Search found 8890 matches

by Spirit Rider
Mon Nov 19, 2018 11:54 am
Forum: Investing - Theory, News & General
Topic: Vanguard lowering Admiral level to $3,000?
Replies: 100
Views: 5210

Re: Vanguard lowering Admiral level to $3,000?

So does this mean that Vanguard Individual 401k plans will get access to Admiral Shares and lower expense ratios?
by Spirit Rider
Mon Nov 19, 2018 9:26 am
Forum: Investing - Theory, News & General
Topic: Vanguard lowering Admiral level to $3,000?
Replies: 100
Views: 5210

Re: Vanguard lowering Admiral level to $3,000?

I checked Vanguard just now. The minimum purchase on many Admiral Shares is $3,000 and the Investor Shares are closed.

It looks that like Fidelity did, they are consolidating classes, just at $3,000 minimum investment.

Competition is a good thing.
by Spirit Rider
Sun Nov 18, 2018 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: renamed business license requires new SE401(k)?
Replies: 2
Views: 200

Re: renamed business license requires new SE401(k)?

There is probably not a problem with the one-participant 401k if it is the same business with just a fictitious name change.

However, most mainstream one-participant 401k providers allow you to amend the adoption agreement to add affiliated companies to be certain.
by Spirit Rider
Sun Nov 18, 2018 8:12 pm
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 332
Views: 21398

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Thank you for this detail. Still a bit confusing, as Q/A-40 and Q/A-41 seem to be kind of contradicting each other if they are to be interpreted separately. I think you are over thinking this. Q&A 38 defines the establishment date, Q&40 allows subsequent HSAs to use the first establishment date and...
by Spirit Rider
Sun Nov 18, 2018 4:32 pm
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 332
Views: 21398

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

And if I am interpreting this rule incorrectly, would love to hear a different opinion. I think you are interpreting the rule incorrectly. If you incur medical expenses after opening an HSA account, then it does not matter when the account was closed, the expense was still incurred after opening th...
by Spirit Rider
Sun Nov 18, 2018 4:19 pm
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 332
Views: 21398

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Unfortunately my open enrollment for 2019 has already closed. I had elected to put $290 every 2 weeks into my Health Equity HSA. I can't change it. I have $2k remaining for 2018 and will fund the Fidelity HSA that way. I will transfer/close my Health Equity account at the beginning of 2020 and elec...
by Spirit Rider
Sun Nov 18, 2018 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity Self-Employed 401(k) and Prior Year Contributions
Replies: 3
Views: 295

Re: Fidelity Self-Employed 401(k) and Prior Year Contributions

Yes, you can make the maximum employer contribution for 2018 in 2019 and the maximum employer contribution for 2019 in 2019. See IRS Publication 560, Page 3, Table 1, Row 3, Qualified Plan: Defined Contribution Plan. Also, see Chapter 4. Qualified Plans, Page 15, When Contributions Are Considered Ma...
by Spirit Rider
Sun Nov 18, 2018 11:10 am
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 86
Views: 7616

Re: Retirement accounts and physician SCorps and Tax Reform

May be there’s still hope, they’ll be corrected prior to final draft. Most tax professionals do not believe there will be any significant change in the final regulations. Any of the identified problems will most likely have to be done in a technical correction from congress. For many reasons I thin...
by Spirit Rider
Sun Nov 18, 2018 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 86
Views: 7616

Re: Retirement accounts and physician SCorps and Tax Reform

May be there’s still hope, they’ll be corrected prior to final draft. Most tax professionals do not believe there will be any significant change in the final regulations. Any of the identified problems will most likely have to be done in a technical correction from congress. For many reasons I thin...
by Spirit Rider
Sun Nov 18, 2018 10:19 am
Forum: Investing - Theory, News & General
Topic: Side Hustle Newbie, Solo 401k Best Use Question
Replies: 5
Views: 514

Re: Side Hustle Newbie, Solo 401k Best Use Question

So what I'm taking away is: End of 2018, stick all my incomes into TurboTax (or something), and see what the max contribution amount is for Solo401k, and throw that in, and do the same thing at the end of 2019? Correct. Open the one-participant 401k plan and make the employee election by 12/31, but...
by Spirit Rider
Sun Nov 18, 2018 8:21 am
Forum: Investing - Help with Personal Investments
Topic: solo 401k worth it, if I can only put $3200 a year in it?
Replies: 18
Views: 1021

Re: solo 401k worth it, if I can only put $3200 a year in it?

