Search found 1616 matches

by ERISA Stone
Thu Nov 07, 2019 11:00 am
Forum: Personal Consumer Issues
Topic: Maximize 1 Day at Disney
Replies: 48
Views: 2646

Re: Maximize 1 Day at Disney

I have a friend who goes on Thursdays from 7pm - midnight. He says they're able to do everything they want to do at least twice. If that's something you might be interested in doing...
by ERISA Stone
Thu Oct 31, 2019 3:20 pm
Forum: Personal Investments
Topic: Question about my 401k - what do these categories mean?
Replies: 5
Views: 446

Re: Question about my 401k - what do these categories mean?

Employee Deferral $172,321.42 100% $172,321.42 - pre-tax contribution that comes directly from your paycheck Employer Match $19,668.88 100% $19,668.88 - matching contribution based on your employee deferral and Roth deferral Qualified Non-elective Def $390.36 100% $390.36 - this is typically a contr...
by ERISA Stone
Sat Oct 19, 2019 8:25 am
Forum: Personal Investments
Topic: Does ADP/ACP testing apply to a Safe Harbor 401k Plan for HCE?
Replies: 11
Views: 622

Re: Does ADP/ACP testing apply to a Safe Harbor 401k Plan for HCE?

I’ve been struggling with this topic for quite some time, so I’m hoping someone here with knowledge of 401k plans, HCE, and discrimination testing can help clarify things for me. My employer has a Safe Harbor 401k plan, to which I max out my annual elective deferral on a pre-tax basis. They also pr...
by ERISA Stone
Fri Oct 18, 2019 3:19 pm
Forum: Personal Investments
Topic: Does ADP/ACP testing apply to a Safe Harbor 401k Plan for HCE?
Replies: 11
Views: 622

Re: Does ADP/ACP testing apply to a Safe Harbor 401k Plan for HCE?

@ERISA Stone, it used to be common years ago. Large employer profit sharing plans would allow employees receiving bonuses to choose to receive them as cash or employer contributions. This pre-dates and has nothing to do with the New Comparability method of profit sharing. They were typically couple...
by ERISA Stone
Fri Oct 18, 2019 10:56 am
Forum: Personal Investments
Topic: Does ADP/ACP testing apply to a Safe Harbor 401k Plan for HCE?
Replies: 11
Views: 622

Re: Does ADP/ACP testing apply to a Safe Harbor 401k Plan for HCE?

The safe harbor exemption to ADP/ACP testing applies to employee deferrals and non-discretionary employer contributions respectively: ADP testing is not required even if the HCE average deferral percentage (ADP) exceeds the NHCE ADP. ACP testing is not required even if the above is true and the emp...
by ERISA Stone
Fri Oct 18, 2019 10:52 am
Forum: Personal Investments
Topic: Does ADP/ACP testing apply to a Safe Harbor 401k Plan for HCE?
Replies: 11
Views: 622

Re: Does ADP/ACP testing apply to a Safe Harbor 401k Plan for HCE?

The safe harbor exemption to ADP/ACP testing applies to employee deferrals and non-discretionary employer contributions respectively: ADP testing is not required even if the HCE average deferral percentage (ADP) exceeds the NHCE ADP. ACP testing is not required even if the above is true and the emp...
by ERISA Stone
Fri Oct 18, 2019 10:42 am
Forum: Personal Investments
Topic: Does ADP/ACP testing apply to a Safe Harbor 401k Plan for HCE?
Replies: 11
Views: 622

Re: Does ADP/ACP testing apply to a Safe Harbor 401k Plan for HCE?

I haven't seen a plan design specifically like yours where an individual employee can direct how much bonus they want as profit sharing but I don't see anything wrong with that plan design, assuming the plan has a new comparability (cross-testing) profit sharing formula. Having said that, nondiscrim...
by ERISA Stone
Fri Oct 18, 2019 10:35 am
Forum: Personal Investments
Topic: Does ADP/ACP testing apply to a Safe Harbor 401k Plan for HCE?
Replies: 11
Views: 622

Re: Does ADP/ACP testing apply to a Safe Harbor 401k Plan for HCE?

