Search found 9463 matches

by Spirit Rider
Thu Jan 17, 2019 10:00 am
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 860
Views: 64975

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

It was/is proper as long as the HSA custodian authorized the transfer. This was often the biggest delay in getting it accomplished. When this all started to months ago, I thought this option was nuts on Fidelity's part knowing how bad some HSA custodians are. I can't even begin to imagine the thousa...
by Spirit Rider
Thu Jan 17, 2019 9:30 am
Forum: Investing - Help with Personal Investments
Topic: Sep IRA and Solo 401k
Replies: 28
Views: 1222

Re: Sep IRA and Solo 401k

Yes. The "P" indicates that any earnings are taxable in the year the excess contributions were made. The "1" indicates that the earnings are an early distribution with no known exception. This means that the earnings will also be subject to the 10% early withdrawal penalty. Reference: Instructions f...
by Spirit Rider
Thu Jan 17, 2019 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Using Medicare while having employer insurance
Replies: 4
Views: 402

Re: Using Medicare while having employer insurance

I don't understand why the OP's dad would sign up for Medicare Parts B and D and not Part A while still working with employer sponsored coverage The Part B premium is $135.50 and his IRMAA could be $54.10 - $325 extra a month if his MAGI is > $85K/$170K S/MFJ. Part D could also be subject to IRMAA o...
by Spirit Rider
Thu Jan 17, 2019 8:22 am
Forum: Investing - Help with Personal Investments
Topic: Roth contribution with the HEART act
Replies: 8
Views: 749

Re: Roth contribution with the HEART act

Not necessarily, as you noted it is by registration.

If there are children, you could do one by yourself and one with each child as a beneficiary.
by Spirit Rider
Thu Jan 17, 2019 12:53 am
Forum: Personal Finance (Not Investing)
Topic: How do I indicate an HSA rollover contribution on Fidelity's website UI? (screenshot included)
Replies: 11
Views: 491

Re: How do I indicate an HSA rollover contribution on Fidelity's website UI? (screenshot included)

You'll need to use a deposit form. Make sure to indicate '60-day rollover' as well as the HSA current year or previous year. You do NOT indicate current/previous year contribution. Those check boxes are for respective direct contributions, which are mutually exclusive from each other and a rollover...
by Spirit Rider
Thu Jan 17, 2019 12:22 am
Forum: Personal Finance (Not Investing)
Topic: How do I indicate an HSA rollover contribution on Fidelity's website UI? (screenshot included)
Replies: 11
Views: 491

Re: How do I indicate an HSA rollover contribution on Fidelity's website UI? (screenshot included)

You can not do a rollover online. You have to mail a paper deposit form designating it as a rollover contribution.
by Spirit Rider
Wed Jan 16, 2019 6:02 pm
Forum: Investing - Help with Personal Investments
Topic: Mega Backdoor Mechanics Clarification - Check Payable to Me
Replies: 16
Views: 1201

Re: Mega Backdoor Mechanics Clarification - Check Payable to Me

Why would there be any pretax portion of a mega backdoor roth aside from gains on the after tax portion? I've never had any witholdings on the gains of after tax money. Probably because you have always done direct rollovers which are not subject to the 20% withholding on taxable earnings, but a che...
by Spirit Rider
Wed Jan 16, 2019 5:55 pm
Forum: Investing - Help with Personal Investments
Topic: Unusual Check from Fidelity
Replies: 8
Views: 745

Re: Unusual Check from Fidelity

Does your daughter pay attention to her mail/email. A 401k must provide at least a 30-day notice before a force-out. To allow the option of a direct rollover without the 20% withholding. Does she remember any such notice and ignored it. As noted she must make up any withholding to do the rollover. W...
by Spirit Rider
Wed Jan 16, 2019 9:54 am
Forum: Personal Finance (Not Investing)
Topic: 403(b) plan - did we over-contribute in 2018
Replies: 5
Views: 245

Re: 403(b) plan - did we over-contribute in 2018

Excess deferrals to a single employer is a plan failure and is the employer's responsibility to correct. Excess deferrals caused by deferrals to more than one employer are the employee's responsibility to correct. She should wait until she receives her W-2, but I would proactively contact the employ...
by Spirit Rider
Wed Jan 16, 2019 12:38 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) - Separate EIN Should Be Used for 5500EZ Filing
Replies: 12
Views: 630

Re: Solo 401(k) - Separate EIN Should Be Used for 5500EZ Filing

To my knowledge, there is no place to write the IRS to get such an answer.
by Spirit Rider
Wed Jan 16, 2019 12:36 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) - Separate EIN Should Be Used for 5500EZ Filing
Replies: 12
Views: 630

