Search found 584 matches

by gilgamesh
Wed Mar 29, 2017 6:26 pm
Forum: Investing - Help with Personal Investments
Topic: When do you plan to die?
Replies: 54
Views: 1889

Re: When do you plan to die?

Forever with meager means....SS and SPIA bought at 80. But, most likely with my genetics I may not live to buy that SPIA
by gilgamesh
Sun Mar 26, 2017 6:38 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA vs. 401k(Traditional IRA)
Replies: 4
Views: 389

Re: Roth IRA vs. 401k(Traditional IRA)

When you rollover from 401k to traditional IRA it's not a taxable event. If you decide to move it into a Roth you will pay taxes on the whole amount. It wasn't clear whether you know this.
by gilgamesh
Fri Mar 24, 2017 6:47 pm
Forum: Investing - Help with Personal Investments
Topic: After-tax IRA with a 401k in the future - backdoor Roth in the future
Replies: 5
Views: 380

Re: After-tax IRA with a 401k in the future - backdoor Roth in the future

It just dawned on me, I could still do $11,000 for 2016. I'm surprised no one suggested this.

I've already filed my taxes, just emailed my accountant to see what needs to be done.
by gilgamesh
Fri Mar 24, 2017 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: After-tax IRA with a 401k in the future - backdoor Roth in the future
Replies: 5
Views: 380

Re: After-tax IRA with a 401k in the future - backdoor Roth in the future

"Thanks!...Even if the backdoor Roth is not done on the same year right?....It seems to me to be an obvious yes too, but as I've never done a backdoor Roth, just want to make sure." Once (immediately) we had the 401K at work to roll money into we could separate the accounts (pre and post ...
by gilgamesh
Fri Mar 24, 2017 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Contributions to Simple IRA affecting taxes
Replies: 7
Views: 368

Re: Contributions to Simple IRA affecting taxes

To make it easier, it would be $1000 divided by your tax bracket in percent. So if you are in the 15% bracket. 1000/.15=$6667, 25% bracket, 1000/.25=$4000, 28% $2571, 33%= $3030 I would fall into the 25% bracket. I am the sole proprietor of a small company. I still need to contribute my 3% match an...
by gilgamesh
Fri Mar 24, 2017 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Contributions to Simple IRA affecting taxes
Replies: 7
Views: 368

Re: Contributions to Simple IRA affecting taxes

To make it easier, it would be $1000 divided by your tax bracket in percent. So if you are in the 15% bracket. 1000/.15=$6667, 25% bracket, 1000/.25=$4000, 28% $2571, 33%= $3030 I would fall into the 25% bracket. I am the sole proprietor of a small company. I still need to contribute my 3% match an...
by gilgamesh
Fri Mar 24, 2017 10:56 am
Forum: Investing - Help with Personal Investments
Topic: How to invest if you are not sure about your income?
Replies: 12
Views: 771

Re: How to invest if you are not sure about your income?

value is beating 0.1% interest per year on bank. blackjack is slightly negative value. investment can be risky and have value at the same time At what risk?...are you ok in losing 50% of your money to try to beat the 0.1%....how much are you ok losing? P.S: Don't worry about the language, you are d...
by gilgamesh
Fri Mar 24, 2017 9:43 am
Forum: Investing - Help with Personal Investments
Topic: After-tax IRA with a 401k in the future - backdoor Roth in the future
Replies: 5
Views: 380

Re: After-tax IRA with a 401k in the future - backdoor Roth in the future

"My question is, should we both max out our aftertax IRA for this year to do an additional $11k in backdoor Roth?" Yes - that is what we do but with the catch up allowance for ages over 55 we can go to $13K. Thanks!...Even if the backdoor Roth is not done on the same year right?....It see...
by gilgamesh
Fri Mar 24, 2017 8:08 am
Forum: Investing - Theory, News & General
Topic: The $1,124,176 Car.
Replies: 99
Views: 7182

Re: The $1,124,176 Car.

4% real return would appear to be more realistic per many experts. There's a tendency to exaggerate the benefit of investing which is nicely parodied by this XKCD comic: https://xkcd.com/947/ None of this takes away from Taylor's basic point, but Taylor is overselling it. Overselling it? lol! that'...
by gilgamesh
Fri Mar 24, 2017 6:56 am
Forum: Investing - Help with Personal Investments
Topic: How to invest if you are not sure about your income?
Replies: 12
Views: 771

Re: How to invest if you are not sure about your income?

