Search found 8344 matches

by Spirit Rider
Tue Aug 21, 2018 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Unequal tax treatment of HSAs and 529s
Replies: 13
Views: 1215

Re: Unequal tax treatment of HSAs and 529s

Thanks! I've referred to that Q&A before and must have missed or forgotten that portion. You're correct, that's very specific. Other areas of the tax code dealing with various deductions are very specific about current year expenses being deductible only in that year. All l I have found for 529s is...
by Spirit Rider
Mon Aug 20, 2018 11:57 pm
Forum: Personal Finance (Not Investing)
Topic: Unequal tax treatment of HSAs and 529s
Replies: 13
Views: 1215

Re: Unequal tax treatment of HSAs and 529s

As far as I can tell, while IRS does not appear to directly address the tax exclusion of distributions from either 529 plans or HSAs for qualified prior year expenses, most web articles and posts here seem to indicate that taxpayers are ok to exclude this type of income for HSAs but not 529 plans. ...
by Spirit Rider
Mon Aug 20, 2018 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Help with Vanguard Individual 401(k)
Replies: 12
Views: 807

Re: Help with Vanguard Individual 401(k)

If you wait until tax time, you will be unable to make ANY employee elective contributions. I have zero experience with S corp 401(k) contributions and so defer on this issue, but one question: Does the profitability of the S corp business have no impact on the amount of 401(k) contributions allowe...
by Spirit Rider
Mon Aug 20, 2018 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k vs Sep Ira vs unique solo401k
Replies: 16
Views: 818

Re: Solo 401k vs Sep Ira vs unique solo401k

The workflow is: 1) You choose now as an employee how much you would contribute to the solo 401k, for example: 100% of income as after-tax non-Roth up to the IRS limit. 2) Wait until the business closes its books and determines what the 'income' in (1) really is. 3) (Optional) The business declares...
by Spirit Rider
Mon Aug 20, 2018 9:07 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K with Roth IRA contributions
Replies: 4
Views: 229

Re: Solo 401K with Roth IRA contributions

A self-employed individual can make an employee elective contribution of up to 100% of net self-employment earnings to a one-participant 401k. In this case $13,940. This leaves $0 compensation available for an IRA contribution based their own compensation. You have sufficient compensation such that ...
by Spirit Rider
Mon Aug 20, 2018 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Help with Vanguard Individual 401(k)
Replies: 12
Views: 807

Re: Help with Vanguard Individual 401(k)

A W-2 employee can not make any employee elective contributions until they have elected a salary reduction agreement. Usually this would be a percentage of compensation or a fixed amount per pay period. Employee elective contributions must be deducted from W-2 compensation not already received with ...
by Spirit Rider
Mon Aug 20, 2018 9:03 am
Forum: Personal Consumer Issues
Topic: No advance notice to employer
Replies: 37
Views: 3141

Re: No advance notice to employer

Advance Notice requirements of "retirement" in many cases were probably based on practical necessity. This was when a large percentage of employees had traditional pensions and employer sponsored retiree health insurance plans. Like Social Security, it took a reasonable amount of time to set up and ...
by Spirit Rider
Mon Aug 20, 2018 1:50 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice Needed- SEP to Solo 401K
Replies: 4
Views: 268

Re: Portfolio Advice Needed- SEP to Solo 401K

Alternatively, could I go ahead and fund $18,500 into the account upon opening and contribute more before I file? Maybe. You have a W-2 job but don't mention an employer retirement plan. If you have one and are contributing, that would affect how much you can contribute to the solo 401k. If you don...
by Spirit Rider
Mon Aug 20, 2018 1:43 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice Needed- SEP to Solo 401K
Replies: 4
Views: 268

Re: Portfolio Advice Needed- SEP to Solo 401K

Am I permitted to open up a solo 401k this year, the same year as I opened up a SEP-IRA? FYI-I have not contributed to the SEP for TY 2018. Yes. Even if you had contributed to the SEP IRA you could open the solo 401k. You just couldn't contribute to it Actually, making a SEP IRA contribution for th...
by Spirit Rider
Mon Aug 20, 2018 1:21 am
Forum: Investing - Help with Personal Investments
Topic: calculating employer contribution for solo 401k
Replies: 4
Views: 234

Re: calculating employer contribution for solo 401k

As pointed out by @Duckie. Your one-participant 401k contributions are based on your net self-employment earnings (business profit - 1/2 SE tax). Your employee elective contributions can be from whenever you have sufficient net self-employment earnings until your tax filing deadline including extens...
by Spirit Rider
Mon Aug 20, 2018 12:44 am
Forum: Investing - Theory, News & General
Topic: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)
Replies: 667
Views: 57777

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

The Fidelity ZERO funds are only available to Fidelity brokerage accounts , so everyone who wants one will have a brokerage account, and idle cash in those accounts will provide four times the return for Fidelity that it does for Vanguard. The ZERO funds are available in all retail (brokerage, cash...
by Spirit Rider
Mon Aug 20, 2018 12:15 am
Forum: Investing - Help with Personal Investments
Topic: Beating $55K annual 401K limit?
Replies: 15
Views: 2798

Re: Beating $55K annual 401K limit?

