Search found 6578 matches

by Spirit Rider
Tue Dec 12, 2017 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: 403b: has required employee contribution, and an optional %; both are matched; what counts toward the $18,000 limit?
Replies: 4
Views: 435

Re: 403b: has required employee contribution, and an optional %; both are matched; what counts toward the $18,000 limit?

The key point here is that only "elective" deferrals are subject to the 402g limit. Mandatory employee contributions are not considered elective deferrals. I don't have a cite handy. You might try searching under 401a plans. Most mandatory employee contributions happen under such plans. In fact, I h...
by Spirit Rider
Tue Dec 12, 2017 12:09 pm
Forum: Investing - Help with Personal Investments
Topic: ? On Maxing out solo 401k with 403b for 2017
Replies: 10
Views: 682

Re: ? On Maxing out solo 401k with 403b for 2017

Anywhere you see Annuity Contract, you can substitute Custodial Account. 26 U.S. Code § 403 - Taxation of employee annuities, (a) Taxability of beneficiary under a qualified annuity plan, (7) Custodial accounts for regulated investment company stock. Amounts paid treated as contributions For purpose...
by Spirit Rider
Tue Dec 12, 2017 12:28 am
Forum: Investing - Help with Personal Investments
Topic: 1099 income - enough to open a solo 401k?
Replies: 4
Views: 264

Re: 1099 income - enough to open a solo 401k?

There is actual IRS guidance that you are obligated to take legitimate business expenses. However, there are many sections of the tax code where there is room for interpretation. It is always better to have no taxes on the income and make taxable investments than it is to pay self-employment taxes a...
by Spirit Rider
Mon Dec 11, 2017 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Year end review with less nerdy spouse
Replies: 46
Views: 3162

Re: Year end review with less nerdy spouse

Do you run through this PPT on a computer or print out two copies and review them if a relaxed manner with some distance.

Then ask yourself which one appears to be lecturing and which one is more a collaboration.
by Spirit Rider
Mon Dec 11, 2017 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: ? On Maxing out solo 401k with 403b for 2017
Replies: 10
Views: 682

Re: ? On Maxing out solo 401k with 403b for 2017

Not wanting to disagree with a Fidelity CSR, but they seem to be in direct contradiction with IRS Publications and regulations. I would call again and ask for a retirement plan specialist (not a tier 1 CSR) and specifically direct them to this reference in IRS Publication 571 and IRS regulations in ...
by Spirit Rider
Mon Dec 11, 2017 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: Suggestions for setting up 401K retirement plans for medical practice
Replies: 13
Views: 711

Re: Suggestions for setting up 401K retirement plans for medical practice

I was referring to the fact that physicians tend to be in higher marginal tax brackets. In those brackets it is usually better have pre-tax contributions. Any 401k participant has two limits whether they can reach them or not. For 2018 they have an employee deferral limit of $18.5K. Employee deferra...
by Spirit Rider
Mon Dec 11, 2017 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Suggestions for setting up 401K retirement plans for medical practice
Replies: 13
Views: 711

Re: Suggestions for setting up 401K retirement plans for medical practice

Thank you James for the explanation. What about after-tax contribution for the purpose of mega-Roth back door conversion? Do you know any of these companies can handle that? After-tax contributions are subject to Actual Contribution Percentage (ACP) testing. With the typical census of a medical pra...
by Spirit Rider
Sun Dec 10, 2017 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Converting Part of 401K to IRA and then to Roth?
Replies: 6
Views: 342

Re: Converting Part of 401K to IRA and then to Roth?

IRS regulations allow, but do not require distribution options. Partial withdrawal is purely a function of plan rules.

For many plans it is all or nothing. The only way to know is ask the plan.
by Spirit Rider
Sat Dec 09, 2017 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Lost job, thinking about insurance, COBRA
Replies: 2
Views: 441

Re: Lost job, thinking about insurance, COBRA

You have longer than 60 days to wait to start COBRA coverage retroactively: The clock does not start ticking until you receive the COBRA notice/package (typically 10 -14 days). You have 60 days from that receipt to elect COBRA coverage You have 45 days from the election to pay the initial premiums. ...
by Spirit Rider
Sat Dec 09, 2017 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: Does Vanguard automatically stop after tax contributions when I hit the total 53K limit?
Replies: 2
Views: 357

Re: Does Vanguard automatically stop after tax contributions when I hit the total 53K limit?

The annual addition limit for 2017 = $54K, not $53K. This limit only applies to contributions, earnings and/or rollovers are not included.

