Search found 8116 matches

by Spirit Rider
Sat Jul 21, 2018 8:21 pm
Forum: Investing - Theory, News & General
Topic: Fidelity cash position
Replies: 51
Views: 5622

Re: Fidelity cash position

It is 10k in my se401k. You did not click on the note 4 "Initial Group Retirement Investment 4 " listing $10K. "4. Initial minimum investments into group retirement accounts such as Fidelity Simplified Employee Pension-IRA, Keogh, Self-Employed 401(k), and Non-Fidelity Prototype Retirement accounts...
by Spirit Rider
Sat Jul 21, 2018 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Appears that Medicare Guaranteed Issue Plan F will be replaced with G
Replies: 35
Views: 2307

Re: Appears that Medicare Guaranteed Issue Plan F will be replaced with G

I take it to mean the final draft(s) of the changes were approved, finalized, and the information contained in this "Memo" now carries the weight of the law. Otherwise this would not have been transmitted officially to all state governments in February. (Unless, of course, something comes out later...
by Spirit Rider
Sat Jul 21, 2018 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: $1200 AC fix on a 2007 Civic
Replies: 22
Views: 1420

Re: $1200 AC fix on a 2007 Civic

I'll be the contrarian here. I had a Civic with approximately 170,000 miles and paid for an expensive ac repair. Within a couple months the clutch went out and then the new one did not work well and I needed a new transmission. After sinking 3,000 to 4,000 into the car I gave up got rid of it and p...
by Spirit Rider
Sat Jul 21, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Excess in 529 Plan
Replies: 8
Views: 947

Re: Excess in 529 Plan

What are the generation skipping tax implications for transferring beneficiary to a grand-child? The idea of multiple decades compounding is appealing but is there clarification from IRS about limits to this? And is there a FAFSA implication of a parent-owned vs. grandparent-owned 529? Just thinkin...
by Spirit Rider
Sat Jul 21, 2018 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: $1200 AC fix on a 2007 Civic
Replies: 22
Views: 1420

Re: $1200 AC fix on a 2007 Civic

As pointed out by livesoft: and many threads on this issue.

The cost of the repair to the value of the vehicle is not the correct metric. It is the cost of the repair to the cost to replace the vehicle. You can even justify a repair for more than the value of a vehicle in certain circumstances.
by Spirit Rider
Sat Jul 21, 2018 3:58 pm
Forum: Investing - Theory, News & General
Topic: Fidelity cash position
Replies: 51
Views: 5622

Re: Fidelity cash position

It is 10k in my se401k. You did not click on the note 4 "Initial Group Retirement Investment 4 " listing $10K. "4. Initial minimum investments into group retirement accounts such as Fidelity Simplified Employee Pension-IRA, Keogh, Self-Employed 401(k), and Non-Fidelity Prototype Retirement accounts...
by Spirit Rider
Sat Jul 21, 2018 10:54 am
Forum: Investing - Theory, News & General
Topic: Fidelity cash position
Replies: 51
Views: 5622

Re: Fidelity cash position

At Fidelity we're holidng a position in FZDXX Fidelity MMKT Premium Class. While it has a high minimum purchase ($100,000.00) it has a current 7-day yield as of 7/3/18 of 1.98%. And, although the minimum initial purchase is $100K, you only need to keep $10K in the fund to keep it open. Furthermore,...
by Spirit Rider
Sat Jul 21, 2018 10:31 am
Forum: Personal Finance (Not Investing)
Topic: IRA Distribution or HELOC for Home Improvement
Replies: 10
Views: 364

Re: IRA Distribution or HELOC for Home Improvement

If I take half of the money from my IRA this year and half next year I will pay an additional $10K each year in taxes. Over 10 years the amount paid in taxes on the extra needed to make the loan payments would be about $20K, that looks to be a wash. There will be no impact on my SS when I start tak...
by Spirit Rider
Sat Jul 21, 2018 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Employer 401k match after changing jobs with already maxed 401k
Replies: 2
Views: 284

Re: Employer 401k match after changing jobs with already maxed 401k

It is a valid strategy if your previous employer will remove excess employee elective contributions and earnings from their plan. IRS regulations allow but do not require an employer to remove excess employee elective contributions and earnings from their plan. Most but not all employers will only r...
by Spirit Rider
Fri Jul 20, 2018 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Will my 529 contribution exceed the annual gift tax exemption?
Replies: 9
Views: 611

Re: Will my 529 contribution exceed the annual gift tax exemption?