I play poker for a living and have 6 figures on my bank account without any interests. I want to invest it the problem is I don't know how sooo I might need some percent of that money in months or might be never. Is it still +EV to have money in etfs even if it may be for short time becouse cash de...
by gilgamesh
Fri Mar 24, 2017 5:07 am
Forum: Investing - Help with Personal Investments
Topic: After-tax IRA with a 401k in the future - backdoor Roth in the future
Replies: 5
Views: 380

After-tax IRA with a 401k in the future - backdoor Roth in the future

I am a small business owner and my wife an employee and others (no solo 401k). I currently offer a simple IRA and we both max out. In 2018 I will be changing that to a safe harbor 401k. At which point I will transfer all my pretax IRA into the 401k and I will do a backdoor Roth for my aftertax IRA. ...
by gilgamesh
Thu Mar 23, 2017 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Contributions to Simple IRA affecting taxes
Replies: 7
Views: 368

Re: Contributions to Simple IRA affecting taxes

I hope I am wording this correctly. I was curious how much of a tax break do you get for each dollar you invest in a Simple IRA? Say I owe $1000 for end of the year for Federal and i still have room to contribute to my Simple IRA how much I need to contribute to lower the bill to zero? I thought I ...
by gilgamesh
Thu Mar 23, 2017 10:21 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

"I think you are making this too complicated - the only question for them is will they allow employees enrolled in their 401k to roll both previous 401k's and tIRAs into the Guideline 401k...if yes, you are set. If no, that is a limitation of their 401k that may limit their market share. Peopl...
by gilgamesh
Wed Mar 22, 2017 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

To my knowledge Employee deferrals are subject to FICA. Employer Match is not subject to FICA. Correct. The Employer doesn't save the income tax, the employee defers it. Employee deferrals are pre-tax to the employee, but the employer contributions are deductable by the employer . So, as the employ...
by gilgamesh
Wed Mar 22, 2017 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

If I had to guess, Guideline's assets increased because of their partnerships. For example, if you choose Gusto as a payroll provider and would also like a low-cost 401k provider, you are sent directly to Guideline. I'm sure they have similar arrangements with other companies. This is good exposure...
by gilgamesh
Wed Mar 22, 2017 11:57 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

To my knowledge Employee deferrals are subject to FICA. Employer Match is not subject to FICA. Correct. The Employer doesn't save the income tax, the employee defers it. Employee deferrals are pre-tax to the employee, but the employer contributions are deductable by the employer . So, as the employ...
by gilgamesh
Wed Mar 22, 2017 11:56 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

"Guideline confirmed I cannot roll my IRA into 401k to do backdoor Roth. Other than, the potential to go bankrupt is the only negatives. But, they grew from $120k AUM id Dec2015 to over $50M now. Isn't it typical for a company not to make a profit at this stage. Does EF offer to roll over exis...
by gilgamesh
Wed Mar 22, 2017 9:44 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

To my knowledge Employee deferrals are subject to FICA. Employer Match is not subject to FICA. Correct. The Employer doesn't save the income tax, the employee defers it. Employee deferrals are pre-tax to the employee, but the employer contributions are deductable by the employer . So, as the employ...
by gilgamesh
Wed Mar 22, 2017 9:41 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

An excellent point raised by Ethelred.... "I'm not sure I'd class their index funds as "low cost", at least not compared to Vanguard/Fidelity/Schwab. The net ER on investor class index funds starts at 0.25% for S&P500, and rises pretty quickly. Only three US stock funds have ER b...
by gilgamesh
Wed Mar 22, 2017 9:39 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

Please check with your accountant but here is some feedback..... "I assume I can write off the $30 and the $1500 right? So, if my combined federal, state tax is ~35%, it's effectively $975 and $19.50 correct? Yes - wish my taxes were at that level. That's good. Ohio tax is estimated to me 2%. ...
by gilgamesh
Wed Mar 22, 2017 4:59 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

Can you tell me how much in fees you are paying for 401K? Total cost...there's lots of 'hidden' costs with 401k. He indicated he is with Employee Fiduciary. Their cost is $1500 annually, plus $30/participant if over 30 participants. There is also a .08% basis fee that is paid to the custodian. If h...
by gilgamesh
Tue Mar 21, 2017 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Advice
Replies: 6
Views: 381

Re: 401K Advice

Hello this is my first post and was looking for a little advise. I'm in my mid 40's and have accumulated around 300k in my 401k. My 401K has been sitting in cash for around a year now. I've missed several opportunities to get into the market last year and didn't. I'm very gun shy about getting into...
by gilgamesh
Tue Mar 21, 2017 10:39 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

