Search found 3347 matches

by Spirit Rider
Sat Apr 30, 2016 7:49 pm
Forum: Investing - Help with Personal Investments
Topic: 401k My New employer is offering... after 1yr. Matching percent not Understood. Please help.
Replies: 13
Views: 821

Re: 401k My New employer is offering... after 1yr. Matching percent not Understood. Please help.

I don't know if normal is the word I would use, but it is not uncommon for a company to require one year of service before matching. Unfortunately, even though whoever writes these descriptions was probably born here, writing in clear English is foreign to them. This means they will match 25% of you...
by Spirit Rider
Sat Apr 30, 2016 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k question
Replies: 9
Views: 433

Re: Solo 401k question

There is no substantial difference in the maximum solo 401k contribution between an S-Corp paying its owner-employee the max salary and a sole proprietorship with the same net profit exclusive of payroll costs. One real difference is that the S-Corp employer contribution is not subject to FICA, wher...
by Spirit Rider
Sat Apr 30, 2016 10:05 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k question
Replies: 9
Views: 433

Re: Solo 401k question

Your accountant is not correct. Solo 401k contributions for an S-Corp are not directly based on the corporations profit's, but rather the owner-employee's W-2 compensation. Employee salary deferrals can technically be up to 100% of compensation. However, it must be deducted from payroll for compensa...
by Spirit Rider
Fri Apr 29, 2016 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: Tips / suggestions on patenting a tool and potentially marketing it?
Replies: 10
Views: 412

Re: Tips / suggestions on patenting a tool and potentially marketing it?

Not to be a wet blanket. However, he developed the idea for this tool in the performance of his work duties. The prototype of this tool was developed by a work employee on work equipment and one would assume work supplies. The tool was tested and is utilized by the inventor and his colleagues in the...
by Spirit Rider
Fri Apr 29, 2016 8:43 am
Forum: Personal Finance (Not Investing)
Topic: 401K Total contribution limit
Replies: 7
Views: 803

Re: 401K Total contribution limit

The 2015/16 employee salary deferral limit is $18K (+6K >= age 50). Each person has one combined deferral limit between all Simple IRA, 401k and 403B plans. The 2015/16 annual addition limit is $53K and does not include the catchup contribution. You have a separate total limit for each unrelated emp...
by Spirit Rider
Thu Apr 28, 2016 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: A/C outside unit suggestions
Replies: 9
Views: 746

Re: A/C outside unit suggestions

It is not simply a matter of the outside unit. Your old unit most certainly uses R-22 refrigerant. The new unit will most certainly use R-410a. These are two very different refrigerants operating with much different pressure/temperature curves. The condenser and the evaporator must be matched units....
by Spirit Rider
Thu Apr 28, 2016 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Physician going from w2 to 1099. S Corp?
Replies: 1
Views: 205

Re: Physician going from w2 to 1099. S Corp?

I know nothing about the NY state and city tax issues, so you will have to determine how that impacts what I am going to say. That said, if NYC finds a away to tax unincorporated businesses, I'm inclined to think they do something similar for incorporated businesses. From a FICA point view, it is pr...
by Spirit Rider
Wed Apr 27, 2016 7:17 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Solo 401k to Traditional Solo 401k [Changing Small Biz Retirement Options]
Replies: 17
Views: 512

Re: Roth Solo 401k to Traditional Solo 401k [Changing Small Biz Retirement Options]

Perhaps there is something different about the structure of a Solo 401k as compared to an ordinary 401k. That't all I can imagine. The more I think about this, the more I'm not sure this is a problem, certainly for individual 401k plans. We are just surprised, because it has never come up before an...
by Spirit Rider
Wed Apr 27, 2016 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Solo 401k to Traditional Solo 401k [Changing Small Biz Retirement Options]
Replies: 17
Views: 512

Re: Roth Solo 401k to Traditional Solo 401k [Changing Small Biz Retirement Options]

There is a difference between the individual 401k plan and the 401k account(s) . You adopt an individual 401k plan, while you open individual 401k account(s). The communication from Vanguard is very clear that you only opened a Roth account and that you would only have to open the additional traditi...
by Spirit Rider
Wed Apr 27, 2016 4:52 pm
Forum: Personal Consumer Issues
Topic: Who's used Extended Stay hotels?
Replies: 27
Views: 2105

Re: Who's used Extended Stay hotels?

