Search found 1277 matches

by ERISA Stone
Tue May 02, 2017 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Is 401k loan really a bad idea?
Replies: 57
Views: 4110

Re: Is 401k loan really a bad idea?

To add, TFB also said this about the interest payments in the comments section: The interest you pay into the plan is replacing the interest the plan account otherwise would earn from the financial market. If you get a loan from a bank, you are also taxed twice: once on the income earned to pay inte...
by ERISA Stone
Tue May 02, 2017 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: Is 401k loan really a bad idea?
Replies: 57
Views: 4110

Re: Is 401k loan really a bad idea?

You'll also have the "double tax" issue (taxed now as income on the money used to repay it and taxed on it later as ordinary income again). So you'll pay income taxes on that $50k now, and then after you repay it, you'll pay income taxes on it again later. That's a steep penalty imo. It's...
by ERISA Stone
Tue May 02, 2017 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Is 401k loan really a bad idea?
Replies: 57
Views: 4110

Re: Is 401k loan really a bad idea?

I should say the interest is paid back with post tax funds. However that is not true regarding the principal. You are simply replacing pre tax dollars with the same pre tax dollars you took out. You are just moving money around.

I encourage you to look at the links from finance buffs link.
by ERISA Stone
Tue May 02, 2017 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Is 401k loan really a bad idea?
Replies: 57
Views: 4110

Re: Is 401k loan really a bad idea?

Do you pay taxes on the money used to repay a 401k loan when you repay it? Yes. No. The funds used to pay the 401k loan are based on the 401k proceeds from the loan. How you choose to allocate those funds once you take the loan is up to you. Example: You take a $50k loan from the 401k. You decide y...
by ERISA Stone
Tue May 02, 2017 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Is 401k loan really a bad idea?
Replies: 57
Views: 4110

Re: Is 401k loan really a bad idea?

You'll also have the "double tax" issue (taxed now as income on the money used to repay it and taxed on it later as ordinary income again). So you'll pay income taxes on that $50k now, and then after you repay it, you'll pay income taxes on it again later. That's a steep penalty imo. It's...
by ERISA Stone
Tue May 02, 2017 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Is 401k loan really a bad idea?
Replies: 57
Views: 4110

Re: Is 401k loan really a bad idea?

I like the Finance Buff's take on it: The fact that the loan has to be repaid with after-tax dollars is irrelevant... m My opinion is if you are going to take out a loan regardless, you should at least look at your 401k to see if taking the money from there makes sense. If the availability of the 40...
by ERISA Stone
Sun Apr 30, 2017 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Employer moved 401k contribution
Replies: 9
Views: 952

Re: Employer moved 401k contribution

Maybe you weren't eligible until July? If you received a contribution and you weren't eligible for it, yes, they should remove it. Otherwise, the plan isn't operating according to the plan document. As others said, let's wait and see what HR says. I wouldn't contact the DOL at this point. If we're o...
by ERISA Stone
Thu Apr 27, 2017 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: Termination of 401K Plan (business closing)
Replies: 6
Views: 992

Re: Termination of 401K Plan (business closing)

I won't speak to the independent contractor/employee issue. Regarding terminating a plan, here's a good Q&A, along with a plan termination checklist. I recommend reading this and then let the board know if you have questions.

http://www.dwcconsultants.com/knowledge ... nation.php
by ERISA Stone
Thu Apr 27, 2017 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Termination of 401K Plan (business closing)
Replies: 6
Views: 992

Re: Termination of 401K Plan (business closing)

Do you have employees that will continue to work at your corporation?
by ERISA Stone
Wed Apr 26, 2017 11:34 am
Forum: Investing - Help with Personal Investments
Topic: How hard is it for company to amend 401k plan?
Replies: 3
Views: 361

Re: How hard is it for company to amend 401k plan?

