Search found 7972 matches

by Spirit Rider
Fri Jun 22, 2018 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: Can I break up a 401k->401k rollover into multiple transactions?
Replies: 9
Views: 461

Re: Can I break up a 401k->401k rollover into multiple transactions?

There are no IRS prohibitions against multiple rollovers. As has been mentioned; the one indirect rollover per 12 month period rule only applies to like IRA -> like IRA and you should not do indirect rollovers from qualified plans because it will be subject to 20% withholding. The only restrictions ...
by Spirit Rider
Fri Jun 22, 2018 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: Can you change HSA contributions throughout year?
Replies: 2
Views: 244

Re: Can you change HSA contributions throughout year?

Unlike an FSA which requires a Qualifying Life Event (QLE) to change contribution amounts. The IRS allows, but does not require changes to HSA contributions at any time. I have heard of Sec. 125 plans that only allow HSA contribution changes once/quarter.The four employers I have worked for in the l...
by Spirit Rider
Fri Jun 22, 2018 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Hypothetical HSA spend down
Replies: 1
Views: 215

Re: Hypothetical HSA spend down

Is it true that in this case the $100k in tax free distribution is lost? (EDIT: The tax-free treatment is lost, not the $100k obviously) This is the plain language of Section 223 and IRS Publication 969. The IRS has not issued guidance either way. However, I have instructed my non-spouse beneficiar...
by Spirit Rider
Fri Jun 22, 2018 7:49 am
Forum: Personal Finance (Not Investing)
Topic: 529 plan change of beneficiary and ownership
Replies: 11
Views: 570

Re: 529 plan change of beneficiary and ownership

A change of beneficiary to a younger generation is considered a gift from the account owner to the new beneficiary in the year of the change. So if I'm the account owner and my child is the beneficiary and doesn't use all his 529 money, how would I transfer the remainder to his future child's 529 w...
by Spirit Rider
Thu Jun 21, 2018 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about RMD and insurance.
Replies: 11
Views: 943

Re: Questions about RMD and insurance.

There are a couple of interrelated issues regarding RMDs when you do retire after delaying them because you are still working. 1. RMDs are required for the year you separate even if it is the last business day of the year. 2. The RMD must be taken before any distributions including rollovers ocurr. ...
by Spirit Rider
Thu Jun 21, 2018 9:18 pm
Forum: Investing - Help with Personal Investments
Topic: RMD Question
Replies: 4
Views: 532

Re: RMD Question

Yes, but if the OP takes his first year RMD before 12/28/19, it will be taxable. The OP indicated an interest in making QCDs. Yes, there will be two of RMDs required in 2020 if the OP takes the 2019 RMD in 2020. However, if the OP takes the 2019 RMD as a QCD it will not be taxable. If the 2020 RMD i...
by Spirit Rider
Thu Jun 21, 2018 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: 529 plan change of beneficiary and ownership
Replies: 11
Views: 570

Re: 529 plan change of beneficiary and ownership

A change of beneficiary to a younger generation is considered a gift from the account owner to the new beneficiary in the year of the change.
by Spirit Rider
Thu Jun 21, 2018 7:19 pm
Forum: Investing - Help with Personal Investments
Topic: RMD Question
Replies: 4
Views: 532

Re: RMD Question

As you noted, RMDs commence for the year you turn 70 1/2 (2019), but you have until your Required Beginning Date (RBD) 4/1/2020 to make the RMD for that year. As you also noted, a Qualified Charitable Distribution (QCD) can not be made until you actually turn 70 1/2 (12/28/19). I don't see the probl...
by Spirit Rider
Wed Jun 20, 2018 11:22 pm
Forum: Investing - Help with Personal Investments
Topic: 529 plan - did I do something bad?
Replies: 6
Views: 968

Re: 529 plan - did I do something bad?

There is no gift-splitting required even in a non-community property state if the funds come from a joint account. You can contribute up to $30K and it will be deemed to come equally from the two spouses. Form 709 gift-splitting is only required if contributions come from an individual spouse's acco...
by Spirit Rider
Wed Jun 20, 2018 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Contributions - Clarifying Questions
Replies: 11
Views: 622

Re: HSA Contributions - Clarifying Questions

Pass-thru entities (sole proprietorship (QJV), partnership or S-Corp) can not provide income tax free employee benefits to owners. An LLC is not a tax entity. A default LLC is treated as a sole proprietor or partnership and an LLC that makes a sub chapter S election is treated as an S-Corp. There i...
by Spirit Rider
Wed Jun 20, 2018 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Withdrawal TIming
Replies: 15
Views: 2075

Re: 529 Withdrawal TIming

What stance have you taken and successfully won? Have you taken the distributions for QHEE expenses of another calendar year? Several years ago, my oldest girl's school required the first payment two weeks before the start of classes to hold your class selections. It just so happened, that required...
by Spirit Rider
Wed Jun 20, 2018 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: SEP v SIMPLE - Higher Employee Cost but Offset by Tax Savings?
Replies: 17
Views: 805

Re: SEP v SIMPLE - Higher Employee Cost but Offset by Tax Savings?

