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Just note that withdrawals used for elementary/secondary school expenses are considered non-qualified for NYS tax purposes and will result in recapture of any NYS tax benefits received.

JSDNJ wrote: ↑Wed Feb 22, 2023 10:40 am

surveyor wrote: ↑Wed Feb 22, 2023 8:54 am You'll be a named fiduciary. As the employer offering the plan I don't think there is a way around that. I see this as troubling for small businesses. They either have to do a bunch of work with an EF type outfit or go with a high cost plan provider.

Also, there are rules regarding highly compensated employees (HCE). You can avoid testing altogether with a safe-harbor, but that requires employer contributions. Did you look into a SIMPLE IRA plan?

Compliance testing seems to be a part of all the provider offerings. Don’t think a simple IRA works for a business structured like mine.

SIMPLE IRA isn't great for a business with NJ employees given how NJ state income tax treats IRA contributions.

dred pirate wrote: ↑Tue Feb 21, 2023 5:49 pm

erp wrote: ↑Tue Feb 21, 2023 5:33 pm A family is not allowed to have both an HSA and a health FSA at the same time. Her FSA covers you even if you have separate medical coverage and that disallows your HSA. Only a limited purpose FSA (vision and dental) or a dependent FSA are ok.

to clarify- wife's insurance only covers her, my insurance (HDHP) covers my duaghter and myself - does that change anything?

No.

https://www.wageworks.com/employees/sup ... in-an-hsa/

Correct, it doesn't integrate with payroll providers. Having done some back of the envelope math on increased admin cost versus increased cost of the plan by integrated providers, EF ended up ahead by a healthy margin in my situation. So how does the actual process work for employees contributions etc? With ADP and Guideline it seems they have a portal that handles it and I have to do almost nothing. We did this for a bit over 5 years ending about 2 years back now. With employee Fiduciary I would sign on and import a payroll file at each payroll period - we had weekly payroll. The entire process of secure sign in / import payroll / check / log out took about 8 minutes typically. We did spend more time with the 401K reviewing he funds, fill...

:happy Look into Employee Fiduciary then. I used them in the past and found them to be useful. They use open fund architecture so you can select the funds you want in the plan (including TDFs). Yea I have a call into their sales people. They all have various drawbacks. Employee fiduciary doesn’t seem to integrate with payroll which means more admin for me. Correct, it doesn't integrate with payroll providers. Having done some back of the envelope math on increased admin cost versus increased cost of the plan by integrated providers, EF ended up ahead by a healthy margin in my situation. So how does the actual process work for employees contributions etc? With ADP and Guideline it seems they have a portal that handles it and I have to do al...

The only solo 401k calculator I trust is the TFB one: https://docs.zoho.com/sheet/published.d ... 140934898a

This is the only calculator that always matches what my accountant tells me from his calcs.

JSDNJ wrote: ↑Sat Feb 18, 2023 9:13 am

mcraepat9 wrote: ↑Fri Feb 17, 2023 9:01 pm Look into Employee Fiduciary then. I used them in the past and found them to be useful. They use open fund architecture so you can select the funds you want in the plan (including TDFs).

Yea I have a call into their sales people. They all have various drawbacks. Employee fiduciary doesn’t seem to integrate with payroll which means more admin for me.

Correct, it doesn't integrate with payroll providers. Having done some back of the envelope math on increased admin cost versus increased cost of the plan by integrated providers, EF ended up ahead by a healthy margin in my situation.

Look into Employee Fiduciary then. I used them in the past and found them to be useful. They use open fund architecture so you can select the funds you want in the plan (including TDFs).

Yes you do

The answer is probably yes but note that the fees for NJBEST investment options are higher than NY 529. So definitely do not contribute more to NJBEST than the max amount you can deduct on your NJ income tax return per year. The next dollar you contribute should either be deferred to the next year or contributed to your NY 529 account.

