Search found 7581 matches

by Spirit Rider
Thu Apr 26, 2018 8:41 pm
Forum: Investing - Theory, News & General
Topic: Wells Fargo (again!) - DOL: "WF pushing 401k's to IRA's"?
Replies: 10
Views: 907

Re: Wells Fargo (again!) - DOL: "WF pushing 401k's to IRA's"?

Yes, 401k (and I think 403b?) accounts do tend to have more protections than IRA's. "How much" better does depend upon state law for the IRA's. 401k plans with non-owner employees (not one-participant 401k plans) are ERISA Title I qualified plans. They receive unlimited federal anti-alienation cred...
by Spirit Rider
Thu Apr 26, 2018 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: Bonus paid via 401k employer match
Replies: 21
Views: 1792

Re: Bonus paid via 401k employer match

I am not a professional with testing experience

However, I am pretty sure that all eligible employees regardless of participation must be included in testing.

These are questions best answered by your TPA.
by Spirit Rider
Thu Apr 26, 2018 10:19 am
Forum: Personal Finance (Not Investing)
Topic: Bonus paid via 401k employer match
Replies: 21
Views: 1792

Re: Bonus paid via 401k employer match

I should have clarified that I was referring to discretionary (AKA enhanced) matches in a safe harbor 401k plan. There are no 401k employer match % limits, but IRS regulation proscribe the following match and % of compensation restrictions, all subject to the 402g (2018 = $18.5K) and 415c (2018 = $5...
by Spirit Rider
Wed Apr 25, 2018 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Should I file a 1040X? Med Deduction Mistake
Replies: 2
Views: 224

Re: Should I file a 1040X? Med Deduction Mistake

"If there is clear and convincing evidence that amounts were distributed from an HSA because of a mistake of fact due to reasonable cause , the account beneficiary may repay the mistaken distribution no later than April 15 following the first year the account beneficiary knew or should have known th...
by Spirit Rider
Wed Apr 25, 2018 7:22 pm
Forum: Personal Consumer Issues
Topic: New car pickup today.
Replies: 48
Views: 2765

Re: New car pickup today.

This seems to be standard operating procedure nowadays and I think it is probably by design. If you walk away you know you are going to have to start over and spend another 4 to 5 hours at another dealer playing the same games. No you are not going to have to start over. If they don't tackle you on...
by Spirit Rider
Wed Apr 25, 2018 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Bonus paid via 401k employer match
Replies: 21
Views: 1792

Re: Bonus paid via 401k employer match

I would add that discretionary non-elective (AKA profit sharing) employer contributions that we have been discussing are different than a discretionary employer match which can be made on up to 4% of compensation. They both achieve similar results but with different mechanics and rules.
by Spirit Rider
Wed Apr 25, 2018 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Bonus paid via 401k employer match
Replies: 21
Views: 1792

Re: Bonus paid via 401k employer match

Where can I get more information about One Category Per Participant (OCPP) 401k plan? I can only find info from MANDMARBLESTONEGroup and I don't want to hire any outside counsel/advisors. This is one feature of employer contributions in a 401k. I was using this as an example of a plan feature that ...
by Spirit Rider
Wed Apr 25, 2018 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Did not deduct SEP-IRA contribution
Replies: 3
Views: 296

Re: Did not deduct SEP-IRA contribution

Thank you. I did not know about 404(a). In your opinion, if I don't submit 1040X and just rollover my whole SEP-IRA into my 401k (which does accept IRAs), that it will just be taxed again upon withdrawal? Yes, it will be taxed on withdrawal. Why would you possibly not want to file amended returns a...
by Spirit Rider
Wed Apr 25, 2018 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Term4Sale Agent - Am I getting bad advice?
Replies: 7
Views: 529

Re: Term4Sale Agent - Am I getting bad advice?

This is very common for rating of life insurance policies.

The concern over your past international living/traveling has more to do with the concern than future activities. Especially infectious diseases, fungal infections, etc...
by Spirit Rider
Wed Apr 25, 2018 2:42 pm
Forum: Personal Consumer Issues
Topic: New car pickup today.
Replies: 48
Views: 2765

Re: New car pickup today.

I prefer channeling my father; "because I said so!"

