Search found 6846 matches

by Spirit Rider
Tue Jan 23, 2018 1:56 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401 K Maximum For Sole Proprietor
Replies: 8
Views: 414

Re: Solo 401 K Maximum For Sole Proprietor

There is a special rule. The 403b plan is considered controlled by the participant for annual addition purposes. The $55K 2018 annual addition limit is for each unaffiliated employer. If you have a 403b and a one-participant 401k, they are considered affiliated employers. This means there is just on...
by Spirit Rider
Tue Jan 23, 2018 1:39 am
Forum: Investing - Help with Personal Investments
Topic: IRA Rollover 1 per year rule
Replies: 19
Views: 1609

Re: IRA Rollover 1 per year rule

The source custodian is always in control. Vanguard can represent your interests and suggest proper steps.

However, ultimately the source custodian has the funds and responsibility for the correct process and reporting/non-reporting. Vanguard's only true responsibility is receiving the assets.
by Spirit Rider
Tue Jan 23, 2018 1:29 am
Forum: Investing - Help with Personal Investments
Topic: simple IRA at vanguard - rollover to an Rollover IRA account?
Replies: 4
Views: 192

Re: simple IRA at vanguard - rollover to an Rollover IRA account?

How long have you had this SIMPLE IRA? You can only rollover a SIMPLE IRA to other retirement accounts other than another SIMPLE IRA two years after the first contribution. If the SIMPLE IRA was from a W-2 employer and not from self-employment. It along with assets in the 401a would receive better f...
by Spirit Rider
Tue Jan 23, 2018 1:17 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401 K Maximum For Sole Proprietor
Replies: 8
Views: 414

Re: Solo 401 K Maximum For Sole Proprietor

You got it exactly, billy269. If you contributed 80% of $15,000 = $12,000 to the one-participant 401k. Your maximum employer contribution would be limited to ($15,000 - $12,000) / 2 = $1,500 instead of $3,000. Your maximum total contributions would be $12,000 + $1,500 + $6,500 = $20,000. Instead of ...
by Spirit Rider
Mon Jan 22, 2018 11:11 pm
Forum: Investing - Help with Personal Investments
Topic: Another Deferred Compensation Question
Replies: 2
Views: 240

Re: Another Deferred Compensation Question

Specifically, it will be reported on your W-2 Box 1 Wages, but also Box 11 Nonqualified plans.

Your net compensation available for retirement plan contributions = Box 1 - Box 11 = 0.
by Spirit Rider
Mon Jan 22, 2018 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: New HSA for Orthodontic Care in Progress under installment
Replies: 3
Views: 146

Re: New HSA for Orthodontic Care in Progress under installment

magiteck wrote:
Mon Jan 22, 2018 10:55 pm
Thank you! If the services were referred by a dentist, would that meet the definition? Or does it require more than that?
Yes, I realized my "certified" was too stringent a statement. A revised it to "verified" as a referral or recommendation by her dentist would suffice.
by Spirit Rider
Mon Jan 22, 2018 10:50 pm
Forum: Personal Finance (Not Investing)
Topic: New HSA for Orthodontic Care in Progress under installment
Replies: 3
Views: 146

Re: New HSA for Orthodontic Care in Progress under installment

There are two issues. To be considered qualified medical expenses, orthodontic services must be for the "prevention and alleviation of dental disease". This need must be verified by a dentist or the orthodontic services provided by a dentist. Such services initiate purely by the opinion of an orthod...
by Spirit Rider
Mon Jan 22, 2018 9:51 pm
Forum: Personal Finance (Not Investing)
Topic: After Tax 401K, 401a Limits
Replies: 11
Views: 788

Re: After Tax 401K, 401a Limits

Poltergiest: You did not answer my question of the inclusion of 401a in the title.

Are plans #1 and #2 both 401k plans or is one of them a 401a plan?

