Search found 387 matches

by financial.freedom
Thu Mar 21, 2019 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: How to undo 401k 2018 contributions?
Replies: 2
Views: 365

Re: How to undo 401k 2018 contributions?

This just happened to my wife. I called Fidelity and they advised me to write a “Letter of Instruction” requesting that the over contribution amount be withdrawn in the form of a check sent to my wife’s business. This needs to happen before April 15, 2019. From what was explained to me on the phone...
by financial.freedom
Tue Mar 19, 2019 11:20 pm
Forum: Personal Finance (Not Investing)
Topic: How to undo 401k 2018 contributions?
Replies: 2
Views: 365

How to undo 401k 2018 contributions?

I contributed 2k of employee income to my solo 401k at Charles Schwab from 1099 income as sole proprietor in 2018, however now that I've filed taxes the job overall is in the negative. So CPA says I can't contribute. I should have profit in 2019, should I see if they can change it to a 2019 contribu...
by financial.freedom
Tue Mar 19, 2019 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question for Solo 401k
Replies: 6
Views: 272

Re: Tax question for Solo 401k

I just did the research for the sole proprietor side over the last two weeks. If you are a sole proprietor filing schedule C and schedule SE, then your employer AND employee contributions to a pre-tax solo 401k are summed and go on Schedule 1, line 28. Neither of these amounts is a deductible busin...
by financial.freedom
Tue Mar 19, 2019 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question for Solo 401k
Replies: 6
Views: 272

Re: Tax question for Solo 401k

I just did the research for the sole proprietor side over the last two weeks. If you are a sole proprietor filing schedule C and schedule SE, then your employer AND employee contributions to a pre-tax solo 401k are summed and go on Schedule 1, line 28. Neither of these amounts is a deductible busin...
by financial.freedom
Tue Mar 19, 2019 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question for Solo 401k
Replies: 6
Views: 272

Tax question for Solo 401k

Is the employee contribution for solo 401k PRE tax?

Trying to figure out where it goes on the 1040/which form to file.

Thanks!
by financial.freedom
Fri Mar 08, 2019 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Should I start an S corp?
Replies: 16
Views: 701

Re: Should I start an S corp?

BlueFin wrote:
Fri Mar 08, 2019 1:19 pm
In some states such as New Jersey you'll have to have a workers comp insurance policy.
We live in CA, thanks!
by financial.freedom
Fri Mar 08, 2019 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Should I start an S corp?
Replies: 16
Views: 701

Re: Should I start an S corp?

MichCPA wrote:
Fri Mar 08, 2019 1:36 pm
I might consider having the legal form of an LLC for flexibility and then chose, between partnership/proprietor, S-Corp, and C-Corp taxation.

You could elect whatever tax status benefits you, and you limit your liability.
Thank you!
by financial.freedom
Fri Mar 08, 2019 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: Should I start an S corp?
Replies: 16
Views: 701

Re: Should I start an S corp?

clemrick wrote:
Fri Mar 08, 2019 12:23 pm
Please realize that paying less in "employment taxes" means less Social Security when you retire or get disabled if your employment/self-employment income is less than $132,900.
We each exceed that limit on our W2 regular jobs. This 60k is a side gig.
by financial.freedom
Fri Mar 08, 2019 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: Should I start an S corp?
Replies: 16
Views: 701

Re: Should I start an S corp?

Your CPA is wrong about deductions. There is virtually no difference in business expense deductions with an S-Corp vs. a sole proprietor. If this is the only source of income, an individual will save with an S-Corp vs. sole proprietorships at your income levels, is 15.3% FICA taxes on distributions...
by financial.freedom
Fri Mar 08, 2019 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Should I start an S corp?
Replies: 16
Views: 701

Re: Should I start an S corp?

I'm one to comment on this very subject FF. So I will tell you what you are up against when you decide to go S Corp. as I did from a fast talking accountant. Not sure how long you have been with your accountant or what your relationship is thereof. I will only comment on the slick accountant that w...
by financial.freedom
Fri Mar 08, 2019 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Should I start an S corp?
Replies: 16
Views: 701

Should I start an S corp?

My spouse and I both work as sole proprietors out of our home office and receive a total of about 60k in 1099 income. Our CPA states that we'll have more deductions and save on self employment tax if we form an S corp.

Is this a good idea? What are the pros and cons?

