Search found 8650 matches

by Spirit Rider
Tue Oct 16, 2018 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Help Setting up Solo 401k
Replies: 6
Views: 372

Re: Help Setting up Solo 401k

The $60K was probably for 2017. The 2017 annual addition limit was $54K. The 2017 catch-up contribution limit was $6K for those >= age 50. For 2017, $54K + $6K = $60K. The 2018 annual addition limit is $55K. The 2018 catch-up contribution limit is also $6K for those >= age 50. For 2018, $55K + $6K =...
by Spirit Rider
Tue Oct 16, 2018 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Help Setting up Solo 401k
Replies: 6
Views: 372

Re: Help Setting up Solo 401k

1. Only pre-tax balances in traditional, SEP and SIMPLE IRA accounts on 12/31 interfere with a Backdoor Roth. 2. A default single member LLC is taxed as a sole proprietorship. A default multi-member LLC is taxed as a partnership. Either can elect to be treated as a QJV in a community property state....
by Spirit Rider
Mon Oct 15, 2018 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: ACA subsidy repayment for s-Corp owner
Replies: 10
Views: 631

Re: ACA subsidy repayment for s-Corp owner

It is very rare for any owner-only pass-thru business entity to have any need for and select accrual based accounting.
by Spirit Rider
Mon Oct 15, 2018 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: I401k Contribution Limits
Replies: 7
Views: 411

Re: I401k Contribution Limits

One participant 401k contributions are based in a self-employed individual's net self-employment earnings (business profit - 1/2 SE tax). The employee elective contributions can be up to 100% of net self-employment earnings up to (2018 = $18,500, 2019 = $19K. The employer contribution can be up to 2...
by Spirit Rider
Mon Oct 15, 2018 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: HSA contribution for divorced non-custodial parent
Replies: 6
Views: 361

Re: HSA contribution for divorced non-custodial parent

You can cover your children regardless if they are your tax dependents until they are 26. Once they are no longer tax dependents, you can not use the HSA to pay for their unreimbursed qualified medical expenses. However, at that point they become HSA eligible individuals and may open an HSA and make...
by Spirit Rider
Mon Oct 15, 2018 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: ACA subsidy repayment for s-Corp owner
Replies: 10
Views: 631

Re: ACA subsidy repayment for s-Corp owner

If you run the health insurance premiums though the the S-Corp. You still get to use the Self-employed health insurance deduction on the net premium (gross premium - actual eligible subsidy). This can be a recursive calculation that tax software calculates properly. If you exceed the 400% FPL cliff,...
by Spirit Rider
Mon Oct 15, 2018 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard won't return earnings with previous year ineligible contribution to Roth IRA
Replies: 5
Views: 727

Re: Vanguard won't return earnings with previous year ineligible contribution to Roth IRA

Vanguard and @retiredjg are correct. You can only return excess contributions and earnings if done by the tax filing deadline including extensions. For 2016 contributions this would have been ~10/15/2017. You will need to amend your 2016 tax return to report the excess contribution on Form 5329 subj...
by Spirit Rider
Sun Oct 14, 2018 10:51 am
Forum: Investing - Theory, News & General
Topic: Will rising inflation increase 401K and Roth contribution limits for 2019?
Replies: 17
Views: 4961

Re: Will rising inflation increase 401K and Roth contribution limits for 2019?

The September CPI was released October 11th. It is locked in and the compensation limit will be $280K, the 415c limit $56K and the 402g limit $19K.

The IRS just hasn't released the official numbers. I would expect them this coming week
by Spirit Rider
Sun Oct 14, 2018 10:49 am
Forum: Investing - Help with Personal Investments
Topic: 6 month Treasury Note: "Bond" or "Cash"?
Replies: 47
Views: 3474

Re: 6 month Treasury Note: "Bond" or "Cash"?

1) Bonds that are marketable securities are not principal protected unless retained until maturity. Savings Bonds are principal protected.
2) It depends what type of bond and whether you are talking about yields for individual bonds or in aggregate.
by Spirit Rider
Sat Oct 13, 2018 11:11 pm
Forum: Investing - Help with Personal Investments
Topic: 6 month Treasury Note: "Bond" or "Cash"?
Replies: 47
Views: 3474

Re: 6 month Treasury Note: "Bond" or "Cash"?

NYCwriter wrote:
Sat Oct 13, 2018 2:24 pm
Cash should be about max liquidity and least risk. Cash has no duration.
That may be your definition, but is not the standard accounting or accepted portfolio definitions.

