Search found 8323 matches

by Spirit Rider
Fri Aug 17, 2018 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k vs Sep Ira vs unique solo401k
Replies: 9
Views: 371

Re: Solo 401k vs Sep Ira vs unique solo401k

retiredjg wrote:
Fri Aug 17, 2018 5:38 pm
Nora?
Nora Bethman is the President of National Employee Benefit Services, a third-party administrator (TPA). They are one of the handful of TPAs offering relatively low cost one-participant 401k plans that support employee after-tax contributions and in-service rollovers.
by Spirit Rider
Fri Aug 17, 2018 9:33 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed:Correct way for 529
Replies: 7
Views: 703

Re: Help needed:Correct way for 529

There is an annual gift tax exclusion (2017 = $14K, 2018 = $15K), but there is a special 5-year lump sum option only available for 529 contributions. You do have to file a Form 709 to elect this treatment, but it does not get applied against your gift/estate tax lifetime exclusion.
by Spirit Rider
Fri Aug 17, 2018 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k vs Sep Ira vs unique solo401k
Replies: 9
Views: 371

Re: Solo 401k vs Sep Ira vs unique solo401k

Now is the 35k Additional space still worth it if I have to sell off some of my taxable account o make the contribution in the first place ? It’s not like I’m an avid spender, I just happen to basically invest any left over money every month so it’s all tied up, now, I could try to earn that amount...
by Spirit Rider
Fri Aug 17, 2018 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: HSAs
Replies: 9
Views: 1155

Re: HSAs

As regards the BH Wiki article, I would humbly suggest it be amended. (I'd also suggest the excellent BH books Guide to Investing and Guide to Retirement be updated.) As regards Pub 969, my complaint is it does not specify that Part D is qualified. In my ignorance, the express exclusion of Medigap ...
by Spirit Rider
Fri Aug 17, 2018 4:28 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)
Replies: 641
Views: 54416

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

Forgive me for stupid question... Can you convert shares of FSTVX to FZROX without recognizing a gain/loss, similar to converting to Premium shares? No, changing share classes is not a taxable event. Exchanging shares is a sell/buy transaction that happens in a single day at both fund's closing pri...
by Spirit Rider
Fri Aug 17, 2018 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed:Correct way for 529
Replies: 7
Views: 703

Re: Help needed:Correct way for 529

Does limit apply per kid or total? Which limit? There is a contribution balance limit for a specific beneficiary at a specific 529 state program. For example, you can not make contributions to any NH Fidelity Unique 529 plan for a specific beneficiary when the balance in all such plans reach $500K....
by Spirit Rider
Fri Aug 17, 2018 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Do we really need to save 20 % ?
Replies: 28
Views: 2601

Re: Do we really need to save 20 % ?

We are debating if 5k/month of savings should sit in a bank account or in some investment account. It is a difference that is unlikely to matter much. You must be reading a totally different thread. We are discussing nothing of the sort. I suggest you go back and read the thread from beginning to e...
by Spirit Rider
Fri Aug 17, 2018 8:39 am
Forum: Investing - Help with Personal Investments
Topic: Elderly Relative Short on Money
Replies: 67
Views: 4373

Re: Elderly Relative Short on Money

I will just throw this out there. It might make sense for her to suspend SS now to earn delayed retirement credits until 70, but continue Medicare. Making sure she is enrolled in Medigap and Part D. The two siblings can split the SS she would have been getting from SS, including COL increases until ...
by Spirit Rider
Fri Aug 17, 2018 8:17 am
Forum: Personal Finance (Not Investing)
Topic: change from 1099 to W2, how to calculate est quaterly tax
Replies: 4
Views: 177

Re: change from 1099 to W2, how to calculate est quaterly tax

You can use the 2017 Form 2210 and instructions to get an idea. You need to file Form 2210 with your taxes if you meet the requirements at the top of the form.

You generally need to file this form anytime you do not pay equal quarterly estimated tax payments.
by Spirit Rider
Fri Aug 17, 2018 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Do we really need to save 20 % ?
Replies: 28
Views: 2601

Re: Do we really need to save 20 % ?

