Search found 8293 matches

by Spirit Rider
Tue Aug 14, 2018 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: HSAs
Replies: 2
Views: 185

Re: HSAs

These are pretty standard HSA issues. You should really be able to research these on your own. Medicare Part B and D premiums are qualified medical expenses. Medicare Supplement (Medigap) premiums are not. If you enroll in Medicare, that makes you ineligible for HSA contributions retroactively up si...
by Spirit Rider
Tue Aug 14, 2018 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: SEP to solo-401k
Replies: 5
Views: 252

Re: SEP to solo-401k

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

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

Vanguard has a 5305-SEP IRA.
by Spirit Rider
Tue Aug 14, 2018 6:46 pm
Forum: Investing - Help with Personal Investments
Topic: Clarification ref Governmental 457b distributions
Replies: 11
Views: 642

Re: Clarification ref Governmental 457b distributions

They can all be accessed before 59 1/2, just with applicable taxation.
by Spirit Rider
Tue Aug 14, 2018 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k / TD Ameritrade
Replies: 13
Views: 416

Re: Solo 401k / TD Ameritrade

Hi Investing.Newbie. Yes I need a Roth option so I am thinking of doing the following 2 things 1) Roll over my i401k 2) Create a new roth i401k I want to put away some after-tax money because I'm expecting some withdrawals in around 10 yrs time period for my kids college. I am thinking about roth i...
by Spirit Rider
Tue Aug 14, 2018 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: First time ACA coverage with question
Replies: 21
Views: 1712

Re: First time ACA coverage with question

Thanks Huey Yes i did consider cobra but it would be >$2000/month. I did call the university today and they said even if we did not sign up for fall insurance that we could get spring coverage started 1/1/19 so i think that is what we would do. I think we will put her on student insurance even if i...
by Spirit Rider
Tue Aug 14, 2018 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: Clarification ref Governmental 457b distributions
Replies: 11
Views: 642

Re: Clarification ref Governmental 457b distributions

I thought you could make qualified withdrawals upon separation from the employer before 59.5 with a 457b? Is the rule different for the Roth version? As I already said; 457b withdrawals are not "qualified" withdrawals, they are "penalty-free" withdrawals. Traditional 457b withdrawals are subject to...
by Spirit Rider
Mon Aug 13, 2018 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: Contribution to business 401k Question
Replies: 4
Views: 271

Re: Contribution to business 401k Question

From the IRS' point of view there is no difference between the a default single member LLC and the owner. There is no IRS problem with contributing this money from your personal checking account to your business 401k. Could this be used to pierce the LLC's liability shield? Possibly, but it was prob...
by Spirit Rider
Mon Aug 13, 2018 6:11 pm
Forum: Investing - Help with Personal Investments
Topic: IRA rollover mixed pre/post tax question
Replies: 5
Views: 208

Re: IRA rollover mixed pre/post tax question

You should always do direct rollovers even if the rollover such as this one is not subject to the one IRA rollover/12 month period rule. Regardless if the 401k plan will accept a check from you personally.
by Spirit Rider
Mon Aug 13, 2018 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Applying for Internal Jobs and Informing Current Manager
Replies: 8
Views: 407

Re: Applying for Internal Jobs and Informing Current Manager

Speaking as someone who has been both an individual contributor and in management at five Fortune 500 companies. Who has had long term overseas assignments and direct reports doing the same. I suggest it is not necessary to immediately inform your manager. It is perfectly fine to socialize the oppor...
by Spirit Rider
Mon Aug 13, 2018 4:02 pm
Forum: Personal Consumer Issues
Topic: Phone Plan for US-Child doing a Semester Abroad (VerizonWirelss)
Replies: 35
Views: 1035

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

There is no need to get a different phone. Phones on postpaid plans of all of the major U.S. carriers have been unlocked for years regardless of device payment plans. If you have a current device payment plan, you will have to pay it off to terminate the plan. I don't know if Verizon might have a su...
by Spirit Rider
Mon Aug 13, 2018 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 63
Views: 4953

