Search found 8096 matches

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: 8
Views: 188

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: 2007

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: 9
Views: 1038

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: 530

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: 530

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: 530

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: 287

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: 670

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: 670

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: 8
Views: 728

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: 8
Views: 728

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: 20
Views: 542

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: 423

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: 122

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: 596

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: 461

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: 423

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: 3525

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: 605

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: 734

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: 1981

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: 734

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: 1502

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: 13
Views: 511

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: 13
Views: 511

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: 13
Views: 511

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: 769

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: 769

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: 1860

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: 91
Views: 10753

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 ...
by Spirit Rider
Fri Jul 13, 2018 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: New to HSA with Fidelity
Replies: 13
Views: 769

Re: New to HSA with Fidelity

Correction* It's not an FSA that I have, it's a h ealthcare r eimbursement a ccount (YSA)? If you mean an HRA, then it has the same effect on HSA eligibility as the equivalent FSA. A general purpose HRA makes you ineligible to make HSA contributions. However, a limited purpose HRA (dental/vision), ...
by Spirit Rider
Fri Jul 13, 2018 2:21 pm
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 91
Views: 10753

Re: Saving 20% of paycheck isn't enough

Just Ignore it. Most people are laid off before 50 if not earlier and never get back to good jobs. Plan accordingly. Sorry you feel that way David. While he may have an overly pessimistic view. His larger point is valid. Especially in some fields, if you are planing to retire 60+, it would be wise ...
by Spirit Rider
Fri Jul 13, 2018 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes - Sep IRA, Solo 401 K, TSP
Replies: 13
Views: 511

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

Short answer. Yes, she can participate in either a SEP IRA or one-participant 401k as long as you don't have/adopt employee eligibility restrictions preventing it.
by Spirit Rider
Fri Jul 13, 2018 10:06 am
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 91
Views: 10753

Re: Saving 20% of paycheck isn't enough

The average US household makes approximate 59k. 15% is the rule of thumb. 40 years of saving 15% (age 25-65) is close to 1.8m (assuming 7% CAGR). That's $72k a year at 4% SWR. This is very simplistic and not covering inflation and other things of course admittedly, but it is enough to illustrate th...
by Spirit Rider
Fri Jul 13, 2018 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Taxes - Sep IRA, Solo 401 K, TSP
Replies: 13
Views: 511

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

Up to now, I have maxed the TSP contribution and placed the remainder in the SEP IRA. The TSP contributions does not affect your annual addition limit (2018 = $55K) for either a SEP IRA or a one-participant 401k plan. Questions: 1) Should I start doing a backdoor roth and if so what do I need to do...
by Spirit Rider
Thu Jul 12, 2018 10:04 pm
Forum: Investing - Help with Personal Investments
Topic: New to HSA with Fidelity
Replies: 13
Views: 769

Re: New to HSA with Fidelity

Enrolling in a general purpose FSA will make you ineligible for HSA contributions. You can enroll in a limited purpose (dental/vision) FSA and/or post-deductible FSA. For the last few years an employer can choose whether to offer the traditional 3/15 FSA grace period or an up to $500 rollover, but n...
by Spirit Rider
Thu Jul 12, 2018 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Transferring Money from LLC to Personal Bank Account
Replies: 5
Views: 387

Re: Transferring Money from LLC to Personal Bank Account

You need to indicate the tax structure of the LLC. If is it a single member LLC it is a treated as a disregarded entity by the IRS. It is his money, he can transfer it any way he chooses. As noted, it is slightly more involved if it is an S-Corp, but there should be no tax issues. An S-Corp is a pas...
by Spirit Rider
Thu Jul 12, 2018 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Question for pre-ACA Early Retirees and pre-ACA solo folks
Replies: 33
Views: 1860

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 prev...
by Spirit Rider
Thu Jul 12, 2018 4:33 pm
Forum: Personal Consumer Issues
Topic: Tipping at non sit down places
Replies: 94
Views: 7791

Re: Tipping at non sit down places

Just as some choose not to follow social norms by choosing not to tip when tips are expected, some may choose to tip where that is not normally expected. However, both of these cases are quite different from cases where one chooses to follow the existing social norms about tipping. The whole basis ...
by Spirit Rider
Thu Jul 12, 2018 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare [Can I contribute to a Health Savings Account?]
Replies: 27
Views: 2372

Re: Medicare [Can I contribute to a Health Savings Account?]