There is no gift tax reporting required to contribute any amount to a 529 with yourself as a beneficiary. There was no gift from you and regardless of the account ownership, a spouse has an unlimited exclusion. A change of beneficiary/rollover from you to your child is to a younger generation and is...
by Spirit Rider
Fri Jul 20, 2018 12:29 pm
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 112
Views: 13082

Re: Saving 20% of paycheck isn't enough

It is also rather disappointing that you can not not make your argument on its own merits. Rather you felt it necessary to engage in a passive aggressive Ad hominem/Ad populum logical fallacy attack. I don't know what all of that means, I did not intend to attack, I intended to point out the mistak...
by Spirit Rider
Fri Jul 20, 2018 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: Letter from IRS for unpaid tax on Interest/Dividend from 2016
Replies: 1
Views: 385

Re: Letter from IRS for unpaid tax on Interest/Dividend from 2016

It seems I forget to put interest/dividend for around $1500 in 2016. However, yesterday I received letter from IRS asking me to pay the tax on $1500 + some penalty. Does IRS do random audit for this for everyone? Just curious, how did this came on their radar considering this not a big amount. This...
by Spirit Rider
Fri Jul 20, 2018 12:10 pm
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 112
Views: 13082

Re: Saving 20% of paycheck isn't enough

You are making the common mistake of conflating income with expenses. Wise people who make recommendations about saving for retirement advise to save based on your expected expenses in retirement, not based on your income because how much you make does not (or should not) necessarily correlate to h...
by Spirit Rider
Fri Jul 20, 2018 11:31 am
Forum: Personal Finance (Not Investing)
Topic: HSA and FSA at the same time
Replies: 1
Views: 236

Re: HSA and FSA at the same time

1. Am I still ineligible to contribute to HSA? You are still ineligible for an HSA. Any benefit change must be consistent with the Qualifying Life Event (QLE). In fact, decrasing or stopping contributions to a FSA with the addition of a baby is not consistent with the QLE unless she also dropped in...
by Spirit Rider
Fri Jul 20, 2018 11:02 am
Forum: Investing - Help with Personal Investments
Topic: Should I Dump a Pile of Money on Young Son?
Replies: 125
Views: 8297

Re: Should I Dump a Pile of Money on Young Son?

Why don't you set up a trust and put rules into place, like he can only take out the gains for the next so many years, or can only take out a certain dollar amount of principle each year. +1 OP, I would take the $1M inheritance from mom and setup a $1M irrevocable trust with your son as beneficiary...
by Spirit Rider
Fri Jul 20, 2018 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Denied Umbrella Coverage Twice - What now?
Replies: 11
Views: 1391

Re: Denied Umbrella Coverage Twice - What now?

DragonJoey3 wrote:
Fri Jul 20, 2018 10:40 am
I am aware of someone who was cited with reckless driving for a road-rage incident in which they attempted to run the other driver off the road.
That would certainly qualify. Although, I think attempted murder with a dangerous weapon would be more appropriate.
by Spirit Rider
Thu Jul 19, 2018 7:18 pm
Forum: Investing - Help with Personal Investments
Topic: New job no 401k -- options for investment?
Replies: 5
Views: 586

Re: New job no 401k -- options for investment?

I recently changed jobs, and my new employer does not offer a 401k. Majority of my income will be paid on W2. I'm also involved in a side business that will pay a smaller amount as K1. 1. Right now I'm only investing in taxable and Roth. Are there any other options -- such as solo 401k etc? 2. For ...
by Spirit Rider
Thu Jul 19, 2018 7:08 pm
Forum: Investing - Help with Personal Investments
Topic: I'm about to inherit a single stock with a worth of just over 7 figures....
Replies: 103
Views: 8160

Re: I'm about to inherit a single stock with a worth of just over 7 figures....

Agree. There is not a single financial, rational nor educated reason to keep a concentrated position in any single stock when there is the opportunity to get out without tax consequences. A recommendation to keep a single stock is extremely disengenuous to push a dividend strategy which is not base...
by Spirit Rider
Thu Jul 19, 2018 6:45 pm
Forum: Investing - Help with Personal Investments
Topic: Mega Backdoor Roth IRA Withdrawal Pro-Rata?
Replies: 14
Views: 752

Re: Mega Backdoor Roth IRA Withdrawal Pro-Rata?