It is very important.
by Spirit Rider
Mon Jan 22, 2018 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401 K Maximum For Sole Proprietor
Replies: 8
Views: 414

Re: Solo 401 K Maximum For Sole Proprietor

Note: The OP needs to be aware of some current and future potential problems given your fact pattern: Your net self-employment earnings = business profit - 1/2 SE tax. If your if your primary W-2 Box 1 + (business profit * 0.9235) >= SS max wage base*. Almost all online calculators will calculate yo...
by Spirit Rider
Mon Jan 22, 2018 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Rollover 1 per year rule
Replies: 19
Views: 1609

Re: IRA Rollover 1 per year rule

These look to be the same categories (but not correct codes) for Form 1099-R Box 7. This is a big red flag to me. None of these options should apply because a direct tIRA trustee -> tIRA trustee transfer is not reportable and no 1099-R should be generated. I would not make any such entry and verify ...
by Spirit Rider
Mon Jan 22, 2018 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: After Tax 401K, 401a Limits
Replies: 11
Views: 788

Re: After Tax 401K, 401a Limits

Are you sure about item 2? From the IRS website, emphasis mine - Remember that annual contributions to all of your accounts - this includes elective deferrals, employee contributions, employer matching and discretionary contributions and allocations of forfeitures to your accounts - may not exceed ...
by Spirit Rider
Sun Jan 21, 2018 11:38 pm
Forum: Personal Finance (Not Investing)
Topic: Can I open additional HSA account apart from employer HSA?
Replies: 2
Views: 317

Re: Can I open additional HSA account apart from employer HSA?

Yes you can open any number of HSA accounts you want.

You can transfer from an employer plan to a previous employer plan or any other plan you have. However, most plans charge a fee (typically $25) for each trustee -> trustee transfer.

You can do one no cost indirect rollover every one year period.
by Spirit Rider
Sun Jan 21, 2018 11:29 pm
Forum: Investing - Help with Personal Investments
Topic: FBKWX from Fidelity vs VICSX and VFICS
Replies: 4
Views: 327

Re: FBKWX from Fidelity vs vanguard index bond funds

You don't need to look any further than this. FBKWX 0.36% Fidelity Advisor ® Total Bond Fund - Class Z Management Fee 0.31% A fee paid to an investment manager or advisor for its management services. A mutual fund's management fee will be included in the total annual operating expenses and disclosed...
by Spirit Rider
Sun Jan 21, 2018 10:48 pm
Forum: Investing - Theory, News & General
Topic: Which brokerage for individual 401k?
Replies: 18
Views: 742

Re: Which brokerage for individual 401k?

I don't know why this isn't more well known. There have been dozens of posts over that last few years. You do not need to mail a contribution to Fidelity. There is a relatively easy work around for contributions to Fidelity's Self-Employed 401k: Open a Cash Management Account CMA When you want to ma...
by Spirit Rider
Sun Jan 21, 2018 11:40 am
Forum: Investing - Help with Personal Investments
Topic: HSA
Replies: 16
Views: 1301

Re: HSA

You don't need to keep the receipts to invest it. Some of us plan to invest for future health care costs, including Medicare premiums and Long Term Care insurance, which are eligible in retirement. That is in fact what I am doing. I only meant to parody those who are delaying reimbursement from an ...
by Spirit Rider
Sat Jan 20, 2018 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: HSA
Replies: 16
Views: 1301

Re: HSA

aristotelian: Is basically correct with one caveat . When you have qualified medical expenses, you have have already netted the pre-tax/pre-FICA to tax-free gain. The simplest to see is if your next investment priority is a Roth contributions. If you take the HSA withdrawal to fund the Roth IRA you ...
by Spirit Rider
Sat Jan 20, 2018 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Discussing a 529 with your kids
Replies: 73
Views: 4323

Re: Discussing a 529 with your kids

Prior to discussing cost I will be discussing with my children the importance of choosing a marketable career path. If my kids choose a useless degree path I won't even tell them they have a 529!! :happy The kids know to get a job in a field that will pay good money. A degree in math / science with...
by Spirit Rider
Sat Jan 20, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Job offer - no 401k offered
Replies: 30
Views: 3154

Re: Job offer - no 401k offered

What did people do before defined contribution tax qualified plans were available? They saved and invested. We now have access to tax efficient index/managed funds and reduced capital gain rates. Has it ever been better than now to save and invest :?: Hmm, what did people do before 401k? Yeah, what...
by Spirit Rider
Sat Jan 20, 2018 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Age limit for TIRA contribution and Roth Conversion
Replies: 3
Views: 216

Re: Age limit for TIRA contribution and Roth Conversion

You can not make traditional IRA contributions for or after the taxable year you turn 70 1/2. Individual Retirement Arrangements (IRA) are just that. It makes very little sense to make non-deductible traditional IRA contributions and do a Roth Conversion with a large pre-tax balance. If you are stil...
by Spirit Rider
Sat Jan 20, 2018 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity in SIMPLE IRA
Replies: 13
Views: 563

