Search found 10280 matches

by Spirit Rider
Sat Apr 20, 2019 9:24 am
Forum: Personal Finance (Not Investing)
Topic: Best Credit Card for College Freshman
Replies: 36
Views: 1197

Re: Best Credit Card for College Freshman

I believe the credit CARD act of 2009 still controls the options available to an 18 year old. Student applicants under 21 are required to have co-signers , such as parents or other adults over the age of 21, who will take on joint liability for any card debts that are incurred. If young adults want...
by Spirit Rider
Sat Apr 20, 2019 8:56 am
Forum: Personal Investments
Topic: Ever Too Much in HSA?
Replies: 21
Views: 1913

Re: Ever Too Much in HSA?

Since I only have non-spouse beneficiaries, I plan on taking 10 year certain RMDs of unreimbursed qualified medical expenses starting at age 65. In other words, 1/10th at age 65, 1/9th at age 66 and ... and remaining distribution at age 74. Then 100% reimbursement thereafter. Assuming the HSA balan...
by Spirit Rider
Sat Apr 20, 2019 5:57 am
Forum: Personal Investments
Topic: Ever Too Much in HSA?
Replies: 21
Views: 1913

Re: Ever Too Much in HSA?

You are correct that Medigap premiums are not an HSA qualified medical expense, but I would highly advise against the Black Swan risk of no Medigap. You can accomplish most of what you want by, using a Medigap plan F-HD or soon to be Plan G-HD. You are still insured against catastrophic costs, but b...
by Spirit Rider
Sat Apr 20, 2019 5:46 am
Forum: Personal Finance (Not Investing)
Topic: IRS and Taxes
Replies: 2
Views: 304

Re: IRS and Taxes

All that is required is that you meet one of the safe harbors with withholding and/or estimated tax payments. You could use your IRA withholding to cover the taxes on any number of income sources. This could be income from SE, SS, pensions, RE, taxable retirement distributions, investments, etc... N...
by Spirit Rider
Fri Apr 19, 2019 8:31 am
Forum: Personal Investments
Topic: Combining Old Pre-Tax 401Ks Into 1 Rollover IRA
Replies: 3
Views: 168

Re: Combining Old Pre-Tax 401Ks Into 1 Rollover IRA

Whether you rollover one or many employer retirement plans to a single Rollover IRA is irrelevant. It is the comingling of employer retirement plans and traditional IRA contributions in a single IRA that is a potential problem. Some employer plans still will not allow you to rollover such a commingl...
by Spirit Rider
Thu Apr 18, 2019 7:39 pm
Forum: Personal Investments
Topic: SEP IRA to i401k to open up backdoor ROTH
Replies: 13
Views: 454

Re: SEP IRA to i401k to open up backdoor ROTH

The very first day you have an eligible non-owner/spouse employee you are in non-compliance if you have a one-participant 401k. Therefore, the Fidelity CSR was not entirely correct when they said that their SE401k is not meant for companies who have employees other than owners and spouses. The key w...
by Spirit Rider
Thu Apr 18, 2019 1:58 pm
Forum: Personal Investments
Topic: Inherited Keogh / Stock Basis
Replies: 8
Views: 364

Re: Inherited Keogh / Stock Basis

@NotWhoYouThink is correct on all points.
by Spirit Rider
Thu Apr 18, 2019 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Not Maxing 401K OK?
Replies: 39
Views: 3842

Re: Not Maxing 401K OK?

You don't have to max. This site is weird. It's unusual to max but quite a nice tax deferral for those in high tax brackets. Also, high-earning people in HCOL areas (like many folks here) are likely to expect only a small fraction of their retirement expenses to be covered by Social Security, and h...
by Spirit Rider
Thu Apr 18, 2019 9:28 am
Forum: Personal Investments
Topic: next dollar of savings
Replies: 33
Views: 2547

Re: next dollar of savings

I want to revive this thread after reading this thread about after-tax 401k contributions in this thread: I looked at my company's 401k plan and it looks like I have the option for after-tax contributions, though I have never used that option. I pulled down the plan documents and found this section...
by Spirit Rider
Wed Apr 17, 2019 10:02 pm
Forum: Personal Investments
Topic: Inherited Keogh / Stock Basis
Replies: 8
Views: 364

Re: Inherited Keogh / Stock Basis

There is no "cost basis" in a Keough or an Inherited IRA account transferred from such. There is no such thing as step-up basis or capital gains. Those are exclusively taxable account characteristics.100% of all distributions are taxable regardless of what is contributions and what is earnings.
by Spirit Rider
Wed Apr 17, 2019 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: Not Maxing 401K OK?
Replies: 39
Views: 3842

Re: Not Maxing 401K OK?

