Search found 10004 matches

by Spirit Rider
Thu Mar 19, 2015 11:03 am
Forum: Personal Investments
Topic: Roth IRA MAGI and Taxes
Replies: 27
Views: 2302

Re: Roth IRA MAGI and Taxes

According to the IRS the income limit of a married couple filing jointly is 181k in order to contribute to a Roth IRA. What if the combined income was originally 200k+, but after contributing to both employER and employEE SEP-IRA , their taxable income drops down below 181k? Can we still contribute...
by Spirit Rider
Thu Mar 19, 2015 10:47 am
Forum: Personal Investments
Topic: Extending Tax Filing and IRA/SEP Contributions
Replies: 3
Views: 748

Re: Extending Tax Filing and IRA/SEP Contributions

Can you have an IRA and a SEP-IRA? I was told we could add a Roth-IRA to a SEP-IRA, but not an IRA. Yes, you can have a SEP IRA and a traditional IRA. However, contributing to a SEP IRA makes you an active participant in an employer sponsored retirement plan. This causes you to be income limited fo...
by Spirit Rider
Thu Mar 19, 2015 9:00 am
Forum: Personal Finance (Not Investing)
Topic: Roth 401k Rollover + Switch to SEP
Replies: 13
Views: 1231

Re: Roth 401k Rollover + Switch to SEP

Would a recommended retirement savings strategy be the following: HSA - $3,350 Roth IRA - $5,500 Solo 401k - 25% of Net Profit + $18,000 Taxable Account - Any extra money saved This looks like a great plan. You can adjust the traditional/Roth 401k deferral mix (provided the plan supports Roth). Tra...
by Spirit Rider
Wed Mar 18, 2015 9:21 pm
Forum: Personal Investments
Topic: BrokerageLink in 403b vs. IRA
Replies: 6
Views: 1052

Re: BrokerageLink in 403b vs. IRA

I am also concerned about losing the protected advantage of 403b account in terms of creditors. 403b plans are not 100% guaranteed to be ERISA qualified. The vast majority are, but it is not guaranteed. Before deciding, you should explicitly verify with your plan administrator. In writing if possib...
by Spirit Rider
Wed Mar 18, 2015 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: Roth 401k Rollover + Switch to SEP
Replies: 13
Views: 1231

Re: Roth 401k Rollover + Switch to SEP

Are you sure that you have great funds at Principal. They may have no additional fees. but 401k plans run by insurance companies typically have funds with very high expense ratios. A Solo 401k provides exactly the same employer contribution capabilities as a SEP IRA, but adds the employee deferral (...
by Spirit Rider
Wed Mar 18, 2015 10:46 am
Forum: Personal Investments
Topic: 529 and Grandparents
Replies: 9
Views: 1494

Re: 529 and Grandparents

You are obligated to self-report the required income and assets on FSFSA and CCS just like are required to self-report on your tax returns.
by Spirit Rider
Wed Mar 18, 2015 7:36 am
Forum: Personal Investments
Topic: 529 and Grandparents
Replies: 9
Views: 1494

Re: 529 and Grandparents

A grandparent 529 is not seen by either FAFSA or CSS . As mentioned, once it is used, it is counted as student income for the following year. Since a student has an income allowance of $6260, if the student has not earned this much, a withdrawl from tha grandparent 529 to bring income to that level...
by Spirit Rider
Tue Mar 17, 2015 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: Exceeding the $53k contribution limit. Options?
Replies: 18
Views: 4220

Re: Exceeding the $53k contribution limit. Options?

So I did my first Mega Back Door Roth this year but miscalculated my contributions. If I set my contribution amount to the lowest amount possible but still enough to receive my full company match, I will have contributed $58k by the end of the year (and only $14k into my 401k pre-tax amount). Or if...
by Spirit Rider
Tue Mar 17, 2015 5:00 pm
Forum: Personal Investments
Topic: 529 as a gift
Replies: 4
Views: 734

Re: 529 as a gift

You would be better off having the friend open the 529 themselves and then you can make the contributions directly yourself. Anyone can make contributions to 529 accounts owned by others.
by Spirit Rider
Tue Mar 17, 2015 4:52 pm
Forum: Personal Investments
Topic: US ARMY Thrift Savings Plan (TSP) - Roth 401k
Replies: 14
Views: 2229

Re: US Army Thrift Savings Plan (TSP) - Question about After

OP, I suggest you change the title to US ARMY Thrift Savings Plan (TSP) - Roth 401k for a reason that will become apparent. There are two items described in the WiKi link from LadyGeek that might not jump out at you. If this family member is deployed to a combat zone they have two great options: The...
by Spirit Rider
Mon Mar 16, 2015 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: HSA - Excess Contributions
Replies: 4
Views: 743

Re: HSA - Excess Contributions

There is another option if the 6% excise tax on the excess contribution is less than the fee. This is likely unless you miscalculated by a large amount. I believe HSA Bank charges $25 for excess contribution correction. That means if the excess contribution is <= $416.67, you will be better off with...
by Spirit Rider
Mon Mar 16, 2015 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: i401k vs SEP...
Replies: 60
Views: 4420

Re: i401k vs SEP...