It should be the employer and/or the plan who has the responsibility of enforcing the limit not the custodian.

I see marcopolo beat me to it.
by Spirit Rider
Sat Dec 09, 2017 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Spousal IRA - can an existing rollover IRA be used?
Replies: 10
Views: 364

Re: Spousal IRA - can an existing rollover IRA be used?

Co-mingling funds in a rollover IRA do not affect the unlimited federal bankruptcy protection of the rolled over assets and their earnings. It just makes it a little harder to identify them, that is all. Other IRA assets and their earnings receive up to $1M inflation adjusted from 2005 (currently = ...
by Spirit Rider
Sat Dec 09, 2017 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: Advice/suggestions for wife's new company
Replies: 13
Views: 1040

Re: Advice/suggestions for wife's new company

Would Vanguard be able to set that up for the company or is there a better option to use? Your knowledge and willingness to share is much appreciated!! Vanguard does offer their Individual 401k. However, I do not recommend it in this case for three reasons: They do not offer the lower cost Admiral ...
by Spirit Rider
Sat Dec 09, 2017 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Partial year after-tax HSA contibutions
Replies: 2
Views: 124

Re: Partial year after-tax HSA contibutions

Putting it another way your contribution limit is $4,400 * 10 / 12 = $3,667. The additional amount you can contribute by direct contribution would be $3,667 - the amount you already contributed.
by Spirit Rider
Sat Dec 09, 2017 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA for Minors, can I invest without a 1099?
Replies: 8
Views: 635

Re: Roth IRA for Minors, can I invest without a 1099?

Do you have a good resource about the basics of household help? i'd like to support my occasional family member coming and doing yard work properly. (also for my kids doing stuff elsewhere).... IRS Publication 926, Household Employer's Tax Guide I will repeat the basics. You only need to: File a W-...
by Spirit Rider
Sat Dec 09, 2017 1:17 pm
Forum: Personal Consumer Issues
Topic: I am buying a car: Most/Least Reliable Makes?
Replies: 64
Views: 3545

Re: I am buying a car: Most/Least Reliable Makes?

The cost of an unrealiable car is not in direct costs but in inconvenience and corollary damage in time spent, opportunities missed, safety (not of the car but being stuck in a road at -20F with a car that does not run), and so on. If it were really true that one could "buy" reliability it would be...
by Spirit Rider
Sat Dec 09, 2017 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: Advice/suggestions for wife's new company
Replies: 13
Views: 1040

Re: Advice/suggestions for wife's new company

I guess I am still slightly confused about the one-participant 401k plan. Does this mean the company opens an account and makes all contributions for each partner/owner? If so, does the number need to be the same across the board? Also, would you recommend this over other options? I will have more ...
by Spirit Rider
Sat Dec 09, 2017 10:42 am
Forum: Personal Consumer Issues
Topic: I am buying a car: Most/Least Reliable Makes?
Replies: 64
Views: 3545

Re: I am buying a car: Most/Least Reliable Makes?

Consumer Reports seems biased. I trust Bogleheads more! :beer I dearly love my fellow Bogeheads, but unbiased they are not. It always amazes me that Bogleheads agonize over expense ratios, return projections, and SS break even analysis. Yet they make vehicle decisions based on anecdotal information...
by Spirit Rider
Sat Dec 09, 2017 10:20 am
Forum: Personal Consumer Issues
Topic: Fuel Additives for 2017 Toyota Camry
Replies: 42
Views: 1874

Re: Fuel Additives for 2017 Toyota Camry

Carbon build-up is primarily a problem for Direct Injection (DI) engines, and the reason it is a problem is because no fuel (and therefore no detergents) ever pass through the intake tract. Using top tier fuel and adding a detergent additive with every tank won't change this one iota. The only prac...
by Spirit Rider
Sat Dec 09, 2017 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k w/ Change in Type of Work
Replies: 3
Views: 262

Re: Solo 401k w/ Change in Type of Work

She does not need nor does the IRS want her to get another EIN. If she is using the same business name, e.g. her name, she does not need to change anything. If she is using a different business name, she can simply add the "affiliated employer" to Fidleity's Self-Employed 401k. This is done by amend...
by Spirit Rider
Fri Dec 08, 2017 11:14 pm
Forum: Personal Finance (Not Investing)
Topic: Over-contributed to SEP - process?
Replies: 7
Views: 349

Re: Over-contributed to SEP - process?