The safe harbor exemption to ADP/ACP testing applies to employee deferrals and non-discretionary employer contributions respectively: ADP testing is not required even if the HCE average deferral percentage (ADP) exceeds the NHCE ADP. ACP testing is not required even if the above is true and the emp...
by ERISA Stone
Thu Oct 17, 2019 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Personal vs 401k loan
Replies: 20
Views: 949

Re: Personal vs 401k loan

If you had to choose between holding a personal loan at 6% or 401k loan at the same rate for about a year, which would you choose? Seems like the 401k loan would be better since tlou are at least paying interest to yourself. Any thoughts? I've often seen people get tied up on 401k loans, with ideas...
by ERISA Stone
Thu Oct 17, 2019 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Should I take the job in OKC or Orlando?
Replies: 98
Views: 5556

Re: Should I take the job in OKC or Orlando?

I could live in either city pretty easily. Having said that, if OKC is giving me an extra $100k, I'll learn to love it more than Orlando (although being that close to Tampa is nice). On top of that you have the partnership issue. Just based on those points alone, this would be an easy decision for m...
by ERISA Stone
Wed Oct 16, 2019 12:09 pm
Forum: Personal Consumer Issues
Topic: Should I bail on AT&T and Directv?
Replies: 37
Views: 3943

Re: Should I bail on AT&T and Directv?

I went to Youtube TV a year or so ago, and it has solved my concern about not being able to watch live sports. There have been a handful of times I couldn't watch something I wanted to see, but it wasn't an important game so I knew it was doubtful Youtube TV would have it. I haven't run the numbers ...
by ERISA Stone
Fri Oct 11, 2019 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Savings Rate drops to 1.8%
Replies: 42
Views: 5876

Re: Ally Savings Rate drops to 1.8%

abuss368 wrote:
Fri Oct 11, 2019 3:55 pm
greg24 wrote:
Fri Oct 11, 2019 3:54 pm
Vanguard PMM 1.97% 7-day yield
That is not a bad yield at all.
what's the ticker symbol for this one?
by ERISA Stone
Fri Oct 11, 2019 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Savings Rate drops to 1.8%
Replies: 42
Views: 5876

Re: Ally Savings Rate drops to 1.8%

Trader Joe wrote:
Wed Oct 09, 2019 5:24 pm
Rob5TCP wrote:
Wed Oct 09, 2019 1:29 pm
Not exactly news, but Ally again is dropping the savings rate to 1.8% effective tomorrow.
Is there a reason why you use Ally for your savings?
So......where else should it go?
by ERISA Stone
Fri Oct 11, 2019 1:19 pm
Forum: Personal Investments
Topic: 401 K match
Replies: 25
Views: 2206

Re: 401 K match

Thanks for the replies. May be I didn't use correct terms but 401 K Employer match does come from HCE salary. They reduce the match amount from gross salary next year and put it as a match next year. I confirmed it. As per CPA these plans are very rare but not unheard of. I can max out 401 K but ma...
by ERISA Stone
Wed Oct 09, 2019 9:12 am
Forum: Personal Investments
Topic: 401k issue
Replies: 4
Views: 423

Re: 401k issue

It is not part of a company match. The $$ was held back for months, and then company sent lumpsum check. On my provider said it says my YTD contribution, and my paycheck has a lower YTD contribution. We do not have a CFO. It would either be owner, or HR. Technically, if your 401k contribution wasn'...
by ERISA Stone
Tue Oct 08, 2019 3:41 pm
Forum: Personal Investments
Topic: Highly Compensated Employee & 401K limits
Replies: 41
Views: 4312

Re: Highly Compensated Employee & 401K limits

Are non safe harbor plans subject to HCE and ADP testing if they don’t match at all....? Few options suggested including increasing the match rate, changing the plan type, but I think you can get around this by having no match whatsoever... Absolutely. Anti-discrimination rules are to prevent only ...
by ERISA Stone
Tue Oct 08, 2019 2:00 pm
Forum: Personal Investments
Topic: 401 K match
Replies: 25
Views: 2206