There is no requirement that the "cash" portion of a portfolio have immediate liquidity, but it should be principal protected.
by Spirit Rider
Sat Oct 13, 2018 10:56 pm
Forum: Personal Finance (Not Investing)
Topic: Questions regarding 199A Rules
Replies: 5
Views: 392

Re: Questions regarding 199A Rules

The Section 199A QBI deduction threshold is based on your taxable income. Your actual QBI would be the lesser of your net self-employment earnings (bussiness - 1/2 SE tax) and your taxable Income. For example, with a net profit of $200K, your net self-employment earnings would be $189,361. With $8K ...
by Spirit Rider
Sat Oct 13, 2018 12:47 pm
Forum: Investing - Theory, News & General
Topic: Timing of non-sweep MM fund sale to cover t-bill purchase
Replies: 4
Views: 271

Re: Timing of non-sweep MM fund sale to cover t-bill purchase

indexfundfan wrote:
Sat Oct 13, 2018 12:13 pm
On the other hand, Fidelity's MMF appears to settle same day.
Actually, it is better than that. Fidelity's MMFs are considered settled cash. You can place buy orders and they will be sold automatically when those orders settle.
by Spirit Rider
Sat Oct 13, 2018 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: If I retire to a State that has no State taxes...
Replies: 46
Views: 7292

Re: If I retire to a State that has no State taxes...

If i retire to a State that has no state taxes, I wont pay any state taxes on my RMDs and long term capital gain that I exercise after moving to that state. Is that correct? If so, how long do I need to live in the state to be considered a resident and pay no state taxes on RMDs/capital gain? Keep ...
by Spirit Rider
Sat Oct 13, 2018 10:18 am
Forum: Personal Finance (Not Investing)
Topic: HSA
Replies: 3
Views: 365

Re: HSA

Some additional points. You can exclude individuals < age 25 at the beginning of the plan year. You can limit it to full-time employees only or you can set any arbitrary minimum average weekly number of hours worked/week or minimum number of months worked/year. There is no minimum reimbursement amou...
by Spirit Rider
Sat Oct 13, 2018 9:53 am
Forum: Personal Finance (Not Investing)
Topic: HSA
Replies: 3
Views: 365

Re: HSA

You and your employees would be far better off with a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), sometimes called a Small Business HRA. This has only been available for a couple of years. The administrative costs are reasonable. For 2018 this allows you to provide any fixed ...
by Spirit Rider
Sat Oct 13, 2018 9:29 am
Forum: Investing - Theory, News & General
Topic: Timing of non-sweep MM fund sale to cover t-bill purchase
Replies: 4
Views: 271

Re: Timing of non-sweep MM fund sale to cover t-bill purchase

On a non-margin account, many platforms will not accept the Treasury purchase request unless at least the mutual fund sale request has been accepted. Some may not accept until the mutual fund sale has settled. Unfortunately, you can not be spared. Either post the specific brokerage and someone may k...
by Spirit Rider
Sat Oct 13, 2018 8:59 am
Forum: Personal Finance (Not Investing)
Topic: If I retire to a State that has no State taxes...
Replies: 46
Views: 7292

Re: If I retire to a State that has no State taxes...

If i retire to a State that has no state taxes, I wont pay any state taxes on my RMDs and long term capital gain that I exercise after moving to that state. Is that correct? Yes, I believe that's correct if it's one of the 7 states listed above. One caveat based on your use of the term "exercise". ...
by Spirit Rider
Sat Oct 13, 2018 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Source of Funds - HSA ?
Replies: 3
Views: 297

Re: Source of Funds - HSA ?

A couple of points. First, you should almost never do the once/lifetime rollover from a traditional IRA to an HSA unless you have no after-tax options for direct contributions. The latter increases your tax advantaged space, the former does not. Second, be aware that such a rollover has the entire f...
by Spirit Rider
Fri Oct 12, 2018 6:08 pm
Forum: Investing - Help with Personal Investments
Topic: solo 401(k) and tIRA with low earned income
Replies: 4
Views: 265

Re: solo 401(k) and tIRA with low earned income

It is not clear what you are asking. There are different metrics: The Self-employed health insurance deduction can not exceed your net self-employment earnings (business profit - 1/2 SE tax) - one-participant 401k employee deferrals and employer contributions. Making designated Roth contributions to...
by Spirit Rider
Fri Oct 12, 2018 11:21 am
Forum: Investing - Help with Personal Investments
Topic: over 55k in 401k with profit-sharing...
Replies: 14
Views: 560

Re: over 55k in 401k with profit-sharing...