Re: Retirement accounts and physician SCorps and Tax Reform

See the edit to my last post adding the last paragraph after you started your reply. A sole proprietor can just as easily contribute to a defined benefit plan. It may be necessary to amend the plan to change the plan sponsor from the S-Corp to a sole proprietorship. Note: You should engage a profess...
by Spirit Rider
Mon Aug 13, 2018 3:23 pm
Forum: Investing - Help with Personal Investments
Topic: IRA rollover mixed pre/post tax question
Replies: 5
Views: 208

Re: IRA rollover mixed pre/post tax question

A person can only rollover pre-tax IRA balances into a 401k. Once she has determined that her 401k plan will accept IRA rollovers. She should rollover all pre-tax balances in all traditional, SEP and SIMPLE IRA accounts to the 401k. The pre-tax balance with be the total balance - $130. Once she has ...
by Spirit Rider
Mon Aug 13, 2018 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 63
Views: 4953

Re: Retirement accounts and physician SCorps and Tax Reform

Any employer retirement plan contribution in an S-Corp is deducted on Form 1120S Line 17. Therefore, it reduces the ordinary business income and distributions that will be the basis for any Qualified Business Income (QBI) deduction. If you are paying little to no distributions due to W-2 wages and e...
by Spirit Rider
Mon Aug 13, 2018 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: Clarification ref Governmental 457b distributions
Replies: 11
Views: 642

Re: Clarification ref Governmental 457b distributions

That is good advice in general, but plan provisions can not override tax law.
by Spirit Rider
Mon Aug 13, 2018 10:12 am
Forum: Personal Finance (Not Investing)
Topic: First time ACA coverage with question
Replies: 21
Views: 1712

Re: First time ACA coverage with question

I assume I have to stay over 138% and less than 400% poverty level for 2 people to avoid medicaid and keep in subsidy territory... If you live in a state that did not expand Medicare, such as Texas where I live, the range is 100% to 400% of the Federal Poverty Level for subsidies. Medicare has noth...
by Spirit Rider
Mon Aug 13, 2018 10:08 am
Forum: Personal Consumer Issues
Topic: Should I Do This? [borrow from relative to pay off loan]
Replies: 55
Views: 2735

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

While I agree in principle with the sentiment of selling the car buying a less expensive car. However, the reality is not always that simple. First we need to determine if the OP can even afford to keep the car. OP, to better answer your situation, we need more information: What is your income and m...
by Spirit Rider
Mon Aug 13, 2018 8:59 am
Forum: Investing - Help with Personal Investments
Topic: Clarification ref Governmental 457b distributions
Replies: 11
Views: 642

Re: Clarification ref Governmental 457b distributions

457b withdrawals are "penalty-free", but are subject to the underlying taxation. This means that traditional (pre-tax) 457b distributions are 100% subject to ordinary income tax. Unlike a Roth IRA where there are ordering rules allowing contributions and 5+ year conversions to come out tax-free. Non...
by Spirit Rider
Sun Aug 12, 2018 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 UTMA tax gain harvesting
Replies: 4
Views: 343

Re: 2018 UTMA tax gain harvesting

Two points. I don't know why you are stopping at $2599 and $4699. The 15% LTCG and QDIV rate bracket starts at $2,600. That means $2600 is taxed at the first bracket rates, not $2599. Also, it is not as simple as a $1050 deduction and $1050 taxed at the child's rate. There are pro-rata worksheets fo...
by Spirit Rider
Sun Aug 12, 2018 10:49 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard updated 1099 in August!
Replies: 28
Views: 1929

Re: Vanguard updated 1099 in August!

This post is mainly to rant and vent, but I think about all the extra time and hassle spent by not only by the customers receiving these late amended documents, but then also by the IRS workers who have to process all the amended 1040s now due. Just curious if Vanguard gets any penalty - other than...
by Spirit Rider
Sun Aug 12, 2018 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: Keeping track of 401k and roth 401k contributions while doing rollovers
Replies: 2
Views: 184

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

You are not doing a rollover to the brokerage link. It still exists entirely within the accounting of your 401k plan. Your plan must separately account for the assets (pre-tax {employee elective deferrals, employer contributions and rollovers}, Roth {employee elective contributions and rollovers}, e...
by Spirit Rider
Sun Aug 12, 2018 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: Family HDHP & HSA
Replies: 4
Views: 337