As pointed out by niceguy7376, you need to clarify your tax status. An LLC is a state chartered business entity. It is not a tax status. I am going to assume for sake of discussion that you are a default single member LLC treated as a disregarded entity by the IRS and taxed as a sole proprietorship....
by Spirit Rider
Wed Jun 20, 2018 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Contributions - Clarifying Questions
Replies: 11
Views: 622

Re: HSA Contributions - Clarifying Questions

Pass-thru entities (sole proprietorship (QJV), partnership or S-Corp) can not provide income tax free employee benefits to owners. An LLC is not a tax entity. A default LLC is treated as a sole proprietor or partnership and an LLC that makes a sub chapter S election is treated as an S-Corp. There is...
by Spirit Rider
Wed Jun 20, 2018 1:21 pm
Forum: Personal Consumer Issues
Topic: Storing Sustenance for Disasters
Replies: 28
Views: 1907

Re: Storing Sustenance for Disasters

There is a big difference between prepping for natural disasters (weeks) and the zombie apocalypse / nuclear winter. The former can easily be be accomplished with canned/dry goods with rotations within their normal shelf life. No real need to buy specialized "prepper" supplies, with maybe the except...
by Spirit Rider
Wed Jun 20, 2018 7:09 am
Forum: Personal Finance (Not Investing)
Topic: Missed RMD - IRS penalty waiver process?
Replies: 12
Views: 925

Re: Missed RMD - IRS penalty waiver process?

The IRS usually does not formally notify that a Form 5329 waiver is successfu or not. The notice you received is a result of the waiver not being granted. I too have never heard of one not being granted. As has been suggested, did you follow the Form 5329 instructions exactly? Just filling out the f...
by Spirit Rider
Tue Jun 19, 2018 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: Back-Door Roth and Rolling TIRA to 401(k) Sequencing
Replies: 5
Views: 382

Re: Back-Door Roth and Rolling TIRA to 401(k) Sequencing

It would not be the first time that a participant was told rollover contributions were permitted. Only to find out when attempting to do the actual rollover. That was not correct.
by Spirit Rider
Tue Jun 19, 2018 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: HSA working for a small company
Replies: 4
Views: 252

Re: HSA working for a small company

Very few employers allow employees to specify the destination of employer HSA contributions and employee HSA salary reductions. Niceguy7376's post describes the best course of action. The employee should use the employer's HSA custodian of choice for pre-tax/pre-FICA contributions and to receive the...
by Spirit Rider
Tue Jun 19, 2018 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Back-Door Roth and Rolling TIRA to 401(k) Sequencing
Replies: 5
Views: 382

Re: Back-Door Roth and Rolling TIRA to 401(k) Sequencing

You may even do the tIRA->Roth IRA transfer of post-tax tIRA contributions before rolling the pre-tax tIRA amount into the 401k, as long as the tIRA->401k rollover occurs prior to 31-Dec. However, since you can no longer recharacterize new Roth conversions. I would not do any Roth conversions befor...
by Spirit Rider
Mon Jun 18, 2018 6:49 pm
Forum: Investing - Theory, News & General
Topic: What companies followed Vanguard to no-load???
Replies: 13
Views: 985

Re: What companies followed Vanguard to no-load???

There were no-load funds before Vanguard and there are still many load funds today. Most mainstream fund families went mostly no-load 20-25 years ago.

Loads were not the primary Vanguard innovation, index funds were.
by Spirit Rider
Mon Jun 18, 2018 6:43 pm
Forum: Investing - Theory, News & General
Topic: New Fidelity Freedom Funds?
Replies: 11
Views: 1859

Re: New Fidelity Freedom Funds?