Well I WANT to do a max contribution, so I should select 25%? Why have people in this thread been saying 19-20%? I have not had time to read through the p560 yet, I was hoping I wouldn't have to (assuming this calculator can be trusted). Yes, you select 25% for maximum contribution rate. The 19-20%...
by Spirit Rider
Mon Mar 16, 2015 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: i401k vs SEP...
Replies: 60
Views: 4420

Re: i401k vs SEP...

You should be ok using the calculators given your fact pattern, but the calculators are pretty simple minded. They assume there is only self-employment income, when a large percentage of people's self-employment income is in addition to W2 employment. Also, they do not consider step 12 from IRS Publ...
by Spirit Rider
Mon Mar 16, 2015 2:51 pm
Forum: Personal Investments
Topic: Credit Report Very Low For No Reason? Fixing it?
Replies: 60
Views: 5143

Re: Credit Report Very Low For No Reason? Fixing it?

I am also doubting the 25 accounts requirement. My experience is that the mix of accounts and having more cards with low balances helped the low utilization rate of revolving accounts. My score has been helped by a mix of active credit cards and store cards, plus a mix of active/closed installment l...
by Spirit Rider
Mon Mar 16, 2015 11:56 am
Forum: Personal Finance (Not Investing)
Topic: maximum social security benefit
Replies: 17
Views: 2651

Re: maximum social security benefit

Here again, more very relevant information. With the fact pattern now available and assuming you are correct about your respective salaries, your respective benefits should be similar. One other possible difference is that you are referencing your SS benefit statement, which gives the benefits in to...
by Spirit Rider
Mon Mar 16, 2015 11:47 am
Forum: Personal Investments
Topic: Protect rollover IRA from potential lawsuit
Replies: 41
Views: 8207

Re: Protect rollover IRA from potential lawsuit

I think this is a topic where a little perspective should be applied. You did note that 45/50 states provide unlimited protection for IRAs against creditors. Even the notable exception of CA, provides protection to provide support in retirement for the individual, his spouse, dependents, and survivo...
by Spirit Rider
Mon Mar 16, 2015 11:17 am
Forum: Personal Finance (Not Investing)
Topic: maximum social security benefit
Replies: 17
Views: 2651

Re: maximum social security benefit

She's not married. She has worked longer than I have by about 4 years; however, I don't think if she is making around $80K NOW, and that doesn't count what the Firm takes out for health care - I don't THINK it's possible for her to get $3,500 in around 3 years. From what I understood, maximum earni...
by Spirit Rider
Mon Mar 16, 2015 10:49 am
Forum: Personal Finance (Not Investing)
Topic: SEP. Over contribution
Replies: 4
Views: 999

Re: SEP. Over contribution

Hello all. I am a sole proprietor (employer and employee) with a SEP. I exceeded my contribution limits by about $3,600 for the 2014 tax year (all as the employer). Wondering if I can somehow change the excess contribution to the 2015 tax year? Thanks for the input. Yes, you can carry the excess co...
by Spirit Rider
Mon Mar 16, 2015 9:05 am
Forum: Personal Investments
Topic: Protect rollover IRA from potential lawsuit
Replies: 41
Views: 8207

Re: Protect rollover IRA from potential lawsuit

I don't believe the case you cite is on point. This case is narrow in scope to a prenuptial agreement. I don't believe this has any applicability in general. Here is one quote I found from the Journal of Accountancy on federal bankruptcy protection: The extent of the bankruptcy exclusion for an IRC ...
by Spirit Rider
Sun Mar 15, 2015 11:41 pm
Forum: Personal Investments
Topic: Protect rollover IRA from potential lawsuit
Replies: 41
Views: 8207

