Search found 5895 matches

by Spirit Rider
Wed Sep 20, 2017 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA to Traditional IRA for 2016
Replies: 2
Views: 96

Re: SEP IRA to Traditional IRA for 2016

No, it is not generally possible to change SEP IRA contributions after the fact to traditional IRA contributions. A custodian might consider it, if contacted contemporaneously to the contribution when described as an unintentional good faith mistake. Which is clearly not true in this case. Could you...
by Spirit Rider
Wed Sep 20, 2017 8:28 pm
Forum: Personal Consumer Issues
Topic: Getting (young) kids interested in coding
Replies: 66
Views: 3396

Re: Getting (young) kids interested in coding

I find this whole movement towards promoting "coding skills" in children as totally misdirected. The last thing the IT world needs is more coders who can't think their way out of a wet paper bag. Personally, I find 75% - 80% of modern software developers as next to useless. They have non-existent cr...
by Spirit Rider
Wed Sep 20, 2017 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: solo 401k, husband and wife LLC
Replies: 18
Views: 477

Re: solo 401k, husband and wife LLC

another question..reading about rolling over SEP iras to 401k then back door Roth IRA. Is this only advisable to higher income situations or is this worthwhile with anyone currently holding a SEP? Very confused now with what to do with my current SEP, actually SEPS as my wife has same as me. Would ...
by Spirit Rider
Wed Sep 20, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: solo 401k, husband and wife LLC
Replies: 18
Views: 477

Re: solo 401k, husband and wife LLC

wow..thanks for that. So he was wrong in saying I could set up a solo 401k next year then? I told him I currently had a SEP with Vanguard. So I would have to change my current SEP IRA to another designation...and since Vanguard can't do that, I would first have to transfer to another institution ju...
by Spirit Rider
Wed Sep 20, 2017 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Self-employed retirement accounts
Replies: 1
Views: 124

Re: Self-employed retirement accounts

In all cases her best choice would be to use a one-participant 401k which must be adopted no later than 12/31. The employee deferral can be up to 100% of compensation subject to the 2017 employee deferral limit of $18K per employee across all employer plans. Her 2017 one-participant 401k employee de...
by Spirit Rider
Wed Sep 20, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: solo 401k, husband and wife LLC
Replies: 18
Views: 477

Re: solo 401k, husband and wife LLC

It's a regular SEP plan...and a quick google search shows that the Vanguard rep is wrong. You can contribute to both the same year. Not sure why he said I can't have more than 1 active plan a year. I questioned him and he repeated a few times. The Vanguard rep was not wrong, they just did not give ...
by Spirit Rider
Wed Sep 20, 2017 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: Which 401k plan is better? This is for a small dental office
Replies: 12
Views: 794

Re: Which 401k plan is better? This is for a small dental office

I have the American Dental Association endorsed AXA Equitable plan. I believe they charge 25 per person to set up the plan, 3 dollars a quarter per participant and then assets under management fees. I use their S & P 500 plan which has (I believe) a .87 percent expense ratio. . This is a horrible p...
by Spirit Rider
Wed Sep 20, 2017 11:43 am
Forum: Investing - Help with Personal Investments
Topic: Which 401k plan is better? This is for a small dental office
Replies: 12
Views: 794

Re: Which 401k plan is better? This is for a small dental office

Look into a SIMPLE IRA plan instead. Cost the company nothing and it can be self directed...meaning employees choose their own investments. Any SIMPLE IRA plans I have seen have administrative costs. They maybe lower than a 401k, Vanguard charges $25/employee/fund/year and Fidlelity $25/employee/ye...
by Spirit Rider
Tue Sep 19, 2017 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?
Replies: 21
Views: 1792

Re: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?

Nonprescription Drugs and Medicines Except for insulin, you can't include in medical expenses amounts you pay for a drug that isn't prescribed . Example . Your doctor recommends that you take aspirin. Because aspirin is a drug that doesn't require a physician's prescription, you can't include its c...
by Spirit Rider
Tue Sep 19, 2017 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: Tracking HSA investment income/cost basis for CA state taxes
Replies: 10
Views: 687

Re: Tracking HSA investment income/cost basis for CA state taxes

Unfortunately, HSAs are such a small piece of the investment pie. Even with size of CA, I really don't think you are going to find any HSA custodian giving you what you want. They are going to do the easy lifting for the vast majority of the country and are not going to spend the time and money to t...
by Spirit Rider
Tue Sep 19, 2017 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?
Replies: 21
Views: 1792

Re: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?

