Search found 7798 matches

by Spirit Rider
Mon May 21, 2018 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution mechanics and strategy
Replies: 1
Views: 142

Re: Solo 401k contribution mechanics and strategy

By default a sole proprietor ship is just that. You are a self-employed sole proprietor and your spouse would be a W-2 employee. A second option is for the two of you to form a partnership, that requires more complexity and the filing of a partnership return. The third option is the use of a Qualifi...
by Spirit Rider
Mon May 21, 2018 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: Frontloading 401k Mistake
Replies: 18
Views: 1626

Re: Frontloading 401k Mistake

Here is what my TPA came back with: “I verified with our compliance department that there is no ability to shift deferrals between plans or to call the contributions to [First company]’s 401(k) plan an excess contribution. This participant made an affirmative election to contribution and it cannot ...
by Spirit Rider
Mon May 21, 2018 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: Frontloading 401k Mistake
Replies: 18
Views: 1626

Re: Frontloading 401k Mistake

Both employers could refuse to return the excess contributions. You would not be able to deduct them, have no way to establish basis and they would be taxable on withdrawal. Are you saying that the only penalty for leaving excess contributions in a tax deferred 401(k) is that you don't get the dedu...
by Spirit Rider
Mon May 21, 2018 11:16 am
Forum: Investing - Help with Personal Investments
Topic: Frontloading 401k Mistake
Replies: 18
Views: 1626

Re: Frontloading 401k Mistake

Yes, if matched employee after-tax contributions are not an option. You should try to determine what your current employer plan's policy is on requests to remove excess contributions after separation of employment. Otherwise it makes no sense to make contributions that get matched only to have the c...
by Spirit Rider
Mon May 21, 2018 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Combine IRA into 401k account
Replies: 1
Views: 165

Re: Combine IRA into 401k account

No, Roth IRA accounts can only be transferred/rolled over to another Roth IRA account.
by Spirit Rider
Mon May 21, 2018 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth in 2018. Has anything changed?
Replies: 19
Views: 5133

Re: Backdoor Roth in 2018. Has anything changed?

IRS regulations prohibit rolling over non-deductable basis from a traditional IRA to a qualified plan. This is the reason there is a special rule that treats assets rolled over from traditional IRAs to first come from pre-tax assets. This is what allows you to isolate basis in traditional IRA. The I...
by Spirit Rider
Mon May 21, 2018 10:31 am
Forum: Personal Finance (Not Investing)
Topic: child turning 18 - stop filing as dependent?
Replies: 23
Views: 1805

Re: child turning 18 - stop filing as dependent?

Even dependents get their standard deduction, they just aren't eligible for their personal exemption, and personal exemptions are worth $0 with the tax reform. Depending on the amount earned at the summer job, and assuming the daughter can be claimed as a dependent, the standard deduction may not b...
by Spirit Rider
Mon May 21, 2018 10:22 am
Forum: Investing - Help with Personal Investments
Topic: Frontloading 401k Mistake
Replies: 18
Views: 1626

Re: Frontloading 401k Mistake

The $18,500 is an employee elective contribution limit. Simply wiithdrawing the $14,500 contributions and earnings from the first employer after separation will achieve nothing. You must remove them as excess contributions . The problem is that they are not excess contributions until after the end o...
by Spirit Rider
Sat May 19, 2018 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: Max Out 457B and 403B at Hospital/University?
Replies: 20
Views: 1282

Re: Max Out 457B and 403B at Hospital/University?

As I said earlier, 457b contributions never come into play in limiting qualified plan contributions. They are a separate and distinct contribution space.
by Spirit Rider
Sat May 19, 2018 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Max Out 457B and 403B at Hospital/University?
Replies: 20
Views: 1282

Re: Max Out 457B and 403B at Hospital/University?

Am I right to assume that even if Hospital HR let me contribute to the Hospital 401A (doesn't appear on our HR website that we can) that I still should not contribute more than 1.5K due to having the 403B contribution at 17K. In other words isn't the rule that you combine employee contributions to ...
by Spirit Rider
Sat May 19, 2018 7:14 am
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 76
Views: 9263

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

There is a big difference between what Berkshire Hathaway invests in and what an individual should invest in. Even when talking about individual investors, I believe Warren Buffet's institutional bias overrides any benefit of listening. This is why I also don't believe that most people should emulat...
by Spirit Rider
Sat May 19, 2018 7:02 am
Forum: Investing - Help with Personal Investments
Topic: Max Out 457B and 403B at Hospital/University?
Replies: 20
Views: 1282

Re: Max Out 457B and 403B at Hospital/University?