Re: Annuity in SIMPLE IRA

However, the FI is allowed to charge “a reasonable annual administration fee” for the transfers. Posters have not reported being charged but . . . This is a misinterpretation of IRS Notice 98-4 Q&A J-4. A DFI may charge “a reasonable annual administration fee” for all participants including those w...
by Spirit Rider
Sat Jan 20, 2018 1:08 am
Forum: Personal Finance (Not Investing)
Topic: After Tax 401K, 401a Limits
Replies: 11
Views: 788

Re: After Tax 401K, 401a Limits

What does your inclusion of 401k and 401a in the title mean. Are the two plans both 401k plans or a 401k and a 401a plan? 401a pre-tax contributions are considered mandatory contributions and are not included in the employee deferral limit. There is a separate annual addition limit (2018 = $55K) fo...
by Spirit Rider
Fri Jan 19, 2018 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: Individual 529 vs Custodial (UTMA/UGMA) 529
Replies: 27
Views: 1153

Re: Individual 529 vs Custodial (UTMA/UGMA) 529

While a custodian of a UTMA 529 account can never change the beneficiary or rollover assets to a new beneficiary's account. The owner of a custodial account has full control over their account after the age of and custodial termination. They can do anything a parental or third party can with an acco...
by Spirit Rider
Fri Jan 19, 2018 8:22 pm
Forum: Investing - Help with Personal Investments
Topic: Annual transfer from high-fee Simple IRA to Vanguard Traditional IRA?
Replies: 6
Views: 306

Re: Annual transfer from high-fee Simple IRA to Vanguard Traditional IRA?

Only if it is >= 2 years since the date of the first SIMPLE IRA contribution.
by Spirit Rider
Fri Jan 19, 2018 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity in SIMPLE IRA
Replies: 13
Views: 563

Re: Annuity in SIMPLE IRA

If they did not provide proper notice that this was 5305-SIMPLE and you could elect to make no cost transfers to another retirement plan. This would be grounds for insisting they allow you to elect this provision even though the election period has lapsed.
by Spirit Rider
Fri Jan 19, 2018 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: HSA contribution when turning 65
Replies: 3
Views: 321

Re: HSA contribution when turning 65

That is because you had eligibility for the entire year. Eligibility is based on what qualifying HDHP plan you have on the 1st of each month. In the simple case maximum contribution = maximum yearly contribution * months of eligibility / 12. Contributions can occur at any time, but must reflect the ...
by Spirit Rider
Fri Jan 19, 2018 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth strategy - your thoughts
Replies: 15
Views: 1625

Re: Backdoor Roth strategy - your thoughts

It is that simple to adopt a one-participant 401k. All that is necessary is earned income as a self-employed individual engaged in a trade or business with the intent to make a profit in the current or any prior year. Consulting income would definitely apply. There is no requirement for annual contr...
by Spirit Rider
Fri Jan 19, 2018 7:23 pm
Forum: Investing - Help with Personal Investments
Topic: Annual transfer from high-fee Simple IRA to Vanguard Traditional IRA?
Replies: 6
Views: 306

Re: Annual transfer from high-fee Simple IRA to Vanguard Traditional IRA?

Yes, at a minimum. You probably would want to do a rollover now. Then at worst elect the no cost/no fee transfers for next year.

Obviously, the no cost account and no fee transfer is the best option even now if it is available.
by Spirit Rider
Fri Jan 19, 2018 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA with basis Form 8606 TaxAct
Replies: 5
Views: 384

Re: Inherited IRA with basis Form 8606 TaxAct

The problem is that if you have basis in an inherited traditional IRA. The instructions require the writing of "Inherited IRA" on the top of the separate Form 8606 for the inherited IRA. I do not know for sure, but it is very likely that there is no provision in the e-filing data package specificati...
by Spirit Rider
Fri Jan 19, 2018 10:03 am
Forum: Personal Consumer Issues
Topic: Anyone have a whole house water filter?
Replies: 13
Views: 713

Re: Anyone have a whole house water filter?

Most mortgage lenders require well water to be tested prior to any sale. You probably should have done it even if not required. Check for any report in your closing paperwork. It is generally a good idea to test for bacteria and nitrates every year. Then have more comprehensive tests done every five...
by Spirit Rider
Thu Jan 18, 2018 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: Does my rollover IRA count for pro-rata calculations?
Replies: 13
Views: 489

Re: Does my rollover IRA count for pro-rata calculations?

Also, rolling it back to an IRA would interfere with a Backdoor Roth again.

