Search found 8862 matches

by Spirit Rider
Thu Nov 15, 2018 8:17 am
Forum: Personal Consumer Issues
Topic: fuel for snowblower
Replies: 42
Views: 2238

Re: fuel for snowblower

SIgh. Almost for certain American ethanol requirements 1). don't reduce end costs for consumers for gasoline 2). are not good for the environment on a life cycle basis (fertilizing food crops and then converting them to ethanol. Except, the use of ethanol in reformulated (oxygenated) gasoline is go...
by Spirit Rider
Thu Nov 15, 2018 7:55 am
Forum: Personal Finance (Not Investing)
Topic: rule of thumb for using HSA funds?
Replies: 39
Views: 2852

Re: rule of thumb for using HSA funds?

Sorry, I can't wrap my head around the "saving receipts" business. My wife opened HSA through her employer and contributed close to 6K this year.However, in Feb we came to know we are having a baby.Since the family deductible was 5000, we paid all the doctor visits,lab work,pregnancy related bills ...
by Spirit Rider
Thu Nov 15, 2018 7:33 am
Forum: Investing - Help with Personal Investments
Topic: Moving to company that allows Mega Backdoor Roth Conversion - Any prep needed?
Replies: 26
Views: 1983

Re: Moving to company that allows Mega Backdoor Roth Conversion - Any prep needed?

5) If you are an HCE, clawbacks can make things very...interesting. Could you elaborate on clawbacks? After-tax contributions are subject to Actual Contribution Percentage (ACP) anti-discrimination testing even in a Safe Harbor 401k plan. ACP testing compares the Average Contribution Rate (ACR) of ...
by Spirit Rider
Wed Nov 14, 2018 11:43 pm
Forum: Personal Finance (Not Investing)
Topic: Does it ever make sense to pay more tax intentionally?
Replies: 15
Views: 1460

Re: Does it ever make sense to pay more tax intentionally?

The IRS has longstanding guidance that Schedule C tax filers must take all legitimate business deductions they are entitled to. In fact they have a due diligence program for tax preparers and will sanction them with severe penalties for failure to do due diligence on their client's returns You can n...
by Spirit Rider
Wed Nov 14, 2018 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Cobra - Initial payments
Replies: 3
Views: 330

Re: Cobra - Initial payments

It is all or nothing. you have to pay all of the months to get coverage for December. COBRA allows you to delay and then get retroactive coverage, but you must pay for all of the retroactive coverage
by Spirit Rider
Wed Nov 14, 2018 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: new 401k plan, want to make it mega back door roth friendly
Replies: 8
Views: 761

Re: new 401k plan, want to make it mega back door roth friendly

The relevant IRS regulation is 26 CFR 1.401(m)-2 - ACP test. My eyes glaze over trying to read and understand this, but I think employer contributions and employee after-tax contributions are combined. I am not aware of any online ACP testing resources. Small local TPAs may be your best bet. I'm no...
by Spirit Rider
Wed Nov 14, 2018 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: Should we open 1 or 2 HSAs?
Replies: 10
Views: 696

Re: Should we open 1 or 2 HSAs?

When I turn 65 and go on Medicare, she is allowed to stay on the employer HDHP until she turns 65 but with no employer HSA contribution. This will then be a self-only plan, she will still be an HSA eligible individual and can contribute to her HSA account up to the self-only limit + the $1000 catch...
by Spirit Rider
Wed Nov 14, 2018 11:14 am
Forum: Personal Finance (Not Investing)
Topic: rule of thumb for using HSA funds?
Replies: 39
Views: 2852

Re: rule of thumb for using HSA funds?

Personally, I don't find it realistic to save receipts for the 30+ years I would need to in order to maximize the HSA. You do realize you are required to save proof of service (bills, EOBs, etc..) and payment (receipts, financial records, etc..) For at least three years after the tax filing deadlin...
by Spirit Rider
Wed Nov 14, 2018 11:02 am
Forum: Investing - Help with Personal Investments
Topic: Oops! Edward Jones tops Vanguard in customer survey
Replies: 35
Views: 3865

Re: Oops! Edward Jones tops Vanguard in customer survey

Con men are always your best buddy while they are fleecing you. Why would these results suprise anyone. Especially, since the vast majority of EJ customers don't realize their underperformance or just how much they are paying for the hand holding/glad handing.
by Spirit Rider
Wed Nov 14, 2018 10:45 am
Forum: Personal Consumer Issues
Topic: fuel for snowblower
Replies: 42
Views: 2238

