Search found 5913 matches

by Spirit Rider
Sat Sep 23, 2017 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: Should I create LLC for new business?
Replies: 7
Views: 372

Re: Should I create LLC for new business?

An LLC only protects your personal assets if the LLC is truly not run as a sole proprietorship. In other words, someone else has to hold stock. Not sure if it can be a spouse to get the protection. (warning: this may be state dependent.) This is based on a false premise. A Limited Liability Company...
by Spirit Rider
Sat Sep 23, 2017 9:26 am
Forum: Personal Finance (Not Investing)
Topic: 1099 vs W2 decision
Replies: 6
Views: 349

Re: 1099 vs W2 decision

I would add one additional point based on your most recent reply. Basic economics states that the market value of a product and/or services is not expressly dependent on the cost of those goods and/or services. You are certainly entitled to set and/or accept a lower rate based on the fact that your ...
by Spirit Rider
Sat Sep 23, 2017 9:11 am
Forum: Personal Finance (Not Investing)
Topic: Should I create LLC for new business?
Replies: 7
Views: 372

Re: Should I create LLC for new business?

No, there is unlikely to be a benefit to an LLC in this fact pattern. As already pointed out, by default a single member LLC is disregarded for income tax purposes anyway. You will still file as a sole proprietorship. There will be no difference in allowed business expenses, other than the extra cos...
by Spirit Rider
Sat Sep 23, 2017 9:00 am
Forum: Personal Consumer Issues
Topic: Asking for no wedding gifts
Replies: 43
Views: 1808

Re: Asking for no wedding gifts

Regarding monetary gifts, let's try to be conscientious of different cultural norms. For a Caucasian American wedding, requests for cash gifts can come off as tacky to some but practical to others. But for Asian American weddings, cash and gold jewelry are the norm, and boxed gifts are really odd a...
by Spirit Rider
Sat Sep 23, 2017 8:48 am
Forum: Personal Finance (Not Investing)
Topic: [IRA withdrawal - rollover rule questions]
Replies: 1
Views: 92

Re: [IRA withdrawal - rollover rule questions]

The one IRA rollover per 12 month rule, only applies to like IRA -> IRA rollovers. That is, pre-tax IRA -> pre-tax IRA accounts (traditional, SEP, SIMPLE) and Roth IRA -> Roth IRA. It does not apply to rollovers from/to 401k, 403b, etc... and Roth conversions. You are fine, there is no tax liability...
by Spirit Rider
Sat Sep 23, 2017 12:04 am
Forum: Personal Finance (Not Investing)
Topic: Realtor to buy home?
Replies: 33
Views: 2273

Re: Realtor to buy home?

Neither buyer nor seller, regardless of any legal, ethical, code of conduct, etc.., should ever assume that any real estate professional acts in anyone's best interest other than themselves. A buyer's agent especially operates under an explicit conflict of interest. It is by self-evidence that both ...
by Spirit Rider
Fri Sep 22, 2017 11:09 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 vs W2 decision
Replies: 6
Views: 349

Re: 1099 vs W2 decision

lotusflower wrote:
Fri Sep 22, 2017 11:06 pm
I basically agree, except if you are doing shorter-term gigs, say a month or less, then I think you should charge a higher rate
Edited to reflect your input.
by Spirit Rider
Fri Sep 22, 2017 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 vs W2 decision
Replies: 6
Views: 349

Re: 1099 vs W2 decision

I don't have a spreadsheet, but there are a lot more than just the employer share of employment taxes and employer retirement plan contributions. You have your entire employee benefit structure which varies from company to company. The average company spends about 1/3 of salary in additional employe...
by Spirit Rider
Fri Sep 22, 2017 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding an HSA - help
Replies: 9
Views: 1053

Re: Understanding an HSA - help

So my health insurance through my current employer does not qualify for an HSA. Can I still contribute to my existing HSA without the tax deduction or are all contributions forbidden? Thanks! You must have an HSA qualified HDHP to be eligible to make HSA contributions. There is no such concept as n...
by Spirit Rider
Fri Sep 22, 2017 7:38 pm
Forum: Investing - Help with Personal Investments
Topic: In-service Rollover of BIL's 401k Plan....
Replies: 1
Views: 150

Re: In-service Rollover of BIL's 401k Plan....

