Search found 6075 matches

by HomeStretch
Thu Apr 22, 2021 3:36 pm
Forum: Personal Investments
Topic: Solo 401k contributed as Employer instead of Employee how to fix?
Replies: 22
Views: 906

Re: Solo 401k contributed as Employer instead of Employee how to fix?

I am going to take this in pieces. So you are saying Sahara I thought the calculation was: Net Earnings from Employment (1926 * .9235) minus 1/2 SE tax But in reality, the calculation is: Schedule C line 31 minus 1/2 SE tax Yes. .9235 is 100% - 7.65% (employer share of FICA up to the FICA wage base...
by HomeStretch
Thu Apr 22, 2021 2:49 pm
Forum: Personal Investments
Topic: Solo 401k contributed as Employer instead of Employee how to fix?
Replies: 22
Views: 906

Re: Solo 401k contributed as Employer instead of Employee how to fix?

+1 that you are double counting the employer portion of SE tax. Use the actual Schedule SE employer share of $137 to calculate the maximum contribution of $1,789. Using .9235 gives you an answer of $1,779 ($10 difference) so either there’s a typo in your #’s or your friend’s SE income caused them to...
by HomeStretch
Thu Apr 22, 2021 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Crazy Situation - Acura Dealer Gave Me Car With Wrong VIN Number - Wants to Swap Cars?
Replies: 79
Views: 3559

Re: Crazy Situation - Acura Dealer Gave Me Car With Wrong VIN Number - Wants to Swap Cars?

I would check with my insurance company before driving that "wrong" car anywhere to make sure I was covered. +1 Call your insurer before you drive the car another mile. My dealer transposed two VIN numbers when sending info to my insurer for a temporary insurance card needed to drive the ...
by HomeStretch
Thu Apr 22, 2021 8:50 am
Forum: Personal Investments
Topic: Any strategies to ensure children keep Roth until retirement
Replies: 31
Views: 1515

Re: Any strategies to ensure children keep Roth until retirement

After educating your children about the benefits of a Roth IRA and transferring the custodial accounts into their name at the age of majority, there is not much more you can do/control aside from whether or not you continue to match. It’s their account to do with what they please. Hopefully they wil...
by HomeStretch
Thu Apr 22, 2021 8:13 am
Forum: Personal Investments
Topic: Need portfolio guidance
Replies: 7
Views: 635

Re: Need portfolio guidance

... In my Vanguard ROTH IRA account, I was thinking moving from 100% APPLE stock to: 50% VBTLX - Vanguard Total US Bond Fund 50% VTSAX - Vanguard Total Stock Market Index Fund ... Consider holding 100% equity in your Roth IRA for higher expected growth, tax free. It may also be better to use VFIAX ...
by HomeStretch
Thu Apr 22, 2021 6:49 am
Forum: Personal Investments
Topic: Solo 401k contributed as Employer instead of Employee how to fix?
Replies: 22
Views: 906

Re: Solo 401k contributed as Employer instead of Employee how to fix?

Thanks SuzBaynan and Duckie. I've sent SpiritRider a PM. To summarize with more accurate information: Net profit = $1,926.00 Net earnings from self-employment = $1,926 * .09235 = $1778.66 Allowable contribution $1,779.00 Contribution for 2020 $2,000.00 Excess contribution for 2020 $221.00 The contr...
by HomeStretch
Wed Apr 21, 2021 10:28 pm
Forum: Personal Investments
Topic: Solo 401k Mega Backdoor Roth
Replies: 9
Views: 605

Re: Solo 401k Mega Backdoor Roth

None of the no/low fee mainstream Solo 401k plans offer a mega backdoor. You will need a plan through a third-party administrator (TPA) which usually involves a one-time set up fee and an annual fee. While I have no experience with any of the following, Employee Fiduciary, Guideline and Solo401k hav...
by HomeStretch
Wed Apr 21, 2021 8:03 pm
Forum: Personal Investments
Topic: Solo 401k contributed as Employer instead of Employee how to fix?
Replies: 22
Views: 906

Re: Solo 401k contributed as Employer instead of Employee how to fix?

I believe the contribution was made in 2020 for 2020.... If the contribution was made in 2020, then your friend cannot allocate any of it to 2021. I have never had to correct an excess Solo 401k contribution. You might search on SpiritRider’s past posts on this topic. I know this topic has come up ...
by HomeStretch
Wed Apr 21, 2021 7:45 pm
Forum: Personal Investments
Topic: Solo 401k contributed as Employer instead of Employee how to fix?
Replies: 22
Views: 906

Re: Solo 401k contributed as Employer instead of Employee how to fix?