Actually, there is no difference between Pub 502 and Pub 969. They both are really saying the same thing. Pub 502, just uses imprecise language, especially the example which is misleading. The fact that aspirin doesn't require a prescription for over the counter sales has no bearing on the fact that...
by Spirit Rider
Mon Sep 18, 2017 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?
Replies: 21
Views: 1792

Re: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?

Where do I find out if Non Prescription health-related purchases fall as HSA qualified medical expenses (say staff like fish-oil, vitamin D, multivitamins, melatonin, magnesium...) WHEN recommended by the physician? This was changed by Obamacare. From IRS Publication 502: Nonprescription Drugs and ...
by Spirit Rider
Mon Sep 18, 2017 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: *New question* Worth it to go into 403(b) from TIRA/SIMPLE?
Replies: 7
Views: 283

Re: Worth it to go into 403(b) from TIRA/SIMPLE?

You might want to seriously investigate how you might generate some self-employment income. This will allow you to legitimately adopt a one-participant 401k plan that accepts rollovers (not Vanguard). Then you can rollover all pre-tax (traditional ,SEP, SIMPLE) IRAs to the 401k. Do you have any skil...
by Spirit Rider
Sun Sep 17, 2017 11:21 am
Forum: Personal Finance (Not Investing)
Topic: How to add spouse to Fidelity solo 401K?
Replies: 2
Views: 214

Re: How to add spouse to Fidelity solo 401K?

You could just call them. I have always found them to be very helpful. All you should need to do is to download a New Fidelity Account®—Retirement Plan Account Then under 1. Retirement Plan Information, Add an Account to an Existing Plan. Select Add spouse or an additional owner to an existing SE 40...
by Spirit Rider
Sat Sep 16, 2017 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Access to 401k at age 55
Replies: 12
Views: 1268

Re: Access to 401k at age 55

If you are >= age 59 1/2 with a 401k plan with restrictive distribution options. You can still rollover the plan to an IRA. Then you can have unrestricted distributions. However, if you are >= age 55, but < 59 1/2 with a 401k plan with restrictive distribution options. You are kind of stuck, because...
by Spirit Rider
Sat Sep 16, 2017 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Mother-In-Law dying, Wife wants to buy a Porsche
Replies: 51
Views: 4828

Re: Mother-In-Law dying, Wife wants to buy a Porsche

Being my usual contrarian self, I have some observations: The people calling her a child, immature, etc... are clearly projecting. Maybe they might want to look in the mirror. To the OP, an inheritance is not marital property. She does not need your permission. It is her money, not ours and certainl...
by Spirit Rider
Fri Sep 15, 2017 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Deceased Mother medical bill
Replies: 26
Views: 3013

Re: Deceased Mother medical bill

If there were accounts with no beneficiaries or where the estate was the beneficiary, then those assets would be estate assets that should be used to pay her debts. Any life insurance policies, retirement accounts, and other accounts with named beneficiaries, ceased to be her assets upon death . The...
by Spirit Rider
Fri Sep 15, 2017 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Deceased Mother medical bill
Replies: 26
Views: 3013

Re: Deceased Mother medical bill

The Supreme Court ruled several years ago that inherited retirement accounts do not receive federal bankruptcy protection. Now this was narrow in scope and only applies to those circumstances, but SCOTUS rulings have wide reach for precedence setting. States can provide additional asset protection, ...
by Spirit Rider
Fri Sep 15, 2017 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: HSA over-contrib and test failure on last month rule
Replies: 3
Views: 309

Re: HSA over-contrib and test failure on last month rule

That's correct. You have until April 15 next year to remove the excess contribution plus earnings. You have until the tax filing deadline to make contributions, but you actually have until the tax deadline including extensions to remove the excess contributions plus earnings. However, the sooner yo...
by Spirit Rider
Thu Sep 14, 2017 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Timing
Replies: 9
Views: 879

Re: HSA Timing

Unless the employer has a limitation it should be possible. Just divide the yearly contribution limit by the number of payroll periods and round up. I did that when I became eligible one year on 9/1
by Spirit Rider
Thu Sep 14, 2017 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up a small inheritance for a disabled person
Replies: 2
Views: 354

