Search found 1274 matches

by ERISA Stone
Wed Aug 30, 2017 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: Company 401k is incorrectly dealing with over 50 catch up contribution
Replies: 35
Views: 2907

Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Virtually every feature of a 401k plan is optional. For example, a plan doesn't have to allow the full $18k in deferrals if they don't want. There's no good reason to do that, just like there's no good reason not to allow catch-up contributions. But the plan still has to allow for it. Thanks for th...
by ERISA Stone
Wed Aug 30, 2017 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: Company 401k is incorrectly dealing with over 50 catch up contribution
Replies: 35
Views: 2907

Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Yes, the catch-up contribution is an optional feature. An employer does not have to offer catch-up contributions. I'm confused on how this can be an "optional feature" when there's explicit IRS regulations that allow it. Technically, there is no $60,000 limit The IRS would disagree with you: Overal...
by ERISA Stone
Wed Aug 30, 2017 11:14 am
Forum: Personal Finance (Not Investing)
Topic: How do loans from solo 401k work?
Replies: 11
Views: 800

Re: How do loans from solo 401k work?

Sorry, I didn't mean to sound skeptical that it exists. I just don't know how they get around the anti-assignment rules with this arrangement. In my experience, anti-assignment rules are very cut and dry. For example, see this story when a company tried to take 401k funds of a former employee who s...
by ERISA Stone
Tue Aug 29, 2017 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: How do loans from solo 401k work?
Replies: 11
Views: 800

Re: How do loans from solo 401k work?

2. If permitted, the loan is AGAINST your Solo 401K, it is not FROM your Solo 401K. The provider loans you money with your Solo 401K as collateral. No money comes out of your Solo 401K unless you default on the loan payments. [edit] I borrowed against a company-sponsored 401K for some expenses. The...
by ERISA Stone
Tue Aug 29, 2017 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: How do loans from solo 401k work?
Replies: 11
Views: 800

Re: How do loans from solo 401k work?

2. If permitted, the loan is AGAINST your Solo 401K, it is not FROM your Solo 401K. The provider loans you money with your Solo 401K as collateral. No money comes out of your Solo 401K unless you default on the loan payments. [edit] I borrowed against a company-sponsored 401K for some expenses. The...
by ERISA Stone
Tue Aug 29, 2017 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: How do loans from solo 401k work?
Replies: 11
Views: 800

Re: How do loans from solo 401k work?

So I'm in pretty dire financial situation, but I have low 6 figures in my solo 401k. I'd prefer not to withdraw and pay 10% fee and income tax. How exactly does the loan work? Also if I withdraw is there option like a Roth where you can repay within 60 days and not incur the fee? You say you're in ...
by ERISA Stone
Tue Aug 29, 2017 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: Company 401k is incorrectly dealing with over 50 catch up contribution
Replies: 35
Views: 2907

Re: Company 401k is incorrectly dealing with over 50 catch up contribution

Can you provide dialogue between you and your company (and remove any identifying information) so we can provide feedback?
by ERISA Stone
Mon Aug 28, 2017 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: 401k match [company withholding income to offset company match]
Replies: 21
Views: 1482

Re: 401k match [company withholding income to offset company match]

I posted your situation on benefitslink. I only received a few responses but all made mention of allowing the participant to have discretion is likely a CODA arrangement. They were ok with the profit sharing aspect, and I read that they would be ok with a safe harbor nonelective since it is a clearl...
by ERISA Stone
Fri Aug 25, 2017 8:48 am
Forum: Personal Consumer Issues
Topic: Braves day game seats - any sections in shade?
Replies: 7
Views: 756

Re: Braves day game seats - any sections in shade?

The 1st base line looks to be your best bet. There appear to be some seats just below the 2nd deck. I assume those would be shaded most, if not all, of the time.
by ERISA Stone
Tue Aug 22, 2017 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: 401k match [company withholding income to offset company match]
Replies: 21
Views: 1482

Re: 401k match [company withholding income to offset company match]

Although, in both cases I know, the employer was a university or similar non-profit. This is not my area of expertise but I think your last line is important. I found this information about 414 plans when researching this issue. https://www.irs.gov/government-entities/federal-state-local-government...
by ERISA Stone
Tue Aug 22, 2017 3:41 pm
Forum: Personal Consumer Issues
Topic: iPhone upgrade through Apple vs through carrier
Replies: 19
Views: 1733