Will your friend have 2021 SE earnings? If yes, the easiest fix would be for your friend as plan administrator to classify the contribution of $1775 made in calendar year 2021... Do you mean 2020 here? In which calendar year did your friend make the contribution - 2020 or 2021? It sounded like your...
by HomeStretch
Wed Apr 21, 2021 7:05 pm
Forum: Personal Investments
Topic: Solo 401k contributed as Employer instead of Employee how to fix?
Replies: 22
Views: 906

Re: Solo 401k contributed as Employer instead of Employee how to fix?

... So the contribution should have been $1,649. The contributing as "emploYER" seems to be the easy fix. What to do about the excess contribution? $1775 self-employment (SE) income x .9235 = $1639 unless the SE income caused your friend to exceed the 2020 FICA wage base which resulted in...
by HomeStretch
Wed Apr 21, 2021 6:45 pm
Forum: Personal Investments
Topic: Solo 401k contributed as Employer instead of Employee how to fix?
Replies: 22
Views: 906

Re: Solo 401k contributed as Employer instead of Employee how to fix?

I assumed from your post when I responded that your friend was eligible to make a $1775 employee elective deferral per the accountant’s calculation and accidentally classified it as “employER” rather than “employEE” when making the contribution online. Based on your follow-up post, perhaps I didn’t ...
by HomeStretch
Wed Apr 21, 2021 6:25 pm
Forum: Personal Investments
Topic: Solo 401k contributed as Employer instead of Employee how to fix?
Replies: 22
Views: 906

Re: Solo 401k contributed as Employer instead of Employee how to fix?

ETrade does not report a contribution breakout between employER and employEE contributions to the IRS. So there is nothing for ETrade to correct. Your friend (not ETrade) is the Plan Administrator for their Solo 401k plan. Your friend should correct their 401k records (that they keep for their files...
by HomeStretch
Wed Apr 21, 2021 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Refund adjusted by IRS
Replies: 24
Views: 2341

Re: Refund adjusted by IRS

Consider responding timely to the IRS notice at the address given in the letter. Your response should document your conversation with the IRS agent (include date of call and name of agent). Send it certified mail so you have delivery tracking.
by HomeStretch
Wed Apr 21, 2021 3:10 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth worth it for small amount?
Replies: 6
Views: 466

Re: Backdoor Roth worth it for small amount?

+1

The alternative would be to invest the $1700 in a Taxable account. Prioritize contributing to a Roth account over Taxable regardless of the amount as Roth accounts grow tax free.
by HomeStretch
Wed Apr 21, 2021 2:46 pm
Forum: Personal Investments
Topic: Backdoor Roth doublecheck
Replies: 5
Views: 324

Re: Backdoor Roth doublecheck

Welcome to the forum! If you convert the entire balance of the (non-deductible) traditional IRA, the pretax gains in that account will be subject to tax. Alternatively, you can rollover those gains into your 401k too before converting the basis (cumulative non-deductible contributions) to Roth. The ...
by HomeStretch
Wed Apr 21, 2021 8:06 am
Forum: Personal Investments
Topic: Lots of mess ups - time to clean-up retirement planning
Replies: 20
Views: 2206

Re: Lots of mess ups - time to clean-up retirement planning

You may prefer a simple solution: 403b and both Roth IRAs: Vanguard Target Retirement 2040 401K: American Funds Balanced Fund Taxable account: Total US Stock Market Index Fund ... OP: +1 except: 1) consider putting the Roth IRAs in 100% equity (such as VFIAX S&P 500) for highest expected growth...
by HomeStretch
Tue Apr 20, 2021 10:33 pm
Forum: Personal Finance (Not Investing)
Topic: Problem with 5550-EZ on EFast for Final Return
Replies: 2
Views: 209

Re: Problem with 5550-EZ on EFast for Final Return

In case it is helpful, another poster encountered and resolved a similar issue per this thread:
viewtopic.php?f=2&t=339939
by HomeStretch
Tue Apr 20, 2021 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to get back to the grind?
Replies: 10
Views: 2207

Re: Do I need to get back to the grind?

If spouse could not work after today, how would that change your expense levels (sounds like healthcare costs would change) and # of years expenses saved in portfolio?
by HomeStretch
Tue Apr 20, 2021 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Warning: Solo K and 5500 EZ
Replies: 123
Views: 9166

Re: Warning: Solo K and 5500 EZ

... Anyone else switching from SF to EZ? The switch is required as Solo 401k plans must use Form 5500-EZ (and no longer use -SF) for plan years beginning after 2019. Luckily the forms are fairly similar so for those switching the learning curve shouldn’t be too steep. See “What’s New” on p.1 of the...
by HomeStretch
Tue Apr 20, 2021 3:37 pm
Forum: Personal Investments
Topic: worth contributing to t-IRA after maxing 401k?
Replies: 7
Views: 611

Re: worth contributing to t-IRA after maxing 401k?