Am I right to assume that even if Hospital HR let me contribute to the Hospital 401A (doesn't appear on our HR website that we can) that I still should not contribute more than 1.5K due to having the 403B contribution at 17K. In other words isn't the rule that you combine employee contributions to ...
by Spirit Rider
Sat May 19, 2018 6:51 am
Forum: Investing - Help with Personal Investments
Topic: Max Out 457B and 403B at Hospital/University?
Replies: 20
Views: 1282

Re: Max Out 457B and 403B at Hospital/University?

Does this new rule mean I can contribute 18k to both the VA and another 18k to the university 403b? It must be past Spirit Rider's bedtime so I'm going to pinch hit: Yeah, usually I would have been up, but tomorrow morning I am getting up at 5:30am to drive 10 hours to my youngest's apartment at sc...
by Spirit Rider
Fri May 18, 2018 9:49 pm
Forum: Investing - Help with Personal Investments
Topic: Max Out 457B and 403B at Hospital/University?
Replies: 20
Views: 1282

Re: Max Out 457B and 403B at Hospital/University?

Your 2017 thread mentions you are contributing to your 401k. Although the 457 and 403b have separate contribution limits, the 401k and the 403b do not. They share an 18.5k limit. Are you still contributing to the 401k? 401k and 403b plans always share the same 402g employee elective contribution li...
by Spirit Rider
Fri May 18, 2018 9:39 pm
Forum: Investing - Help with Personal Investments
Topic: Max Out 457B and 403B at Hospital/University?
Replies: 20
Views: 1282

Re: Max Out 457B and 403B at Hospital/University?

You're fine. The 402(g) and 457(e) limits (both 18.5k in 2018) are always separate. There is categorically no situation in which an individuals elective deferrals to 457s (summed across all one's employers) are required to be combined with those for 403b plans (again summed across one's all employe...
by Spirit Rider
Fri May 18, 2018 5:42 pm
Forum: Personal Consumer Issues
Topic: Attic HVAC: fan doesn't work in AUTO mode and AC on
Replies: 6
Views: 535

Re: Attic HVAC: fan doesn't work in AUTO mode and AC on

I agree with just frank: This is most likely a thermostat problem. There is only one fan control line coming out of the thermostat. It is either on or off. However, you can have some more advanced systems that control the fan asynchronously from the control of the condenser. This is usually done for...
by Spirit Rider
Fri May 18, 2018 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 104
Views: 6005

Re: Dave Ramsey it or keep low interest debt

20k car loan - 0% 38k car loan - 1.9% 226k mortgage - 3.625% Annual income 255k, Fully funded emergency fund (6 months) Right now I save 86k annually. Should I continue saving as is (via 401k, Roth, taxable) or save less to knock out these very low interest loans? I know the wiki advises keeping al...
by Spirit Rider
Fri May 18, 2018 1:37 pm
Forum: Investing - Theory, News & General
Topic: Possibility of EE bond rates changing?
Replies: 8
Views: 710

Re: Possibility of EE bond rates changing?

While no one can predict the future, based on past interest rate environments, does anyone care to guess when/under what conditions the Treasury might change the rate offered by EE bonds? Either the fixed rate, or the doubling time? We have not bought this year’s allotment. If there is a chance any...
by Spirit Rider
Fri May 18, 2018 8:27 am
Forum: Personal Consumer Issues
Topic: Mitsubishi wall air conditioner
Replies: 34
Views: 2029

Re: Mitsubishi wall air conditioner

How much cooling you experience depends solely on the cooling capacity installed. Your local climate makes a HUGE difference. I live in a very hot climate and we need around 12,000 BTU (one ton) per 120 sq ft of typical floor space. Either that is a typo or you live on Mercury. Even in US Zone 5, 2...
by Spirit Rider
Fri May 18, 2018 7:56 am
Forum: Investing - Help with Personal Investments
Topic: Maximum contribution for 403B, 457 & SEP IRA combined?
Replies: 14
Views: 1746

Re: Maximum contribution for 403B, 457 & SEP IRA combined?