Profit Sharing is an employer contribution just like employer match. Of course profit sharing is not matched.

Does it really matter if your employer contributions up to the annual addition limit are employer matches or profit sharing.
by Spirit Rider
Fri Oct 12, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: over 55k in 401k with profit-sharing...
Replies: 14
Views: 560

Re: over 55k in 401k with profit-sharing...

I think many plan sponsors won't let you go over, but I'm not sure what happens if you do. Nothing good I suspect. It is the plan's responsibility to ensure the annual addition limit is not exceeded. The IRS has issued very specific guidance on what contributions should be returned when exceeding a...
by Spirit Rider
Fri Oct 12, 2018 10:48 am
Forum: Investing - Help with Personal Investments
Topic: over 55k in 401k with profit-sharing...
Replies: 14
Views: 560

Re: over 55k in 401k with profit-sharing...

If you are 50 years old or older, you can contribute up to an additional $6,000 (or $61,000 total). It is important to understand that the annual addition limit does not change if you are >= 50. It is just that catch-up contributions are not included in the annual addition limit. The additional $6,...
by Spirit Rider
Fri Oct 12, 2018 8:23 am
Forum: Investing - Help with Personal Investments
Topic: 6 month Treasury Note: "Bond" or "Cash"?
Replies: 47
Views: 3474

Re: 6 month Treasury Note: "Bond" or "Cash"?

As has been pointed out, there are certain precise definitions for cash equivalents: Money market funds must maintain a weighted average maturity (WAM) of 60 days or less. Accounting rules for businesses define them as having a maturity of three months or less. When it comes to a personal portfolio,...
by Spirit Rider
Thu Oct 11, 2018 10:21 am
Forum: Personal Finance (Not Investing)
Topic: 401k - more than one company in one year
Replies: 3
Views: 289

Re: 401k - more than one company in one year

Some companies match after-tax contributions.
by Spirit Rider
Wed Oct 10, 2018 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Question
Replies: 11
Views: 1374

Re: Medicare Question

If your dad's employer has > 20 employees, Aetna would be primary and Medicare secondary. Depending on any Aetna plan deductible, co-pay and/or co-insurance plus how much any residual amounts might be Parts A and B and whether she had her own Medicare Supplement plan, will determine how much if any ...
by Spirit Rider
Wed Oct 10, 2018 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: If I retire to a State that has no State taxes...
Replies: 46
Views: 7292

Re: If I retire to a State that has no State taxes...

Also, the income tax laws of your old state may have a bearing on whether you can then escape that state’s tax on distributions. Gill My understanding is that is not true. It is your understanding that is mistaken. Many states have relatively easy requirements for new residence status. However, som...
by Spirit Rider
Wed Oct 10, 2018 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Any Self Employed people near the ACA cliff experiencing this situation?
Replies: 7
Views: 580

Re: Any Self Employed people near the ACA cliff experiencing this situation?

This isn't even a close call. @tfb is 100% correct. The tax software CSR as is often the case, clueless. The Self-employed health insurance deduction is based on your net premium (premium - premium tax credit). If your AGI is exactly what you estimated, your deduction would be 18,030 - $18,000 = $30...
by Spirit Rider
Wed Oct 10, 2018 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: confused about medicare threshold
Replies: 11
Views: 882

Re: confused about medicare threshold

What you might have seen was that Roth conversions do not change your direct Roth contribution MAGI.

There are different MAGI calculations. The IRMAA MAGI calculations includes Roth conversions.
by Spirit Rider
Wed Oct 10, 2018 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Contributing to solo 401k and then immediately closing it
Replies: 1
Views: 202

Re: Contributing to solo 401k and then immediately closing it

It may not be necessary to terminate the current one-participant 401k plan. If this broker-dealer offers a one-participant 401k plan You can simply amend your current plan to that broker-dealer, transfer the assets and close the previous "account". If you terminated the current one-participant 401k ...
by Spirit Rider
Wed Oct 10, 2018 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Self Employed Health Insurance Deduction
Replies: 18
Views: 1580

Re: Self Employed Health Insurance Deduction

See (CCA) 201228037 from my earlier post. That ruling specifically allows a spouse's Medicare premiums to be deducted even though not in the name of the business or the self-employed individual.