Re: fuel for snowblower

Ethanol fears are way overblown and mostly and urban legend. Ethanol is a problem in only a few cases: ... I 100% agree. I have an Arien's 20+ year old snowblower that has seen a lot of heavy use. I have a 100 yard driveway and New Hampshire winters. It has been 10 -12 years since most of the count...
by Spirit Rider
Wed Nov 14, 2018 10:26 am
Forum: Investing - Help with Personal Investments
Topic: Transfering from 401K yearly into trad IRA question
Replies: 18
Views: 736

Re: Transfering from 401K yearly into trad IRA question

Whether you can rollover to a previous employer's plan is up to them. With the notable exception of the TSP, it is less common for plans to allows this.
by Spirit Rider
Wed Nov 14, 2018 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Transfering from 401K yearly into trad IRA question
Replies: 18
Views: 736

Re: Transfering from 401K yearly into trad IRA question

Yes, separation always makes your 401k distributable. You can roll it over to another qualified plan or IRA. You can also leave it in the prior plan, but if the balance is < $5K, the plan can force you out. You can leave the funds in the plan an indefinite length of time and rollover much later. If ...
by Spirit Rider
Wed Nov 14, 2018 10:11 am
Forum: Personal Finance (Not Investing)
Topic: HSA contribution limits & Medicare
Replies: 11
Views: 846

Re: HSA contribution limits & Medicare

You're welcome. This HSA/Medicare retroactive gotcha is still not that well known. In fact the SSA and Medicare provided no information on this for the first 10 (10) years of HSAs. It has only the last few years that the Medicare website and the Medicare and You even briefly mentioned it. Also, I ca...
by Spirit Rider
Wed Nov 14, 2018 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Transfering from 401K yearly into trad IRA question
Replies: 18
Views: 736

Re: Transfering from 401K yearly into trad IRA question

OP, you can not do what you want period. It has nothing to do with your employer's 401k plan rules. IRS regulations prohibit the non-hardship in-service withdrawal/rollover of employee elective deferrals and non-vested employer contributions prior to age 59 1/2. In-service withdrawals/rollovers of v...
by Spirit Rider
Wed Nov 14, 2018 1:03 am
Forum: Personal Finance (Not Investing)
Topic: rule of thumb for using HSA funds?
Replies: 39
Views: 2852

Re: rule of thumb for using HSA funds?

Follow-up question - at some point, the HSA funds should be spent for medical expenses. If they aren't used for current expenses, how do you determine when they should be used? You are still allocating the funds for current expenses you are just deferring reimbursement to allow the funds to grow fo...
by Spirit Rider
Wed Nov 14, 2018 12:38 am
Forum: Personal Finance (Not Investing)
Topic: HSA contribution limits & Medicare
Replies: 11
Views: 846

Re: HSA contribution limits & Medicare

@Artsdoctor, If you go back and read my post. I said that if you enroll in Medicare >= age 65, it is automatically retroactive by up to six months, not that Medicare enrollment is automatic. Medicare enrollment itself is only automatic in two cases. First, you are automatically enrolled in Medicare ...
by Spirit Rider
Wed Nov 14, 2018 12:09 am
Forum: Personal Finance (Not Investing)
Topic: How to handle forced HSA distribution
Replies: 4
Views: 524

Re: How to handle forced HSA distribution

You do not have to add any additional qualified medical expenses if you will have >= $1.13 in unreimbursed expenses by the end of this year. As long as your total expenses are >= your total distributions, you do not have a non-qualified distribution.
by Spirit Rider
Tue Nov 13, 2018 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: HSA contribution limits & Medicare
Replies: 11
Views: 846

Re: HSA contribution limits & Medicare

HSA eligibility is based on the 1st of the month. Medicare coverage begins on the first of a month. So the month you start Medicare you are not an HSA eligible individual for that month. @HueyLD is correct with one small correction. Medicare Part A enrollment > age 65 is automatically retroactive up...
by Spirit Rider
Tue Nov 13, 2018 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: rule of thumb for using HSA funds?
Replies: 39
Views: 2852

Re: rule of thumb for using HSA funds?