To make this even more confusing, I found this Q&A in the IRS SEP IRA FAQs. Note: The "correct" link in the last sentence goes to the the same page you linked. What are the consequences to employees if I make excess contributions? Excess contributions are included in employees' gross income. Employe...
by Spirit Rider
Fri Dec 08, 2017 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Over-contributed to SEP - process?
Replies: 7
Views: 349

Re: Over-contributed to SEP - process?

I have never had to do this myself, but that seems to agree with the PUB 560 instructions. This is also consistent with the way you handle IRA/HSA excess carryovers on Form 5329 although in that case the excise tax is 6%.

It would be good if Alan S., ERISA Stone or KSActuary could comment.
by Spirit Rider
Fri Dec 08, 2017 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Over-contributed to SEP - process?
Replies: 7
Views: 349

Re: Over-contributed to SEP - process?

You would only have been able to use that corrective action to return the excess contribution and earnings until the tax filing deadline including extensions. That would have been in October 2016. By not doing so you will have to pay excise taxes for one or more years. See Carryover of Excess SEP Co...
by Spirit Rider
Fri Dec 08, 2017 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k + spouse
Replies: 1
Views: 180

Re: Solo 401k + spouse

It does not matter if most or even all of the QJV's income is reported in just one spouse's SSN. It is a Qualified Joint Venture. What does matter is that both spouses meet the material participation standards. To elect QJV treatment, you each simply file a Schedule C allocating the total income/exp...
by Spirit Rider
Fri Dec 08, 2017 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Inherited IRA
Replies: 14
Views: 978

Re: Help with Inherited IRA

nesdog wrote:
Fri Dec 08, 2017 5:19 pm
Both of the accounts are teacher related and pre-tax so we cannot take advantage of the Roth.
Note: You can not do a Roth conversion of an Inherited traditional IRA, but you can due a direct rollover from an Inherited traditional employer plan (401k, 403b, 457b) to a Roth IRA.
by Spirit Rider
Fri Dec 08, 2017 5:24 pm
Forum: Personal Consumer Issues
Topic: Fuel Additives for 2017 Toyota Camry
Replies: 42
Views: 1874

Re: Fuel Additives for 2017 Toyota Camry

Actual engine tear-downs have shown that if you don't use top-tier gasoline, you will get varnish and carbon build-up. Varnish and carbon build-up is cumulative and while not as good as never letting the build-up occur with top-tier gasoline, fuel system treatments can remove a substantial amount of...
by Spirit Rider
Thu Dec 07, 2017 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: C Corp owner participation in solo 401(k) when wholly-owned subsidiaries have W-2 employees
Replies: 3
Views: 274

Re: C Corp owner participation in solo 401(k) when wholly-owned subsidiaries have W-2 employees

Even though this is a control group. With no eligible employees nothing prevents you from adopting a one-participant 401k for 2017 before 12/31. You would have until the corporation's tax filing date including extensions to make employer contribution of up to 25% of your W-2 wages. Unfortunately, em...
by Spirit Rider
Thu Dec 07, 2017 11:02 am
Forum: Personal Finance (Not Investing)
Topic: HSA Contribution timing
Replies: 7
Views: 725

Re: HSA Contribution timing

Two very important points: If coverage begins on 1/7, make a direct contribution to the HSA account on that date. You most definitely do not need to wait until 2/1. You do not need to have the full amount of money in the HSA on the date of service. You can can fund at any future time and take distri...
by Spirit Rider
Thu Dec 07, 2017 10:55 am
Forum: Investing - Help with Personal Investments
Topic: Help with Inherited Roth, no will no beneficiary
Replies: 7
Views: 744

Re: Help with Inherited Roth, no will no beneficiary

I would not distribute the Roth assets to your daughter in a lump sum. While lifetime RMDs are not a possibility, the five-year rule is available. The executor should be able to do a direct rollover of the of the Roth IRA to an Inherited IRA for your daughter. This allows her to at least get tax fre...
by Spirit Rider
Thu Dec 07, 2017 12:08 am
Forum: Personal Finance (Not Investing)
Topic: HSA Contribution timing
Replies: 7
Views: 725

Re: HSA Contribution timing

Why do you think coverage begins on January 7th. That is not generally how employee benefit plans work. The plan year, HDHP coverage and HSA eligibility almost certainly begins on January 1st. You misunderstand 26 U.S. Code § 223. The pay period is only applicable to when the first contribution by p...
by Spirit Rider
Wed Dec 06, 2017 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Inherited Roth, no will no beneficiary
Replies: 7
Views: 744

Re: Help with Inherited Roth, no will no beneficiary

It is also the tax year of the contribution. So if the first contribution was on April 15, 2014 for the 2013 tax year, the Roth IRA is qualified on January 1, 2018.

