Search found 7041 matches

by Spirit Rider
Tue Feb 20, 2018 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k Question
Replies: 11
Views: 549

Re: Solo 401k Question

Are there any benefits to keeping the money in the Roth 401k over the Roth IRA that I may not be aware of? Currently I don’t know of any. Asset Protection. Under ERISA, employer 401k plan's with common law employees receive full federal anti-alienation protection against creditors except for the IR...
by Spirit Rider
Tue Feb 20, 2018 2:41 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k Question
Replies: 11
Views: 549

Re: Solo 401k Question

Why are you in such a hurry to roll a Roth 401k to a Roth IRA. RMDs do not start until the year you turn 70 1/2.
by Spirit Rider
Tue Feb 20, 2018 2:36 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA and Roth 401k contributions....
Replies: 4
Views: 405

Re: Roth IRA and Roth 401k contributions....

It depends on if they have compensation after applying the foreign earned income exclusion, foreign housing exclusion and/or the foreign housing deduction.

No compensation, no contributions.
by Spirit Rider
Mon Feb 19, 2018 11:04 pm
Forum: Investing - Help with Personal Investments
Topic: CPA recommends to NOT contribute to SEP IRA
Replies: 7
Views: 1006

Re: CPA recommends to NOT contribute to SEP IRA

You should provide more information. You stated; "His annual salary is $90K." If that an actual W-2 salary in an S-Corp, what is the distribution? Or is that business profit in a sole proprietorship? What is his MAGI, tax filing status and marginal tax rate (fed/state/local)? Does he make the maximu...
by Spirit Rider
Mon Feb 19, 2018 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: Another Solo 401k Question and Addtl. Q's
Replies: 4
Views: 222

Re: Another Solo 401k Question and Addtl. Q's

To put PaddyMac's suggestions in a list with some additional information. Assuming you have the financial means and desire to do so, you could do the following: $11,000, open and fund $5,500 Roth IRA contributions for you and your wife by 04/17/18. This can even represent a portion of your emergency...
by Spirit Rider
Mon Feb 19, 2018 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA vs. SIMPLE IRA vs. Individual 401K
Replies: 6
Views: 242

Re: SEP IRA vs. SIMPLE IRA vs. Individual 401K

SEP IRA pre-tax employer contributions will interfere with Backdoor Roths. One-participant 401k pre-tax employer contributions will not interfere with Backdoor Roths and provide a location to rollover other pre-tax IRA balances to enable Backdoor Roths. If you really want to go crazy you can adopt a...
by Spirit Rider
Mon Feb 19, 2018 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up so spouse can contribute to Solo 401k
Replies: 17
Views: 1929

Re: Setting up so spouse can contribute to Solo 401k

My reading of QJV and Rev. Proc. 2002-69 is when both husband and wife are members of an LLC: - Outside a community property state: treat as partnership, file 1065 - In a community property state: (a) treat as partnership, file 1065; OR (b) treat as a sole prop under one of them, file one Schedule ...
by Spirit Rider
Mon Feb 19, 2018 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up Solo 401K for after tax contibution
Replies: 8
Views: 432

Re: Setting up Solo 401K for after tax contibution

In order for you to be a partner, the partnership agreement would have to be changed. I am not a CPA and partnerships are quite complicated. However, I believe you would still have to materially participate in the partnership for your distributions to be considered self-employment. High income partn...
by Spirit Rider
Mon Feb 19, 2018 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Funding a Roth with 401(a) distributions?
Replies: 1
Views: 89

Re: Funding a Roth with 401(a) distributions?

No, you need compensation to make IRA contributions.

However, if your income with be much lower before 65/67. You can make Roth conversions from your 401a. That will reduce RMDs starting for the year you turn 70.5.
by Spirit Rider
Mon Feb 19, 2018 12:51 am
Forum: Personal Consumer Issues
Topic: Sams Club vs Costco
Replies: 41
Views: 3317

Re: Sams Club vs Costco

Sam's Club has gone to a lot of effort to copy Costco. You do realize that Sam's Club was founded on April 7, 1983 before Costco on September 15, 1983. Costco then merged with Price Club (July 12, 1976) on October 22, 1993. So you could say that Sam's Club copied Price Club and Costco copied Price ...
by Spirit Rider
Mon Feb 19, 2018 12:18 am
Forum: Personal Finance (Not Investing)
Topic: Setting up so spouse can contribute to Solo 401k
Replies: 17
Views: 1929

