Search found 10603 matches

by Spirit Rider
Sun Jun 16, 2019 4:01 am
Forum: Personal Finance (Not Investing)
Topic: calculating capital gains on child asset
Replies: 8
Views: 576

Re: calculating capital gains on child asset

TCJA modified the Federal kiddie tax for 2018 and beyond. It’s now based on trust brackets. I believe for 2019 it is (plagerized from elsewhere on this forum) Basic 2019 Kiddie tax brackets: * $1100 Unearned income standard exemption (no earned income) no tax. * $1100 Dependent's tax bracket, 10% o...
by Spirit Rider
Fri Jun 14, 2019 9:44 pm
Forum: Personal Investments
Topic: A 401k only partially vested
Replies: 10
Views: 999

Re: A 401k only partially vested

There is typically is a 5 break in service requirement. This means your unvested employer contributions will remain accountable to the plan for 5 years.
by Spirit Rider
Fri Jun 14, 2019 7:59 am
Forum: Personal Investments
Topic: Mega Backdoor Roth - How to setup?
Replies: 17
Views: 1286

Re: Mega Backdoor Roth - How to setup?

You can max out $19K between the traditional and Roth sources in the 401K and contribute another $37K to the After-Tax source which then ends up in the Roth source if you setup the automatic conversion. The annual addition limit (2019 = $56K) includes all employee and employer contributions. Theref...
by Spirit Rider
Fri Jun 14, 2019 4:50 am
Forum: Personal Consumer Issues
Topic: Mailers for Medicare, AARP, etc to a younger person
Replies: 20
Views: 1266

Re: Mailers for Medicare, AARP, etc to a younger person

The AARP has not been operating for the benefit of seniors for decades. They are an primarily an affinity marketing organization that pushes products that are often not beneficial to seniors. Their affiliated insurance (Medigap, car, life, etc...) products are often more expensive than competitive p...
by Spirit Rider
Fri Jun 14, 2019 4:12 am
Forum: Personal Investments
Topic: Social Security Retirement Age
Replies: 20
Views: 3344

Re: Social Security Retirement Age

You still get 8%/year delayed retirement credits even if you are not working from your FRA to age 70.

Also, wage indexing stops at age 60. If you continue to work with SS earnings > your age 60 maximum wage base. This will result replacing those years < the maximum with years > the maximum.
by Spirit Rider
Thu Jun 13, 2019 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: 401a/403b question regarding contribution limits
Replies: 5
Views: 310

Re: 401a/403b question regarding contribution limits

While it is probably not relevant in the OP's wife's case. For others reading this thread where it might be. The 401a and the 403b have separate annual addition limits (2019 = $56K) even though they are at the same employer. This is because a 403b is considered controlled by the participant and not ...
by Spirit Rider
Thu Jun 13, 2019 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: UGMA Tax Efficiency
Replies: 6
Views: 391

Re: UGMA Tax Efficiency

I do this yearly. For 2018, $4700 in dividends and capital gains were federally tax free (but not state tax free for me). At the end of 2018, I figured out how much each child had received in dividends, subtracted that from $4700 and sold enough stocks or mutual funds to get the sum of dividends an...
by Spirit Rider
Thu Jun 13, 2019 5:53 pm
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 1852

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

I really believe this to be very straightforward . I work with a CPA to calculate exactly what deductible contributions I can make as an employEE and an employER. From there, I do not see how it isn't simply $56,000 minus that amount for the after-tax contribution That is precisely the problem, you...
by Spirit Rider
Thu Jun 13, 2019 2:08 pm
Forum: Personal Investments
Topic: Solo 401k Question
Replies: 17
Views: 1156

Re: Solo 401k Question

1. Do I need a Roth 401k option if I can do an in-service conversion out to my Roth IRA located at Vanguard. I don't think you do, but it seems odd the plan would have after-tax contributions and not also have designated Roth contributions. I agree with @retiredjg, the plan document will almost cer...
by Spirit Rider
Thu Jun 13, 2019 10:21 am
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 1852

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

Are you sure you understand all of the intricacies of Mega Backdoor Roth contribution limits. There is no IRS publication or guidance directly covering contribution limits and none of the tax software properly calculate contribution limits. AND, it seems that mysolo401k has no clue how to apply the...
by Spirit Rider
Wed Jun 12, 2019 9:29 pm
Forum: Personal Investments
Topic: Best HSA account as of June 2019?
Replies: 14
Views: 954

Re: Best HSA account as of June 2019?