This deduction was not allowed prior to 2012.
by Spirit Rider
Wed Oct 10, 2018 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Self Employed Health Insurance Deduction
Replies: 18
Views: 1580

Re: Self Employed Health Insurance Deduction

We are both on medicare and my wife is self-employed. I take this to mean that we can deduct her premiums, but not mine. Is that correct? The self-employed health insurance deduction is for the self-employed individual, their spouse and any dependents <= age 26. She can deduct premiums for both of ...
by Spirit Rider
Tue Oct 09, 2018 7:26 pm
Forum: Investing - Help with Personal Investments
Topic: After-tax 401k.. convert to Roth 401k?
Replies: 5
Views: 431

Re: After-tax 401k.. convert to Roth 401k?

Your 401k plan may or may not offer in-service rollovers of after-tax contributions or it may limit them such as once/year. 2. Is certainly a valid option as monthly In-plan Roth Rollovers (IRRS) limit the amount of taxable earnings. 3. May be a good option if in-service rollovers of after-tax contr...
by Spirit Rider
Mon Oct 08, 2018 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 employee for the first time. Help?
Replies: 10
Views: 466

Re: 1099 employee for the first time. Help?

Contrary to general perceptions there is very little to no benefit of creating an LLC, given the general facts and circumstances. However, I always recommend getting a local legal opinion given the exact facts, circumstances and jurisdictions. A default LLC is treated as a disregarded entity by the ...
by Spirit Rider
Mon Oct 08, 2018 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Individual 401(k) with a Partnership and Form 5500 Requirements
Replies: 4
Views: 220

Re: Individual 401(k) with a Partnership and Form 5500 Requirements

Schwab would have sent a year-end report every year to the plan administrator. As plan sponsor the partnership's administrator had/has a right to information on all the individual accounts and this report would have include the total of all balances on 12/31. For some reason, Schwab says they do no...
by Spirit Rider
Mon Oct 08, 2018 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Individual 401(k) with a Partnership and Form 5500 Requirements
Replies: 4
Views: 220

Re: Individual 401(k) with a Partnership and Form 5500 Requirements

There should have been only a single one-participant 401k plan with the partnership as the sponsor. The individual partners should have opened accounts under that plan. Schwab would have sent a year-end report every year to the plan administrator. As plan sponsor the partnership's administrator had/...
by Spirit Rider
Mon Oct 08, 2018 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Rolling INTO TSP? [Thrift Savings Plan]
Replies: 12
Views: 1138

Re: Rolling INTO TSP? [Thrift Savings Plan]

You can not rollover a Roth IRA to any employer retirement plan with designated Roth accounts (401k, 403b or 457b).

The only place you can rollover a Roth IRA is to another Roth IRA.
by Spirit Rider
Sun Oct 07, 2018 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: Possible to move an individual 401K?
Replies: 22
Views: 2778

Re: Possible to move an individual 401K?

KevinO wrote:
Sun Oct 07, 2018 12:26 pm
Spirit Rider, when I am completing the new provider's Adoption Agreement, should I use the existing plan's sequence number or should I assign a new sequence number? Thank you.
You are amending the plan. It is not a new plan. You should use the existing sequence number.
by Spirit Rider
Sun Oct 07, 2018 8:52 am
Forum: Personal Finance (Not Investing)
Topic: ACA premium deductibility
Replies: 2
Views: 342

Re: ACA premium deductibility

Our family has signed up for ACA starting Nov. 1 due to a loss of COBRA benefits. I am an S-Corp. officer that holds more than 2% of the outstanding shares. It's a small business. I pay myself W-2 wages and of course the net profits of the business find their way onto my taxes. After doing some rea...
by Spirit Rider
Sun Oct 07, 2018 8:20 am
Forum: Personal Consumer Issues
Topic: [Small, Portable, and Ductless Air Conditioners]
Replies: 60
Views: 3755

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

Reading other posts, it seems that you don't need a window for a window unit, they can be placed through the wall, although I don't know how the cost compares. This is not correct. Window units are designed such that a significant portion extends outside for heat dissipation. Thru-the-wall units ma...
by Spirit Rider
Sat Oct 06, 2018 8:58 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K contributions year of death
Replies: 4
Views: 339

Re: Solo 401K contributions year of death

I do not know of any direct cite one way or the other. However, a one participant 401k plan is still a 401k. A 401k employer would be required to follow the employee elective contribution election on any remaining compensation of a deceased participant. They would also be required to make employer c...
by Spirit Rider
Sat Oct 06, 2018 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Question
Replies: 11
Views: 1374

Re: Medicare Question

When was she 65?