Thank you in advance!
by financial.freedom
Sat Feb 16, 2019 8:42 pm
Forum: Personal Finance (Not Investing)
Topic: Stolen check, what should I do?
Replies: 18
Views: 1485

Stolen check, what should I do?

My landscaper just had his car broken into, and belongings were stolen including the check I wrote him. I cancelled the check. Do I also need to change the account number since the check contains our account and routing number? Or is that step unnecessary?

Thank you in advance!
by financial.freedom
Thu Feb 07, 2019 7:10 pm
Forum: Personal Investments
Topic: Which company has the best solo 401k?
Replies: 8
Views: 583

Re: Which company has the best solo 401k?

I'm looking for a plan that allows after-tax contributions up to the 55k limit that can then be rolled over into a Roth IRA. That's going to be a special type of plan. tfb did it using Acensus as the sponsor and Fidelity as the custodian. Here are two articles by him about the process: Mega Backdoo...
by financial.freedom
Thu Feb 07, 2019 7:09 pm
Forum: Personal Investments
Topic: Which company has the best solo 401k?
Replies: 8
Views: 583

Re: Which company has the best solo 401k?

Employee after-tax contributions and in-service rollovers are not supported by any mainstream provider. You will need a custom 401k plan document administered by a third party administrator (TPA). These are typically several hundred$ for setup and a few hundred$ annually. Oh no :shock: Maybe that's...
by financial.freedom
Thu Feb 07, 2019 5:22 pm
Forum: Personal Investments
Topic: Which company has the best solo 401k?
Replies: 8
Views: 583

Re: Which company has the best solo 401k?

For independent contractor I can pick my own solo 401k. Which company is the best? I want one with low fees that allows rollovers, and a plan that allows for Mega Backdoor Roth conversions outside of the company. Thank you in advance! I believe that both Fidelity and E*Trade offer individual (solo)...
by financial.freedom
Thu Feb 07, 2019 5:09 pm
Forum: Personal Investments
Topic: Which company has the best solo 401k?
Replies: 8
Views: 583

Which company has the best solo 401k?

For independent contractor I can pick my own solo 401k. Which company is the best? I want one with low fees that allows rollovers, and a plan that allows for Mega Backdoor Roth conversions outside of the company.

Thank you in advance!
by financial.freedom
Sun Jan 20, 2019 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: Physicians: did you incorporate yourself? Is it worth it?
Replies: 15
Views: 1622

Re: Physicians: did you incorporate yourself? Is it worth it?

Thank you for the replies, greatly appreciated!

It sounds as though filing as sole prop is best for my particular situation (do not own or rent office space, and no employees).
by financial.freedom
Sun Jan 20, 2019 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: Physicians: did you incorporate yourself? Is it worth it?
Replies: 15
Views: 1622

Re: Physicians: did you incorporate yourself? Is it worth it?

Biggest is PERSONAL liability protection. So you have to figure out do you need it? Do you own/ rent the office space you are working out of? If someone falls/ slips/ has a piece of the ceiling fall/ etc... you would be legally responsible. Do you employ workers? If so, civil lawsuit can occur thos...
by financial.freedom
Sun Jan 20, 2019 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Physicians: did you incorporate yourself? Is it worth it?
Replies: 15
Views: 1622

Physicians: did you incorporate yourself? Is it worth it?

I already deduct home office and related expenses (phone, medical license etc.) and set up solo 401k as independent contractor paid on 1099. Someone at work told me that it makes sense to incorporate myself for tax purposes and legal protection, is this true? Looks like it would require paying an an...
by financial.freedom
Tue Jan 08, 2019 1:46 pm
Forum: Personal Investments
Topic: How to prepare for big 401k rollover (time out of the market)?
Replies: 7
Views: 335

Re: How to prepare for big 401k rollover (time out of the market)?

I would put bonds in 401k and make corresponding changes elsewhere, assuming no tax consequences. This is a good thing to do regardless. Consider partial rollovers. What is the rationale for rolling over? Could you keep as is instead? Ok, that is what I'm thinking. There isn't a great bond fund, bu...
by financial.freedom
Tue Jan 08, 2019 1:43 pm
Forum: Personal Investments
Topic: How to prepare for big 401k rollover (time out of the market)?
Replies: 7
Views: 335

Re: How to prepare for big 401k rollover (time out of the market)?

