Search found 1459 matches

by ERISA Stone
Sun Feb 04, 2018 3:42 pm
Forum: Investing - Theory, News & General
Topic: why are people saying there is bond issues. BND only down 2% YTD
Replies: 29
Views: 2937

Re: why are people saying there is bond issues. BND only down 2% YTD

b) I thought bonds and stocks are inverse correlated. I'm not sure where this thought came from. There are lots of different types of bonds, treasury bonds, corporate bonds, municipal bonds, and within those categories, there are lot of different bond grades (with the exception of treasuries) and b...
by ERISA Stone
Sun Feb 04, 2018 11:32 am
Forum: Personal Finance (Not Investing)
Topic: 529 for private elementary school?
Replies: 26
Views: 1681

Re: 529 for private elementary school?

All it will take is for one state’s 529 plan to allow K-12 tuition, and anybody interested in a state refusing to allow them will head for the exits. Is there a precedent for this comment based on some other tax benefit? If I were in this situation, I would say, "man I wish I lived in that state." ...
by ERISA Stone
Tue Jan 30, 2018 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Reporting i401k contributions on 1120S
Replies: 29
Views: 1236

Re: Reporting i401k contributions on 1120S

I'm not sure what you want me to say here. I don't want to be disrespectful but I don't think you are interpreting the words correctly. My "argument" makes complete sense to me. If you want to apply Occam's Razor, have at it, but we are on the opposite sides of what exactly the simplest explanation...
by ERISA Stone
Tue Jan 30, 2018 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Reporting i401k contributions on 1120S
Replies: 29
Views: 1236

Re: Reporting i401k contributions on 1120S

theplayer11 wrote:
Tue Jan 30, 2018 11:41 am

Your last sentence is all that really matters.
I agree.
by ERISA Stone
Tue Jan 30, 2018 11:09 am
Forum: Personal Consumer Issues
Topic: Buying This Week: IPhone X or IPhone 8 Plus
Replies: 35
Views: 3014

Re: Buying This Week: IPhone X or IPhone 8 Plus

I'd go with the X. Screen is pretty much the same on both but the actual phone is much larger with plus. As I've said previously on this thread, that might be true in theory (square inches), but in reality X is narrower and harder to read. The real estate is more valuable on the Plus The X is easie...
by ERISA Stone
Tue Jan 30, 2018 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Reporting i401k contributions on 1120S
Replies: 29
Views: 1236

Re: Reporting i401k contributions on 1120S

^But the instructions for line 17 does state "or any other deferred compensation plan." It does say "deferred" but your comment ignores the first half of that sentence. I'm finished with this conversation because I feel comfortable in my stance and I don't think I'm going to change anyone's mind wh...
by ERISA Stone
Tue Jan 30, 2018 2:15 am
Forum: Personal Finance (Not Investing)
Topic: Reporting i401k contributions on 1120S
Replies: 29
Views: 1236

Re: Reporting i401k contributions on 1120S

Your argument makes no sense, because the part I didn't bold says; "or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan." So you are going to tell me that SARSEP and SIMPLE IRA employee deferrals do not get reported on lines 7&8, but 401k deferrals do? Not to mention ...
by ERISA Stone
Tue Jan 30, 2018 1:34 am
Forum: Personal Finance (Not Investing)
Topic: Reporting i401k contributions on 1120S
Replies: 29
Views: 1236

Re: Reporting i401k contributions on 1120S

Deferrals should be included under compensation on line 7 or 8 of the Form 1120. Line 17 is reserved for employER contributions. I understand that technically a salary deferral is an employER contribution made on behalf of the employEE but I can't recall seeing an accountant take this to mean defer...
by ERISA Stone
Mon Jan 29, 2018 9:33 pm
Forum: Personal Consumer Issues
Topic: Buying This Week: IPhone X or IPhone 8 Plus
Replies: 35
Views: 3014

Re: Buying This Week: IPhone X or IPhone 8 Plus

lazydavid wrote:
Sat Jan 27, 2018 7:18 am
ERISA Stone wrote:
Fri Jan 26, 2018 12:18 am
I've had the 6s Plus and the 7s Plus, and now I have the X.
There's no such thing as a 7s. They released the 8 instead.
7 Plus then? I get the models mixed up.
by ERISA Stone
Mon Jan 29, 2018 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: Reporting i401k contributions on 1120S
Replies: 29
Views: 1236