I just have always been reluctant to open an account with Fidelity since they have fought so hard against index funds in the past couple of decades. I don't know where you came up with that misinformation, it is 100% totally false. Fidelity has been actively promoting and have been competitive with...
by Spirit Rider
Wed Jun 12, 2019 9:06 pm
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 1852

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

I think for standard contributions and rollovers within the plan, they should be able to guide me without error (I can calculate how much to contribute on my own to be honest). I hope you are correct and I hope that is all you need to do. Are you sure you understand all of the intricacies of Mega B...
by Spirit Rider
Wed Jun 12, 2019 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 736
Views: 78218

Re: Fidelity as a one stop shop

I'm surprised Fidelity lets you at the funds a day early. As I mentioned above, I see them at my credit union as a future transaction but funds are not available as the credit union honors the scheduled transaction date (by the same token, I will see some ACH withdrawals as future as well but they ...
by Spirit Rider
Wed Jun 12, 2019 11:50 am
Forum: Personal Consumer Issues
Topic: (Water Filtration System) Miracle we are all not dead
Replies: 61
Views: 5333

Re: (Water Filtration System) Miracle we are all not dead

Check with your state. My state (NH) does testing for a nominal fee. They send you bottles for the tests your request. I have a well with a fairly high mineral content. I test every five years for all of the tests they run including, minerals, soil contaninants, radon (lots of granite here) E. coli ...
by Spirit Rider
Wed Jun 12, 2019 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 736
Views: 78218

Re: Fidelity as a one stop shop

Fidelity's CMA institutes no ACH delays. My paychecks always arrived one day before the pay date. Transfer requests before 4:00pm ET are always in my credit union the next business day morning.
by Spirit Rider
Wed Jun 12, 2019 10:11 am
Forum: Personal Finance (Not Investing)
Topic: RMD and expected life span
Replies: 30
Views: 2614

Re: RMD and expected life span

When people talk about life expectancy, it is usually life expectancy from birth. There are significant survivorship changes as people die at a range of ages. The IRS RMD tables take that into account and state the life expectancy "duration" at specific ages. The life expectancy from birth can be fl...
by Spirit Rider
Wed Jun 12, 2019 9:05 am
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 1852

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

Can you explain what is a "profit-sharing contribution" please? Is it contribution from annual performance based bonus? Or employer automatic contribution that does not require employee contributing? I am trying NOT to max out my 401k (not solo 401k) before December, in order to get all the employe...
by Spirit Rider
Tue Jun 11, 2019 8:00 pm
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 1852

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

https://www.mysolo401k.net/texas-solo-401k-plan/ Texas Solo 401k Plan Highlights Shielded from Creditors: Since Solo 401k or self-directed 401k falls under federal code (ERISA) and 401k anti-alienation protection , your retirement assets are shielded from creditors in the State of Texas. This is 10...
by Spirit Rider
Tue Jun 11, 2019 6:57 pm
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 1852

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

- It is a self-directed account, so you can use the money to invest in almost anything Hmmmm, are you sure? I know this can be done with an IRA but I can't recall hearing it about a 401k. Just doesn't feel right to me, but I have no knowledge of it either way. Yes, custom 401k plans can invest in a...
by Spirit Rider
Tue Jun 11, 2019 6:49 pm
Forum: Personal Investments
Topic: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?
Replies: 28
Views: 1852

Re: Left MegaCorp, Disadvantages to Rolling 401K & Pension to Self-Directed Solo 401K?

Along with low expense ratios on the funds she uses with Vanguard, I don't know why anyone would use mysolo401k.net when you could use Vanguard, Fidelity, or others at much lower costs. Perhaps because it offers the after-tax account with in-service rollover to Roth (mega back door). It may also ac...
by Spirit Rider
Tue Jun 11, 2019 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: RMD and expected life span
Replies: 30
Views: 2614

Re: RMD and expected life span

The IRS updated the RMD tables in 1987 and 2002, that would imply that they might update tables in the next few years.
by Spirit Rider
Tue Jun 11, 2019 6:03 pm
Forum: Personal Consumer Issues
Topic: Tips for new pet owner [puppy]
Replies: 71
Views: 3721