This was a helpful post. I tested both Vanguard and Fidelity, and both were clueless about the 403(b) being included in a solo 401k's employer contribution limits. One follow up question: How about a 401(a) plan? Does this get aggregated with both the 403(b) and employer contribution of a 401(k) an...
by Spirit Rider
Fri May 18, 2018 7:27 am
Forum: Personal Consumer Issues
Topic: Mitsubishi wall air conditioner
Replies: 34
Views: 2029

Re: Mitsubishi wall air conditioner

Mitsubishi is but a brand. These are called ductless and/or mini splits ACs. The are very common in Asia and parts of Europe. I have had a private labeled Daikin mini split for more than twenty (20) years. Daikin is the largest AC manufacturer in the world. Most mini splits from well known American ...
by Spirit Rider
Thu May 17, 2018 9:22 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9877

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

My 401k is a safe-harbor plan, which I assume is why I've never been told that my contributions are restricted because of my income. Our 401K also allows us to do in-service rollovers, up to four times year. I usually end up contacting Fidelity about once a year to roll over the funds to a Roth IRA...
by Spirit Rider
Thu May 17, 2018 9:04 pm
Forum: Investing - Help with Personal Investments
Topic: How do I solve my SEP/solo-401(k)/tIRA (with basis)/backdoor Roth conundrum?
Replies: 12
Views: 515

Re: How do I solve my SEP/solo-401(k)/tIRA (with basis)/backdoor Roth conundrum?

On your ERISA point ... I had thought that this was one of the advantages of a 401(k), but I see now that state law appears to dictate. Which raises another question: which state law applies? I assume where I am resident (as opposed to where the account is held)? The DOL backed up by the courts hav...
by Spirit Rider
Thu May 17, 2018 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: HSA amount not deposited on date stated, then laid off
Replies: 1
Views: 278

Re: HSA amount not deposited on date stated, then laid off

Contact your state labor agency. Contact the U.S Department of Labor. Depending on the type of plan notices can be binding.
by Spirit Rider
Thu May 17, 2018 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: LLC taxed as an S Corp
Replies: 5
Views: 473

Re: LLC taxed as an S Corp

I plan on opening an indoor futsal facility in Houston. It is still in the prelim research phase so I am uncertain what net business profit will look like. I was just concerned with business structure (if i do end up moving forward). I also work for an oil and gas company in Houston, which is my ot...
by Spirit Rider
Thu May 17, 2018 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: How do I solve my SEP/solo-401(k)/tIRA (with basis)/backdoor Roth conundrum?
Replies: 12
Views: 515

Re: How do I solve my SEP/solo-401(k)/tIRA (with basis)/backdoor Roth conundrum?

I gather this would be possible if I were with Schwab as I could retroactively convert to a prototype SEP, but it seems I can't do this with Fidelity. If there is any way to do this, I would most likely choose this option, but my research suggests it is a no-go. Am I missing something? Since you ha...
by Spirit Rider
Thu May 17, 2018 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: HSA Benefits and FSAFEDS
Replies: 4
Views: 193

Re: HSA Benefits and FSAFEDS

^^^ The IRS re-revised the limit back up to $6900
by Spirit Rider
Thu May 17, 2018 10:23 am
Forum: Investing - Help with Personal Investments
Topic: Can i combine a regular IRA with a SEP IRA?
Replies: 5
Views: 412

Re: Can i combine a regular IRA with a SEP IRA?

You can consolidate them. Request a direct trustee transfer into the surviving IRA account. As a non reportable transfer you will not get a 1099R and will not need to report the transfer on your tax return. If you will not be making any further SEP IRA contributions, transfer the SEP balance into o...
by Spirit Rider
Thu May 17, 2018 10:14 am
Forum: Personal Finance (Not Investing)
Topic: LLC taxed as an S Corp
Replies: 5
Views: 473

Re: LLC taxed as an S Corp

LLCs often overpromise and underdeliver on liability protection. S-Corp's often overpromise and underdeliver on FICA taxes compared to SE taxes and if you already have substantial W-2 SS wages can cost you more . Then you have to factor in the new Section 199A 20% pass-thru deduction. Which the IRS ...
by Spirit Rider
Thu May 17, 2018 9:40 am
Forum: Investing - Help with Personal Investments
Topic: A Very Unique Inflation Fund
Replies: 11
Views: 1271

Re: A Very Unique Inflation Fund

I doubt this is an actively managed fund, just look at the expense ratio. SSGA is one of the largest providers of ETFs, Index Funds and CITs.