There is a difference between in-service withdrawals which have specific withdrawal ordering rules (i.e. you can withdraw after-tax contributions + earnings first) and post-separation distributions/rollovers in which the distribution must be prorata. I don't believe that's correct either. When a pl...
by Spirit Rider
Thu Jul 19, 2018 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes - Sep IRA, Solo 401 K, TSP
Replies: 15
Views: 670

Re: Taxes - Sep IRA, Solo 401 K, TSP

1) The annual addition limit (2018 = $55K) is for all employee + employer controbutions. If you have maxed all employee elective and employer controbutions at $55K, there is no room left for employee after-tax contributions. 2) There is a separate annual addition limit for each unaffiliated employer...
by Spirit Rider
Thu Jul 19, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Mega Backdoor Roth IRA Withdrawal Pro-Rata?
Replies: 14
Views: 752

Re: Mega Backdoor Roth IRA Withdrawal Pro-Rata?

Many people get tripped up by this page on the IRS website if not Notice 2014-54 itself. The wording is so bad, if I was prone to conspiracy theories, I would think the IRS was intentionally trying to obfuscate. I stumbled on the IRS page discussing after-tax withdrawals into a Roth account here: ht...
by Spirit Rider
Thu Jul 19, 2018 8:44 am
Forum: Personal Consumer Issues
Topic: switching between AARP Medigap plans
Replies: 20
Views: 2087

Re: switching between AARP Medigap plans

Keep in mind that swtiching from Plan F to Plan G outside of those few states can require medical underwriting. Some carriers such as AARP/UHC have an informal policy of allowing it. It does not surprise me that AARP/UHC would not put that in writing. I doubt any of the carriers offering underwritin...
by Spirit Rider
Thu Jul 19, 2018 8:01 am
Forum: Personal Finance (Not Investing)
Topic: Weird info from HR on HSA
Replies: 13
Views: 1626

Re: Weird info from HR on HSA

Normally your HSA eligibility is prorated by the number of months you have a qualifying HDHP on the 1st of the month. If that is six months your contribution limit = $6900 * 6 / 12 = $3450 less the $900 employer contribution = $2550. However, there is a "last month" rule. If you are HSA eligible on ...
by Spirit Rider
Wed Jul 18, 2018 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: 529 beneficiary transfer question
Replies: 8
Views: 578

Re: 529 beneficiary transfer question

So it doesn't matter that my step children and the original beneficiary (my cousin) are basically not at all related? It doesn't matter if the original beneficiary and new beneficiary are related to each other. The owner just has to have the appropriate relationship to the new beneficiary. The owne...
by Spirit Rider
Wed Jul 18, 2018 4:40 pm
Forum: Personal Finance (Not Investing)
Topic: 529 beneficiary transfer question
Replies: 8
Views: 578

Re: 529 beneficiary transfer question

Publication 970 doesn't imply any restriction. Let me check the Code to see if there are.

P.S. I see nothing in either pub 970 or Section 529 that restricts the change of beneficiary relationship to the original beneficiary.
by Spirit Rider
Wed Jul 18, 2018 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: 529 beneficiary transfer question
Replies: 8
Views: 578

Re: 529 beneficiary transfer question

The account owner and the beneficiary are separate issues. Your grandfather can rollover/change the beneficiary to you if you are a first cousin of the current beneficiary. He can then rollover the assets to 529 plans with your children as beneficiaries. They would be a younger generation than you a...
by Spirit Rider
Tue Jul 17, 2018 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Employer Contributions for Solo 401k
Replies: 4
Views: 289

Re: Employer Contributions for Solo 401k

The base maximum employer contribution calculation is 20% of your net self-employment earnings (business profit - 1/2 SE tax). Your business profit is from Schedule C (business income - business expenses). Your 1/2 SE tax is from Schedule SE. The only tax year specific information in the Deduction W...
by Spirit Rider
Tue Jul 17, 2018 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Solo 401k Placement
Replies: 15
Views: 684

Re: Help with Solo 401k Placement

Holdolding real estate inside the 401k presents significant risks of prohibited transactions. Here are some examples. Paying rehab costs out of pocket would be a prohibited transaction. As would any amount of sweat equity. All services must be contracted to some who is not a prohibited person. All m...
by Spirit Rider
Tue Jul 17, 2018 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Help with Solo 401k Placement
Replies: 15
Views: 684

Re: Help with Solo 401k Placement

Since the OP mentioned that this is a non-prototype one-participant 401k plan. I am assuming that they are referring to actually purchasing real estate in the 401k. I am not a fan of this for many reasons. It is performance chasing, you should take your risks in taxable where they can be compensated...
by Spirit Rider
Tue Jul 17, 2018 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Business Credit Card
Replies: 9
Views: 854

