Search found 8877 matches

by Spirit Rider
Mon Oct 22, 2018 9:50 am
Forum: Investing - Help with Personal Investments
Topic: HSA eligibility if two health insurance?
Replies: 6
Views: 349

Re: HSA eligibility if two heal insurance?

If your wife enrolls in a general purpose FSA/HRA, it will make you ineligible for HSA contributions. If you are talking about both of you having plans covering you both: Many employers will require you to pay a substantial "fine" to cover a spouse who has coverage availble through their employer. T...
by Spirit Rider
Mon Oct 22, 2018 8:46 am
Forum: Personal Finance (Not Investing)
Topic: 1099 for Solo 401k
Replies: 9
Views: 758

Re: 1099 for Solo 401k

I am assuming the locum work is a physician performing professional services. It is a common myth that an LLC provides liability protection is such situations. Personal services provided by the owner(s) of an LLC receive little to no liability protection. Unless you have the extended trappings of a ...
by Spirit Rider
Mon Oct 22, 2018 8:23 am
Forum: Investing - Help with Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2128

Re: Avoiding excess HSA contributions.

What might have confused you is that you can return excess HSA/IRA contributions and recharacterize IRA contributions by the tax filing deadline including extensions, but you only have until the tax filing deadline not including extensions to make HSA/IRA contributions.
by Spirit Rider
Sun Oct 21, 2018 11:15 pm
Forum: Investing - Help with Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2128

Re: Avoiding excess HSA contributions.

Other than one notifying the IRS that you didn't meet the last month rule, how would the IRS know that you weren't eligible for the HSA on the next December 1st? Does the employer send the IRS some kind of statement? Does a medical service provider send the IRS proof of a qualified medical expense ...
by Spirit Rider
Sun Oct 21, 2018 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2128

Re: Avoiding excess HSA contributions.

There is nothing elective about the last month rule. Any contribution exceeding your prorated contribution limit is automatically deemed to be using the last month rule where available. There is no ability to decline this. As indicated by the quoted IRS guidance, there is no ability to return non-ex...
by Spirit Rider
Sun Oct 21, 2018 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Gift Tax
Replies: 10
Views: 521

Re: 529 Gift Tax

It is the source of the funds and whether you are in a community property state that determine if you need to file Form 709 for a couple to gift split contributions. If the contributions are from a joint account or you live in a community property state, no Form 709 needs to be filled by a couple fo...
by Spirit Rider
Sun Oct 21, 2018 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Investing via LLC or S Corp - is there a self employment tax?
Replies: 6
Views: 458

Re: Investing via LLC or S Corp - is there a self employment tax?

There a very few facts and circumstances where it makes sense to invest through an LLC or S-Corp. What exactly are you trying to accomplish?
by Spirit Rider
Sun Oct 21, 2018 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Where would you go for financial guidance if you win the Megamillions?
Replies: 188
Views: 16845

Re: Where would you go for financial guidance if you win the Megamillions?

The science definition is 10 9 = 1,000,000,000. For example, Megaohms, Megahertz, etc... The IT definition is 220 = 1,048,576. For example, Megabyte, Megabit. etc... No, it's: Mega = 10 6 = 1,000,000 Giga = 10 9 = 1,000,000,000 Yup, you would have thought I would have notice the mistake when it was...
by Spirit Rider
Sun Oct 21, 2018 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Where would you go for financial guidance if you win the Megamillions?
Replies: 188
Views: 16845

Re: Where would you go for financial guidance if you win the Megamillions?

Mega Millions is definitely not a misnomer. The primary definition of Mega is something that is great, huge or a large amount. For example, mega deal, Megastar, Mega Millions, etc... The science definition is 10 9 = 1,000,000,000. For example, Megaohms, Megahertz, etc... The IT definition is 2 20 = ...
by Spirit Rider
Sun Oct 21, 2018 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2128

Re: Avoiding excess HSA contributions.

Excellent help as usual, Spirit Rider. Perhaps it would be wise to file an extension for a tax year you are claiming the last month rule for? Then if you lost your HDHP before October, you request a return of contributions and use the pro-rata rule. If you still have your HDHP mid-October, there is...
by Spirit Rider
Sun Oct 21, 2018 8:58 am
Forum: Investing - Help with Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2128

Re: Avoiding excess HSA contributions.

