Search found 87 matches

by catchinup
Wed Dec 04, 2019 4:33 am
Forum: Personal Finance (Not Investing)
Topic: QBI vs Reasonable Salary - How much of each?
Replies: 5
Views: 577

QBI vs Reasonable Salary - How much of each?

Last year my accountant split my S-Corp profit 50/50 between salary and pass thru K-1 profit against which I took a 20% QBI deduction on my personal return. Was wondering if that seems reasonable or if taking more K-1 profit than salary is OK as long as the W2 salary is "reasonable"? Or another way ...
by catchinup
Wed Dec 04, 2019 3:37 am
Forum: Personal Finance (Not Investing)
Topic: Self-employed health insurance and 401k contributions - check my reasoning, please
Replies: 16
Views: 780

Re: Self-employed health insurance and 401k contributions - check my reasoning, please

The self-employed health insurance deduction will reduce your QBI and compensation available for 401k contributions. I'm trying to understand the benefits of doing the above vs paying my insurance premiums out of pocket. I have an s-corp and no employees besides myself. If I pay my health insurance...
by catchinup
Sun Sep 15, 2019 11:02 am
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 34
Views: 2934

Re: Mega Backdoor Roth Questions

Thank you. Previously I understood you as saying the consensus was that it'd be best to have the S-Corp do the contribution on my behalf, making sure the after tax contribution amount was covered by my W2 wages. Correct, the contributions should be deducted from your S-Corp 2% shareholder-employee'...
by catchinup
Sat Sep 14, 2019 7:39 pm
Forum: Personal Investments
Topic: Indiv Roth 401k "Employee Salary Deferral"?
Replies: 5
Views: 483

Re: Indiv Roth 401k "Employee Salary Deferral"?

All Roth contributions are made as employee deferrals. You will have to pay taxes on the deferrals. The employer cannot make Roth contributions. Basically, you (employee) will decide what deferrals to make. Up to $19,000 (plus catch-up contributions if eligible) can be made however you please. All ...
by catchinup
Sat Sep 14, 2019 2:40 am
Forum: Personal Investments
Topic: Indiv Roth 401k "Employee Salary Deferral"?
Replies: 5
Views: 483

Indiv Roth 401k "Employee Salary Deferral"?

I have an individual Roth solo 401(K) and am confused about the meaning of the "Employee Salary Deferral" bucket for this account. I thought all Roth contributions were after tax. So what is the deferral referring to? If I contribute there, does not my S-Corp still need to pay Payroll taxes against ...
by catchinup
Thu Sep 05, 2019 2:48 am
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 34
Views: 2934

Re: Mega Backdoor Roth Questions

Here again as we are in uncharted territory, the procedure for an S-Corp is unknown. However, If an S-Corp shareholder-employee is going to make employee after-tax contributions from personal funds. I think it would probably be best to not involve the S-Corp and make the contribution directly to th...
by catchinup
Thu Sep 05, 2019 2:37 am
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 34
Views: 2934

Re: Mega Backdoor Roth Questions

P.S. The easiest thing to do is roll everything to Roth IRA and pay taxes on the pre-tax money (the earnings that have accrued on your contributions). I agree with this route. If you had the ability to "instantly" transfer, then all the growth happens inside the Roth, which is the whole point. The ...
by catchinup
Wed Sep 04, 2019 1:24 am
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 34
Views: 2934

Re: Mega Backdoor Roth Questions

The consensus of professional TPAs is that employee after-tax contributions should be deducted from the participants W-2 wages and contributed by the S-Corp. Hi! Based on your response, I've tried to work out how the contributions would be done in Excel. I'm not sure if it's correct and I'm not sur...
by catchinup
Mon Sep 02, 2019 3:30 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 34
Views: 2934

Re: Mega Backdoor Roth Questions

or possibly personal funds I was planning to use mostly personal, after tax savings, because most of the W2 wages will be spent on living expenses. Is that OK? Or would the IRS say I should really be increasing my salary (i.e. tax less pass thru) and contributing based on W2 wages into either defer...
by catchinup
Mon Sep 02, 2019 12:39 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 34
Views: 2934

Re: Mega Backdoor Roth Questions

As has been pointed out, pre-tax balances in traditional, SEP and SIMPLE IRA accounts are irrelevant to a MBR. They are only relevant to a BR. Hi I have a couple of questions: 1) I have a Solo 401K with Vanguard with tax deferred contributions. The Vanguard plan doesn't allow in service distributio...
by catchinup
Mon May 13, 2019 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: How to Figure Payroll Taxes for S-Corp?
Replies: 22
Views: 1266

Re: How to Figure Payroll Taxes for S-Corp?