Re: Protect rollover IRA from potential lawsuit

Have to admit I'm confused. Maybe I'm reading the posts wrong but Spirit Rider seems to say that rollover of 401k to tIRA (with specified conditions) have ERISA protection while Alan S says it does not. With no insult intended to either, is there some more authoritative source than the LA Times tha...
by Spirit Rider
Sun Mar 15, 2015 8:12 pm
Forum: Personal Investments
Topic: Protect rollover IRA from potential lawsuit
Replies: 41
Views: 8207

Re: Protect rollover IRA from potential lawsuit

^ Spirit Rider, thanks for the clarification. To me, it's fascinating that there appears to be an awful lot of varying interpretations out there: http://www.latimes.com/la-ira-story3-story.html Even in spending quite a bit of time searching for clear definitions, there's confusion regarding: which ...
by Spirit Rider
Sat Mar 14, 2015 9:14 pm
Forum: Personal Investments
Topic: Protect rollover IRA from potential lawsuit
Replies: 41
Views: 8207

Rollover IRA assets are protected by ERISA

This thread has gone down a tangent about personal IRA asset protection. However, Rollover IRAs receive full ERISA protections. It needs to be rolled over to named Rollover IRA. The assets must not be comingled with personal IRA assets by rollover or contribution. That's it case closed.
by Spirit Rider
Sat Mar 14, 2015 8:55 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k & tax filing - Employee/employer contributions
Replies: 4
Views: 630

Re: Solo 401k & tax filing - Employee/employer contributions

Generally, the contribution deadline for self-employed employee salary deferral is not 12/31, it is the same deadline as for employer profit sharing. This is by your tax filing deadline including extensions. The written employee salary deferral election must occur by 12/31. This is not sent to the I...
by Spirit Rider
Sat Mar 14, 2015 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: i401k vs SEP...
Replies: 60
Views: 4420

Re: i401k vs SEP...

So I am going to setup a SEP with Vanguard, but they said I need to calculate on my own exactly what my max contribution will be. Are there online calculators that can help me do this so I get it exactly right? I'm in similar situation as the OP, so hopefully you don't mind me piggybacking off the ...
by Spirit Rider
Sat Mar 14, 2015 5:29 pm
Forum: Personal Investments
Topic: SEP IRA or SIMPLE (complicated slightly)
Replies: 17
Views: 7473

Re: SEP IRA or SIMPLE (complicated slightly)

texasdmd wrote:Reducing employee's pay to compensate for SEP IRA contributions would not look favorably to the employees or to the IRS?
I'm not sure if it would be the IRS or DOL or both.
by Spirit Rider
Sat Mar 14, 2015 12:10 pm
Forum: Personal Investments
Topic: Confused with Social Security website calculation.
Replies: 5
Views: 1018

Re: Confused with Social Security website calculation.

Yes they assume you continue working at your current income. If it is the retirement estimator, you can add additional estimates while setting your future salary (even to $0). If you want more control to set both the actual date you stop working and year you claim benefits, you can download the AnyP...
by Spirit Rider
Sat Mar 14, 2015 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Individual 401(k) questions.
Replies: 8
Views: 1355

Re: Individual 401(k) questions.

4) 401k employee salary deferrals can be made when the earlier of services provided or payments received. However, as a cash basis company, it is as JDDS said. You would have to remove excess contributions based on any money not actually received in the tax year. 5) There is no requirement to termin...
by Spirit Rider
Sat Mar 14, 2015 11:41 am
Forum: Personal Investments
Topic: SEP IRA or SIMPLE (complicated slightly)
Replies: 17
Views: 7473

Re: SEP IRA or SIMPLE (complicated slightly)

Something to consider: can you reduce the employees pay (or future raises) to somewhat compensate for the money you are putting in their retirement account? Reducing employee's pay in conjunction with starting up a SEP IRA to do an end run around equal percentage contribution requirements would not...
by Spirit Rider
Sat Mar 14, 2015 10:50 am
Forum: Personal Investments
Topic: Help! 401k Refund for Highly Compensated Employee
Replies: 32
Views: 18269

Re: Help! 401k Refund for Highly Compensated Employee

Don't forget about the 2x rule on the tests. Up to 2%, the maximum HCE limit is 2x the NHCE limit. So if the NHCE ACP rate were 1.5%, the HCE max rate would be 3% (2x1.5%), not 3.5%. I didn't know about that test method. That might explain stoutglass's < 1% result. If I understand you, If they had ...
by Spirit Rider
Sat Mar 14, 2015 10:24 am
Forum: Personal Investments
Topic: Help! 401k Refund for Highly Compensated Employee
Replies: 32
Views: 18269

