Search found 562 matches

by SuzBanyan
Sat Jun 12, 2021 8:18 am
Forum: Personal Finance (Not Investing)
Topic: Does getting a W2 each year allow me to delay RMDs from 401K?
Replies: 29
Views: 4166

Re: Is this RMD-avoidance loophole more commonly available than we think?

I would imagine the least common factor here is an employer willing to consider you as currently employed at age 72+ but not requiring you to work more than you want. The second least common factor is probably a 401k plan that allows incoming rollovers and has a fee structure that makes you want to ...
by SuzBanyan
Fri Jun 11, 2021 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: A young friend made a tax mistake - can it be undone?
Replies: 18
Views: 2665

Re: A young friend made a tax mistake - can it be undone?

Not only is there no particular tax issue with depositing a $50,000 check, I’m not even aware of any alternatives. What else could your young (but adult) friend have done to receive the gift? $15k/yr. towards the annual gift-tax exclusion. If the dad has a spouse, $30k/yr. Why does that matter? The...
by SuzBanyan
Thu Jun 10, 2021 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited rental property
Replies: 5
Views: 880

Re: Inherited rental property

Yes, your wife and sister will have to pay tax on the capital gains for the sale of the property, plus the recapture of the depreciation during the years they rented it. As a positive, they received rent for more than 2 years and the current crazy real estate market probably resulted in a higher net...
by SuzBanyan
Thu Jun 10, 2021 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Underestimated IRMAA
Replies: 53
Views: 5492

Re: Underestimated IRMAA

The cost of Medicare Supplement policies is aged based; expect higher premiums as you age. For my husband, age 71, his F plan (non deductible) and Part D prescription coverage, plus a theoretical maximum IRMAA would be under $800/ month. In contrast, my ACA HDHP would be about $950/month, and would ...
by SuzBanyan
Thu Jun 10, 2021 8:03 am
Forum: Personal Finance (Not Investing)
Topic: How massive of Roth conversions, given lopsided holdings post-retirement?
Replies: 63
Views: 4727

Re: How massive of Roth conversions, given lopsided holdings post-retirement?

If you are charitably inclined, don’t forget that starting at age 70.5, each spouse can make Qualified Charitable Contributions of up to $100,000 per year. The $2,000,000 already in Roth (which will also continue to grow) may be a sufficient legacy for you to leave to the next generation.
by SuzBanyan
Wed Jun 09, 2021 5:51 pm
Forum: Personal Consumer Issues
Topic: Idea: Buying a Car for Short-term rental and then Re-sell?
Replies: 29
Views: 1910

Re: Idea: Buying a Car for Short-term rental and then Re-sell?

If you decide to rent, make sure you understand the agency’s pet policies. Some may require the dog to remain in a crate whenever in the car.
by SuzBanyan
Wed Jun 09, 2021 11:27 am
Forum: Personal Finance (Not Investing)
Topic: COBRA under American Rescue Plan
Replies: 7
Views: 981

Re: COBRA under American Rescue Plan

KlangFool: Thanks for your thoughts. I have already received a reduction in my ACA, which is reflected in the lower range of my savings from 3 months of free COBRA. Unemployment is extremely unlikely; instead I expect that my income will be higher than estimated. I have certainly done crazier thing...
by SuzBanyan
Wed Jun 09, 2021 7:51 am
Forum: Personal Finance (Not Investing)
Topic: COBRA under American Rescue Plan
Replies: 7
Views: 981

Re: COBRA under American Rescue Plan

KlangFool: Thanks for your thoughts. I have already received a reduction in my ACA, which is reflected in the lower range of my savings from 3 months of free COBRA. Unemployment is extremely unlikely; instead I expect that my income will be higher than estimated. I have certainly done crazier things...
by SuzBanyan
Tue Jun 08, 2021 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: COBRA under American Rescue Plan
Replies: 7
Views: 981

COBRA under American Rescue Plan

It looks like I failed to understand the implications of the provision of the American Rescue Act that gave free COBRA (and Cal-COBRA) coverage from April to September 2021. I thought it didn’t apply to me because I terminated COBRA at the end of 2020 and switched in January 2021 to a Covered Califo...
by SuzBanyan
Tue Jun 08, 2021 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: Moving Vanguard SEP-IRA to Fidelity Solo 401k
Replies: 3
Views: 294

Re: Moving Vanguard SEP-IRA to Fidelity Solo 401k

Have you made any contributions for your SEP IRA for the 2021 plan year? If so, you cannot open a Solo 401(k) until next year*. *. The exception would be that you could amend your SEP IRA to one at Schwab, which has a form of plan that allows it to exist at the same time as a Solo 401k. Neither Vang...
by SuzBanyan
Sun Jun 06, 2021 8:21 pm
Forum: Personal Finance (Not Investing)
Topic: Can I contribute $19,500 and 20% SMLLC and $6,000 to Roth in the same tax year?
Replies: 11
Views: 1280

Re: Can I contribute $19,500 and 20% SMLLC and $6,000 to Roth in the same tax year?