Id love to know what you find out with T Rowe Price. I've had funds in my IRA with them before and it's an excellent company. If all I need is low cost index funds, they could be a great choice, especially if they are not charging any fees. I'm not sure I'd class their index funds as "low cost...
by gilgamesh
Tue Mar 21, 2017 9:13 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

"My contact at Guideline.com emailed me the detailed fee https://my.guideline.com/agreements/annual_disclosures#plan-fees-and-expenses-404a-5-disclosure One example only - in this doc provided above look up Vanguard Small cap equity (VSTCX) and compare to the VG site info... https://personal.v...
by gilgamesh
Tue Mar 21, 2017 9:11 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

My contact at Guideline.com emailed me the detailed fee https://my.guideline.com/agreements/annual_disclosures#plan-fees-and-expenses-404a-5-disclosure I've seen this document and it outlines the fees as they advertised. I think the application site in the previous post may have outdated informatio...
by gilgamesh
Mon Mar 20, 2017 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

My contact at Guideline.com emailed me the detailed fee

https://my.guideline.com/agreements/ann ... disclosure
by gilgamesh
Mon Mar 20, 2017 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

This is what another, not available online, guideline.com document says about fees Guideline charges plan sponsors a one-time fee of $200-700 to set up a 401(k) plan, and $6-$25 per month per plan participant, with a two-participant minimum. A final fee schedule is provided in the plan sponsor servi...
by gilgamesh
Mon Mar 20, 2017 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

I think you are being a little unrealistic to think that all TPA business models are going to offer all plan options available. The New Comparability Method is not exactly a requirement of the vast majority of plan sponsors. There is certainly a market for a TPAs to offer a simple low cost no frill...
by gilgamesh
Mon Mar 20, 2017 11:33 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

I think you are being a little unrealistic to think that all TPA business models are going to offer all plan options available. The New Comparability Method is not exactly a requirement of the vast majority of plan sponsors. There is certainly a market for a TPAs to offer a simple low cost no frill...
by gilgamesh
Mon Mar 20, 2017 11:32 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

"I have access to all of the company plan documents but they are a tough read and I don't think I would see fees in there - or at least easily." The fees are detailed in a pdf on their website - I am not sure if this link will work of not but lets give it a try... https://www.google.com/#...
by gilgamesh
Sun Mar 19, 2017 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

Maybe guideline doesn't allow the new comparability method? I can't remember what it was but I laughed and politely ended the phone call when they told me it wasn't allowed under their plan. I really like guideline's model on the surface but I don't think you have a lot of flexibility in plan desig...
by gilgamesh
Sun Mar 19, 2017 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

Does the spreadsheet open on an iPad...your first link goes to a boglehead wiki page? When I click on the first link (MMM spreadsheet) on that wiki page it just goes to another forum. The second link you provided goes to a post with some lengthy equations. P.S: Is this the spread sheet https://doc-...
by gilgamesh
Sun Mar 19, 2017 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

Bad idea...never mind. It wasn't entirely bad. Delaying the conversion of non-deductible contributions makes sense if they are invested in low return assets (such as your TIPS ladder). The tax on a years growth in the could tIRA could be less than the cost of using the 401(k) for a year. Even if th...
by gilgamesh
Sun Mar 19, 2017 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

If we invest $11,000 in taxable what will the tax drag be? Assume 33% federal tax bracket and ~2% state tax. How do I calculate the annual tax drag? Can someone calculate this for me? See the spreadsheet referenced in Personal finance toolbox . There is a "Growth in a taxable account" sec...
by gilgamesh
Sun Mar 19, 2017 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

If my approximate tax drag for 5 years of $1914 is good, then I could guesstimate the cost of transferring my IRA into 401k. Assuming the same 12.97% return Year 1 starts out at $400k, year 2 $451k, year 3 $509k, year 4 $575k, year 5 $649k....so 8 basis point for 5 years is $320+$360+407+460+519 = ...
by gilgamesh
Sun Mar 19, 2017 10:40 am
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

There's another complicating factor for me....my plan called for constructing TIPS ladder inside an IRA, directly from the treasuries. But, that has to start about 6 years prior to retirement (in 6 years), for the laddder to work. But, with the IRA tied up in the 401K, I wouldn't be able to do that....
by gilgamesh
Sun Mar 19, 2017 10:21 am
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

If capital gains is zero, then it doesn't make sense to move IRA into 401k just to do a Backdoor Roth. If capital gains is taxed at 15%, then there's that on the ($649k - $400k) X 0.15..which equals to $37,500 in taxes making the backdoor Roth the clear winner. So, it looks like it's the capital ga...
by gilgamesh
Sun Mar 19, 2017 9:36 am
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

