Search found 7060 matches

by Spirit Rider
Thu Feb 22, 2018 12:36 am
Forum: Investing - Help with Personal Investments
Topic: Can you front load a solo 401k based upon expected income?
Replies: 4
Views: 420

Re: Can you front load a solo 401k based upon expected income?

1. Can you make an employer contribution, but choose not to do an employee deferral in any particular year? I think the answer is yes, but want to make sure. Sure . 2. Does the employee deferral, or the employer contribution, have to follow any form of set formula that you have designated, or can y...
by Spirit Rider
Thu Feb 22, 2018 12:22 am
Forum: Personal Finance (Not Investing)
Topic: W-2 Line 12 Code D employee or employer contrib ?
Replies: 4
Views: 348

Re: W-2 Line 12 Code D employee or employer contrib ?

This is apparently a W-2 error. Even if these were mandatory employee contributions, they would not be considered deferrals. You CPA is no doubt just entering your information into a professional tax software and it is properly restricting you contribution. A consumer tax software would probably do ...
by Spirit Rider
Wed Feb 21, 2018 11:40 pm
Forum: Investing - Help with Personal Investments
Topic: Can you front load a solo 401k based upon expected income?
Replies: 4
Views: 420

Re: Can you front load a solo 401k based upon expected income?

DSInvestor has the important information. Here are some more specifics. As they pointed out, you can not make the maximum contribution on the first business day of the year like you can with an IRA or HSA. However, you can front load employee deferrals and employer contributions to the degree compen...
by Spirit Rider
Wed Feb 21, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Roll Mega backdoor Roth account into backdoor Roth account
Replies: 16
Views: 621

Re: Roll Mega backdoor Roth account into backdoor Roth account

I think this information should be readily available from the plan administrator. Not so much maybe from HR CSRs.
by Spirit Rider
Wed Feb 21, 2018 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: Roll Mega backdoor Roth account into backdoor Roth account
Replies: 16
Views: 621

Re: Roll Mega backdoor Roth account into backdoor Roth account

One issue is creditor protection. You'd be mixing qualified plan rollover funds (mega backdoor Roth) with contributed funds (backdoor Roth). Natalie Choate has written that rollover IRAs have slightly better creditor protection than contributory IRAs. Not exactly. Mixing has no effect on the protec...
by Spirit Rider
Wed Feb 21, 2018 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: Roll Mega backdoor Roth account into backdoor Roth account
Replies: 16
Views: 621

Re: Roll Mega backdoor Roth account into backdoor Roth account

jheaps wrote:
Wed Feb 21, 2018 4:02 pm
is HCE definition set by IRS or the employer?
The statutory limit (2017/18 = $120K) is just that set in law. An employer with a lot of highly compensated employees can elect to to only treat the top 20% of employees as HCEs. This can result in a much higher somewhat variable limit.
by Spirit Rider
Wed Feb 21, 2018 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: CPA recommends to NOT contribute to SEP IRA
Replies: 15
Views: 1810

Re: CPA recommends to NOT contribute to SEP IRA

Hm okay, I think I get the avoiding SE tax on the distributions, but how is he able to contribute $15k to an SEP IRA? The maximum employer contribution to either a SEP IRA or a one-participant 401k are the same. The statutory limit is 25% of compensation. For an S-Corp owner this is generally W-2 B...
by Spirit Rider
Wed Feb 21, 2018 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: Another Solo 401k Question and Addtl. Q's
Replies: 7
Views: 447

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

Thanks to all responses. I will be able to fund Roth accounts for both (A), however not financially feasible at this moment to do fund both SEP(B) and Solo 401k(C). If given the choice which one would you choose? I realize my post was complicated, but you might want to re-read it more closely. As p...
by Spirit Rider
Wed Feb 21, 2018 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: CPA recommends to NOT contribute to SEP IRA
Replies: 15
Views: 1810

Re: CPA recommends to NOT contribute to SEP IRA

I find it odd that a one-man shop organizes as an LLC with himself as a W-2 employee. I may be missing something: what are the tax benefits here vs having it all count on his tax return as business income? He gets to avoid SE tax on the amount of S-Corp distributions and retirement plan contributio...
by Spirit Rider
Wed Feb 21, 2018 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: Roll Mega backdoor Roth account into backdoor Roth account
Replies: 16
Views: 621

Re: Roll Mega backdoor Roth account into backdoor Roth account

I know with ADP testing failures the company is supposed to notify and send you a check by 3/15 for excess contributions.

I do not know for sure, but I would expect a similar time frame for ACP failures on after-tax contributions.