Fidelity does not make it easy to find the Freedom Index Funds. Under their Asset Allocation Tab - The Index version does not show up. Fidelity Target It never has shown up. When you do a search on the Fidelity site, they do show up. I check them from time to time, since I like the Fidelity glide p...
by Spirit Rider
Mon Jun 18, 2018 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: Can I do both backdoor Roth and mega backdoor Roth?
Replies: 4
Views: 413

Re: Can I do both backdoor Roth and mega backdoor Roth?

retiredjg wrote:
Mon Jun 18, 2018 5:36 pm
Yes you can. But you need to make sure that the earnings in the after tax account of your 40Xx go into the Roth IRA, not into tIRA. Anything going into tIRA has the potential of messing up or ordinary back door.
Potential yes, unless you roll them over by 12/31.
by Spirit Rider
Mon Jun 18, 2018 6:25 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA dividends
Replies: 1
Views: 291

Re: Roth IRA dividends

Dividends per se are not tracked in any tax-advantaged account be it IRA, 401k, etc... It also does not matter if it is a traditional or Roth type of account. There are only two categories of assets in tax-advantaged accounts; contributions and earnings. It doesn't matter whether the earnings come f...
by Spirit Rider
Mon Jun 18, 2018 10:41 am
Forum: Personal Finance (Not Investing)
Topic: maximzing HSA contributions when changing jobs
Replies: 8
Views: 538

Re: maximzing HSA contributions when changing jobs

This might be a dumb question - but please confirm that HSA contributions reduce FICA taxes regardless of whether the contribution is made via payroll (with-holdings) or made directly to the HSA account. In the latter, the tax savings would be provided when the tax return is filed. The HSA contribu...
by Spirit Rider
Mon Jun 18, 2018 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Kid's Online Access for Kid's Brokerage Accounts
Replies: 9
Views: 762

Re: Kid's Online Access for Kid's Brokerage Accounts

Regrettably, many UTMA account owners are lucky to get even a single accounting from their custodian. If the custodian is not living with the UTMA account owner. It is not uncommon for 1099 forms to be late or never show up. This is not uncommon in divorce when the non-custodial parent of the UTMA a...
by Spirit Rider
Mon Jun 18, 2018 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Why pay cash for a car?
Replies: 248
Views: 29306

Re: Why pay cash for a car?

I think that nowadays the dealer just doesn't care whether you pay cash or finance --- except that the finance person is another way to sow Fear, Uncertainty, and Doubt and try to up-sell you on other things. The dealerships most definitely care. Even if it is not manufacturer financing, dealer ini...
by Spirit Rider
Mon Jun 18, 2018 9:07 am
Forum: Investing - Help with Personal Investments
Topic: Kid's Online Access for Kid's Brokerage Accounts
Replies: 9
Views: 762

Re: Kid's Online Access for Kid's Brokerage Accounts

When they are 14 they are supposed to be able to see it when ever they wish . Nope. (e) A custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the minor's tax returns, and shall make them available for inspection...
by Spirit Rider
Sun Jun 17, 2018 10:56 pm
Forum: Personal Finance (Not Investing)
Topic: maximzing HSA contributions when changing jobs
Replies: 8
Views: 538

Re: maximzing HSA contributions when changing jobs

Why are we even talking about the last month rule. The OP has an HDHP/HSA through 6/30 and then plans on one 7/1 - 12/31. There is absolutely no need for the last month rule, he will be HSA eligible for the entire year. If they don't have an HDHP/HSA for the rest of the year, they are not eligible f...
by Spirit Rider
Sun Jun 17, 2018 8:53 pm
Forum: Investing - Theory, News & General
Topic: I-bonds look pretty bad right now
Replies: 59
Views: 6713

Re: I-bonds look pretty bad right now

So what is your alternative? Nominal Treasuries, real estate, stocks, private equity, gold, bitcoin, CDs, fallen angels, and Icelandic savings accounts are just a few of the alternatives available. With the exception of T-bills/CDs <= 1yr: none of those are cash equivalent, principal protected, inf...
by Spirit Rider
Sat Jun 16, 2018 10:49 am
Forum: Investing - Theory, News & General
Topic: Will rising inflation increase 401K and Roth contribution limits for 2019?
Replies: 8
Views: 886

Re: Will rising inflation increase 401K and Roth contribution limits for 2019?

