Search found 12 matches

by dingdongditch
Wed Apr 19, 2017 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Accidently contributed into SEP vs SE 401k
Replies: 8
Views: 488

Re: Accidently contributed into SEP vs SE 401k

So if I understand the OP correctly. You went to make a 2017 SE 401k contribution and instead it was made as a SEP IRA contribution. Correct Was it categorized as 2016 SEP IRA contribution or a 2017 SEP IRA contribution? There is no way to "Categorize" the contribution for SEPs at fidelit...
by dingdongditch
Wed Apr 19, 2017 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Accidently contributed into SEP vs SE 401k
Replies: 8
Views: 488

Re: Accidently contributed into SEP vs SE 401k

You can not contribute to a 5305 SEP IRA for a tax year you also have a 401k. Fidelity's SEP IRA is a 5305 SEP, therefore, this contribution is in error. Your options to correct this depend on the circumstances of the error. If this really was an error on Fidelity's part, they should be able to cor...
by dingdongditch
Wed Apr 19, 2017 9:12 am
Forum: Investing - Help with Personal Investments
Topic: Accidently contributed into SEP vs SE 401k
Replies: 8
Views: 488

Accidently contributed into SEP vs SE 401k

Hi,

I dropped off a check at Fidelity to put a contribution into an SE 401k but they deposited it into a SEP IRA we have instead. Should we bother with getting them to fix it or is there no issue (wrt to how we can claim this on our taxes at the end of the year?)

Thanks.
by dingdongditch
Sun Apr 02, 2017 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Amending 2016 Taxes
Replies: 2
Views: 209

Re: Amending 2016 Taxes

The 1040X will figure out what you should have paid/got and send you the balance. So, if you paid $200 but should have gotten a $500 refund, when they process the 1040X, since you paid the $200, they will now refund you $700. The tax software should figure all this out for you. Same on the state - ...
by dingdongditch
Sun Apr 02, 2017 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: Amending 2016 Taxes
Replies: 2
Views: 209

Amending 2016 Taxes

Hello, I filed my taxes for 2016 and we owed a little bit of money (on the order of $200), we paid and filed, a few days later I realized we could open a SEP IRA and reduce our tax liability, so we did that and now we are due a refund on the order of $2K. My question is since I paid federal already,...
by dingdongditch
Sun Mar 19, 2017 8:46 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1961

Re: Traditional Salary + Wife 1099 >200K Income, how to save tax defered

You need to file a Form 8606 for each year you make a non-deductible contribution and/or make a Roth conversion. So yes, you need to file a separate 2016 Form 8606 for the 2016 non-deductible contributions each of you make. It establishes the non-deductible basis you will need for the Roth conversi...
by dingdongditch
Sun Mar 19, 2017 8:08 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1961

Re: Traditional Salary + Wife 1099 >200K Income, how to save tax defered

This is your best course of action is: ⋅ Each spouse should make a 2016 contribution to a traditional IRA by 04/18/17 and make a 2017 contribution as soon as possible. They will become non-deductible contributions by claiming no deduction for them on the 2016/17 returns and reporting the ...
by dingdongditch
Thu Mar 16, 2017 7:38 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1961

Re: Traditional Salary + Wife 1099 >200K Income, how to save tax defered

For 2017, your wife should open a Solo 401k. Fidelity has a great Self Employed 401k that accepts rollovers from IRA and has low cost index funds. If she had established a solo 401k before 12/31/2016, it would have allowed ~32K in contributions on 75K net business income. Solo 401k allows for two t...
by dingdongditch
Thu Mar 16, 2017 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1961

Re: Traditional Salary + Wife 1099 >200K Income, how to save tax defered

If you make traditional 401k contributions instead of Roth, and your wife opens a solo 401k and contributes $18k to it, your income will be below the Roth IRA contribution limit ($186k for married filing jointly) and you won't need the backdoor. This is true for 2017 tax year. Unfortunately it is t...
by dingdongditch
Thu Mar 16, 2017 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1961

Re: Traditional Salary + Wife 1099 >200K Income, how to save tax defered

Why on gods green earth would you do 401k Roth??? Could you elaborate on why I wouldn't want an investment to grow tax free? I understand that this is a highly variable idea that a combination of roth and traditional is best (What I actually already have) Perhaps fund the first $18,000 as tradition...
by dingdongditch
Thu Mar 16, 2017 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1961

Re: Traditional Salary + Wife 1099 >200K Income, how to save tax defered

Hello, welcome to the forum. For MFJ, the phase out MAGI is $186,000. Your number is roughly (135000+75000-18000)=192000. Can you fit $6000 somewhere between your HSA, FSA, and other deductions? About the backdoor ROTH, as you said the existing IRA will have to be either converted or rollover into ...
by dingdongditch
Wed Mar 15, 2017 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional Salary + Wife 1099 >200K Income, how to save tax defered
Replies: 19
Views: 1961

Traditional Salary + Wife 1099 >200K Income, how to save tax defered

Hello, First time posting here. I am trying to figure out what tax advantage investment vehicles my wife and I should take advantage of. I make about $135,000 and she makes about $75,000. I am a salaried employee and have a 401k that I max out on ROTH contributions ($18,000) we also have an HSA thro...

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