Generally speaking: If you are maximizing all available tax-advantaged retirement accounts, you should pay all qualified medical expenses out of pocket and save proof. By doing this you are expanding your tax-advantaged account space. If you are not maximizing your tax-advantaged retirement accounts...
by Spirit Rider
Tue Nov 13, 2018 8:09 am
Forum: Investing - Help with Personal Investments
Topic: Small business (5 employees) 401k - cheapest options
Replies: 14
Views: 952

Re: Small business (5 employees) 401k - cheapest options

Can i ask why you recommend SEP-IRA under 10 employees? 1) SEP-IRA's are free. At around $5k, that is $500 or more per employee. Better off just putting the $500 into the employee SEP-IRA accounts. What are these numbers you are using. The maximum employer contribution is 25% of compensation. If yo...
by Spirit Rider
Mon Nov 12, 2018 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth before RMD
Replies: 2
Views: 353

Re: TSP to Roth before RMD

Next year TSP starts being more flexible also - but my understanding is that once RMDs start - I can't convert the taxable 401K to Roth. Is this correct? You can still do Roth conversions after RMDs start. It is just that you need to take the RMD first. After the RMD is taken you can do whatever Ro...
by Spirit Rider
Mon Nov 12, 2018 9:38 pm
Forum: Investing - Help with Personal Investments
Topic: Small business (5 employees) 401k - cheapest options
Replies: 14
Views: 952

Re: Small business (5 employees) 401k - cheapest options

BoglePaul wrote:
Mon Nov 12, 2018 4:20 pm
My advice is to stick with a SEP-IRA.
A SEP IRA is almost never a good choice for a small business. There are only employer contributions and generally they must be the same exact percentage contribution to every employee including the owner.
by Spirit Rider
Mon Nov 12, 2018 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Is maxing out Tax defered 401(k) enough?
Replies: 45
Views: 4208

Re: Is maxing out Tax defered 401(k) enough?

I think you'll be OK. If you both max your 401k that is about 15% of your salaries. Plus your employers kick in another 4-7%. If you keep saving 19-22% of your salaries you should be in good shape IMO. I guess it depends on how you define early retirement.Your expenses will go down when your kids m...
by Spirit Rider
Mon Nov 12, 2018 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Bulk After-Tax 401K
Replies: 1
Views: 210

Re: Bulk After-Tax 401K

Only employee elective contributions must be deducted from payroll. There is no IRS regulation prohibiting employee after-tax contributions from being made from external after-tax funds. However, the 401k plan rules must allow such contributions, which is relatively rare. One reason why is that empl...
by Spirit Rider
Mon Nov 12, 2018 12:22 am
Forum: Personal Finance (Not Investing)
Topic: Paying health insurance for nanny - tax implications? QSEHRA?
Replies: 1
Views: 184

Re: Paying health insurance for nanny - tax implications? QSEHRA?

It isn't that you can't use a QSEHRA for less than two employes. There is no rule preventing it. This is because it is not actually necessary. You can reimburse with after-tax money or pre-tax money through an HRA. The reason you are having a hard time finding anything about it is because reimbursin...
by Spirit Rider
Sun Nov 11, 2018 10:56 pm
Forum: Personal Finance (Not Investing)
Topic: Wife approved for SS Disability. Any way to reduce the wait time for Medicare?
Replies: 8
Views: 1057

Re: Wife approved for SS Disability. Any way to reduce the wait time for Medicare?

There is a specific COBRA provision to cover this situation. The COBRA period is normally 18 months. However, if you notify the plan within 60 days of the disability determination, you can elect to continue COBRA for an additional 11 months. This 29 months is designed to cover the 5 months before be...
by Spirit Rider
Sun Nov 11, 2018 6:20 pm
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th
Replies: 118
Views: 9285

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Last I knew, Fidelity's current HSA fees were $12/quarter if an employer was no longer paying them, with no cash minimum. I believe you could invest in just about anything. I don't know about the 0% ER index funds. This would be a welcome addition to the HSA custodian choice. Now, if we could just g...
by Spirit Rider
Sun Nov 11, 2018 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Should we open 1 or 2 HSAs?
Replies: 10
Views: 696

Re: Should we open 1 or 2 HSAs?

So. What's clear is that we'd give up $1,000 a year in contribution limit if we only had one HSA while both are eligible. Although the wording in pub 969 isn't as clear as it should be, I believe that statement is true only if you are each covered under separate HDHP policies. I think the wording i...
by Spirit Rider
Sun Nov 11, 2018 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Should we open 1 or 2 HSAs?
Replies: 10
Views: 696

Re: Should we open 1 or 2 HSAs?