Re: iPhone upgrade through Apple vs through carrier

On the Apple plan, don't you simply turn in your phone when you upgrade? If so, you are losing any equity you may have in your old phone. Well they give you a reimbursement for turning it in. Probably not as much as you'd get for selling on the private market though. Thanks. I would just weigh that...
by ERISA Stone
Tue Aug 22, 2017 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: 401k match [company withholding income to offset company match]
Replies: 21
Views: 1482

Re: 401k match [company withholding income to offset company match]

Monroechompers wrote:
Tue Aug 22, 2017 2:50 pm
I have asked many other employed physicians, office manager for large practices, parners in large practices, a cfo that rns a large company retirement plan, and a tax attorney off the record.
What's the consensus from this group?
by ERISA Stone
Tue Aug 22, 2017 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: 401k match [company withholding income to offset company match]
Replies: 21
Views: 1482

Re: 401k match [company withholding income to offset company match]

neurosphere wrote:
Tue Aug 22, 2017 2:14 pm


I'm not sure what you mean by "working around the individual max". Which max?

The max is $18k. If they're reducing his compensation by more than $18k and classifying as an employer contribution, they are in effect creating a workaround of the $18k limit.
by ERISA Stone
Tue Aug 22, 2017 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: 401k match [company withholding income to offset company match]
Replies: 21
Views: 1482

Re: 401k match [company withholding income to offset company match]

What does your plan document say about plan compensation for contribution purposes? It supersedes your employment contract. I can't say for sure it's illegal, but it feels incredibly unethical. If you are a W-2 employee (nonpartner), I just don't see how they could do this. As it was alluded to, the...
by ERISA Stone
Tue Aug 22, 2017 8:01 am
Forum: Personal Consumer Issues
Topic: iPhone upgrade through Apple vs through carrier
Replies: 19
Views: 1733

Re: iPhone upgrade through Apple vs through carrier

On the Apple plan, don't you simply turn in your phone when you upgrade? If so, you are losing any equity you may have in your old phone.
by ERISA Stone
Fri Aug 18, 2017 12:51 pm
Forum: Investing - Theory, News & General
Topic: Plaintiffs win Tibble v Edison (re: lower fees in 401k's)
Replies: 3
Views: 854

Re: Plaintiffs win Tibble v Edison (re: lower fees in 401k's)

In my opinion, this is not a victory for lower fees in a retirement plan. The sponsor didn't lose this case because high-fee, actively managed funds were provided. They lost because the exact same funds they offered were available at a lower cost. Honestly, I don't know how this happens with a plan ...
by ERISA Stone
Thu Aug 17, 2017 10:49 am
Forum: Personal Finance (Not Investing)
Topic: 27y/o w/ 150k debt buying 685k house
Replies: 41
Views: 4598

Re: 27y/o w/ 150k debt buying 685k house

A number of years ago I visited my best friend from high school. His wife had died soon after they'd bought a nice home near the beach in Florida. He now had a girlfriend who owned a condo, and they were making plans to move into her condo together. (Both were real estate agents.) Even before they ...
by ERISA Stone
Fri Aug 11, 2017 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: $50k loan from 401k for house
Replies: 21
Views: 1610

Re: $50k loan from 401k for house

I have $200k in my 401k and we are in the process of closing a 424k house with 340k mortgage. We don't need the money to pay for the down payment. The crazy thought we have is should we each take 50k from our 401ks and knock that mortgage by and then pay that interest ourselves? Is 50k limit per ho...
by ERISA Stone
Fri Aug 04, 2017 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: MySolo401k.net
Replies: 8
Views: 750

Re: MySolo401k.net

"take advantage of aftertax (nonRoth) contributions. " ->"No i401(k) providers offers this feature for free. " Does anyone happens to know a good site doing comparison of the costs associated with plans that have such options? I have mostly read The Finance Guy blog post on the plan he created manu...
by ERISA Stone
Fri Aug 04, 2017 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Going from pooled company 401k to Participant-directed 401K accounts - issues and hurdles
Replies: 12
Views: 747

Re: Going from pooled company 401k to Participant-directed 401K accounts - issues and hurdles

It's not common but I have worked with a few actuaries on defined contribution plans. Sometimes it just happens to be a component of their business. Anecdotally, it is usually a little higher, but not egregious.
by ERISA Stone
Thu Aug 03, 2017 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: MySolo401k.net
Replies: 8
Views: 750

Re: MySolo401k.net

As others have mentioned, there is generally no need to pay for an individual 401(k) plan. The only reason I can think of is if you want to take advantage of aftertax (nonRoth) contributions. No i401(k) providers offers this feature for free. Other than that the only difference I see is: Consultatio...
by ERISA Stone
Thu Aug 03, 2017 10:31 am
Forum: Investing - Help with Personal Investments
Topic: Burned out at 28. Do I have enough?
Replies: 62
Views: 9910

Re: Burned out at 28. Do I have enough?