Re: Tips for new pet owner

This is not an anti-vaccine post, rather anything but. It is a suggestion to follow the recommended canine vaccination guidelines from the American Veterinary Medical Association (AVMA) and American Animal Hospital Association (AAHA) even if the vast majority of veterinarians do not. Imagine if the ...
by Spirit Rider
Tue Jun 11, 2019 4:23 pm
Forum: Personal Consumer Issues
Topic: College Credits to stay on Parents Health Insurance
Replies: 17
Views: 1343

Re: College Credits to stay on Parents Health Insurance

Before the ACA, some states provided under 26 coverage on their own, but @beyou is not correct now. The ACA is superceding federal law in all states regarding coverage regardless if it is a Marketplace policy. This is just like individual health insurance benefits. Before the ACA, some states manda...
by Spirit Rider
Tue Jun 11, 2019 12:32 pm
Forum: Personal Consumer Issues
Topic: College Credits to stay on Parents Health Insurance
Replies: 17
Views: 1343

Re: College Credits to stay on Parents Health Insurance

bryansmile wrote:
Tue Jun 11, 2019 8:30 am
Awesome! It'll come in handy when my child graduates from college. And my non-dependent child can contribute up to 7k just because he's on my family plan, even though he's single, correct?
Correct, as long as they do not have other coverage.
by Spirit Rider
Tue Jun 11, 2019 8:17 am
Forum: Personal Consumer Issues
Topic: College Credits to stay on Parents Health Insurance
Replies: 17
Views: 1343

Re: College Credits to stay on Parents Health Insurance

In fact, if the parents have a family HDHP, a non-dependent child can make their own HSA contributions up to the full family plan contribution limit. Can you explain this a bit more? If my non dependent child is on my family plan and I max out the HSA to 7k, can my child contribute extra? Yes, to b...
by Spirit Rider
Tue Jun 11, 2019 8:04 am
Forum: Personal Investments
Topic: HSA - Save Reciepts When Paying Bills?
Replies: 36
Views: 2186

Re: HSA - Save Reciepts When Paying Bills?

Not sure if all HSAs are like this but my HSA debit card will not work with anything that isn't a qualified expense. Are you sure you aren't thinking about FSA debit cards. That is how my FSA debit cards always worked. An FSA plan is required to ensure that every reimbursement is only for qualified...
by Spirit Rider
Tue Jun 11, 2019 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Shopping insurance? How often?
Replies: 15
Views: 910

Re: Shopping insurance? How often?

I shop every year, but only change when I save >= 10%. This is usually 2 - 3 years. Almost all insurance companies will engage in rate creep or conversely offer better rates for new customers. The only difference between cable companies and insurance companies, is that cable companies may give you t...
by Spirit Rider
Tue Jun 11, 2019 7:26 am
Forum: Personal Consumer Issues
Topic: College Credits to stay on Parents Health Insurance
Replies: 17
Views: 1343

Re: College Credits to stay on Parents Health Insurance

Before the ACA, some states provided under 26 coverage on their own, but @beyou is not correct now. The ACA is superceding federal law in all states regarding coverage regardless if it is a Marketplace policy. This is just like individual health insurance benefits. Before the ACA, some states mandat...
by Spirit Rider
Tue Jun 11, 2019 7:08 am
Forum: Personal Investments
Topic: What’s the Best HSA out there?
Replies: 17
Views: 1942

Re: What’s the Best HSA out there?

1. Yes 2. Yes, but... She can only do one (1) fee-free indirect HSA rollover every 12-month period. She can do unlimited trustee -> trustee transfers, but many HSA custodians charge a $20 - $25 transfer "push". Fidelity will do an initial and unusal transfer "pull" as part of account setup and fundi...
by Spirit Rider
Mon Jun 10, 2019 7:04 pm
Forum: Personal Investments
Topic: How are “high earners” (HCEs) eligible for Mega-backdoor Roth?
Replies: 12
Views: 1219

Re: How are “high earners” (HCEs) eligible for Mega-backdoor Roth?