Do not listen to the mindless "you must max out your 401k" mantra espoused by some on here. It is a useless metric. Like all arbitrary dollar amounts its value is limited to a narrow range of individuals. For many people it is either far less or more than necessary. You are contributing almost $30K ...
by Spirit Rider
Wed Apr 17, 2019 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k spouse contributions - proper setup and tax filing
Replies: 2
Views: 213

Re: Solo 401k spouse contributions - proper setup and tax filing

@Plutus_mind is correct, your tax professional was not. You and your wife can not contribute from two differently owned businesses to the same one-participant 401k. They need to be treated as one qualified joint venture. I would add a small correction, the ownership interest in a qualified joint ven...
by Spirit Rider
Wed Apr 17, 2019 5:57 pm
Forum: Personal Investments
Topic: tIRA and 401k RO - Commingled dollars and consequences
Replies: 6
Views: 257

Re: tIRA and 401k RO - Commingled dollars and consequences

Either TDA was incorrect or you misunderstood them. TDA suggested just opening a Roth and leaving the tIRA alone and don't contribute there going forward - contribute to a new Roth. Also, I checked my last two tax returns and the 8606 is blank. I've reported the IRA contributions, but the H&R Block...
by Spirit Rider
Wed Apr 17, 2019 4:23 pm
Forum: Personal Investments
Topic: tIRA and 401k RO - Commingled dollars and consequences
Replies: 6
Views: 257

Re: tIRA and 401k RO - Commingled dollars and consequences

Either TDA was incorrect or you misunderstood them.

If you have properly been filing Form 8606 to report each non-deductible contribution and the accumulating non-deductible basis. The non-deductible basis will not be taxable, but any distributions will be subject to pro-rata taxation.
by Spirit Rider
Wed Apr 17, 2019 3:42 pm
Forum: Personal Investments
Topic: A separate traditional IRA acccount?
Replies: 45
Views: 2488

Re: A separate traditional IRA acccount?

If you are currently employed* with a 401k, 403b or 457b plan that accepts IRA rollovers. You can rollover only the pre-tax IRA balances in all IRAs. Then you can do a Roth conversion of the remaining non-deductible basis with little to no tax liability. *It is not common, but a small minority of pl...
by Spirit Rider
Wed Apr 17, 2019 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare and Health Savings Account Contributions
Replies: 4
Views: 349

Re: Medicare and Health Savings Account Contributions

When you state you are making maximum HSA contributions and your employer is also making contributions. Do you really mean you are contributing the maximum limit - your employer contributions. If not, you are making excess contributions. There is a major deficency in that link.You should be aware th...
by Spirit Rider
Wed Apr 17, 2019 11:59 am
Forum: Personal Investments
Topic: A separate traditional IRA acccount?
Replies: 45
Views: 2488

Re: A separate traditional IRA acccount?

You are still not understanding. If there are any pre-tax balances in any IRA and you make a $7,000 non-deductible contribution and do a $7,000 Roth conversion. A pro-rata amount of that conversion will be taxable.
by Spirit Rider
Wed Apr 17, 2019 9:22 am
Forum: Personal Investments
Topic: A separate traditional IRA acccount?
Replies: 45
Views: 2488

Re: A separate traditional IRA acccount?

I'm not sure you fully understand. The question is whether the traditional IRA contribution(s) was deducted or not. Any deducted traditional IRA contributions are pre-tax (meaning they have not been taxed). If they were not deducted, they were non-deductible contributions and they should have been r...
by Spirit Rider
Wed Apr 17, 2019 9:11 am
Forum: Personal Investments
Topic: After Tax 401k
Replies: 26
Views: 1925

Re: After Tax 401k

Yes. assuming the plan allows employee after-tax contributions, in-service rollovers and a split direct rollover (one to a Roth IRA and one to a traditional IRA. If a plan supports in-service rollovers, they are required to allow one direct rollover. They can but are not required to allow two. There...
by Spirit Rider
Tue Apr 16, 2019 8:40 pm
Forum: Personal Investments
Topic: After Tax 401k
Replies: 26
Views: 1925

Re: After Tax 401k

So my question is --- we're contributing the yearly max to our 401K and our Roth IRA, which brings us down to just under the 12% bracket. Does it make sense then to do small in-plan rollovers of trad 401k money into a roth 401k so that we just reach the limit of the 12% bracket? In other words, rol...
by Spirit Rider
Tue Apr 16, 2019 7:47 pm
Forum: Personal Investments
Topic: Max 2019 retirement contributions?
Replies: 5
Views: 666

Re: Max 2019 retirement contributions?