Re: Family HDHP & HSA

tfb is correct. But to source it: So because the coverage is for you + 1 (your child), you can make the family contribution. If your child is not a dependent, then their coverage is on an HDHP for them +1 (you) , so they can also contribute at the family level, provided that they don't have any non...
by Spirit Rider
Sun Aug 12, 2018 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 63
Views: 4953

Re: Retirement accounts and physician SCorps and Tax Reform

It is a complex question based on the difference in FICA taxes on the S-Corp shareholder-employee's reasonable salaries vs. SE taxes as self-employed. This is complicated by the new 199A 20% QBI deduction. The IRS has issued a notice of proposed rule making including regulations. As expected S-Corp ...
by Spirit Rider
Sun Aug 12, 2018 7:24 pm
Forum: Investing - Theory, News & General
Topic: Maxed out 401k, can I contribute to an alternative?
Replies: 2
Views: 694

Re: Maxed out 401k, can I contribute to an alternative?

Entirely up to the previous employer. An employer is allowed, but not required to return excess employee elective contributions. Also, excess employee elective contributions can not be returned until the following year, but not later than 4/15. Many 401k plans will only return excess employee electi...
by Spirit Rider
Sun Aug 12, 2018 1:13 pm
Forum: Personal Consumer Issues
Topic: Why do two monitors with the same resolution display differently?
Replies: 10
Views: 691

Re: Why do two monitors with the same resolution display differently?

bman3 wrote:
Sun Aug 12, 2018 12:40 pm
Any display scaling / magnification configured on the 12" screen?
Add font type/size.
by Spirit Rider
Sun Aug 12, 2018 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: Best HSA for "dormancy" account
Replies: 6
Views: 456

Re: Best HSA for "dormancy" account

Unless you live in a state that doesn't recognize HSA accounts (AL, CA or NJ) there is no state transaction tax burden and there is never a federal transaction tax burden. That is why we call them tax-advantaged accounts.
by Spirit Rider
Sun Aug 12, 2018 11:59 am
Forum: Personal Consumer Issues
Topic: Liability only car insurance and my car destroyed
Replies: 15
Views: 2528

Re: Liability only car insurance and my car destroyed

dm200 wrote:
Sun Aug 12, 2018 10:58 am
If this was caused by another driver - but was "hit and run" - you get nothing.
Like most things having to do with car insurance, this is entirely dependent on state law. In many states, you are covered for UMPD in hit and run situations even if the other driver is not identified.
by Spirit Rider
Sun Aug 12, 2018 11:05 am
Forum: Personal Finance (Not Investing)
Topic: how much car can we afford?
Replies: 125
Views: 5127

Re: how much car can we afford?

Quibble all you want, but the purchase price in isolation is not a good metric to determine what you can afford.

I know people who buy a new car every two years or myself who goes 10 years+. There is a big difference in affordability.
by Spirit Rider
Sun Aug 12, 2018 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Distributions for mega-back door
Replies: 6
Views: 370

Re: Distributions for mega-back door

You’re only moving the $26,500 into a tIRA and then a Roth IRA. There is no need for the after-tax contributions to go to a traditional IRA. The after-tax contributions and if you choose the pre-tax earnings can be rolled over directly to a Roth IRA. In this case the pre-tax earnings would be taxab...
by Spirit Rider
Sun Aug 12, 2018 10:53 am
Forum: Personal Finance (Not Investing)
Topic: how much car can we afford?
Replies: 125
Views: 5127

Re: how much car can we afford?

