December 31st to TLH or request an RMD and complain about Vang...
by Spirit Rider
Tue Feb 02, 2016 11:26 am
Forum: Personal Finance (Not Investing)
Topic: I think my W2 has a mistake - doublecheck me?
Replies: 9
Views: 877

Re: I think my W2 has a mistake - doublecheck me?

On my W-2, it includes only the amount my employer contributed to the HSA, but not my contributions made through payroll. So I guess that means I don't have a "cafeteria plan under section 125." Edit: On my paychecks, my HSA contributions are taken out through payroll on a pre-tax basis j...
by Spirit Rider
Tue Feb 02, 2016 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Switched employers, have a funded FSA and HSA. How to use?
Replies: 14
Views: 990

Re: Switched employers, have a funded FSA and HSA. How to use?

I do not think the previous answer is the whole story. I believe you have the right to elect COBRA coverage for your health fsa. Please look into this. I wasn't aware of this, but it does appear that Katiesu is correct and an FSA Is available for COBRA. I'm not sure how this work. Is the FSA by its...
by Spirit Rider
Tue Feb 02, 2016 12:13 am
Forum: Investing - Help with Personal Investments
Topic: Contributions to Rollover IRA from 401k
Replies: 5
Views: 318

Re: Contributions to Rollover IRA from 401k

It is no longer necessary to isolate rollover IRAs, but some providers still restrict new contributions. So you need to either roll it over to somewhere else that does accept new contributions or open a new account. I have a Scottrade account, but they would not be my choice for retirement accounts....
by Spirit Rider
Tue Feb 02, 2016 12:01 am
Forum: Personal Finance (Not Investing)
Topic: Switched employers, have a funded FSA and HSA. How to use?
Replies: 14
Views: 990

Re: Switched employers, have a funded FSA and HSA. How to use?

Yes, the FSA was fully funded on January 1st, but you were only eligible to obtain reimbursement for expenses that occurred until your termination date of January 8th. The remaining money is forfeit. Even though you have no access to those remaining funds, you are considered to have the FSA for the ...
by Spirit Rider
Mon Feb 01, 2016 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: 401k - Highly Compensated Employee?
Replies: 27
Views: 2195

Re: 401k - Highly Compensated Employee?

News to me. I make 140k and contribute maximum 18k every year with no match. Never heard of highly compensated employee at our salary. Doesn't mean they don't exist. I can think of some possible reasons: ⋅ You don't have a match, but maybe you have a 3%+ non-elective employer contribution...
by Spirit Rider
Mon Feb 01, 2016 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: 401k - Highly Compensated Employee?
Replies: 27
Views: 2195

Re: 401k - Highly Compensated Employee?

There is no way "to get around this situation" by calling HR. These are provisions of the Internal Revenue Code enacted by congress and enforced by IRS regulations. This is intended to prevent business owners, management and highly paid professionals from getting greater retirement benefit...
by Spirit Rider
Mon Feb 01, 2016 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Banks or credit unions
Replies: 37
Views: 2201

Re: Banks or credit unions

B&M Credit Unions generally have lower fees, lower installment loan rates. However, they generally have lower savings/CD rates and higher mortgage, HEL and HELOC rates. Some online Credit Unions do have higher savings/CD rates and lower mortgage, HEL and HELOC rates. B&M Banks tend to have m...
by Spirit Rider
Mon Feb 01, 2016 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Please advise re. Roth vs Trad for my 2015 tax year
Replies: 14
Views: 884

Re: Please advise re. Roth vs Trad for my 2015 tax year

You cannot make a 2015 Roth IRA contribution, it goes by calendar year. I believe you can make a 2015 Traditional IRA contribution, thru tax deadline day in April. Would help lower taxable income in 2015. There is no difference between how a traditional IRA and Roth IRA are allocated to tax years. ...
by Spirit Rider
Mon Feb 01, 2016 11:42 am
Forum: Personal Finance (Not Investing)
Topic: 1 person s-corp and new health insurance forms
Replies: 10
Views: 838

Re: 1 person s-corp and new health insurance forms

Is this a requirement for S-Corps with only a shareholder-employee. After all, the purpose of this is for employees to know the total cost of their insurance coverage. Obviously, an S-Corp owner knows the cost of his coverage.
by Spirit Rider
Mon Feb 01, 2016 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Medigap plan F hi-ded ?
Replies: 3
Views: 298

Re: Medigap plan F hi-ded ?

For Medicare, the relevant number is the eligible expenses. Medicare Part B pays 80% and you are responsible for the remaining 20%. It is this 20% that gets applied to whatever deductible you have. The Medicare payments are not 80% of the eligible expenses. The break down after the deductible has be...
by Spirit Rider
Mon Feb 01, 2016 11:00 am
Forum: Personal Finance (Not Investing)
Topic: 1 person s-corp and new health insurance forms
Replies: 10
Views: 838

Re: 1 person s-corp and new health insurance forms

All new policies offered must be ACA compliant whether or not they are purchased through an exchange. Only policies purchased through an exchange are eligible for subsidies. The exchanges do list all available policies with/without subsidies, but most insurers will sell their polices directly.
by Spirit Rider
Sun Jan 31, 2016 10:17 pm
Forum: Personal Finance (Not Investing)
Topic: Paying estimated taxes
Replies: 24
Views: 2231

Re: Paying estimated taxes

if the additional income is not that large in comparison with your W-2 income, you can increase your W-2 withholding as a method to pay the tax liability on the additional income during the year. 1. what calculation determines if the additional income is not too large and one can still pay its tax ...
by Spirit Rider
Sun Jan 31, 2016 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: Is a Will or Trust necessary for a single person with no kids?
Replies: 21
Views: 1680

Re: Is a Will or Trust necessary for a single person with no kids?