I fall in the "life is too short" crowd. I was burned out on my first career at 25. I didn't save often. I spent most of my money back then. I moved to Europe to teach English for a year. I think I had about $10k saved at the time, and it was used to pay commitments back home. I spent my last $$ on ...
by ERISA Stone
Wed Aug 02, 2017 8:17 am
Forum: Personal Finance (Not Investing)
Topic: 401k Eligibility: Should I have to wait 17.5 months?
Replies: 8
Views: 950

Re: 401k Eligibility: Should I have to wait 17.5 months?

In a previous job I was told one thing about my 401k eligibility during the initial job negotiations with the owner/CEO and was told something else after the fact by the HR representative when I was onboarded. I forget the specifics but I was kept out of the company's 401k for a few months more tha...
by ERISA Stone
Fri Jul 14, 2017 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Solo-401k options if no after-tax contributions in Wife's 401k?
Replies: 19
Views: 1440

Re: Solo-401k options if no after-tax contributions in Wife's 401k?

Regarding the retirement plan discussion, there are a few limits in play: 1. 402(g) Limit - 100% of compensation up to $18k ($24k if over age 50). This is the employEE deferral limit (excludes nonRoth aftertax conributions). The 18k is an individual limit and is spread across ALL retirement plans in...
by ERISA Stone
Fri Jul 14, 2017 10:01 am
Forum: Personal Consumer Issues
Topic: Suing soon to be former employer, do I have a case?
Replies: 17
Views: 2113

Re: Suing soon to be former employer, do I have a case?

Something tells me the legal department is well aware of this strategy.
by ERISA Stone
Fri Jul 14, 2017 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Contributing the entire Year 401K in one Pay period allowed?
Replies: 22
Views: 3300

Re: Contributing the entire Year 401K in one Pay period allowed?

Agree with above. However, one thing to be mindful of is if you leave your employer before the true-up is done you "may not" be entitled to it. This happened to me my last year of work. Contributed the max ($24K) in the first two months of the year (then retired). Company plan required I be employe...
by ERISA Stone
Fri Jul 14, 2017 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Should I buy this house?
Replies: 50
Views: 4637

Re: Should I buy this house?

Maybe I'm too confined to my little bubble.....but why are the property taxes so high on this property? Is there a lot of land, or are some areas simply that high? I was wondering the same thing. That's over 2% property tax, which I've never heard of. 2-3% is par for the course in Texas. It's about...
by ERISA Stone
Fri Jul 14, 2017 9:47 am
Forum: Investing - Help with Personal Investments
Topic: 401k Funds Available for Business
Replies: 5
Views: 387

Re: 401k Funds Available for Business

One strategy to keep things simple is to replicate (as closely as possible) the choices in the federal government's TSP program (tsp.gov) while also keeping fees as low as possible. This is what I do. I would pick those Vanguard target dates and be done. Just curious - do you have to go with Payche...
by ERISA Stone
Fri Jul 14, 2017 9:33 am
Forum: Investing - Help with Personal Investments
Topic: Solo-401k options if no after-tax contributions in Wife's 401k?
Replies: 19
Views: 1440

Re: Solo-401k options if no after-tax contributions in Wife's 401k?

The LLC makes it a little more difficult to control the income for you, but you could consider lowering your income and increasing hers for your company so that you both make enough to max out pre-tax sources in the solo(k). My wife and I operate a business together and when we had a solo(k), our co...
by ERISA Stone
Thu Jul 06, 2017 2:11 pm
Forum: Investing - Theory, News & General
Topic: Convert SEP IRA to Solo 401 K
Replies: 13
Views: 1296

Re: Convert SEP IRA to Solo 401 K

You can not have a 5305-SEP plan at the same time as a 401k. Most mainstream SEP IRA custodians (Vanguard, Fidelity, etc...) only offer a 5305-SEP plan. One notable exception is Schwab. They offer a prototype SEP plan that can be used in conjunction with a one-participant 401k. This late in the yea...
by ERISA Stone
Wed Jul 05, 2017 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: 45yo 18M portfolio, best way to grow?
Replies: 47
Views: 6845

Re: 45yo 18M portfolio, best way to grow?