1. How would I know whether I would be eligible or not, should our company modify its plan? Our plan is a safe harbor 401k. When I try to put my year-end bonus into 401k each year, usually the plan administrator tells me they can only put some of it into the 401k b/c of discrimination testing rules...
by Spirit Rider
Mon Jun 10, 2019 5:20 am
Forum: Personal Finance (Not Investing)
Topic: In-Plan Roth 401k Conversion?
Replies: 8
Views: 711

Re: In-Plan Roth 401k Conversion?

you can access the contributions later on for early retirement, etc. so long as you respect the five year rule. Even if the plan doesn't allow in-service rollovers. They must allow you to rollover the Roth 401k to a Roth IRA upon separation. Also, if allowed partial distributions if separated >= th...
by Spirit Rider
Sun Jun 09, 2019 7:09 am
Forum: Personal Consumer Issues
Topic: College Credits to stay on Parents Health Insurance
Replies: 17
Views: 1343

Re: College Credits to stay on Parents Health Insurance

The ACA removed any college requirement for a child to remain on a parents health Insurance until age 26. Any child can remain, they do not have to be a dependent or even live with the parent(s). In fact, if the parents have a family HDHP, a non-dependent child can make their own HSA contributions u...
by Spirit Rider
Fri Jun 07, 2019 8:43 pm
Forum: Investing - Theory, News & General
Topic: TSP modernization implementation date: 9/15/2019
Replies: 24
Views: 2701

Re: TSP modernization implementation date: 9/15/2019

One point of interest — although the withdrawal options are much more flexible, one restriction is that you can’t take more than one withdrawal in each 30 calendar day period. So they say. So if you set up a monthly withdrawal plan, you can’t also take a separate lump sum to cover your annual prope...
by Spirit Rider
Thu Jun 06, 2019 1:33 pm
Forum: Personal Investments
Topic: Children's IRA
Replies: 13
Views: 1409

Re: Children's IRA

In all cases, even if it legitimately qualifies for earned income you must pay your children a fair market value FMV wage.
by Spirit Rider
Thu Jun 06, 2019 1:29 pm
Forum: Personal Investments
Topic: Can S-Corp offer HSA without offering health insurance
Replies: 21
Views: 1202

Re: Can S-Corp offer HSA without offering health insurance

Now that you point it out, I was thinking of sole proprietorships.
by Spirit Rider
Thu Jun 06, 2019 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Health insurance offering to one employee/family
Replies: 1
Views: 232

Re: Health insurance offering to one employee/family

Research QSEHRA for premium and OOP reimbursement.

Only subsidized premium reimbursement is taxable income to the employee. Paid by them on their tax return.
by Spirit Rider
Thu Jun 06, 2019 8:21 am
Forum: Spain
Topic: Spain and Roth IRAs
Replies: 36
Views: 3829

Re: Spain and Roth IRAs

Just made some contributions to my and my wife's solo roth 401ks at TD Ameritrade. In the confirmation message, they advise that they are reporting the transaction and the amount to the IRS. These messages can be printed and / or downloaded, and save to file. I also keep a spreadsheet to track elig...
by Spirit Rider
Thu Jun 06, 2019 8:04 am
Forum: Personal Investments
Topic: Can S-Corp offer HSA without offering health insurance
Replies: 21
Views: 1202

Re: Can S-Corp offer HSA without offering health insurance

The only time an HRA was used by an S-Corp owner was if their spouse was employed by the S-Corp and a family plan health insurance policy was provided for the spouse which also covered the S-Corp owner. The ACA changed the landscape for HRAs and in 2017 Congress/IRS started QSEHRAs for small busines...
by Spirit Rider
Thu Jun 06, 2019 7:47 am
Forum: Personal Investments
Topic: Children's IRA
Replies: 13
Views: 1409

Re: Children's IRA

What is the extra effort. If they have legitimate earned income, why not. It is as much about their financial education as it is about the amount contributed/invested.
by Spirit Rider
Thu Jun 06, 2019 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Form 5500EZ
Replies: 9
Views: 524

Re: Form 5500EZ

The only time you would need to terminate a one-participant 401k is if the business sponsor ceases to exist. A disregarded single member LLC and sole proprietor generally exist from inception until death. I have never heard of the IRS requiring such a business entity to terminate a one-participant ...
by Spirit Rider
Thu Jun 06, 2019 12:17 am
Forum: Personal Finance (Not Investing)
Topic: Form 5500EZ
Replies: 9
Views: 524

Re: Form 5500EZ

The only time you would need to terminate a one-participant 401k is if the business sponsor ceases to exist. A disregarded single member LLC and sole proprietor generally exist from inception until death. I have never heard of the IRS requiring such a business entity to terminate a one-participant 4...
by Spirit Rider
Thu Jun 06, 2019 12:02 am
Forum: Personal Investments
Topic: Can S-Corp offer HSA without offering health insurance
Replies: 21
Views: 1202