My guess is that this is just a fund of SSGA CITs consisting of:
  • TIPS CIT
  • Global REIT CIT
  • Global Natural Resources CIT
  • Commodities CIT
by Spirit Rider
Wed May 16, 2018 11:42 pm
Forum: Personal Finance (Not Investing)
Topic: Why can't you rollover a retirement account into another one that you no longer work at?
Replies: 33
Views: 1724

Re: Why can't you rollover a retirement account into another one that you no longer work at?

You would not want rollover your other 403b to Empower even if you could. You certainly should not rollover from the Empower 403b to an Empower IRA. That would be like; “jumping from the frying pan into the fire.” Empower is a wholly owned subsidy of Great-West Life & Annuity Insurance Company (GWL&...
by Spirit Rider
Wed May 16, 2018 4:13 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9877

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

Assume your 25k after tax contribution grows 10x to $250k when you retire, you will be taxed on the gain ($225k) as ordinary income tax rate which is around 35% say. But if you put that same $25k in taxable brokerage account and it grows to same $250k, your gains will be taxed at long term cap gain...
by Spirit Rider
Wed May 16, 2018 2:57 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9877

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

In my case I have (pre-tax) 401k, after tax 401k, rollover IRA and Roth IRA, and my plan allows me to move the after tax 401k money into Roth IRA. But only the contributions go into the Roth, the "gains" go to my rollover IRA (not 401 as i had written). When I moved the funds, i had ~$200 gain that...
by Spirit Rider
Wed May 16, 2018 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: Small Business Owner - how to build retirement wealth
Replies: 25
Views: 1945

Re: Small Business Owner - how to build retirement wealth

One more question: it seems like what I am seeing elsewhere is the profit sharing is in addition to the employer match, not instead of it. https://www.employeefiduciary.com/blog/new-comparability-401k-plans-are-they-right-for-your-small-business That is not correct. There is not even any mention of...
by Spirit Rider
Wed May 16, 2018 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: What's the Safest Easiest Way to Terminate an Old KEOGH at Fidelity
Replies: 10
Views: 318

Re: What's the Safest Easiest Way to Terminate an Old KEOGH at Fidelity

If by 401k at Vanguard you mean an Individual 401k. You already have a bit of a problem. A business can not maintain more than one 401k plan covering the same employees. You should have amended your existing Fidelity plan to the Vanguard i401k. You would have done that by simply selecting to amend a...
by Spirit Rider
Wed May 16, 2018 11:24 am
Forum: Investing - Help with Personal Investments
Topic: Can 529 lump sum split over several months?
Replies: 6
Views: 352

Re: Can 529 lump sum split over several months?

I hope this doesn't sound snarky, but there is really no reason to say much of anything. It is an Annual Exclusion. Here are some allusions in the Form 709 Instructions. From the 2017 Form 709 Instructions, Annual Exclusion, page 3. All of the gifts made during the calendar year to a donee are fully...
by Spirit Rider
Wed May 16, 2018 11:08 am
Forum: Investing - Help with Personal Investments
Topic: Small Business Owner - how to build retirement wealth
Replies: 25
Views: 1945

Re: Small Business Owner - how to build retirement wealth

I guess what puzzles me about this is beyond Boglehead world, I would think non deductible 401k contributions would be rare. I have read numerous threads in this forum about posters doing mega backdoor Roths. My assumption would be that some, perhaps most, are HCEs. I would think most of them would...
by Spirit Rider
Wed May 16, 2018 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Rollover beneficiary TSP to IRA?
Replies: 9
Views: 578

Re: Rollover beneficiary TSP to IRA?

My understanding is that a TSP account can be transferred by a beneficiary to an inherited IRA. Look at the "Tax Information" pdf here: https://www.tsp.gov/forms/deathBenefits.html An orginal beneficiary in any qualified plan can do a direct rollover to an Inherited. This is mandatory after the PPA...
by Spirit Rider
Wed May 16, 2018 10:11 am
Forum: Investing - Help with Personal Investments
Topic: Can 529 lump sum split over several months?
Replies: 6
Views: 352

Re: Can 529 lump sum split over several months?