StopIroningShirts wrote:
Sun Nov 11, 2018 2:07 pm
If one of the two of you make less than the FICA l aimit, I would load up all the HSA contributions into that account. Putting money in before social security taxes is a sweet benefit
Only a named insured can make HSA contributions by section 125 payroll deductions.
by Spirit Rider
Sun Nov 11, 2018 10:59 am
Forum: Personal Finance (Not Investing)
Topic: ACA subsidies and single LLC
Replies: 27
Views: 2168

Re: ACA subsidies and single LLC

Thanks this is so helpful! My daughter already has a Roth IRA that she contributes $600 a year to. Are you saying I can open a regular IRA for her and contribute on her behalf what ever(up to ?K) is needed to get below the cap? This gives me a perfect back up plan! Well, she must open the tradition...
by Spirit Rider
Sun Nov 11, 2018 10:43 am
Forum: Personal Finance (Not Investing)
Topic: ACA subsidies and single LLC
Replies: 27
Views: 2168

Re: ACA subsidies and single LLC

Isn't the 25 percent employer contribution based on W-2 Box 1 compensation? So essentially you can match 25 percent of self-employment health insurance and HSA if run through the corporation? You are correct. However, the 25% of a S-Corp's reasonable compensation including those will be much lower ...
by Spirit Rider
Sun Nov 11, 2018 8:32 am
Forum: Personal Finance (Not Investing)
Topic: ACA subsidies and single LLC
Replies: 27
Views: 2168

Re: ACA subsidies and single LLC

Yes, the S-Corp sweet spot is about 1/2 - 1 1/2 the SS maximum wage base (MWB), but only if you do not have other W-2 wages causing you to exceed the SS MWB However, an S-Corp shareholder-employee's W-2 wages are not included in Qualified Business Income (QBI) for purposes of the new section 199A 20...
by Spirit Rider
Sun Nov 11, 2018 7:29 am
Forum: Personal Finance (Not Investing)
Topic: ACA subsidies and single LLC
Replies: 27
Views: 2168

Re: ACA subsidies and single LLC

It would be a last resort, but you could make a deductible traditional IRA contribution for your daughter. It would not normally make sense because it would not reduce her tax liability, but it would reduce her AGI/ACA MAGI, reducing the household AGI/ACA MAGI. The beauty of that is you can do it wh...
by Spirit Rider
Sat Nov 10, 2018 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: Help! How do I get rid of an old excess contribution in my 403(b)/401(k)?
Replies: 9
Views: 533

Re: Help! How do I get rid of an old excess contribution in my 403(b)/401(k)?

You are correct that you can take distributions from the 403b because you have separated from that employer, but not from a current employer. If you are not eligible for one of the early withdrawal penalty exemptions. You will pay income tax and a 10% penalty on the excess contribution and earnings ...
by Spirit Rider
Sat Nov 10, 2018 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Best type of retirement plan for small nonprofit?
Replies: 10
Views: 563

Re: Best type of retirement plan for small nonprofit?

@teen persuasion I wonder if this isn't a SIMPLE IRA plan from WF and the board treasurer misunderstood/miscommunicated. SIMPLE IRA plans require an employer contribution. It can either be a 2% non-elective contribution to all employees regardless if they contribute or up to a 3% match. If they are ...
by Spirit Rider
Sat Nov 10, 2018 6:42 pm
Forum: Investing - Help with Personal Investments
Topic: Selling Shares of UTMA Account
Replies: 46
Views: 3386

Re: Selling Shares of UTMA Account

Nothing has changed in the forms to my knowledge, but my last post shows that obviously I can't do math. With $3000 in earned income, there is a $350 unearned income standard deduction meaning the first $350 is tax free. That leaves $2100 - $350 = $1750 taxed at the dependent's tax rate. So that sti...
by Spirit Rider
Sat Nov 10, 2018 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: Help! How do I get rid of an old excess contribution in my 403(b)/401(k)?
Replies: 9
Views: 533

Re: Help! How do I get rid of an old excess contribution in my 403(b)/401(k)?

Jon H wrote:
Sat Nov 10, 2018 4:19 pm
https://www.irs.gov/pub/irs-pdf/f5329.pdf
Form 5329 has nothing to do with qualified plans and even Form 5330 does not apply in these circumstances.
by Spirit Rider
Sat Nov 10, 2018 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k Vs. SEP IRA question
Replies: 7
Views: 478

Re: Solo 401k Vs. SEP IRA question

Did you only change the business profit in the spreadsheet without any other changes? If so, I do come up with $5,920 instead of the calculated $5,893 for after-tax contributions. However, this is a rather unusual scenario where no employee elective contributions can be made but $2,000 out of the $6...
by Spirit Rider
Sat Nov 10, 2018 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k for Sole proprietorship question
Replies: 5
Views: 389

Re: Solo 401k for Sole proprietorship question

Only when net self-employment earnings (business profit - 1/2 SE tax) < the 402g limit (2018 = $18.5K) / 0.6 = $30,833), does the choice of employee vs. employer matter for contribution limits. In this case maximizing employer contributions first will restrict your employee elective and total contri...
by Spirit Rider
Sat Nov 10, 2018 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Help! How do I get rid of an old excess contribution in my 403(b)/401(k)?
Replies: 9
Views: 533

Re: Help! How do I get rid of an old excess contribution in my 403(b)/401(k)?