We have a friend who works for Marriott, but even with a discount the Residence Inns are much more expensive than Extended Stay. So that is all our family uses now. My wife can't stand leaving our dogs in a kennel, so we usually have to get a hotel that accepts pets. At Marriott properties, even wh...
by Spirit Rider
Wed Apr 27, 2016 1:50 pm
Forum: Personal Consumer Issues
Topic: Semi-Retirement and Mexico/Central America
Replies: 14
Views: 1351

Re: Semi-Retirement and Mexico/Central America

It is true that most of these countries will allow you to stay indefinitely on Tourist Visas as long as you leave at least once every 90 days. However, some make it relatively easy to get more permanent Visas. I think Panama a Retiree Visa that only requires a minimum of $1K/month pension, SS, annui...
by Spirit Rider
Wed Apr 27, 2016 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: How do HSA accounts pass if the owner dies?
Replies: 14
Views: 1436

Re: How do HSA accounts pass if the owner dies?

I have also included directions to my beneficiary to deduct any un-reimbursed expenses from the value of the account. I keep meticulous and easily found records. This may not be defined in the plain language text of the IRC, but it seems consistent to me with other guidance. I'm curious how this wo...
by Spirit Rider
Wed Apr 27, 2016 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: How do HSA accounts pass if the owner dies?
Replies: 14
Views: 1436

Re: How do HSA accounts pass if the owner dies?

I assume you say that just because of the cleaner tax treatment of the Roth upon death? Also I would love to hear a quick and dirty of how you track your unreimbursed HSA expenses in such a way that they are easy for you and others to decipher over the long haul. I have all of mine saved in one man...
by Spirit Rider
Wed Apr 27, 2016 9:05 am
Forum: Personal Finance (Not Investing)
Topic: S Corp - physician side gig
Replies: 1
Views: 279

Re: S Corp - physician side gig

First, let's address the reasonable salary question. You absolutely can not have an unreasonably low salary, just because you have a full time primary W-2 employment. A reasonable salary is solely based on the circumstances of the S-Corp. However, if this were an eBay business where you spent a smal...
by Spirit Rider
Tue Apr 26, 2016 11:02 pm
Forum: Personal Finance (Not Investing)
Topic: How do HSA accounts pass if the owner dies?
Replies: 14
Views: 1436

Re: How do HSA accounts pass if the owner dies?

One other thing I think is important. If you are in the withdrawal phase and you have both Roth IRA balances and un-reimbursed HSA balances and you need tax free distributions, always use the un-reimbursed HSA balance first.
by Spirit Rider
Tue Apr 26, 2016 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: How do HSA accounts pass if the owner dies?
Replies: 14
Views: 1436

Re: How do HSA accounts pass if the owner dies?

IANAL and this is most definitely not advice, but I have decided to continue deferring. My plan is to only take reimbursements before 65 if necessary. Then I plan to use the built up un-reimbursed HSA balance from 65-70. This allows me to use the tax-free income then. I have also included directions...
by Spirit Rider
Tue Apr 26, 2016 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Card FICOs and other Scores
Replies: 7
Views: 857

Re: Credit Card FICOs and other Scores

I really don't know that much more about the Vantage score. As I stated earlier, it was created by the three credit reporting agencies to compete with FICO. It really hasn't seen that much use outside of obtaining scores on their own web sites and free sites like Credit Karma. Its scores can be diff...
by Spirit Rider
Tue Apr 26, 2016 3:09 pm
Forum: Investing - Help with Personal Investments
Topic: When to "cash-in" a 529?
Replies: 12
Views: 1330

Re: When to "cash-in" a 529?

You shouldn't "switch to cash". You should have a glide slope based on risk. I would think that you would still want a nominal amount in stocks and rest in some split between bonds and "cash". This is probably one of the best places for a controlled glide slope fund. I am sure wh...
by Spirit Rider
Tue Apr 26, 2016 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: How do HSA accounts pass if the owner dies?
Replies: 14
Views: 1436

Re: How do HSA accounts pass if the owner dies?