Re: 401 K match

If I understand the details correctly, I think I have seen an arrangement on this board before. In that scenario, I believe the match was safe harbor, so at least the employee got 100% of the contribution if he terminated. My guess is this type of arrangement has never been questioned in courts. Als...
by ERISA Stone
Tue Oct 08, 2019 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Withdrawing 401k money penalty free prior to 59 1/2
Replies: 18
Views: 2254

Re: Withdrawing 401k money penalty free prior to 59 1/2

One method is the “rule of 55” that won’t apply to you if you aren’t leaving your employer. If separated from one’s employer at age 55+, 401k distributions can be made without penalty from that employer’s 401k plan. Not all plans allow partial distributions. So one would have to take a full distrib...
by ERISA Stone
Tue Oct 01, 2019 11:07 am
Forum: Personal Investments
Topic: Highly Compensated Employee & 401K limits
Replies: 41
Views: 4312

Re: Highly Compensated Employee & 401K limits

Reading the OP, the accounting department “asked” the OP to lower his contributions. This is not the same as “must.” Because there is no way of knowing by how much the discrimination test will be failed by a priori (maybe accounting/HR knows, but not the OP), I would be decline the request, continu...
by ERISA Stone
Tue Oct 01, 2019 9:17 am
Forum: Personal Investments
Topic: Highly Compensated Employee & 401K limits
Replies: 41
Views: 4312

Re: Highly Compensated Employee & 401K limits

fascinating, I never heard of this before, but it seems a real thing: https://smartasset.com/retirement/401k-highly-compensated-employee Lets hope my administration never figures that out.... I guess its an indirect attempt to make sure employers educate their employees to contribute and put some f...
by ERISA Stone
Tue Sep 24, 2019 8:52 am
Forum: Personal Consumer Issues
Topic: Tesla Model 3 with young kids.
Replies: 30
Views: 4087

Re: Tesla Model 3 with young kids.

I just drove 8 hours with our family of 4 (kids are 4 and 7) in our 3. It works fine. We also have an X but driving the 3 allows us to forego 2 charging stations. This works fine as long as we don't have something large to bring in addition to our suitcases. There are some inconveniences. We had to ...
by ERISA Stone
Wed Sep 18, 2019 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: Searching for affordable 401K provider? Guideline? Any comments or suggestions?
Replies: 13
Views: 843

Re: Searching for affordable 401K provider? Guideline? Any comments or suggestions?

TIAX wrote:
Wed Sep 18, 2019 4:44 pm
ERISA Stone wrote:
Wed Sep 18, 2019 3:11 pm
I noticed Guideline now offers new comparability plans so maybe they are relaxing their restrictions on plan options. Good news, IMO.

https://www.guideline.com/pricing
Is that cross-testing?
yes.
by ERISA Stone
Wed Sep 18, 2019 5:20 pm
Forum: Personal Consumer Issues
Topic: Used Tesla S or new Tesla 3?
Replies: 40
Views: 3273

Re: Used Tesla S or new Tesla 3?

A piece of advice: IMO Full Self Driving is not worth it. Base Autopilot is quite good and includes 90% of the useful features (adaptive cruise control and lane keeping). FSD adds the following features: Auto lane change, in which the car changes lanes for you when you signal while on Autopilot. Ac...
by ERISA Stone
Wed Sep 18, 2019 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Searching for affordable 401K provider? Guideline? Any comments or suggestions?
Replies: 13
Views: 843

Re: Searching for affordable 401K provider? Guideline? Any comments or suggestions?

I noticed Guideline now offers new comparability plans so maybe they are relaxing their restrictions on plan options. Good news, IMO.

https://www.guideline.com/pricing
by ERISA Stone
Thu Sep 12, 2019 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Help Me Understand 401k Match
Replies: 16
Views: 1462

Re: Help Me Understand 401k Match

I think it's worded poorly. I would think they match 25% of your contribution, but you must contribute at last 4% to trigger any match. They will contribute up to a max of 4%. I understand it as: You contribute 3.5% Company contributes: 0 You contribute 4% Company contributes: 1% You contribute 16%...
by ERISA Stone
Sun Sep 08, 2019 7:42 pm
Forum: Investing - Theory, News & General
Topic: The smartest business owners don’t open a 529 plan — they hire their kids instead [Marketwatch article]
Replies: 10
Views: 1933