I'm with your wife and other posters on this. The 20% has stood the test of time and really doesn't have that much to do with PMI. You didn't mention anything about an emergency/contingency fund. This house purchase is likely going to significantly increase your monthly expenses. Finally, have you d...
by Spirit Rider
Fri Aug 17, 2018 7:46 am
Forum: Personal Finance (Not Investing)
Topic: change from 1099 to W2, how to calculate est quaterly tax
Replies: 4
Views: 177

Re: change from 1099 to W2, how to calculate est quaterly tax

I am assuming you live in CA and this is due to the SCOCA ruling and not any tax law changes. You can make an estimated tax payment by 9/15 for the 6/1 - 8/31 period, based on the 1099 income received during that period. That may be the easiest to calculate. However, you could increase your W-2 with...
by Spirit Rider
Fri Aug 17, 2018 7:30 am
Forum: Investing - Help with Personal Investments
Topic: Help needed:Correct way for 529
Replies: 7
Views: 703

Re: Help needed:Correct way for 529

A 529 has an owner and a beneficiary Parental or student owned 529 plans are both treated as parental assets when completeing the FAFSA. Parental assets are assessed at a maximum rate of 5.64% for Expected Family Contribution (EFC). Distributions are not counted as income. Third-party(grandparents, ...
by Spirit Rider
Thu Aug 16, 2018 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: HSAs
Replies: 9
Views: 1155

Re: HSAs

MP123: Thank you for your correction. The "standard HSA issues" that Spirit Rider chided me about seem not so "standard" (in terms of finding answers easily). Even the BH article attached (https://www.bogleheads.org/wiki/Health_savings_account) is inconsistent/incomplete when it comes to indicating...
by Spirit Rider
Thu Aug 16, 2018 11:13 am
Forum: Personal Finance (Not Investing)
Topic: Is 401k Roth conversion included in MAGI?
Replies: 2
Views: 287

Re: Is 401k Roth conversion included in MAGI?

I don't know the answer. I will try to do some research, but "surely" or "rational" does not mean much when it comes to the tax code.
by Spirit Rider
Thu Aug 16, 2018 1:01 am
Forum: Investing - Help with Personal Investments
Topic: Brokerage Account for Minor
Replies: 25
Views: 1612

Re: Brokerage Account for Minor

Thanks so much for your rude response; truly in the Spirirt of things :x Since you won't provide the asked for answer, and I don't know what the correct variables are to get the correct answer, what variable should be used for Compound interest interval annually, and what would be a good value for ...
by Spirit Rider
Thu Aug 16, 2018 12:55 am
Forum: Personal Finance (Not Investing)
Topic: Change job: 401(k) strategy
Replies: 1
Views: 193

Re: Change job: 401(k) strategy

The only time I have seen in-kind rollovers allowed, is if both the administrator and custodian of your 401k and your IRA are the same. The most common is for full liquidation and a physical check mailed, but made out to the new plan/custodian. I would think that since partial withdrawals are not a...
by Spirit Rider
Wed Aug 15, 2018 11:05 pm
Forum: Personal Finance (Not Investing)
Topic: modify 401(k) plan for increased savings or let it ride?
Replies: 4
Views: 424

Re: modify 401(k) plan for increased savings or let it ride?

Is this really a SIMPLE 401k or is it a SIMPLE IRA? SIMPLE 401k plans are extremely rare. I am assuming you have non-spouse employees. Otherwise, there would be no reason to contemplate a safe harbor 401k. How many non-spouse employees do you have? Who is the administrator of this plan? Who is the c...
by Spirit Rider
Wed Aug 15, 2018 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: For i401k, Vanguard does not allow investment into Admiral Shares
Replies: 32
Views: 1653

Re: For i401k, Vanguard does not allow investment into Admiral Shares

If you knew all that, what's your point. I never stated VTSAX existed in a Vanguard i401k. I was using it for a math exercise to explain the basis of the difference between comparative investments in a Vanguard i401k and a Fidelity SE401k What was lost, was your ability to slow down and actually rea...
by Spirit Rider
Wed Aug 15, 2018 8:55 pm
Forum: Personal Finance (Not Investing)
Topic: My Own LLC
Replies: 5
Views: 745

Re: My Own LLC

With < $10K in business profit an employer contribution will be < $2K. You can not make an employer contribution to a one-participant 401k plan and then immediately do a rollover to a Roth IRA. I believe ETrade allows you to do an IRR of employer contributions to a Roth designated account within the...
by Spirit Rider
Wed Aug 15, 2018 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Do I need disability insurance
Replies: 4
Views: 312

Re: Do I need disability insurance

Yes, you definitely need disability insurance.

