Search found 152 matches

by catchinup
Fri Aug 21, 2020 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Would You Hire Out of State CPA for S-CORP & Personal Tax Returns?
Replies: 5
Views: 389

Would You Hire Out of State CPA for S-CORP & Personal Tax Returns?

Hi I am looking to hire a new CPA. My S-Corp and I are located in Los Angeles. Does it matter if the CPA is located in another state? Does the CPA need expertise in the State of California? There are a number of CPA's on Thumbtack who say they serve Los Angeles, but I notice their offices are in dif...
by catchinup
Thu Jul 30, 2020 10:14 am
Forum: Personal Finance (Not Investing)
Topic: PPP Loan Forgiveness for S-CORP
Replies: 5
Views: 589

Re: PPP Loan Forgiveness for S-CORP

But unless you have a W-2 form through your company, you won’t qualify as an employee. If you need help, most lenders offer PPP application assistance. Keep the thread up to date please! I'd like to know how everything pans out for you. Hi Rick, yes I do have 2019 W-2 as an employee. Will try to ke...
by catchinup
Wed Jul 29, 2020 11:45 pm
Forum: Personal Finance (Not Investing)
Topic: Form 941 Q1 Box Locked But Want to File for PPP Loan
Replies: 10
Views: 461

Re: Form 941 Q1 Box Locked But Want to File for PPP Loan

I own an S-corp and am the only employee. I am trying to file for a PPP loan. Application is asking me to upload Q1 941 to show I was in business in FY20 Q1. I did not file form 941 in Q1. Normally my accountant files zero until we do payroll Q4. New accountant did not file Q1. Now when I download ...
by catchinup
Wed Jul 29, 2020 10:34 pm
Forum: Personal Finance (Not Investing)
Topic: Form 941 Q1 Box Locked But Want to File for PPP Loan
Replies: 10
Views: 461

Re: Form 941 Q1 Box Locked But Want to File for PPP Loan

Hayden wrote: Wed Jul 29, 2020 9:41 am I am not an accountant.
Why cant you just print it out, check the Q1 box, fill in the zeros, and mail it in?
maybe could. I have no experience with payroll.
by catchinup
Wed Jul 29, 2020 10:34 pm
Forum: Personal Finance (Not Investing)
Topic: Form 941 Q1 Box Locked But Want to File for PPP Loan
Replies: 10
Views: 461

Re: Form 941 Q1 Box Locked But Want to File for PPP Loan

You can use the Jan 2020 version of Form 941 to file for Q1 2020: https://www.irs.gov/pub/irs-pdf/f941_01.pdf Oh thanks. Is there a way to e-file it at this point via IRS website or 3rd party online? I am not set up to do this via Quickbooks and my accountant just told me he is no longer doing payr...
by catchinup
Wed Jul 29, 2020 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Form 941 Q1 Box Locked But Want to File for PPP Loan
Replies: 10
Views: 461

Form 941 Q1 Box Locked But Want to File for PPP Loan

I own an S-corp and am the only employee. I am trying to file for a PPP loan. Application is asking me to upload Q1 941 to show I was in business in FY20 Q1. I did not file form 941 in Q1. Normally my accountant files zero until we do payroll Q4. New accountant did not file Q1. Now when I download t...
by catchinup
Tue Jul 28, 2020 11:16 am
Forum: Personal Finance (Not Investing)
Topic: PPP Loan Forgiveness for S-CORP
Replies: 5
Views: 589

PPP Loan Forgiveness for S-CORP

Hi When you fill out the PPP loan, (at least at my bank) they ask you to allocate how you intend to use the funds into different buckets -- payroll, mortgage interest, etc. Am I tied down to those allocations after receiving the loan? Can I apply to allocate all to payroll and change some to morgtag...
by catchinup
Wed Jul 22, 2020 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity Rewards Visa signature card
Replies: 29
Views: 3565

Re: Fidelity Rewards Visa signature card

On the fidelity web page for application, it says that elan is the bank. Question - what website do I use to pay the bills? Elan's? or Fidelity's? Don't want to deal with another website to save .5% over what I'm already getting. I login through fidelityrewards.com I have my account set up to conve...
by catchinup
Tue Jul 21, 2020 11:32 pm
Forum: Personal Finance (Not Investing)
Topic: Economic Payroll Service Recommendations?
Replies: 4
Views: 298

Economic Payroll Service Recommendations?