Note: RMDs are not an option if there were no beneficiaries unless the decedent was married,
by Spirit Rider
Wed Dec 06, 2017 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Small Business Retirement Options
Replies: 17
Views: 1172

Re: Small Business Retirement Options

As I pointed out the minimum safe harbor employer non-elective contribution is 3%., but the minimum safe harbor employer match is 4%. This is 100% of the 1st 3% and 50% of the next 2% = 4% on the 1st 5%. Your experiences are an anomaly. After a dip during the great recession, recent studies have sho...
by Spirit Rider
Wed Dec 06, 2017 12:09 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Getting a bit more diversity
Replies: 3
Views: 308

Re: 401k Getting a bit more diversity

My thoughts in regards to the stock choices are to have 33% large cap, 33% small cap, 33% mid cap. Does this sound correct? Any help in getting a good mix with my stock/bond choices would be greatly appreciated. 80% VIIIX Vanguard Institutional Index Fund;Inst Plus 05% VSCIX Vanguard Mid-Cap Index ...
by Spirit Rider
Wed Dec 06, 2017 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Small Business Retirement Options
Replies: 17
Views: 1172

Re: Small Business Retirement Options

As pointed out by ERISA Stone, the safe harbor minimum non-elective contribution is 3%. Or the safe harbor minimum match is 100% of the 1st 3% of compensation and 50% of the next 2% of compensation. Assume the average NHCE match is 3%. If instead you pay a 5% non-elective contribution to facilitate ...
by Spirit Rider
Wed Dec 06, 2017 1:34 am
Forum: Investing - Theory, News & General
Topic: Choosing a 401k provider
Replies: 10
Views: 1131

Re: Choosing a 401k provider

Guideline's $96/year is per employee (min 5). There are plans < this per employee when you get to dozens of employees. They have received venture capital funding so maybe their low minimum plans are a loss leader to build a market. I have seen favorable reports a few months in. I haven't seen anythi...
by Spirit Rider
Tue Dec 05, 2017 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: Small Business Retirement Options
Replies: 17
Views: 1172

Re: Small Business Retirement Options

Is there a retirement plan that would allow us to apply a lower employer contribution rate to these employees vs. the partners You should investigate a 401k with a "New Comparability Method" of profit sharing. This will require a higher employer contribution rate than a standard safe harbor plan, b...
by Spirit Rider
Tue Dec 05, 2017 11:34 am
Forum: Investing - Theory, News & General
Topic: The "petro," a Venezuelan oil-backed cryptocurrency
Replies: 32
Views: 2247

Re: The "petro," a Venezuelan oil-backed cryptocurrency

This reminds me of what a startup I joined many years ago is doing. They are jumping this new blockchain craze. The are called, get this... Initial Coin Offerings (ICOs). I kid you not! I was one of the founders of this company. I will not say much about this company other than the company name shou...
by Spirit Rider
Tue Dec 05, 2017 11:00 am
Forum: Investing - Help with Personal Investments
Topic: HSA Question. Switching health plans
Replies: 3
Views: 313

Re: HSA Question. Switching health plans

The OP said the plan would be under her name, meaning it would be from her employer. Just make sure that you do not enroll/accept a general purpose FSA and/or HRA in conjunction with your free plan at work. If as most plans do, it allows reimbursement for for your spouse, she will be ineligible for ...
by Spirit Rider
Tue Dec 05, 2017 10:47 am
Forum: Investing - Help with Personal Investments
Topic: Medicare and retirement for high earner
Replies: 49
Views: 2351

Re: Medicare and retirement for high earner

I seriously question the value of these add-on insurance premiums other than the the Part B and Part D premiums with IRMAA and the Medicare Supplement . With "Original Medicare" (as opposed to Medicare Advantage) I believe some kind of supplement is justified that can cap out of pocket medical expe...
by Spirit Rider
Tue Dec 05, 2017 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Do I qualify for a TIRA full deduction if I open a sep IRA
Replies: 6
Views: 389