Those are federal limits. The limits are not plan specific. See the 402(g) limits here: m Plan amendments can run from $200-$1000, depending on the complexity of the new provision and the type of document (prototype, individually designed, etc). Some amendments can be made immediately, while others ...
by ERISA Stone
Wed Apr 26, 2017 7:30 am
Forum: Investing - Help with Personal Investments
Topic: Employer 401(k) Liability
Replies: 13
Views: 1055

Re: Employer 401(k) Liability

Erisa stone - I was not clear. I am concerned about fiduciary liability related to the 401k. Will choosing index funds only (across the key asset classes) and target date funds (which are comprised of index funds) be the best way to minimize any fiduciary liability risk? Will I need a financial adv...
by ERISA Stone
Wed Apr 26, 2017 7:14 am
Forum: Investing - Help with Personal Investments
Topic: 401k over contribution and 1099R
Replies: 19
Views: 1438

Re: 401k over contribution and 1099R

Based on what you've described, you violated the 402(g) limit ($18k). The IRS fix-it guide indicates the following to fix a 402(g) violation: Timely withdrawal of excess contributions by April 15 Excess deferrals withdrawn by April 15 of the year following the year of deferral are taxable in the cal...
by ERISA Stone
Tue Apr 25, 2017 10:14 pm
Forum: Investing - Help with Personal Investments
Topic: Employer 401(k) Liability
Replies: 13
Views: 1055

Re: Employer 401(k) Liability

How many participants do you have? How many HCEs? I've never heard of a plan sponsor having an issue with the new comparability formula from a fiduciary perspective. I would assume a lawsuit could be brought upon a plan with a pro rata allocation just as easily as a new comparability formula. It's a...
by ERISA Stone
Tue Apr 25, 2017 9:50 pm
Forum: Investing - Help with Personal Investments
Topic: 401k over contribution and 1099R
Replies: 19
Views: 1438

Re: 401k over contribution and 1099R

This is a different situation than a normal excess deferral. Normally, this can only occur when when you work for more than one employer. The corrective actions in this case are directed at the employee. It is the employee's responsibility to remove the excess deferral and earnings This particular ...
by ERISA Stone
Mon Apr 24, 2017 10:14 am
Forum: Investing - Help with Personal Investments
Topic: Why is Real-Estate so Bad?
Replies: 113
Views: 10512

Re: Why is Real-Estate so Bad?

Lack of diversification, lack of time, and illiquidity are the primary reasons I don't currently invest in RE outside of REITs.
by ERISA Stone
Thu Apr 20, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodbye."
Replies: 336
Views: 42161

Re: Larry Swedroe says "Goodby."

Looks like I will be one of the first dissenters here. I stopped clicking on any of his threads quite a while ago. In my view, the threads often had a predictable progression. A. I wrote this, you should read it B. Someone reads it, dissects it and makes some counter points C. Larry restates his po...
by ERISA Stone
Thu Apr 20, 2017 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Tax preparer charging for past tax PDF's copies
Replies: 49
Views: 3866

Re: Tax preparer charging for past tax PDF's copies

To be fair, strictly in terms of time, the amendment probably cost $300. But sometimes in business, I think it's important to consider the implications of something so minor. See the forest for the trees and all that. If you are going to nickel & dime me to death, you better make sure you are t...
by ERISA Stone
Tue Apr 18, 2017 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache is doing an Ask Me Anything (AMA) on Reddit Today
Replies: 6
Views: 2010

Re: Mr. Money Mustache is doing an Ask Me Anything (AMA) on Reddit Today

Regarding his current spending level, he said: Yes, our current lifestyle is somewhere under $30k, and the original amount we retired on was more than enough to sustain this level of spending indefinitely. Plus, we've usually earned money from other sources most years, even before and since the blog.
by ERISA Stone
Sat Apr 15, 2017 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: Converting a Safe Harbor to a simple IRA
Replies: 15
Views: 660

Re: Converting a Safe Harbor to a simple IRA

Was the employee a participant in the plan, meaning they met eligibility requirements and had the ability to make contributions, regardless of whether they did or not?
by ERISA Stone
Fri Apr 14, 2017 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: Converting a Safe Harbor to a simple IRA
Replies: 15
Views: 660

Re: Converting a Safe Harbor to a simple IRA

If you terminate a safe harbor plan mid-year, you must: 1. Give participants at least 30 days notice 2. Officially terminate the plan 3. Fund the safe harbor contribution through the termination date 4. Pass ADP/ACP nondiscrimination test 5. All participant accounts must be fully vested if they are ...
by ERISA Stone
Fri Apr 14, 2017 11:16 am
Forum: Investing - Help with Personal Investments
Topic: Converting a Safe Harbor to a simple IRA
Replies: 15
Views: 660