I have one for a similar side hustle. To me it is worth it. Remember, that is $700 every year so the benefit will add up. Also, I don't like my W-2 401k options, so I plan to underfund it next year and putting more in the Solo 401k. Be aware the employer contribution can be limited to (net self-emp...
by Spirit Rider
Sun Nov 18, 2018 8:14 am
Forum: Investing - Help with Personal Investments
Topic: solo 401k worth it, if I can only put $3200 a year in it?
Replies: 18
Views: 1021

Re: solo 401k worth it, if I can only put $3200 a year in it?

Doesn't the employer side also save you 15.3 percent in SE taxes, so roughly another $100 invested tax-free? Only if you are an S-Corp. Employer contributions for self-employed individuals are not deducted on Schedule C and thus do not reduce business profit for Schedule SE. You still pay 15.3% SE ...
by Spirit Rider
Sun Nov 18, 2018 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity Self-Employed 401(k) and Prior Year Contributions
Replies: 3
Views: 295

Re: Fidelity Self-Employed 401(k) and Prior Year Contributions

Employer contributions are only recorded by Fidelity as in the calendar year they are made. You designate what tax year they are for when you claim the deduction on the appropriate tax return. Fidelity is actually doing you a favor. If you make excess prior year employer contributions from 1/1 until...
by Spirit Rider
Sat Nov 17, 2018 10:11 pm
Forum: Investing - Theory, News & General
Topic: Side Hustle Newbie, Solo 401k Best Use Question
Replies: 5
Views: 514

Re: Side Hustle Newbie, Solo 401k Best Use Question

Self-employed individuals have until the tax filing deadline (~4/15) including (~10/15) to make both employee elective contributions and employer contributions. However, you must adopt a one-participant 401k plan and make an employee elective election by 12/31. The maximum employee elective contribu...
by Spirit Rider
Sat Nov 17, 2018 9:21 am
Forum: Personal Consumer Issues
Topic: fuel for snowblower
Replies: 92
Views: 4636

Re: fuel for snowblower

You are assuming that everyone has a shed. Many people do not.
by Spirit Rider
Sat Nov 17, 2018 9:18 am
Forum: Investing - Help with Personal Investments
Topic: 529 Accounts - Nevada (Vanguard) or Utah (my529)
Replies: 6
Views: 553

Re: 529 Accounts - Nevada (Vanguard) or Utah (my529)

State tax deduction or not, why are you not looking a CA Scholar Share. They have one of the lowest ERs in 529 plans. Their U.S. Equity Index Fund is 0.08%
by Spirit Rider
Fri Nov 16, 2018 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 410(k) Employer Contributions?
Replies: 3
Views: 238

Re: Solo 410(k) Employer Contributions?

This is a question for a lawyer in your particular community property state. Not all community property states treat income the same.
by Spirit Rider
Fri Nov 16, 2018 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: Can I do a 2018 Roth conversion up until I file my 2018 taxes or 4/15/2019?
Replies: 4
Views: 405

Re: Can I do a 2018 Roth conversion up until I file my 2018 taxes or 4/15/2019?

IRA contributions up to the tax filing deadline are for that tax year.

Roth conversions are always for the tax year they occur in.
by Spirit Rider
Fri Nov 16, 2018 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 410(k) Employer Contributions?
Replies: 3
Views: 238

Re: Solo 410(k) Employer Contributions?

First question. Why do you think you need and/or benefit from an LLC. They more often than not are not necessary, do not provide the liability protection thought and can even be counter-productive. An LLC is a state chartered business entity and does not control tax status. A single member LLC is tr...
by Spirit Rider
Fri Nov 16, 2018 10:37 am
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 332
Views: 21398

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Now that we have Insurance through my spouse's small company, i want to open new Fido HSA on my spouse name and contribute to 2018. Question: Can we transfer old HSA account (on my name) money to this new Fido HSA account (my spouse name)? In all these years, it is family coverage. Like all other t...
by Spirit Rider
Fri Nov 16, 2018 10:32 am
Forum: Personal Consumer Issues
Topic: fuel for snowblower
Replies: 92
Views: 4636

Re: fuel for snowblower

You obviously have have never refilled a snowblower in the middle of a blizzard. Sure I have. In the garage. Never refill a hot unit. Never ever. Never refuel indoors. Not to mention it always seems to run out at the top of the driveway 100 yards from the garage. I am not pushing my honking Ariens ...
by Spirit Rider
Fri Nov 16, 2018 8:42 am
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 332
Views: 21398