We have -- at the moment -- more than enough documented expenses to fully use the balance in all HSA accounts with no tax consequences. Some of those expenses stretch back to 2013. Can the HSA be used to reimburse those prior year expenses after our death? Do the expenses get reimbursed to our esta...
by Spirit Rider
Tue Apr 26, 2016 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Card FICOs and other Scores
Replies: 7
Views: 857

Re: Credit Card FICOs and other Scores

Yeah, it is rather great that the credit card issuers give you free credit scores now. I checked mine and noticed that I do now have credit scores on my Chase. To make your table a little more complete, credit scores are based on the score model and the reference credit report. Here are what my read...
by Spirit Rider
Tue Apr 26, 2016 12:15 pm
Forum: Personal Consumer Issues
Topic: Teens cutting lawns and liability
Replies: 9
Views: 1487

Re: Teens cutting lawns and liability

I have done this. Just check with your insurance agent to make sure you are covered. Also, I only hired them if they had other customers and used their own/parents equipment. Otherwise they could be considered employees.
by Spirit Rider
Tue Apr 26, 2016 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: Car wreck with ambulance bill. Is it wise to use auto insurance for medical payments?
Replies: 17
Views: 1286

Re: Car wreck with ambulance bill. Is it wise to use auto insurance for medical payments?

This can be highly variable depending what your specific state insurance laws/regulations are. In my state you are free to choose whether to file claims with either the medical insurance company or the auto insurance company. However, it is almost always better to claim under the medical insurance e...
by Spirit Rider
Mon Apr 25, 2016 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: 401k money at poverty level, zero tax
Replies: 1
Views: 590

Re: 401k money at poverty level, zero tax

The poverty level is not relevant. All that matters is possible deductions, exemptions and credits. For 2016, the MFJ standard deduction is $12,600 and two personal exemptions ($4,050) are an additional $8,100. So that would be total of $20,700. There is no way to avoid the 20% withholding on 401k w...
by Spirit Rider
Sun Apr 24, 2016 6:22 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover SEP-IRA into Individual (Solo) 401k?
Replies: 7
Views: 279

Re: Rollover SEP-IRA into Individual (Solo) 401k?

I'm considering starting an Individual 401k to increase our family retirement contributions; I would make contributions for myself and my spouse. I understand that if I pay my children (up to age 21) as employees (filing W-2s, etc.), I can still make Individual 401k contributions. (Of course, then ...
by Spirit Rider
Sun Apr 24, 2016 6:18 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover SEP-IRA into Individual (Solo) 401k?
Replies: 7
Views: 279

Re: Rollover SEP-IRA into Individual (Solo) 401k?

Vanguard's solo 401k does not accept rollovers, but Fidelity's does. You might talk to Fidelity about this. Also, Vanguard does not allow you to purchase their Admiral Class shares in their individual 401k. Fidelity does allow you to purchase their Advantage Class shares in their solo 401k. For exa...
by Spirit Rider
Sun Apr 24, 2016 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Am I being Bamboozled?
Replies: 50
Views: 4776

Re: Irrevocable Trust - Am I being Bamboozled?

And take it easy on those who don't like the trust scheme. The explicit purpose of the trust is to move money that she had available to pay for her care to her heir(s), and to push the financial burden of her care, which she could have carried for some time, onto the taxpayers through the VA supple...
by Spirit Rider
Sun Apr 24, 2016 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Am I being Bamboozled?
Replies: 50
Views: 4776

Re: Irrevocable Trust - Am I being Bamboozled?

Ok, let's not call it asset hiding and use the lawyer term "divestment strategy." The VA is already onto the OP's kind of scheme. http://www.canhr.org/publications/newsletters/NetNews/Feature_Article/NN_2015Q1.htm . Thanks for the reference. Here are the proposed rules direct from the Fed...
by Spirit Rider
Sat Apr 23, 2016 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Am I being Bamboozled?
Replies: 50
Views: 4776

Re: Irrevocable Trust - Am I being Bamboozled?

I don't know the details, but I believe such a trust is for the benefit of the original beneficiary while they are alive and then the assets transfer to successor beneficiary(beneficiaries). While this is a less used trust, it should function the same as one for Medicaid purposes. The reason why thi...
by Spirit Rider
Sat Apr 23, 2016 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: UTMA, Florida: Custodian In Control Past Termination Date?
Replies: 41
Views: 1409

Re: UTMA, Florida: Custodian In Control Past Termination Date?

I had a custodial IRA for each of my two kids. I would put whatever money they earned in an IRA, and then give them the same amount of money to spend. They knew about the accounts. Please educate me. What is a "custodial" IRA and how does it work? I was under the impression that an "...
by Spirit Rider
Sat Apr 23, 2016 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Am I being Bamboozled?
Replies: 50
Views: 4776

Re: Irrevocable Trust - Am I being Bamboozled?