If your 401k plans do not accept rollovers in, how much do you have in pretax vs. basis (= cumulative after-tax contributions) in each of your and spouse’s IRAs (traditional, rollover, SEP, SIMPLE)? The basis will be on the most recent Form 8606 that you each filed. If the tax to convert the pretax ...
by HomeStretch
Tue Apr 20, 2021 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Personal liability for filing complaint for financial adviser?
Replies: 51
Views: 4287

Re: Personal liability for filing complaint for financial adviser?

OP, if you are really concerned about personal liability, be careful what you are posting in online reviews and online forums. If enough specific information is included (like names, screen grabs, holdings, etc.), it may be easier to connect and trace them back to the source than you think. So consi...
by HomeStretch
Tue Apr 20, 2021 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Sole Beneficiary of Revocable Trust
Replies: 7
Views: 587

Re: Sole Beneficiary of Revocable Trust

Congratulations to your parents on getting their estate plans in place. The next step, if not done already, is to retitle property/accounts and set up account beneficiaries according to the advice given to them by the paralegal/attorney. If you are named as attorney-in-fact (primary or successor) in...
by HomeStretch
Tue Apr 20, 2021 9:16 am
Forum: Personal Investments
Topic: Better later than never?
Replies: 8
Views: 1543

Re: Better later than never?

... Yes, I do have several 403, 401 and IRA plans. ... ... I am trying to see what is the best way to consolidate them. ... For best feedback on how to reduce the number of accounts/holdings in your portfolio, more information is needed: 1) a breakdown by account of each account’s holdings and the ...
by HomeStretch
Mon Apr 19, 2021 9:05 pm
Forum: Personal Investments
Topic: Investment Help - Opening Taxable
Replies: 3
Views: 389

Re: Investment Help - Opening Taxable

1. Yes. Set the cost basis method for your new Taxable account to Specific Identification. 2. Yes, if you like the simplicity of a Target Date Fund, use a different fund with a higher bond %. Consider holding 100% equity (such as VFIAX S&P 500 fund) in your Roth IRA for highest expected growth, ...
by HomeStretch
Mon Apr 19, 2021 11:20 am
Forum: Personal Consumer Issues
Topic: downsize or remodel
Replies: 10
Views: 661

Re: downsize or remodel

Spend some time thinking through your retirement housing plan and make sure it works long term and for a variety of outcomes. If you remodeled, would the house be suitable to aging in place and would you want/can afford to stay there? - If yes, consider a comprehensive remodeling to make the house s...
by HomeStretch
Mon Apr 19, 2021 8:35 am
Forum: Personal Investments
Topic: Almost on FIRE
Replies: 32
Views: 4842

Re: Almost on FIRE

Is there a way to still contribute to my Roth IRA even though my salary exceeds $139,000? And if I can, should I do it? For retirement savings, prioritize Roth contributions over Taxable as Roth accounts grow tax free. If you can utilize the Roth options, below, it’s worthwhile funding them to the ...
by HomeStretch
Mon Apr 19, 2021 7:42 am
Forum: Personal Investments
Topic: Need Help with Investment Plan - Close to Retirement
Replies: 12
Views: 1686

Re: Need Help with Investment Plan - Close to Retirement

Consider editing your original post using the pencil icon in the upper right corner to create an empty line between each type of account you/spouse have to make it easier for posters to review your accounts/holdings. It would also be helpful if you can add where each account is held (i.e., Fidelity,...
by HomeStretch
Sun Apr 18, 2021 8:28 pm
Forum: Personal Investments
Topic: Starting a Roth at 50
Replies: 4
Views: 753

Re: Starting a Roth at 50

Welcome to the forum!

At age 50+, you are eligible to also make a $1,000 catch-up contribution for a total 2021 contribution of $7,000.
by HomeStretch
Sun Apr 18, 2021 4:42 pm
Forum: Investing - Theory, News & General
Topic: Non-Timely 401(k) Deposits by Employer
Replies: 4
Views: 494

Re: Non-Timely 401(k) Deposits by Employer

Have you discussed this with your HR/benefits group?
by HomeStretch
Sun Apr 18, 2021 6:56 am
Forum: Personal Consumer Issues
Topic: Indestructible ants?
Replies: 22
Views: 2044

Re: Indestructible ants?