Re: Help! 401k Refund for Highly Compensated Employee

This is how I understand the Actual Deferral Percentage (ADP) test and Actual Contribution Percentage (ACP) test are run. The ADP tests the employee salary deferrals and the ACP tests the combination of the employer elective match/non-elective and employee after-tax contributions. ADPs and ACPs are ...
by Spirit Rider
Sat Mar 14, 2015 12:33 am
Forum: Personal Investments
Topic: Help! 401k Refund for Highly Compensated Employee
Replies: 32
Views: 18269

Re: Help! 401k Refund for Highly Compensated Employee

It is really unconscionable that more companies do not do mid-course corrections. My last company limited HCE contributions to levels that would not result in excess deferrals. Prior to each quarter they sent out an announcement to all HCEs of the limit for that quarter. In this day in age it must b...
by Spirit Rider
Fri Mar 13, 2015 6:35 pm
Forum: Personal Investments
Topic: Maxed 457 & Roth IRA...Traditional or Roth 401k Next?
Replies: 15
Views: 1688

Re: Maxed 457 & Roth IRA...Traditional or Roth 401k Next?

Should I still consider the Roth if I may get taxed 4% to 6% more (CA tax)? As if it isn't already a complicated decision matrix. State taxes represents an additional complication. That piece of the question has to do with whether you will still be in CA in retirement. Federal tax is easier because...
by Spirit Rider
Fri Mar 13, 2015 11:50 am
Forum: Personal Investments
Topic: Maxed 457 & Roth IRA...Traditional or Roth 401k Next?
Replies: 15
Views: 1688

Re: Maxed 457 & Roth IRA...Traditional or Roth 401k Next?

People make a fundamentally flawed analysis when they use effective tax rate in retirement. The fatal flaw in this conclusion is treating it as a either/or decision. As is in this case it is a matter of incremental contributions, which is another way of saying marginal. If you put half of your contr...
by Spirit Rider
Fri Mar 13, 2015 10:15 am
Forum: Personal Investments
Topic: Maxed 457 & Roth IRA...Traditional or Roth 401k Next?
Replies: 15
Views: 1688

Re: Maxed 457 & Roth IRA...Traditional or Roth 401k Next?

With an AGI of $33K, personal exemption of $3,950 and a standard deduction of $6300, your taxable income is just $22,250. Your marginal tax rate is 15%, with $15K headroom to the 25% bracket. I would most definitely use a Roth 401k instead of traditional with a 15% marginal tax rate. With being this...
by Spirit Rider
Fri Mar 13, 2015 12:17 am
Forum: Personal Consumer Issues
Topic: What won't you pay with Credit Card?
Replies: 77
Views: 15341

Re: What won't you pay with Credit Card?

if it is under $10 and <=2% cashback, I use whatever is more convenient. This removes the noise from my credit card statements.
by Spirit Rider
Fri Mar 13, 2015 12:11 am
Forum: Personal Finance (Not Investing)
Topic: How to ask someone to be executor/trustee?
Replies: 21
Views: 3258

Re: How to ask someone to be executor/trustee?

Just so you know, states having varying degrees of hoops to jump through for non-resident executors/trustees. You should review those ahead of time and not have them surprised when the time comes.
by Spirit Rider
Thu Mar 12, 2015 2:12 pm
Forum: Personal Investments
Topic: Solo/Individual 401K + Designated Roth questions
Replies: 23
Views: 1629

Re: Solo/Individual 401K + Designated Roth questions

-Down the road can I rollover the Roth401K to my regular Roth IRA if the Individual401K plan is still active? First, what the IRS regulations allows for 401k in-service rollovers: Vested elective Match or profit sharing employer non-safe harbor contributions and earnings. After-tax contributions an...
by Spirit Rider
Thu Mar 12, 2015 10:18 am
Forum: Personal Investments
Topic: Any downsides to rolling over a 401k to a solo 401k?
Replies: 4
Views: 580

Re: Any downsides to rolling over a 401k to a solo 401k?

Some small points on the ERISA protections. As has been pointed out Solo 401k plans are not ERISA. So the only way to maintain ERISA protection is to roll it over to another 401k or a Rollover IRA. ERISA funds alone in a rollover IRA, continue to receive ERISA protection. Once you roll these funds i...
by Spirit Rider
Thu Mar 12, 2015 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Medicare - already covered but turning 65 ?
Replies: 11
Views: 1591

Re: Medicare - already covered but turning 65 ?