Re: Solo 401(k) - Separate EIN Should Be Used for 5500EZ Filing

I'm also not sure if the plan custodian reports the plan balance to the IRS and they'd want the same number to match them up. That seems redundant but maybe. 401k custodians do not report any contribution or balance information. There is no Form 5498 reporting like there is for IRA/HSA accounts. Th...
by Spirit Rider
Tue Jan 15, 2019 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: Car / Umbrella and teen driver (California)
Replies: 14
Views: 628

Re: Car / Umbrella and teen driver (California)

Driving laws are highly state-dependent, but in most states learning drivers are not separately insured.

In my state there must be a lincensed driver >= age 25 in the front passenger seat at all times. Any tickets or accidents are assessed to the licensed driver.
by Spirit Rider
Tue Jan 15, 2019 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA or Build HSA?
Replies: 6
Views: 528

Re: Roth IRA or Build HSA?

An HSA has strings on distributions.

It is better to make Roth IRA contributions before unmatched HSA contributions. Also, it is better to take qualified HSA distributions before qualified Roth distributions.
by Spirit Rider
Tue Jan 15, 2019 9:25 am
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 860
Views: 64975

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Even if you just stick the money in a MMF, you are going to earn a substantially better interest rate than most HSA custodians. Fidelity still charges $48/participant annually for employer sponsored plans. This is more than most HSA custodians and unless they were previously size restricted, there i...
by Spirit Rider
Tue Jan 15, 2019 8:56 am
Forum: Personal Finance (Not Investing)
Topic: SEP IRA vs Solo 401k - What am I not getting?
Replies: 28
Views: 1016

Re: SEP IRA vs Solo 401k - What am I not getting?

Under current IRS rules a SEP IRA can be rolled into any IRA, including a >= 2 year SIMPLE IRA. Such a balance when rolled over to a traditional IRA retains unlimited federal bankruptcy protection. It used to be required to rollover to a Rollover IRA with no comingling with traditional IRA contribut...
by Spirit Rider
Mon Jan 14, 2019 11:40 pm
Forum: Investing - Help with Personal Investments
Topic: Sep IRA and Solo 401k
Replies: 28
Views: 1222

Re: Sep IRA and Solo 401k

The Form 1099-R box 7 code indicates the type of distribution. Codes 8 and P indicate the return of excess contributions.

Contributions are reported on Form 5498-R.
by Spirit Rider
Mon Jan 14, 2019 6:23 pm
Forum: Investing - Theory, News & General
Topic: Taxable vs Nontaxable retirement savings: is there an ideal ratio?
Replies: 10
Views: 1501

Re: Taxable vs Nontaxable retirement savings: is there an ideal ratio?

I use my order based on likely tax liability Equities will taxable on dividends and capital gains. Qualified dividends and capital gains are subject to much lower capital gains tax rates. Capital gains from sales are only on the gains. Taxes on tax-deferred distributions are on the entire amount and...
by Spirit Rider
Mon Jan 14, 2019 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA vs Solo 401k - What am I not getting?
Replies: 28
Views: 1016

Re: SEP IRA vs Solo 401k - What am I not getting?

My kid can’t do a solo 401k, she has non related employees. While my husband can have Solo 401k. If she has eligible employees, she is most likely better off with a SIMPLE IRA. She has to give the exact same employer contribution percentage to all eligible employees with a SEP IRA. With a SIMPLE IR...
by Spirit Rider
Mon Jan 14, 2019 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA vs Solo 401k - What am I not getting?
Replies: 28
Views: 1016

Re: SEP IRA vs Solo 401k - What am I not getting?

Another reason to use SEP instead of Solo 401k is: You have a full-time job and you already max out your 401k. You can use SEP for your side job. In such a circumstance nothing prevents you from making the same exact contribution to a one-participant 401k. The SEP IRA interferes with a Backdoor Roth
by Spirit Rider
Mon Jan 14, 2019 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA vs Solo 401k - What am I not getting?
Replies: 28
Views: 1016

Re: SEP IRA vs Solo 401k - What am I not getting?

