Search found 3629 matches

by Spirit Rider
Tue Jul 26, 2016 7:56 pm
Forum: Investing - Help with Personal Investments
Topic: Employer switched from SEPIRA to a different 401k plan..but can I still contribute to my old SEPIRA?
Replies: 1
Views: 108

Re: Employer switched from SEPIRA to a different 401k plan..but can I still contribute to my old SEPIRA?

There is a difference between the employer's SEP IRA plan and your SEP IRA account. A SEP IRA account is still fundamentally a traditional IRA account. You can make traditional IRA contributions to such an account as long as the custodian will accept and identify them as such. Just remember, the ded...
by Spirit Rider
Tue Jul 26, 2016 12:51 am
Forum: Investing - Theory, News & General
Topic: modest advantage of a 401k?
Replies: 5
Views: 357

Re: modest advantage of a 401k?

Also, you have neglected to consider the real tax drag in the taxable account. First, there are the taxation of the dividends and the taxation of capital gains when re-balancing or making any other changes to your portfolio.
by Spirit Rider
Tue Jul 26, 2016 12:43 am
Forum: Investing - Help with Personal Investments
Topic: Pre-Tax and Post-Tax definition for Megaback door
Replies: 8
Views: 635

Re: Pre-Tax and Post-Tax definition for Megaback door

One key to understanding where confusion may occur is the concepts of sub accounts and pro-rata rollovers. Non-deductible traditional 401k contributions existed long before Roth sub accounts and after-tax sub accounts. In fact, in most plans there was only one traditional sub account that held asset...
by Spirit Rider
Mon Jul 25, 2016 5:13 am
Forum: Investing - Help with Personal Investments
Topic: SIMPLE IRA to solo 401K question
Replies: 4
Views: 330

Re: SIMPLE IRA to solo 401K question

Thanks for such a prompt and detailed response! Really appreciate it. Some follow up: Hello! Long-time lurker here. Great topics and contributors. Hopefully I can get some guidance on my particular situation. Currently I am a 35 year old full time W2 employee with Vanguard SIMPLE IRA, opened in ear...
by Spirit Rider
Sun Jul 24, 2016 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Debating on funding Roth IRA from HSA distributions - Thoughts?
Replies: 13
Views: 665

Re: Debating on funding Roth IRA from HSA distributions - Thoughts?

Recordkeeping. You must keep records sufficient to show that: The distributions were exclusively to pay or reimburse qualified medical expenses, The qualified medical expenses had not been previously paid or reimbursed from another source, and The medical expenses had not been taken as an itemized ...
by Spirit Rider
Sun Jul 24, 2016 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: SIMPLE IRA to solo 401K question
Replies: 4
Views: 330

Re: SIMPLE IRA to solo 401K question

Hello! Long-time lurker here. Great topics and contributors. Hopefully I can get some guidance on my particular situation. Currently I am a 35 year old full time W2 employee with Vanguard SIMPLE IRA, opened in early 2014 and I passed the 2 year distribution waiting period earlier this year. I've co...
by Spirit Rider
Sat Jul 23, 2016 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: 401(k) rollover to solo 401(k)-who'll accept???
Replies: 18
Views: 981

Re: 401(k) rollover to solo 401(k)-who'll accept???

the rules for transferring account(s). i.e., if you already have one in place, why WOULDN'T they accept an established, qualified 401(k). Because, there is a BIG difference between an Individual Retirement Account or even a employee 401k account at a previous employer and an Individual Participant ...
by Spirit Rider
Fri Jul 22, 2016 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: IRA beneficiaries question
Replies: 15
Views: 1069

Re: IRA beneficiaries question

As important as the determination of beneficiary(s) is how she receives the IRA. 1. If she inherits the IRA account(s) as an inherited IRA, then RMDs would be required by 12/31 of next year, additional amounts are available penalty free, but not tax free before 59.5, but that would cause the eventua...
by Spirit Rider
Fri Jul 22, 2016 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Financing retirement before SS - when to retire
Replies: 20
Views: 2477

Re: Financing retirement before SS - when to retire

One important consideration is health insurance if you retire before 65 and do not have retiree health insurance through your work. If you retire >= 63.5 you can use COBRA for up to 18 months until Medicare. While COBRA isn't generally the most cost effective for younger people, it generally is for ...
by Spirit Rider
Tue Jul 19, 2016 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: My 16 year old son wants to open a Roth IRA this year. Income minimum?
Replies: 17
Views: 1478

Re: My 16 year old son wants to open a Roth IRA this year. Income minimum?