The $18,500 number is salary deferral, whether pretax or Roth. That limit applies across all your jobs. Besides salary deferral, other ways to get money into the plans is employer pretax contributions (profit sharing, match), an elective* after tax non Roth employee contributions. *Employee after-t...
by Spirit Rider
Sat Aug 18, 2018 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: contract to FTE - what to ask?
Replies: 10
Views: 496

Re: contract to FTE - what to ask?

We have no way to know if your current hourly rate was adequate. $120K -$130K seems like a stretch unless you were grossly underpaid at $70K/hour. The only way to know what a good salary would be. Is to do a comparative analysis in your area for someone with your knowledge, skills and experience. W...
by Spirit Rider
Sat Aug 18, 2018 9:59 pm
Forum: Investing - Help with Personal Investments
Topic: Help With 529 Plan
Replies: 16
Views: 1433

Re: Help With 529 Plan

Without going into the details. If there is possible eligibility for financial aid. It is best to have roughly 1/2 in a parental owned 529 plan and 1/2 in a grandparent owned 529 plan. Then the parent's 529 plan is used for everything but the last 2 1/2 years and the grandparent's 529 plan is used ...
by Spirit Rider
Sat Aug 18, 2018 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: contract to FTE - what to ask?
Replies: 10
Views: 496

Re: contract to FTE - what to ask?

We have no way to know if your current hourly rate was adequate. $120K -$130K seems like a stretch unless you were grossly underpaid at $70K/hour.

The only way to know what a good salary would be. Is to do a comparative analysis in your area for someone with your knowledge, skills and experience.
by Spirit Rider
Sat Aug 18, 2018 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Cash in Investments to pay off mortgage?
Replies: 5
Views: 681

Re: Cash in Investments to pay off mortgage?

I wouldn't necessarily be incurring capital gains taxes just to avoid having a mortgage. However, if you don't have any emergency/contingency funds besides that 5% of $130K = $6,500 sitting in cash. Even with stopping investments, 8 months * $1,300 = $10,400 of additional cash. That is still only ~$...
by Spirit Rider
Sat Aug 18, 2018 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Help with Vanguard Individual 401(k)
Replies: 12
Views: 807

Re: Help with Vanguard Individual 401(k)

Yes, the OP needs to clarify whether they are actually self-employed or a W-2 shareholder-employee of an S-Corp. Employee elective contributions and employer contributions are handled differently.
by Spirit Rider
Sat Aug 18, 2018 9:41 am
Forum: Investing - Help with Personal Investments
Topic: Help With 529 Plan
Replies: 16
Views: 1433

Re: Help With 529 Plan

The $10K/year withdrawal limit only applies to distributions for K-12 qualified educational expenses. There is no dollar limit on 529 plan distributions for college. Distributions are tax-free if made for qualified educational expenses. There is also a very large 529 balance limit on contributions. ...
by Spirit Rider
Sat Aug 18, 2018 7:30 am
Forum: Personal Finance (Not Investing)
Topic: A question of trust
Replies: 3
Views: 431

Re: A question of trust

Retirement accounts are not added to a trust. A trust is named as a beneficiary of such accounts. Making a trust the beneficiary of retirement accounts can complicate distribution options. Very often it is better to name individual primary and contingent beneficiaries. What exactly are the reasons y...
by Spirit Rider
Sat Aug 18, 2018 7:11 am
Forum: Personal Finance (Not Investing)
Topic: Non-owner contributing to home renovations: what's fair?
Replies: 39
Views: 2338

Re: Non-owner contributing to home renovations: what's fair?

Perhaps a simple equation might work best. If your house is now worth $500,000 (just an easy number to work with) and your partner pays for $10,000 in renovations, that $10,000 represents 2% of the value of your home. If you sell in five years and the sales price is $600,000, apply that same 2% to ...
by Spirit Rider
Sat Aug 18, 2018 6:52 am
Forum: Personal Finance (Not Investing)
Topic: My Wife is going to do an independent contracting job-401k?
Replies: 10
Views: 621

Re: My Wife is going to do an independent contracting job-401k?

Vanguard is not the best option for a one-participant 401k. Their Individual 401k plan has four disadvantages compared to the other four low cost mainstream one-participant 401k providers. None of the other mainstream one-participant 401k plan providers charge any fees. There is a $20 fee for each f...
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: 16
Views: 818

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: 768

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: 16
Views: 818

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: Personal Finance (Not Investing)
Topic: HSAs [Questions on qualified medical expense, contributions]
Replies: 13
Views: 1504

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: 667
Views: 57777

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: 768

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: 2755

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: 92
Views: 7284

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: 197

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: 2755

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: 197

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: 768

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: Personal Finance (Not Investing)
Topic: HSAs [Questions on qualified medical expense, contributions]
Replies: 13
Views: 1504

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: 313

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: 28
Views: 1907

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: 210

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: 451

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: 1713

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: 780

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: 338

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: 1713

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: 522

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: 28
Views: 1907

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: 863

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: 1713

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: 8
Views: 583

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: 567

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: 5553

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: 16
Views: 818

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...