Re: Setting up so spouse can contribute to Solo 401k

A 50:50 allocation is actually the most defensible allocation. Remember that both spouses must meet the material participation standard. The business would need almost $600K in business profit for two spouses split 50:50 to both make the maximum $55K employer contribution.
by Spirit Rider
Sun Feb 18, 2018 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up Solo 401K for after tax contibution
Replies: 8
Views: 432

Re: Setting up Solo 401K for after tax contibution

My business is incorporated as an LLC and taxed as a sole proprietor. That is good. DW's business is incorporated as an LLC and taxed as a partnership (has another business partner). That is also relatively good. However QJV is only allowed when the business is limited to the two spouses. It is only...
by Spirit Rider
Sun Feb 18, 2018 7:34 pm
Forum: Investing - Help with Personal Investments
Topic: Can I open a new individual (solo) 401k in this situation?
Replies: 2
Views: 293

Re: Can I open a new individual (solo) 401k in this situation?

Yes, you can move a one-participant 401k plan from one provider to another. You do not have to make contributions in the year you amend plans. If anyone asks to are still engaged in the business with the intention to make a profit, but did not have net profits for last year. It is not a lie, because...
by Spirit Rider
Sun Feb 18, 2018 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Did Backdoor Roth with existing Rollover IRA
Replies: 5
Views: 397

Re: Did Backdoor Roth with existing Rollover IRA

If you want to do a little more work, perform the following steps to avoid taxes for 2017 and 2018 if you have a non-IRA employer plan (401k, 403b, etc...) that accepts pre-tax IRA rollovers: Complete an amended 2016 Form 8606 reflecting the correct pro-rata. A majority of the non-deductible basis w...
by Spirit Rider
Sun Feb 18, 2018 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up Solo 401K for after tax contibution
Replies: 8
Views: 432

Re: Setting up Solo 401K for after tax contibution

I you have to apologize for the length or your post, I don"t know what penance I should have to perform. You: You will need to have a custom one-participant 401k plan. None of the mainstream providers support after-tax contributions. Also, you will not be able to contribute the full 50K. Here are so...
by Spirit Rider
Sun Feb 18, 2018 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Excess Contribution
Replies: 3
Views: 224

Re: HSA Excess Contribution

The CSR who told you this is wrong and your previous employer is correct. The HSA account owner is the one who requests/receives the return of excess contributions and earnings. A previous or current owner has no say in this. The only time the employer can request a return of their own contributions...
by Spirit Rider
Sun Feb 18, 2018 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up so spouse can contribute to Solo 401k
Replies: 17
Views: 1929

Re: Setting up so spouse can contribute to Solo 401k

To my knowledge the IRS has never specifically addressed this in guidance or publications. The CPAs I trust suggest having a QJV agreement like you would have a partnership agreement. This agreement could specify a QJV allocation to be; fixed interest (50:50 default), based on hours worked, or any ...
by Spirit Rider
Sat Feb 17, 2018 9:28 pm
Forum: Investing - Theory, News & General
Topic: Target Retirement Fund Question
Replies: 20
Views: 1483

Re: Target Retirement Fund Question

Research Vanguard’s structure. The short answer to your question is that they’re the most likely to remain unchanged of any entity currently offering target date retirement funds. Past history would refute that. Vanguard has made more changes to their target date fund's asset allocations more frequ...
by Spirit Rider
Sat Feb 17, 2018 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: HSA questions
Replies: 4
Views: 487

Re: HSA questions

You should keep both the identity/proof of the qualified medical expense (bill, EOB, etc...) and the proof of payment (credit account/receipts, bank account/checks, HSA account if direct, etc.) until three years after the tax filing deadline of the year of reimbursement.
by Spirit Rider
Sat Feb 17, 2018 8:55 pm
Forum: Investing - Theory, News & General
Topic: Mega backdoor: in Plan Roth to Roth IRA
Replies: 6
Views: 416