Can anyone recommend an economic payroll service?

I am self-employed via my s-corp and have no employees.

I don't have time or inclination to do it myself with QB, etc.

Thanks in advance
by catchinup
Tue Jun 30, 2020 9:37 am
Forum: Personal Investments
Topic: Help Filling Out Form 8606
Replies: 8
Views: 501

Re: Help Filling Out Form 8606

I made my first backdoor contribution for tax year 2019 this year (in 2020) since the deadline was extended. I filled out as follows: Line 1: $6000 Line 2: $0 Line 3: $6000 Line 14: $6000 Can anyone confirm if this is all I need to fill out this year? Thank you in advance! Hi I did similar, except ...
by catchinup
Fri Mar 27, 2020 11:15 pm
Forum: Investing - Theory, News & General
Topic: Interesting read: "Analyzing the Effects of Aggressive Rebalancing During Bear Markets"
Replies: 11
Views: 1217

Re: Interesting read: "Analyzing the Effects of Aggressive Rebalancing During Bear Markets"

I just re-balanced today because I hit one year since I last re-balanced. This resulted in me selling $100K in bond index in exchange for stock index. I thought about *not* re-balancing because of the market situation. My target stock/bond ratio is 50/50. It was a little over 55/45 when I re-balance...
by catchinup
Mon Mar 23, 2020 12:21 am
Forum: Personal Investments
Topic: Re-balance Jitters & International Allocation
Replies: 6
Views: 469

Re: Re-balance Jitters & International Allocation

There is impact to any rebalancing within a taxable account in terms of capital gains and losses. Perhaps you want to rethink having international in your portfolio if you are nervous as you indicated. An alternative is a US portfolio of Total Stock and Total Bond as discussed in more detail here: ...
by catchinup
Sun Mar 22, 2020 6:07 pm
Forum: Personal Investments
Topic: Re-balance Jitters & International Allocation
Replies: 6
Views: 469

Re: Re-balance Jitters & International Allocation

bgf wrote: Sun Mar 22, 2020 1:36 pm if you're having difficulty rebalancing according to plan, consider vanguards lifestrategy funds. they rebalance US/International and stock/bonds for you automatically.
Thanks, I will consider.
by catchinup
Sun Mar 22, 2020 1:32 pm
Forum: Personal Investments
Topic: Re-balance Jitters & International Allocation
Replies: 6
Views: 469

Re-balance Jitters & International Allocation

I will turn 59 this year and my stock/bond ratio is 50/50. I started following the 3 fund portfolio model a couple of years back. Being nervous about International stock (perhaps unjustifiably), I decided to maintain the ratios below and re-balance once a year. Target Allocation Bond - 50% Domestic ...
by catchinup
Sun Mar 22, 2020 11:50 am
Forum: Personal Investments
Topic: Tax Loss Harvesting Questions - Am I doing this right?
Replies: 6
Views: 414

Re: Tax Loss Harvesting Questions - Am I doing this right?

I have to pay income tax on the dividends and capital gains the funds throw off in my taxable account. I want a loss to offset them. In addition, I can always use the personal income tax deduction. Not quite. Capital losses don't count against dividends, only capital gains. In addition, your Vangua...
by catchinup
Sat Mar 21, 2020 7:58 pm
Forum: Personal Investments
Topic: Tax Loss Harvesting Questions - Am I doing this right?
Replies: 6
Views: 414

Re: Tax Loss Harvesting Questions - Am I doing this right?