Backdoor Roth of $7k does not count against the $62k limit for over-50 folks. For the Mega Backdoor Roth (using after-tax 401k): (a) 401k pre-tax (b) 401k Roth (c) 401k employer match (d) 401k after-tax (e) 401k forfeitures allocated as employer contributions (f) 401k pre-tax and/or Roth catch-up c...
by Spirit Rider
Tue Apr 16, 2019 7:33 am
Forum: Personal Investments
Topic: Max 2019 retirement contributions?
Replies: 5
Views: 666

Re: Max 2019 retirement contributions?

The 2019 annual addition limit is $56K, 2018 was $55K.

IRA contributions are a separate limit $6K + $1K catch-up.
by Spirit Rider
Mon Apr 15, 2019 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: help! over contributed to solo Roth 401k
Replies: 3
Views: 195

Re: help! over contributed to solo Roth 401k

Immediately file an extension! You can do it online at the IRS.

Then the solution depends what type of over contribution and whether the over contribution was in 2018 or 2019.
by Spirit Rider
Mon Apr 15, 2019 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Physician “TO-DO” list for LLC
Replies: 28
Views: 2232

Re: Physician “TO-DO” list for LLC

Is this just business profits, or gross household income? The amount of the money saved by an S-Corp with W-2 wages >= the Social Security maximum wage base (2019 = $132,900). Is based on (net business profits - employer FICA) - W-2 wages. Eligibility for the QBI deduction is based on taxable incom...
by Spirit Rider
Mon Apr 15, 2019 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Physician “TO-DO” list for LLC
Replies: 28
Views: 2232

Re: Physician “TO-DO” list for LLC

Technically, an EIN is not required by a one-participant 401k until a filing is required by the plan. Unless you commit a plan error, this is not required until plan assets are > $250K on 12/31 of any year requiring the filing of Form 5500-EZ. Fidelity has an EIN on their adoption agreement, but it ...
by Spirit Rider
Mon Apr 15, 2019 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Am I able to do a Mega Backdoor ROTH?
Replies: 9
Views: 709

Re: Am I able to do a Mega Backdoor ROTH?

You know all you need to know to determine if you can do a so-called Mega Backdoor Roth, but not necessarily how you can do it. There are only two types of transactions in a retirement plan/account; contributions and distributions. A withdrawal is just another term for a distribution. A rollover is ...
by Spirit Rider
Mon Apr 15, 2019 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Physician “TO-DO” list for LLC
Replies: 28
Views: 2232

Re: Physician “TO-DO” list for LLC

My assumption from comments above is that Vanguard solo 401K has no employee restriction, so that if she ever hired an employee she would immediately be disqualified from a solo 401K and would have to roll over that pre-tax income into a SEP-IRA? Would you advise using Fidelity instead? Are expense...
by Spirit Rider
Sun Apr 14, 2019 11:40 pm
Forum: Personal Consumer Issues
Topic: Anyone have a child model?
Replies: 42
Views: 4482

Re: Anyone have a child model?

Yes you are correct it is tax deferred and not tax free. HOWEVER, it is crazy you wouldn't want to take advantage of 60+ years of tax deferred growth. It is a great idea and my daughter will be happy I thought about. Vanguard VA have pretty low costs considering the are VA. Sorry, but it makes less...
by Spirit Rider
Sun Apr 14, 2019 11:32 pm
Forum: Personal Investments
Topic: Sep IRA question
Replies: 8
Views: 369

Re: Sep IRA question

The reason I hate lack of online contributions with Fidelity is it takes 2-3 days for USPS to deliver mail, 1-2 days for Fidelity to process it, and then they hold the funds for 2-4 days before I can invest. There is a workaround. Open a cash management account in the same name as the SE401k employ...
by Spirit Rider
Sun Apr 14, 2019 10:25 pm
Forum: Personal Investments
Topic: Sep IRA question
Replies: 8
Views: 369

Re: Sep IRA question

1. For my circumstances would contributing to a SEP make sense for retirement planning and lowering my taxable income? No. As has already been pointed out. You want to adopt a one-participant 401k that accept IRA rollover contributions (not Vanguard). 2. Are there income limits for a SEP IRA like t...
by Spirit Rider
Sun Apr 14, 2019 9:57 pm
Forum: Personal Consumer Issues
Topic: Anyone have a child model?
Replies: 42
Views: 4482

Re: Anyone have a child model?