Re: Mega backdoor: in Plan Roth to Roth IRA

Are you sure that your plan allows in-service withdrawals from Roth 401k ? Most do not. My Megacorp plan allows in-service withdrawals from non-Roth after-tax 401k contributions/balances, or in-plan rollovers of these to Roth 401k, but not in-service withdrawals from Roth 401k. I would have to term...
by Spirit Rider
Sat Feb 17, 2018 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: Form 8606 on H and R block
Replies: 7
Views: 374

Re: Form 8606 on H and R block

Did you report the traditional IRA contribution and indicate that it was non-deductible contribution. That is the beginning of a Backdoor Roth. Then you did a Roth conversion.
by Spirit Rider
Sat Feb 17, 2018 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Unable to grant full agent authorization online [for IRAs]
Replies: 2
Views: 173

Re: Unable to grant full agent authorization online [for IRAs]

Think about it.

Would an account owner really want an IRA custodian to allow full agent authorization online with simply a login? Who can then drain the entire account. Or would they want an in person verification that this change is authorized?
by Spirit Rider
Sat Feb 17, 2018 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: HSA 'last month rule'
Replies: 6
Views: 1292

Re: HSA 'last month rule'

You are correct on both counts.
by Spirit Rider
Fri Feb 16, 2018 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: Moving my simple IRA. Investment options for my children?
Replies: 10
Views: 417

Re: Moving my simple IRA. Investment options for my children?

This forum is after all named after John Bogle the founder of Vanguard. Probably the majority of forum members are Vanguard devotees. However, the forum has become more about a philosophy than Vanguard as an institution. There is a significant number of members who invest in Fidelity, Schwab and/or,...
by Spirit Rider
Fri Feb 16, 2018 1:18 am
Forum: Personal Consumer Issues
Topic: Getting healthcare retroactively covered under COBRA?
Replies: 8
Views: 750

Re: Getting healthcare retroactively covered under COBRA?

Retroactive coverage is not a lie. You have a fundamental misunderstanding of what "retroactive" means, "effective on a prior date". COBRA does provide the option of "retroactive coverage" to the date when your prior coverage terminated. If your coverage didn't terminate there would be nothing to be...
by Spirit Rider
Wed Feb 14, 2018 8:22 pm
Forum: Personal Consumer Issues
Topic: Keep crows off of chimney caps
Replies: 29
Views: 1403

Re: Keep crows off of chimney caps

I vote shoot them. :) Not very safe or practical in a residential neighborhood. Maximum range of bird shot is 200 - 250 yards. Most states have laws restricting the discharge of any firearm within 500 yards of a dwelling. Many municipalities go further in prohibiting the discharge within the entire...
by Spirit Rider
Wed Feb 14, 2018 7:19 pm
Forum: Personal Consumer Issues
Topic: L.L. Bean, Citing Abuse, Tightens Its Generous Policy on Returns
Replies: 41
Views: 4382

Re: L.L. Bean, Citing Abuse, Tightens Its Generous Policy on Returns

Just caught the news: LL Bean sued for giving up this policy. https://nypost.com/2018/02/14/l-l-bean-sued-for-scrapping-its-unlimited-return-policy/ Interesting, this is the first time I have seen anything from LL Bean stating that the change in policy only applies to products purchased on after 02...
by Spirit Rider
Wed Feb 14, 2018 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k Question - Low Self Employment Income
Replies: 17
Views: 1306

Re: Solo 401k Question - Low Self Employment Income

Interesting. Thanks for that. I suppose for most people it wouldn't be a factor since it would mean giving up a match, but definitely something good to know for those with a solo 401k and low income. P.S. I found a concise reference in plain English. 2017 General Instructions for Forms W-2 and W-3,...
by Spirit Rider
Tue Feb 13, 2018 10:53 pm
Forum: Investing - Help with Personal Investments
Topic: streamline mega backdoor roth conversions?
Replies: 5
Views: 484

Re: streamline mega backdoor roth conversions?