However, if Medicare backs up 6 months (from May 1, 2019) for Part A then does it mean that I am ineligible to make a HSA contribution in Nov of 2018? Are these two month's in 2018 considered excess HSA contribution? I therefore cannot (or should not) make any HSA contributions for tax year 2019 (m...
by Spirit Rider
Thu Jul 12, 2018 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Credit score after becoming debt free?
Replies: 44
Views: 2898

Re: Credit score after becoming debt free?

Why would you choose to go into debt again? To buy a house in the event I do not have enough readily available cash to pay for it without incurring tax penalties. So you worked hard and used up your source of readily available cash to become totally debt free and are very proud of it. And now you w...
by Spirit Rider
Wed Jul 11, 2018 11:52 pm
Forum: Personal Finance (Not Investing)
Topic: Keeping a checkbook register
Replies: 122
Views: 9197

Re: Keeping a checkbook

I am shocked at how many people have eliminated checks from their lives and yet continue to write a check for property taxes. My county has a fee to pay online :annoyed but no fee to pay by check. I just use my bank's billpay, who fires off a check twice a year on the date I specify. My tax parcel ...
by Spirit Rider
Wed Jul 11, 2018 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Credit score after becoming debt free?
Replies: 44
Views: 2898

Re: Credit score after becoming debt free?

The impact of no mortgage or installment loans will vary with age of your credit file, oldest and average age of revolving credit lines. In other words, no mortgage or installment loans in your 20s or 30s will have a larger impact than if you are in your 60s or 70s. If the latter it will have minima...
by Spirit Rider
Wed Jul 11, 2018 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: kiddie tax rules for 2018
Replies: 4
Views: 1253

Re: kiddie tax rules for 2018

That example had $2000 in ordinary dividends. If all you had were qualified dividends and LTCG, they would be taxed at the relevant capital gains tax rate. There is no difference in taxation regardless of whether filed with the parent's or a child's return. However, you can only file on the parent's...
by Spirit Rider
Wed Jul 11, 2018 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Personal 529 inherited by sons - are they taxable?
Replies: 16
Views: 1443

Re: Personal 529 inherited by sons - are they taxable?

Thanks! Since we are funding a 529 for each of my wife and I with the intention to move to our kids and gain a little extra state tax protection , is it advisable to move amounts each year to the new beneficiaries (our kids) up to the annual exclusion to make it simple? I'm not using any savings bo...
by Spirit Rider
Wed Jul 11, 2018 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: How to plan for health insurance at a young age?
Replies: 75
Views: 2633

Re: How to plan for health insurance at a young age?

Only thing in healthcare that is known is it is going to go thru changes in the future. If you are single and keep your magi under 40000, you can get affordable healthcare from the ACA. 65000 and under for a married couple will do the same. To do this you need to live a frugal lifestyle, have no mo...
by Spirit Rider
Wed Jul 11, 2018 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Personal 529 inherited by sons - are they taxable?
Replies: 16
Views: 1443

Re: Personal 529 inherited by sons - are they taxable?

Thanks! Since we are funding a 529 for each of my wife and I with the intention to move to our kids and gain a little extra state tax protection , is it advisable to move amounts each year to the new beneficiaries (our kids) up to the annual exclusion to make it simple? I'm not using any savings bo...
by Spirit Rider
Wed Jul 11, 2018 9:40 am
Forum: Investing - Theory, News & General
Topic: true-up and $54k 401k limit
Replies: 5
Views: 691

Re: true-up and $54k 401k limit

" Contributions count in the year they are made , so if your employer is (intentionally or unintentionally) late and contributes in year X+1, it counts for that year's limits." The above blanket statement on that link is false. Reference IRS Publication 560 page 15. Employer matches for the last pay...
by Spirit Rider
Wed Jul 11, 2018 9:05 am
Forum: Personal Consumer Issues
Topic: [Small, Portable, and Ductless Air Conditioners]
Replies: 54
Views: 2732

Re: [Small, Portable, and Ductless Air Conditioners]

I don't think I have ever heard of a ground source retrofit where there wasn't already existing ductwork. The only one I am familiar with was as suggested by Alf 101: This was essentially drilling a well with a sufficient flow rate. They had major hassles getting federal and state regulatory approva...
by Spirit Rider
Wed Jul 11, 2018 8:47 am
Forum: Investing - Help with Personal Investments
Topic: Can I break up a 401k->401k rollover into multiple transactions?
Replies: 11
Views: 698

Re: Can I break up a 401k->401k rollover into multiple transactions?

It is rare for qualified plan rollovers to be done electronically unless the qualified plan and IRA are at the same custodian/administrator.