Search found 26 matches

by VAinvestor001
Mon Jan 15, 2018 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Distribution or W2 from single owner S-Corp
Replies: 22
Views: 1306

Re: Distribution or W2 from single owner S-Corp

Thanks for all the info. Deadline to set up solo 401K is Dec 31 so that ship has sailed for 2017.. i can still do Sep IRA...
by VAinvestor001
Sat Jan 13, 2018 10:37 pm
Forum: Personal Finance (Not Investing)
Topic: Distribution or W2 from single owner S-Corp
Replies: 22
Views: 1306

Re: Distribution or W2 from single owner S-Corp

yes all part time working less than 1000 hrs on W2
nolesrule wrote:
Sat Jan 13, 2018 10:34 pm
There are issues setting up a solo 401k if you have employees. Are these part-time employees W-2? Do they work less than 1000 hours/year?
by VAinvestor001
Sat Jan 13, 2018 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: Distribution or W2 from single owner S-Corp
Replies: 22
Views: 1306

Re: Distribution or W2 from single owner S-Corp

Yes tax deferral is best option as I don't anticipate higher earnings more than 5-6 years into future... You're assuming the OP wants to put his business plan retirement money into Roth and not tax-deferred. If he wants tax-deferred, he's better off with the Solo 401k for the reasons outlined by Duc...
by VAinvestor001
Sat Jan 13, 2018 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Distribution or W2 from single owner S-Corp
Replies: 22
Views: 1306

Re: Distribution or W2 from single owner S-Corp

Thanks for the summary.. and get your point on LLC and sole proprietorship... So to summarize, it sounds to me like you would want to dissolve your s-corp and run the $100k business income as sole proprietorship. You could set it up as an LLC to try to limit some liability and separate the business....
by VAinvestor001
Sat Jan 13, 2018 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Distribution or W2 from single owner S-Corp
Replies: 22
Views: 1306

Re: Distribution or W2 from single owner S-Corp

Thanks Jamesla i am afraid of sole prop because of liability concerns. Can i put business in LLC and have tax treatment of a sole proprietorship? Sorry if this sounds weird but talking to CPAs have fried my brain here. Thanks for the note on 385K, i will make sure to take as less as possible in W2 f...
by VAinvestor001
Sat Jan 13, 2018 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Distribution or W2 from single owner S-Corp
Replies: 22
Views: 1306

Re: Distribution or W2 from single owner S-Corp

I had never heard of this, but if true, this is probably the best advice. DSInvestor -- so if he maxes out social security limit at his other job, would he only be responsible for the 2.9% on his full $100k of business income? I would also add that the social security limit for 2018 will be $128,40...
by VAinvestor001
Sat Jan 13, 2018 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Distribution or W2 from single owner S-Corp
Replies: 22
Views: 1306

Re: Distribution or W2 from single owner S-Corp

In this respect, sole proprietor filing schedules S and SE is advantageous. Schedule SE considers your other W-2s and if you've maxed out social security at your other job, you don't have to pay the social security portion of the self employment tax. I would also recommend that you talk to a tax sp...
by VAinvestor001
Sat Jan 13, 2018 8:35 pm
Forum: Personal Finance (Not Investing)
Topic: Distribution or W2 from single owner S-Corp
Replies: 22
Views: 1306

Re: Distribution or W2 from single owner S-Corp

Regarding how much to take as W2 vs. distribution. That is not a question about tax efficiency but it is a question about what's legal and what will get you audited... Thanks for the note... I talked to a CPA and my contribution is way above his recommendation. I put less time in the business and c...
by VAinvestor001
Sat Jan 13, 2018 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: Distribution or W2 from single owner S-Corp
Replies: 22
Views: 1306

Re: Distribution or W2 from single owner S-Corp

Thanks for all the replies, really appreciate the wisdom of this board.

I will spend time absorbing all the answers and post again in a day or so.

Thanks again!
by VAinvestor001
Fri Jan 12, 2018 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Distribution or W2 from single owner S-Corp
Replies: 22
Views: 1306

Distribution or W2 from single owner S-Corp

Situation Me and my wife both have W2 jobs and max 401k, as well as backdoor Roths (combined W2 salary from jobs ~210K, my W2 is >120K for SSN purposes) Have a personal business that I am 100% owner, registered as S-Corp, generates about 100K of cash flow I can pay myself a large amount W2 and pay ...
by VAinvestor001
Tue Sep 27, 2016 10:09 pm
Forum: Personal Investments
Topic: How to put 53K in tax advantaged account
Replies: 10
Views: 2057

Re: How to put 53K in tax advantaged account

Thank you for the feedback, I am under 40 yrs and company match is close to 7K for my 18K... so i end up with about 25K...

i would love to save 53K pre-tax is possible... if it matters i have a small business too, should i look into opening a SEP-IRA and park some money there?

V.
by VAinvestor001
Mon Sep 26, 2016 9:14 am
Forum: Personal Investments
Topic: How to put 53K in tax advantaged account
Replies: 10
Views: 2057

How to put 53K in tax advantaged account

Hi

I work at a Fortune 500 employer that has a good 401k plan. However i can contribute only 18K to that account. My employer matches part of it but it is no where close to 53K total. Any suggestions on how can i take advantage of full 53K tax advantaged space?

V.
by VAinvestor001
Thu Jun 02, 2016 11:00 pm
Forum: Investing - Theory, News & General
Topic: Protecting wealth in automation world
Replies: 12
Views: 2301

Protecting wealth in automation world

hi Given the increase in automation how does one preserve wealth? e.g. consider a scenario where machines have replaced half of fast food industry jobs (this is very real so will just focus on this for now). This puts lot more people on unemployment, which impacts stock market, real estate etc.. How...
by VAinvestor001
Thu Apr 28, 2016 5:38 pm
Forum: Investing - Theory, News & General
Topic: Selling in May and Walking Away?
Replies: 106
Views: 13522

Re: Selling in May and Walking Away?