Re: Reporting i401k contributions on 1120S

Deferrals should be included under compensation on line 7 or 8 of the Form 1120. Line 17 is reserved for employER contributions. I understand that technically a salary deferral is an employER contribution made on behalf of the employEE but I can't recall seeing an accountant take this to mean deferr...
by ERISA Stone
Fri Jan 26, 2018 9:14 pm
Forum: Personal Consumer Issues
Topic: To take or not to take delivery of Tesla 3
Replies: 460
Views: 37481

Re: To take or not to take delivery of Tesla 3

I went through a test drive at Tesla yesterday. The salesman said they're being told the tax credit will start to phase out in May. It could be a ploy to sell me a car, but if so, I would think he would've picked an earlier month. Those guys often don't know what they're talking about from what I'v...
by ERISA Stone
Fri Jan 26, 2018 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Payoff 401K loan early?
Replies: 35
Views: 53004

Re: Payoff 401K loan early?

I never thought this was a good idea, plus the amount is very limiting, $50k, not a big amount to arbitrage one way or the other. But if you need money and has to do it then you have to do it. If you are only going to borrow money because the 401k loan is available, it's a bad idea. If you are goin...
by ERISA Stone
Fri Jan 26, 2018 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Payoff 401K loan early?
Replies: 35
Views: 53004

Re: Payoff 401K loan early?

How has no one pointed out the obvious? Taking loans out of 401(k)'s are extremely detrimental because of double taxation. Because it's not really true. https://thefinancebuff.com/401k-loan-double-taxation-myth.html most plans specify that you can't contribute to your plan while the loan is outstan...
by ERISA Stone
Fri Jan 26, 2018 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Payoff 401K loan early?
Replies: 35
Views: 53004

Re: Payoff 401K loan early?

How has no one pointed out the obvious? Taking loans out of 401(k)'s are extremely detrimental because of double taxation. Because it's not really true. https://thefinancebuff.com/401k-loan-double-taxation-myth.html most plans specify that you can't contribute to your plan while the loan is outstan...
by ERISA Stone
Fri Jan 26, 2018 10:09 am
Forum: Personal Consumer Issues
Topic: Travel to Poland, Estonia, Lithuania: is it worth it?
Replies: 29
Views: 2423

Re: Travel to Poland, Estonia, Lithuania: is it worth it?

I lived in Poland for a while. At the time, it was a hidden gem. I don't think that's the case anymore. I was about 1.5 hours by train from Krakow and went there every time I had the chance. It's a great city. If you go to Poland, it should be a requirement to go to Auschwitz. It's an emotionally he...
by ERISA Stone
Fri Jan 26, 2018 12:18 am
Forum: Personal Consumer Issues
Topic: Buying This Week: IPhone X or IPhone 8 Plus
Replies: 35
Views: 3014

Re: Buying This Week: IPhone X or IPhone 8 Plus

I've had the 6s Plus and the 7s Plus, and now I have the X. I would be a little bummed if I had to go back to one of the plus sizes. I love the size of the X and it seems the screen seems to be crisper than the pluses. Also, I hardly ever use the camera but my wife is constantly getting asked if her...
by ERISA Stone
Wed Jan 24, 2018 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: HCE/mega backdoor Roth risk?
Replies: 14
Views: 962

Re: HCE/mega backdoor Roth risk?

I've mentioned this several times on the website but in practice, I have either seen 1 actual after-tax contribution or none. As time goes by, I really can't remember. I'm guessing I've been involved in reviewing testing on somewhere between 400-600 plans. The reality is after-tax contributions are...
by ERISA Stone
Wed Jan 24, 2018 10:14 am
Forum: Investing - Help with Personal Investments
Topic: HCE/mega backdoor Roth risk?
Replies: 14
Views: 962

Re: HCE/mega backdoor Roth risk?

One observation I'll throw out there is that this ACP testing issue for HCEs hasn't received nearly enough mention in the various articles, blogs, etc. about the virtues of the mega backdoor Roth. Kind of surprising, at least to me, since it often (but not always, of course) suggests a fairly high ...
by ERISA Stone
Tue Jan 23, 2018 9:40 pm
Forum: Personal Consumer Issues
Topic: To take or not to take delivery of Tesla 3
Replies: 460
Views: 37481

Re: To take or not to take delivery of Tesla 3

I went through a test drive at Tesla yesterday. The salesman said they're being told the tax credit will start to phase out in May. It could be a ploy to sell me a car, but if so, I would think he would've picked an earlier month.
by ERISA Stone
Mon Jan 22, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: After Tax 401K, 401a Limits
Replies: 15
Views: 1282

Re: After Tax 401K, 401a Limits

What does your inclusion of 401k and 401a in the title mean. Are the two plans both 401k plans or a 401k and a 401a plan? 401a pre-tax contributions are considered mandatory contributions and are not included in the employee deferral limit. There is a separate annual addition limit (2018 = $55K) fo...
by ERISA Stone
Thu Jan 18, 2018 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Take a 401k Loan?
Replies: 43
Views: 2170

Re: Take a 401k Loan?