You are statistically far more likely to need disability insurance during your career than life insurance.
by Spirit Rider
Wed Aug 15, 2018 8:31 pm
Forum: Investing - Help with Personal Investments
Topic: For i401k, Vanguard does not allow investment into Admiral Shares
Replies: 32
Views: 1653

Re: For i401k, Vanguard does not allow investment into Admiral Shares

You could arguably claim that VTSAX has a tiny advantage over the equivalent Fidelity funds. However, not even remotely the lowest fees in a one-participant 401k. You are effectively paying almost a 0.10% more ER. Huh? Thought the topic was vanguard i401k? For all intents and purposes VTSAX doesn’t...
by Spirit Rider
Wed Aug 15, 2018 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: How does rental property profit effect MAGI?
Replies: 4
Views: 479

Re: How does rental property profit effect MAGI?

Income from rental property is passive real estate income reported on Schedule E. It is not self-employment income and you can not deduct health insurance premiums. Changing to an LLC achieves nothing.

What are you going to do with the proceeds from the loan?
by Spirit Rider
Wed Aug 15, 2018 7:56 pm
Forum: Investing - Help with Personal Investments
Topic: Brokerage Account for Minor
Replies: 25
Views: 1612

Re: Brokerage Account for Minor

RCL wrote:
Wed Aug 15, 2018 5:26 pm
So, I'm too lazy to look that up.. Would you be so kind as to post the results so others can see the result?
No.

This is a DIY forum. The operative word is Yourself!
by Spirit Rider
Wed Aug 15, 2018 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k / TD Ameritrade
Replies: 21
Views: 806

Re: Solo 401k / TD Ameritrade

Hi LiveSoft, I did speak to many people and according to them - the same withdrawal rule applies to Roth 401K as the Roth IRA except the RMD. I don't know who you talked to, but they were wrong. There is a distinct difference in non-qualified distribution rules between the two. The Roth IRA has ord...
by Spirit Rider
Wed Aug 15, 2018 6:57 pm
Forum: Investing - Help with Personal Investments
Topic: For i401k, Vanguard does not allow investment into Admiral Shares
Replies: 32
Views: 1653

Re: For i401k, Vanguard does not allow investment into Admiral Shares

I just got off the phone with a Vanguard advisor who walked me through thr process of setting up my Individual 401k for my LLC. She mentioned that the i401k is only allowed to invest in Investor Shares, not Admiral Shares. Still the lowest fees but surprised by this policy. I don’t think “still the...
by Spirit Rider
Wed Aug 15, 2018 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: Mega Back Door Roth IRA - possible or not?
Replies: 6
Views: 345

Re: Mega Back Door Roth IRA - possible or not?

1) An employer can, but is not required to offer after-tax contributions. Those that do, can allow first dollar contributions or only when employee elective contributions are maxed. 2) An employer that allows designated Roth contributions can, but is not required to offer In-plan Roth Rollovers (IRR...
by Spirit Rider
Wed Aug 15, 2018 4:29 pm
Forum: Investing - Help with Personal Investments
Topic: SEP to solo-401k
Replies: 8
Views: 495

Re: SEP to solo-401k

You cannot do in same year contribution to both. Only one can be active. It is IRS limitation. What if we roll over all the funds in the SEP to the 401k and close out the SEP? if you can back out and undo your SEP contributions for 2018 then you can put them in the Solo 401k... but it's one or the ...
by Spirit Rider
Wed Aug 15, 2018 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 69
Views: 5436

Re: Retirement accounts and physician SCorps and Tax Reform

I am referring to the actual 20% QBI deduction and not the QBI. The $100K was not a theshold but rather just a more than sufficient number, because the self-employed health insurance deduction is variable. For purposes of an example, assume there is such a limitation with business profit = $50K. Lin...
by Spirit Rider
Wed Aug 15, 2018 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k vs Sep Ira vs unique solo401k
Replies: 9
Views: 371

Re: Solo 401k vs Sep Ira vs unique solo401k

I think the $35K of additional Roth contribution space is worth the $900 startup cost and $200 annual fee. Probably not if it was < $10K. Although I'm not sure how to quantify this. A DB plan with this amount of 1099 income is not going to provided any increased pre-tax contribution space. Tax-advan...
by Spirit Rider
Wed Aug 15, 2018 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 69
Views: 5436