You might have another option. Is the IRR online or easier. Also, if your plan allows IRRs and in-service rollovers, it quite likely allows in-service rollovers of IRRs from after-tax accounts. If so, the option might be to do IRRs each pay period and then do a rollover periodically. If you are an H...
by Spirit Rider
Tue Feb 13, 2018 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA and contribution deadline question
Replies: 8
Views: 503

Re: Roth IRA and contribution deadline question

The tax software also tracks your IRA contributions including a Roth IRA for the Saver's Credit. To answer your basic question. Your tax return and your (traditional/Roth IRA contribution deadlines are the same date, but the actual dates are independent. So even in the case of a traditional IRA, you...
by Spirit Rider
Tue Feb 13, 2018 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: Avoiding 401K Financial Advisor Fees
Replies: 1
Views: 216

Re: Avoiding 401K Financial Advisor Fees

You need to give us more information. Are you referring to funds from those brokerages or accounts there. If the latter Schwab and Fidelity offer index funds comparative to Vanguard. At all three you can purchase Vanguard ETFs. Also, is the Financial Advisor optional or a mandatory component of the ...
by Spirit Rider
Tue Feb 13, 2018 10:15 pm
Forum: Investing - Help with Personal Investments
Topic: SCorp and Roth IRA
Replies: 3
Views: 237

Re: SCorp and Roth IRA

Anyone can make contributions to a traditional or Roth IRA account by direct deposit from their payroll. This no different than sending a portion of your net payroll to more than one bank account. All you need to do is provide a routing/account number and amount/pay period to your employer. I do not...
by Spirit Rider
Tue Feb 13, 2018 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: Employer Sponsored ROTH IRA to non Employer ROTH IRA
Replies: 10
Views: 628

Re: Employer Sponsored ROTH IRA to non Employer ROTH IRA

While I have never actually seen one in the wild, but there is such a thing as a "deemed IRA" outlined in 408q. It is a sub account under a qualified plan that is subject to IRA rules. The intent was to allow participants to have all their retirement accounts in one place and use the plan's investme...
by Spirit Rider
Tue Feb 13, 2018 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k Question - Low Self Employment Income
Replies: 17
Views: 1306

Re: Solo 401k Question - Low Self Employment Income

For future reference, do you happen to know where the active participant requirement is laid out? The IRA deduction income limitation is stated in 26 U.S. Code § 219 - Retirement savings, (g) Limitation on deduction for active participants in certain pension plans. Active participant is defined in ...
by Spirit Rider
Tue Feb 13, 2018 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: UGMA vs UTMA vs Vanguard Confusion
Replies: 6
Views: 549

Re: UGMA vs UTMA vs Vanguard Confusion

VG rep confirms that any UTMA tax consequences go to the parents no matter who funds it. That may procedurally be true, but UTMA tax consequences always fall on the beneficiary. The parents may pay the taxes and even include them on their return. They are always taxable to the beneficiary. This can...
by Spirit Rider
Tue Feb 13, 2018 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: HSA section in Turbotax online version & Form-8889
Replies: 19
Views: 1051

Re: HSA section in Turbotax online version & Form-8889

More importantly, I can't believe I used weather instead of whether and effect instead of affect in the same sentence. I'm really slipping.
by Spirit Rider
Tue Feb 13, 2018 2:10 am
Forum: Personal Finance (Not Investing)
Topic: ? on new 2018 ax deduction changes re mileage and property
Replies: 10
Views: 425

Re: ? on new 2018 ax deduction changes re mileage and property

I would be jumping on this now if I was employed in such a job. They would either compensate me for the deduction loss or I would be looking elsewhere.
by Spirit Rider
Tue Feb 13, 2018 2:06 am
Forum: Investing - Help with Personal Investments
Topic: UGMA vs UTMA vs Vanguard Confusion
Replies: 6
Views: 549

Re: UGMA vs UTMA vs Vanguard Confusion

You can not choose between a UGMA and a UTMA. It is based on your state law. Only South Carolina has not adopted UTMA accounts to supersede UGMA accounts. A custodial account is necessary for any accounts for minors. What you choose to use them for is irrelevant. In fact if the family is on the bubb...
by Spirit Rider
Tue Feb 13, 2018 1:48 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k Question - Low Self Employment Income
Replies: 17
Views: 1306

Re: Solo 401k Question - Low Self Employment Income

Something else to consider is that if your wife starts a solo 401k she will then be covered by a retirement plan at work. Your comment was probably meant in the context of actually making the contribution, but for clarity "covered" is an inexact term. Unfortunately even the IRS uses this in places....
by Spirit Rider
Tue Feb 13, 2018 1:33 am
Forum: Investing - Help with Personal Investments
Topic: SEP and 401k Max Contribution
Replies: 3
Views: 387