Re: Converting a Safe Harbor to a simple IRA

I don't want to scare you but I'm a little concerned with your response. There has to be a distributable event to receive distributions. Terminating the plan is a distributable event, but you must sign paperwork to terminate. The plan doesn't just go away because your vendor no longer services it. A...
by ERISA Stone
Fri Apr 14, 2017 10:55 am
Forum: Investing - Help with Personal Investments
Topic: Converting a Safe Harbor to a simple IRA
Replies: 15
Views: 660

Re: Converting a Safe Harbor to a simple IRA

Did you actually sign paperwork to terminate the plan? There has to be a distributable event to process a distribution, and EJ shutting down operations isn't a sufficient reason.
by ERISA Stone
Fri Apr 14, 2017 7:48 am
Forum: Personal Finance (Not Investing)
Topic: Dealership rejecting rebate after contract signed
Replies: 118
Views: 15955

Re: Dealership rejecting rebate after contract signed

I recommend posting in the askcarsales subreddit on Reddit.com. They are generally helpful with situations like this.
by ERISA Stone
Thu Apr 13, 2017 8:45 pm
Forum: Personal Consumer Issues
Topic: Meeting with Wells Fargo Financial Advisor Yesterday - Strange Perspective Regarding Mutual Funds
Replies: 18
Views: 2436

Re: Meeting with Wells Fargo Financial Advisor Yesterday - Strange Perspective Regarding Mutual Funds

My father in law put his retirement money with Wells Investment Advisors back in 2012 for about a year and a half. They had three "investment plans" they pitched to him. Plan one was self directed with broker assist and you could get the broker to buy or sell stocks and funds as you wish....
by ERISA Stone
Thu Apr 13, 2017 11:53 am
Forum: Personal Consumer Issues
Topic: Meeting with Wells Fargo Financial Advisor Yesterday - Strange Perspective Regarding Mutual Funds
Replies: 18
Views: 2436

Re: Meeting with Wells Fargo Financial Advisor Yesterday - Strange Perspective Regarding Mutual Funds

A.) I can make outlandish statements too without any backup or evidence to support my proclamations. B.) If he really could beat the S&P 500 by 300 basis points, with less risk no doubt, then why is he pitching retail clients at Wells Fargo instead of being featured in the Financial Times and t...
by ERISA Stone
Thu Apr 13, 2017 11:40 am
Forum: Personal Consumer Issues
Topic: Meeting with Wells Fargo Financial Advisor Yesterday - Strange Perspective Regarding Mutual Funds
Replies: 18
Views: 2436

Meeting with Wells Fargo Financial Advisor Yesterday - Strange Perspective Regarding Mutual Funds

I met with an advisor at Wells Fargo yesterday so he could pitch a retirement planning report to me - Envision. Here's a link if any of you are interested. m Then Envision report is free, but obviously, the goal is to get my investment accounts. Strangely, he bashed mutual fund and ETF investing, pr...
by ERISA Stone
Thu Apr 13, 2017 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Tax preparer charging for past tax PDF's copies
Replies: 49
Views: 3866

Re: Tax preparer charging for past tax PDF's copies

I don't think there is a right/wrong answer here. Having said that, if any of my vendors starts nickel & diming me, it does give me pause to consider there are other vendors out there. My accountant merged with another firm a few months ago, and it's obvious that tracking time down to the minute...
by ERISA Stone
Wed Apr 12, 2017 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: Can I put Mutual Funds instead of Cash into my SEP-IRA?
Replies: 13
Views: 954

Re: Can I put Mutual Funds instead of Cash into my SEP-IRA?

The deadline for the SEP IRA can be extended by extending your tax return. Is it possible you would have the funds to make the SEP IRA contribution by the extension deadline - October 15? You still have to pay taxes by April 18th to avoid penalty.
by ERISA Stone
Wed Apr 12, 2017 7:20 pm
Forum: Personal Finance (Not Investing)
Topic: Must file late 5500-Ez - is this DIY?
Replies: 22
Views: 1697

Re: Must file late 5500-Ez - is this DIY?