There is also a freeze period (3-6 months) that prevent you contributing to your 401k after you take a loan or distribution. While a plan can suspend 401k contributions when a participant takes a loan, this is not the norm. I believe you're thinking about hardship distributions. in which there is a...
by ERISA Stone
Wed Jan 17, 2018 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Spousal Solo401K Deposit Deadline Rules Different?
Replies: 4
Views: 280

Re: Spousal Solo401K Deposit Deadline Rules Different?

For additional information, please see Spirit Rider's post in the link about a qualified joint venture, assuming your wife isn't a W-2 employee.

viewtopic.php?t=209448
by ERISA Stone
Wed Jan 17, 2018 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Spousal Solo401K Deposit Deadline Rules Different?
Replies: 4
Views: 280

Re: Spousal Solo401K Deposit Deadline Rules Different?

If you are a sole proprietor you can make 401k contributions up to the filing deadline. If your wife was an S-corp, for example, and received W-2 income, the 401k contributions would have to be made through payroll. Since there is no payroll for a sole proprietor, this isn't an issue. For this state...
by ERISA Stone
Tue Jan 16, 2018 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: How exactly is the $55,000 limit on a 401k counted?
Replies: 1
Views: 618

Re: How exactly is the $55,000 limit on a 401k counted?

Vesting isn’t considered for the limit. The contribution is considered for the year in which it is attributable. So even though the contribution is deposited in 2018, it’s considered for the 2017 annual additions limit.
by ERISA Stone
Mon Jan 15, 2018 7:47 pm
Forum: Investing - Theory, News & General
Topic: Best 401k Employer Match Structure
Replies: 115
Views: 9544

Re: Best 401k Employer Match Structure

I've worked for about a dozen companies in the past 32 years that I've worked as an electrical design engineer. I've made a bit of a study of 401k matching. Many of the startups I've worked for offer zero match. The highest match I've ever received was 8%. My current employer is a Fortune 500 compa...
by ERISA Stone
Mon Jan 15, 2018 6:43 pm
Forum: Investing - Theory, News & General
Topic: Best 401k Employer Match Structure
Replies: 115
Views: 9544

Re: Best 401k Employer Match Structure

My company matches 100% on 7% of compensation. 100% Vesting after 1 year. We also have a pension on 3-year vesting. The best I've heard is Saudi Aramco, which matches 9%. Best? Nope. Read the third post above this. TravelforFun I had one client who, IIRC, for anyone who made over $55k who was able ...
by ERISA Stone
Sun Jan 14, 2018 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Suggestions for Ideal 401k Fund Lineup
Replies: 11
Views: 723

Re: Suggestions for Ideal 401k Fund Lineup

total US total INTL total BND Vanguard or Fidelity Index TDF brokerage account for those that want to buy other fancy things anything past that is getting into the weeds. Our plan is with Employee Fiduciary. I selected the lineup above and added a REIT since I like to have approximately 5% of our p...
by ERISA Stone
Sun Jan 14, 2018 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Very Small Companies and HCE Tests
Replies: 3
Views: 367

Re: Very Small Companies and HCE Tests

I am exploring options for retirement savings, and discovered HCE (highly compensated employee) rules for 401(k) plans. In a company with very few employees who ALL own more than 5% of the company (as in every single employee is considered a HCE) does the IRS still expect HCEs to contribute not sig...
by ERISA Stone
Sun Jan 14, 2018 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Suggestions for Ideal 401k Fund Lineup
Replies: 11
Views: 723

Re: Suggestions for Ideal 401k Fund Lineup

total US total INTL total BND Vanguard or Fidelity Index TDF brokerage account for those that want to buy other fancy things anything past that is getting into the weeds. Our plan is with Employee Fiduciary. I selected the lineup above and added a REIT since I like to have approximately 5% of our p...
by ERISA Stone
Fri Jan 12, 2018 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: 401k loan vs selling taxable
Replies: 9
Views: 547

Re: 401k loan vs selling taxable

Piggybacking on bberris....Not only would an 11 month loan from your 401k cause you to miss out on whatever gains, but you will be taxed twice. When you repay the 401k loan, you will be repaying with after-tax money. Then many years later when you take a formal distribution, you will be taxed on th...
by ERISA Stone
Fri Jan 12, 2018 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: 401k loan vs selling taxable
Replies: 9
Views: 547