Re: Do I qualify for a TIRA full deduction if I open a sep IRA

$99K for the person who is an active participant in an employer retirement plan. $186K for their spouse if they are not an active participant in an employer retirement plan. In your circumstances, the deduction limits are $99K for you and $186K for your spouse. However, as I stated if you make your ...
by Spirit Rider
Tue Dec 05, 2017 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Medicare and retirement for high earner
Replies: 49
Views: 2351

Re: Medicare and retirement for high earner

I seriously question the value of these add-on insurance premiums other than the the Part B and Part D premiums with IRMAA.
by Spirit Rider
Tue Dec 05, 2017 12:20 am
Forum: Personal Finance (Not Investing)
Topic: Do I qualify for a TIRA full deduction if I open a sep IRA
Replies: 6
Views: 389

Re: Do I qualify for a TIRA full deduction if I open a sep IRA

Do I qualify for full deductions of both a sep and tira since my spouse does not work and income is under the 186K threshold A SEP IRA is not effected by your personal IRA. Your spouse can also have an IRA based on your salary. Yes, but the OP's traditional IRA deduction is limited if their IRA MAG...
by Spirit Rider
Mon Dec 04, 2017 11:34 pm
Forum: Investing - Help with Personal Investments
Topic: Ever seen a 401k with so few options?
Replies: 13
Views: 1005

Re: Ever seen a 401k with so few options?

It is a little sparse, but simpler is better for the vast majority of 401k participants. Too many funds cause analysis paralysis for the initiated. Many people believe that the TSP represents the ideal plan design. You really don't need more than basic core funds plus life cycle/target date funds. P...
by Spirit Rider
Mon Dec 04, 2017 5:29 pm
Forum: Personal Consumer Issues
Topic: Why is an EIN needed for i401k?
Replies: 4
Views: 307

Re: Why is an EIN needed for i401k?

Some one-participant 401k plan providers want you to have an EIN. The IRS really only needs an EIN for a one-participant 401k plan when you communicate/file a form with the IRS.The two most common circumstances that come to mind are; If you have an excess employer contribution and need to file Form ...
by Spirit Rider
Mon Dec 04, 2017 11:53 am
Forum: Investing - Help with Personal Investments
Topic: Who keeps more money out of 100k? Self-employed vs Employed?
Replies: 39
Views: 2773

Re: Who keeps more money out of 100k? Self-employed vs Employed?

As has been pointed out by other replies you premise is based on a false equivalency. No doctor or any other professional would ever agree to be an Independent Contractor at an equivalent rate of pay as a W-2 employee. For example, ER physicians who are ICs, typically receive a 25% - 50% (or more) p...
by Spirit Rider
Sun Dec 03, 2017 11:43 am
Forum: Investing - Help with Personal Investments
Topic: 401k in plan rollover vs. mega backdoor Roth
Replies: 15
Views: 957

Re: 401k in plan rollover vs. mega backdoor Roth

That was my conclusion as well. I did come across this Vanguard document which does a good job comparing the options for anyone else who might be considering this decision: http://www.vanguard.com/pdf/s707.pdf Having to take RMDs with the 401k route versus Roth IRA could be another factor in the de...
by Spirit Rider
Sun Dec 03, 2017 11:29 am
Forum: Personal Finance (Not Investing)
Topic: How do I convince my employees to invest more?
Replies: 92
Views: 5112

Re: How do I convince my employees to invest more?

You can contribute 25% of employee compensation without your employees contributing a dime. Where do you get that you can’t contribute more than 3%? Nothing is stopping you from opening a SEP Ira for your business. Except, here again the OP has a SIMPLE IRA plan, which must be the only employer ret...
by Spirit Rider
Sun Dec 03, 2017 1:32 am
Forum: Personal Finance (Not Investing)
Topic: How do I convince my employees to invest more?
Replies: 92
Views: 5112

Re: How do I convince my employees to invest more?

It might help if many of the people replying to this thread actually paid attention to the fact that the OP has a SIMPLE IRA plan. The employer match is 100% on up to 3% of compensation. It can not be higher, but It can be 1% or 2% for two out of any five years. It can be a 2% non-elective contribut...
by Spirit Rider
Sun Dec 03, 2017 12:57 am
Forum: Personal Finance (Not Investing)
Topic: Out of state S Corp for consulting?
Replies: 8
Views: 564

Re: Out of state S Corp for consulting?

I wouldn't go making any changes just yet. Wait for the final bill.

The Senate's pass-through deduction applies to sole proprietors, partnerships and S-Corps. However, this is actually less valuable for S-Corps. Their deduction is limited to 50% of W-2 wages.