Do you own the $12M in housing/rental outright, or are there mortgages attached. If so, what's the debt total?
by ERISA Stone
Wed Jul 05, 2017 11:34 am
Forum: Personal Finance (Not Investing)
Topic: People who receive employer 401k contributions, how is it accounted on paystubs?
Replies: 28
Views: 2404

Re: People who receive employer 401k contributions, how is it accounted on paystubs?

I do not include our company's employER contributions on their "paystubs." My payroll provider indicated that I would have to let them administer my 401k plan in order to do this. Do employers get some sort of tax break for their 401k contributions on corporate tax forms (I presume the amounts are d...
by ERISA Stone
Wed Jul 05, 2017 8:41 am
Forum: Personal Finance (Not Investing)
Topic: 5500 Deadline Reminder for Individual 401k Plans (solo(k)s)
Replies: 4
Views: 619

5500 Deadline Reminder for Individual 401k Plans (solo(k)s)

If your assets were over $250k at the end of 2016, your deadline to file the Form 5500 (EZ or SF) is July 31, 2017.
by ERISA Stone
Mon Jul 03, 2017 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy this house?
Replies: 50
Views: 4637

Re: Should I buy this house?

Maybe I'm too confined to my little bubble.....but why are the property taxes so high on this property? Is there a lot of land, or are some areas simply that high?
by ERISA Stone
Mon Jul 03, 2017 8:27 am
Forum: Personal Consumer Issues
Topic: Verizon- Why do they treat old customers worse?
Replies: 47
Views: 5549

Re: Verizon- Why do they treat old customers worse?

My experience with other companies (Comcast and Directv come to mind) that it usually takes me calling to cancel services to get the promotional rate. Maybe I don't get the lowest of the lows deal, but I am usually satisfied with that I get in return for about 30 minutes worth of hassle.
by ERISA Stone
Sat Jul 01, 2017 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: Wife Hired By My Single-Member LLC?
Replies: 16
Views: 2009

Re: Wife Hired By My Single-Member LLC?

I was able to set up restrictions in my TDA solo(k) document. thank you for this tip. Why/what restriction did you set up in your Individual 401k?. I did it to protect the business in case we had to hire someone all of a sudden and weren't considering the 401k plan. That would've knocked us out of ...
by ERISA Stone
Sat Jul 01, 2017 12:41 am
Forum: Personal Finance (Not Investing)
Topic: Wife Hired By My Single-Member LLC?
Replies: 16
Views: 2009

Re: Wife Hired By My Single-Member LLC?

Might be another benefit. A friend who owns his one-person company and worked as a consultant told me he used this technique as a way to write off a great deal of his medical expenses. Here's how he explained it to me. Business owners apparently can't deduct the cost of their own health insurance. ...
by ERISA Stone
Fri Jun 30, 2017 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Wife Hired By My Single-Member LLC?
Replies: 16
Views: 2009

Re: Wife Hired By My Single-Member LLC?

Make sure there is no entry requirement in the Adoption Agreement for your wife. I was able to set up restrictions in my TDA solo(k) document. If there are restrictions, you'll either have to amend the plan or not allow your wife to participate in the solo(k).
by ERISA Stone
Fri Jun 30, 2017 5:27 pm
Forum: Personal Consumer Issues
Topic: Buying house - Very important decision
Replies: 228
Views: 19944

Re: Buying house - Very important decision

I hate to go against the board, but personally, 3500 sqft is right where I would aim. My wife and I lived in a 2200 sqft house with one child and we always felt cramped. To be fair, we both worked from home at the time so that might have had something to do with it, but we both felt the same way. W...
by ERISA Stone
Fri Jun 30, 2017 3:39 pm
Forum: Personal Consumer Issues
Topic: Buying house - Very important decision
Replies: 228
Views: 19944

Re: Buying house - Very important decision

I hate to go against the board, but personally, 3500 sqft is right where I would aim. My wife and I lived in a 2200 sqft house with one child and we always felt cramped. To be fair, we both worked from home at the time so that might have had something to do with it, but we both felt the same way. W...
by ERISA Stone
Fri Jun 30, 2017 12:42 pm
Forum: Personal Consumer Issues
Topic: Buying house - Very important decision
Replies: 228
Views: 19944

Re: Buying house - Very important decision

I hate to go against the board, but personally, 3500 sqft is right where I would aim. My wife and I lived in a 2200 sqft house with one child and we always felt cramped. To be fair, we both worked from home at the time so that might have had something to do with it, but we both felt the same way. W...
by ERISA Stone
Thu Jun 29, 2017 8:34 pm
Forum: Personal Consumer Issues
Topic: Buying house - Very important decision
Replies: 228
Views: 19944