If the 401k plan allows in-service rollovers of all contribution types after 59 1/2, IRS regulations allow the rollover of all 401k vested assets including employee deferrals. The only consideration is that employer 401k plans provide full anti-alienation asset protection against creditors. Dependin...
by Spirit Rider
Fri Sep 22, 2017 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: SIMPLE IRA with T.RowePrice - will T.RowePrice stop contribution at limit or are we responsible to check it
Replies: 2
Views: 134

Re: SIMPLE IRA with T.RowePrice - will T.RowePrice stop contribution at limit or are we responsible to check it

This may be contractually delegated to a third party (e.g. payroll), but is ultimately the employer's responsibility to ensure adherence to the SIMPLE IRA employee deferral limit, not the custodian. Either way it is not the employee's responsibility. Still, I would check with HR/Payroll anyway. It m...
by Spirit Rider
Thu Sep 21, 2017 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling over previous 401k to a solo 401k
Replies: 8
Views: 500

Re: Rolling over previous 401k to a solo 401k

It is a workable strategy and one I used when I was contracting. My only word of caution is that contributions to the solo 401k should be an ongoing event, ie, the business that she opens the plan under should be an ongoing concern. I say this because it "seems" that the IRS does not want solo 401k...
by Spirit Rider
Thu Sep 21, 2017 6:48 pm
Forum: Personal Consumer Issues
Topic: How does this two factor authentication work?
Replies: 9
Views: 629

Re: How does this two factor authentication work?

bluebolt wrote:
Thu Sep 21, 2017 6:36 pm
Pseudo-random, not random, correct? Otherwise, how could they both generate the same number?
Nit picking. It is a distinction without a difference for security purposes. RSA SecureID is secure.
by Spirit Rider
Thu Sep 21, 2017 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Deceased Mother medical bill
Replies: 42
Views: 5054

Re: Deceased Mother medical bill

if her ira had money in it at the time she was in skilled care, then it was accessible to her and as such her bills would have been paid out of it until depleting down to the medicaid limit. instead it sounds like the poa just chose not to pay the bill even though funds existed to do so. then when ...
by Spirit Rider
Thu Sep 21, 2017 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Deceased Mother medical bill
Replies: 42
Views: 5054

Re: Deceased Mother medical bill

I sure hope no one other than the mother signed a financial responsibility agreement. When my favorite sister went into hospice after a long battle with breast cancer, they tried to guilt me into signing such an agreement. After my sister signed her admission paper work, they turned to me in front o...
by Spirit Rider
Thu Sep 21, 2017 8:15 am
Forum: Personal Finance (Not Investing)
Topic: RMD Dates
Replies: 9
Views: 735

Re: RMD Dates

In order to minimize the tax bite, I'll take a distribution in Dec of 2018 and each calendar year thereafter. Am I missing anything? Don't want to get this wrong !! That is only true if your marginal tax rate will be higher and/or it will affect other things such as your IRMAA tier. In many cases e...
by Spirit Rider
Thu Sep 21, 2017 8:05 am
Forum: Investing - Help with Personal Investments
Topic: solo 401k, husband and wife LLC
Replies: 20
Views: 679

Re: solo 401k, husband and wife LLC

S-Corp compensation for retirement plan contributions is W-2 Box 1 (including health insurance premiums and HSA contributions), then add back in any employee deferrals from W-2 Box 12.

Which should be the same as your number, but it can be calculated purely from your W-2 Boxes 1 and 12.
by Spirit Rider
Wed Sep 20, 2017 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA to Traditional IRA for 2016
Replies: 4
Views: 392

Re: SEP IRA to Traditional IRA for 2016

The software generates W-2 automatically, but in 2016, it didn't have the feature to include SEP IRA. But my daughter didn't know that. In fact, she forgot that she contributed to her SEP IRA in 2016, only to discover at tax time. Can she put this contribution in 1040 form. She gets both W-2 and 11...
by Spirit Rider
Wed Sep 20, 2017 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA to Traditional IRA for 2016
Replies: 4
Views: 392

Re: SEP IRA to Traditional IRA for 2016

No, it is not generally possible to change SEP IRA contributions after the fact to traditional IRA contributions. A custodian might consider it, if contacted contemporaneously to the contribution when described as an unintentional good faith mistake. Which is clearly not true in this case. Could you...
by Spirit Rider
Wed Sep 20, 2017 8:28 pm
Forum: Personal Consumer Issues
Topic: Getting (young) kids interested in coding
Replies: 81
Views: 4516