4) If you make excess contributions, mechanically speaking how are those fees/taxes paid? I imagine you'd pay via your current tax return...or in the case of violating "last month rule" you may have to amend your previous tax return? I’m not sure where you got the 10% fee from. You can either withd...
by Spirit Rider
Sun Oct 21, 2018 8:22 am
Forum: Investing - Help with Personal Investments
Topic: 529 Question - reversing a superfund in the same calendar year?
Replies: 10
Views: 619

Re: 529 Question - reversing a superfund in the same calendar year?

Slight correction to the above. The excess HSA contribution can be removed within the current year just like the IRA. Yes, that is true for both HSAs and 529s. There in fact can be excess contributions to a 529. It only applies when contributions cause the balance to exceed the maximum plan limit. ...
by Spirit Rider
Sat Oct 20, 2018 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Depositing Cash if it was gifted?
Replies: 113
Views: 6924

Re: Depositing Cash if it was gifted?

I don't know why people still think it is a problem to deposit >= $10K in cash. It most definitely will generate a CTR. However, do you realize that there are > seven figures of CTRs every year? It is a non-issue for the vast majority of people. If you have not already been flagged for automatic rev...
by Spirit Rider
Sat Oct 20, 2018 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Where would you go for financial guidance if you win the Megamillions?
Replies: 188
Views: 16845

Re: Where would you go for financial guidance if you win the Megamillions?

I would not sign the back of the ticket. I'd see if I could set up some kind of legal loophole that would let me stay anonymous. As of this year there is precedence in at least one non-anonymous state for retaining your anonymity when claimed by a trust even if you sign the ticket. This was a $500M...
by Spirit Rider
Sat Oct 20, 2018 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Do Any Annuities Offer a "Free Lunch"?
Replies: 21
Views: 1960

Re: Do Any Annuities Offer a "Free Lunch"?

Run from this parasitic Frenemy. The short answer to the thread title is absolutely not in the accumulation phase and most certainly not the one they are recommending. In early retirement one could make the case for Multi-Year Guaranteed Annuities (MYGAs) to supplement your pension to cover your fix...
by Spirit Rider
Sat Oct 20, 2018 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: 529 Question - reversing a superfund in the same calendar year?
Replies: 10
Views: 619

Re: 529 Question - reversing a superfund in the same calendar year?

HSA and 529 contributions are not the same as IRA contributions. There is no way to unwind an HSA contribution once made. To my knowledge there is no way to unwind a 529 contribution. I believe you will have to file Form 709 and claim them as gifts. From 26 U.S. Code § 529 - Qualified tuition progra...
by Spirit Rider
Sat Oct 20, 2018 8:47 am
Forum: Investing - Help with Personal Investments
Topic: HSA contributions
Replies: 3
Views: 360

Re: HSA contributions

If you are maximizing all other tax-advantaged accounts. You should be investing 100% and paying qualified medical expenses out-of-pocket

If not, you should project your likely expenses, retain that in cash and invest the balance.

Any minimum cash balance requirements may factor in.
by Spirit Rider
Sat Oct 20, 2018 8:38 am
Forum: Personal Finance (Not Investing)
Topic: 1099 and W2 from the same employer
Replies: 11
Views: 1084

Re: 1099 and W2 from the same employer

They are engaged in a commercial trade or business with the intent to make a profit.

They are absolutely their own company. The size or scope does not matter.
by Spirit Rider
Sat Oct 20, 2018 8:37 am
Forum: Investing - Help with Personal Investments
Topic: 529 Question - reversing a superfund in the same calendar year?
Replies: 10
Views: 619

Re: 529 Question - reversing a superfund in the same calendar year?

This will be a non-qualified 529 distribution. The earnings on the contributions will be subject to a 10% penalty and ordinary income taxes. Since it has been a short time frame the earnings percentage should be modest, but maybe a significant dollar amount given the large contributions. It is not a...
by Spirit Rider
Fri Oct 19, 2018 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 and W2 from the same employer
Replies: 11
Views: 1084

Re: 1099 and W2 from the same employer

A company=corporation to me. This is a false equivalency that you don't get to make up as you go along. A corporation is a company, but a company most definitely does not have to be a corporation. A company is any business entity that offers products and/or services. This includes a sole proprietor...
by Spirit Rider
Fri Oct 19, 2018 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 and W2 from the same employer
Replies: 11
Views: 1084

Re: 1099 and W2 from the same employer

There is more work with having a company. You need to incorporate. You need to file state (unless in a few states) and Federal returns. If you just get a 1099 in your name, it goes on your personal taxes. If you have federal, state and local taxable business income. You need to file tax returns reg...
by Spirit Rider
Fri Oct 19, 2018 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) or SEP IRA with Employer's 401(k) maxed?
Replies: 3
Views: 337

Re: Solo 401(k) or SEP IRA with Employer's 401(k) maxed?