That is interesting!

Do you have a similar chart(s) for some different sector funds, like healthcare, tech, consumer staples?

Thanks
by VAinvestor001
Thu Mar 10, 2016 1:33 pm
Forum: Investing - Theory, News & General
Topic: Passive Indexing: What could go wrong?
Replies: 25
Views: 4261

Re: Passive Indexing: What could go wrong?

Will search the forums thanks... can a moderator please close this thread
by VAinvestor001
Thu Mar 10, 2016 1:20 pm
Forum: Investing - Theory, News & General
Topic: Passive Indexing: What could go wrong?
Replies: 25
Views: 4261

Passive Indexing: What could go wrong?

One thing that is bothering me is that a lot of people, their friends, their neighbors are talking about how indexing (passive) is the best thing since the sliced bread! It is great as long as markets are efficient but what happens when indexing becomes a majority.. to consider an extreme case no on...
by VAinvestor001
Fri Feb 05, 2016 12:00 pm
Forum: Personal Investments
Topic: Tilting towards oil
Replies: 18
Views: 2094

Re: Tilting towards oil

I did and got in VDE at ~$75, though only a small part of portfolio ~2%... don't know what i am achieving by this... but had to feed my urge a bit... 98% still on plan :-) I posted same question about 6 months or so back... but glad I did not follow my gut... discussion on the forum was very helpful...
by VAinvestor001
Tue Aug 25, 2015 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Zero Percent for 60 months or $2000 Cash Back
Replies: 12
Views: 2706

Re: Zero Percent for 60 months or $2000 Cash Back

If I offer you a CD of ~6.6% for 5 years, will you take it? if yes take the cash bonus...

you can always refinance at a much lower price... also you can prepay sooner w/o feeling bad on missing out on 0%
by VAinvestor001
Thu Jul 09, 2015 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage - 30 year or 15 year?
Replies: 56
Views: 19191

Re: Mortgage - 30 year or 15 year?

Why not go with Penfed 15/15 ARM. It is at 3.25% rate and amortizes over 30 years. It gives you best of both worlds... 30 year amortization if you desire so and 15 year rate.. you can continue making 15 year amortization payments... ofcourse there is a risk of rate resetting higher after 15 years if...
by VAinvestor001
Tue Jul 07, 2015 9:46 pm
Forum: Personal Investments
Topic: Best way to invest in OIL
Replies: 66
Views: 18381

Re: Best way to invest in OIL

Thanks for the excellent suggestions and debate. I will go with RDS, BP and XOM... Thanks "sometimeinvestor" for posting on the timing debate... this is exactly what was in my mind... value investing... i see value at this price point and hence I am putting money in this sector... and will continue ...
by VAinvestor001
Tue Jul 07, 2015 3:58 pm
Forum: Personal Investments
Topic: Best way to invest in OIL
Replies: 66
Views: 18381

Re: Best way to invest in OIL

If you must, then Vanguard Energy is how I would do it. Is this just some play money you're wanting to use or is retirement money? - Tim This is long term retirement, i don't need this for next 20-30 years... I was thinking maybe putting ~20-40K in energy... I have been called out for timing in ear...
by VAinvestor001
Tue Jul 07, 2015 1:31 pm
Forum: Personal Investments
Topic: Best way to invest in OIL
Replies: 66
Views: 18381

Re: Best way to invest in OIL

By the way, "I am not trying to time the market" and "but the price seems right to invest" are inherently contradictory statements. You are, in fact, trying to time the market. The reason I said that I am not trying to time the market because I am not really looking for a bottom. I feel OIL at thes...
by VAinvestor001
Tue Jul 07, 2015 11:12 am
Forum: Personal Investments
Topic: Best way to invest in OIL
Replies: 66
Views: 18381

Best way to invest in OIL

Hi I am looking forward to invest in OIL and wanted to see if group has any good suggestions on how to do it. I have vanguard, fidelity, etrade etc. accounts and can buy from them. I am not for futures or options and would rather buy stocks/indexes (i might be wrong here). I am not trying to time th...
by VAinvestor001
Thu May 14, 2015 9:19 am
Forum: Personal Investments
Topic: VA Municipal Bonds
Replies: 10
Views: 3008

Re: VA Municipal Bonds

Thanks, I will look into the tax exempt. Quick glance shows that it has very little volatility... that is nice in case bond market continues to do what it has been doing for past few weeks
by VAinvestor001
Wed May 13, 2015 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Reduce mortgage or invest cash?
Replies: 4
Views: 724

Re: Reduce mortgage or invest cash?

I would pay off Benefit 1. 230K gets invested at current mortgage rate - any tax benefit 2. 417K gets invested at mortgage rate difference (~1.2%-1.4%) - any tax benefit Net ROI on your 230K will be ~ ~4.38% + 417/230 (1.2%) - tax benefit = ~6.5%- tax benefit Costs 1. Loosing out on other investment...
by VAinvestor001
Wed May 13, 2015 9:15 am
Forum: Personal Investments
Topic: VA Municipal Bonds
Replies: 10
Views: 3008

VA Municipal Bonds

Hi- I have been researching to invest ~50K in VA (Virginia) municipal bonds. This is my small biz money and I want it to be relative safe but at the same time want to get some return (hopefully more than 0.75% that a savings account will). Moreover - VA bonds might help at the tax time too. My conce...