Search found 7817 matches

by Spirit Rider
Fri May 25, 2018 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion - will I have pro-rata rule problems?
Replies: 6
Views: 286

Re: Roth conversion - will I have pro-rata rule problems?

As long as there is zero dollars in the rollover Ira by dec 31, you should be fine. https://www.kitces.com/blog/the-impact-of-the-ira-aggregation-rule-on-after-tax-distributions-roth-conversions-60-day-rollovers-rmds-and-72t-payments/ Thanks for your reply, but unfortunately in the link you provide...
by Spirit Rider
Fri May 25, 2018 6:53 pm
Forum: Personal Consumer Issues
Topic: Air Conditioner Questions: Stop Leak & Qualified Technician
Replies: 8
Views: 449

Re: Air Conditioner Questions: Stop Leak & Qualified Technician

I had a second opinion and found out that the AC unit needs about two #'s of refrigerant and that I could have the refrigerant added. I believe it is illegal to just add refrigerant without attempting to find and fix leaks (not difficult). (Beware : Vast majority of people in retail HVAC industry a...
by Spirit Rider
Fri May 25, 2018 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion - will I have pro-rata rule problems?
Replies: 6
Views: 286

Re: Roth conversion - will I have pro-rata rule problems?

As mhalley: pointed out, for purposes of the prorata calculation the timing is irrelevant. The only thing that matters is what are your total pre-tax balances in all traditional, SEP IRA and SIMPLE IRA accounts on 12/31. However, the recent tax reform removed the ability to recharacterize Roth conve...
by Spirit Rider
Fri May 25, 2018 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: trustee to trustee IRA transfer
Replies: 5
Views: 226

Re: trustee to trustee IRA transfer

What you should do is to tell the IRA custodian you are doing the rollover from that you want to a Direct Rollover. The "from" IRA custodian should ask you the name of the IRA custodian you are doing the rollover to, so the "from" IRA custodian can make the check payable to the "to" IRA custodian F...
by Spirit Rider
Fri May 25, 2018 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: trustee to trustee IRA transfer
Replies: 5
Views: 226

Re: trustee to trustee IRA transfer

If they did it as a withdrawal or as an indirect rollover (check made out to you), I believe that they have to withhold 20% tax. So if they did withhold 20%, you know they are doing it wrong. The 20% mandatory withholding only applies to distributions from employer plans. IRAs default to 10%, but y...
by Spirit Rider
Fri May 25, 2018 9:47 am
Forum: Investing - Theory, News & General
Topic: Is this a mistake or typo or something else by Fidelity?
Replies: 6
Views: 1208

Re: Is this a mistake or typo or something else by Fidelity?

Context is everything. The first sentence is also poorly worded, because it is dependent on context. "There is no bumping up income once you've claimed your Social Security retirement benefit." Is only true is you are solely talking about delayed retirement credits. You can certainly "bump up" your ...
by Spirit Rider
Thu May 24, 2018 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Bank of America ATM card not working internationally
Replies: 14
Views: 697

Re: Bank of America ATM card not working internationally

For the Op, one thing to also check is if you have a four-digit PIN or a longer one. Perhaps the international ATMs can't support the greater than four-digit variety? I had this problem with a BoA debit card with a 6-digit PIN. Changing it to a four-digit PIN solved the problem. However, I thought ...
by Spirit Rider
Thu May 24, 2018 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Contribution limits to Roth IRA and 401(k) with small earned income
Replies: 7
Views: 552

Re: Contribution limits to Roth IRA and 401(k) with small earned income

W-2 wage: $26,529.51 FICA: $2,029.51 Roth 401(k): $24,500.00 2 Roth IRAs: $13,000.00 ------- Total Roth: $37,500.00 Note: The catch-up contribution is not included in the 415c 100% of compensation limitation. So you can make your $18.5K Roth 401k contribution and $6K Roth 401k catch-up contribution...
by Spirit Rider
Thu May 24, 2018 9:55 am
Forum: Personal Finance (Not Investing)
Topic: 529 maximum contribution for myself as beneficiary
Replies: 4
Views: 349

Re: 529 maximum contribution for myself as beneficiary

I think there are two separate issues: 1) How much can be funded 2) The tax reporting on that funding I believe the only limit on #1 is the maximum balance at which a 529 plan permits further contributions. The taxation reporting is dependent upon gift tax rules, not 529 plan rules. If one funds th...
by Spirit Rider
Thu May 24, 2018 9:47 am
Forum: Investing - Help with Personal Investments
Topic: Mega backdoor Roth to Roth 401k or Roth IRA
Replies: 9
Views: 722