Why not sell VTIAX first? Many here sell it and buy VFWAX which is closer to VTIAX than VFIAX is to VTSAX. Then you can rebalance part of VTSAX into VFWAX, instead, as well, without creating a wash sale of VTIAX. Oh! that might be a better idea ... to exchange VTIAX for VFWAX. I don't own any inter...
by catchinup
Sat Mar 21, 2020 7:12 pm
Forum: Personal Investments
Topic: Tax Loss Harvesting Questions - Am I doing this right?
Replies: 6
Views: 414

Tax Loss Harvesting Questions - Am I doing this right?

Hi All, I have read the group wiki and posts on TLH and still need to confirm some things. If someone can please offer input I'd appreciate it. Below is a snapshot of the lots in my taxable account. In addition to the lots shown, I purchased $14k of VTSAX in my Roth IRA account on Feb 26, 2020. My o...
by catchinup
Fri Jan 17, 2020 1:44 am
Forum: Investing - Theory, News & General
Topic: FZROX vs VTSAX
Replies: 38
Views: 10309

Re: FZROX vs VTSAX

You can look up the fund holdings or the Monthly Fact Sheet for the funds to see how much they are holding in cash. The author was too lazy to look up both FZROX (he assumed that that they hold all dividends in cash for the full year) and VTSAX (he assumed they hold all dividends in cash for up to ...
by catchinup
Thu Jan 16, 2020 3:40 am
Forum: Investing - Theory, News & General
Topic: FZROX vs VTSAX
Replies: 38
Views: 10309

Re: FZROX vs VTSAX

jhfenton wrote: Tue Jan 07, 2020 10:29 am FZROX is perfectly capable of internally reinvesting dividends during the year and still having enough cash to pay out unreinvested dividends at year end.
Even if it's capable, do we know that it does? Or are we making one assumption and the author of the article is making another?
by catchinup
Sun Jan 12, 2020 8:59 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 35
Views: 3323

Re: Mega Backdoor Roth Questions

Employee after-tax and actual employer contributions are not reported on Form W-2. Also, a 401k is a qualified plan. All contributions are reported on Form 5500-EZ if required due to a one-participant plan year-end balance > $250K. Hi! Is form 5500-EZ the only place where one reports voluntary empl...
by catchinup
Sun Jan 12, 2020 8:52 pm
Forum: Personal Investments
Topic: Alternative to solo401k?
Replies: 14
Views: 967

Re: Alternative to solo401k?

The only time the IRS requires an EIN for a one-participant 401k plan is when you must communicate with the IRS about the plan. For most people that is if/when the year-end plan balance exceeds $250K and a Form 5500-EZ is required. Also, if you commit a 401k plan error and can not use the Self-Corr...
by catchinup
Sun Jan 12, 2020 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: Help with My First Mega Back Door Roth Trx
Replies: 10
Views: 1216

Re: Help with My First Mega Back Door Roth Trx

Almost there, except maybe for line 2. While a common law employee's Section 125 salary reductions for HSA contributions, insurance (health, disability, dental, vision, etc...) reduce the amount available for retirement plan contributions. They may not for an S-Corp 2% shareholder-employee. An S-Co...
by catchinup
Tue Jan 07, 2020 12:26 am
Forum: Investing - Theory, News & General
Topic: VTSAX & VTIAX Dividends
Replies: 19
Views: 2596

Re: VTSAX & VTIAX Dividends and Interest payouts

Listen folks, all those dividends are ORDINARY INCOME ! There is ordinary qualified dividend income and ordinary non-qualified dividend income. You may also label them qualified ordinary dividend income and non-qualified ordinary dividend income. You may also label them qualified dividend income an...
by catchinup
Mon Jan 06, 2020 1:20 am
Forum: Investing - Theory, News & General
Topic: VTSAX & VTIAX Dividends
Replies: 19
Views: 2596

Re: VTSAX & VTIAX Dividends and Interest payouts

It helps to give the names of the fund because most people haven't memorized the tickers. In any case, mutual funds don't pay interest, only dividends. Most of the dividends for Total Stock (VTSAX) will be qualified and taxed at the lower rate for qualified dividends. This is probably also true for...
by catchinup
Sun Jan 05, 2020 2:01 am
Forum: Personal Investments
Topic: Setting up for back door Roth. Need to close Sep IRA, rollover, or sell?
Replies: 14
Views: 1266

Re: Setting up for back door Roth. Need to close Sep IRA, rollover, or sell?