The correct way to look at this is as a budget item. Your total amortized vehicle costs (amortized cash up front + financed cost - ending value) should not exceed 5% - 10% of your budget. The actual purchase price is then dependent on how often you change vehicles. If you trade up every four years v...
by Spirit Rider
Sun Aug 12, 2018 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Distributions for mega-back door
Replies: 6
Views: 370

Re: Distributions for mega-back door

According to the IRS (https://www.irs.gov/retirement-plans/rollovers-of-after-tax-contributions-in-retirement-plans), to accomplish a MBD Roth I have to rollover ALL of my pretax tax contributions along with the after-tax contribution each year? Is that correct? No, this is a very misleading page. ...
by Spirit Rider
Sun Aug 12, 2018 10:16 am
Forum: Personal Finance (Not Investing)
Topic: First time ACA coverage with question
Replies: 21
Views: 1712

Re: First time ACA coverage with question

I would add to 47Percent's last point. You should compare the cost/benefit difference between an ACA HSA qualifying HDHP (> 250% FPL) with/without your DD and the cost/benefit of her plan at her new employer. It may make sense to keep her on your plan until age 26 to allow taking advantage of 47Perc...
by Spirit Rider
Sun Aug 12, 2018 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Beating $55K annual 401K limit?
Replies: 7
Views: 1920

Re: Beating $55K annual 401K limit?

If they are unrelated employers, the first employer's annual additions are irrelevant for purposes of the annual addition limit at the new employer. The annual addition limit (2018 = $55K) is separate for each unrelated employer. You can make up to $55K in after-tax contributions subject to plan lim...
by Spirit Rider
Sun Aug 12, 2018 9:37 am
Forum: Personal Finance (Not Investing)
Topic: support vs. gift for college student
Replies: 6
Views: 692

Re: support vs. gift for college student

After all, a teenager would consider failing to provide a cell phone as child neglect and a crime against humanity. Good post but this is too funny. I don't think the IRS gives a * what teenagers think. True, but what is considered parental support has clearly evolved over the last 50 years. Techno...
by Spirit Rider
Sat Aug 11, 2018 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: Private Banking is a trap. Don't do it!
Replies: 55
Views: 6797

Re: Private Banking is a trap. Don't do it!

I would use; "I'm not interested", followed by; "Thank you for your time" if they persist and then I would hang up.

That is not being rude, they are.
by Spirit Rider
Sat Aug 11, 2018 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: Multiple tIRA accounts-- any reason to not consolidate?
Replies: 17
Views: 1191

Re: Multiple tIRA accounts-- any reason to not consolidate?

What is the IRA "through current employment?" If it is an employer SEP IRA or SIMPLE IRA, you will have to keep that separate. My IRA through work is with TRowePrice. It's just a regular IRA but I do get matching and of course can save more there than outside of work-- so I will keep it for now. I ...
by Spirit Rider
Sat Aug 11, 2018 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: support vs. gift for college student
Replies: 6
Views: 692

Re: support vs. gift for college student

Support of dependent is not a gift whether the dependent is a minor or not. However, what is support and what is a gift is not always clear cut for college students. I always start with a process of elimination. Establish items that are clearly support or clearly a gift. Support: If you think about ...
by Spirit Rider
Fri Aug 10, 2018 11:26 pm
Forum: Personal Finance (Not Investing)
Topic: HSAs - Rollovers
Replies: 7
Views: 397

Re: HSAs - Rollovers

An IRA -> HSA rollover is also subject to a testing period of the entire following year. If you fail the testing period the rollover is subject to a 10% penalty. The only time such a rollover makes sense is when you are < 59 1/2 and have no other way to fund the HSA and are reasonably certain that y...
by Spirit Rider
Fri Aug 10, 2018 10:53 pm
Forum: Investing - Help with Personal Investments
Topic: Multiple tIRA accounts-- any reason to not consolidate?
Replies: 17
Views: 1191

Re: Multiple tIRA accounts-- any reason to not consolidate?

What is the IRA "through current employment?"

If it is an employer SEP IRA or SIMPLE IRA, you will have to keep that separate.
by Spirit Rider
Fri Aug 10, 2018 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: Brokerage Account for Minor
Replies: 14
Views: 775

Re: Brokerage Account for Minor

All the money is not locked up until age 59 1/2. You can always withdraw contributions. Only the earnings are subject to qualified status.
by Spirit Rider
Fri Aug 10, 2018 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: UTMA
Replies: 5
Views: 317