Re: Mega backdoor Roth to Roth 401k or Roth IRA

1. I believe this setup is sometimes called the “mega backdoor Roth” because it would allow us to make significant Roth contributions even though we are over the income limit for regular Roth contributions. For “regular” backdoor Roth conversions one should first dissolve any existing traditional I...
by Spirit Rider
Thu May 24, 2018 8:56 am
Forum: Personal Finance (Not Investing)
Topic: New tax law -LLC vs S-Corp
Replies: 3
Views: 254

Re: New tax law -LLC vs S-Corp

You don't need/want either. Contrary to a persistent myth, an LLC provides little to no liability protection for the personal acts of the owner. Also, any business credit you wish to obtain will most certainly require a personal guarantee. Therefore, there is no asset protection from an LLC. You are...
by Spirit Rider
Wed May 23, 2018 10:55 pm
Forum: Personal Finance (Not Investing)
Topic: 529 maximum contribution for myself as beneficiary
Replies: 4
Views: 349

Re: 529 maximum contribution for myself as beneficiary

There is no gift limit for a spouse, but any rollover to a younger generation (a child) will be subject to gift tax annual and five-year exclusion reporting at that time.
by Spirit Rider
Wed May 23, 2018 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: Small Business Owner - how to build retirement wealth
Replies: 33
Views: 2817

Re: Small Business Owner - how to build retirement wealth

Since both employer matches and non-elective employer contributions are based on compensation, any reduction in compensation will be counter-productive to increased contributions.
by Spirit Rider
Wed May 23, 2018 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: Contribution limits to Roth IRA and 401(k) with small earned income
Replies: 7
Views: 552

Re: Contribution limits to Roth IRA and 401(k) with small earned income

Maximum total Roth 401k and Roth IRA contributions on $10,000 in W-2 wages or $10,000 in self-employed business profit. $10,000 in W-2 wages: Roth 401k: Employee elective contributions must be deducted from compensation not already received after mandatory deductions (minimum 7.65% employee share of...
by Spirit Rider
Wed May 23, 2018 5:49 pm
Forum: Investing - Help with Personal Investments
Topic: Not too late to open a SEP? And Backdoor ROTH?
Replies: 3
Views: 267

Re: Not too late to open a SEP? And Backdoor ROTH?

You can't have an active SEP and i401(k) in the same year. You'd probably want to do the SEP rollover next year. You can't maintain a 5305-SEP IRA for the same tax year as you maintain a one-participant 401k You can make a SEP IRA contribution for the 2017 tax year in 2018 and still adopt, maintain...
by Spirit Rider
Tue May 22, 2018 7:26 am
Forum: Investing - Theory, News & General
Topic: Ideal time/balance to start HSA drawdown?
Replies: 6
Views: 634

Re: Ideal time/balance to start HSA drawdown?

The main issue is when to take tax-free distributions of the unreimbursed qualified medical expenses. The last thing you want to do is die leaving what could have been tax-free distributions to you, be lump sum taxable income to a non-spouse beneficiary. The perfect answer is the day before you die....
by Spirit Rider
Tue May 22, 2018 7:04 am
Forum: Personal Finance (Not Investing)
Topic: High Deductible Healthcare Plan
Replies: 5
Views: 438

Re: High Deductible Healthcare Plan

Also, a plan of either spouse can take tax-free distributions for themselves, their spouse or their dependents. These distributions can be for any qualified medical expenses on or after the establishment date of the HSA account holder's first HSA.
by Spirit Rider
Tue May 22, 2018 6:58 am
Forum: Investing - Help with Personal Investments
Topic: Checked under the hood of index funds and investment firms
Replies: 8
Views: 1543

Re: Checked under the hood of index funds and investment firms

This no malfeasance on the part of the other index funds. In fact SEC regulations require them to distribute all of the underlying asset's capital gains. The OP just doesn't understand that Vangurd has a patent protected ability to treat their ETFs as a share class of their index funds. This allows ...
by Spirit Rider
Tue May 22, 2018 6:49 am
Forum: Personal Finance (Not Investing)
Topic: Over contribution on 401k for megaroth backdoor
Replies: 16
Views: 1202