IANAL, but am a trustee of a trust. I concur with most of what NMJack has said, except there are no gifts or gift taxes involved here. In this case, all of the beneficiary's assets are simply transferred to the trust for the benefit of the beneficiary. This would be different if the son were gifting...
by Spirit Rider
Sat Apr 23, 2016 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: UTMA, Florida: Custodian In Control Past Termination Date?
Replies: 41
Views: 1409

Re: UTMA, Florida: Custodian In Control Past Termination Date?

Vanguard is right about UTMA accounts in many states. You are supposed to turn the assets over at age of termination. However, nothing short of a court order obtained by the minor would cause most financial institutions to turn the funds over to the minor without the explicit release of the custodia...
by Spirit Rider
Sat Apr 23, 2016 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Irrevocable Trust - Am I being Bamboozled?
Replies: 50
Views: 4776

Re: Irrevocable Trust - Am I being Bamboozled?

Placing assets in an irrevocable trust was a valid option for reducing your assets for VA pension and Aid and Attendance benefits. This is just like a similar trust to qualify for Medicaid. Medicaid proof trusts have had a 5-year look-back period for many years. The VA benefits have had no such requ...
by Spirit Rider
Sat Apr 23, 2016 11:26 am
Forum: Personal Finance (Not Investing)
Topic: UTMA, Florida: Custodian In Control Past Termination Date?
Replies: 41
Views: 1409

Re: UTMA, Florida: Custodian In Control Past Termination Date?

I gave the relevant sections of the Florida Statutes (revised 07/01/15). This not the vague original language of the UTMA model law. They are very specific, with such language as Shall, Must, minor has Absolute Right at 21, custodian has No Liability if they release the funds to the minor at 21, etc...
by Spirit Rider
Fri Apr 22, 2016 11:54 pm
Forum: Personal Finance (Not Investing)
Topic: UTMA, Florida: Custodian In Control Past Termination Date?
Replies: 41
Views: 1409

Re: UTMA, Florida: Custodian In Control Past Termination Date?

Florida has greatly revised their UTMA statutes (Chapter 710) within the last year. Here is my reading of this (IANAL). While these changes at first glance appear to allow the retention of assets in the UTMA until 25. The reality is that the changes have given the minor more control over the distrib...
by Spirit Rider
Fri Apr 22, 2016 8:26 pm
Forum: Investing - Help with Personal Investments
Topic: Social Security timing
Replies: 8
Views: 902

Re: Social Security timing

You should be aware, if she does not qualify for her own SS entitlement, she might not qualify for a Medicare Part A free premium. In such a case, the Medicare Part A premium could be up to $411/month. I don't know how it is calculated. How close is she to 40 quarters? For 2016, the minimum/quarter...
by Spirit Rider
Fri Apr 22, 2016 9:57 am
Forum: Investing - Help with Personal Investments
Topic: Social Security timing
Replies: 8
Views: 902

Re: Social Security timing

You should be aware, if she does not qualify for her own SS entitlement, she might not qualify for a Medicare Part A free premium. In such a case, the Medicare Part A premium could be up to $411/month. I don't know how it is calculated. How close is she to 40 quarters? For 2016, the minimum/quarter ...
by Spirit Rider
Fri Apr 22, 2016 8:56 am
Forum: Investing - Help with Personal Investments
Topic: Options for 1099 Contractors? [for retirement and lower taxes]
Replies: 2
Views: 277

Re: Options for 1099 Contractors? [for retirement and lower taxes]

There are three basic business retirement plans available to owner-employees SEP IRA, SIMPLE IRA and individual 401k. The SIMPLE IRA does not provide any real benefit over the other two. A SEP IRA allows the self-employed to make an employer contribution of up to 20% of net business profit - 1 / 2 S...
by Spirit Rider
Thu Apr 21, 2016 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Best option for one month of health insurance- bw residency and fellowship?
Replies: 3
Views: 378

Re: Best option for one month of health insurance- bw residency and fellowship?

You actually have 60 days from the receipt of the COBRA packet to make a COBRA election. This is usually two weeks after loss of coverage. You then have 45 days after the election date to pay the first premiums. It is not wise to cut this to close, but you can easily get three months total. However,...
by Spirit Rider
Thu Apr 21, 2016 10:39 am
Forum: Investing - Help with Personal Investments
Topic: Roth Solo 401k to Traditional Solo 401k [Changing Small Biz Retirement Options]
Replies: 17
Views: 512

Re: Roth Solo 401k to Traditional Solo 401k [Changing Small Biz Retirement Options]

According to the IRS, you can close and rollover the balance of these accounts. Whether or not a particular plan will make it difficult is another question. https://www.irs.gov/pub/irs-tege/rollover_chart.pdf <-The IRS chart of which kinds of accounts can be rolled into which other kinds of account...
by Spirit Rider
Wed Apr 20, 2016 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k contribution affect earned income for Roth IRA?
Replies: 9
Views: 502

Re: Roth 401k contribution affect earned income for Roth IRA?