I am opening a Roth IRA for my niece who is 15. I'm doing it at Fidelity because that is where my account is. We will start with a total market ETF. To encourage her participation I am matching what she contributes up to 15% of her income. When you say you are opening a Roth IRA, do you mean you ha...
by Spirit Rider
Tue Jul 19, 2016 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: My 16 year old son wants to open a Roth IRA this year. Income minimum?
Replies: 17
Views: 1478

Re: My 16 year old son wants to open a Roth IRA this year. Income minimum?

I am opening a Roth IRA for my niece who is 15. I'm doing it at Fidelity because that is where my account is. We will start with a total market ETF. To encourage her participation I am matching what she contributes up to 15% of her income. When you say you are opening a Roth IRA, do you mean you ha...
by Spirit Rider
Tue Jul 19, 2016 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: Handling 529 withdrawals and taxes for dependent child
Replies: 5
Views: 428

Re: Handling 529 withdrawals and taxes for dependent child

1. Who the 1099-Q goes to is dependent on the type of withdrawal. Withdrawals paid directly to an educational institution will be reported on the beneficiary's SSN. All other withdrawals will be reported on the 529 owner's SSN. 2. You can only claim her as a dependent if your daughter's age < 19 or ...
by Spirit Rider
Mon Jul 18, 2016 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: Recourse for a Lender not Following through on a on a pre-approval
Replies: 12
Views: 1233

Re: Recourse for a Lender not Following through on a on a pre-approval

A pre-approval does not constitute a commitment. You are still subject to full underwriting.

Pre-approval != guaranteed mortgage.
by Spirit Rider
Mon Jul 18, 2016 12:00 am
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA question
Replies: 13
Views: 997

Re: Inherited IRA question

This may not matter to you, but when you retire and start taking distributions, it probably makes sense to take distributions out of this account first. When it is depleted, this is one less account and RMD to worry about. Would inherited IRA withdrawals satisfy tIRA RMDs? I'm doubtful they will. N...
by Spirit Rider
Sun Jul 17, 2016 2:07 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA question
Replies: 13
Views: 997

Re: Inherited IRA question

One thing to keep in mind where this is such a small percentage of your total tax deferred accounts. The Supreme court has ruled that inherited IRAs are not protected against creditors. This may not matter to you, but when you retire and start taking distributions, it probably makes sense to take di...
by Spirit Rider
Sat Jul 16, 2016 7:41 pm
Forum: Investing - Theory, News & General
Topic: Fidelity four-in-one index fund lower ER, invest everything in it?
Replies: 27
Views: 2356

Re: Fidelity four-in-one index fund lower ER, invest everything in it?

Fidelity has a history of temporarily lowering their ER's through "corporate credit". ER can go up once you stop paying attention to it. I just don't understand why this Fear Uncertainty Doubt (FUD) keeps getting raised on this forum. People have been stating this nonsense for over 15 yea...
by Spirit Rider
Fri Jul 15, 2016 11:16 am
Forum: Investing - Help with Personal Investments
Topic: Where to Put MRD Proceeds
Replies: 9
Views: 741

Re: Where to Put MRD Proceeds

Two additional thoughts for better returns than MMs. You can easily get 1.0%+ at a variety of FDIC insured online banks (Ally, etc...) I Bonds. The compound rate (0.26%) for new purchases is rather low right now, but is likely to be much higher for the period beginning November 1st and over the long...
by Spirit Rider
Wed Jul 13, 2016 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: My First RMD
Replies: 11
Views: 1392

Re: My First RMD

Are you sure you have to take RMDs for this year.

IRS regulations allow you to delay RMDs while still working even after the year you turn 70.5. You only are required to take RMDs in this case if your plan requires it.
by Spirit Rider
Wed Jul 13, 2016 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: Boss cutting salary in response to employee not doing "job"
Replies: 78
Views: 8617

Re: Boss cutting salary in response to employee not doing "job"

I highly doubt she has any sort of employment contract. She may have an offer letter or a job description, but rarely in the US, outside of executive-level positions or unionized positions do employees have actual contracts. That may be your experience, but employment contracts are anything but rar...
by Spirit Rider
Tue Jul 12, 2016 10:56 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 vs. W2
Replies: 17
Views: 1317

Re: 1099 vs. W2

NoNonsenseLandlord wrote:An S-Corp can pay a salary, and then pay a dividend. Can a 1099 save self employment taxes by giving a dividend?
Nope
by Spirit Rider
Mon Jul 11, 2016 11:48 pm
Forum: Investing - Help with Personal Investments
Topic: New SOLO 401K assistance
Replies: 19
Views: 1133

Re: New SOLO 401K assistance

You are missing the point. He wants all the options available to a 401k, especially the ability to do Mega Backdoor Roth contributions. That is simply not possible with Fidelity or any other mainstream Solo 401k provider.
by Spirit Rider
Mon Jul 11, 2016 11:34 pm
Forum: Investing - Help with Personal Investments
Topic: Put bonds in Inherited IRA, stock in non-inherited?
Replies: 4
Views: 348

Re: Put bonds in Inherited IRA, stock in non-inherited?