Re: 401k loan vs selling taxable

Allowing 401k loans to terminated participants? :shock: I'm glad you have the option but I'm having trouble fathoming a plan sponsor allowing this in a plan. What's the problem? The sponsor is not at risk. Yes, they are if they don't administer the loan properly. I don't know why an employer would ...
by ERISA Stone
Fri Jan 12, 2018 3:12 pm
Forum: Investing - Theory, News & General
Topic: Best 401k Employer Match Structure
Replies: 115
Views: 9544

Re: Best 401k Employer Match Structure

capsaicinguy wrote:
Fri Jan 12, 2018 1:16 pm

AKA instead of paying someone 50k/year, offer 40k salary + 10k 401k contribution.
This wouldn't work for the average person. Very few people are able to trade in their salary for a 25% retirement benefit.
by ERISA Stone
Thu Jan 11, 2018 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: 401k loan vs selling taxable
Replies: 9
Views: 547

Re: 401k loan vs selling taxable

Allowing 401k loans to terminated participants? :shock: I'm glad you have the option but I'm having trouble fathoming a plan sponsor allowing this in a plan.
by ERISA Stone
Wed Jan 10, 2018 7:24 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to an Employer-Sponsored 401k with a Personal Check?
Replies: 6
Views: 366

Re: Contribute to an Employer-Sponsored 401k with a Personal Check?

Thank you all for sharing your advice. Sounds like life will go on, but not with this paycheck going toward her 401k. I know it's frustrating but doesn't this just mean your wife will hit the maximum deferral one paycheck later? It shouldn't have any effect on a match. That's the reasons I omitted....
by ERISA Stone
Wed Jan 10, 2018 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to an Employer-Sponsored 401k with a Personal Check?
Replies: 6
Views: 366

Re: Contribute to an Employer-Sponsored 401k with a Personal Check?

You can't do this. The participant cannot have access to the funds to be contributed to the plan.

I know it's frustrating but doesn't this just mean your wife will hit the maximum deferral one paycheck later? It shouldn't have any effect on a match.
by ERISA Stone
Wed Jan 10, 2018 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: 401k withdrawl question for a friend...
Replies: 8
Views: 588

Re: 401k withdrawl question for a friend...

His plan would have to allow for hardship withdrawals if he is still employed. there are specific uses that qualify, see below. As you note, the money would be added to his income and he'd pay taxes. If he's over 59.5, the 10% extra penalty would not apply His company may also support 401(K) loans,...
by ERISA Stone
Tue Jan 09, 2018 1:08 am
Forum: Personal Consumer Issues
Topic: Car recommendations needed for growing family
Replies: 34
Views: 2111

Re: Car recommendations needed for growing family

Yes. Minivans are functional. SUVs are raised station wagons that get worse mileage, handle worse, cost way more, etc. Get a family hauler and then a commuter - maybe even a used Leaf? If you can get by with short range, they are dirt cheap and require little maintenance. Used Prius is a good bet f...
by ERISA Stone
Mon Jan 08, 2018 12:57 pm
Forum: Personal Consumer Issues
Topic: Are Password Managers Really Necessary?
Replies: 129
Views: 7173

Re: Are Password Managers Really Necessary?

In practice we know otherwise. Proof? Just google "Password Manager breach" and read about the breaches at OnePass, LastLogin, etc. Some of the most secure banks have been hacked along with one of the big-three credit report agencies - google "breach", "hacked", etc and you can find lots of stories...
by ERISA Stone
Mon Jan 08, 2018 12:33 pm
Forum: Personal Consumer Issues
Topic: Are Password Managers Really Necessary?
Replies: 129
Views: 7173

Re: Are Password Managers Really Necessary?

TravelGeek wrote:
Mon Jan 08, 2018 12:29 pm


It is not best practice to require (or change voluntarily) passwords periodically.

Is this true? I've always read you should change your passwords every six months or so, especially those related to financial institutions.
by ERISA Stone
Mon Jan 08, 2018 12:06 pm
Forum: Personal Consumer Issues
Topic: New York City Restaurant Week Suggestions
Replies: 15
Views: 920

Re: New York City Restaurant Week Suggestions

For pastries, I recommend Veniero's. It's near where I stay and I usually get something from there every day I'm in NYC. And I have the weight progression spreadsheet to prove it. :D
by ERISA Stone
Mon Jan 08, 2018 12:03 pm
Forum: Personal Consumer Issues
Topic: Are Password Managers Really Necessary?
Replies: 129
Views: 7173

Re: Are Password Managers Really Necessary?