Re: Setting up a small inheritance for a disabled person

There may be a better option for these circumstances than a SNT if the answer to these questions are yes. The individual is certified as disabled. The individual became disabled prior to age 26. The individual has or can have a legal guardian/power of attorney.* There is a new option for the disable...
by Spirit Rider
Thu Sep 14, 2017 7:37 pm
Forum: Investing - Help with Personal Investments
Topic: Roll pre age 55 401k into new 401k and quit before 59
Replies: 3
Views: 314

Re: Roll pre age 55 401k into new 401k and quit before 59

Yes, assuming the new 401k plan accepts incoming rollovers. The entire assets of a 401k when separation occurs after age 55, gain an exception the early distribution penalty. Distributions are still subject to the rules of the plan. The source of those assets are not relevant. You can even rollover ...
by Spirit Rider
Thu Sep 14, 2017 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Timing
Replies: 9
Views: 879

Re: HSA Timing

You can not open and fund an HSA until you are eligible. You are not an HSA eligible individual until you have an HSA qualifying HDHP. You want to wait to make the HSA contributions by payroll deduction anyways. HSA contributions by payroll deduction are pre-tax for federal, state except (AL, CA, an...
by Spirit Rider
Tue Sep 12, 2017 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Why doesn't my Vanguard 403(b) have a total stock index?
Replies: 9
Views: 663

Re: Why doesn't my Vanguard 403(b) have a total stock index?

One reason is that many participants will want to have one of each of domestic stock class. I saw this at a previous employer twenty years ago. In one case we had Fidelity Magellan and Contrafund, S&P 500 index fund and Ext. Market Index fund as domestic stock funds. The most common fund allocation ...
by Spirit Rider
Mon Sep 11, 2017 11:43 pm
Forum: Personal Finance (Not Investing)
Topic: Question Re: Max 401K Contribution
Replies: 28
Views: 1986

Re: Question Re: Max 401K Contribution

Well, if you are self-employed which you haven't clarified, your CPA is not correct I answered that in my first post. I have W2 as primary income in addition to 1099 income. Some corporations will still issue a Form 1099-MISC for a single person S-Corp even though it is not required by the IRS. The...
by Spirit Rider
Mon Sep 11, 2017 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: HSA medical payments and debit card
Replies: 6
Views: 629

Re: HSA medical payments and debit card

Once, my HSA card was rejected because there was one non-HSA item in the stuff I was buying. I thought that was pretty neat. Are you sure this was an HSA debit card and not an FSA debit card. There is no IRS requirement to verify expenditures on an HSA debit card or by any other means. I have most ...
by Spirit Rider
Mon Sep 11, 2017 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Question Re: Max 401K Contribution
Replies: 28
Views: 1986

Re: Question Re: Max 401K Contribution

I contacted my CPA and here's what she had to say: You cannot contribute any additional employee 401k contribution, since you already reach the max. Employer portion, I guess no one would know. If you don't have expense related to your consulting 1099, you can contribute 15k, 25% of net consulting ...
by Spirit Rider
Mon Sep 11, 2017 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401K advice
Replies: 6
Views: 692

Re: Solo 401K advice

Thanks for clarifying that. I have a solo 401k and only use it for me so haven't delved into some of the finer points. I will say the computation of what you can contribute isn't easy. One year I ran the calculations based on a web site formula and then compared that to what turbo tax computed and ...
by Spirit Rider
Mon Sep 11, 2017 9:04 am
Forum: Investing - Help with Personal Investments
Topic: Question: 2016 Roth IRA Contribution
Replies: 1
Views: 217

Re: Question: 2016 Roth IRA Contribution

Well do nothing is not exactly the correct whole answer. You will have to file a 2017 Form 5329 to allocate the excess contribution balance to a 2017 contribution. You did not need to pay the 6% excise tax. You had/have until the extended filing date 10/16/17 to recharacterize the Roth IRA contribut...
by Spirit Rider
Mon Sep 11, 2017 3:11 am
Forum: Personal Finance (Not Investing)
Topic: Can spouse's LLC deduct JOINT health Insur premiums as business expense?
Replies: 7
Views: 707

Re: Can spouse's LLC deduct JOINT health Insur premiums as business expense?