What other accounts do you have? It does make general sense to reduce the tax hit that RMDs cause. However, all tax advantaged accounts are generally better locations for tax inefficient investments. So probably tax inefficient assets with the lowest volatility and lowest returns (CDs, short term bo...
by Spirit Rider
Mon Jul 11, 2016 9:53 pm
Forum: Investing - Help with Personal Investments
Topic: New SOLO 401K assistance
Replies: 19
Views: 1133

Re: New SOLO 401K assistance

I just want to make sure that you understand that for those fees you are only receiving document services with support . You are acting as the administrator, trustee, and fiduciary. All services provided by other providers. Also, like most providers except Vanguard, their calculator is incorrect/inc...
by Spirit Rider
Mon Jul 11, 2016 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: New SOLO 401K assistance
Replies: 19
Views: 1133

Re: New SOLO 401K assistance

TD Ameritrade as well as the other mainstream solo 401k providers do not offer after-tax contributions. I don't know for sure, but think in-service withdrawals might be unlikely. For example my solo 401k plan at a major provider does not allow in-service withdrawals of even employer contributions be...
by Spirit Rider
Mon Jul 11, 2016 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: No Company Match Until 1 Year of Service?
Replies: 30
Views: 2811

Re: No Company Match Until 1 Year of Service?

I guess that depends on your investment approach. If you typically max at $18k, negotiate a salary $18k higher plus the tax offset. Build e fund, put party in Roth, put in traditional, put in traditional then backdoor it, put in taxable...endless possibilities. That makes absolutely no sense. Every...
by Spirit Rider
Sun Jul 10, 2016 10:12 pm
Forum: Investing - Help with Personal Investments
Topic: making use of a solo 401k
Replies: 9
Views: 983

Re: making use of a solo 401k

Short answer. You can not use a SIMPLE IRA to increase your employee salary deferral limit. There is only one combined employee salary deferral limit across all plans available to a for profit business. You and your wife should open individual 401k plans. She can make a $2,788 employee salary deferr...
by Spirit Rider
Sun Jul 10, 2016 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 vs. W2
Replies: 17
Views: 1317

Re: 1099 vs. W2

Get a business entity set up. LLC, S-Corp, C-Corp, or something. You should not get a 1099. Write off a lot more, as your office will be at home. A single member LLC by default is a disregarded entity which is treated tax wise as a sole proprietorship. Your client is most definitely required to iss...
by Spirit Rider
Sat Jul 09, 2016 11:05 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 vs. W2
Replies: 17
Views: 1317

Re: 1099 vs. W2

Get a business entity set up. LLC, S-Corp, C-Corp, or something. You should not get a 1099. Write off a lot more, as your office will be at home. A single member LLC by default is a disregarded entity which is treated tax wise as a sole proprietorship. Your client is most definitely required to iss...
by Spirit Rider
Sat Jul 09, 2016 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 vs. W2
Replies: 17
Views: 1317

Re: 1099 vs. W2

Thanks for the responses. I'm incorporating the equivalent of vacation/sick time into my calculation by reducing the number of weeks of paid work a year. I'm also looking at my salary as all-in to include 3% 401k contribution they provide, bonus etc. It is important to factor in all of your grossed...
by Spirit Rider
Sat Jul 09, 2016 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 vs. W2
Replies: 17
Views: 1317

Re: 1099 vs. W2

Costs: 1. Self Employment Tax - equivalent to employer side of ss/medicare tax 2. Health Insurance Costs 3. Flexible Spending Accounts - I only use transport so this essentially trades off from an FSA to a business expense 4. Potential need for tax accountant or at least additional time spent on ta...
by Spirit Rider
Fri Jul 08, 2016 8:32 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited Traditional 401k into Roth IRA
Replies: 18
Views: 1515

Re: Inherited Traditional 401k into Roth IRA

The deadline for inherited accounts is by 12/31 of the year following the year of death. You can either directly inherit a qualified plan or do a direct transfer to an inherited IRA. A qualified plan can allow either a 5-year distribution period or a lifetime distribution period. In most plans you ...
by Spirit Rider
Fri Jul 08, 2016 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited Traditional 401k into Roth IRA
Replies: 18
Views: 1515

Re: Inherited Traditional 401k into Roth IRA

Workplace savings plan is in fact another term for a qualified business retirement plan.