Actually, what has worked quite well the last couple of times is being proactive; "I'm not buying anything, so don't waste your time or more importantly my time."
by Spirit Rider
Wed Apr 25, 2018 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: i401k contribution causing net business loss
Replies: 11
Views: 617

Re: i401k contribution causing net business loss

MP123 is correct. For purposes of reasonable compensation the IRS considers total compensation before deferrals and including fringe benefits such as health insurance premiums or HSA contributions paid or reimbursed by the S-Corp and employer contributions.
by Spirit Rider
Wed Apr 25, 2018 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Bonus paid via 401k employer match
Replies: 21
Views: 1792

Re: Bonus paid via 401k employer match

I don't think that they can do it that way. Normally company contributions have to have the same formula for all employees. Megacorp allowed putting the bonus into the 401(k) but it was part of employee deferral/Roth space. And didn't get matched. It was useful to me because that got me doing after...
by Spirit Rider
Wed Apr 25, 2018 1:41 pm
Forum: Personal Consumer Issues
Topic: New car pickup today.
Replies: 48
Views: 2765

Re: New car pickup today.

Any extended warranty is really an insurance policy. The fundamental rule is that you should self-insure those risks you can afford. To maximize your savings you should decline extended warranties on all purchases. Like investing you should not have regret if an individual extended warranty would ha...
by Spirit Rider
Wed Apr 25, 2018 1:26 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion and avoiding the pro-rata consequences
Replies: 5
Views: 453

Re: Roth conversion and avoiding the pro-rata consequences

As long as there is no money in any traditional or rollover iras as of dec 31, you are good to go on the conversion. To add a little information for the OP. It is no pre-tax balances in all traditional, SEP and SIMPLE IRA accounts on 12/31. We know the OP has rolled over the SIMPLE IRA and probably...
by Spirit Rider
Wed Apr 25, 2018 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: i401k contribution causing net business loss
Replies: 11
Views: 617

Re: i401k contribution causing net business loss

thanks for the replies. No loans involved and has always been profitable. With a 50/50 split between salary and distributions, can 100% of the salary be deferred as long as it is a reasonable salary? No as I already pointed out. Employee elective contributions must be deducted from compensation not...
by Spirit Rider
Wed Apr 25, 2018 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: i401k contribution causing net business loss
Replies: 11
Views: 617

Re: i401k contribution causing net business loss

First, as pointed out by MP123 quoting retained earnings. Even though the term retained earnings are commonly used for S-Corps, they are really nontransferred distributions. An S-Corp is a pass-thru entity, with all income passed thru and taxed to the shareholder whether the money is actually transf...
by Spirit Rider
Wed Apr 25, 2018 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Turning 65, and choosing not to take Medicare Part B
Replies: 41
Views: 4510

Re: Turning 65, and choosing not to take Medicare Part B

I do think that if I were to do it again I would have signed up for part A at 65, just to be in the system. Note that my employer was fine continuing full coverage after 65 -- maybe not all employers do that. I don't know of any reason to enroll in Part A "just to be in the system" However, enrolli...
by Spirit Rider
Wed Apr 25, 2018 10:16 am
Forum: Personal Finance (Not Investing)
Topic: i401k contribution causing net business loss
Replies: 11
Views: 617

Re: i401k contribution causing net business loss

The short answer is yes, you can have a loss in an S-Corp. The more important question is, can you deduct that loss on your Form 1040? The answer is, it depends on rather complex; basis, at risk, etc,,, rules. Basis generally consists of investment and/or debt. Unlike a C-Corp, all net business inco...
by Spirit Rider
Tue Apr 24, 2018 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: i401k contribution causing net business loss
Replies: 11
Views: 617

Re: i401k contribution causing net business loss

scorp..anything wrong with contributing an amount to my i401k that will cause a business net loss? I do have retained earnings from last year and the the net loss will be be less than the retained earnings, if that matters. Example: income before expenses and salary- $40k Expenses-$10k -Can I take ...
by Spirit Rider
Tue Apr 24, 2018 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Salary Negotiation gone sour
Replies: 98
Views: 9645

Re: Salary Negotiation gone sour

z3r0c00l wrote:
Tue Apr 24, 2018 8:45 pm
I'll meet you half way here: I accept that you think this is true.
Fine and I'll do what anyone should do with the correct strong position and yield nothing.
by Spirit Rider
Tue Apr 24, 2018 7:35 pm
Forum: Investing - Help with Personal Investments
Topic: Pension Rollover to Roth IRA?
Replies: 5
Views: 327

Re: Pension Rollover to Roth IRA?