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Vanguard, please follow suit I predict, its not likely to happen and if it does it will not be competitive with Fidelity. Vanguard's model is low costs for clients as a whole, not niche products. HSA account assets are a tiny fraction of IRA or taxable account assets. This policy is why they do not...
by Spirit Rider
Fri Nov 16, 2018 8:28 am
Forum: Personal Consumer Issues
Topic: fuel for snowblower
Replies: 92
Views: 4636

Re: fuel for snowblower

Tanks are sealed and vented and controlled to pass evaporative emissions requirements. Snow should never get into a tank. You obviously have have never refilled a snowblower in the middle of a blizzard. P.S. 8" of snow this morning. I cleared my 100 yard driveway no problem. The 22 year-old snowblo...
by Spirit Rider
Fri Nov 16, 2018 12:25 am
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 332
Views: 21398

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

For people in California, would FUAMX (Fidelity Intermediate Treasury Bond Index Fund) be state tax free? For 2017 99.93% of income was from U.S. Government Securities. Currently 99.53% of holdings are U.S. Government Securities. In this case U.S. Government Securities means no (Fannie Mae, Ginnie ...
by Spirit Rider
Fri Nov 16, 2018 12:05 am
Forum: Personal Finance (Not Investing)
Topic: Married HDHP; one HSA or two?
Replies: 3
Views: 479

Re: Married HDHP; one HSA or two?

scenario 1.) both of us continuing to contribute to our own HSAs through payroll deduction (not to exceed our family maximum) Not possible if you only have one family HDHP. Section 125 HSA contributions by payroll deduction can only be made by the HDHP named insured. scenario 2.) having only HSA in...
by Spirit Rider
Thu Nov 15, 2018 11:51 pm
Forum: Investing - Help with Personal Investments
Topic: Maxed out Self Employed 401K & HSA where else can I save
Replies: 9
Views: 686

Re: Maxed out Self Employed 401K & HSA where else can I save

Thank you for the response. I played with this while filing taxes last year ( 2017) on Turbo Tax, FICA tax makes it very inefficient way. Even lets say $18500 a year that means $2800 on Fica. I think IRA for my Wife might be better, Also there was mention of Backdoor Roth for myself does that mean ...
by Spirit Rider
Thu Nov 15, 2018 9:24 pm
Forum: Investing - Help with Personal Investments
Topic: Maxed out Self Employed 401K & HSA where else can I save
Replies: 9
Views: 686

Re: Maxed out Self Employed 401K & HSA where else can I save

If you set yourself up right, your wife would have 401k space too through your Company. When I was SE/S-Corp owner, I was 51% and wife was 49% owner. She ran my calendar and helped with stuff on the back office side so she could get a salary and contribute to a 401k through my Solo 401k. She was ot...
by Spirit Rider
Thu Nov 15, 2018 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare considerations for person with employer insurance
Replies: 15
Views: 812

Re: Medicare considerations for person with employer insurance

It's important to read the Medicare rules. If you are currently receiving health insurance as a retirement benefit (i.e., not actively working), then you must sign up for Medicare during your enrollment period. If you don't want to wade through government websites to start, you can read about it fr...
by Spirit Rider
Thu Nov 15, 2018 8:17 am
Forum: Personal Consumer Issues
Topic: fuel for snowblower
Replies: 92
Views: 4636

Re: fuel for snowblower

SIgh. Almost for certain American ethanol requirements 1). don't reduce end costs for consumers for gasoline 2). are not good for the environment on a life cycle basis (fertilizing food crops and then converting them to ethanol. Except, the use of ethanol in reformulated (oxygenated) gasoline is go...
by Spirit Rider
Thu Nov 15, 2018 7:55 am
Forum: Personal Finance (Not Investing)
Topic: rule of thumb for using HSA funds?
Replies: 40
Views: 3252

Re: rule of thumb for using HSA funds?

Sorry, I can't wrap my head around the "saving receipts" business. My wife opened HSA through her employer and contributed close to 6K this year.However, in Feb we came to know we are having a baby.Since the family deductible was 5000, we paid all the doctor visits,lab work,pregnancy related bills ...
by Spirit Rider
Thu Nov 15, 2018 7:33 am
Forum: Investing - Help with Personal Investments
Topic: Moving to company that allows Mega Backdoor Roth Conversion - Any prep needed?
Replies: 26
Views: 2036

Re: Moving to company that allows Mega Backdoor Roth Conversion - Any prep needed?