If you have the tiny black ants that like sugar, they are really tenacious and numerous. Try to find their entry point into your kitchen and call a professional exterminator if DIY measures fail. I was only able to get rid of them by using a professional exterminator. The exterminator placed poison ...
by HomeStretch
Sat Apr 17, 2021 11:11 am
Forum: Personal Consumer Issues
Topic: general contractor vs specialist
Replies: 12
Views: 652

Re: general contractor vs specialist

By “general contractor” do you mean someone who will sub out and coordinate the work for a fee or do you mean a contractor/handyman that does all types of work and will give you a quote on this?
by HomeStretch
Sat Apr 17, 2021 10:59 am
Forum: Personal Consumer Issues
Topic: Better air conditioning for upstairs: minisplit or just upgrade main hvac to variable speed?
Replies: 14
Views: 1357

Re: Better air conditioning for upstairs: minisplit or just upgrade main hvac to variable speed?

Based on the contractor’s evaluation of your current system: 1) is your equipment properly sized for your space? 2) does your system have the appropriate number and sizes of ducts and returns for your upstairs and downstairs? 3) are all ducts and returns free of any blockage that impedes air flow? 4...
by HomeStretch
Sat Apr 17, 2021 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Should I bother my insurance agent every renewal?
Replies: 6
Views: 803

Re: Should I bother my insurance agent every renewal?

I would expect a good agent to review your renewal coverage/rates each year, ask if you have had any changes that require coverage changes, see if they can do better on either with same or another insurer, and communicate the results to you along with the renewal information. Has your agent done thi...
by HomeStretch
Sat Apr 17, 2021 9:33 am
Forum: Investing - Theory, News & General
Topic: Helping a nurse with her 401(K)- Roth or Traditional ?
Replies: 4
Views: 433

Re: Helping a nurse with her 401(K)- Roth or Traditional ?

Your thoughts about using Roth rather than Traditional contributions makes sense. This BH wiki page “Traditional v. Roth” may be helpful to your friend when making the decision: https://www.bogleheads.org/wiki/Traditional_versus_Roth If your friend started her job mid-year, her current Federal margi...
by HomeStretch
Fri Apr 16, 2021 7:26 pm
Forum: Personal Consumer Issues
Topic: Cost of adding a new 1/2 bathroom (ground floor)
Replies: 9
Views: 1089

Re: Cost of adding a new 1/2 bathroom (ground floor)

Would the concrete garage floor need to be trenched in order to run water/electricity to or waste from the proposed location? Is the garage heated (so bathroom plumbing doesn’t freeze)? Do you have an easy way to vent the bathroom? Those are some of the details that can add $ to the cost of adding a...
by HomeStretch
Fri Apr 16, 2021 5:33 pm
Forum: Personal Consumer Issues
Topic: Selling house in 2 yrs: what should I spruce up?
Replies: 14
Views: 1679

Re: Selling house in 2 yrs: what should I spruce up?

Invite a realtor to your house and ask for feedback on what, if anything, needs sprucing up. Consider: 1) painting, refinishing floors 2) cleaning windows (and the rest of the house) really well 3) fixing anything that’s broken 4) paint the front door 5) clean up the yard, trim bushes, reseed front ...
by HomeStretch
Fri Apr 16, 2021 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: What to do next for our savings after maxing out everything?
Replies: 44
Views: 3629

Re: What to do next for our savings after maxing out everything?

Here’s a link to the BH wiki about the mega backdoor:
https://www.bogleheads.org/wiki/After-tax_401(k)

I-Bonds can be attractive as they are state tax exempt and taxes are deferred until maturity.
by HomeStretch
Fri Apr 16, 2021 5:23 pm
Forum: Personal Consumer Issues
Topic: Replacement windows
Replies: 19
Views: 1345

Re: Replacement windows

Yes 40 years is a long time. So I am not adverse to paying for a good window. Just need to know which ones will/might last that long. Consider checking with your town to see if a permit and inspection are required and whether there are any code changes you need to comply with. We installed Jeld Wen...
by HomeStretch
Fri Apr 16, 2021 10:23 am
Forum: Personal Consumer Issues
Topic: Replacing French Doors (many glass panes) with regular doors?
Replies: 7
Views: 346

Re: Replacing French Doors (many glass panes) with regular doors?