Re: The smartest business owners don’t open a 529 plan — they hire their kids instead [Marketwatch article]

This popped up in WCI on facebook. I recall a few people mentioned this was questioned by the IRS. We all have different risk levels but I'm not interested in anything this small that puts me on their radar.
by ERISA Stone
Fri Sep 06, 2019 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: Help! ERISA Mess With W-2 Contractor 401(k)
Replies: 10
Views: 751

Re: Help! ERISA Mess With W-2 Contractor 401(k)

I have never heard of an independent contractor W-2 worker. I'm not an accountant so I'll caveat in case there's some weird exception I'm not aware of, but employees are W-2, and independent contractors are 1099.
by ERISA Stone
Fri Sep 06, 2019 9:51 am
Forum: Personal Investments
Topic: Making Case to Employer for Mega Backdoor Roth
Replies: 20
Views: 1154

Re: Making Case to Employer for Mega Backdoor Roth

Is the current 401k a safe harbor plan? Who manages the plan? What are the fees and the investment options. What is the size of the company? It's my understanding that it is safe harbor (in that employer matches are vested immediately). Fidelity manages the plan - and its my understanding that they...
by ERISA Stone
Thu Sep 05, 2019 12:47 pm
Forum: Personal Investments
Topic: Making Case to Employer for Mega Backdoor Roth
Replies: 20
Views: 1154

Re: Making Case to Employer for Mega Backdoor Roth

From what I have seen employers tend to adopt a plan that allows you to contribute an additional 10% as after-tax and then immediately convert it to a ROTH 401K. I believe the 10% figure easily passes most regulatory scrutiny, hence the reason it is capped at an additional 10%. One of the issues yo...
by ERISA Stone
Thu Sep 05, 2019 10:37 am
Forum: Personal Finance (Not Investing)
Topic: old ESOP account
Replies: 4
Views: 341

Re: old ESOP account

I don't have any advice on how to find the old account. What probably happened is the company submitted a Form SSA with your sister's name showing she was terminated with an account balance. IF they ever paid it out, they neglected to include her on a subsequent Form SSA indicating the account had b...
by ERISA Stone
Thu Sep 05, 2019 9:43 am
Forum: Personal Investments
Topic: Making Case to Employer for Mega Backdoor Roth
Replies: 20
Views: 1154

Re: Making Case to Employer for Mega Backdoor Roth

Is the current 401k a safe harbor plan? Who manages the plan? What are the fees and the investment options. What is the size of the company? It's my understanding that it is safe harbor (in that employer matches are vested immediately). Fidelity manages the plan - and its my understanding that they...
by ERISA Stone
Thu Sep 05, 2019 9:07 am
Forum: Personal Consumer Issues
Topic: Recommendations for Polish Beer
Replies: 24
Views: 1673

Re: Recommendations for Polish Beer

Came here to flex my knowledge of Polish beer and you all beat me to it :-).

IMO, nothing on the planet beats Lech. Tyskie is great also. Okocim would be my 3rd pick.

When I lived there, I only drank Zywiec if it were the only option. It would still beat any American option I consider.
by ERISA Stone
Thu Sep 05, 2019 9:04 am
Forum: Personal Investments
Topic: Making Case to Employer for Mega Backdoor Roth
Replies: 20
Views: 1154

Re: Making Case to Employer for Mega Backdoor Roth

This is more than simply allowing an additional benefit in the 401k plan. There are potential issues with nondiscrimination testing as after-tax (nonRoth) contributions are tested with matching contributions. I don't know the size of your plan but as a TPA, the plan design discussion would start (an...
by ERISA Stone
Wed Sep 04, 2019 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: HELP! New Job Offer Freezes 401k Contributions for 1 year, Alternatives?
Replies: 20
Views: 1603

Re: HELP! New Job Offer Freezes 401k Contributions for 1 year, Alternatives?