How much would you stand to "lose" from a 3% increase while you are out? Is this a regular yearly rollover? Changing anything in a taxable account will have tax consequences? 3-5% would be 7-10k -- Not regular, just switching jobs and want to keep it simple with everything at Schwab for my new solo...
by financial.freedom
Tue Jan 08, 2019 1:20 pm
Forum: Personal Investments
Topic: How to prepare for big 401k rollover (time out of the market)?
Replies: 7
Views: 335

How to prepare for big 401k rollover (time out of the market)?

Last time I did a rollover, the market went up and I missed out on 3-4k in gains. This time, my 401k is larger -- should I make it less aggressive such as exchanging to all bonds (and correspondingly exchange my munis for stocks in taxable) before doing the rollover? Any other strategies or things I...
by financial.freedom
Sat Nov 24, 2018 12:26 am
Forum: Personal Investments
Topic: Muni TLH question
Replies: 6
Views: 626

Re: Muni TLH question

Depending on your federal marginal tax rate, you might also take a look at exchanging into short-term Treasury index fund for the second piece. For me, at fed 27% and state 8% marginal rates, STT index taxable-equivalent yield is only 10 basis points less than limited term TE, but duration of STT i...
by financial.freedom
Sat Nov 24, 2018 12:25 am
Forum: Personal Investments
Topic: Muni TLH question
Replies: 6
Views: 626

Re: Muni TLH question

In taxable, my bonds are 50% Calif Intermediate Term (VCAIX) and 50% National Intermed Term Tax Exempt (VWITX). Essentially, all lots under cost basis show losses since I started investing in these funds since 2016. I plan to put an an order for Monday to exchange 100% of shares as follows: A. Cali...
by financial.freedom
Sat Nov 24, 2018 12:24 am
Forum: Personal Investments
Topic: Muni TLH question
Replies: 6
Views: 626

Re: Muni TLH question

In taxable, my bonds are 50% Calif Intermediate Term (VCAIX) and 50% National Intermed Term Tax Exempt (VWITX). Essentially, all lots under cost basis show losses since I started investing in these funds since 2016. I plan to put an an order for Monday to exchange 100% of shares as follows: A. Cali...
by financial.freedom
Fri Nov 23, 2018 1:31 pm
Forum: Personal Investments
Topic: Muni TLH question
Replies: 6
Views: 626

Muni TLH question

In taxable, my bonds are 50% Calif Intermediate Term (VCAIX) and 50% National Intermed Term Tax Exempt (VWITX). Essentially, all lots under cost basis show losses since I started investing in these funds since 2016. I plan to put an an order for Monday to exchange 100% of shares as follows: A. Calif...
by financial.freedom
Sun Oct 28, 2018 8:56 pm
Forum: Personal Investments
Topic: What can I do with new 1099 moonlighting income?
Replies: 5
Views: 665

Re: What can I do with new 1099 moonlighting income?

Clarify with employer that 401k participation is restricted or is the match just unavailable. My spouse was told something similar about a 403b, but could contribute without a match. This happened at multiple institutions and if we didn't push, we'd be 4 years behind... Great idea, I will clarify. ...
by financial.freedom
Sun Oct 28, 2018 8:55 pm
Forum: Personal Investments
Topic: What can I do with new 1099 moonlighting income?
Replies: 5
Views: 665

Re: What can I do with new 1099 moonlighting income?

A solo 401k sounds perfect. You can only put the employee max of 18 k accross all 401ks, but you can put the employer portion in for your 1099 income. https://www.physicianonfire.com/more-than-one-401k/ Wci discusses providers here. https://www.whitecoatinvestor.com/where-to-open-your-solo-401k/ Gr...
by financial.freedom
Sun Oct 28, 2018 11:02 am
Forum: Personal Investments
Topic: What can I do with new 1099 moonlighting income?
Replies: 5
Views: 665

What can I do with new 1099 moonlighting income?

I'm currently a full-time W2 employee, and I'm told that I will not be eligible for a 401k at my job until working 12 months. However, recently a moonlighting opportunity came up that pays me 1099 income. It's not a lot, maybe $500-1,000 per month of 1099 income. 1. What is the best thing for me to ...
by financial.freedom
Wed Aug 22, 2018 6:01 pm
Forum: Personal Investments
Topic: My portfolio picture
Replies: 11
Views: 665

Re: My portfolio picture

Why 11k in tIRA -- can you do 11k per year backdoor Roth IRA?
by financial.freedom
Mon Aug 06, 2018 12:07 pm
Forum: Personal Investments
Topic: How many years till FIRE? Which path would you choose?
Replies: 38
Views: 4959

Re: How many years till FIRE? Which path would you choose?