Re: Getting (young) kids interested in coding

I find this whole movement towards promoting "coding skills" in children as totally misdirected. The last thing the IT world needs is more coders who can't think their way out of a wet paper bag. Personally, I find 75% - 80% of modern software developers as next to useless. They have non-existent cr...
by Spirit Rider
Wed Sep 20, 2017 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: solo 401k, husband and wife LLC
Replies: 20
Views: 679

Re: solo 401k, husband and wife LLC

another question..reading about rolling over SEP iras to 401k then back door Roth IRA. Is this only advisable to higher income situations or is this worthwhile with anyone currently holding a SEP? Very confused now with what to do with my current SEP, actually SEPS as my wife has same as me. Would ...
by Spirit Rider
Wed Sep 20, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: solo 401k, husband and wife LLC
Replies: 20
Views: 679

Re: solo 401k, husband and wife LLC

wow..thanks for that. So he was wrong in saying I could set up a solo 401k next year then? I told him I currently had a SEP with Vanguard. So I would have to change my current SEP IRA to another designation...and since Vanguard can't do that, I would first have to transfer to another institution ju...
by Spirit Rider
Wed Sep 20, 2017 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Self-employed retirement accounts
Replies: 1
Views: 170

Re: Self-employed retirement accounts

In all cases her best choice would be to use a one-participant 401k which must be adopted no later than 12/31. The employee deferral can be up to 100% of compensation subject to the 2017 employee deferral limit of $18K per employee across all employer plans. Her 2017 one-participant 401k employee de...
by Spirit Rider
Wed Sep 20, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: solo 401k, husband and wife LLC
Replies: 20
Views: 679

Re: solo 401k, husband and wife LLC

It's a regular SEP plan...and a quick google search shows that the Vanguard rep is wrong. You can contribute to both the same year. Not sure why he said I can't have more than 1 active plan a year. I questioned him and he repeated a few times. The Vanguard rep was not wrong, they just did not give ...
by Spirit Rider
Wed Sep 20, 2017 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: Which 401k plan is better? This is for a small dental office
Replies: 12
Views: 837

Re: Which 401k plan is better? This is for a small dental office

I have the American Dental Association endorsed AXA Equitable plan. I believe they charge 25 per person to set up the plan, 3 dollars a quarter per participant and then assets under management fees. I use their S & P 500 plan which has (I believe) a .87 percent expense ratio. . This is a horrible p...
by Spirit Rider
Wed Sep 20, 2017 11:43 am
Forum: Investing - Help with Personal Investments
Topic: Which 401k plan is better? This is for a small dental office
Replies: 12
Views: 837

Re: Which 401k plan is better? This is for a small dental office

Look into a SIMPLE IRA plan instead. Cost the company nothing and it can be self directed...meaning employees choose their own investments. Any SIMPLE IRA plans I have seen have administrative costs. They maybe lower than a 401k, Vanguard charges $25/employee/fund/year and Fidlelity $25/employee/ye...
by Spirit Rider
Tue Sep 19, 2017 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?
Replies: 21
Views: 1878

Re: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?

Nonprescription Drugs and Medicines Except for insulin, you can't include in medical expenses amounts you pay for a drug that isn't prescribed . Example . Your doctor recommends that you take aspirin. Because aspirin is a drug that doesn't require a physician's prescription, you can't include its c...
by Spirit Rider
Tue Sep 19, 2017 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: Tracking HSA investment income/cost basis for CA state taxes
Replies: 10
Views: 799

Re: Tracking HSA investment income/cost basis for CA state taxes

Unfortunately, HSAs are such a small piece of the investment pie. Even with size of CA, I really don't think you are going to find any HSA custodian giving you what you want. They are going to do the easy lifting for the vast majority of the country and are not going to spend the time and money to t...
by Spirit Rider
Tue Sep 19, 2017 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?
Replies: 21
Views: 1878

Re: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?

Actually, there is no difference between Pub 502 and Pub 969. They both are really saying the same thing. Pub 502, just uses imprecise language, especially the example which is misleading. The fact that aspirin doesn't require a prescription for over the counter sales has no bearing on the fact that...
by Spirit Rider
Mon Sep 18, 2017 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?
Replies: 21
Views: 1878

Re: Use HSA for previously incurred medical expenses, and full-year HSA contribution limits?