I appreciate all the encouragement for DIY. And I appreciate the tip on splitting the employee deferral and employer match; that made more sense to me since I track it separately and report it separately on my taxes but I had seen conflicting information. I will split it into the two buckets. Spiri...
by ERISA Stone
Wed Apr 12, 2017 7:18 pm
Forum: Personal Consumer Issues
Topic: Week in San Diego - What to do?
Replies: 35
Views: 2609

Re: Week in San Diego - What to do?

If you can get there, Stone Brewery for dinner in Escondido was pretty amazing. I seem to recall people having children there but it's been a few years.
by ERISA Stone
Wed Apr 12, 2017 7:15 pm
Forum: Personal Consumer Issues
Topic: HMOs and Physical Therapy
Replies: 5
Views: 606

Re: HMOs and Physical Therapy

I have an HMO. I ended up using the PT that I felt I needed rather than the one in-network. it cost me an extra $35/visit but it was worth it.
by ERISA Stone
Wed Apr 12, 2017 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Help me understand 0% APR Credit Card Offers - Is it a good loan option?
Replies: 21
Views: 2040

Re: Help me understand 0% APR Credit Card Offers - Is it a good loan option?

1. Sometimes one must pay off on time or interest is applied retroactively to ALL the money borrowed. This is the typical arrangement. I don't think this is correct. What you describe is typical for say in-store furniture financing. A credit card will start charging interest on the balance left ove...
by ERISA Stone
Wed Apr 12, 2017 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Must file late 5500-Ez - is this DIY?
Replies: 22
Views: 1697

Re: Must file late 5500-Ez - is this DIY?

Elective deferrals are employEE contributions. Profit sharing is employER contributions. In the most technical sense of the term, ALL contributions are employER contributions because even deferrals are employER contributions made on behalf of the employEE. But the DOL expects to see deferrals separa...
by ERISA Stone
Tue Apr 11, 2017 10:54 pm
Forum: Personal Finance (Not Investing)
Topic: Can we afford private school tuition
Replies: 42
Views: 4006

Re: Can we afford private school tuition

Where is the real estate equity? Is that a good investment for you? Is it possible to turn it to funds to invest?
by ERISA Stone
Fri Apr 07, 2017 5:18 pm
Forum: Personal Consumer Issues
Topic: STEM & "coding" toys for little ones ?
Replies: 41
Views: 3614

Re: STEM & "coding" toys for little ones ?

My 4 year old hasn't really been interested in coding toys. I've been able to get him interested in a few "analytical" board games. His current favorites are Monza and Hisss. These do require special me interaction with the parent though.
by ERISA Stone
Fri Mar 31, 2017 12:55 am
Forum: Investing - Help with Personal Investments
Topic: Investing 401k contributions and company match differently?
Replies: 10
Views: 775

Re: Investing 401k contributions and company match differently?

My 401k is at Vanguard and my employer match is instantly vested. Vanguard still keeps track of my pre-tax, Roth, and match contributions separately. Employer match contributions, once vested, behave identically to pre-tax contributions. Sources may have different provisions attached to them, even ...
by ERISA Stone
Thu Mar 30, 2017 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank - access issues, normal?
Replies: 13
Views: 1179

Re: Ally Bank - access issues, normal?

I didn't have an issue logging into my account. I haven't had any problems but I only use it for emergency funds.
by ERISA Stone
Thu Mar 30, 2017 3:32 pm
Forum: Personal Consumer Issues
Topic: Is the secret to getting wealthy...
Replies: 48
Views: 4955

Re: Is the secret to getting wealthy...