The OP should direct a question to their plan administrator.
by Spirit Rider
Wed Feb 21, 2018 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: Roll Mega backdoor Roth account into backdoor Roth account
Replies: 16
Views: 621

Re: Roll Mega backdoor Roth account into backdoor Roth account

If you are an HCE, I would not rollover the account the Mega Backdoor Roth rollovers go to. If your 401k plan fails ACP testing, a portion of the Mega Backdoor Roth rollovers and earnings will have to be returned to the plan.

This will be far easier if the assets are at the same custodian.
by Spirit Rider
Wed Feb 21, 2018 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Need Help Understanding 2017 ACA Insurance Bill for $28,690 and tax liabilities? Confused? ** How to deduct in 2018??
Replies: 81
Views: 3605

Re: Need Help Understanding 2017 ACA Insurance Bill for $28,690 and tax liabilities? Confused? Help?

You actually have some wiggle room on the royalties. Royalties from Getty, Inc. for stock photography clearly qualifies for Schedule C or E. It is often a gray area for many people later in life. To report on Schedule C you must be "actively engaged in business with the intent to make a profit." Mos...
by Spirit Rider
Wed Feb 21, 2018 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Need Help Understanding 2017 ACA Insurance Bill for $28,690 and tax liabilities? Confused? ** How to deduct in 2018??
Replies: 81
Views: 3605

Re: Need Help Understanding 2017 ACA Insurance Bill for $28,690 and tax liabilities? Confused? Help?

BrandonBogle wrote:
Wed Feb 21, 2018 11:56 am
Would the rental income qualify for a business retirement account like a SEP IRA or a Solo 401k?
Nope, not considered earned income in almost all circumstances.
by Spirit Rider
Wed Feb 21, 2018 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: CPA recommends to NOT contribute to SEP IRA
Replies: 15
Views: 1810

Re: CPA recommends to NOT contribute to SEP IRA

Marital status and taxable income would be important information. The 2017 MFJ 15%/25% bracket changeover is at $75K. If he is below that the CPA may be giving good advice. I too would prioritize Roth IRAs for him and his spouse and if he has extra money to invest do that in the SEP IRA. If he is ov...
by Spirit Rider
Wed Feb 21, 2018 3:42 am
Forum: Investing - Help with Personal Investments
Topic: Inherited tIRA all in HAINX
Replies: 11
Views: 824

Re: Inherited tIRA all in HAINX

Sorry for your loss. If you don't mind my asking, what year did he pass away and had he taken his RMD for the year? If not you will have to take his RMD (quite large based on his age) for that year, taxable to you. Then by 12/31 of the year following the year of death and every year, you will have t...
by Spirit Rider
Tue Feb 20, 2018 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Contributions
Replies: 6
Views: 583

Re: 529 Contributions

Deductions and their recapture are based on the state law of the deduction, in this case PA. What qualifies as a qualified education expenses is federal law. A 529 plan can not restrict distributions. NY has no say in this just because it is their plan However, nothing would prevent PA from implemen...
by Spirit Rider
Tue Feb 20, 2018 6:59 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH Ira for kids
Replies: 41
Views: 3547

Re: ROTH Ira for kids

The work for the neighbor is household help wages, but below the FICA or FUTA limits and the $600 limit for W-2 reporting. If the company is a sole proprietorship owned by you or a partnership of just you and your spouse, your children < 18 are not subject to FICA and < 21 are not subject to FICA. C...
by Spirit Rider
Tue Feb 20, 2018 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k - can I still contribute profit sharing for 2017?
Replies: 4
Views: 221

Re: Solo 401k - can I still contribute profit sharing for 2017?

With only a 25% ownership in the S-Corp you would not have a controlled group with your sole proprietorship. However, you could have an affiliated service group if the S-Corp and the sole proprietorship regularly provides the same services to a third party (hospital). These rules are complex and you...
by Spirit Rider
Tue Feb 20, 2018 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Connecticut is charging sales tax on out of state purchases
Replies: 40
Views: 2510

Re: Connecticut is charging sales tax on out of state purchases

The Mass Governor sent state police into NH to take down Mass license plates shopping at the mall in Salem. This was to reach out to them and demand receipts and sales tax. The NH Governor threatened to have the police arrested for loitering. As long as we are going slightly off-topic... Good ole M...
by Spirit Rider
Tue Feb 20, 2018 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401k Question
Replies: 14
Views: 874

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: 14
Views: 874

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: 5
Views: 641

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: 15
Views: 1810

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: 7
Views: 447

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: 251

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: 1948

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: 439

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: 93

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: 66
Views: 4987

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: 1948

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: 439

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: 3
Views: 384

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: 405

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: 439

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: 236

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: 1948

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: 1505

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: 495

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: 428

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: 381

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: 176

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: 1298

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: 424

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: 762

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: 1419

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: 4400

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: 1334

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: 491

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: 514

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: 218

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 ...