While Medicare Part B does have a 10% penalty for each 12 month period after 65 when you do not enroll at 65, the penalty does not apply if you have certified coverage during that time.
by Spirit Rider
Wed Mar 11, 2015 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare - already covered but turning 65 ?
Replies: 11
Views: 1591

Re: Medicare - already covered but turning 65 ?

Here are the issues as I understand them. You are automatically enrolled in Medicare Part A at 65 if you begin SS <= 65. If you begin SS > 65, you are automatically enrolled in Medicare Part A retroactively up six months earlier, but not before 65. If you are not collecting Social Security by 65, yo...
by Spirit Rider
Wed Mar 11, 2015 2:06 pm
Forum: Personal Investments
Topic: 1099 Employee for 1+ Year?
Replies: 10
Views: 1346

Re: 1099 Employee for 1+ Year?

Dale_G is correct that you can't just take any position and make them an independent contractor. However, those quotes can be taken out of context and treated too literally. Every contractor has to be told at some level what will be done and how to do it. For example: You could certainly hire an ind...
by Spirit Rider
Tue Mar 10, 2015 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: i401k vs SEP...
Replies: 60
Views: 4420

Re: i401k vs SEP...

If the max contribution for a SEP is 25% of income, then I will be around 25k, which is a lot less than the 50k in a i401k :( Did I hear about some kind of profit sharing that lets you contribute more? Again I am single employee LLC if that matters. A maximum SEP IRA contribution is 25% of compensa...
by Spirit Rider
Tue Mar 10, 2015 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: i401k vs SEP...
Replies: 60
Views: 4420

Re: i401k vs SEP...

Since you paid taxes on the conversion, this is after-tax money. Once you have reached the five year limit, you are allowed to take the conversion dollars out without penalty or tax. Once you reach 59 1/2 you can take the earnings out without penalty or tax.
by Spirit Rider
Tue Mar 10, 2015 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Form an S-Corp to save on state income taxes?
Replies: 9
Views: 864

Re: Form an S-Corp to save on state income taxes?

Many states treat S corporations for federal income tax as S corporations for state income tax. The majority of those states also treat S corporation revenue, expenses, and deductions and resulting net profits the same as the IRS. Both compensation and distributions are reported and taxed on the ind...
by Spirit Rider
Tue Mar 10, 2015 11:19 am
Forum: Personal Finance (Not Investing)
Topic: i401k vs SEP...
Replies: 60
Views: 4420

Re: i401k vs SEP...

1.) ] IRAs and employer plans (SEP IRA and Solo 401k are employer plans) have different contribution spaces. There are income limits on traditional IRA deductions if you are an active participant in an employer plan. 3.) Most Solo 401k plans do not allow loans, but I believe TF Ameritrade does. A So...
by Spirit Rider
Tue Mar 10, 2015 10:31 am
Forum: Personal Finance (Not Investing)
Topic: solo 401k that allows loans
Replies: 8
Views: 1207

Re: solo 401k that allows loans

Greatness wrote:Fidelity allows loans. Up to the max, 50k.
I do not believe this is true for Fidelity Solo 401k plans.
by Spirit Rider
Mon Mar 09, 2015 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: HDHP and HSA
Replies: 5
Views: 1417

Re: HDHP and HSA

There are generally two possible features that a high deductible plan may have that disqualifies it as a HDHP/HSA plan:
  1. Individual deductibles in a family plan that is less than the minimum family deductible.
  2. Payments allowed before deductible except for certain preventive and screening services.
by Spirit Rider
Sun Mar 08, 2015 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Maxing out 401K contributions
Replies: 1
Views: 559

Re: Maxing out 401K contributions

No, it must be deducted from your paycheck. Can you ask your Payroll department to make the maximum deduction for the remaining March payroll(s)?
by Spirit Rider
Sun Mar 08, 2015 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Statement questions
Replies: 2
Views: 556

Re: Social Security Statement questions

From the section below Your Estimated Benefits , How Your Benefits Are Estimated What we assumed — If you have enough work credits, we estimated your benefit amounts using your average earnings over your working lifetime. For 2014 and later (up to retirement age), we assumed you'll continue to work ...
by Spirit Rider
Sun Mar 08, 2015 11:51 am
Forum: Personal Consumer Issues
Topic: Replacing [Oil] Filters: Time vs. Usage
Replies: 41
Views: 6763

Re: Replacing [Oil] Filters: Time vs. Usage

Have you noticed that when JIFFY LUBE went into business they recommended changing the oil every 3,000 miles. Does that tell you something? What a rip off! If you want real unconscionable, try some car dealers still recommending oil changes at 3,000 miles when the owner's manual says 5,000, 7,500, ...