Re: Can S-Corp offer HSA without offering health insurance

It's more of a loophole in overlapping pieces of tax code. Section 223 Health Savings Accounts was passed in 2004, defining who was an HSA eligible individual. In 2010, the ACA changed the definition of who can be considered a covered individual of a health insurance plan and nobody then or since h...
by Spirit Rider
Wed Jun 05, 2019 11:49 pm
Forum: Personal Investments
Topic: Can S-Corp offer HSA without offering health insurance
Replies: 21
Views: 1202

Re: Can S-Corp offer HSA without offering health insurance

Just want to make sure I understand correctly as I am in the same boat. I am only employee of my S Corp, 100% owner. I am on my girlfriend's plan as domestic partner and the S Corp contributes 7K to my HSA. I report this as pretax employER contribution on my W2 and it's included as wages. No this i...
by Spirit Rider
Wed Jun 05, 2019 8:34 am
Forum: Personal Investments
Topic: Can S-Corp offer HSA without offering health insurance
Replies: 21
Views: 1202

Re: Can S-Corp offer HSA without offering health insurance

niceguy7376 wrote:
Wed Jun 05, 2019 7:49 am
What is the benefit to S Corp or the owner of the S Corp? Wouldnt it be more beneficial if the spouse contributes it through the payroll and get the triple tax benefit?
When an S-Corp contributes or reimburses HSA contributions for a 2% shareholder-employee, they also can be exempt form FICA.
by Spirit Rider
Tue Jun 04, 2019 10:32 pm
Forum: Personal Investments
Topic: Switched employers mid year - what happens if you exceed contributions and/or IRC limits?
Replies: 3
Views: 516

Re: Switched employers mid year - what happens if you exceed contributions and/or IRC limits?

You are under a couple of misconceptions. There is only a single employee elective contribution limit (2019 = $19K) across all 401k, 403b, SARSEP and SIMPLE IRAs. However, there is a separate compensation limit (2019 = $280K) and employee + employer annual addition limit (2019 = $56K) for each unaff...
by Spirit Rider
Tue Jun 04, 2019 10:14 pm
Forum: Personal Investments
Topic: Can S-Corp offer HSA without offering health insurance
Replies: 21
Views: 1202

Re: Can S-Corp offer HSA without offering health insurance

The short answer is yes, an S-Corp can make direct or reimbursement of HSA contributions for reasons alluded to by @MP123. Employer pre-tax contributions* to an HSA can only be made through an employer plan where the employer has determined that the employee is covered under an HDHP sponsored by the...
by Spirit Rider
Tue Jun 04, 2019 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Help with avoiding double taxation in C Corp.
Replies: 9
Views: 545

Re: Help with avoiding double taxation in C Corp.

If your income is that high and your age is 40 - 45+, you should look at cash balance plan. This could allow you to make significantly larger retirement plan contributions, especially if older.
by Spirit Rider
Mon Jun 03, 2019 10:09 pm
Forum: Personal Investments
Topic: Any concerns with TIRA rollover to 401k, to allow backdoor Roth IRA?
Replies: 8
Views: 443

Re: Any concerns with TIRA rollover to 401k, to allow backdoor Roth IRA?

1st Separate out the non-deductible amount and the pre-tax amounts. -How would I separate out the non-deductible amount and the pre-tax amounts in a Vanguard TIRA? Does Vanguard allow for partial TIRA rollover? The term separate is misleading. You isolate the non-deductible basis by rolling over on...
by Spirit Rider
Mon Jun 03, 2019 5:20 pm
Forum: Personal Consumer Issues
Topic: Medicare broker
Replies: 27
Views: 1016

Re: Medicare broker

I agree with all of the above and was very suspicious when I first ran across the broker in my neighborhood. Fortunately, my state offers a very comprehensive shopping tool so I was able to verify that he was not pushing high cost plans. The main advantage I see in dealing with him is that he will ...
by Spirit Rider
Mon Jun 03, 2019 5:04 pm
Forum: Personal Consumer Issues
Topic: Medicare broker
Replies: 27
Views: 1016

Re: Medicare broker

There has been a big push recently by the Medicare Advantage insurers to push those over Medicare Supplement plans. In many circumstances they might be the best plan for you. However, as has already been pointed out, the broker's compensation may be vary for MA plans and MS plans and it may be diffe...