Re: Retirement accounts and physician SCorps and Tax Reform

Currently there is a worksheet in the 2017 Form 1040 Instructions that limits the Line 29 (Self-employed health insurance deduction) to Line 12 (bussiness profit) - Line 27 (1/2 SE tax) - Line 28 (deductible self-employed retirement plan contributions). I think it is quite likely in the 2018 Form 10...
by Spirit Rider
Tue Aug 14, 2018 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: HSAs
Replies: 9
Views: 1155

Re: HSAs

These are pretty standard HSA issues. You should really be able to research these on your own. Medicare Part B and D premiums are qualified medical expenses. Medicare Supplement (Medigap) premiums are not. If you enroll in Medicare, that makes you ineligible for HSA contributions retroactively up si...
by Spirit Rider
Tue Aug 14, 2018 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: SEP to solo-401k
Replies: 8
Views: 495

Re: SEP to solo-401k

You can not contribute to a 5305-SEP IRA and maintain a 401k plan for the same tax year.

You can contribute to a prototype SEP IRA and maintain a 401k plan in the same tax year.

Vanguard has a 5305-SEP IRA.
by Spirit Rider
Tue Aug 14, 2018 6:46 pm
Forum: Investing - Help with Personal Investments
Topic: Clarification ref Governmental 457b distributions
Replies: 11
Views: 683

Re: Clarification ref Governmental 457b distributions

They can all be accessed before 59 1/2, just with applicable taxation.
by Spirit Rider
Tue Aug 14, 2018 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k / TD Ameritrade
Replies: 21
Views: 806

Re: Solo 401k / TD Ameritrade

Hi Investing.Newbie. Yes I need a Roth option so I am thinking of doing the following 2 things 1) Roll over my i401k 2) Create a new roth i401k I want to put away some after-tax money because I'm expecting some withdrawals in around 10 yrs time period for my kids college. I am thinking about roth i...
by Spirit Rider
Tue Aug 14, 2018 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: First time ACA coverage with question
Replies: 21
Views: 1799

Re: First time ACA coverage with question

Thanks Huey Yes i did consider cobra but it would be >$2000/month. I did call the university today and they said even if we did not sign up for fall insurance that we could get spring coverage started 1/1/19 so i think that is what we would do. I think we will put her on student insurance even if i...
by Spirit Rider
Tue Aug 14, 2018 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: Clarification ref Governmental 457b distributions
Replies: 11
Views: 683

Re: Clarification ref Governmental 457b distributions

I thought you could make qualified withdrawals upon separation from the employer before 59.5 with a 457b? Is the rule different for the Roth version? As I already said; 457b withdrawals are not "qualified" withdrawals, they are "penalty-free" withdrawals. Traditional 457b withdrawals are subject to...
by Spirit Rider
Mon Aug 13, 2018 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: Contribution to business 401k Question
Replies: 4
Views: 289

Re: Contribution to business 401k Question

From the IRS' point of view there is no difference between the a default single member LLC and the owner. There is no IRS problem with contributing this money from your personal checking account to your business 401k. Could this be used to pierce the LLC's liability shield? Possibly, but it was prob...
by Spirit Rider
Mon Aug 13, 2018 6:11 pm
Forum: Investing - Help with Personal Investments
Topic: IRA rollover mixed pre/post tax question
Replies: 5
Views: 227

Re: IRA rollover mixed pre/post tax question

You should always do direct rollovers even if the rollover such as this one is not subject to the one IRA rollover/12 month period rule. Regardless if the 401k plan will accept a check from you personally.
by Spirit Rider
Mon Aug 13, 2018 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Applying for Internal Jobs and Informing Current Manager
Replies: 8
Views: 425

Re: Applying for Internal Jobs and Informing Current Manager

Speaking as someone who has been both an individual contributor and in management at five Fortune 500 companies. Who has had long term overseas assignments and direct reports doing the same. I suggest it is not necessary to immediately inform your manager. It is perfectly fine to socialize the oppor...
by Spirit Rider
Mon Aug 13, 2018 4:02 pm
Forum: Personal Consumer Issues
Topic: Phone Plan for US-Child doing a Semester Abroad (VerizonWirelss)
Replies: 35
Views: 1071

Re: Phone Plan for US-Child doing a Semester Abroad (VerizonWirelss)

There is no need to get a different phone. Phones on postpaid plans of all of the major U.S. carriers have been unlocked for years regardless of device payment plans. If you have a current device payment plan, you will have to pay it off to terminate the plan. I don't know if Verizon might have a su...
by Spirit Rider
Mon Aug 13, 2018 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 69
Views: 5436