So the rollover of my SEP to my 401K completed Jan 3, 2020. So if I do a 2019 non-deductible Traditional IRA contribution, I can still do a conversion to Roth with no pro-rata conflict as long as I convert in 2021? I did read the wiki but still am not 100% sure. Thanks! You do not have to wait unti...
by catchinup
Sat Jan 04, 2020 9:15 pm
Forum: Investing - Theory, News & General
Topic: VTSAX & VTIAX Dividends
Replies: 19
Views: 2596

VTSAX & VTIAX Dividends

My taxable account contains shares of VTSAX and VTIAX. In 2019 they threw off a total of $15,713.43 in dividends and interest payouts. Is that going to be taxable as ordinary income? Thanks
by catchinup
Sat Jan 04, 2020 9:06 pm
Forum: Personal Investments
Topic: Can someone in layman’s terms tell my why I should have a HSA?
Replies: 25
Views: 3051

Re: Can someone in layman’s terms tell my why I should have a HSA?

Keep in mind that certain states such as mine (CA) do not differentiate between an HSA and a normal taxable account. My contributions in 2019 will not be deducted from my state income and all realized gains, dividends and interest earned are taxed as well. It gets annoying during tax time bc my HSA...
by catchinup
Sat Jan 04, 2020 9:02 pm
Forum: Personal Investments
Topic: Setting up for back door Roth. Need to close Sep IRA, rollover, or sell?
Replies: 14
Views: 1266

Re: Setting up for back door Roth. Need to close Sep IRA, rollover, or sell?

The calendar is your enemy at this point in getting an IRA rollover done by 12/31/19. However, that is no impediment to doing a 2019 Backdoor Roth. As long as you understand that it is a two-step process and not an atomic process. You can make your non-deductible traditional IRA contribution anytim...
by catchinup
Sat Dec 28, 2019 5:15 am
Forum: Personal Finance (Not Investing)
Topic: Help with My First Mega Back Door Roth Trx
Replies: 10
Views: 1216

Re: Help with My First Mega Back Door Roth Trx

but if you are a specified service trade or business or non-SSTB below the QBI taxable income range. I might pay myself a lower be reasonable compensation. I didn't quite follow what you were saying above? ^^^ I added your corrections below. The 401K amounts checked out in tfb's calculator. I am th...
by catchinup
Sat Dec 28, 2019 3:32 am
Forum: Personal Finance (Not Investing)
Topic: Tax question
Replies: 7
Views: 641

Re: Optimizing salary vs QBI with a solo 401k

Anyone with any input? I've been trying very hard to find a competent CPA. I was working with one for several years and I found out via this board that many things she was doing were not correct. When I started looking into things and asking questions she dropped me as a client giving the reason sh...
by catchinup
Sat Dec 28, 2019 2:50 am
Forum: Personal Investments
Topic: How to pay for Roth conversion
Replies: 21
Views: 2618

Re: How to pay for Roth conversion

02nz wrote: Thu Dec 26, 2019 9:06 pm
catchinup wrote: Thu Dec 26, 2019 8:57 pm
02nz wrote: Thu Dec 26, 2019 6:04 pm (unless you're within the standard deduction and then it's free).
do you mean unless (your taxable income) is within the standard deduction?
Yes.
:thumbsup
by catchinup
Sat Dec 28, 2019 2:49 am
Forum: Personal Investments
Topic: Mega back door Roth at Fidelity questions for non prototype solo 401k
Replies: 1
Views: 296