It doesn't matter whether the employer health insurance plan is good or bad. The Self-employed health insurance deduction is only available if neither spouse is eligible for an employer group health insurance plan.
by Spirit Rider
Thu Oct 18, 2018 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) or SEP IRA with Employer's 401(k) maxed?
Replies: 3
Views: 337

Re: Solo 401(k) or SEP IRA with Employer's 401(k) maxed?

You will want to adopt and contribute to a one-participant 401k and not a SEP IRA. The SEP IRA will interfere with the Backdoor Roth. The business adopts the one-participant 401k plan and each of you open accounts under that plan. Total employer contributions can not be greater than 25% of plan tota...
by Spirit Rider
Thu Oct 18, 2018 6:53 am
Forum: Personal Finance (Not Investing)
Topic: Approach to rescinding a job acceptance
Replies: 50
Views: 4093

Re: Approach to rescinding a job acceptance

I have known several occasions when employers have recinded job offers after the individual gave their notice. One time a good colleague of mine had a job offer recinded the Friday before the week he was due to start. Lucky for him, he was valuable and the company we were at still gave him the count...
by Spirit Rider
Wed Oct 17, 2018 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Draft IRS 1040 & schedules 1-6, & Sch A links
Replies: 3
Views: 660

Re: Draft IRS 1040 & schedules 1-6, & Sch A links

With the exception of Schedule A, this is not exactly breaking news. There have been exhaustive threads on the subject. The Form 1040 and numbered Schedules have been out for more than two months. The Form 1040 Instructions have been out almost three weeks. Schedule A + Instructions were the only on...
by Spirit Rider
Wed Oct 17, 2018 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) Questions (and sanity check)
Replies: 25
Views: 1725

Re: Solo 401(k) Questions (and sanity check)

1. $30,000 gross revenue (assume no business expenses just to make it easier). 2. One half of SE tax (7.65%) would be $2,295. The 12.4% component of the 15.3% SE tax does not apply if your If your W-2 Box 3 Social Security (SS) earnings + (business profit * 92.35%) are > the SS maximum wage base (2...
by Spirit Rider
Wed Oct 17, 2018 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: HSA contribution for divorced non-custodial parent
Replies: 13
Views: 719

Re: HSA contribution for divorced non-custodial parent

So, I am learning something new from this thread and now have a question. My twenty something son completed four years of military service and is now attending college. He is no longer my dependent for taxes. I added him to my health insurance by changing from individual plan to a self plus one. I ...
by Spirit Rider
Tue Oct 16, 2018 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Help Setting up Solo 401k
Replies: 6
Views: 437

Re: Help Setting up Solo 401k

The $60K was probably for 2017. The 2017 annual addition limit was $54K. The 2017 catch-up contribution limit was $6K for those >= age 50. For 2017, $54K + $6K = $60K. The 2018 annual addition limit is $55K. The 2018 catch-up contribution limit is also $6K for those >= age 50. For 2018, $55K + $6K =...
by Spirit Rider
Tue Oct 16, 2018 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Help Setting up Solo 401k
Replies: 6
Views: 437

Re: Help Setting up Solo 401k

1. Only pre-tax balances in traditional, SEP and SIMPLE IRA accounts on 12/31 interfere with a Backdoor Roth. 2. A default single member LLC is taxed as a sole proprietorship. A default multi-member LLC is taxed as a partnership. Either can elect to be treated as a QJV in a community property state....
by Spirit Rider
Mon Oct 15, 2018 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: ACA subsidy repayment for s-Corp owner
Replies: 10
Views: 710

Re: ACA subsidy repayment for s-Corp owner

It is very rare for any owner-only pass-thru business entity to have any need for and select accrual based accounting.
by Spirit Rider
Mon Oct 15, 2018 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: I401k Contribution Limits
Replies: 7
Views: 449

Re: I401k Contribution Limits

One participant 401k contributions are based in a self-employed individual's net self-employment earnings (business profit - 1/2 SE tax). The employee elective contributions can be up to 100% of net self-employment earnings up to (2018 = $18,500, 2019 = $19K. The employer contribution can be up to 2...
by Spirit Rider
Mon Oct 15, 2018 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: HSA contribution for divorced non-custodial parent
Replies: 13
Views: 719