Am I correct, a SEP limits contributions to 25% of income and $56k total, but the 401k limits to $56k (plus catch up) without the 25% limit? No limit at all? There are different limits Employee elective contributions can be up to 100% of compensation not to exceed $19K in 2019. Employer contributio...
by Spirit Rider
Mon Jan 14, 2019 2:24 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces said in 2016 that IRS auditors disapproved of backdoor Roth IRAs
Replies: 249
Views: 40777

Re: Michael Kitces said in 2016 that IRS auditors disapproved of backdoor Roth IRAs

I'd like to suggest that this thread has run it's course and should be locked. Michael Kitces had an opinion back in 2016. Few people here agreed with it then, but at least it was a legitimate discussion point at the time. Some people, even one I respect greatly, chose to follow Kitces' advice. It ...
by Spirit Rider
Mon Jan 14, 2019 2:20 pm
Forum: Investing - Theory, News & General
Topic: Taxable vs Nontaxable retirement savings: is there an ideal ratio?
Replies: 10
Views: 1501

Re: Taxable vs Nontaxable retirement savings: is there an ideal ratio?

1) Tax-Free: Roth IRA, Roth401k, HSA, 529 plans 2) Tax-deferred: Trad IRA, Trad 401k, 403B. 3) Taxable: Brokerage, Saving. I re-order by potential tax liability and delineate a little further: Potentially Tax-Free Tax-Free (Roth IRA and Roth 401k) Tax-deferred/likely Tax-Free (HSA and 529) Potentia...
by Spirit Rider
Mon Jan 14, 2019 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA vs Solo 401k - What am I not getting?
Replies: 28
Views: 1016

Re: SEP IRA vs Solo 401k - What am I not getting?

There is another potential benefit for some individuals.

SEP IRA employer contributions can be distributed immediately. This means you can do a rollover or even do a Roth conversion.
by Spirit Rider
Mon Jan 14, 2019 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: self-employed workers comp insurance
Replies: 2
Views: 181

Re: self-employed workers comp insurance

This is entirely dependent on the state and your personal circumstances. Your best bet is probably to compare any policies from professional organizations or an independent insurance broker. Some companies are reluctant to insure the self-employed and prices may reflect that.
by Spirit Rider
Mon Jan 14, 2019 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: 529 plan for non dependent daughter
Replies: 2
Views: 220

Re: 529 plan for non dependent daughter

Dependent status has no bearing on 529 plans, but you may have made the less optimal choice tax wise. If she is no longer a dependent, she would not be subject to the Kiddie Tax rules. It likely would have been better for her to have received the distribution. The taxable portion of the distribution...
by Spirit Rider
Mon Jan 14, 2019 10:46 am
Forum: Investing - Theory, News & General
Topic: How to avoid temptation to buy hot stocks or bitcoin?
Replies: 63
Views: 4177

Re: How to avoid temptation to buy hot stocks or bitcoin?

"The burned hand teaches best." That’s been my experience. It’s the beat-down that convinced me not to do something again. The worst thing that can happen with speculating like gambling, is that you win big. It acts like a drug and generates euphoria. That "high" is a very powerful motivator. Once ...
by Spirit Rider
Mon Jan 14, 2019 10:07 am
Forum: Investing - Help with Personal Investments
Topic: RE: What to do with previous solo 401k?
Replies: 7
Views: 471

Re: RE: What to do with previous solo 401k?

Much thanks for all confirming it is okay to rollover to IRA. All the money is traditional (employEE and employER) so all monies will be going to traditional IRA. You likely can not just rollover the TD Ameritrade Individual 401k to an IRA unless you are >= age 59 1/2. A one-participant 401k is sti...
by Spirit Rider
Sun Jan 13, 2019 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: Part time work and taxes
Replies: 5
Views: 566

Re: Part time work and taxes

Should I just request that the gig employer treat me as a contractor and 1099 me? Is that proper from an IRS perspective? My first pay would come before I have maxed out SS payments in my day job. You can't just request an IC classification. The employer/client must determine this based IRS guideli...
by Spirit Rider
Sun Jan 13, 2019 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Maximize Retirement Saving for Self-Employed Spouse
Replies: 3
Views: 220

Re: Maximize Retirement Saving for Self-Employed Spouse

A small point, self-employed individuals do not pay FICA. Her maximum one-participant 401k contributions are based on her net self-employment earnings (business profit - 1/2 SE tax). If she makes the maximum traditional one-participant 401k deferrals. She can still make a Spousal Roth IRA contributi...
by Spirit Rider
Sun Jan 13, 2019 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax and MAGI Question
Replies: 3
Views: 406

Re: Turbo Tax and MAGI Question

@kaneohe has given you a link to the Roth MAGI.

There are several different MAGIs, what you have described is the ACA MAGI.
by Spirit Rider
Sat Jan 12, 2019 10:46 am
Forum: Investing - Help with Personal Investments
Topic: IRA Contributions AFTER 70 1/2 years of age??
Replies: 18
Views: 2842

Re: IRA Contributions AFTER 70 1/2 years of age??