Re: Mega back door Roth at Fidelity questions for non prototype solo 401k

Just some basic questions for anyone that does this strategy at Fidelity utilizing a non prototype solo 401k. Ive opened two accounts with my plan documents for basically pretax and employee after tax nondeductible contributions. Do i need to open another Roth after tax to perform the in plan conve...
by catchinup
Thu Dec 26, 2019 8:57 pm
Forum: Personal Investments
Topic: How to pay for Roth conversion
Replies: 21
Views: 2618

Re: How to pay for Roth conversion

02nz wrote: Thu Dec 26, 2019 6:04 pm (unless you're within the standard deduction and then it's free).
do you mean unless (your taxable income) is within the standard deduction?
by catchinup
Thu Dec 26, 2019 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question
Replies: 7
Views: 641

Re: Optimizing salary vs QBI with a solo 401k

Anyone with any input? I've been trying very hard to find a competent CPA. I was working with one for several years and I found out via this board that many things she was doing were not correct. When I started looking into things and asking questions she dropped me as a client giving the reason sh...
by catchinup
Thu Dec 26, 2019 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Help with My First Mega Back Door Roth Trx
Replies: 10
Views: 1216

Re: Help with My First Mega Back Door Roth Trx

Spirit Rider wrote: Thu Dec 26, 2019 9:29 am Almost there, except maybe for line 2.
Ok I think I fixed it per your comment plus added the rough calculation for Salary vs k-1. Is it Ok now? Hopefully others can find this example useful.

Image
by catchinup
Thu Dec 26, 2019 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: QBI vs Reasonable Salary - How much of each?
Replies: 26
Views: 2395

Re: QBI vs Reasonable Salary - How much of each?

Before you start genuflecting you should realize I am fallible and can and have made mistakes here even when I know better. Case in point. This part of my previous post is incomplete and misleading. The fact they are included in W-2 Box 1 wages establishes that they are compensation . This means no...
by catchinup
Thu Dec 26, 2019 1:15 am
Forum: Personal Finance (Not Investing)
Topic: Help with My First Mega Back Door Roth Trx
Replies: 10
Views: 1216

Re: Help with My First Mega Back Door Roth Trx

That Fidelity article reflects a common fundamental misapplication of the applicable limits. There is NO $62K limit, only a possible $62K contribution total. There is an employee deferral limit (2019 = $19K) and a (employee + employer) contribution annual addition limit (2019 = $56K). There is an e...
by catchinup
Wed Dec 25, 2019 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: QBI vs Reasonable Salary - How much of each?
Replies: 26
Views: 2395

Re: QBI vs Reasonable Salary - How much of each?

I think this is a great thread to clear up the definition of compensation. I hope someone can correct me if I am wrong but benefits can be considered part of one's compensation when determining what to pay yourself as a W2 employee? As an example an S-corp makes $250k profit and we will ignore empl...
by catchinup
Wed Dec 25, 2019 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: QBI vs Reasonable Salary - How much of each?
Replies: 26
Views: 2395

Re: QBI vs Reasonable Salary - How much of each?

I think this is a great thread to clear up the definition of compensation. I hope someone can correct me if I am wrong but benefits can be considered part of one's compensation when determining what to pay yourself as a W2 employee? As an example an S-corp makes $250k profit and we will ignore empl...
by catchinup
Wed Dec 25, 2019 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: QBI vs Reasonable Salary - How much of each?
Replies: 26
Views: 2395

Re: QBI vs Reasonable Salary - How much of each?

Just a note to say that the effort spirit rider has taken over this and other threads to give guidance on 199A issues(and others but especially 199A) is really phenomenal. agreed! I get better advice here than I get from the CPAs I have hired. So I've learned to cross check what they are telling me...
by catchinup
Wed Dec 25, 2019 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Help with My First Mega Back Door Roth Trx
Replies: 10
Views: 1216

Re: Help with My First Mega Back Door Roth Trx

**Employer contributions for a self-employed individual reduces compensation. The maximum employee after-tax contributions are self-employed earned income (business profit - 1/ SE tax) - employer contributions = compensation - employee deferrals - employer contributions if compensation is < the sta...
by catchinup
Wed Dec 25, 2019 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: QBI vs Reasonable Salary - How much of each?
Replies: 26
Views: 2395

Re: QBI vs Reasonable Salary - How much of each?