Re: HSA contribution for divorced non-custodial parent

You can cover your children regardless if they are your tax dependents until they are 26. Once they are no longer tax dependents, you can not use the HSA to pay for their unreimbursed qualified medical expenses. However, at that point they become HSA eligible individuals and may open an HSA and make...
by Spirit Rider
Mon Oct 15, 2018 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: ACA subsidy repayment for s-Corp owner
Replies: 10
Views: 710

Re: ACA subsidy repayment for s-Corp owner

If you run the health insurance premiums though the the S-Corp. You still get to use the Self-employed health insurance deduction on the net premium (gross premium - actual eligible subsidy). This can be a recursive calculation that tax software calculates properly. If you exceed the 400% FPL cliff,...
by Spirit Rider
Mon Oct 15, 2018 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard won't return earnings with previous year ineligible contribution to Roth IRA
Replies: 5
Views: 764

Re: Vanguard won't return earnings with previous year ineligible contribution to Roth IRA

Vanguard and @retiredjg are correct. You can only return excess contributions and earnings if done by the tax filing deadline including extensions. For 2016 contributions this would have been ~10/15/2017. You will need to amend your 2016 tax return to report the excess contribution on Form 5329 subj...
by Spirit Rider
Sun Oct 14, 2018 10:51 am
Forum: Investing - Theory, News & General
Topic: Will rising inflation increase 401K and Roth contribution limits for 2019?
Replies: 29
Views: 7603

Re: Will rising inflation increase 401K and Roth contribution limits for 2019?

The September CPI was released October 11th. It is locked in and the compensation limit will be $280K, the 415c limit $56K and the 402g limit $19K.

The IRS just hasn't released the official numbers. I would expect them this coming week
by Spirit Rider
Sun Oct 14, 2018 10:49 am
Forum: Investing - Help with Personal Investments
Topic: 6 month Treasury Note: "Bond" or "Cash"?
Replies: 47
Views: 3721

Re: 6 month Treasury Note: "Bond" or "Cash"?

1) Bonds that are marketable securities are not principal protected unless retained until maturity. Savings Bonds are principal protected.
2) It depends what type of bond and whether you are talking about yields for individual bonds or in aggregate.
by Spirit Rider
Sat Oct 13, 2018 11:11 pm
Forum: Investing - Help with Personal Investments
Topic: 6 month Treasury Note: "Bond" or "Cash"?
Replies: 47
Views: 3721

Re: 6 month Treasury Note: "Bond" or "Cash"?

NYCwriter wrote:
Sat Oct 13, 2018 2:24 pm
Cash should be about max liquidity and least risk. Cash has no duration.
That may be your definition, but is not the standard accounting or accepted portfolio definitions.

There is no requirement that the "cash" portion of a portfolio have immediate liquidity, but it should be principal protected.
by Spirit Rider
Sat Oct 13, 2018 10:56 pm
Forum: Personal Finance (Not Investing)
Topic: Questions regarding 199A Rules
Replies: 5
Views: 448

Re: Questions regarding 199A Rules

The Section 199A QBI deduction threshold is based on your taxable income. Your actual QBI would be the lesser of your net self-employment earnings (bussiness - 1/2 SE tax) and your taxable Income. For example, with a net profit of $200K, your net self-employment earnings would be $189,361. With $8K ...
by Spirit Rider
Sat Oct 13, 2018 12:47 pm
Forum: Investing - Theory, News & General
Topic: Timing of non-sweep MM fund sale to cover t-bill purchase
Replies: 4
Views: 301

Re: Timing of non-sweep MM fund sale to cover t-bill purchase

indexfundfan wrote:
Sat Oct 13, 2018 12:13 pm
On the other hand, Fidelity's MMF appears to settle same day.
Actually, it is better than that. Fidelity's MMFs are considered settled cash. You can place buy orders and they will be sold automatically when those orders settle.
by Spirit Rider
Sat Oct 13, 2018 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: If I retire to a State that has no State taxes...
Replies: 46
Views: 7483

Re: If I retire to a State that has no State taxes...