Read the plan documents. If you have been contributing previously (at a job up to starting at this employer) to a 401k/403b, does the 1 yr wait period still apply? A lot of employers will allow such people to contribute. Is this something new? I have never seen this in a 401k other than when a comp...
by ERISA Stone
Wed Sep 04, 2019 11:24 am
Forum: Personal Finance (Not Investing)
Topic: HELP! New Job Offer Freezes 401k Contributions for 1 year, Alternatives?
Replies: 20
Views: 1603

Re: HELP! New Job Offer Freezes 401k Contributions for 1 year, Alternatives?

Read the plan documents. If you have been contributing previously (at a job up to starting at this employer) to a 401k/403b, does the 1 yr wait period still apply? A lot of employers will allow such people to contribute. Is this something new? I have never seen this in a 401k other than when a comp...
by ERISA Stone
Thu Aug 29, 2019 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Already maxed 401k contribution - anyway to still get company match?
Replies: 7
Views: 587

Re: Already maxed 401k contribution - anyway to still get company match?

You need to look at the plan documents to see what it says. In addition to matching per check or an end-of-year true-up, some companies (like my former employer) continue the match on every check as they looked at YTD numbers (each check they matched by taking based on the maximum they could match ...
by ERISA Stone
Tue Aug 27, 2019 9:40 am
Forum: Personal Consumer Issues
Topic: iPad air- purchase from Apple store of Costco?
Replies: 15
Views: 2333

Re: iPad air- purchase from Apple store of Costco?

I buy iPads often for my business. Apple Store has never had the cheapest price. Also, look at B&H Photo. You can find some good deals there and now they have a credit card that gives you a discount (rebate?) for the taxes you pay on the purchase.
by ERISA Stone
Sat Aug 24, 2019 7:15 am
Forum: Personal Finance (Not Investing)
Topic: Can Employer Legally charge 401k Plan fees without Disclosing them?
Replies: 11
Views: 961

Re: Can Employer Legally charge 401k Plan fees without Disclosing them?

You also are not required to work at that employer. Perhaps you need to find a better employer. A lot of employers charge some administrative fees (they are required to be up-front about it). However, a fee based on the percentage invested is quite problematic. The burden of administration of your ...
by ERISA Stone
Fri Aug 23, 2019 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Can Employer Legally charge 401k Plan fees without Disclosing them?
Replies: 11
Views: 961

Re: Can Employer Legally charge 401k Plan fees without Disclosing them?

lostinjersey wrote:
Fri Aug 23, 2019 1:01 pm
The SPD doesn’t necessarily discuss fees, nor is it required to.

The annual fee disclosure does, and is required to.
maybe not, but it could help.
by ERISA Stone
Fri Aug 23, 2019 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Can Employer Legally charge 401k Plan fees without Disclosing them?
Replies: 11
Views: 961

Re: Can Employer Legally charge 401k Plan fees without Disclosing them?

What does the SPD (Summary Plan Description) say?

While your employer rep is incorrect if it does say employER is responsible for ALL fees, seems like a molehill to me to risk getting on the wrong list at work.
by ERISA Stone
Thu Aug 22, 2019 11:17 am
Forum: Investing - Theory, News & General
Topic: After-tax 401(k) Matching Statistics/Company Listings/Case Study/etc.
Replies: 25
Views: 943

Re: After-tax 401(k) Matching Statistics/Company Listings/Case Study/etc.

jsaver wrote:
Thu Aug 22, 2019 11:15 am
I wonder any plans have a cap at all for non-highly compensated employees.
It has to do with the nondiscrimination rules:

https://www.irs.gov/retirement-plans/40 ... tion-tests
Capping NHCEs HURTS nondiscrimination testing.
by ERISA Stone
Thu Aug 22, 2019 11:16 am
Forum: Investing - Theory, News & General
Topic: After-tax 401(k) Matching Statistics/Company Listings/Case Study/etc.
Replies: 25
Views: 943

Re: After-tax 401(k) Matching Statistics/Company Listings/Case Study/etc.