I'm a CPA and I also do not do payroll. My advice--cough up the money and pay for a payroll service, such as Paychex. Once you take into account the value of your time, you will realize that it costs a lot less than you think. Thanks. I wonder why the last 2 accountants I had figured the payroll fo...
by catchinup
Sun May 12, 2019 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: How to Figure Payroll Taxes for S-Corp?
Replies: 22
Views: 1266

Re: How to Figure Payroll Taxes for S-Corp?

How do you pay employment taxes and invest into 401k if you pay yourself once a year? Awdesign -- I just pay all my taxes in Q4. For tax deferred 401k, i usually contribute a conservative amount as the year progresses.. which does commit me to a certain level of salary..but I have the option to do ...
by catchinup
Sun May 12, 2019 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: How to Figure Payroll Taxes for S-Corp?
Replies: 22
Views: 1266

Re: How to Figure Payroll Taxes for S-Corp?

I am not sure if it is legal not to take reasonable w-2 every month. My accountant wants me to take w-2 salary every month to be safe. I pay myself w-2 monthly and take pass tru at the end of the year. It is easy to use QuickBooks for payroll. I use QBOnline Essentials + QBO Payroll. I've been doin...
by catchinup
Sun May 12, 2019 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: How to Figure Payroll Taxes for S-Corp?
Replies: 22
Views: 1266

Re: How to Figure Payroll Taxes for S-Corp?

awdesign wrote:
Sun May 12, 2019 10:51 am
I have been using Quickbook online payroll service and happy so far. It send you reminders and does not file and epayment.
Thanks do you think I can continue filing zero in Q1-Q3? And figure my salary at year end the way I have been ?
by catchinup
Sun May 12, 2019 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: How to Figure Payroll Taxes for S-Corp?
Replies: 22
Views: 1266

Re: How to Figure Payroll Taxes for S-Corp?

I do payroll myself, and it really is quite simple. My recommendation (what I did) start out using quicken online payroll. Do that for a year (or more) and you'll understand exactly what needs to be done. Then you can decide whether you want to keep using them or do it yourself. Thanks. Do you mean...
by catchinup
Sat May 11, 2019 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: How to Figure Payroll Taxes for S-Corp?
Replies: 22
Views: 1266

How to Figure Payroll Taxes for S-Corp?

I am self-employed through my S-Corp. I have a new accountant, but he does not do payroll. My old accountant did my payroll. I'm trying to figure out how to fill the gap in what my previous accountant did for my payroll. I would also like to keep the same procedures my old accountant and I used to f...
by catchinup
Sat Mar 30, 2019 2:43 pm
Forum: Personal Investments
Topic: self-directed solo 401 k using Vanguard pooled account, etc.
Replies: 65
Views: 5091

Re: self-directed solo 401 k using Vanguard pooled account, etc.

Plus Vanguard prototype plan does not allow brokerage and does not allow admiral. FWIW (if the "Prototype plan" means the self-employed Solo 401k provided from Vanguard) it does now allow admiral shares. They converted mine several months ago. Last time I checked however, the website still does not...
by catchinup
Sat Mar 30, 2019 11:28 am
Forum: Personal Investments
Topic: Roth Solo 401K due to QBI?
Replies: 21
Views: 1281

Re: Roth Solo 401K due to QBI?

Spirit Rider wrote:
Fri Mar 29, 2019 11:51 pm

Your maximum contributions are your earned income (business profits - 1/2 SE tax). So your earned income = $12,326 - $871 = $11,455. Your remaining contribution space is $11,455 - $9,758 = $1,697.
If he/she puts the remaining $1,697 into Solo 401k Roth, does that then zero out the QBI?
by catchinup
Wed Mar 13, 2019 11:59 pm
Forum: Personal Finance (Not Investing)
Topic: S-Corp Tax Return: Shareholder's Basis Computation?
Replies: 1
Views: 199

S-Corp Tax Return: Shareholder's Basis Computation?