I don't think this is a financial question somuch as it's a personal question. Do you enjoy your job? Your current lifestyle? Does living off of ~$50k a year in a LCOL area and avoiding Whole Foods / dining out / fancy new cars and electronics sound horrible to you? These are the questions you need...
by financial.freedom
Mon Aug 06, 2018 11:03 am
Forum: Personal Investments
Topic: How many years till FIRE? Which path would you choose?
Replies: 38
Views: 4959

Re: How many years till FIRE? Which path would you choose?

Life is short and work doesn't need to be the main focus. I would 'run to' family, my hobbies, more time with friends, travelling, more time for the gym, going for dates with my wife, volunteer coach for my child's sports just to name a view. Would you prefer to spend most hours working instead? Ho...
by financial.freedom
Sun Aug 05, 2018 9:05 pm
Forum: Personal Investments
Topic: How many years till FIRE? Which path would you choose?
Replies: 38
Views: 4959

Re: How many years till FIRE? Which path would you choose?

No where near the information needed. How many kids? How old? Are you planning to pay for college? What about health insurance until medicare? Just to name a few. In the end the BIG costs of most folk's lives are: House, kid's education, retirement, and if retiring early health care. Having a solid...
by financial.freedom
Sun Aug 05, 2018 8:56 pm
Forum: Personal Investments
Topic: How many years till FIRE? Which path would you choose?
Replies: 38
Views: 4959

Re: How many years till FIRE? Which path would you choose?

As others have said having a net worth goal might be a better methodology. You don't run a marathon thinking I will run for four and a half hours. Income will vary, saving rate will vary, expenses will definitely vary with a child. Ballpark, 10 years. Any chance of doing part time? That might addre...
by financial.freedom
Sun Aug 05, 2018 10:46 am
Forum: Personal Investments
Topic: How many years till FIRE? Which path would you choose?
Replies: 38
Views: 4959

Re: How many years till FIRE? Which path would you choose?

OP: Does your 30k/year equity from business only continue so long as you are working? Can you sell your equity if you retire? If so, for what price? The payments for the equity are via K1 and continue as long as that business continues or is bought out. The buyout price would depend upon the value ...
by financial.freedom
Sat Aug 04, 2018 10:53 pm
Forum: Personal Investments
Topic: How many years till FIRE? Which path would you choose?
Replies: 38
Views: 4959

Re: How many years till FIRE? Which path would you choose?

No where near the information needed. How many kids? How old? Are you planning to pay for college? What about health insurance until medicare? Just to name a few. In the end the BIG costs of most folk's lives are: House, kid's education, retirement, and if retiring early health care. Having a solid...
by financial.freedom
Sat Aug 04, 2018 4:16 pm
Forum: Personal Investments
Topic: How many years till FIRE? Which path would you choose?
Replies: 38
Views: 4959

Re: How many years till FIRE? Which path would you choose?

Emergency fund: 3 months expenses Debt: 1.1M mortgage (3.6%) <-- Is that how much you owe now or the original mortgage amount? How many years left until you retire the mortgage? 20k school loans (2.8%) <-- How long until these are paid off? Tax Filing Status: Married Filing Jointly Tax Rate: 37% Fe...
by financial.freedom
Sat Aug 04, 2018 11:59 am
Forum: Personal Investments
Topic: How many years till FIRE? Which path would you choose?
Replies: 38
Views: 4959

Re: How many years till FIRE? Which path would you choose?

Thank you for the reply. The 150k per year includes mortgage payments and property taxes -- would you still then deduct the mortgage debt for the calculation you made? I think your calculation is assuming the house is paid off, which might not be necessary for us to reach FIRE. Also, I edited above ...
by financial.freedom
Sat Aug 04, 2018 11:44 am
Forum: Personal Investments
Topic: How many years till FIRE? Which path would you choose?
Replies: 38
Views: 4959

How many years till FIRE? Which path would you choose?

Emergency fund: 3 months expenses Debt: 1.1M mortgage (3.6%) 20k school loans (2.8%) Tax Filing Status: Married Filing Jointly Tax Rate: 37% Federal, 13.3% State State of Residence: CA Age: 40 Desired Asset allocation: 70% stocks / 30% bonds Desired International allocation: 30% of stocks Current re...
by financial.freedom
Thu Jul 19, 2018 5:32 pm
Forum: Personal Investments
Topic: New job no 401k -- options for investment?
Replies: 5
Views: 713

New job no 401k -- options for investment?