"Pension" isn't the proper word. I believe you mean "employer-sponsored retirement plan" which is usually a 401k, 403b or 457. You are making an assumption not in evidence. From the OP's description one should assume it really is a pension. Rollovers never have any impact on contribution limits in ...
by Spirit Rider
Tue Apr 24, 2018 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: Salary Negotiation gone sour
Replies: 98
Views: 9645

Re: Salary Negotiation gone sour

By the way, I got the idea that compromise means what I said it means probably from learning the definition as a child. Gordon Gekko notwithstanding, the word has not substantially changed in meaning. Definition of compromise (Webster - emphasis mine) 1 a : settlement of differences by arbitration ...
by Spirit Rider
Tue Apr 24, 2018 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: Considering No 401K Contribution or Profit Sharing For 2018
Replies: 12
Views: 1063

Re: Considering No 401K Contribution or Profit Sharing For 2018

By the way, I still haven't found a good online tax calculator that handles the new 20% deduction for sole proprietors. That is because no one knows how the mechanics are going to work until the IRS issues regulations/guidance. Last I heard they were expected this summer. I wouldn't skip the contri...
by Spirit Rider
Tue Apr 24, 2018 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: With new tax law in effect, should I convert from Sole prop?
Replies: 1
Views: 233

Re: With new tax law in effect, should I convert from Sole prop?

I have been reading articles about how Trump's new tax law would effect someone like me who owns a sole prop. Basically income from business flows down to my personal income and I used to pay tax on this total income. So how is the new law effect me? Better question is to pay the least tax should I...
by Spirit Rider
Tue Apr 24, 2018 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: New question in post #32- transferring work simple IRA to frozen simple IRA
Replies: 38
Views: 1583

Re: New question in post #32- transferring work simple IRA to frozen simple IRA

Spirit Rider , what is your opinion on telling the rep OP's transfer plans via email? I don't see any harm, if OP is firm that she has made her decision and doesn't want to discuss the decision. Do you agree? Establishing this via email would be less threatening to the OP than would establishing it...
by Spirit Rider
Tue Apr 24, 2018 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: New question in post #32- transferring work simple IRA to frozen simple IRA
Replies: 38
Views: 1583

Re: New question in post #32- transferring work simple IRA to frozen simple IRA

You have had consistent recommendations to not even discuss this with the rep at the meeting let alone a heads up prior to the meeting. What is driving this need. The rep is not your friend, this is business. Let me ask you this, what is your possible benefit from having any discussion about this is...
by Spirit Rider
Tue Apr 24, 2018 11:53 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 263
Views: 15918

Re: KF's simple rules to achieve FI [Financial Independence]

Held long enough, a crafty investor might decide that the tax deferral might completely overcome the tax penalty, and just use it as a vanilla tax-deferred account. (The pro-rata non-qualified withdrawal rule would make it useful in filling up low brackets over a extended period of withdrawals.) Se...
by Spirit Rider
Tue Apr 24, 2018 9:00 am
Forum: Personal Finance (Not Investing)
Topic: 37 yr old + UTMA + student loan = ???
Replies: 13
Views: 1004

Re: 37 yr old + UTMA + student loan = ???

The first contact should be with the custodian. Unlike a UGMA, a UTMA requires the pro-active release of control by the custodian.
by Spirit Rider
Tue Apr 24, 2018 8:53 am
Forum: Investing - Help with Personal Investments
Topic: Broker markup on t-bills: one data point at TDA
Replies: 2
Views: 276

Re: Broker markup on t-bills: one data point at TDA

Your calculation of markup is not necessarily valid. Marketable secuties by their very definition respond to market conditions. Even if you bought on the same day as the auction. Auctions are fixed price bids. Secondary market market pricing varies and are also subject to bid ask spreads. With that ...
by Spirit Rider
Tue Apr 24, 2018 8:42 am
Forum: Personal Finance (Not Investing)
Topic: deposit IRS refund in estate or beneficiary account?
Replies: 4
Views: 316

Re: deposit IRS refund in estate or beneficiary account?