What a crazy policy: Never equate tax policy to sanity. If both have jobs which don't have healthcare, it's not deductible. In this case it is deductible as a Schedule A medical expense subject to the 10% floor. If one happens to be self employed, it is deductible (but not as a business expense). T...
by Spirit Rider
Mon Sep 11, 2017 3:03 am
Forum: Personal Finance (Not Investing)
Topic: HSA investment drawdown methods
Replies: 8
Views: 678

Re: HSA investment drawdown methods

Since it is a tax advantaged account, except for state tax issues in AL, CA, or NJ. Like an IRA it does not matter how you withdraw funds.
by Spirit Rider
Mon Sep 11, 2017 2:58 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401K advice
Replies: 6
Views: 692

Re: Solo 401K advice

1- Can both of us ( my wife and I open up one business and contribute $18K per person plus $25% of employer contribution ) if business income is only $1000 per year? No. First I don't think a family member can contribute to a solo 401k. It is supposed to be for one employee . Second you can't have ...
by Spirit Rider
Sun Sep 10, 2017 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: Any small business owners use Vanguard for your business 401k?
Replies: 3
Views: 395

Re: Any small business owners use Vanguard for your business 401k?

You have to be careful when you talk about a Vanguard 401k plan or a Fidelity 401k plan. In many cases Vanguard or Fidelity are only acting as custodians for those plans. These plans typically have Third Party Administrators (TPA). Vanguard themselves do not administer 401k plans < $20M. They co-mar...
by Spirit Rider
Sat Sep 09, 2017 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Applying for Credit Card....need to send Drivers License/SS Copies?
Replies: 12
Views: 1125

Re: Applying for Credit Card....need to send Drivers License/SS Copies?

This sounds like they were unable to confirm your identity with their online identity verification system. Probably more a function of one of the asinine identity verification systems they use these days than anything else. Until recently I had problems the LexisNexis identity verification system. I...
by Spirit Rider
Sat Sep 09, 2017 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security bend points/early retirement estimates
Replies: 17
Views: 2607

Re: Social Security bend points/early retirement estimates

Spirit Rider - your post is very helpful. I just went to the site and it is not obvious that you have to hit the estimate button again to state future earnings as zero. I did so and found out that stopping work next year only changes my estimate by one dollar! This would seem to indicate that you a...
by Spirit Rider
Sat Sep 09, 2017 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: To add or not to add to a SEP at 65
Replies: 5
Views: 426

Re: To add or not to add to a SEP at 65

You probably didn't get more responses, because no one disagreed with Jillian's simple yet excellent response.
by Spirit Rider
Sat Sep 09, 2017 2:32 pm
Forum: Personal Consumer Issues
Topic: Luxury car: perception vs reality
Replies: 118
Views: 5951

Re: Luxury car: perception vs reality

My wife had to replace a damaged headlight on her BMW recently. The cost of the part was $2,500. This was just a single headlight. When we expressed our shock at the repair shop, the answer was that we should consider ourselves lucky because they had just replaced a $4,000 headlight on a Lexus... F...
by Spirit Rider
Sat Sep 09, 2017 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security bend points/early retirement estimates
Replies: 17
Views: 2607

Re: Social Security bend points/early retirement estimates

First, your bend points are not applied yearly . You have whatever you have for Social Security (SS) earnings each year. Then at age 60 your Adjusted Indexed Monthly Earnings (AIME) are calculated from your 35 highest wage index adjusted SS earning years. From this your Primary Insurance Amount (PIA...
by Spirit Rider
Sat Sep 09, 2017 11:17 am
Forum: Investing - Help with Personal Investments
Topic: Employing stay at home wife
Replies: 12
Views: 801

Re: Employing stay at home wife

It is generally not OK to pay a spouse or close family member as a 1099 contractor. This is not an arms length transaction and the IRS frowns on this. Close family members should always be W-2 employees unless they are partners. If your wife were to work > 500 hours/year and you have a sole propriet...
by Spirit Rider
Sat Sep 09, 2017 10:47 am
Forum: Personal Consumer Issues
Topic: Luxury car: perception vs reality
Replies: 118
Views: 5951

Re: Luxury car: perception vs reality

"The median annual income of a luxury car owner in the United States, for example, is $99,364, while a Mercedes C-Class sedan, the carmaker's entry-level vehicle and its most popular model, starts at around $40,000" Sounds like the median buyer is doing fine. That assumes you buy into the 50% of ye...
by Spirit Rider
Sat Sep 09, 2017 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Tax deferral IRA and SEP for combination of W2 and 1099
Replies: 7
Views: 448