MFS is rarely the correct filing approach. Marriage "penalty" usually refers to the increased taxes payable by MFJ filers when compared to two unmarried single filers (because the brackets for MFJ are not exactly double the single brackets). In my circle, it has led to an unusual number of committed relationships where the parties are not legally married but hold themselves out as being married to others (wear an engagement ring, introduce themselves as mr. and mrs. etc). One of my friends in this situation often states that the tax savings alone is worth "another engagement ring, every year". They all have a standard set of legal documents that replicate legal marriage to the maximum extent possible while not being cons...

zag00 wrote: ↑Thu Feb 16, 2023 8:10 am

brawlrats wrote: ↑Thu Feb 16, 2023 7:59 am

zag00 wrote: ↑Thu Feb 16, 2023 7:58 am

FunOnABudget wrote: ↑Thu Feb 16, 2023 7:34 am You don't need to be an S-Corp to file taxes as an S-Corp.

How so? We're going thru the process now, so genuinely curious.

An LLC can elect to be taxed as a partnership, a C Corp or and S Corp, but the election needs to be made, so I’m not entirely sure what the statement you quoted means.

We are an LLC electing to be taxed as an S-Corp. So i'm confused by the original quote.

Many people confuse "S-Corp" tax election with being a legal entity form (or think that you must be a state-law corporation to elect S-corp tax treatment). All the initial quote was saying is you can also be an LLC.

If this is in the US, then no issues. A SAR is required to be filed if you deposit $10k in cash.

Breaking up a $10k+ deposit into smaller deposits is considered structuring and is, of course, illegal.

Varies over time but typically 80% VEA, 20% VWO

Use the TFB spreadsheet:

https://sheet.zohopublic.com/sheet/publ ... 140934898a

catchup wrote: ↑Thu Jan 26, 2023 6:36 am This will probably be deleted, but maybe I should ask Mehmet Oz what he did. Is he on this forum?

One important difference between you and Oz: Oz didn’t get the gig.

Biglaw sucks. I hate it.

Just to clear up the terminology:

1. Barred = licensed to practice law in the relevant jurisdiction
2. Disbarred = relevant governmental authority has revoked person’s license to practice law in the relevant jurisdiction

“Debar” is not generally a term used in this situation.

OP, maybe the safest course of action is to find a new estate planning attorney, bring them your existing documents and have him or her review/update as necessary. It is possible that your prior attorney’s disbarment did not mean he or she has screwed up your documents, but I would not risk it.

Disclosure: lawyer in private practice

I use Track1099. Simple, easy, relatively cheap. I consider it a no-brainer.

https://www.track1099.com/

5outof10 wrote: ↑Wed Jan 04, 2023 12:35 am How do your kids feel about rowing?

I am sorry. I am kidding. I still can't get over the Varsity Blues Scandal and couldn't resist.

I am actually quite interested in other BHs' responses.

More like how would they look in pictures of them "rowing"!

Only commenting here to say that for my own solo 401k, we just created several Outlook/Google calendar reminders 4 months, 3 months, 2 months, 1 month and on the due date for all 5500 filings. The form is very easy to complete so I would suggest not giving up the benefit of a solo 401k purely due to easily avoidable penalties.

TarHeel2002, who do (did?) you use for docs/administration of your SIMPLE 401k plan? Looking to implement one but can't find anyone doing new SIMPLE 401ks.

Thanks!

I use the Canon MB5420 (not an "ink tank" i dont think).
I use an aftermarket external ink tank.
Highly recommend.

One thing to consider is if your plan is to pay for their school regardless of 529 performance, it might be more appropriate to keep the 529 super aggressive (all equity) because your non-529 funds are the backstop. Having a 529 kid-specific asset allocation makes the most sense if you view funds deposited in the account as the only funds you would use to pay their schooling.

You can adjust your non-529 taxable allocation to have more fixed income if you want to keep the overall allocation static.

alex_686 wrote: ↑Sat Sep 24, 2022 2:20 pm

LilyFleur wrote: ↑Sat Sep 24, 2022 2:17 pm

max12377 wrote: ↑Sat Sep 24, 2022 5:48 am I really enjoyed her book on decision making. In fact, I may read it again. It was the first time I had heard about not equating the quality of the outcome with the quality of the decision.

Outcome is rather important to me.

You can control the quality of your decisions, you can’t control the returns of the market.

+1

With luggage, uber/lyft or yellow cab. Dont mess around with the subway. Works fine from gct or penn, though sometimes i walk a block to get away from the jam around the stations.

Most charities are intimately familiar with this requirement and the acknowledgment letters they send include this magic language.

I have had on one occasion with a smaller, newer charity to ask them to revise the acknowledgment letter to include this language, pointing them directly to IRS guidance. Ever since then I am always careful to check these letters.