IRS Form 709 is based on your total gifts for the tax year. It does not matter how many of what size the contributions.
by Spirit Rider
Wed May 16, 2018 10:03 am
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9877

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

You may wish to roll sooner / contribute in high % and convert quickly. Any gains inside the after-tax bucket typically end up on the 401k side. Your intent is correct, but it is important to be precise when talking about employee after-tax contributions. After-tax contributions and pre-tax earning...
by Spirit Rider
Wed May 16, 2018 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Small Business Owner - how to build retirement wealth
Replies: 25
Views: 1945

Re: Small Business Owner - how to build retirement wealth

Cash balance plan: Is a defined benefit plan that defines the promised benefit in terms of a stated account balance. This will have a lot of staff costs. What do you mean by staff costs? The employer contributions for all employees [*]Mega Backdoor Roth 401k: Is subject to Actual Contribution Perce...
by Spirit Rider
Tue May 15, 2018 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Small Business Owner - how to build retirement wealth
Replies: 25
Views: 1945

Re: Small Business Owner - how to build retirement wealth

Whole Life: This is never an efficient way to build wealth. Safe Harbor 401k: With the minimum 100%/3% and 50%/2% match would allow someone with the maximum plan compensation (2018 = $275K) to receive an $11K match. So for 2018 that would be $18.5K + $11K = $39.5K. At age 50, that will increase by ...
by Spirit Rider
Tue May 15, 2018 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: One time transfer from IRA to HSA
Replies: 4
Views: 453

Re: One time transfer from IRA to HSA

I would add that even if you were eligible it is almost always a bad idea: You get no deduction from the resulting transfer and you are giving up the opportunity to expand your tax-advantaged space. It has a testing period of the entire next year just like the last month rule. The only time this sho...
by Spirit Rider
Tue May 15, 2018 3:07 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9877

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

So I just asked about the after-tax contribution option (not Roth) and I don't have it at my company, but my wife does at hers. And at my wife's company, they have the ability to auto-deduct from payroll directly into the after-tax contribution, and once the contributions show up, immediately roll ...
by Spirit Rider
Tue May 15, 2018 10:28 am
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9877

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

The plan does not a appear to allow for in-plan conversions (though it does have Roth 401k option). But it does appear to allow for rollovers and it appears the after-tax segment of the account can be rolled over separately. So it seems like I could rollover after tax to an TIRA then convert the TI...
by Spirit Rider
Mon May 14, 2018 9:52 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9877

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

3. OPM/TSP will tell you that they just follow the IRS rules for 401K, but clearly they do not follow the entirety of the rules. They do follow all the IRS rules. They are simply choosing not to support an optional feature. Optional means just that, a plan sponsor has the option on whether to suppo...
by Spirit Rider
Mon May 14, 2018 8:11 pm
Forum: Forum Issues and Administration
Topic: The front page is ugly
Replies: 127
Views: 8888

Re: The front page is ugly

as a forum dedicated to pushing Vanguard as a preferred brokerage I find the outdated user interface to be perfectly on brand! You couldn't be more wrong. Bogleheads does no such thing. Sure a substantial percentage of Bogleheads have accounts at Vanguard, but their are many, many who have addition...
by Spirit Rider
Mon May 14, 2018 7:09 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9877

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

My company has a safe harbor plan and just this year added after tax contributions with in service rollovers. But then I found out that as an HCE, my after tax contributions will likely be returned to me next year. I plan to shovel a bunch of money in during Q4 and see what happens. Your plan will ...
by Spirit Rider
Mon May 14, 2018 6:59 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9877

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

For 2018 there is an $18.5K employee elective contribution limit. That is a combined limit of both traditional deferrals and designated Roth contributions. For 2018 there is a $55K annual addition limit of employee + employer contributions. The only way to increase contributions beyond employee elec...
by Spirit Rider
Mon May 14, 2018 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: FSA Limit, Changing Job
Replies: 3
Views: 359

Re: FSA Limit, Changing Job

Assume $1,500 is your FSA balance at company 2. Company 2 doesn't know about Company 1, so you COULD do $2,000. Come tax time, though you over shot your FSA amount and will have to pay tax on the $500 that should have have been tax-advantaged. Same goes for 401k contributions. $18,500 is the max ev...