The data will be available in September, and the IRS will announce the limits for 2019 in October. Yes....If I am doing the math right, the current calculation using CPI laid out in Internal Revenue Code section 219(b)(5)(C) yields a calculation of 5,900+, which I believe means the limit will go fr...
by Spirit Rider
Sat Jun 16, 2018 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth conditions
Replies: 8
Views: 773

Re: Mega Backdoor Roth conditions

1. Do I have to actually max out the after-tax contributions to the 401(k) before I can convert it to a mega backdoor Roth? The way I read it, it's either maxed out or I can't do it at all? No, you don't have to max out after-ax contribution. Just make sure your ALL 401k contributions (pre-tax 401k...
by Spirit Rider
Sat Jun 16, 2018 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Mega Backdoor Roth Question
Replies: 5
Views: 471

Re: Mega Backdoor Roth Question

You have to rollover both the after-tax contributions and any pre-tax earnings. You can either rollover both in a single check containing both after-tax and pre-tax amounts or one after-tax check and one pre-tax check. In either case the check containing after-tax assets should be directly rolled ov...
by Spirit Rider
Sat Jun 16, 2018 9:20 am
Forum: Investing - Theory, News & General
Topic: Will rising inflation increase 401K and Roth contribution limits for 2019?
Replies: 8
Views: 886

Re: Will rising inflation increase 401K and Roth contribution limits for 2019?

Based on projections using the just released May CPI. The 402g limit is barely above $19K. It is unlikely inflation will lower, so it is reasonable, but not certain it will increase to $19K. The catch-up isn't even close to $6500, so unless we become more like Venezuela it is unlikely to increase fr...
by Spirit Rider
Fri Jun 15, 2018 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth conditions
Replies: 8
Views: 773

Re: Mega Backdoor Roth conditions

1. Do I have to actually max out the after-tax contributions to the 401(k) before I can convert it to a mega backdoor Roth? The way I read it, it's either maxed out or I can't do it at all? No. You can contribute as little or as much as you want to the after-tax employee contribution account. I sup...
by Spirit Rider
Fri Jun 15, 2018 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: Self-employed -- employer contributions
Replies: 7
Views: 410

Re: Self-employed -- employer contributions

The calculated maximum employer contributions are 20% of net self-employment earnings (business profit (Form 1040 Line 12) - 1/2 SE tax (Form 1040 Line 27)). Business profit = business income - business expenses (Schedule C Line 31). The employer contribution is further limited to the lesser of the ...
by Spirit Rider
Fri Jun 15, 2018 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Rule of 55 is it official?
Replies: 50
Views: 9374

Re: Rule of 55 is it official?

I think it is important to keep in mind that there is really no "Rule of 55". It is an entirely made up term (like Backdoor Roth) You will not find such a term in the tax code or in any IRS regulation. It is simply one of the enumerated exceptions to the 10% early withdrawal penalty. Exceptions to T...
by Spirit Rider
Fri Jun 15, 2018 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: One IRA contribution was non-deductible, but no records
Replies: 14
Views: 1018

Re: One IRA contribution was non-deductible, but no records

Ok, so what is the necessary and sufficient condition that allows W-2 income to be deferred into a solo 401k? Is it that it be earned income? Or is it that it be self-employment income? It must be self-employment income. I have seen that the disability income is considered "earned" if it is before ...
by Spirit Rider
Fri Jun 15, 2018 10:44 am
Forum: Investing - Help with Personal Investments
Topic: One IRA contribution was non-deductible, but no records
Replies: 14
Views: 1018

Re: One IRA contribution was non-deductible, but no records

It is only about $17K, but I can put 6500 into a new Roth IRA and the rest into a solo 401k (which I would have to create). I won't have any earned income in any future years most likely. This W-2 compensation that would allow you to make a S6500 contribution and a $6500 spousal IRA contribution if...
by Spirit Rider
Thu Jun 14, 2018 11:10 pm
Forum: Investing - Help with Personal Investments
Topic: Where to roll over Roth 401k to
Replies: 8
Views: 606

Re: Where to roll over Roth 401k to

Although, the IRS web page I linked above does give me some pause as they make it sound like I can't just pull out the post-tax balance and rollover to a Roth IRA. Notice 2014-54 doesn’t change the requirement that each plan distribution must include a proportional share of the pretax and after-tax...
by Spirit Rider
Thu Jun 14, 2018 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: Where to roll over Roth 401k to
Replies: 8
Views: 606

Re: Where to roll over Roth 401k to

Traditional 401k account Employee 401k pre-tax: $16,500 Employee elective deferrals Employer match: $12,500 Employer match Special company contribution: $1,500 Could be PS contribution, QNEC or forfeitures Employee rollover: $20,000 Pre-tax rollover contributions from another 401k, 403b, 457b, trad...
by Spirit Rider
Thu Jun 14, 2018 7:06 pm
Forum: Personal Consumer Issues
Topic: cooling upstairs floor without central AC
Replies: 19
Views: 1261