Re: Business Credit Card

Also, for a larger business with significant liability, it is potentially one less avenue to pierce the company veil.
by Spirit Rider
Mon Jul 16, 2018 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Business Credit Card
Replies: 9
Views: 854

Re: Business Credit Card

Gross revenue in and of itself is not going to get you a business credit card without a personal guarantee. A business with < $100K in gross revenue and good credit will be able to get a true business credit card, whereas a business with > $1M in gross revenue and no credit or bad credit will not. I...
by Spirit Rider
Mon Jul 16, 2018 11:36 am
Forum: Personal Consumer Issues
Topic: Suggestions For Re-attaching a Closet Handle
Replies: 22
Views: 746

Re: Suggestions For Re-attaching a Closet Handle

Another option that works in many case. Like many of the previous suggestions to fill the hole. Try using a wooden golf tee. It is tapered and can be tapped in and either snip or cut off.
by Spirit Rider
Mon Jul 16, 2018 11:30 am
Forum: Investing - Help with Personal Investments
Topic: Changing jobs - 401k etc
Replies: 8
Views: 429

Re: Changing jobs - 401k etc

You could check with your current/old 401k plan. You can not remove excess employee elective contributions until after the end of the year. Even then, no employer is required to do so. Most plans will only return excess employee elective contributions of current employees. However, if your current/o...
by Spirit Rider
Mon Jul 16, 2018 11:10 am
Forum: Investing - Help with Personal Investments
Topic: Late Tax Filer - SEP IRA to Solo 401k for 2017
Replies: 1
Views: 126

Re: Late Tax Filer - SEP IRA to Solo 401k for 2017

Yes, you can still make a SEP IRA contribution for the 2017 tax year. If your one-participant 401k accepts IRA rollovers, you can certainly roll the SEP IRA into the 401k.
by Spirit Rider
Mon Jul 16, 2018 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Home Equity Loan: anyone have experience?
Replies: 7
Views: 606

Re: Home Equity Loan: anyone have experience?

Taking the OP at face value, they are talking about a Home Equity Loan (HEL) and not a Home Equity Line Of Credit (HELOC). They are not remotely the same product. HELs are fixed rate fixed length portfolio loans with reduced underwriting. If they are the only lien against the property, the are treat...
by Spirit Rider
Mon Jul 16, 2018 10:14 am
Forum: Investing - Help with Personal Investments
Topic: New Fidelity Solo 401k: FFNOX or FSTMX to start?
Replies: 6
Views: 471

Re: New Fidelity Solo 401k: FFNOX or FSTMX to start?

In a Fidelity Self-Employed 401k, the Investor Class minimum per fund is reduced to $500. "Initial minimum investments into group retirement accounts such as Fidelity Simplified Employee Pension-IRA, Keogh, Self-Employed 401(k), and Non-Fidelity Prototype Retirement accounts are $500 or higher. Ther...
by Spirit Rider
Mon Jul 16, 2018 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Changing jobs - 401k etc
Replies: 8
Views: 429

Re: Changing jobs - 401k etc

(1) What to do with my old 401k money? My inclination is to just put it in a Vanguard IRA, but not sure if this has implications for mega backdoor Roth. Roll it over to the new 401k. Traditional IRA balances will not interfere with Mega Backdoor Roth, but will interfere with regular Backdoor Roth. ...
by Spirit Rider
Sun Jul 15, 2018 10:24 pm
Forum: Personal Consumer Issues
Topic: Did I get ripoff by this car mechanic?
Replies: 37
Views: 3675

Re: Did I get ripoff by this car mechanic?

I do not know enough to answer your specific question about the cost, but have some observations. Comparing a mechanic's retail price for parts to Amazon prices is a classic Apples to Oranges comparison. Any mechanic who does have an adequate profit margin on their installed parts will not remain in...
by Spirit Rider
Sun Jul 15, 2018 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: 401k for 1099 income
Replies: 6
Views: 611

Re: 401k for 1099 income

Technically, after-tax contributions and the rollover of those contributions and earnings to the 401k designated Roth account, is an In-Plan Roth Roller (IRR) and not a Mega Backdoor Roth. A Mega Backdoor Roth is after-tax contributions and either the rollover of those contributions and earnings to ...
by Spirit Rider
Sun Jul 15, 2018 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes and sole proprietorship
Replies: 9
Views: 739