Re: SEP and 401k Max Contribution

I should have used the more correct term "unaffiliated" employer. It isn't just family. There are what the IRS considers controlled groups and affiliated service groups. The former about sole or joint ownership and the latter is about ownership and services. If your job entails providing services an...
by Spirit Rider
Mon Feb 12, 2018 11:37 am
Forum: Personal Finance (Not Investing)
Topic: HSA section in Turbotax online version & Form-8889
Replies: 19
Views: 1051

Re: HSA section in Turbotax online version & Form-8889

This surcharge should either be a separate deduction on your pay stub or including in the health insurance deduction. You should be able to determine this from your previous open enrollment. It either case it should be reflected in your W-2 Box 12 Code DD. However, it is irrelevant for your tax retu...
by Spirit Rider
Mon Feb 12, 2018 10:41 am
Forum: Personal Finance (Not Investing)
Topic: 529 distribution (1099Q) on parent or child's tax return?
Replies: 4
Views: 342

Re: 529 distribution (1099Q) on parent or child's tax return?

Any 1099-Q tax reporting is based on the destination of the funds. Only distributions to the owner are reported for the owner. Distributions to the beneficiary or direct payments to the school, off-campus housing, etc.. are reported for the beneficiary. Forms 1098-T and 1098-E are reported for the s...
by Spirit Rider
Sun Feb 11, 2018 10:49 pm
Forum: Personal Finance (Not Investing)
Topic: HSA section in Turbotax online version & Form-8889
Replies: 19
Views: 1051

Re: HSA section in Turbotax online version & Form-8889

There is nothing for you to correct. This is your employer's error. Regardless of weather your employer corrects this or not it, it should not effect your return unless as I said earlier you made an excess contribution. The same is true for 2016. If there was no excess contribution, there is no reas...
by Spirit Rider
Sun Feb 11, 2018 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Passthrough deduction affected by solo 401k?
Replies: 8
Views: 458

Re: Passthrough deduction affected by solo 401k?

Forbes actually has had articles with different points of view on this issue. I think we need definitive IRS guidance on when the 50% of W-2 limitation applies.
by Spirit Rider
Sun Feb 11, 2018 7:32 pm
Forum: Personal Finance (Not Investing)
Topic: HSA section in Turbotax online version & Form-8889
Replies: 19
Views: 1051

Re: HSA section in Turbotax online version & Form-8889

I was looking at our HSA situation as well. My company makes a direct contribution (not through payroll) every January and then I fully fund my HSA the difference of their contribution via deductions out of every paycheck. My W-2 Boz 12 W only has the contributions I made through these deductions, ...
by Spirit Rider
Sun Feb 11, 2018 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Family expecting “comps”
Replies: 38
Views: 4704

Re: Family expecting “comps”

Actually, I don't see a problem with a friends and family discount. After all, many employers offer discounts to employees and their friends and family. This should not necessarily be an entitlement, an option that the business gets to offer if it feels like it. For instance, my ex BIL offered cost ...
by Spirit Rider
Sun Feb 11, 2018 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: kiddie tax rules for 2018
Replies: 2
Views: 480

Re: kiddie tax rules for 2018

1) The amount after the dependents $1,050 standard deduction and the amount $1,050 taxed at the dependent's rate was changed from parent's rate to trust tax rates $2,000: ordinary dividends subject to ordinary income tax rates. $4,000: qualified dividends and capital gains subject to capital gains t...
by Spirit Rider
Sun Feb 11, 2018 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Passthrough deduction affected by solo 401k?
Replies: 8
Views: 458

Re: Passthrough deduction affected by solo 401k?

Also, it is still not clear if sole proprietors with no W-2 payroll can take the deduction. A plain reading of the text of the law limits this deduction to 50% of the W-2 payroll. Initially, the analysis was only applying to S-Corp's because shareholder-employees are paid as W-2 employees. However t...
by Spirit Rider
Sun Feb 11, 2018 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Can a sole proprietor have a separate 401k plan from employees?
Replies: 2
Views: 248

Re: Can a sole proprietor have a separate 401k plan from employees?

No. It is an IRS requirement that you can not maintain a one-participant 401k plan if you have eligible employees. Once you have such employees the plan is no longer in compliance and the plan is in error. The only remedies are to either amend the plan to a plan allowing eligible employees or termin...