Buy a solid wood door rather than a hollow core door for less sound transmission.
by HomeStretch
Fri Apr 16, 2021 10:13 am
Forum: Personal Consumer Issues
Topic: Replacement windows
Replies: 19
Views: 1345

Re: Replacement windows

If your current windows are original to the home, before replacing them consider getting feedback as to how window replacement (rather than refurbishing the original windows) will impact selling the house in the future. Some buyers of historical homes (if yours can be described that way) are purists...
by HomeStretch
Fri Apr 16, 2021 9:59 am
Forum: Personal Consumer Issues
Topic: can I get boglehead approval for a 70K truck?
Replies: 97
Views: 5409

Re: can I get boglehead approval for a 70K truck?

You really don’t need approval for large purchases as you can afford it so it’s a personal decision. Just be careful not to “reward” yourself every time a risky investment pays off. It will eat into your return which increases risk. When high risk investments pay off, consider banking your returns s...
by HomeStretch
Fri Apr 16, 2021 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Fixing a simple tax error from 4 years ago
Replies: 13
Views: 1168

Re: Fixing a simple tax error from 4 years ago

The IRS has a large backlog for receiving paper filings. Consider mailing the 2017 paper amended return with tracking so you have proof it was mailed before 5/17/21 (if that is the deadline for your 2017 amended return).
by HomeStretch
Fri Apr 16, 2021 9:46 am
Forum: Personal Consumer Issues
Topic: Do Basement Bathrooms w/Ejector Pumps work? (w/Sewers, not Septic)
Replies: 20
Views: 1286

Re: Do Basement Bathrooms w/Ejector Pumps work? (w/Sewers, not Septic)

+1

Ours works fine (installed 15 years ago, maintenance free). The ejector unit should have an alarm that goes off if there’s an issue. Our plumber that installed it told us to be careful how much paper gets flushed in the toilet as the ejector can clog.
by HomeStretch
Fri Apr 16, 2021 9:25 am
Forum: Personal Investments
Topic: Help Request for Accounts
Replies: 11
Views: 744

Re: Help Request for Accounts

Thanks for reposting your portfolio in the BH template format. It’s much easier to review your portfolio. What do you mean about wanting to “streamline things”? Fewer brokerages/accounts/holdings, improved tax efficiency, something else? A few questions: 1) What % of your partner’s 401k balance is R...
by HomeStretch
Fri Apr 16, 2021 7:08 am
Forum: Investing - Theory, News & General
Topic: I Bonds variable rate @ 3.54% in May
Replies: 126
Views: 14872

Re: I Bonds variable rate @ 3.54% in May

vanbogle59 wrote: Fri Apr 16, 2021 6:56 am this is probably a really dumb question...
Can I purchase these in my Vanguard IRA?
No. I-Bonds are purchased and held electronically in a Treasury Direct account or received in paper form via an IRS tax refund.
by HomeStretch
Thu Apr 15, 2021 9:16 pm
Forum: Personal Investments
Topic: How to handle my excess Roth contributions from 2019/2020?
Replies: 6
Views: 573

Re: How to handle my excess Roth contributions from 2019/2020?

...the brokerage allowed me to contribute $6,000... ...I realized I shouldn't have been able to make any Roth contributions. ... Based on your phrasing, it isn’t clear to me if you think the brokerage is responsible for determining whether or not you are eligible to make a direct Roth contribution....
by HomeStretch
Thu Apr 15, 2021 8:22 pm
Forum: Personal Investments
Topic: Better later than never?
Replies: 8
Views: 1543

Re: Better later than never?

[4]Tax Rate:15% Federal, 15% State [5]State of Residence:CT There currently is not a 15% Federal tax bracket. Are you in the 12% bracket? CT state income tax bracket range is 3% - 6.99%. [7]Desired Asset allocation: 60?stocks/40? bonds Desired International allocation: 20?% of stocks. Your asset al...
by HomeStretch
Thu Apr 15, 2021 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Do tax preparer add value for 7 figure W2 income
Replies: 32
Views: 1905

Re: Do tax preparer add value for 7 figure W2 income

With income from W-2/RSU/dividends, being in your accumulation years, and maxing out all the Roth and tax deferred space available to you, it doesn’t seem likely there is an unidentified opportunity to significantly reduce your current tax burden. Perhaps there is an opportunity to improve your port...
by HomeStretch
Thu Apr 15, 2021 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Template for financial life for spouse if I’m dead?
Replies: 36
Views: 2315

Re: Template for financial life for spouse if I’m dead?

To add to the feedback you have already received: 1. Set up an email account to which you both share access to receive all communications from financial institutions, banks, credit card companies, vendors, utilities, tax authorities, etc. 2. If you use Bill Pay for a joint account, the related infor...