You must have "compensation" to make IRA contributions.

This is things like wages, commission, self-employment, etc...

See "What is compensation?" in IRS Publication 590-A
by Spirit Rider
Sat Jan 12, 2019 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Rollover - why checks instead of wiring funds?
Replies: 36
Views: 1620

Re: Rollover - why checks instead of wiring funds?

I would even be surprised if they actually mail the check to Vanguard. The protocol in the vast majority of cases is to make the check payable to Vanguard FBO your account and mail it to you for forwarding to Vanguard. Generally, the only time the rollover is electronic is if the Administrator/Recor...
by Spirit Rider
Thu Jan 10, 2019 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: Did I fill my form 8889 HSA tax contribution incorrectly?
Replies: 2
Views: 205

Re: Did I fill my form 8889 HSA tax contribution incorrectly?

(Although I am not sure what it means by "through cafeteria plan"?) A "cafeteria plan" is another name for a Section 125 Health and Welfare plan that allows pre-tax payments and contributions. I am guessing Line 2 should be 2000 Line 9 should be 500 Nope; 0 and $2500. You HSA contributions are actu...
by Spirit Rider
Thu Jan 10, 2019 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Can I make HSA contributions for 2018 (last year)?
Replies: 9
Views: 825

Re: Can I make HSA contributions for 2018 (last year)?

Super, thanks everyone. I will be making the contributions then. This is my first time making a HSA contribution since I always had a non-qualifying health plan before. Are there forms that the HSA provider usually sends to claim the tax deduction at filing time, or do I have to manually report it ...
by Spirit Rider
Thu Jan 10, 2019 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Can I make HSA contributions for 2018 (last year)?
Replies: 9
Views: 825

Re: Can I make HSA contributions for 2018 (last year)?

There is no compensation requirement to make HSA contributions. There is not even any taxable income requirement to make HSA contributions, but the higher the marginal tax rate, the more valuable the deduction.
by Spirit Rider
Thu Jan 10, 2019 10:48 am
Forum: Personal Consumer Issues
Topic: Recommendations for a 9mm handgun
Replies: 171
Views: 12584

Re: Recommendations for a 9mm handgun

I worry that leaving clips loaded and untouched for too long will weaken the springs so try to shoot regularly and only leave them half loaded when idle. You must practice! Quick target acquisition isn't always easy especially if it's moving. Basic terminology: Modern pistols have removal magazines...
by Spirit Rider
Wed Jan 09, 2019 11:05 pm
Forum: Investing - Help with Personal Investments
Topic: Changing mistaken Roth-IRA contribution to SEP-IRA?
Replies: 25
Views: 1039

Re: Changing mistaken Roth-IRA contribution to SEP-IRA?

Alan S. was 100% correct. You can not recharacterize any IRA (traditional or Roth) contribution as a SEP IRA contribution. As alluded to, what Vanguard was describing was recharacterizing a Roth IRA contribution to a traditional IRA contribution inside a SEP IRA account. These are two very different...
by Spirit Rider
Wed Jan 09, 2019 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Designating a Roth IRA beneficiary
Replies: 3
Views: 214

Re: Designating a Roth IRA beneficiary

Probate is the least of the problems. The first answer is to name someone, anyone ASAP. You can always change it the next day. You should never leave a retirement account without a designated live person as beneficiary. It places the valuable lifetime distribution option in jeopardy. Depending on th...
by Spirit Rider
Wed Jan 09, 2019 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: Changing mistaken Roth-IRA contribution to SEP-IRA?
Replies: 25
Views: 1039

Re: Changing mistaken Roth-IRA contribution to SEP-IRA?

With a one-participant 401k plan, you can make employee elective contributions up to 100% of your net self-employment earnings. For 2019 the limit is $19K + $6K catch-up >= age 50. You can then make the same 20% employer contribution as with a SEP IRA subject to the annual addition limit (employee ...
by Spirit Rider
Tue Jan 08, 2019 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: SEP IRA to i401k to open up backdoor ROTH
Replies: 11
Views: 315

Re: SEP IRA to i401k to open up backdoor ROTH

Yes, your plan is generally sound and for all I know, the CPA will say that the salary is reasonable given all the facts and circumstances.
by Spirit Rider
Tue Jan 08, 2019 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Where do I start? I can’t do a Roth IRA?
Replies: 12
Views: 682

Re: Where do I start? I can’t do a Roth IRA?