Hi I am using Turbotax to finish my 2018 S-Corp tax return. In previous years I had an accountant do it and she would include a Shareholder's Basis Computation worksheet. The TurboTax program did not produce that for me. Do I need it? If it's only needed if I'm reporting a loss, then perhaps I don't...
by catchinup
Sun Mar 10, 2019 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo-Tax for Business Question
Replies: 3
Views: 327

Re: Turbo-Tax for Business Question

I use TT Business, and I always go through the interview and answer the questions in the order they ask them. Is there some reason you dont want to do that? No, I just have never used TT before. I just want to finalize the review copy provided by my former accountant since it looks fine to me. My p...
by catchinup
Fri Mar 08, 2019 10:46 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo-Tax for Business Question
Replies: 3
Views: 327

Turbo-Tax for Business Question

I already have a draft 2018 S-Corp return on paper from my accountant who quit before we finished. Can it easily be keyed-in and finalized in TurboTax for Business? Or do I have to start over? (I also posted on the TurboTax forum).
by catchinup
Wed Mar 06, 2019 1:32 am
Forum: Personal Finance (Not Investing)
Topic: Filed SEP-IRA for wrong year, easy way to fix?
Replies: 9
Views: 620

Re: Filed SEP-IRA for wrong year, easy way to fix?

Hi I filed SEP IRA deductions for year 2017 when it was recorded by mutual fund company for 2018. Using TurboTax I deducted it for 2017 but now am receiving the tax form reporting the SEP contributions document. Anyone know what is best / easiest I should to do here? Truly appreciate any tips! My u...
by catchinup
Tue Feb 26, 2019 12:30 am
Forum: Personal Investments
Topic: I'm essentially market timing, but can't bring myself to stop.
Replies: 71
Views: 7165

Re: I'm essentially market timing, but can't bring myself to stop.

catchinup, you need to think of all accounts as part of one portfolio. yes, that part I understand and I'm balancing everything considering the whole portfolio. For taxable, it's highly preferred to use only tax-advantaged equity index funds; however, if you don't have enough room in tax-advantaged...
by catchinup
Mon Feb 25, 2019 3:41 pm
Forum: Personal Investments
Topic: I'm essentially market timing, but can't bring myself to stop.
Replies: 71
Views: 7165

Re: I'm essentially market timing, but can't bring myself to stop.

catchinup, you appear to be 70/30 at age 58 and that's way out of your comfort zone. Perhaps 40-50% equity. Paul Paul Last night I started coming to a similar conclusion. Was also thinking about the fact that I have about $2M right now between cash/equity/bond. My house will be paid off by the time...
by catchinup
Sun Feb 24, 2019 7:59 pm
Forum: Personal Investments
Topic: I'm essentially market timing, but can't bring myself to stop.
Replies: 71
Views: 7165

Re: I'm essentially market timing, but can't bring myself to stop.

Ok, so I have a significant chunk of excess cash ... I want to put it into the market, but I just can't bring myself to pull the trigger. I'm having the same problem as the OP. I have somewhere around $750K to invest in taxable, and based on the advice from this board, I should be allocating it to ...
by catchinup
Sun Feb 24, 2019 2:46 am
Forum: Personal Investments
Topic: ITOT versus VTSAX
Replies: 33
Views: 5671

Re: ITOT versus VTSAX

I am opening an individual 401k through E*TRADE and am not able to buy the fund that I have bought in my IRA (VTSAX). I was wondering if ITOT is the most similar total stock market product offered through E*TRADE. If not, could you point me in the correct direction? Additionally, is there a good we...
by catchinup
Sat Feb 23, 2019 11:45 pm
Forum: Personal Investments
Topic: Quick Solo 401k Questions
Replies: 19
Views: 1331

Re: Quick Solo 401k Questions

Your spreadsheet is what I was going to create for you. You are correct on your assumptions. Now that you have a spread sheet, take a look at maybe decreasing your income down from $94k to $50k and see what happens. Although your 401k contribution will decrease by $11k and at the 24% tax bracket wi...
by catchinup
Sat Feb 23, 2019 6:59 pm
Forum: Personal Investments
Topic: Financial Predators and the Elderly, and What YOU Need to Do
Replies: 41
Views: 3711

Re: Financial Predators and the Elderly, and What YOU Need to Do

Not to discount the concerns raised by the OP, but I believe most cases of elder financial exploitation are committed by family members. I read a lot on this topic because I observed it happening within my own family. And yes, there are also a lot of stranger predators hunting for vulnerable seniors...
by catchinup
Sat Feb 23, 2019 6:16 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 65
Views: 3388

Re: Mega Backdoor Roth Questions

Also, I believe your CPA's calculation of distributions is incorrect. It should be $132,176.00 - $40,500 - $24,500 - ($65,000 * 25% = $16,250) = $50,926. After I raised it with her, my accountant said I could make the additional $3,250 employer side contribution which I did. The S-Corp took in no a...
by catchinup
Sat Feb 23, 2019 4:42 pm
Forum: Personal Investments
Topic: Quick Solo 401k Questions
Replies: 19
Views: 1331