You will not find the forms for those online. You have to contact Fidelity's Net Benefits to have the forms sent to you.
by Spirit Rider
Fri Jul 08, 2016 3:07 pm
Forum: Investing - Theory, News & General
Topic: Small business 401k [choosing a provider]
Replies: 8
Views: 414

Re: Small business 401k [choosing a provider]

You definitely should read this thread. Avoid Ubiquity Savings as 401(k) provider until they fix Mar/Apr 2016 problems Even before this recent specific period, there were several other complaints over the past year about Ubiquity. On the other hand, there have been relatively few issues reported ove...
by Spirit Rider
Fri Jul 08, 2016 2:08 am
Forum: Personal Finance (Not Investing)
Topic: 529 Account - Recommended Asset Limit
Replies: 6
Views: 838

Re: 529 Account - Recommended Asset Limit

Keep in mind that distributions from a grandparent's 529 are considered for FAFSA as non-taxed income to the student. This has the most detrimental affect on the EFC. Although recent changes in the FAFSA allow this to occur in the last two years of education without affecting the EFC for those years...
by Spirit Rider
Fri Jul 08, 2016 1:45 am
Forum: Investing - Help with Personal Investments
Topic: Inherited Traditional 401k into Roth IRA
Replies: 18
Views: 1515

Re: Inherited Traditional 401k into Roth IRA

A spouse can always do a rollover of inherited retirement assets to their own IRA. The only reason I can think of for rolling to an inherited IRA is if they need the assets to live on and they are < 59.5. This allows withdrawals before 59.5 without a penalty. If a spouse is >= 59.5, they should alwa...
by Spirit Rider
Fri Jul 08, 2016 12:33 am
Forum: Investing - Help with Personal Investments
Topic: Inherited Traditional 401k into Roth IRA
Replies: 18
Views: 1515

Re: Inherited Traditional 401k into Roth IRA

The deadline for inherited accounts is by 12/31 of the year following the year of death. You can either directly inherit a qualified plan or do a direct transfer to an inherited IRA. A qualified plan can allow either a 5-year distribution period or a lifetime distribution period. In most plans you c...
by Spirit Rider
Thu Jul 07, 2016 11:38 pm
Forum: Investing - Theory, News & General
Topic: Why keep HSA funds uninvested to avoid fees?
Replies: 11
Views: 1264

Re: Why keep HSA funds uninvested to avoid fees?

You are right to point out the lost opportunity cost of keeping large sums in an account to avoid a small monthly fee.

People tend to not to keep things in perspective. You could see this happening with Bogleheads where there is such a focus on avoiding fees at all cost.
by Spirit Rider
Thu Jul 07, 2016 2:18 pm
Forum: Personal Consumer Issues
Topic: Dealers list used cars way above KBB value, why?
Replies: 25
Views: 2455

Re: Dealers list used cars way above KBB value, why?

Also, keep in mind that on used cars, condition is everything. A car in "good" condition still represents a decent range of condition. So these cars "could" be on the higher end.
by Spirit Rider
Thu Jul 07, 2016 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: No Company Match Until 1 Year of Service?
Replies: 30
Views: 2811

Re: No Company Match Until 1 Year of Service?

The IRS allows 1 year and 1,000 hours of service, plus age 21 as the maximum restrictions. Many adoption agreements from providers and TPAs default to this. So a company has to proactively reduce these for better terms.
by Spirit Rider
Thu Jul 07, 2016 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Safe Stolen
Replies: 56
Views: 6764

Re: Safe Stolen

The fallout seems to be a cluster. Safe was for fireproofing documents, not for security. It had the combination right on it. Bozos could have opened it, found nothing valuable and left the safe. - opened insurance claim - deal with insurance company Depending on how the insurance company views thi...
by Spirit Rider
Thu Jul 07, 2016 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: i401k - am I missing anything?
Replies: 8
Views: 744

Re: i401k - am I missing anything?