It is the decedent's refund and goes into the trust account. If the estate had been closed and the financial institution accepted the check, I would deposit in my own account. However, at least in my state you can not close the estate unless you certify that the decedent's final tax return (s) has/h...
by Spirit Rider
Tue Apr 24, 2018 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Salary Negotiation gone sour
Replies: 98
Views: 9645

Re: Salary Negotiation gone sour

By the way, I got the idea that compromise means what I said it means probably from learning the definition as a child. Gordon Gekko notwithstanding, the word has not substantially changed in meaning. Definition of compromise (Webster - emphasis mine) 1 a : settlement of differences by arbitration ...
by Spirit Rider
Tue Apr 24, 2018 1:17 am
Forum: Personal Finance (Not Investing)
Topic: Salary Negotiation gone sour
Replies: 98
Views: 9645

Re: Salary Negotiation gone sour

It comes from evolutionary biology where social primates are finely attuned to fairness and compromise. A compromise is meeting about half-way, where each side gives about the same amount, meeting in the middle. There is something magical about that. All other options have one side sacrificing more...
by Spirit Rider
Tue Apr 24, 2018 12:40 am
Forum: Personal Finance (Not Investing)
Topic: Simple IRA with non-deductible Trad. IRA
Replies: 2
Views: 182

Re: Simple IRA with non-deductible Trad. IRA

billyj306 is 100% correct and your CPA is 100% wrong. The only income limit on a traditional IRA is a deduction limit when you or your spouse are active participants in an employer retirement plan. Warren Buffet could make a non-deductable contribution to a traditional IRA. Employer plan contributio...
by Spirit Rider
Mon Apr 23, 2018 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Salary Negotiation gone sour
Replies: 98
Views: 9645

Re: Salary Negotiation gone sour

I would have said "no thank you" when they came back with 85 and 15, they didn't signal a strong enough willingness to meet you half way. You had been offered much higher salaries to start and they kept dropping it. Who knows how the recruiter was playing both sides so I wouldn't assume the company...
by Spirit Rider
Mon Apr 23, 2018 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Salary Negotiation gone sour
Replies: 98
Views: 9645

Re: Salary Negotiation gone sour

My experience from both sides, employee and hiring manager. Unless you are an exceptional candidate or the need is great. It is not so much a negotiation as it is, Offer -> Counter Offer -> Final Offer. The candidate only has their own decision to make. Companies are different. Once you start jerkin...
by Spirit Rider
Mon Apr 23, 2018 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance Changing Lifestyle
Replies: 78
Views: 8823

Re: Inheritance Changing Lifestyle

This makes perfect sense when partners come in to current marriage after dissolving the prior one. I thought different rules apply when both partners have the current one as their only lifetime marriage. It may influence whether you want to have a prenup or not, but each marriage is separate and di...
by Spirit Rider
Mon Apr 23, 2018 9:30 am
Forum: Investing - Help with Personal Investments
Topic: New Investor but have funds that were set up for me as a minor. Just now taking control of them.
Replies: 7
Views: 767

Re: New Investor but have funds that were set up for me as a minor. Just now taking control of them.

OK, good information. It sounds like your father hired you as an employee of his business, paid you sufficient wages, enrolled you in the company's SIMPLE IRA plan, elected deferrals on your behalf, made employer contributions, opened and made contributions to a Roth IRA. Simply amazing. The good ne...
by Spirit Rider
Sun Apr 22, 2018 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA, and SIMPLE IRA tax confusion
Replies: 1
Views: 151

Re: SEP IRA, and SIMPLE IRA tax confusion

Were you eligible to deduct a traditional IRA in the first place. If so, your SEP IRA custodian is allowed to accept IRA contributions if they so choose and properly account for. If you were not eligible for the traditional IRA in the first place or your custodian does not accept traditional IRA con...
by Spirit Rider
Sun Apr 22, 2018 9:02 pm
Forum: Investing - Help with Personal Investments
Topic: New Investor but have funds that were set up for me as a minor. Just now taking control of them.
Replies: 7
Views: 767

Re: New Investor but have funds that were set up for me as a minor. Just now taking control of them.

You need to give a little more information about the SIMPLE IRA accounts. First, how did your father set up SIMPLE IRA accounts for you? SIMPLE IRAs are employer plans. Is either one of them through a current employer? If so what are the investment options and costs. Has it been two years since the ...
by Spirit Rider
Sun Apr 22, 2018 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: Roth401k to RothIRA conversion - tax question
Replies: 3
Views: 263

Re: Roth401k to RothIRA conversion - tax question

The age 55 rule is an exception to the early withdrawal penalty. It only applies to distributions from a qualified plan that you separated from the year you turned 55 or later. If you separate before the year you turn 55, the rule does not apply. Even if you separate in the year you turned 55 or lat...
by Spirit Rider
Sun Apr 22, 2018 12:01 am
Forum: Personal Finance (Not Investing)
Topic: Inappropriate contributions to Roth IRA
Replies: 1
Views: 272