Being a millionaire is played out. Living on $10k a year and riding your bike to pick free blueberries at the side of the road is in. You gotta get off Marketwatch and onto Mr. Money Mustache. That's a bit of an exaggeration. Mr. Money Mustache retired on $600K and a paid off house. And he targets ...
by ERISA Stone
Thu Mar 23, 2017 2:46 pm
Forum: Investing - Theory, News & General
Topic: 401k access at 55 vs 59.5
Replies: 12
Views: 1594

Re: 401k access at 55 vs 59.5

-Made as part of a series of substantially equal periodic payments beginning after separation from service and made at least annually for the life or life expectancy of the participant or the joint lives or life expectancies of the participant and his or her designated beneficiary. (The payments un...
by ERISA Stone
Thu Mar 23, 2017 2:41 pm
Forum: Investing - Theory, News & General
Topic: The $1,124,176 Car.
Replies: 99
Views: 10079

Re: The $1,124,176 Car.

You need to know which cars to buy and you can drive them for free. I purchased a car last year that I made $75k in 6 months of ownership. A good buddy of mine has been doing the same on over 40 Ferrari. Yes, they're correlated to the financial markets but so is a Total Stock Market fund... Are you...
by ERISA Stone
Thu Mar 23, 2017 10:22 am
Forum: Investing - Theory, News & General
Topic: The $1,124,176 Car.
Replies: 99
Views: 10079

Re: The $1,124,176 Car.

lazydavid wrote:
ERISA Stone wrote:How many people are buying $50k BMWs at age 25?


I bought a $35k BMW at age 22, does that count?


It doesn't meet the $50k requirement.
by ERISA Stone
Thu Mar 23, 2017 9:41 am
Forum: Investing - Theory, News & General
Topic: The $1,124,176 Car.
Replies: 99
Views: 10079

Re: The $1,124,176 Car.

How many people are buying $50k BMWs at age 25?
by ERISA Stone
Wed Mar 22, 2017 11:15 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 5315

Re: S corp - 401K plan - profit sharing

If I had to guess, Guideline's assets increased because of their partnerships. For example, if you choose Gusto as a payroll provider and would also like a low-cost 401k provider, you are sent directly to Guideline. I'm sure they have similar arrangements with other companies. This is good exposure....
by ERISA Stone
Sun Mar 19, 2017 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 5315

Re: S corp - 401K plan - profit sharing

Maybe guideline doesn't allow the new comparability method? I can't remember what it was but I laughed and politely ended the phone call when they told me it wasn't allowed under their plan. I really like guideline's model on the surface but I don't think you have a lot of flexibility in plan desig...
by ERISA Stone
Sun Mar 19, 2017 11:31 am
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 5315

Re: S corp - 401K plan - profit sharing

Maybe guideline doesn't allow the new comparability method? I can't remember what it was but I laughed and politely ended the phone call when they told me it wasn't allowed under their plan. I really like guideline's model on the surface but I don't think you have a lot of flexibility in plan design...
by ERISA Stone
Sat Mar 18, 2017 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 5315

Re: S corp - 401K plan - profit sharing

[quote="investor999"]Thought I would throw my two cents here on safe harbor 401k plans for small businesses. I am signing up for guideline.com safe harbor for my 6 employee S-Corp. $40 per month or ($8.00 per employee) They carry Fiduciary responsibility 3 bp AUM fee. $500 setup fee $1000 ...
by ERISA Stone
Sat Mar 18, 2017 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 5315

Re: S corp - 401K plan - profit sharing

I wonder anyone knows the answer to this I have two businesses, with two different tax ID and two different single owner LLC. However, I have filed the necessary paperwork to file taxes as an S-Corp for 2017 tax return. For Simple IRA I was told employees from both businesses needs to be included a...
by ERISA Stone
Sat Mar 18, 2017 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 5315

Re: S corp - 401K plan - profit sharing

I wonder anyone knows the answer to this I have two businesses, with two different tax ID and two different single owner LLC. However, I have filed the necessary paperwork to file taxes as an S-Corp for 2017 tax return. For Simple IRA I was told employees from both businesses needs to be included a...
by ERISA Stone
Fri Mar 17, 2017 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: S corp - 401K plan - profit sharing
Replies: 130
Views: 5315

Re: S corp - 401K plan - profit sharing

Based on this post from benefitslink m (note it's from 2009), you can likely exclude this class as long as you pass coverage. To pass coverage, at least 70% of NHCEs must benefit when compared to the % of benefitting HCEs. It might be a tight fit because you have so few participants. I don't think y...