Backdoor Roth only has tax deferred growth as the advantage over taxable, correct? It has tax free growth as the advantage over taxable. Good point!, I knew it but wrote it wrong. And no RMD's. True!...but, I will be doing Roth conversions from day of retirement to SS, and do not expect RMD to affe...
by gilgamesh
Sun Mar 19, 2017 8:49 am
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

If my approximate tax drag for 5 years of $1914 is good, then I could guesstimate the cost of transferring my IRA into 401k. Assuming the same 12.97% return Year 1 starts out at $400k, year 2 $451k, year 3 $509k, year 4 $575k, year 5 $649k....so 8 basis point for 5 years is $320+$360+407+460+519 = $...
by gilgamesh
Sun Mar 19, 2017 8:16 am
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

Backdoor Roth only has tax deferred growth as the advantage over taxable, correct? (Edit: meant to say tax free....however as I plan to be in 15% tax bracket, I will not pat LTCG/QD taxes and thus tax drag is the only negative for taxable vs backdoor Roth) Say, My wife and I have $400,000 in IRA. T...
by gilgamesh
Sun Mar 19, 2017 8:15 am
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

If we invest $11,000 in taxable what will the tax drag be? Assume 33% federal tax bracket and ~2% state tax. How do I calculate the annual tax drag? Can someone calculate this for me? See the spreadsheet referenced in Personal finance toolbox . There is a "Growth in a taxable account" sec...
by gilgamesh
Sun Mar 19, 2017 6:42 am
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

DSInvestor wrote:Do you or your spouse have any self employed income? If yes, you can consider opening Solo 401k plans and then transferring your IRA assets into it. Fidelity has a low cost Self Employed 401k plan where you can invest in low cost index funds.


I have employees, so no solo 401k
by gilgamesh
Sun Mar 19, 2017 6:41 am
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

If we invest $11,000 in taxable what will the tax drag be? Assume 33% federal tax bracket and ~2% state tax. How do I calculate the annual tax drag? Can someone calculate this for me? See the spreadsheet referenced in Personal finance toolbox . There is a "Growth in a taxable account" sec...
by gilgamesh
Sun Mar 19, 2017 6:38 am
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

Re: How to figure whether its good to move all IRA into 401k to do backdoor Roth

TomatoTomahto wrote:
Backdoor Roth only has tax deferred growth as the advantage over taxable, correct?

It has tax free growth as the advantage over taxable.


Good point!, I knew it but wrote it wrong.
by gilgamesh
Sun Mar 19, 2017 6:34 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

"Thought I would throw my two cents here on safe harbor 401k plans for small businesses. I am signing up for guideline.com safe harbor for my 6 employee S-Corp. $40 per month or ($8.00 per employee) They carry Fiduciary responsibility 3 bp AUM fee. $500 setup fee $1000 termination fee within f...
by gilgamesh
Sat Mar 18, 2017 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: How to figure whether its good to move all IRA into 401k to do backdoor Roth
Replies: 26
Views: 954

How to figure whether its good to move all IRA into 401k to do backdoor Roth

Backdoor Roth only has tax deferred growth as the advantage over taxable, correct? (Edit: meant to say tax free....however as I plan to be in 15% tax bracket, I will not pat LTCG/QD taxes and thus tax drag is the only negative for taxable vs backdoor Roth) Say, My wife and I have $400,000 in IRA. Th...
by gilgamesh
Sat Mar 18, 2017 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

"I have access to all of the company plan documents but they are a tough read and I don't think I would see fees in there - or at least easily." The fees are detailed in a pdf on their website - I am not sure if this link will work of not but lets give it a try... https://www.google.com/#...
by gilgamesh
Sat Mar 18, 2017 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Incorrect taxed medicare earnings on social security statement
Replies: 10
Views: 523

Re: Incorrect taxed medicare earnings on social security statement

So ... are the "taxed Medicare earnings" higher than you earned? Also remember that 401(k) and other tax deferred plans reduce your income for tax purposes, but not for SS or Medicare. jimb For 2015 (the year in question), the "your taxed medicare earnings" is lower than my inco...
by gilgamesh
Sat Mar 18, 2017 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 3683

Re: S corp - 401K plan - profit sharing

"Thought I would throw my two cents here on safe harbor 401k plans for small businesses. I am signing up for guideline.com safe harbor for my 6 employee S-Corp. $40 per month or ($8.00 per employee) They carry Fiduciary responsibility 3 bp AUM fee. $500 setup fee $1000 termination fee within f...

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