Re: Quick Solo 401k Questions

If you want to give your real values out there for your business I can look at your math and see what is optimal for you. Please include any W2 income you may that is not part of your business. All my 2017 and earlier income has come through my S-Corp. Below is my accountant's original worksheet fo...
by catchinup
Sat Feb 23, 2019 3:30 pm
Forum: Personal Investments
Topic: Quick Solo 401k Questions
Replies: 19
Views: 1331

Re: Quick Solo 401k Questions

Your accountant may have kept your W2 income lower to decrease your payroll taxes which may be the right decision. Hi Maybe my use of the word "if" should have been "since." I was trying to say it seems like she *didn't* do what you saying above. The employer contribution which she told me was "max...
by catchinup
Sat Feb 23, 2019 1:53 pm
Forum: Personal Investments
Topic: Sole Proprietor investing into Solo 401k
Replies: 22
Views: 992

Re: Sole Proprietor investing into Solo 401k

I set it up at Fidelity which I believe does not even offer Roth solo 401ks. Wow that's surprising. I wonder why. Vanguard offers both deferred and Roth types. I have both right now with Vanguard but I most likely will move over to Fidelity later this year to open a custodial account with them whic...
by catchinup
Thu Feb 21, 2019 12:03 pm
Forum: Personal Investments
Topic: Seeking Asset Location Advice
Replies: 15
Views: 1587

Re: Seeking Asset Location Advice

If you are going to tax loss harvest, you need to give some thought to what you are holding in your SEP IRA and Roth IRA because you hold some of the same exact funds in those accounts as well. So you cannot buy the fund that will be harvested in those accounts 30 days before or after selling your ...
by catchinup
Thu Feb 21, 2019 5:19 am
Forum: Personal Investments
Topic: Hourly fee-based advisor?
Replies: 32
Views: 2426

Re: Hourly fee-based advisor?

Over the past few months I've interviewed every Garrett network advisor in my area. It happened that they were all hourly fee based. Going rate here in LA is $200/hour. Financial plan quoted costs were $2100 - $3500. Last year I hired a non-Garret CFP to do what he called a "streamlined retirement p...
by catchinup
Thu Feb 21, 2019 4:08 am
Forum: Personal Investments
Topic: Quick Solo 401k Questions
Replies: 19
Views: 1331

Re: Quick Solo 401k Questions

You can not have the wages be $20k and then add money to a 401k because there is no money left. Hi I am not an expert on this but I think your example is correct as long as you are zeroing out the corporate net profit. In my case after my accountant set my salary, there was still room left to take ...
by catchinup
Thu Feb 21, 2019 1:12 am
Forum: Personal Investments
Topic: Seeking Asset Location Advice
Replies: 15
Views: 1587

Re: Seeking Asset Location Advice

grabiner wrote:
Wed Feb 20, 2019 9:51 pm
Vanguard does allow this; the frequent-trading restrictions only apply to the same fund.
Cool. I also found this link on tax loss harvesting specifically with Vanguard.

https://www.physicianonfire.com/tax-los ... -vanguard/
by catchinup
Wed Feb 20, 2019 11:21 pm
Forum: Personal Investments
Topic: Quick Solo 401k Questions
Replies: 19
Views: 1331

Re: Quick Solo 401k Questions

Spirit Rider wrote:
Wed Feb 20, 2019 9:44 pm
The maximum employer contribution is exactly the same whether it is for one-participant 401k or a SEP IRA
So since 2004 since I opened my S-corp, I've had not one but two different accountants maxing my employer contribution 5% lower than it could have been. I'm going to bed to cry.
by catchinup
Wed Feb 20, 2019 8:09 pm
Forum: Personal Investments
Topic: Seeking Asset Location Advice
Replies: 15
Views: 1587

Re: Seeking Asset Location Advice

You also can and should harvest losses on equities held in taxable accounts, which can give you a nice annual tax deduction as well as buffering future capital gains. This is a great point. If I plan to harvest, is Vanguard a good custodian for Tax free? I know they have frequent trading restrictio...
by catchinup
Wed Feb 20, 2019 6:04 pm
Forum: Personal Investments
Topic: Quick Solo 401k Questions
Replies: 19
Views: 1331