Re: Buying house - Very important decision

I hate to go against the board, but personally, 3500 sqft is right where I would aim. My wife and I lived in a 2200 sqft house with one child and we always felt cramped. To be fair, we both worked from home at the time so that might have had something to do with it, but we both felt the same way. We...
by ERISA Stone
Thu Jun 29, 2017 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Funds Available for Business
Replies: 5
Views: 387

Re: 401k Funds Available for Business

One strategy to keep things simple is to replicate (as closely as possible) the choices in the federal government's TSP program (tsp.gov) while also keeping fees as low as possible. This is what I do. I would pick those Vanguard target dates and be done. Just curious - do you have to go with Payche...
by ERISA Stone
Thu Jun 29, 2017 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on excepting a lower 401K employer match
Replies: 10
Views: 941

Re: Thoughts on excepting a lower 401K employer match

I think your title should be "Thoughts on accepting a lower 401k employer match". 1.5% of $18,000 = $270, that is what you would be missing each year. I don't see that OP gave the formula. You can't calcuate 1.5% of the limit to find the lost amount. Easy example: suppose now OP makes $100k and cur...
by ERISA Stone
Wed Jun 28, 2017 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on excepting a lower 401K employer match
Replies: 10
Views: 941

Re: Thoughts on excepting a lower 401K employer match

I think your title should be "Thoughts on accepting a lower 401k employer match". 1.5% of $18,000 = $270, that is what you would be missing each year. I don't see that OP gave the formula. You can't calcuate 1.5% of the limit to find the lost amount. Easy example: suppose now OP makes $100k and cur...
by ERISA Stone
Wed Jun 28, 2017 10:16 am
Forum: Personal Consumer Issues
Topic: Traveling with 5 and 2 Year Old from Atlanta to Orlando - Is It Worth Flying?
Replies: 46
Views: 2007

Re: Traveling with 5 and 2 Year Old from Atlanta to Orlando - Is It Worth Flying?

Some advice. If you can pick when to go September is a great time right after Labor Day during the week. Why, weather a little better, smaller lines and better prices. I did this with my kids for years living in South FL. Summertime is painful for Disney 98 degrees and waiting in line for 1 hr plus...
by ERISA Stone
Wed Jun 28, 2017 10:14 am
Forum: Personal Consumer Issues
Topic: Traveling with 5 and 2 Year Old from Atlanta to Orlando - Is It Worth Flying?
Replies: 46
Views: 2007

Re: Traveling with 5 and 2 Year Old from Atlanta to Orlando - Is It Worth Flying?

There is absolutely no way I would fly (instead of drive) from Atlanta to Orlando, with or without kids. I think this would be a bad decision for many reasons... - I'm not sure how you are coming up with 9.5 hours. Google says this is only a 6hr drive. Leave home @ 9am after the kids have breakfast...
by ERISA Stone
Wed Jun 28, 2017 8:57 am
Forum: Personal Consumer Issues
Topic: Traveling with 5 and 2 Year Old from Atlanta to Orlando - Is It Worth Flying?
Replies: 46
Views: 2007

Traveling with 5 and 2 Year Old from Atlanta to Orlando - Is It Worth Flying?

We are taking the kids to Disney this year for the first time from metro Atlanta. Including bathroom breaks and eating, I anticipate it will be about a 9.5-hour drive. My wife and I are considering flying down so that we're not stuffed in the car for so long. It seems flying would save us about 3.5-...
by ERISA Stone
Tue Jun 27, 2017 9:33 am
Forum: Personal Finance (Not Investing)
Topic: Realtor fee negotiations
Replies: 27
Views: 2651

Re: Realtor fee negotiations

Something you'd want to consider: Real estate agents are going to work for their own interest above and beyond yours. If you're giving them....say 3% and the aggressive seller down the street really, really wants to sell now, so put a 10% commission in place and everyone else is at 6%, who is getti...
by ERISA Stone
Mon Jun 26, 2017 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Solo 401k - rectifying excess funds addition - CPA is confused
Replies: 17
Views: 1187

Re: Vanguard Solo 401k - rectifying excess funds addition - CPA is confused

I'm not going to speak to the payroll side because I'm not quite sure what your payroll company was attempting to do. I'm with Spirit here. The employee elected an $18k deferral, and $18k was deposited to her account, timely it appears. There is no excess contribution. There is no annual additions v...