5) If you are an HCE, clawbacks can make things very...interesting. Could you elaborate on clawbacks? After-tax contributions are subject to Actual Contribution Percentage (ACP) anti-discrimination testing even in a Safe Harbor 401k plan. ACP testing compares the Average Contribution Rate (ACR) of ...
by Spirit Rider
Wed Nov 14, 2018 11:43 pm
Forum: Personal Finance (Not Investing)
Topic: Does it ever make sense to pay more tax intentionally?
Replies: 15
Views: 1627

Re: Does it ever make sense to pay more tax intentionally?

The IRS has longstanding guidance that Schedule C tax filers must take all legitimate business deductions they are entitled to. In fact they have a due diligence program for tax preparers and will sanction them with severe penalties for failure to do due diligence on their client's returns You can n...
by Spirit Rider
Wed Nov 14, 2018 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Cobra - Initial payments
Replies: 3
Views: 377

Re: Cobra - Initial payments

It is all or nothing. you have to pay all of the months to get coverage for December. COBRA allows you to delay and then get retroactive coverage, but you must pay for all of the retroactive coverage
by Spirit Rider
Wed Nov 14, 2018 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: new 401k plan, want to make it mega back door roth friendly
Replies: 10
Views: 1051

Re: new 401k plan, want to make it mega back door roth friendly

The relevant IRS regulation is 26 CFR 1.401(m)-2 - ACP test. My eyes glaze over trying to read and understand this, but I think employer contributions and employee after-tax contributions are combined. I am not aware of any online ACP testing resources. Small local TPAs may be your best bet. I'm no...
by Spirit Rider
Wed Nov 14, 2018 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: Should we open 1 or 2 HSAs?
Replies: 10
Views: 807

Re: Should we open 1 or 2 HSAs?

When I turn 65 and go on Medicare, she is allowed to stay on the employer HDHP until she turns 65 but with no employer HSA contribution. This will then be a self-only plan, she will still be an HSA eligible individual and can contribute to her HSA account up to the self-only limit + the $1000 catch...
by Spirit Rider
Wed Nov 14, 2018 11:14 am
Forum: Personal Finance (Not Investing)
Topic: rule of thumb for using HSA funds?
Replies: 40
Views: 3252

Re: rule of thumb for using HSA funds?

Personally, I don't find it realistic to save receipts for the 30+ years I would need to in order to maximize the HSA. You do realize you are required to save proof of service (bills, EOBs, etc..) and payment (receipts, financial records, etc..) For at least three years after the tax filing deadlin...
by Spirit Rider
Wed Nov 14, 2018 11:02 am
Forum: Investing - Help with Personal Investments
Topic: Oops! Edward Jones tops Vanguard in customer survey
Replies: 50
Views: 5143

Re: Oops! Edward Jones tops Vanguard in customer survey

Con men are always your best buddy while they are fleecing you. Why would these results suprise anyone. Especially, since the vast majority of EJ customers don't realize their underperformance or just how much they are paying for the hand holding/glad handing.
by Spirit Rider
Wed Nov 14, 2018 10:45 am
Forum: Personal Consumer Issues
Topic: fuel for snowblower
Replies: 92
Views: 4636

Re: fuel for snowblower

Ethanol fears are way overblown and mostly and urban legend. Ethanol is a problem in only a few cases: ... I 100% agree. I have an Arien's 20+ year old snowblower that has seen a lot of heavy use. I have a 100 yard driveway and New Hampshire winters. It has been 10 -12 years since most of the count...
by Spirit Rider
Wed Nov 14, 2018 10:26 am
Forum: Investing - Help with Personal Investments
Topic: Transfering from 401K yearly into trad IRA question
Replies: 18
Views: 831

Re: Transfering from 401K yearly into trad IRA question

Whether you can rollover to a previous employer's plan is up to them. With the notable exception of the TSP, it is less common for plans to allows this.
by Spirit Rider
Wed Nov 14, 2018 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Transfering from 401K yearly into trad IRA question
Replies: 18
Views: 831

Re: Transfering from 401K yearly into trad IRA question

Yes, separation always makes your 401k distributable. You can roll it over to another qualified plan or IRA. You can also leave it in the prior plan, but if the balance is < $5K, the plan can force you out. You can leave the funds in the plan an indefinite length of time and rollover much later. If ...
by Spirit Rider
Wed Nov 14, 2018 10:11 am
Forum: Personal Finance (Not Investing)
Topic: HSA contribution limits & Medicare
Replies: 11
Views: 901