Another option is to generate some self-employment income and adopt a one-participant 401k (not Vanguard) and rollover the IRA assets there.
by Spirit Rider
Thu Jan 18, 2018 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: Which tax year does a Roth conversion fall under?
Replies: 6
Views: 426

Re: Which tax year does a Roth conversion fall under?

Conversions are always taxed in the year the conversion actually happens. The extension until the next tax filing deadline is only for the contribution. They are separate and independent actions.
by Spirit Rider
Thu Jan 18, 2018 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Does my rollover IRA count for pro-rata calculations?
Replies: 13
Views: 489

Re: Does my rollover IRA count for pro-rata calculations?

Yes. All traditional IRAs are combined for this purpose. Make that all pre-tax balances in all traditional, SEP and SIMPLE IRAs. Why only pre-tax balances? What there were basis in other TIRAs? I was referring to the pre-tax balances because there generally are no non-deductible basis in SEP and SI...
by Spirit Rider
Thu Jan 18, 2018 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: Annual transfer from high-fee Simple IRA to Vanguard Traditional IRA?
Replies: 6
Views: 306

Re: Annual transfer from high-fee Simple IRA to Vanguard Traditional IRA?

There are some provisions of SIMPLE IRA accounts that you should be aware of. First, you can not rollover SIMPLE IRA assets to any other accounts other than another SIMPLE IRA for two years after the date of the first contribution. The withdrawal would not eligible for rollover and any amount in exc...
by Spirit Rider
Thu Jan 18, 2018 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Does my rollover IRA count for pro-rata calculations?
Replies: 13
Views: 489

Re: Does my rollover IRA count for pro-rata calculations?

TomatoTomahto wrote:
Thu Jan 18, 2018 6:55 pm
Yes. All traditional IRAs are combined for this purpose.
Make that all pre-tax balances in all traditional, SEP and SIMPLE IRAs.
by Spirit Rider
Thu Jan 18, 2018 7:11 pm
Forum: Personal Consumer Issues
Topic: Premium gas at BJ's for Mercedes
Replies: 42
Views: 2019

Re: Premium gas at BJ's for Mercedes

I’ll say for one thing this makes me never want to buy a Mercedes. I like cars that can use gas from every station. Seems to me they would be the better engineered engines.. This is not an issue unique to Mercedes. Many automobile manufactures now advise the use top tier gasoline. In fact this can ...
by Spirit Rider
Thu Jan 18, 2018 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Individual 529 vs Custodial (UTMA/UGMA) 529
Replies: 27
Views: 1153

Re: Individual 529 vs Custodial (UTMA/UGMA) 529

A UTMA 529 is clearly considered a parental asset for FAFSA purposes. I do not remember where it was reported on the Profile. Your description indicates it should be listed as a student asset. Regardless, in no case is it not reported on one or the other. So your basic idea of getting more aid is no...
by Spirit Rider
Thu Jan 18, 2018 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k options
Replies: 7
Views: 395

Re: Solo 401k options

Vanguard has two additional disadvantages: You can not purchase Admiral Share class funds in Vanguard's Individual 401k. This adds about 0.10% to the index fund expense ratios. Vanguard's Individual 401k does not allow employee eligibility restrictions. The IRS and the other one-participant 401k pla...
by Spirit Rider
Thu Jan 18, 2018 3:27 pm
Forum: Personal Consumer Issues
Topic: Premium gas at BJ's for Mercedes
Replies: 42
Views: 2019

Re: Premium gas at BJ's for Mercedes

Yes, all the gas is the same in the sense it all comes from the same refinery and is delivered by the same tanker ship. The discount stores just buy it after it's been sitting in the distributor's tanks longer . How much longer I don't know. I'm just telling you what she said. She's their in-house ...
by Spirit Rider
Thu Jan 18, 2018 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA and 401k (w2 and 1099) questions
Replies: 3
Views: 264

Re: SEP IRA and 401k (w2 and 1099) questions

Both 10509835 and krow36 are correct. You can only contribute 20% of your net self-employment earnings to a SEP IRA. Your net self-employment earnings = business profit - 1/2 SE tax. Business profit = 1099 income - legitimate business expenses. If you manually file your returns. Complete Schedule C ...
by Spirit Rider
Thu Jan 18, 2018 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Individual 529 vs Custodial (UTMA/UGMA) 529
Replies: 27
Views: 1153

Re: Individual 529 vs Custodial (UTMA/UGMA) 529

You learned this from who? and on what financial aid forms? A UTMA 529 is also most definitely considered a parental asset for FSFSA purposes. I can't say for sure, but I have never run into a school even ones using the CSS profile treating a UTMA 529 as a student asset. I wonder is someone isn't co...
by Spirit Rider
Thu Jan 18, 2018 2:35 pm
Forum: Personal Consumer Issues
Topic: Premium gas at BJ's for Mercedes
Replies: 42
Views: 2019