I recently changed jobs, and my new employer does not offer a 401k. Majority of my income will be paid on W2. I'm also involved in a side business that will pay a smaller amount as K1. 1. Right now I'm only investing in taxable and Roth. Are there any other options -- such as solo 401k etc? 2. For t...
by financial.freedom
Sun Jun 10, 2018 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy into this medical practice?
Replies: 26
Views: 3369

Re: Should I buy into this medical practice?

1. Independent evaluation should not be that expensive. Most can be done for about $5-10K depending on how accurate you want it (projections/detailed analysis). That is in a different area of medicine but I can't imagine the price would differ dramatically. Typically imaging centers have a good amo...
by financial.freedom
Sat Jun 09, 2018 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy into this medical practice?
Replies: 26
Views: 3369

Re: Should I buy into this medical practice?

I would probably only buy in if I knew I was making partner. Unless there’s some sort of unusually long partnership track. How many years until a partnership decision? I'm about 17 mos away from partner Will you need cash at that time to buy in to the practice and if so how much? Yes, buy in for th...
by financial.freedom
Sat Jun 09, 2018 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy into this medical practice?
Replies: 26
Views: 3369

Re: Should I buy into this medical practice?

Getting an independent market evaluation is tough. It costs 25k+ depending on the income streams. What is your monthly distribution amount? How many years to break even? Is there guaranteed amount? The first imaging center had one year negative, broke even year two, positive year three, then return...
by financial.freedom
Sat Jun 09, 2018 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy into this medical practice?
Replies: 26
Views: 3369

Re: Should I buy into this medical practice?

I am currently an associate physician and my group is allowing me to buy a percentage equity (3-5%) of an imaging center as an associate (before making partner). Obviously, this is an orthogonal issue. However, research shows that: - medical doctors who own interest in imaging centers increase the ...
by financial.freedom
Sat Jun 09, 2018 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy into this medical practice?
Replies: 26
Views: 3369

Re: Should I buy into this medical practice?

I am currently an associate physician and my group is allowing me to buy a percentage equity (3-5%) of an imaging center as an associate (before making partner). The valuation is about 3M for two imaging centers, so would cost about 90k if I do 3%. The expected return is negative for year 1 because...
by financial.freedom
Sat Jun 09, 2018 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy into this medical practice?
Replies: 26
Views: 3369

Re: Should I buy into this medical practice?

I'm really grateful for the advice I've received on this forum over the years, but I also feel that sometimes BH are a little conservative. I'm fairly young (late 30s), have great income as a physician, and feel that a lot of physicians these days become W2 employees and are afraid to take risks. So...
by financial.freedom
Tue May 29, 2018 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy into this medical practice?
Replies: 26
Views: 3369

Re: Should I buy into this medical practice?

Pajamas wrote:
Tue May 29, 2018 12:04 pm
I would look at it as more of a career move than strictly as an investment.
Good point, maybe I should look at it as 90k towards my future with the group. If I buy in as an associate, they'll know I'm committed and want to be a part of the group long-term.
by financial.freedom
Tue May 29, 2018 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy into this medical practice?
Replies: 26
Views: 3369

Should I buy into this medical practice?

I am currently an associate physician and my group is allowing me to buy a percentage equity (3-5%) of an imaging center as an associate (before making partner). The valuation is about 3M for two imaging centers, so would cost about 90k if I do 3%. The expected return is negative for year 1 because ...
by financial.freedom
Fri May 04, 2018 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on Car mileage deduction
Replies: 14
Views: 1629

Re: Tips on Car mileage deduction

If you're an employee, you're wasting your time thinking about this. Maybe your tax accountant has gotten back to you by now, but if not you can read this: https://primepay.com/blog/tax-reform-suspends-unreimbursed-itemized-business-expenses. An arrangement whereby an employee also receives a 1099 ...
by financial.freedom
Fri May 04, 2018 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on Car mileage deduction
Replies: 14
Views: 1629

Re: Tips on Car mileage deduction

Are you a W2 employee or a 1099 contractor? Thank you for the reply. I haven't started yet, but I believe most of the pay is W2 and some is 1099. There may also be an option for me to be part owner of one of the offices. For the above posts, I emailed my accountant, still waiting to hear back. I ap...