You don't need to have a kid making money just to open an IRA to execute the concept. I did for my baby (now 6) with a vanguard VA. It gives tax free growth until they take it out in retirement (60+ year from now). Mr. Clement used to write about this in his earlier days. Now 60+ years of growth is...
by Spirit Rider
Sun Apr 14, 2019 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Improving the TSP [for current participants]
Replies: 283
Views: 46756

Re: Improving the TSP [for current participants]

Allowing in-plan conversions would be great! What would it take to also allow post-tax deferrals to convert for the mega-Backdoor? Could the board do that through reg or does Congress have to do something? It might sound like semantics, but terminology is important. There are three types of employe...
by Spirit Rider
Sun Apr 14, 2019 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: Physician “TO-DO” list for LLC
Replies: 28
Views: 2232

Re: Physician “TO-DO” list for LLC

She’s a plastic surgeon out of training (this gig is with another plastic surgeon and will likely be a 1099, but could potentially be a W-2, we are trying to iron out relationship based on IRS definition). My understanding is it takes 2 yrs to build a referral base, but income likely ~300K/yr event...
by Spirit Rider
Sun Apr 14, 2019 12:02 pm
Forum: Personal Consumer Issues
Topic: Anyone have a child model?
Replies: 42
Views: 4482

Re: Anyone have a child model?

I have seen many parents get sucked into baby or child modeling. For the ones who actually made any money (the vast minority) at all it was hundred$ not thousand$. The lack of actual use and outright rejections were heart breaking for the older ones. Newsflash, your kids really aren't that cute and ...
by Spirit Rider
Sun Apr 14, 2019 11:53 am
Forum: Personal Investments
Topic: Establishing our Son's First ROTH IRA
Replies: 5
Views: 359

Re: Establishing our Son's First ROTH IRA

Fidelity has no Roth IRA account or fund investment minimums. Schwab has no Roth IRA account minimum and just a $1 fund minimum. Both freely accept mailed in contributions.
by Spirit Rider
Sun Apr 14, 2019 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Contribution deadlines for qualified plans / Mike Piper
Replies: 20
Views: 2112

Re: Contribution deadlines for qualified plans / Mike Piper

You are the one who ultimately determines what are employee elective contributions and catch-up contributions and what are employer contributions. You certainly can make only designated Roth elective contributions and designated Roth catch-up contributions. This will allow you to have no pre-tax emp...
by Spirit Rider
Sat Apr 13, 2019 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Feedback on Guideline 401k
Replies: 36
Views: 4286

Re: Feedback on Guideline 401k

Make sure you know how to cancel the program and what Guideline will charge. There was WAYYYYYYY MORE than met the eye with the 401K that we set up. Initially, Alex Kemper was easy to deal with and helped us set up the account and it was easy to begin sending them funds. Now we are trying to unroll...
by Spirit Rider
Sat Apr 13, 2019 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: Contribution deadlines for qualified plans / Mike Piper
Replies: 20
Views: 2112

Re: Contribution deadlines for qualified plans / Mike Piper

That appears to be correct, but I don't understand why you don't just use tax software, especially in the first year of the QBI to be sure. There are no IRS worksheets to explicitly calculate QBI and the deduction.
by Spirit Rider
Sat Apr 13, 2019 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Single Member LLC (Software Consultant) - Hire Employees?
Replies: 4
Views: 387

Re: Single Member LLC (Software Consultant) - Hire Employees?