Re: cooling upstairs floor without central AC

I think floor standing dehumidifiers might work.... it cools the air . Technically, they blow warm moist air across a cooled evaporator coil causing condensation. In fact this requires energy, so the net to the space is an increase in heat. However, when combined with air movement (floor or ceiling...
by Spirit Rider
Thu Jun 14, 2018 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Timeshare ever worth it? Please share details
Replies: 123
Views: 10078

Re: Timeshare ever worth it? Please share details

8foot7 wrote:
Thu Jun 14, 2018 8:23 am
Wow. I would assume in the US an heir could simply disclaim the inheritance of that property. Is that not possible in the UK?
An individual heir can disclaim property, an estate can not. Unless the estate is already insolvent. The liabilities of the timeshare will still burden the estate.
by Spirit Rider
Thu Jun 14, 2018 9:40 am
Forum: Investing - Help with Personal Investments
Topic: New employer 401k roth
Replies: 7
Views: 278

Re: New employer 401k roth

As has been pointed out, there are two classes and three types of employee contributions: Elective Pre-tax deferrals Post-tax designated Roth Voluntary After-tax There is a single employee elective contribution limit (2018 = $18.5K) across all (401k, 403b, SIMPLE and SARSEP IRA) plans at all employe...
by Spirit Rider
Wed Jun 13, 2018 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: recommendations for HELOC? does it matter to pick the cheapest rate?
Replies: 11
Views: 1053

Re: recommendations for HELOC? does it matter to pick the cheapest rate?

Make sure you are comparing Apples to Apples when comparing rates. This will be the current benchmark rate (Prime, LIBOR, etc...) + the margin. There maybe temporary rates for the first six months/1 year, that it not what matters unless you are planning to pay it off quickly. Also, be aware that the...
by Spirit Rider
Wed Jun 13, 2018 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Profit Sharing S-Corp % for Spouse and Self
Replies: 1
Views: 171

Re: Profit Sharing S-Corp % for Spouse and Self

S-corp solo 401k. I max out the 403b on day job, wife is a SAHM helping me out in the business. Would the employER contributions be? Wife: 8,615.00 - 6,470.15 = 2,144.85 x .25 = $536.25 Self: 9,000.00 x.25 = $2,250 Now, since the rules state I must give the same profit sharing amount percentage to ...
by Spirit Rider
Tue Jun 12, 2018 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: One IRA contribution was non-deductible, but no records
Replies: 14
Views: 1018

Re: One IRA contribution was non-deductible, but no records

1. Re a possible 8606 from 1987, I have read that IRS does not keep tax returns from that far back, but what I don't know is if they carry forward each tax payer's 8606 non deductible IRA basis from each year to the next. Yup, forgot six years only. 2. I still don't know for sure if the Rollover IR...
by Spirit Rider
Tue Jun 12, 2018 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: [Looking for ways to reduce taxes and keep more of my income]
Replies: 91
Views: 8640

Re: Getting killed on taxes - any ideas?

My question is - any advice on how to minimize our current tax burden? If we are able to earn some side income, at what point does it make sense to open a solo 401k or something similar? If I made $10K a year doing that, am I able to put all of that away pre-tax? Not if you are the one making the $...
by Spirit Rider
Tue Jun 12, 2018 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Mega backdoor Roth & self directed solo 401k
Replies: 27
Views: 1606

Re: Mega backdoor Roth & self directed solo 401k

I'm confused. I thought an SE is prevented from using all of his SE compensation as an employee elective deferral (even if other funds were available to do so), because the max contribution is reduced by half of SE tax. Form 1040 Line 12 is the business profit (loss) from Schedule C. It is not comp...
by Spirit Rider
Tue Jun 12, 2018 7:55 am
Forum: Personal Finance (Not Investing)
Topic: Recommendation for High Deductible Health Care Plan - Ages 61/56
Replies: 17
Views: 1218

Re: Recommendation for High Deductible Health Care Plan - Ages 61/56

They are wrong about #3. You can buy full one year plans that must meet the ACA minimal essential requirements off the marketplace. The majority of these plans are in fact, no different than the plans available on the marketplace. In order to receive a subsidy, you must use the marketplace or state ...
by Spirit Rider
Tue Jun 12, 2018 1:05 am
Forum: Personal Finance (Not Investing)
Topic: Mega backdoor Roth & self directed solo 401k
Replies: 27
Views: 1606

Re: Mega backdoor Roth & self directed solo 401k

The term after-tax is referring to compensation. A self-employed individual does not need to use compensation to pay either SE taxes or income taxes. They can use other money to pay for those. This allows a self-employed individual to use 100% of compensation for employee elective contributions and/...