Look up the intestate rules for your state. This is the default if you have no will. For example, first in line for unmarried persons is usually your parents. If you want something different, you need a will. Depending on the state, you can have beneficiary titles for vehicles and some states even h...
by Spirit Rider
Sun Jan 31, 2016 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: Two questions about UTMAs
Replies: 2
Views: 285

Re: Two questions about UTMAs

One additional consideration. It either of you are in the lower tax brackets (10%/15%). The appreciated shares could be redeem with a 0% capital gains tax rate up to the top of the 15% bracket. If it is him he would simply redeem what he could inside the 15% bracket and then as 'sport' said gift you...
by Spirit Rider
Sat Jan 30, 2016 10:42 am
Forum: Investing - Help with Personal Investments
Topic: How do I move my work 401k?
Replies: 14
Views: 759

Re: How do I move my work 401k?

^^^ For < $5K, it might be a good choice to move it to Vanguard. However, you should really check out your new employer's 401k plan first. While many plans have high expense options, that is not always true. Some plans even have expense ratios <= Vanguard. In such a case it is probably better to mov...
by Spirit Rider
Sat Jan 30, 2016 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Medigap plan F--Aetna or Statefarm
Replies: 23
Views: 1539

Re: Medigap plan F--Aetna or Statefarm

Yes, Plan F and Plan C will not be sold to new people starting in 2020, if this change is not overturned. Like Plan J before, premiums are likely to rise. People with Plan F will be able to keep it or can switch to another plan if they prefer without underwriting (because a plan ceases). No need to...
by Spirit Rider
Sat Jan 30, 2016 9:41 am
Forum: Investing - Help with Personal Investments
Topic: How do I move my work 401k?
Replies: 14
Views: 759

Re: How do I move my work 401k?

If the account has more than $5K, you can leave it at the old employer. If it is < $5K, or you choose to, you can roll the assets into either the new employers 401k or a personal IRA. Which of these options you should choose? You should generally choose based on which has the best investment options...
by Spirit Rider
Fri Jan 29, 2016 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: Immediate Fixed Annuities
Replies: 45
Views: 2587

Re: Immediate Fixed Annuities

There is another good reason to consider buying SPIAs in a layered approach in addition to the ones mentioned. The payout is calculated based on a; return of principal component, yield component, and mortality credits. The mortality credits will increase the later you purchase the SPIA. Many people ...
by Spirit Rider
Fri Jan 29, 2016 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k
Replies: 2
Views: 275

Re: Solo 401k

For state and federal income taxes, solo 401k contributions are reported depending on your business structure. If you are a sole proprietor, your employee salary deferral and employer contributions do not affect your net business profits. Both are deducted on your personal 1040 line 28. If you are a...
by Spirit Rider
Fri Jan 29, 2016 11:26 am
Forum: Personal Finance (Not Investing)
Topic: What age did you start maxing out your retirement contributions?
Replies: 63
Views: 4313

Re: What age did you start maxing out your retirement contributions?

What difference does it make? I will repeat my often stated mantra. Maxing out fixed arbitrary maximums is an irrelevant metric. This continued obsession with maxing out retirement contributions is absurd.
by Spirit Rider
Thu Jan 28, 2016 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: Incorrect 2015 401k deduction- please help?
Replies: 2
Views: 167

Re: Incorrect 2015 401k deduction- please help?

The date the contribution is credited by American Funds is irrelevant. What determines what year the employee salary deferral occurred, is when the pay date of the last check was. If the pay date was on or before 12/31/2015, the deduction occurred in 2015 and will be reflected in your 2015 W-2. The ...
by Spirit Rider
Thu Jan 28, 2016 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: HSA without qualifying contributions
Replies: 12
Views: 944

Re: HSA without qualifying contributions

If OP's wife was not even on the HDHP until 2016, how can expenses incurred in 2014 and 2015 be reimbursable? Maybe you know something that I don't, or maybe I am misunderstanding what you are saying. Would you mind elaborating with an example of, say, five years? The minimum data required for an e...
by Spirit Rider
Thu Jan 28, 2016 2:26 pm
Forum: Personal Consumer Issues
Topic: Which news source do you use?
Replies: 67
Views: 4036

Re: Which news source do you use?

If you are seeking the truth in newspapers, you will be disappointed. Print journalism has also become largely drive by biases. This would be fine if it were just limited to their editorial pages. However, the bias flows from the publishers to the editors to the journalists. They suffer from groupth...

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