Keep in mind that if you do decide to hire employees, a one-participant 401k plan does not have to be immediately toast. With the exception of Vanguard all the other mainstream one-participant 401k providers allow you elect employee eligibility restrictions. You can restrict eligible employees to th...
by Spirit Rider
Sat Apr 13, 2019 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Advise on side gig w2 or independent contractor
Replies: 11
Views: 579

Re: Advise on side gig w2 or independent contractor

This is actually one case where even if the two jobs were paying the same, being an IC would pay more. A W-2 moonlighting employment will require 7.65% FICA be deducted. Since the SS maximum wage base have been reached in the primary W-2 employment. The SE self-employment will only require 2.9% SE ...
by Spirit Rider
Sat Apr 13, 2019 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Medigap pricing and Medicare generally
Replies: 21
Views: 1152

Re: Medigap pricing and Medicare generally

The 6 month signup period starts 3 months BEFORE your 65th birthday and ends 3 months after. By signing up before you turn 65, you will have coverage in place starting the 1st of the month in which you turn 65. If you wait until after your 65th birthday to sign up, I do not believe you get retroact...
by Spirit Rider
Sat Apr 13, 2019 2:34 pm
Forum: Personal Investments
Topic: SIMPLE IRA contribution is missing
Replies: 9
Views: 671

Re: SIMPLE IRA contribution is missing

It does not matter who is to blame. The "buck" (literally) stops with the employer. They are the ones who as of 3/31/19 for February 2019 SIMPLE IRA employee deferrals were in non-compliance with IRS and DOL regulations. Failure to deposit employee elective deferrals timely is a serious SIMPLE IRA p...
by Spirit Rider
Sat Apr 13, 2019 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Physician “TO-DO” list for LLC
Replies: 28
Views: 2232

Re: Physician “TO-DO” list for LLC

As @ReasearchMed pointed out, an LLC for a professional providing just personal services with no facilities and/or employees, is likely to be unnecessary, provide little to no benefit and may be counter-productive. You will receive little to no liability protection for your personal services and it ...
by Spirit Rider
Sat Apr 13, 2019 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Contributions to grandchild's IRA
Replies: 6
Views: 437

Re: Contributions to grandchild's IRA

Under the model UTMA statute, you can open and fund a UTMA Roth IRA up until the age of termination for that state. You can choose to base the UTMA in your state, the UTMA account owner's state or the financial institution's state. There are only two states (KY and SD) plus the lone UGMA holdout sta...
by Spirit Rider
Sat Apr 13, 2019 1:04 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"
Replies: 62
Views: 8769

Re: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"

I personally take the existence of such funds as positive proof that the market is not 'perfectly' efficient. It provides no such proof and reflects a fundamental misunderstanding of EMH. I was not referring to the EMH. There is a misunderstanding of the word efficient. capable of producing desired...
by Spirit Rider
Sat Apr 13, 2019 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Roth 401(k) - Is this normal?
Replies: 35
Views: 1680

Re: Roth 401(k) - Is this normal?

There is a common and fundamental misunderstanding about 401k "accounts". The actual IRS regulations only require that the different taxation types of accounts (pre-tax, Designated Roth and employee after-tax) as well as their distributable status (employee deferrals, designated Roth contributions, ...
by Spirit Rider
Sat Apr 13, 2019 12:16 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"
Replies: 62
Views: 8769

Re: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"

willthrill81 wrote:
Sat Apr 13, 2019 12:09 pm
I personally take the existence of such funds as positive proof that the market is not 'perfectly' efficient.
It provides no such proof and reflects a fundamental misunderstanding of EMH.
by Spirit Rider
Sat Apr 13, 2019 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Medigap pricing and Medicare generally
Replies: 21
Views: 1152

Re: Medigap pricing and Medicare generally

btenny wrote:
Sat Apr 13, 2019 11:50 am
So consider your options carefully as this is once in a life time major decision.
As I stated, this will not apply to the OP as long as they stay in NYS. They will have lifetime guaranteed issue at anytime.
by Spirit Rider
Sat Apr 13, 2019 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 3565
Views: 665346

Re: What's Your Credit Card Rewards Strategy?

One thing to keep in mind with CDW, purchase protection, etc... The credit card issuers almost always contract with a third party company. That third party makes most of their profit by denying your claims. They are looking for any reason to deny those claims.
by Spirit Rider
Sat Apr 13, 2019 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Medigap pricing and Medicare generally
Replies: 21
Views: 1152

Re: Medigap pricing and Medicare generally

There is no one site for all states. Individual states may have pricing on a website. My state has no such website, but produces a complete list of approved insurance companies, their supported plan and respective prices. Some states have neither and you must either use an insurance broker or call ...