The subject line here is a bit misleading, as donating any property (including cash) should come with a contemporaneous acknowledgment with IRS approved language.

Very harsh result, but I must say in my view the donor in this article was grossly negligent. With a donation this large, how could she not have had her tax attorney/accountant/preparer etc involved? Truly mind blowing.

Not an expert on this, but for the most part the people who apply for and actually get jumbo loan have better credit profiles (more assets, more income etc) than those who have regular loans, as a whole.

So a financial advisor really doesn’t make sense at any level if you are capable of sticking with a three fund? I wouldn't say that (though I have a conflict of this interest on this point). I would say that a financial advisor is unlikely to be able to construct a significantly better portfolio than a simple 3 or 4 fund portfolio, regardless of how much wealth their client has. A good financial advisor might be able to add value in other ways (tax management, estate planning, insurance analysis, or even helping find the "right" asset allocation, etc.), but a "better portfolio" probably isn't among them. +1 As you move up in assets, it is imperative to get your own stable of tax, legal, insurance professionals. The actu...

I think they don't permit third party links in the comments section of MarketWatch (similar to WSJ.com comment section)

What is your marginal fed/state income tax rate?
What is your anticipated retirement date?
How much do you think you need per year in expenses from that date?

$1MM at 42 seems pretty low to stop making 401k contributions. Based on your marginal fed/state income tax rate, it may make sense to put this money in Roth 401k instead of traditional 401k. But hard to fathom that giving up tax advantaged space is the right move.

Do you have an IRA (roth or traditional) that you contribute to as well?

Correct

All of the above is correct. You dont need to send 1099s for purely personal expenditures.

This is correct assuming that wife has no other W-2 employment with a 401k/403b she is contributing to. Typically I do the employee elective contribution during the tax year in question, then wait until my tax returns are done to make employer profit sharing and mega backdoor roth contributions. Note that the deadline for contributions is the business's tax return deadline including extensions . So if your wife is a sole proprietor (or single member LLC taxed as a disregard( and you file for an extension on your tax return, the contribution deadline for a given tax year is October 15 of the following year . I always extend and you should always do this too, even if you don't need the extension to file. It gives you time to fix issues after ...

nyinvestor718 wrote: ↑Wed Aug 31, 2022 9:09 am

mcraepat9 wrote: ↑Tue Aug 30, 2022 10:45 pm OP don't be shy, what state are you in?
This can be very important.
For example, if you were in NYC an S corp would likely be tax suicide.

I can confirm, as a NYC S corp, this is 100% true. We avoid distributions but still think an S corp is worth it.

Yes for sure you can make a NYC S corp work. For single member LLCs taxed as disregards, the S corp route should become more attractive in 2023 when the NYC PTE tax goes into effect.

That said, NYC is a very challenging jurisdiction to weigh S corp treatment and requires careful planning.

Not a coincidence CBS has 2 games that Saturday.

I think it's highly likely that game will be 3:30pm ET on CBS unless UGA has 2+ losses. But it's true you won't know until 12 days before (or 6 if CBS makes a delayed selection).

OP don't be shy, what state are you in?
This can be very important.
For example, if you were in NYC an S corp would likely be tax suicide.

Gill wrote: ↑Mon Aug 29, 2022 7:38 pm

rkhusky wrote: ↑Wed Jun 15, 2022 7:20 am No US state tax on US treasuries. No US Federal tax on state muni's. No US state tax on muni's from your resident state.

I believe Illinois is an exception

Gill

+ Wisconsin
+ Iowa

Like other posters, i am confused.

Assuming you use specific ID for cost basis:

If you sell the 100 shares at a gain, you have a taxable gain on that investment. Dividends you receive are not relevant to this taxable gain, regardless of what you do with them.

If you reinvest the dividends, you will of course have more shares. If you later sell those newly purchased shares at a gain you will pay tax on that gain.

OP what exactly do you see as being taxed twice?

As a best practice, consider opening a business checking account or a business CMA, if available, from your Solo 401k plan provider. Also consider opening a business credit card if you will have any business expenses. Use the account to deposit your 1099 checks, to make self-employed 401k contributions and pay business expenses such as estimated tax payments , business-related credit card balances, etc. It is easier with your business activity segregated in this manner to do your tax reporting and max Solo 401k contribution calculations. If your Schedule C is ever audited, it is cleaner/safer to provide just the business accounts for auditor review rather than your commingled personal/business accounts. Homestretch, I highly value your inp...