Where do I find out if Non Prescription health-related purchases fall as HSA qualified medical expenses (say staff like fish-oil, vitamin D, multivitamins, melatonin, magnesium...) WHEN recommended by the physician? This was changed by Obamacare. From IRS Publication 502: Nonprescription Drugs and ...
by Spirit Rider
Mon Sep 18, 2017 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: *New question* Worth it to go into 403(b) from TIRA/SIMPLE?
Replies: 7
Views: 303

Re: Worth it to go into 403(b) from TIRA/SIMPLE?

You might want to seriously investigate how you might generate some self-employment income. This will allow you to legitimately adopt a one-participant 401k plan that accepts rollovers (not Vanguard). Then you can rollover all pre-tax (traditional ,SEP, SIMPLE) IRAs to the 401k. Do you have any skil...
by Spirit Rider
Sun Sep 17, 2017 11:21 am
Forum: Personal Finance (Not Investing)
Topic: How to add spouse to Fidelity solo 401K?
Replies: 2
Views: 223

Re: How to add spouse to Fidelity solo 401K?

You could just call them. I have always found them to be very helpful. All you should need to do is to download a New Fidelity Account®—Retirement Plan Account Then under 1. Retirement Plan Information, Add an Account to an Existing Plan. Select Add spouse or an additional owner to an existing SE 40...
by Spirit Rider
Sat Sep 16, 2017 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Access to 401k at age 55
Replies: 12
Views: 1305

Re: Access to 401k at age 55

If you are >= age 59 1/2 with a 401k plan with restrictive distribution options. You can still rollover the plan to an IRA. Then you can have unrestricted distributions. However, if you are >= age 55, but < 59 1/2 with a 401k plan with restrictive distribution options. You are kind of stuck, because...
by Spirit Rider
Sat Sep 16, 2017 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Mother-In-Law dying, Wife wants to buy a Porsche
Replies: 51
Views: 4937

Re: Mother-In-Law dying, Wife wants to buy a Porsche

Being my usual contrarian self, I have some observations: The people calling her a child, immature, etc... are clearly projecting. Maybe they might want to look in the mirror. To the OP, an inheritance is not marital property. She does not need your permission. It is her money, not ours and certainl...
by Spirit Rider
Fri Sep 15, 2017 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Deceased Mother medical bill
Replies: 42
Views: 5054

Re: Deceased Mother medical bill

If there were accounts with no beneficiaries or where the estate was the beneficiary, then those assets would be estate assets that should be used to pay her debts. Any life insurance policies, retirement accounts, and other accounts with named beneficiaries, ceased to be her assets upon death . The...
by Spirit Rider
Fri Sep 15, 2017 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Deceased Mother medical bill
Replies: 42
Views: 5054

Re: Deceased Mother medical bill

The Supreme Court ruled several years ago that inherited retirement accounts do not receive federal bankruptcy protection. Now this was narrow in scope and only applies to those circumstances, but SCOTUS rulings have wide reach for precedence setting. States can provide additional asset protection, ...
by Spirit Rider
Fri Sep 15, 2017 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: HSA over-contrib and test failure on last month rule
Replies: 3
Views: 318

Re: HSA over-contrib and test failure on last month rule

That's correct. You have until April 15 next year to remove the excess contribution plus earnings. You have until the tax filing deadline to make contributions, but you actually have until the tax deadline including extensions to remove the excess contributions plus earnings. However, the sooner yo...
by Spirit Rider
Thu Sep 14, 2017 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Timing
Replies: 9
Views: 902

Re: HSA Timing

Unless the employer has a limitation it should be possible. Just divide the yearly contribution limit by the number of payroll periods and round up. I did that when I became eligible one year on 9/1
by Spirit Rider
Thu Sep 14, 2017 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up a small inheritance for a disabled person
Replies: 2
Views: 363

Re: Setting up a small inheritance for a disabled person

There may be a better option for these circumstances than a SNT if the answer to these questions are yes. The individual is certified as disabled. The individual became disabled prior to age 26. The individual has or can have a legal guardian/power of attorney.* There is a new option for the disable...
by Spirit Rider
Thu Sep 14, 2017 7:37 pm
Forum: Investing - Help with Personal Investments
Topic: Roll pre age 55 401k into new 401k and quit before 59
Replies: 3
Views: 324

Re: Roll pre age 55 401k into new 401k and quit before 59

Yes, assuming the new 401k plan accepts incoming rollovers. The entire assets of a 401k when separation occurs after age 55, gain an exception the early distribution penalty. Distributions are still subject to the rules of the plan. The source of those assets are not relevant. You can even rollover ...
by Spirit Rider
Thu Sep 14, 2017 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Timing
Replies: 9
Views: 902

Re: HSA Timing

You can not open and fund an HSA until you are eligible. You are not an HSA eligible individual until you have an HSA qualifying HDHP. You want to wait to make the HSA contributions by payroll deduction anyways. HSA contributions by payroll deduction are pre-tax for federal, state except (AL, CA, an...
by Spirit Rider
Tue Sep 12, 2017 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Why doesn't my Vanguard 403(b) have a total stock index?
Replies: 9
Views: 674

Re: Why doesn't my Vanguard 403(b) have a total stock index?

