Search found 7790 matches

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: 1251

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: 1251

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: 58
Views: 6623

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: 1251

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: 1251

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: 1251

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: 1251

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: 530

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: 85
Views: 4226

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: 670

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: 1924

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: 1738

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: 1924

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: 9784

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: 504

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: 265

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: 458

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: 504

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: 188

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: 404

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: 458

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: 1259

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: 1699

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: 9784

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: 9784

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: 1915

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: 311

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: 344

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: 1915

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: 563

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: 344

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: 9784

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: 1915

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: 1915

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: 426

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: 9784

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: 9784

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: 9784

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: 8714

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: 9784

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: 9784

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: 353

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...
by Spirit Rider
Mon May 14, 2018 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: Margin debt ratio
Replies: 39
Views: 2304

Re: Margin debt ratio

Why is trading using margin considered risky but leverage is considered positive when investing in real estate? Why do many people consider it safer to borrow to buy a house vs. paying cash but think it is riskier when buying equities, especially since houses are more concentrated and much less liq...
by Spirit Rider
Mon May 14, 2018 9:53 am
Forum: Forum Issues and Administration
Topic: The front page is ugly
Replies: 127
Views: 8714

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
Sun May 13, 2018 10:49 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA from Brokerage to Bank CD
Replies: 8
Views: 439

Re: Inherited IRA from Brokerage to Bank CD

Getting an RMD amount annually out of a CD is rather difficult don't you think? Many banks that offer IRAs, offer IRA CDs that specifically allow RMDs from those CDs without early withdrawal penalties. The OP should find a bank that offers IRA CDs, but should make sure that the waiver of the early ...
by Spirit Rider
Sun May 13, 2018 7:21 pm
Forum: Personal Finance (Not Investing)
Topic: Quest for the perfect online savings bank
Replies: 18
Views: 2236

Re: Quest for the perfect online savings bank

The simple solution is just keep cash in your brokerage account. Who needs an extra account for a couple of tenths of a percent on a few thousand bucks? 10k? More? No need to keep too much in cash . Prime Money Market is currently yielding 1.85% and rising. Seriously considering it. If I have to bu...
by Spirit Rider
Sun May 13, 2018 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Small company 401k plans
Replies: 40
Views: 2167

Re: Small company 401k plans

Not intending to hijack the thread but can someone recommend me the cheapest TPA and overall service for a sole prop with 2 partners set up as Qualified Joint Venture? There will only be 2 people who are partners and no employees. I got plenty of time so I would like to do the administrative work m...
by Spirit Rider
Sat May 12, 2018 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Quest for the perfect online savings bank
Replies: 18
Views: 2236

Re: Quest for the perfect online savings bank

SeekingBogle wrote:
Sat May 12, 2018 8:55 pm
Really curious, is your brokerage account doubling as an emergency savings account? My understanding is that you keep that amount in savings, MMAs, or CDs. Is this wrong?
Prime Money Market is a money market mutual fund. Pretty much the same as a money market account, but with no FDIC insurance.
by Spirit Rider
Sat May 12, 2018 9:14 pm
Forum: Investing - Help with Personal Investments
Topic: Mega Backdoor when value is down?
Replies: 5
Views: 648

Re: Mega Backdoor when value is down?

PFInterest wrote:
Sat May 12, 2018 8:42 pm
The money was going to go up and down the same. Doesn't matter.
Did you not read my post. For purposes of taxation it most definitely matters.
by Spirit Rider
Sat May 12, 2018 8:22 pm
Forum: Investing - Help with Personal Investments
Topic: Mega Backdoor when value is down?
Replies: 5
Views: 648

Re: Mega Backdoor when value is down?

Your first thought was correct, your 99% sure is not. The total value of the account in the future (assuming no time out of the market) would be the same if there were earnings or not. However, if there are no earnings, there is no need to roll any earnings into a traditional IRA or do a Roth conver...