The easiest way conceptualize this is to think about taxable compensation. Notwithstanding the few exceptions (alimony, etc...), for most people this is W-2 compensation and/or self-employment compensation. For W-2s this is what is in box 1. A traditional 401k employee salary deferral does reduce bo...
by Spirit Rider
Wed Apr 20, 2016 1:59 pm
Forum: Investing - Theory, News & General
Topic: Self Directed IRA question
Replies: 17
Views: 928

Re: Self Directed IRA question

Many people like to think they are smarter than the market and can get rich quick. The market and the IRS are both unforgiving. Like most things sold to investors, these self-directed accounts are for the benefit of the seller and not the buyer. A truly smart person stays away from any products sol...
by Spirit Rider
Tue Apr 19, 2016 7:51 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k contribution affect earned income for Roth IRA?
Replies: 9
Views: 502

Re: Roth 401k contribution affect earned income for Roth IRA?

Contributing to a Roth 401k most definitely does NOT reduce the income available to contribute to an IRA.
by Spirit Rider
Tue Apr 19, 2016 11:58 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k
Replies: 7
Views: 654

Re: Solo 401k

I have heard that Fidelity requires a check for new solo401k contributions, which will be a PITA if true. But I have not gotten to the point of making any direct contributions to test it out yet. This is true. You can only contribute by check -- either in person at the branch or by mail. Not entire...
by Spirit Rider
Tue Apr 19, 2016 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Have You Done A Solo 401k Spousal Option
Replies: 16
Views: 1518

Re: Have You Done A Solo 401k Spousal Option

Yes, for a sole proprietor line 28 is the sum of employee salary deferral and employer contribution.

I think you will want a different EIN for the LLC. Your solo 4o1k provider might be able to just amend the plan to change the employer name. You are the same tax entity.
by Spirit Rider
Tue Apr 19, 2016 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k question
Replies: 6
Views: 564

Re: Solo 401k question

Spirit Rider, Can you explain more about a Defined Benefit and Defined Contribution plan and if their max contributions are higher than a solo401k ? Do they have other names? Surprisingly, them are pretty much what they are called. In a defined contribution plan (401k, etc...), both the employee an...
by Spirit Rider
Mon Apr 18, 2016 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Have You Done A Solo 401k Spousal Option
Replies: 16
Views: 1518

Re: Have You Done A Solo 401k Spousal Option

EmployeE compensation is subject to FICA, even if it is deferred from income tax.

EmployeR contributions are a benefit and are not subject to either FICA or income tax.
by Spirit Rider
Mon Apr 18, 2016 10:25 pm
Forum: Investing - Help with Personal Investments
Topic: Have You Done A Solo 401k Spousal Option
Replies: 16
Views: 1518

Re: Have You Done A Solo 401k Spousal Option

1. Compensation is before FICA or the employee salary deferral is deducted. It is equal to W-2 box 5, as Medicare is applied to 100% of compensation. So the compensation would be $19,491 2. The nominal employer contribution would be $4,873 ($19,491 * 25%). However, because all contributions can not...
by Spirit Rider
Mon Apr 18, 2016 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k
Replies: 7
Views: 654

Re: Solo 401k

I'm not sure if you are aware of this, but it is necessary to have income from an owner-employee business with no employees other than your spouse in order to open a Solo 401k.
by Spirit Rider
Mon Apr 18, 2016 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: Have You Done A Solo 401k Spousal Option
Replies: 16
Views: 1518

Re: Have You Done A Solo 401k Spousal Option

1. Compensation is before FICA or the employee salary deferral is deducted. It is equal to W-2 box 5, as Medicare is applied to 100% of compensation. So the compensation would be $19,491 2. The nominal employer contribution would be $4,873 ($19,491 * 25%). However, because all contributions can not ...
by Spirit Rider
Mon Apr 18, 2016 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k question
Replies: 6
Views: 564

Re: Solo 401k question

Why not incorporate sooner rather than later? It may take longer than you think. Though I know a number of colleagues who started out in solo practice not incorporated who became a PC over time for various reasons. Though a number of us are still sole proprietors/not incorporated since there does n...

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