I doubt that the 2016 posting date matters if the deferral was for a 2015 payroll. You bring up a good point, but the deposit date to the 401k account does not matter. However, what does matter is what the "pay date" and not the pay period date. Individual taxpayers are always "cash" basis tax paye...
by Spirit Rider
Sat Nov 10, 2018 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k Vs. SEP IRA question
Replies: 7
Views: 478

Re: Solo 401k Vs. SEP IRA question

I believe the The Finance Buff's spreadsheet may 2 errors based on what I learned from Spirit Rider's posts in this forum: 1. catch up contribution does not count toward the compensation limit. So the catch up contribution has no effect in the after-tax contribution calculation. Correct and in the ...
by Spirit Rider
Sat Nov 10, 2018 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Help! How do I get rid of an old excess contribution in my 403(b)/401(k)?
Replies: 9
Views: 533

Re: Help! How do I get rid of an old excess contribution in my 403(b)/401(k)?

Now that the deadline has passed, you can not withdraw the excess contribution and earnings unless it otherwise becomes distribuatble under IRC Section 401(k)(2)(B); e.g. severance from employment, death, disability, age 59 1/2, etc... If you had exceeded the 402g limit solely with pre-tax deferrals...
by Spirit Rider
Sat Nov 10, 2018 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Doing taxes by hand
Replies: 83
Views: 4784

Re: Doing taxes by hand

The Free Fillable Forms allow you to file electronically and most importantly do basic math calculations and validations. It makes absolutely no sense to take the unnecessary risk of filing completely manually. Do you think you will go to jail if you make a small arithmetic mistake? No, the IRS cat...
by Spirit Rider
Fri Nov 09, 2018 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Best type of retirement plan for small nonprofit?
Replies: 10
Views: 563

Re: Best type of retirement plan for small nonprofit?

I second everything that @Duckie stated. However, I would add that Vanguard charges each SIMPLE IRA participant an administrative fee of $25/fund/year. Fidelity recently removed all adminstrative fees for their SIMPLE IRA. Another viable option for a small employer such as yours is Guideline's safe ...
by Spirit Rider
Fri Nov 09, 2018 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Doing taxes by hand
Replies: 83
Views: 4784

Re: Doing taxes by hand

As long as you're willing to read every line, follow the references to other forms/lines and read the instructions when you don't understand something you'll do fine. It takes some patience, but you'll learn a lot. You can still file electronically and fill out all the forms directly instead of thr...
by Spirit Rider
Fri Nov 09, 2018 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: IRA "direct rollover"
Replies: 5
Views: 455

Re: IRA "direct rollover"

Just to clarify. If you receive a distribution check made out exclusively to you and you cash/deposit it and it is from/to a qualified plan. There is no limit on the number of times you may do this per 12 month period. It is only when that occurs and it is both from and to a like IRA i.e. tIRA -> tI...
by Spirit Rider
Fri Nov 09, 2018 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Statue of limitations on taking back unvested $ in 401K? What if value of match is now lower than original deposits?
Replies: 10
Views: 860

Re: Statue of limitations on taking back unvested $ in 401K? What if value of match is now lower than original deposits?

I don't think people understand what not vested means. It is not your money until the vesting occurs. You can not rollover unvested contributions. It only vests by length of service. It will never vest if you are no longer employed. There is no SOL under which you will get the contributions. As has ...
by Spirit Rider
Fri Nov 09, 2018 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Catch up Contributions
Replies: 3
Views: 502

Re: Catch up Contributions

and must be by payroll deduction by a pay date of 12/31.
by Spirit Rider
Fri Nov 09, 2018 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: IRA "direct rollover"
Replies: 5
Views: 455

Re: IRA "direct rollover"

My question is whether the rule that prohibits more than one IRA-to-IRA rollover in a twelve month period applies both to direct and indirect rollovers. I'm finding conflicting information on this. Some say direct rollovers are unlimited, but they may be using "direct rollover" interchangeably with...
by Spirit Rider
Fri Nov 09, 2018 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k Vs. SEP IRA question
Replies: 7
Views: 478

Re: Solo 401k Vs. SEP IRA question

I have two jobs, one W2 which i contribute 18.5K to 401k . I have a 1099 independent contractor that i make about $250k no employees. II cannot make catch up contributions (age 40). Accountant says i can put away 18.5k in 403b , plus 55k in sep IRA. for total of 73.5k. I thought the most you can pu...