Re: Over contribution on 401k for megaroth backdoor

You made the excess contributions either way. It is just much better for the excess contributions and earnings, to be returned from the qualified plan. They know just what the amounts are. If you have rolled over everything. Now you have to have the original excess contributions and earnings returne...
by Spirit Rider
Mon May 21, 2018 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k contribution mechanics and strategy
Replies: 2
Views: 279

Re: Solo 401k contribution mechanics and strategy

By default a sole proprietor ship is just that. You are a self-employed sole proprietor and your spouse would be a W-2 employee. A second option is for the two of you to form a partnership, that requires more complexity and the filing of a partnership return. The third option is the use of a Qualifi...
by Spirit Rider
Mon May 21, 2018 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: Frontloading 401k Mistake
Replies: 27
Views: 2246

Re: Frontloading 401k Mistake

Here is what my TPA came back with: “I verified with our compliance department that there is no ability to shift deferrals between plans or to call the contributions to [First company]’s 401(k) plan an excess contribution. This participant made an affirmative election to contribution and it cannot ...
by Spirit Rider
Mon May 21, 2018 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: Frontloading 401k Mistake
Replies: 27
Views: 2246

Re: Frontloading 401k Mistake

Both employers could refuse to return the excess contributions. You would not be able to deduct them, have no way to establish basis and they would be taxable on withdrawal. Are you saying that the only penalty for leaving excess contributions in a tax deferred 401(k) is that you don't get the dedu...
by Spirit Rider
Mon May 21, 2018 11:16 am
Forum: Investing - Help with Personal Investments
Topic: Frontloading 401k Mistake
Replies: 27
Views: 2246

Re: Frontloading 401k Mistake

Yes, if matched employee after-tax contributions are not an option. You should try to determine what your current employer plan's policy is on requests to remove excess contributions after separation of employment. Otherwise it makes no sense to make contributions that get matched only to have the c...
by Spirit Rider
Mon May 21, 2018 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Combine IRA into 401k account
Replies: 1
Views: 177

Re: Combine IRA into 401k account

No, Roth IRA accounts can only be transferred/rolled over to another Roth IRA account.
by Spirit Rider
Mon May 21, 2018 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth in 2018. Has anything changed?
Replies: 19
Views: 5185

Re: Backdoor Roth in 2018. Has anything changed?

IRS regulations prohibit rolling over non-deductable basis from a traditional IRA to a qualified plan. This is the reason there is a special rule that treats assets rolled over from traditional IRAs to first come from pre-tax assets. This is what allows you to isolate basis in traditional IRA. The I...
by Spirit Rider
Mon May 21, 2018 10:31 am
Forum: Personal Finance (Not Investing)
Topic: child turning 18 - stop filing as dependent?
Replies: 23
Views: 1947

Re: child turning 18 - stop filing as dependent?

Even dependents get their standard deduction, they just aren't eligible for their personal exemption, and personal exemptions are worth $0 with the tax reform. Depending on the amount earned at the summer job, and assuming the daughter can be claimed as a dependent, the standard deduction may not b...
by Spirit Rider
Mon May 21, 2018 10:22 am
Forum: Investing - Help with Personal Investments
Topic: Frontloading 401k Mistake
Replies: 27
Views: 2246

Re: Frontloading 401k Mistake

The $18,500 is an employee elective contribution limit. Simply wiithdrawing the $14,500 contributions and earnings from the first employer after separation will achieve nothing. You must remove them as excess contributions . The problem is that they are not excess contributions until after the end o...
by Spirit Rider
Sat May 19, 2018 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: Max Out 457B and 403B at Hospital/University?
Replies: 20
Views: 1297

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: 1297

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

Am I right to assume that even if Hospital HR let me contribute to the Hospital 401A (doesn't appear on our HR website that we can) that I still should not contribute more than 1.5K due to having the 403B contribution at 17K. In other words isn't the rule that you combine employee contributions to ...
by Spirit Rider
Sat May 19, 2018 7:14 am
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 76
Views: 9485

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: 1297

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: 1297

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: 1297

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: 1297

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: 8
Views: 727

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: 132
Views: 8061

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: 727

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: 2065

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: 1762

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: 2065

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: 9984

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: 529

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: 282

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: 490

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: 529

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: 198

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: 414

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: 490

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: 1281

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: 1743

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&...