Re: UTMA

If there is no financial aid in the picture a UTMA could help, but as livesoft pointed out you have to be aware of the kiddie tax rules. Grt2beOutdoors makes an excellent point. Deposits to UTMA accounts are irrevocable completed gifts to the beneficiary. The account is owned by the beneficiary and ...
by Spirit Rider
Fri Aug 10, 2018 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: UTMA
Replies: 5
Views: 317

Re: UTMA

It is too late to accumulate earnings in a UTMA and move them to a 529 to avoid financial aid considerations. Starting with the 2017/18 school year FAFSA uses the prior prior year. That means that the FAFSA for her 2020/21 college year will be based on 2018's income and assets. Any UTMA assets would...
by Spirit Rider
Fri Aug 10, 2018 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Should I tell my family/friend that they are making a financial mistake?
Replies: 87
Views: 7578

Re: Should I tell my family/friend that they are making a financial mistake?

You can even get into trouble without actually giving any advice. I was on one of my epic anti Edward Jones rants with the VP of Engineering when the senior accountant walked up. Being the oblivious person I am, I totally missed the purpose of the facial expressions, elbow to the ribs and the kick t...
by Spirit Rider
Fri Aug 10, 2018 7:55 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: 619
Views: 51966

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

Interesting point in the prospectus for the ZERO funds: The fund may impose a purchase maximum on shareholders that would limit the ability of shareholders to purchase fund shares if their total purchases or account balance exceeds a dollar threshold. It is common for mutual funds to reserve the ri...
by Spirit Rider
Thu Aug 09, 2018 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Need some advice - self employed
Replies: 13
Views: 990

Re: Need some advice - self employed

Great point and thank you for you advice. Having them as W2 employee would preclude me from having solo401k though, right? Nope. With the exception of Vanguard which is not a good choice for other reasons. All the other mainstream low cost brokerages allow the election of employee eligibility restr...
by Spirit Rider
Thu Aug 09, 2018 9:59 pm
Forum: Investing - Help with Personal Investments
Topic: Need some advice - self employed
Replies: 13
Views: 990

Re: Need some advice - self employed

It is absolutely improper to classify your children as Independent Contractors and pay them on a 1099. There is no possible way to meet IRS Behavoial/Financial Control and Relationship requirements. Not to mention it is massively counter-productive. With self-employment income, they will have to pay...
by Spirit Rider
Thu Aug 09, 2018 7:54 pm
Forum: Investing - Theory, News & General
Topic: Fidelity announced 10-for-1 fund splits in certain mutual funds
Replies: 18
Views: 3653

Re: Fidelity announced 10-for-1 fund splits in certain mutual funds

I remember back in 1999-2000 or so, Janus was touting a new fund with copy like this: 'Buy shares of Fund X during the initial subscription period for only $10 !' [ The initial subscription period was when the fund would gather assets, prior to doing any purchases] When I saw one of these ads, my o...
by Spirit Rider
Thu Aug 09, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA, Rollover IRA, Roth 401k dilemma
Replies: 5
Views: 323

Re: Roth IRA, Rollover IRA, Roth 401k dilemma

Just for clarity here, would the "pre-tax" amount to be rolled over into the 401k pre-tax account include gains on the recent non-deductible IRA contribution? Yes. The total balance - the total basis (non-deductible contributions) = the total pre-tax amount (pre-tax contributions and earnings on bo...
by Spirit Rider
Thu Aug 09, 2018 10:13 am
Forum: Investing - Help with Personal Investments
Topic: 401k for small business owner
Replies: 15
Views: 607

Re: 401k for small business owner

I have not found a better cost structure than guideline. $500 initial setup fee, then something like $8/user/mo participation fee. Zero AUM and uses mostly vanguard admiral funds. I am not familiar with guideline - either positive or negative. Not a lot of reviews, but those there are have been mos...
by Spirit Rider
Thu Aug 09, 2018 9:33 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA, Rollover IRA, Roth 401k dilemma
Replies: 5
Views: 323

Re: Roth IRA, Rollover IRA, Roth 401k dilemma

In a 401k. Your employer contributions have to go into a pre-tax account. The fact that your employee elective contributions go to a designated Roth account is irrelevant. Just rollover your all your pre-tax (and just the pre-tax) IRA balances to your 401k pre-tax account. Note: It was irrelevant th...