Re: Quick Solo 401k Questions

Depends on whether you are self-employed (Schedule C) or an owner-shareholder of an S-Corp. Drawing a salary from an S-Corp the employer contribution is up to 25% of salary (and zero percent on distributions). But as a sole proprietor it's 20% of your net income - 1/2 SE taxes. Are you saying if yo...
by catchinup
Wed Feb 20, 2019 3:23 pm
Forum: Personal Investments
Topic: Quick Solo 401k Questions
Replies: 19
Views: 1331

Re: Quick Solo 401k Questions

Thanks. I got 2744 first too, I think that's 25% deferral. I read somewhere that I can only really do 20%. Perhaps because I'm not an scorp. Maybe I read something wrong. I don't know the answer but I can comment. I used to contribute to a SEP IRA. The accountant I had back then said I could only d...
by catchinup
Wed Feb 20, 2019 1:39 am
Forum: Personal Investments
Topic: Seeking Asset Location Advice
Replies: 15
Views: 1587

Re: Seeking Asset Location Advice

In your case, I would only hold bonds in taxable for a short term need or if you absolutely had to in order to meet asset allocation and I don't think that is your situation. Assuming you really are in the 24% bracket (after RMDs and annuity payments), you are right on the border between going muni...
by catchinup
Tue Feb 19, 2019 2:55 am
Forum: Personal Investments
Topic: Funding retirement with a taxable account
Replies: 14
Views: 1851

Re: Funding retirement with a taxable account

I have seen a lot of post about RMDs during retirement and how those could end up "screwing" you tax wise when in retirement. I relate to your question. I became concerned about this for myself as I watched my father paying AMT in retirement and having to take out RMDs and paying taxes on them when...
by catchinup
Mon Feb 18, 2019 4:14 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 65
Views: 3388

Re: CPA Says I Need Specialist - Does this sound right?

MikeG62 wrote:
Mon Feb 18, 2019 7:47 am

How about a PFS?

https://www.investopedia.com/terms/p/pe ... st-pfs.asp

These are speciality credentialed CPA’s who should know both the tax and investment (retirement planning) sides.
Looks interesting. I'll check into it. Thanks!
by catchinup
Mon Feb 18, 2019 4:13 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 65
Views: 3388

Re: CPA Says I Need Specialist - Does this sound right?

Have you considered searching for an Enrolled Agent with a specialty/experience in retirement plans? I do think that if you utilized a TPA they would be able to coordinate with your payroll services and provide a document that a CPA can interpet. However if you're doing it on you're own an enrolled...
by catchinup
Mon Feb 18, 2019 4:11 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 65
Views: 3388

Re: CPA Says I Need Specialist - Does this sound right?

barnaclebob wrote:
Fri Feb 15, 2019 9:20 am
Did you call it a mega backdoor roth conversion or an "after tax withdrawal and conversion to a roth IRA"?
I sent her emails and links about the topic. She responded saying she read it, so I believe she understood what I was talking about.
by catchinup
Mon Feb 18, 2019 4:01 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 65
Views: 3388

Re: CPA Says I Need Specialist - Does this sound right?

Spirit Rider is correct in that thread. I would not use the two plan document providers mentioned in that thread, I don't know of any other plan document providers. I could be wrong, but I have a feeling if I did, they wouldn't be an economical choice for a single person company like mine. But as i...
by catchinup
Mon Feb 18, 2019 3:52 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 65
Views: 3388

Re: CPA Says I Need Specialist - Does this sound right?

Yes this is my conclusion as well and what I plan to do. I do think Spirit Rider was correct as I mentioned. As far as where to open the plan, I subsequently spoke with Fidelity, and they seemed to know what I was talking about and could offer the required separate sub-accounts. So hopefully this w...
by catchinup
Mon Feb 18, 2019 3:48 pm
Forum: Personal Investments
Topic: Where to Park Emergency Money/Equivalent Yield Question
Replies: 26
Views: 3347

Re: Where to Park Emergency Money/Equivalent Yield Question

Kevin M wrote:
Mon Feb 18, 2019 3:07 pm

So Fed MM at 2.32% SEC yield is TEY for you of 2.57%
On the Fidelity web site, they quote the 7-day SEC yield on their MM funds. Is that typical? It could also be calculated over different windows, so I'm not sure why one would be quoted vs another?
by catchinup
Mon Feb 18, 2019 12:35 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Questions
Replies: 65
Views: 3388

Re: CPA Says I Need Specialist - Does this sound right?

There's a reason you asked for opinions here after getting similar answers from the two providers. There's a reason you think the poster here might be correct and the two providers are incorrect. You've got a bad feeling about this. Just move on to getting your plan right for 2019 rather than be un...