Search found 19 matches

by Petra
Fri Dec 08, 2017 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: Scorp changing from joint owners to spouse only
Replies: 3
Views: 214

Re: Scorp changing from joint owners to spouse only

Also I would love any feedback regarding how this would change that way we file our taxes and etc. (any financial ramifications).
by Petra
Fri Dec 08, 2017 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: Scorp changing from joint owners to spouse only
Replies: 3
Views: 214

Re: Scorp changing from joint owners to spouse only

Hayden Why would two owners make it harder to pierce the corporate veil? Just FYI In my case it may be that my partner's work is more likely to instigate a liability suit (he often drives on the job, has equipment, etc.) vs. my work is more desk oriented. But I'd like to consider as much feedback an...
by Petra
Thu Dec 07, 2017 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Scorp changing from joint owners to spouse only
Replies: 3
Views: 214

Scorp changing from joint owners to spouse only

My husband and I own an Scorp and are 50/50 shareholders. Our lawyer advises, for liability reasons, to put the company in my husband's name and to make me the TOD beneficiary. I would become simply an employee. How might that change our taxes (if any) and what other potential financial ramification...
by Petra
Thu Oct 05, 2017 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Planning - What next?
Replies: 2
Views: 571

Retirement Planning - What next?

Unfortunately I'm one of those people who started saving for retirement very late (in my 40s), due to a combination of: - a lack of financial literacy (I grew up under the poverty line, thus was never exposed to IRAs or portfolios etc.) - a high need child that took a whole lot of attention for what...
by Petra
Sun Sep 17, 2017 7:27 am
Forum: Personal Finance (Not Investing)
Topic: Small SCorp required to sign Master Service Agreement with Large Company
Replies: 4
Views: 591

Re: Small SCorp required to sign Master Service Agreement with Large Company

I filled out the request for information, which included a section outlining that they are not more than 30% of our business and who the principals are. Next, they would like me to fill out what they are calling an "Agency Bidding Form." This does not look like the rate card we use. It has a list of...
by Petra
Thu Aug 10, 2017 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Scorp wants to understand when to pay sales tax
Replies: 1
Views: 237

Scorp wants to understand when to pay sales tax

I have a small Scorp (in CT). I use certain vendors (in NY), who upon setting up the accounts over a decade ago requested a resale certificate. They do not charge tax on their invoices. These charges become costs associated with doing a certain job for which I bill my client and I do not include tax...
by Petra
Tue Aug 08, 2017 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Scorp moving salary & distributions from corp to personal
Replies: 2
Views: 213

Scorp moving salary & distributions from corp to personal

I have a small Scorp with my husband, and just learned after many years of being in business, that my accountant has been executing my taxes incorrectly (like an independent contractor, not issuing w-2s, etc. He was, however, paying both sides of FICA so we have been paying those taxes/not dodging. ...
by Petra
Sat Aug 05, 2017 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Small SCorp required to sign Master Service Agreement with Large Company
Replies: 4
Views: 591

Small SCorp required to sign Master Service Agreement with Large Company

I have a small SCorp and one of my major clients (big company) just noticed (after 20 years) that I do not have the usual paperwork on file. They would like me to sign an ECL (ethical commitment letter), Master Service Agreement, Non-disclosure agreement, and RFI (Request for Information in lieu of ...
by Petra
Wed Jul 19, 2017 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 1047

Re: Solo 401k contribution limits (CPA confused! So I am too help)

Spirit Rider can you post a link to the IRC on that section?
by Petra
Tue Jul 18, 2017 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 1047

Re: Solo 401k contribution limits (CPA confused! So I am too help)

On the phone with Vanguard Retirement Administrator, who knocked the question up the food chain and they are so far stumped. If the IRS and Vanguard can't confirm either way, who can? (as I shout into an empty void and hear an echo...). But I cracked him up when I said this is the Twin Peaks of IRS ...
by Petra
Tue Jul 18, 2017 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 1047

Re: Solo 401k contribution limits (CPA confused! So I am too help)

Adding a very naive comment here but it feels like the $6,000 catch up should not be included, as it would negate the catch up for those that need it most.
by Petra
Tue Jul 18, 2017 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 1047

Re: Solo 401k contribution limits (CPA confused! So I am too help)

Page 2 of Vanguard's iSolo401k plan kit: The total amount contributed (by employer and employee) can’t exceed the annual additions limit ($53,000 for 2016; $59,000 for participants age 50 or older using the catch-up contribution) or 100% of compensation. So Spirit Rider VG literature does not outlin...
by Petra
Tue Jul 18, 2017 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 1047

Re: Solo 401k contribution limits (CPA confused! So I am too help)

Spirit Rider I like your demonstration of the 144,000 calculation.
by Petra
Tue Jul 18, 2017 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 1047

Re: Solo 401k contribution limits (CPA confused! So I am too help)

Do you know of any publications that I can cite that say the catch up contribution is not included in the cap/limit? (the IRS says citing a publication goes a long way!)
by Petra
Tue Jul 18, 2017 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 1047

Re: Solo 401k contribution limits (CPA confused! So I am too help)

Spirit Rider that is very tricky! It does not reflect on any of the calculators (including bankrate which also spits out $1988) but I see your reasoning here! If this is the case I bet many are calculating incorrectly.

(as an aside I do hate the idea of not being able to trust the calculators!)
by Petra
Tue Jul 18, 2017 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 1047

Re: Solo 401k contribution limits (CPA confused! So I am too help)

aristotelian I checked out the calculator at mysolo401k.org. We are married joint owners of an scorp with no employees so I'm wondering if single owner corporation is the correct category? (the only other category was unincorporated sole proprietorship). When I plugged in the numbers, it gave me $1,...
by Petra
Tue Jul 18, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 1047

Re: Solo 401k contribution limits (CPA confused! So I am too help)

But spirit rider since I've already made the salary deferral of $24,000, if the cap is employer + employee wouldn't that make $6497 over the cap?
by Petra
Tue Jul 18, 2017 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution limits (CPA confused! So I am too help)
Replies: 19
Views: 1047

Solo 401k contribution limits (CPA confused! So I am too help)

I have an Scorp, for which my husband and I are employees and I've newly have setup a solo 401k with Vanguard for each of us. My husband's w-2 income was reported on line 1 as $1,988.09. Employee contribution, indicated on line 12a, was $24,000 (he is over 50). Social security withheld (line 4) was ...