Assuming you report your self-employed business earnings as a sole proprietor, you have until your tax filing deadline including extensions to deposit the Solo 401k employee elective deferral. But the participant needs to make a contribution election (in writing, retain in your tax file) by 12/31 of the plan/tax year. Over contributions to a 401k plan by employee/employer are more difficult to correct. It is safer to hold off on making Solo 401k plan contributions until your Form 1040 is drafted to insure you are making an accurate maximum employee/employer contributions. Alternatively, consider funding up to 80% during the plan/tax year and topping off the remaining 20% after the tax return is drafted after year-end. +1 I always file for ...

Electric Light Orchestra

Following.

RobLyons wrote: ↑Tue Jun 18, 2019 2:59 pm

dm200 wrote: ↑Mon Jun 17, 2019 11:11 am

fru-gal wrote: ↑Mon Jun 17, 2019 11:09 am There are good vets and bad vets. Good vets are worth whatever they charge.

Do you "replace" your kids if they have high medical bills? How about the spouse, is he/she out the door if they get costly?

Dogs are not "children", nor are "children" dogs. I value people much more than animals.

Many consider pets as part of the family. What value we place on members of our family depends on each individual.

I value my dog much more than members of my own family for sure. The medical care I would pay for my dog far outstrips what I would pay for human family members without question.

Worksheet to use: https://tax.thomsonreuters.com/content/ ... s_comb.pdf

If you just invested last year and have not received any funds back, your investment is almost certainly at risk.

Duckie wrote: ↑Thu Aug 25, 2022 4:06 pm

mcraepat9 wrote: ↑Wed Aug 24, 2022 9:02 pm If 49 year old Jim made $80k in net profit from self employment (+ no other employment with 401k/403b):

That works assuming that by "net profit" you are including the reduction of the Schedule C profit by one-half the self-employment tax (Schedule SE).

"Net profit from self employment" = line 31 on Schedule C.

While I hate to give any credibility to calculators (other than the TFB spreadsheet which is excellent), most of them do typically address the deduction for one half of the self-employment taxes.

It's more complicated. See Clark v. New York State Tax Commission, 86 A.D.2d 691 (1982), https://scholar.google.com/scholar_case?case=6048379531456774298&q=clark+v.+new+york+state+tax+commission+86+a.d.2d+691&hl=en&as_sdt=4,33. Also see this article by Tim Noonan (whom I know, and who introduced me to Kathy Hochul when she was Lieutenant Governor) and Daniel Kelly: https://www.hodgsonruss.com/media/publication/434_How%20States%20Handle%20Signing%20Bonuses%20for%20Athletes.pdf. The "jock tax" analogy is interesting but hard to map onto a regular employee's situation. 1. If I am a salaried employee (not commissioned) and my regular place of employment is my company's Topeka office, do we really think spending a week wor...

If you want to do a MBDR-enabled solo 401k on your own, I put together this roadmap a few years ago might be of use to you (DW had a regular free Fidelity Solo 401k and wanted MBR capability, so not a perfect comp): viewtopic.php?t=325433

That said, we ended up using a TPA because it was less stressful and less risk. TPA bugged us incessantly about filing 5500-EZ when due. Given what you can find just by searching today's posts on Bogleheads (viewtopic.php?t=384501), this alone was comforting.

So first of all, I must stress that many calculators on the internet for these contributions are wrong, and nearly all of them do not account for MBDR. The only one I have ever used that lined up correctly with the calculations my CPA runs per IRS rules is the TFB spreadsheet. The one you sent was correct assuming no MBDR capability. *EDIT: to clarify, these numbers are using 2021 limits, so assuming these two individuals made this money in 2021* If 49 year old Jim made $80k in net profit from self employment (+ no other employment with 401k/403b): Salary Deferral 19,500 Catch-up 0 Profit Sharing 14,870 Non-Roth after-tax contribution if plan allows 23,630 If 49 year old Sue made $200k in net profit from self employment (+ no other employme...

Does your company have an office in Kansas that is your regular assigned work location?