Re: Retirement accounts and physician SCorps and Tax Reform

See the edit to my last post adding the last paragraph after you started your reply. A sole proprietor can just as easily contribute to a defined benefit plan. It may be necessary to amend the plan to change the plan sponsor from the S-Corp to a sole proprietorship. Note: You should engage a profess...
by Spirit Rider
Mon Aug 13, 2018 3:23 pm
Forum: Investing - Help with Personal Investments
Topic: IRA rollover mixed pre/post tax question
Replies: 5
Views: 227

Re: IRA rollover mixed pre/post tax question

A person can only rollover pre-tax IRA balances into a 401k. Once she has determined that her 401k plan will accept IRA rollovers. She should rollover all pre-tax balances in all traditional, SEP and SIMPLE IRA accounts to the 401k. The pre-tax balance with be the total balance - $130. Once she has ...
by Spirit Rider
Mon Aug 13, 2018 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 69
Views: 5436

Re: Retirement accounts and physician SCorps and Tax Reform

Any employer retirement plan contribution in an S-Corp is deducted on Form 1120S Line 17. Therefore, it reduces the ordinary business income and distributions that will be the basis for any Qualified Business Income (QBI) deduction. If you are paying little to no distributions due to W-2 wages and e...
by Spirit Rider
Mon Aug 13, 2018 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: Clarification ref Governmental 457b distributions
Replies: 11
Views: 683

Re: Clarification ref Governmental 457b distributions

That is good advice in general, but plan provisions can not override tax law.
by Spirit Rider
Mon Aug 13, 2018 10:12 am
Forum: Personal Finance (Not Investing)
Topic: First time ACA coverage with question
Replies: 21
Views: 1799

Re: First time ACA coverage with question

I assume I have to stay over 138% and less than 400% poverty level for 2 people to avoid medicaid and keep in subsidy territory... If you live in a state that did not expand Medicare, such as Texas where I live, the range is 100% to 400% of the Federal Poverty Level for subsidies. Medicare has noth...
by Spirit Rider
Mon Aug 13, 2018 10:08 am
Forum: Personal Consumer Issues
Topic: Should I Do This? [borrow from relative to pay off loan]
Replies: 55
Views: 2808

Re: Should I Do This? [borrow from relative to pay off loan]

While I agree in principle with the sentiment of selling the car buying a less expensive car. However, the reality is not always that simple. First we need to determine if the OP can even afford to keep the car. OP, to better answer your situation, we need more information: What is your income and m...
by Spirit Rider
Mon Aug 13, 2018 8:59 am
Forum: Investing - Help with Personal Investments
Topic: Clarification ref Governmental 457b distributions
Replies: 11
Views: 683

Re: Clarification ref Governmental 457b distributions

457b withdrawals are "penalty-free", but are subject to the underlying taxation. This means that traditional (pre-tax) 457b distributions are 100% subject to ordinary income tax. Unlike a Roth IRA where there are ordering rules allowing contributions and 5+ year conversions to come out tax-free. Non...
by Spirit Rider
Sun Aug 12, 2018 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 UTMA tax gain harvesting
Replies: 4
Views: 366

Re: 2018 UTMA tax gain harvesting

Two points. I don't know why you are stopping at $2599 and $4699. The 15% LTCG and QDIV rate bracket starts at $2,600. That means $2600 is taxed at the first bracket rates, not $2599. Also, it is not as simple as a $1050 deduction and $1050 taxed at the child's rate. There are pro-rata worksheets fo...
by Spirit Rider
Sun Aug 12, 2018 10:49 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard updated 1099 in August!
Replies: 28
Views: 1968

Re: Vanguard updated 1099 in August!

This post is mainly to rant and vent, but I think about all the extra time and hassle spent by not only by the customers receiving these late amended documents, but then also by the IRS workers who have to process all the amended 1040s now due. Just curious if Vanguard gets any penalty - other than...
by Spirit Rider
Sun Aug 12, 2018 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: Keeping track of 401k and roth 401k contributions while doing rollovers
Replies: 2
Views: 199

Re: Keeping track of 401k and roth 401k contributions while doing rollovers

You are not doing a rollover to the brokerage link. It still exists entirely within the accounting of your 401k plan. Your plan must separately account for the assets (pre-tax {employee elective deferrals, employer contributions and rollovers}, Roth {employee elective contributions and rollovers}, e...