If i retire to a State that has no state taxes, I wont pay any state taxes on my RMDs and long term capital gain that I exercise after moving to that state. Is that correct? If so, how long do I need to live in the state to be considered a resident and pay no state taxes on RMDs/capital gain? Keep ...
by Spirit Rider
Sat Oct 13, 2018 10:18 am
Forum: Personal Finance (Not Investing)
Topic: HSA
Replies: 3
Views: 404

Re: HSA

Some additional points. You can exclude individuals < age 25 at the beginning of the plan year. You can limit it to full-time employees only or you can set any arbitrary minimum average weekly number of hours worked/week or minimum number of months worked/year. There is no minimum reimbursement amou...
by Spirit Rider
Sat Oct 13, 2018 9:53 am
Forum: Personal Finance (Not Investing)
Topic: HSA
Replies: 3
Views: 404

Re: HSA

You and your employees would be far better off with a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), sometimes called a Small Business HRA. This has only been available for a couple of years. The administrative costs are reasonable. For 2018 this allows you to provide any fixed ...
by Spirit Rider
Sat Oct 13, 2018 9:29 am
Forum: Investing - Theory, News & General
Topic: Timing of non-sweep MM fund sale to cover t-bill purchase
Replies: 4
Views: 301

Re: Timing of non-sweep MM fund sale to cover t-bill purchase

On a non-margin account, many platforms will not accept the Treasury purchase request unless at least the mutual fund sale request has been accepted. Some may not accept until the mutual fund sale has settled. Unfortunately, you can not be spared. Either post the specific brokerage and someone may k...
by Spirit Rider
Sat Oct 13, 2018 8:59 am
Forum: Personal Finance (Not Investing)
Topic: If I retire to a State that has no State taxes...
Replies: 46
Views: 7483

Re: If I retire to a State that has no State taxes...

If i retire to a State that has no state taxes, I wont pay any state taxes on my RMDs and long term capital gain that I exercise after moving to that state. Is that correct? Yes, I believe that's correct if it's one of the 7 states listed above. One caveat based on your use of the term "exercise". ...
by Spirit Rider
Sat Oct 13, 2018 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Source of Funds - HSA ?
Replies: 3
Views: 329

Re: Source of Funds - HSA ?

A couple of points. First, you should almost never do the once/lifetime rollover from a traditional IRA to an HSA unless you have no after-tax options for direct contributions. The latter increases your tax advantaged space, the former does not. Second, be aware that such a rollover has the entire f...
by Spirit Rider
Fri Oct 12, 2018 6:08 pm
Forum: Investing - Help with Personal Investments
Topic: solo 401(k) and tIRA with low earned income
Replies: 4
Views: 288

Re: solo 401(k) and tIRA with low earned income

It is not clear what you are asking. There are different metrics: The Self-employed health insurance deduction can not exceed your net self-employment earnings (business profit - 1/2 SE tax) - one-participant 401k employee deferrals and employer contributions. Making designated Roth contributions to...
by Spirit Rider
Fri Oct 12, 2018 11:21 am
Forum: Investing - Help with Personal Investments
Topic: over 55k in 401k with profit-sharing...
Replies: 14
Views: 613

Re: over 55k in 401k with profit-sharing...

Profit Sharing is an employer contribution just like employer match. Of course profit sharing is not matched.

Does it really matter if your employer contributions up to the annual addition limit are employer matches or profit sharing.
by Spirit Rider
Fri Oct 12, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: over 55k in 401k with profit-sharing...
Replies: 14
Views: 613

Re: over 55k in 401k with profit-sharing...

I think many plan sponsors won't let you go over, but I'm not sure what happens if you do. Nothing good I suspect. It is the plan's responsibility to ensure the annual addition limit is not exceeded. The IRS has issued very specific guidance on what contributions should be returned when exceeding a...
by Spirit Rider
Fri Oct 12, 2018 10:48 am
Forum: Investing - Help with Personal Investments
Topic: over 55k in 401k with profit-sharing...
Replies: 14
Views: 613

Re: over 55k in 401k with profit-sharing...

If you are 50 years old or older, you can contribute up to an additional $6,000 (or $61,000 total). It is important to understand that the annual addition limit does not change if you are >= 50. It is just that catch-up contributions are not included in the annual addition limit. The additional $6,...
by Spirit Rider
Fri Oct 12, 2018 8:23 am
Forum: Investing - Help with Personal Investments
Topic: 6 month Treasury Note: "Bond" or "Cash"?
Replies: 47
Views: 3721

Re: 6 month Treasury Note: "Bond" or "Cash"?

As has been pointed out, there are certain precise definitions for cash equivalents: Money market funds must maintain a weighted average maturity (WAM) of 60 days or less. Accounting rules for businesses define them as having a maturity of three months or less. When it comes to a personal portfolio,...