Upon enrollment, Medicare part A coverage is automatically retroactive up to six months, but not before age 65.
by Spirit Rider
Fri Oct 05, 2018 10:28 pm
Forum: Investing - Help with Personal Investments
Topic: Selling Shares of UTMA Account
Replies: 44
Views: 3119

Re: Selling Shares of UTMA Account

I misspoke. All income (earned & unearned) is considered against the deductions.

I believe he could have $5,050 ($4,700 + $350) in LTCG and/or QDIV and with <= $6,950 in earned income and pay no taxes.
by Spirit Rider
Fri Oct 05, 2018 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: Self Employed Health Insurance Deduction
Replies: 18
Views: 1580

Re: Self Employed Health Insurance Deduction

Maybe I took that view because I didn't form an LLC or corporation and just filed individually with Schedule C. Could that matter? If I cheated myself you folks all owe me some money. It doesn't matter what the business entity type is. From the Form 1040 Instructions, Line 29 Self-Employed Health I...
by Spirit Rider
Fri Oct 05, 2018 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: Working as a freelance consultant: Sole proprietorship, SCorp or LLC?
Replies: 30
Views: 2650

Re: Working as a freelance consultant: Sole proprietorship, SCorp or LLC?

Basically, an S-Corp 2% shareholder-employee is considered an owner of the S-Corp. As an owner they can not receive pre-tax health & welfare benefits. They can only receive those benefits as after-tax compensation. You might ask, what is the benefit if I am getting it as taxable compensation? Can't ...
by Spirit Rider
Fri Oct 05, 2018 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: getting paid as a contractor
Replies: 33
Views: 2203

Re: getting paid as a contractor

IC is Independent Contractor. The standard term used by everyone including the IRS to describe what you are. There are no guarantees in IC work and in life. That is why you have a serious contract. Not a single page. To protect yourself and specify exactly how payments are to be made. It doesn't ens...
by Spirit Rider
Fri Oct 05, 2018 5:18 pm
Forum: Investing - Theory, News & General
Topic: 529 transfer, can I segregate my principal and earnings?
Replies: 8
Views: 564

Re: 529 transfer, can I segregate my principal and earnings?

You can not request the principal and earnings of a single investment. All distributions are allocated a proportional amount of all principal and earnings combined in the account. There is no ability to isolate investments, principal or earnings in a single 529 account. If you wanted to do that. You...
by Spirit Rider
Fri Oct 05, 2018 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Working as a freelance consultant: Sole proprietorship, SCorp or LLC?
Replies: 30
Views: 2650

Re: Working as a freelance consultant: Sole proprietorship, SCorp or LLC?

My CPA does run health insurance as above-the-line so there's no SE . He also insists the corporation can't fund my HSA as an above-the-line deduction, which I'm not as convinced about. Thanks. I'm not sure what you are trying to say with the bolded statement. The only way for an S-Corp 2% sharehol...
by Spirit Rider
Fri Oct 05, 2018 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: getting paid as a contractor
Replies: 33
Views: 2203

Re: getting paid as a contractor

You are in your stratosphere of being able to dictate terms. Who is dictating anything. I gave you my opinion. You can choose to listen or not. I am talking about you dictating terms to your client. That is precisely what a contract is. Specifying the terms and conditions under which a contractor w...
by Spirit Rider
Fri Oct 05, 2018 4:11 pm
Forum: Investing - Help with Personal Investments
Topic: Question Regarding SEP-IRA Distributions
Replies: 26
Views: 1088

Re: Question Regarding SEP-IRA Distributions

If a self-employed individual made a SEP IRA contribution in Jan 2018 for 2017 net self-employment earnings, but a deduction was not taken on their tax return. They can simply file a 2017 amended return in the next 10 days claiming the deduction on Form 1040 Line 28. Note: This is an adjustment to i...
by Spirit Rider
Thu Oct 04, 2018 11:02 pm
Forum: Personal Finance (Not Investing)
Topic: Self Employed Health Insurance Deduction
Replies: 18
Views: 1580

Re: Self Employed Health Insurance Deduction

My understanding, having been self employed for several years up to 2 years ago, is that the insurance must be in the name of the business. Not the business owner. I just had personal policies and never deducted it. Your understanding is not correct starting in 2005. IRS Chief Counsel Advice (CCA) ...