Re: Premium gas at BJ's for Mercedes

She said, for what it's worth, that the discount chains buy gas from them after it has been sitting in their holding tanks for a while. The longer it sits in those holding tanks before being transferred to a tanker truck for delivery, the more condensation occurs. That's why the distributor sells i...
by Spirit Rider
Thu Jan 18, 2018 9:53 am
Forum: Personal Consumer Issues
Topic: Premium gas at BJ's for Mercedes
Replies: 42
Views: 2019

Re: Premium gas at BJ's for Mercedes

I seriously doubt that BJ's has higher percentages of water unless there has been specific problems at that specific BJ's. Sounds more like FUD to me. However, it is likely that Mercedes recommends the use of top tier gasoline. Top tier gasoline has better detergent and additive packages. Engine tea...
by Spirit Rider
Wed Jan 17, 2018 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401k options
Replies: 7
Views: 395

Re: Solo 401k options

It is relatively easy to amend a one-participant 401k plan to a new provider and then transfer the assets. Like most things with these plans it is a little more involved than an IRA trustee -> trustee transfer. However, it is not that difficult and I'm sure your providers will walk you through it.
by Spirit Rider
Tue Jan 16, 2018 11:37 am
Forum: Investing - Help with Personal Investments
Topic: 529 AND UTMA
Replies: 29
Views: 1432

Re: 529 AND UTMA

I realize it is water under the bridge, but the purpose of this forum is to inform others as well. Not to quibble, but the valid UTMA distribution determination is not essential vs non-essential, but rather parental support obligation or not. While braces may be somewhat optional, but they are not j...
by Spirit Rider
Tue Jan 16, 2018 11:19 am
Forum: Investing - Help with Personal Investments
Topic: tIRA contribution sources
Replies: 2
Views: 232

Re: tIRA contribution sources

First, to make an IRA contribution you must have compensation. Typically, this is Form W-2 box 1 Wages, less Box 11 non-qualified plans and/or self-employment income. However, foreign compensation in excess of the foreign earned income/housing exclusions does apply. The traditional IRA deduction in...
by Spirit Rider
Mon Jan 15, 2018 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: 529 AND UTMA
Replies: 29
Views: 1432

Re: 529 AND UTMA

For UTMA, the first $2100 in income for 2018 is tax free. Maybe I can gift stock to the UTMA account and harvest gains to pay for non-essential child expenses. Seems more flexible than a 529 account which i can only use for school. With the new tax laws, the $2100 number could be higher. It is stil...
by Spirit Rider
Mon Jan 15, 2018 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Stats on When People Take Social Security
Replies: 170
Views: 11173

Re: Stats on When People Take Social Security

Unfortunately, I have seen many people take SS at 62 just because they could. Many of them were still working and taking SS early allowed them to live even further beyond their means. Don't even get me started on one friend with < $100K in his 401k, took an in-service withdrawal as soon as he turned...
by Spirit Rider
Mon Jan 15, 2018 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: $10K as a sole proprietor; how to invest?
Replies: 12
Views: 1092

Re: $10K as a sole proprietor; how to invest?

I have used TaxAct for many years, but couldn't tell you exactly without it in front of me. You will complete the income section including self-employment income. TaxAct will enter the necessary information in Schedules C and SE to calculate the maximum contribution. I think that will probably be u...
by Spirit Rider
Mon Jan 15, 2018 12:42 am
Forum: Personal Finance (Not Investing)
Topic: Very Small Companies and HCE Tests
Replies: 3
Views: 344

Re: Very Small Companies and HCE Tests

If all employees are > 5% owners or their spouses. As ERISA Stone pointed out there is no need to use a safe harbor 401k. You can simply open a "one-participant" 401k plan. The marketing terms (solo 401k, individual 401k, etc...) for these plans are also a misnomer. They are not just for a single pa...
by Spirit Rider
Sun Jan 14, 2018 1:18 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)-Contributing ALL net income?
Replies: 11
Views: 986

Re: Solo 401(k)-Contributing ALL net income?

If your employee deferral is pre-tax, then the amount not deferred is unlikely to trigger withholding. However, if the employee deferral is Roth then your entire compensation is taxable. Depending on the amount of the deferral, there quite likely to be withholding required. Also, state/local income ...