Re: HSA contribution limits & Medicare

You're welcome. This HSA/Medicare retroactive gotcha is still not that well known. In fact the SSA and Medicare provided no information on this for the first 10 (10) years of HSAs. It has only the last few years that the Medicare website and the Medicare and You even briefly mentioned it. Also, I ca...
by Spirit Rider
Wed Nov 14, 2018 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Transfering from 401K yearly into trad IRA question
Replies: 18
Views: 831

Re: Transfering from 401K yearly into trad IRA question

OP, you can not do what you want period. It has nothing to do with your employer's 401k plan rules. IRS regulations prohibit the non-hardship in-service withdrawal/rollover of employee elective deferrals and non-vested employer contributions prior to age 59 1/2. In-service withdrawals/rollovers of v...
by Spirit Rider
Wed Nov 14, 2018 1:03 am
Forum: Personal Finance (Not Investing)
Topic: rule of thumb for using HSA funds?
Replies: 40
Views: 3252

Re: rule of thumb for using HSA funds?

Follow-up question - at some point, the HSA funds should be spent for medical expenses. If they aren't used for current expenses, how do you determine when they should be used? You are still allocating the funds for current expenses you are just deferring reimbursement to allow the funds to grow fo...
by Spirit Rider
Wed Nov 14, 2018 12:38 am
Forum: Personal Finance (Not Investing)
Topic: HSA contribution limits & Medicare
Replies: 11
Views: 901

Re: HSA contribution limits & Medicare

@Artsdoctor, If you go back and read my post. I said that if you enroll in Medicare >= age 65, it is automatically retroactive by up to six months, not that Medicare enrollment is automatic. Medicare enrollment itself is only automatic in two cases. First, you are automatically enrolled in Medicare ...
by Spirit Rider
Wed Nov 14, 2018 12:09 am
Forum: Personal Finance (Not Investing)
Topic: How to handle forced HSA distribution
Replies: 4
Views: 538

Re: How to handle forced HSA distribution

You do not have to add any additional qualified medical expenses if you will have >= $1.13 in unreimbursed expenses by the end of this year. As long as your total expenses are >= your total distributions, you do not have a non-qualified distribution.
by Spirit Rider
Tue Nov 13, 2018 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: HSA contribution limits & Medicare
Replies: 11
Views: 901

Re: HSA contribution limits & Medicare

HSA eligibility is based on the 1st of the month. Medicare coverage begins on the first of a month. So the month you start Medicare you are not an HSA eligible individual for that month. @HueyLD is correct with one small correction. Medicare Part A enrollment > age 65 is automatically retroactive up...
by Spirit Rider
Tue Nov 13, 2018 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: rule of thumb for using HSA funds?
Replies: 40
Views: 3252

Re: rule of thumb for using HSA funds?

Generally speaking: If you are maximizing all available tax-advantaged retirement accounts, you should pay all qualified medical expenses out of pocket and save proof. By doing this you are expanding your tax-advantaged account space. If you are not maximizing your tax-advantaged retirement accounts...
by Spirit Rider
Tue Nov 13, 2018 8:09 am
Forum: Investing - Help with Personal Investments
Topic: Small business (5 employees) 401k - cheapest options
Replies: 14
Views: 972

Re: Small business (5 employees) 401k - cheapest options

Can i ask why you recommend SEP-IRA under 10 employees? 1) SEP-IRA's are free. At around $5k, that is $500 or more per employee. Better off just putting the $500 into the employee SEP-IRA accounts. What are these numbers you are using. The maximum employer contribution is 25% of compensation. If yo...
by Spirit Rider
Mon Nov 12, 2018 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth before RMD
Replies: 2
Views: 363

Re: TSP to Roth before RMD

Next year TSP starts being more flexible also - but my understanding is that once RMDs start - I can't convert the taxable 401K to Roth. Is this correct? You can still do Roth conversions after RMDs start. It is just that you need to take the RMD first. After the RMD is taken you can do whatever Ro...
by Spirit Rider
Mon Nov 12, 2018 9:38 pm
Forum: Investing - Help with Personal Investments
Topic: Small business (5 employees) 401k - cheapest options
Replies: 14
Views: 972

Re: Small business (5 employees) 401k - cheapest options

BoglePaul wrote:
Mon Nov 12, 2018 4:20 pm
My advice is to stick with a SEP-IRA.
A SEP IRA is almost never a good choice for a small business. There are only employer contributions and generally they must be the same exact percentage contribution to every employee including the owner.