That formula helps a lot. Yes it seems like an easier way to think about it. Last year my ratio was salary/k-1 = 1.3 I recently started working with a new accountant who thinks I can get away with the same salary as last year. But that would push the above ratio well below 1.0 because my profits th...
by catchinup
Wed Dec 25, 2019 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: QBI vs Reasonable Salary - How much of each?
Replies: 26
Views: 2395

Re: QBI vs Reasonable Salary - How much of each?

are "business profits" defined as K-1 profits here?[/quote] Effectively another way of stating this is that W-2 wages should generally be >= K-1 distributions up to W-2 wages 2X K-1 distributions. [/quote] That formula helps a lot. [/quote] Yes it seems like an easier way to think about i...
by catchinup
Wed Dec 25, 2019 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: My mega backdoor Roth hesitations - justified or ill-informed?
Replies: 39
Views: 3100

Re: My mega backdoor Roth hesitations - justified or ill-informed?

Spirit Rider wrote: Wed Dec 25, 2019 2:18 am @clipson is referring to an ERISA employer plan administered by Fidelity. You have a self-administered plan. Fidelity is only acting as a custodian. You are responsible for all administrative tasks
:thumbsup
by catchinup
Wed Dec 25, 2019 1:58 am
Forum: Personal Finance (Not Investing)
Topic: QBI vs Reasonable Salary - How much of each?
Replies: 26
Views: 2395

Re: QBI vs Reasonable Salary - How much of each?

Spirit Rider wrote: Wed Dec 04, 2019 4:28 pm W-2 wages of < 50% of business profits.
are "business profits" defined as K-1 profits here?
by catchinup
Wed Dec 25, 2019 1:10 am
Forum: Personal Finance (Not Investing)
Topic: What NON-frugal thing did you do today?
Replies: 79
Views: 5709

Re: What NON-frugal thing did you do today?

Triple digit golfer wrote: Tue Dec 24, 2019 4:29 pm I got gas for 3 pennies per gallon more than the station on the other corner.
I got gas for 9c more per gallon because the more expensive gas station had a 7-Eleven and I wanted a coffee. But, knowing I was doing something very wrong, I only got 5 gallons instead of filling my tank.
by catchinup
Wed Dec 25, 2019 1:08 am
Forum: Personal Finance (Not Investing)
Topic: Help with My First Mega Back Door Roth Trx
Replies: 10
Views: 1216

Help with My First Mega Back Door Roth Trx

I am preparing to execute my first mega back door roth transaction. I have a non-prototype plan set up with Fidelity. The plan has 3 sub-accounts. #1. Tax deferred 401K #2. After Tax 401K #3. Roth 401K So I think this is what I'm supposed to do: Step 1. Into account #1, I will contribute: $19K + $6K...
by catchinup
Wed Dec 25, 2019 12:17 am
Forum: Personal Finance (Not Investing)
Topic: My mega backdoor Roth hesitations - justified or ill-informed?
Replies: 39
Views: 3100

Re: My mega backdoor Roth hesitations - justified or ill-informed?

2. This was an intentional decision by Fidelity to make sure that plan members understand the consequences of what they're doing. They don't want I'm confused because I thought you had to set up a non-prototype plan with Fido to do mega back door Roth through them. I have a non-prototype plan with ...
by catchinup
Wed Dec 25, 2019 12:12 am
Forum: Personal Finance (Not Investing)
Topic: My mega backdoor Roth hesitations - justified or ill-informed?
Replies: 39
Views: 3100

Re: My mega backdoor Roth hesitations - justified or ill-informed?

HEDGEFUNDIE wrote: Mon Nov 18, 2019 3:39 pm
“I would like to set up automatic in-plan Roth conversion of my after-tax contributions.”
Will Fido do set this up for you against a non-prototype plan?