Re: Inappropriate contributions to Roth IRA

This will be a little bit of a mess and fairly costly, but fixable. For the 2017 excess contributions you each have until 10/15/2018 to remove the excess contributions and earnings. Alternately, if you each have no pre-tax traditional, SEP and SIMPLE IRA balances or have a 401k, 403b or 457b that ac...
by Spirit Rider
Sat Apr 21, 2018 11:32 pm
Forum: Investing - Help with Personal Investments
Topic: Uncertain what to do about trust distribution
Replies: 7
Views: 742

Re: Uncertain what to do about trust distribution

Could you clarify whether you are receiving a one time distribution of $100K from the trust, or you are receiving $100K that will remain in a trust. The choices will be very different. If it is the latter, your ability to control the asset allocation and investments will subject to the determination...
by Spirit Rider
Sat Apr 21, 2018 11:13 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 263
Views: 15918

Re: KF's simple rules to achieve FI

Now you are just throwing out logical fallacy after logical fallacy to try and rationalize your so called rules that have no fundamental basis. There is absolutely no reason for any individual to re-balance their asset allocation monthly.
by Spirit Rider
Sat Apr 21, 2018 9:03 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 263
Views: 15918

Re: KF's simple rules to achieve FI

Rule #6 Invest using all-in-one funds such as lifestrategy or target retirement fund. Do not go into slice and dice until your portfolio is 6 figures or bigger. Yes, rule #6 is essential until you ave 250k+ Huh? Not even close. I agree with Bling. First, pretty much every one of KlangFool's so call...
by Spirit Rider
Sat Apr 21, 2018 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Amend 2017 Taxes to Make SEP IRA Payment?
Replies: 1
Views: 153

Re: Amend 2017 Taxes to Make SEP IRA Payment?

Nope. You needed to have filed the extension by your tax filing deadline to extend the SEP IRA adoption/contribution deadline. If you had filed an extension on time, you could have done any of the following: Filed on time and adopted/contributed to a SEP IRA on time. Filed on time and had until 10/1...
by Spirit Rider
Sat Apr 21, 2018 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: How do I make sure IRS receives my manual tax return ?
Replies: 84
Views: 5151

Re: How do I make sure IRS receives my manual tax return ?

Obviously, if Google does not have it, then it never happened, right, Right??? I have no doubt it is on google somewhere. Like most obscure searches that are dwarfed by the base subject, in this case the IRS. The problem will be getting your search parameters correct to get past the irrelevant cont...
by Spirit Rider
Sat Apr 21, 2018 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: How do I make sure IRS receives my manual tax return ?
Replies: 84
Views: 5151

Re: How do I make sure IRS receives my manual tax return ?

I didn't intend to be dismissive - just making my own observation based on experience. Over time, one develops a certain amount of intuition about things related to their business or profession. This story just runs counter to what I've known about IRS over 3-1/2 decades. And the way my clients hav...
by Spirit Rider
Sat Apr 21, 2018 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Paying Wife in S-corp 401k max without Take-home
Replies: 15
Views: 1418

Re: Paying Wife in S-corp 401k max without Take-home

Is there a rule on needing to contribute the same profit sharing %? Most standard 401k plans certainly including yours, require the employer contribution to be the exact same percentage for all employees Since my salary is higher than my wife's (and my wife is deferring nearly 100% to solo 401k) wh...
by Spirit Rider
Sat Apr 21, 2018 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: How do I make sure IRS receives my manual tax return ?
Replies: 84
Views: 5151

Re: How do I make sure IRS receives my manual tax return ?

After more than 35 years in the tax prep business, this is the first time I've ever heard of this. Not saying for sure it didn't happen, or that you didn't hear it, but it has the look & feel of an urban legend to me. Or maybe it happened with a state agency. In any event, I have serious doubts the...
by Spirit Rider
Sat Apr 21, 2018 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance Changing Lifestyle
Replies: 78
Views: 8823

Re: Inheritance Changing Lifestyle

It is reasonable to add a small sustainable percentage of the iheritance to your budget. For example, 2% might be a very safe withdrawal rate. So you could probably use 1%-2% of the previous year-end balance, but use your own judgement. The advantage of using such a fixed distribution amount is that...