DaftInvestor wrote:
Mon Jan 08, 2018 11:54 am

In practice we know otherwise.
Proof?
by ERISA Stone
Mon Jan 08, 2018 11:44 am
Forum: Personal Consumer Issues
Topic: Are Password Managers Really Necessary?
Replies: 129
Views: 7173

Re: Are Password Managers Really Necessary?

Yes. Absolutely. I have used password managers for over ten years. Absolutely cannot imagine not using one. How do you keep track of dozens (or in my case, > hundred) of credentials (username, password, answers to secret questions, account numbers) in a secure way? I'll answer your question with a ...
by ERISA Stone
Mon Jan 08, 2018 11:07 am
Forum: Personal Consumer Issues
Topic: Teeth Whitening
Replies: 23
Views: 2696

Re: Teeth Whitening

ncbill wrote:
Mon Jan 08, 2018 10:54 am
mouses wrote:
Mon Jan 08, 2018 9:06 am
My dentist advises against tooth whitening because he says it can damage the nerves.
+1000

I will never do tooth whitening given the "issues" (usually sensitivity, sometimes outright damage)
does this include hydrogen peroxide as well?
by ERISA Stone
Mon Jan 08, 2018 11:05 am
Forum: Personal Consumer Issues
Topic: Are Password Managers Really Necessary?
Replies: 129
Views: 7173

Re: Are Password Managers Really Necessary?

I have 82 credentials currently stored in my password manager between personal and business. It was getting to be quite a chore to keep up with all of those passwords, assuming one takes the time to use different passwords and doesn't use the same one for each site. I think what makes this all the ...
by ERISA Stone
Mon Jan 08, 2018 11:00 am
Forum: Forum Issues and Administration
Topic: Help me understand question-less financial status (e.g. "2 comma club") threads.
Replies: 175
Views: 8985

Re: Help me understand question-less financial status (e.g. "2 comma club") threads.

I already think the "actionable" component of the website is arbitrary and frankly infuriating. I can't tell you how many times I've been chugging along a thread that is relevant to me only to have moderators cut it off. Then I see about 20% of the titles in the thread list and know that they can't ...
by ERISA Stone
Mon Jan 08, 2018 10:28 am
Forum: Personal Consumer Issues
Topic: Are Password Managers Really Necessary?
Replies: 129
Views: 7173

Re: Are Password Managers Really Necessary?

I have 82 credentials currently stored in my password manager between personal and business. It was getting to be quite a chore to keep up with all of those passwords, assuming one takes the time to use different passwords and doesn't use the same one for each site. Also, my password manager LastPas...
by ERISA Stone
Sat Jan 06, 2018 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: 401k "Fears"
Replies: 9
Views: 1276

Re: 401k "Fears"

1. Assume a job change for whatever reason. Ideally, I'd like to roll my 401k over into a simple 3-fund portfolio or a vanguard TDF. However, imagine a case where there's a bear market PLUS simultaneous job loss. I'm young and I've never experienced a roll over before but it seems as though it woul...
by ERISA Stone
Fri Jan 05, 2018 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: End of December 401K Contribution hitting 2018?
Replies: 12
Views: 514

Re: End of December 401K Contribution hitting 2018?

I can tell you now, my 2017 contributions do not include the 12/29 401K contribution.... Where? On your W-2 or Vanguard's site? If it's Vanguard's site it doesn't matter. Look at the W-2. Understood -- it was on Vanguard's site. However, I looked at my pay stubs for the employers for year end: Empl...
by ERISA Stone
Fri Jan 05, 2018 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: anyone considering cashing in some 401k money at the new lower tax rate?
Replies: 9
Views: 1208

Re: anyone considering cashing in some 401k money at the new lower tax rate?

It feels like you're sort of asking two questions. 1. Should you take $$ out to pay a lower tax rate now than possibly a higher tax rate 10 years down the road? I wouldn't but that's because I prefer to push out any tax liability as long as possible. A lot can happen in 10 years. 2. Should you take ...
by ERISA Stone
Fri Jan 05, 2018 12:25 pm
Forum: Investing - Help with Personal Investments
Topic: End of December 401K Contribution hitting 2018?
Replies: 12
Views: 514

Re: End of December 401K Contribution hitting 2018?

stroopwafel wrote:
Fri Jan 05, 2018 12:24 pm

I can tell you now, my 2017 contributions do not include the 12/29 401K contribution....
Where? On your W-2 or Vanguard's site? If it's Vanguard's site it doesn't matter. Look at the W-2.