Re: Tax deferral IRA and SEP for combination of W2 and 1099

Regarding She can make an employee deferral on up to 100% of the net self-employment income up to a maximum of $18K ($24K >= age 50 Per IRS Pub 560, an SEP employee deferral can only be done under a SARSEP set up before 1997. You can't set one of those up now. Perhaps an employee deferral can be do...
by Spirit Rider
Fri Sep 08, 2017 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: Question Re: Max 401K Contribution
Replies: 28
Views: 1986

Re: Question Re: Max 401K Contribution

Also, to the extent the primary W-2 box 5 Social Security (SS) wages + moonlighting S-Corp W-2 box 5 SS wages are > the SS max wage base (2017 = $127,200), you will pay more in FICA with the S-Corp than in SE tax with a sole proprietorship. The OP stated that they have $180K in primary W-2 wages. It...
by Spirit Rider
Fri Sep 08, 2017 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Question Re: Max 401K Contribution
Replies: 28
Views: 1986

Re: Question Re: Max 401K Contribution

We have been assuming sole proprietorship because the OP never mentioned anything about an S-Corp or using W-2 payroll for their 1099 income. The OP should clarify.
by Spirit Rider
Fri Sep 08, 2017 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Question Re: Max 401K Contribution
Replies: 28
Views: 1986

Re: Question Re: Max 401K Contribution

Please listen to avalpert and I. In previous posts, both of us corrected you on the proper way to calculate self-employed employer contributions. You ignored those posts. He has corrected you again. There is no good reason to try and maximize your contributions during the tax year. There are serious...
by Spirit Rider
Fri Sep 08, 2017 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: Question Re: Max 401K Contribution
Replies: 28
Views: 1986

Re: Question Re: Max 401K Contribution

I believe as the employer, you can contribute 25% of your self employment taxable income (gross income-expenses- 1/2 self employment taxes if they apply) which would reduce your taxable income. I have never done this, so you may want to check "the Google" to be sure. I'm sure there must be a "solo ...
by Spirit Rider
Fri Sep 08, 2017 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: On Medicare Part A & Spouse's corporate medical policy which ends 9/30/2017
Replies: 11
Views: 909

Re: On Medicare Part A & Spouse's corporate medical policy which ends 9/30/2017

This is the part that is not clear to me: When your employer coverage ends, you'll get a chance to enroll in Part B without a late enrollment penalty . That means your Medigap open enrollment period will start when you're ready to take advantage of it . If you enrolled in Part B while you still had...
by Spirit Rider
Fri Sep 08, 2017 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Question Re: Max 401K Contribution
Replies: 28
Views: 1986

Re: Question Re: Max 401K Contribution

It is relatively easy after the end of the year to get excess employee deferrals returned with the earnings being taxable income. Depending on your one-participant 401k plan provider, it may be possible to reclassify some or all of the employee contributions as employer contributions. Just be very c...
by Spirit Rider
Fri Sep 08, 2017 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Can spouse's LLC deduct JOINT health Insur premiums as business expense?
Replies: 7
Views: 707

Re: Can spouse's LLC deduct JOINT health Insur premiums as business expense?

It is not a business expense but as stated by avalpert, it can be deducted on Form 1040 line 29 "Self-employed health insurance deduction".

Note: She only qualifies for this deduction for any month you do not have an employer plan that could cover you/her whether you elect to do so or not.
by Spirit Rider
Fri Sep 08, 2017 10:19 am
Forum: Personal Finance (Not Investing)
Topic: On Medicare Part A & Spouse's corporate medical policy which ends 9/30/2017
Replies: 11
Views: 909

Re: On Medicare Part A & Spouse's corporate medical policy which ends 9/30/2017

But here is the important thing you need to know: If you stay on the employer plan and pay the COBRA premium, you may not be able to get on a Medigap plan if you have any serious pre-existing conditions at the time you apply since you will have to go through medical underwriting. Celia, as both the...
by Spirit Rider
Thu Sep 07, 2017 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: On Medicare Part A & Spouse's corporate medical policy which ends 9/30/2017
Replies: 11
Views: 909

Re: On Medicare Part A & Spouse's corporate medical policy which ends 9/30/2017

When you cease your employer coverage, you do have an eight (8) month special enrollment period for Part B. COBRA coverage is primary, Medicare is secondary unless you have End-Stage Renal Disease (ESRD). However, I'm with carolinaman on this. Why would you want to stay on COBRA? Unless your MAGI pu...