I would advise caution with your fact pattern. You can only open a i401k with earned income from self-employment. (2) Earned income, (A) In general The term “earned income” means the net earnings from self-employment (as defined in section 1402(a)), but such net earnings shall be determined—, (i) on...
by Spirit Rider
Thu Jul 07, 2016 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Inherited Traditional 401k into Roth IRA
Replies: 18
Views: 1515

Re: Inherited Traditional 401k into Roth IRA

For those with the opportunity to think ahead (with one's own estate planning,) my understanding is that one can convert a 401k to an IRA and then to a Roth. Of course the tax rates would be different. We are not talking about Traditional accounts, but rather Inherited accounts. Traditional 401k ->...
by Spirit Rider
Thu Jul 07, 2016 11:22 am
Forum: Investing - Help with Personal Investments
Topic: No Company Match Until 1 Year of Service?
Replies: 30
Views: 2811

Re: No Company Match Until 1 Year of Service?

KlingKlang wrote:The company that I worked for in the 90's had a company match of 0.25% on the first 6%, vested after 7 years. Yes boys and girls, that's a whole shiny quarter for every $100 that I contributed.

I seriously doubt you had a 0.25% match. It is much more likely you had a 25% match (0.25).
by Spirit Rider
Thu Jul 07, 2016 11:04 am
Forum: Personal Finance (Not Investing)
Topic: HCE [Highly compensated employee]
Replies: 15
Views: 1863

Re: HCE [Highly compensated employee]

The plan is a safe harbor one, but I don't exactly know that that means?? I'm maxing out the pre-tax traditional 401k with 18k, and I want to start contributing after tax money and then roll that into a Roth IRA OR Roth 401K, depending on which this plan allows for (I'm still looking into that). It...
by Spirit Rider
Tue Jul 05, 2016 3:48 pm
Forum: Investing - Theory, News & General
Topic: Is Strategic Asset Allocation Flawed?
Replies: 13
Views: 802

Re: Is Strategic Asset Allocation Flawed?

Are we talking about AA (Stock/Bond) or diversification? For example: One can play with diversification within equities to address some of OP's concerns without changing AA. Stocks and fixed income may be the two main assets classes, but asset allocation is not solely reserved for just those two. I...
by Spirit Rider
Mon Jul 04, 2016 10:29 am
Forum: Personal Finance (Not Investing)
Topic: What is your credit card APR?
Replies: 40
Views: 1672

Re: What is your credit card APR?

Like others, I don't know and don't care. However, now I will have to check and report the data points for the OP. ⋅ 17.49% ⋅ 8.24% ⋅ 15.65% ⋅ 12.24% ⋅ 13.24% ⋅ 13.24% ⋅ 17.24 ⋅ 13.49% ⋅ 15.49% ⋅ 12.2...
by Spirit Rider
Mon Jul 04, 2016 3:32 am
Forum: Investing - Help with Personal Investments
Topic: Withdrawing Additional Funds from Inherited IRA
Replies: 10
Views: 1034

Re: Withdrawing Additional Funds from Inherited IRA

Additional reasons for using the Inherited IRA over the owned IRA: ⋅ Some of the owner IRA can be converted to a Roth IRA judiciously after retirement, but before RMDs, to reduce future RMDs. The Inherited IRA may not. ⋅ The owned IRA can be folded into a spouse's IRA. ⋅&nbs...
by Spirit Rider
Sat Jul 02, 2016 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: Living Trust ($495)- SoCal
Replies: 21
Views: 1780

Re: Living Trust ($495)- SoCal

First, living trusts are one of the most overused estate planning items. Why do you think you need a living trusts.

Second, I can't conceive of any legitimate lawyer being able to provide the items described on that website for only $495.
by Spirit Rider
Sat Jul 02, 2016 10:43 pm
Forum: Personal Finance (Not Investing)
Topic: FDIC Insurance Limit with Beneficiaries (no POD account allowed at bank)
Replies: 7
Views: 589

Re: FDIC Insurance Limit with Beneficiaries (no POD account allowed at bank)

That is the real question. When describing revocable trusts, is this bank referring to informal trust accounts or accounts owned by a separate formal revocable trust instrument. If it is the former it is as described by Alan. S., no different than a POD account.
by Spirit Rider
Sat Jul 02, 2016 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: Private company shares [buying rights from shareholder]
Replies: 10
Views: 701

Re: Private company shares [buying rights from shareholder]

The way this can be a scam is that you have no idea of the real viability of the company. Never assume any "friend" has your best interest in mind. Consider the fact that a shareholder in a private company has no easy way to convert those shares unless the company is acquired or goes publi...

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