One reason is that many participants will want to have one of each of domestic stock class. I saw this at a previous employer twenty years ago. In one case we had Fidelity Magellan and Contrafund, S&P 500 index fund and Ext. Market Index fund as domestic stock funds. The most common fund allocation ...
by Spirit Rider
Mon Sep 11, 2017 11:43 pm
Forum: Personal Finance (Not Investing)
Topic: Question Re: Max 401K Contribution
Replies: 28
Views: 1994

Re: Question Re: Max 401K Contribution

Well, if you are self-employed which you haven't clarified, your CPA is not correct I answered that in my first post. I have W2 as primary income in addition to 1099 income. Some corporations will still issue a Form 1099-MISC for a single person S-Corp even though it is not required by the IRS. The...
by Spirit Rider
Mon Sep 11, 2017 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: HSA medical payments and debit card
Replies: 6
Views: 636

Re: HSA medical payments and debit card

Once, my HSA card was rejected because there was one non-HSA item in the stuff I was buying. I thought that was pretty neat. Are you sure this was an HSA debit card and not an FSA debit card. There is no IRS requirement to verify expenditures on an HSA debit card or by any other means. I have most ...
by Spirit Rider
Mon Sep 11, 2017 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Question Re: Max 401K Contribution
Replies: 28
Views: 1994

Re: Question Re: Max 401K Contribution

I contacted my CPA and here's what she had to say: You cannot contribute any additional employee 401k contribution, since you already reach the max. Employer portion, I guess no one would know. If you don't have expense related to your consulting 1099, you can contribute 15k, 25% of net consulting ...
by Spirit Rider
Mon Sep 11, 2017 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401K advice
Replies: 6
Views: 696

Re: Solo 401K advice

Thanks for clarifying that. I have a solo 401k and only use it for me so haven't delved into some of the finer points. I will say the computation of what you can contribute isn't easy. One year I ran the calculations based on a web site formula and then compared that to what turbo tax computed and ...
by Spirit Rider
Mon Sep 11, 2017 9:04 am
Forum: Investing - Help with Personal Investments
Topic: Question: 2016 Roth IRA Contribution
Replies: 1
Views: 218

Re: Question: 2016 Roth IRA Contribution

Well do nothing is not exactly the correct whole answer. You will have to file a 2017 Form 5329 to allocate the excess contribution balance to a 2017 contribution. You did not need to pay the 6% excise tax. You had/have until the extended filing date 10/16/17 to recharacterize the Roth IRA contribut...
by Spirit Rider
Mon Sep 11, 2017 3:11 am
Forum: Personal Finance (Not Investing)
Topic: Can spouse's LLC deduct JOINT health Insur premiums as business expense?
Replies: 7
Views: 708

Re: Can spouse's LLC deduct JOINT health Insur premiums as business expense?

What a crazy policy: Never equate tax policy to sanity. If both have jobs which don't have healthcare, it's not deductible. In this case it is deductible as a Schedule A medical expense subject to the 10% floor. If one happens to be self employed, it is deductible (but not as a business expense). T...
by Spirit Rider
Mon Sep 11, 2017 3:03 am
Forum: Personal Finance (Not Investing)
Topic: HSA investment drawdown methods
Replies: 8
Views: 681

Re: HSA investment drawdown methods

Since it is a tax advantaged account, except for state tax issues in AL, CA, or NJ. Like an IRA it does not matter how you withdraw funds.
by Spirit Rider
Mon Sep 11, 2017 2:58 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401K advice
Replies: 6
Views: 696

Re: Solo 401K advice

1- Can both of us ( my wife and I open up one business and contribute $18K per person plus $25% of employer contribution ) if business income is only $1000 per year? No. First I don't think a family member can contribute to a solo 401k. It is supposed to be for one employee . Second you can't have ...