My employer matches 6% per paycheck and allows contributions to be allocated between before-tax, Roth, and after-tax. There's a cap of 16% for highly compensated employees, otherwise it's 50%. There's an automatic spillover option to redirect pre-tax to after-tax which can be set to either 6% or yo...
by ERISA Stone
Thu Aug 22, 2019 10:13 am
Forum: Personal Investments
Topic: 401k Rollover disaster
Replies: 31
Views: 2247

Re: 401k Rollover disaster

Your mistake was going with an adviser, their mistake was, apparently, disobeying your choices which could even be illegal if you have documentation of such activity. They have taken advantage of your lack of preparation and research and have put you in an excessive number of complex and expensive ...
by ERISA Stone
Thu Aug 22, 2019 10:10 am
Forum: Personal Investments
Topic: 401k Rollover disaster
Replies: 31
Views: 2247

Re: 401k Rollover disaster

Maybe I'm overlooking it but I have yet to see someone tell OP to go back and look at his distribution paperwork. I have never been involved in a case where an FA has the power to submit the paperwork on a participant's behalf. It really doesn't matter what OP relayed to the FA if his paperwork doe...
by ERISA Stone
Thu Aug 22, 2019 10:08 am
Forum: Investing - Theory, News & General
Topic: After-tax 401(k) Matching Statistics/Company Listings/Case Study/etc.
Replies: 25
Views: 943

Re: After-tax 401(k) Matching Statistics/Company Listings/etc.

Unfortunately, when my employer added the after-tax 401k provision, they removed the true-up provision in our 401k plan. :( There's probably a reason for that. Maybe ERISA Stone can tell us. Just a guess, but they probably didn't eliminate it. I bet they decided to make an administrative decision n...
by ERISA Stone
Thu Aug 22, 2019 9:12 am
Forum: Investing - Theory, News & General
Topic: After-tax 401(k) Matching Statistics/Company Listings/Case Study/etc.
Replies: 25
Views: 943

Re: After-tax 401(k) Matching Statistics/Company Listings/etc.

A second and similar scenario is that the employee contributes x% per paycheck but ensures that it stretches out so that each paycheck has at least the minimum matching but also maximizing the contribution so that $19k/$24k is reached by the last paycheck. The employee also contributes to after-tax...
by ERISA Stone
Thu Aug 22, 2019 8:59 am
Forum: Personal Investments
Topic: 401k Rollover disaster
Replies: 31
Views: 2247

Re: 401k Rollover disaster

Your mistake was going with an adviser, their mistake was, apparently, disobeying your choices which could even be illegal if you have documentation of such activity. They have taken advantage of your lack of preparation and research and have put you in an excessive number of complex and expensive ...
by ERISA Stone
Wed Aug 21, 2019 11:14 am
Forum: Personal Investments
Topic: Two different 401k plans with two different timelines (fiscal year vs. calendar year) -- is this an issue?
Replies: 7
Views: 356

Re: Two different 401k plans with two different timelines (fiscal year vs. calendar year) -- is this an issue?

retiredjg wrote:
Wed Aug 21, 2019 9:43 am
What do you mean by "the others"?
415 limit (maximum annual additions)
404 limit ( maximum deductible contribution - employER level)
by ERISA Stone
Wed Aug 21, 2019 9:19 am
Forum: Personal Investments
Topic: Two different 401k plans with two different timelines (fiscal year vs. calendar year) -- is this an issue?
Replies: 7
Views: 356

Re: Two different 401k plans with two different timelines (fiscal year vs. calendar year) -- is this an issue?

1. Group 401k on fiscal year (July to July) -- max out to 56k (7k employee contribution, rest is employer profit sharing contribution). This does not seem right to me. I wonder if there is a misunderstanding. The federal limits for contributions are definitely calendar year no matter what your comp...
by ERISA Stone
Tue Aug 20, 2019 3:50 pm
Forum: Personal Investments
Topic: Two different 401k plans with two different timelines (fiscal year vs. calendar year) -- is this an issue?
Replies: 7
Views: 356

Re: Two different 401k plans with two different timelines (fiscal year vs. calendar year) -- is this an issue?

The 19k limit is a calendar year limit and is for 401k contributions (pre-tax and Roth). Anything over $19k for 2019 is an excess contribution. Assuming the plans are unrelated, any employer contributions to the respective plans should be fine as long as they meet the individual plan limits.