Thank you for replying and helping me out. I did not know I could also do a 401k on my own. I got from your reply that I would be setting this type of 401k through my S-Corp or just as an individual? The S-Corp is the employer and must adopt the one-participant 401k. Employee elective contributions...
by Spirit Rider
Tue Jan 08, 2019 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: SEP IRA to i401k to open up backdoor ROTH
Replies: 11
Views: 315

Re: SEP IRA to i401k to open up backdoor ROTH

You mention i401k but talk about business partner. Is your business partner your spouse as well? If so it can be a i401k. If not, it is essentially a 401k and you need to approach the providers like fido or vg with the same understanding. No, my business partner is not my spouse. But, I don't belie...
by Spirit Rider
Tue Jan 08, 2019 10:40 am
Forum: Investing - Help with Personal Investments
Topic: Where do I start? I can’t do a Roth IRA?
Replies: 12
Views: 682

Re: Where do I start? I can’t do a Roth IRA?

I work as a 1099 through my recently established S-Corp and have zero benefits or opportunities for 401k or the like. As has been pointed, with 1099 income you definitely have an opportunity for a 401lk. You can adopt a one-participant 401k effective 1/1/19 and make both employee elective contribut...
by Spirit Rider
Tue Jan 08, 2019 10:37 am
Forum: Personal Consumer Issues
Topic: Recommendations for a 9mm handgun
Replies: 171
Views: 12584

Re: Recommendations for a 9mm handgun

I agree with everything that @pezblanco said. This is not a step to be taken lightly. Unfortunately many people but a handgun first. When the first step before purchasing a handgun really should be to take an initial firearms safety/qualification course. Often they will have a variety of handguns to...
by Spirit Rider
Tue Jan 08, 2019 9:54 am
Forum: Investing - Help with Personal Investments
Topic: SEP IRA to i401k to open up backdoor ROTH
Replies: 11
Views: 315

Re: SEP IRA to i401k to open up backdoor ROTH

So, does that then mean I can then contribute an additional ~$16k as a ~25% employer contribution, resulting in a total contribution of ~$35,000? or am I misunderstanding you. Only the S-Corp can contribute 25% of your W-2 Box 1 wages in addition to the $19K employee elective contributions deducted...
by Spirit Rider
Mon Jan 07, 2019 10:25 pm
Forum: Personal Finance (Not Investing)
Topic: Filing 2 Member LLC Taxes for First Time - TurboTax, TaxAct, or Paper?
Replies: 15
Views: 429

Re: Filing 2 Member LLC Taxes for First Time - TurboTax, TaxAct, or Paper?

I have no idea which tax software is a better option for partnerships.
by Spirit Rider
Mon Jan 07, 2019 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: 12 month restriction on transferring HSA's to Fidelity?
Replies: 1
Views: 360

Re: 12 month restriction on transferring HSA's to Fidelity?

You can do as many HSA trustee -> trustee transfers as you want, but most custodians charge a $20 - $25 fee. You can only do one indirect HSA rollover every twelve months. If you take another distribution before twelve months, that distribution is not eligible for rollover, is subject to ordinary in...
by Spirit Rider
Mon Jan 07, 2019 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: Filing 2 Member LLC Taxes for First Time - TurboTax, TaxAct, or Paper?
Replies: 15
Views: 429

Re: Filing 2 Member LLC Taxes for First Time - TurboTax, TaxAct, or Paper?

You could have simply used a fictitious or Doing Business As (DBA) name for anonymity and a QJV for allocating some income to your wife.
by Spirit Rider
Mon Jan 07, 2019 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: Filing 2 Member LLC Taxes for First Time - TurboTax, TaxAct, or Paper?
Replies: 15
Views: 429

Re: Filing 2 Member LLC Taxes for First Time - TurboTax, TaxAct, or Paper?

Can I ask why you formed an LLC? They are almost always unneeded, provide little clear benefit and are often counter-productive. The simplest thing for you to have done was to elect at tax time (now), Qualified Joint Venture (QJV) status for your sole proprietorship. This would allow you to to simpl...
by Spirit Rider
Mon Jan 07, 2019 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: SEP IRA to i401k to open up backdoor ROTH
Replies: 11
Views: 315

Re: SEP IRA to i401k to open up backdoor ROTH

It most certainly makes a difference. S-Corp K-1 distributions can never be used to make contributions to retirement accounts. Both S-Corp 2% shareholder-employees must receive the exact same employer contribution percentage. You can not make any contributions to a SEP IRA at Vanguard for the 2019 t...