Re: Taxes and sole proprietorship

I read some where that the 20% pass-through deduction may apply to the lesser of either qualified business income or taxable income: For example, say Schedule C income is $60k after business expenses an taxable income lands closer to $30k (after HSA and standard deduction, etc) -- if what I read ab...
by Spirit Rider
Sun Jul 15, 2018 9:20 am
Forum: Personal Finance (Not Investing)
Topic: 14 years with Bogleheads
Replies: 13
Views: 1989

Re: 14 years with Bogleheads

car733 wrote:
Sun Jul 15, 2018 8:04 am
did this forum exist 14 years ago?
Morningstar 1998
Bogleheads 2007
by Spirit Rider
Sat Jul 14, 2018 11:25 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes and sole proprietorship
Replies: 9
Views: 739

Re: Taxes and sole proprietorship

As a sole proprietor with $100k in business profit (business income - business expenses), your net self-employment earnings (business profit - 1/2 SE tax) will be $92,985 ($100,000 - $7,065). You could adopt a one-participant 401k. This would allow you to make a 2018 employee elective deferral of a ...
by Spirit Rider
Sat Jul 14, 2018 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Inherited retirement account
Replies: 12
Views: 1510

Re: Inherited retirement account

The only thing she should NOT do is take it as an inherited IRA. If she does this, any beneficiaries would have to take RMDs based on her age, it provides no benefit and has not assets protection. At a minimum she should take ownership of all retirement accounts and promptly name beneficiaries. This...
by Spirit Rider
Fri Jul 13, 2018 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes - Sep IRA, Solo 401 K, TSP
Replies: 15
Views: 670

Re: Taxes - Sep IRA, Solo 401 K, TSP

Nope.

All LLCs would be considered 100% owned by by both spouses under attribution rules and stil considered a controlled group.

It doesn't matter what convoluted scheme you try to come up with. Congress and the IRS are not going to allow an indiviual to exceed one annual addition limit.
by Spirit Rider
Fri Jul 13, 2018 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes - Sep IRA, Solo 401 K, TSP
Replies: 15
Views: 670

Re: Taxes - Sep IRA, Solo 401 K, TSP

CAGR, your last post is correct for someone < age 50 for 2018.
by Spirit Rider
Fri Jul 13, 2018 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes - Sep IRA, Solo 401 K, TSP
Replies: 15
Views: 670

Re: Taxes - Sep IRA, Solo 401 K, TSP

Total 401k contributions: $165,000 ($15,000 employee contribution, $150,000 employer contribution) which may reduce your current income tax bill by around $40,700. Of course you'd need to consult a tax professional to confirm multiple solo 401ks are legal with independent contribution limits and co...
by Spirit Rider
Fri Jul 13, 2018 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: New to HSA with Fidelity
Replies: 13
Views: 772

Re: New to HSA with Fidelity

Spirit Rider: I know you are knowledgeable about most of this stuff. I've been out of Megacorp for a while, but seem to recall that they funded an HRA for folks who participated in their annual "we want to help you be healthy" campaign (i.e. lie about a bunch of health stuff on a "private" online s...
by Spirit Rider
Fri Jul 13, 2018 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: New to HSA with Fidelity
Replies: 13
Views: 772

Re: New to HSA with Fidelity

Spirit Rider: I know you are knowledgeable about most of this stuff. I've been out of Megacorp for a while, but seem to recall that they funded an HRA for folks who participated in their annual "we want to help you be healthy" campaign (i.e. lie about a bunch of health stuff on a "private" online s...
by Spirit Rider
Fri Jul 13, 2018 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Question for pre-ACA Early Retirees and pre-ACA solo folks
Replies: 33
Views: 1863

Re: Question for pre-ACA Early Retirees

It is incorrect to say there were no protections for pre-existing conditions prior to the ACA. In 1996 ERISA was amended to include the Health Insurance Portability and Accountability Act (HIPAA). A group plan could not exclude pre-existing conditions if the individual had at least 12 months of pre...
by Spirit Rider
Fri Jul 13, 2018 3:34 pm
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 112
Views: 13082

Re: Saving 20% of paycheck isn't enough

I see both sides. It's demonstrably false that " most [i.e. over 50%] people are laid off at 50 and never get back to good jobs." But it's true that many over the age of 50 do get laid off at some point, and many of these people do have issues making lateral moves to other jobs. That's part of the ...