You under-contributed to the employer portion of the Solo 401k. “In this case, your net earnings from self-employment is defined as your business’s profit ($100,000), minus the deduction for one half of your self-employment tax ($7,064.78).” You can contribute 20% of these net earnings as the employ...
by SuzBanyan
Sat Jun 05, 2021 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA rule
Replies: 16
Views: 1164

Re: Inherited IRA rule

In making my post above, I assumed that when bungalow10 wrote “ Mom died in 2021, with two kids (I'm one) as beneficiaries (per stirpes)” that this was reference to the beneficiary designations Mom made on this IRA. I see now that instead this may be a reference to Mom’s will or something else. Did ...
by SuzBanyan
Sat Jun 05, 2021 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA rule
Replies: 16
Views: 1164

Re: Inherited IRA rule

I believe that (assuming Mom was Dad’s spouse at the time her died), Mom enjoys special benefits as the surviving spouse. As a result, after the SECURE Act, the beneficiaries named by Mom on her IRA inherited from Dad are treated as the original owner of the IRA account. As a result, on her death, h...
by SuzBanyan
Sat Jun 05, 2021 11:59 am
Forum: Personal Investments
Topic: Transferring Solo 401k, NEW or AMENDMENT?
Replies: 6
Views: 477

Re: Transferring Solo 401k, NEW or AMENDMENT?

My understanding is that if you terminate your Fidelity plan, you will not be able to open a new Solo 401k with E Trade until one year has elapsed. By amending the plan, you can have continuous access to a Solo 401K. After amending the plan, you would roll over your balance at Fidelity to ETrade. D...
by SuzBanyan
Fri Jun 04, 2021 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: When are other family member's expenses qualified under HSA in my name?
Replies: 1
Views: 249

Re: When are other family member's expenses qualified under HSA in my name?

The bottom line is that you can use the HSA to pay your dependent’s health costs, but not the health costs of non-dependents even if that non-dependent is a family member covered on your health insurance. And if you can pay the expense currently, you can also reimburse yourself for that expense in t...
by SuzBanyan
Fri Jun 04, 2021 8:16 am
Forum: Personal Investments
Topic: Unique Windfall - Crypto + Tax Efficiency
Replies: 22
Views: 2487

Re: Unique Windfall - Crypto + Tax Efficiency

It is possible that a general partnership was formed by oral agreement when the transfer initially occurred and the investment was made. The enforceability will depend on state law. If there was a partnership, obviously tax returns should have been filed annually and K-1s issued to the partners. Bec...
by SuzBanyan
Thu Jun 03, 2021 6:21 pm
Forum: Personal Investments
Topic: Transferring Solo 401k, NEW or AMENDMENT?
Replies: 6
Views: 477

Re: Transferring Solo 401k, NEW or AMENDMENT?

My understanding is that if you terminate your Fidelity plan, you will not be able to open a new Solo 401k with E Trade until one year has elapsed. By amending the plan, you can have continuous access to a Solo 401K. After amending the plan, you would roll over your balance at Fidelity to ETrade.
by SuzBanyan
Wed Jun 02, 2021 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Thinking about Closing S Corp and Become Sole Proprietor
Replies: 6
Views: 607

Re: Thinking about Closing S Corp and Become Sole Proprietor

Just be aware that transferring any S Corp assets out to you as a sole proprietorship will probably be treated as a sale of those assets, which might result in taxable gain. You should check with your tax advisor before undertaking the termination of the S Corp.
by SuzBanyan
Wed Jun 02, 2021 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Is my 401k company lying to me?
Replies: 28
Views: 3527

Re: Is my 401k company lying to me?

The point everyone is trying to make is that you had MORE money to invest because the Company gave you an payment deferred loan for 3 months. That additional money was in your paycheck every 2 weeks and you could have invested it any way you wanted.
by SuzBanyan
Mon May 31, 2021 5:51 pm
Forum: Personal Investments
Topic: Want to hit $18M in 20yrs - Do I need to think differently?
Replies: 64
Views: 9049

Re: Want to hit $18M in 20yrs - Do I need to think differently?

Did I miss where you told us what your employment plans were for the next 20 years (other than that you plan to work remotely and expect a 20% lower salary than if you work onsite in the Bay Area or Seattle)? In my experience, one reason some people are serial entrepreneurs is that once they have ru...
by SuzBanyan
Sun May 30, 2021 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Can I get both ACA credit and IRMAA subsidy in the same year?
Replies: 10
Views: 822

Re: [Can I get both ACA credit and IRMAA subsidy in the same year?]

In the past, the ACA subsidy was generally not available unless your income was less than 400% of poverty level. The IRMAA adjustment for 2021 starts at over $88,000 for singles and over $176,000 for MFJ. Either amount is likely above 400% of poverty level. So most people didn’t think about a possib...
by SuzBanyan
Sat May 29, 2021 12:25 pm
Forum: Personal Investments
Topic: titling of inherited IRAs as beneficiary
Replies: 15
Views: 1508

Re: titling of inherited IRAs as beneficiary

So sorry for your loss. Are you sure you want to take the Roth as an Inherited IRA? That would require you to take RMDs beginning at age 72. If you transfer ownership of the Roth to you as the spouse, no RMDs will be required while you are alive. I believe you can receive distributions of the contr...
by SuzBanyan
Sat May 29, 2021 8:47 am
Forum: Personal Investments
Topic: titling of inherited IRAs as beneficiary
Replies: 15
Views: 1508

Re: titling of inherited IRAs as beneficiary

So sorry for your loss. Are you sure you want to take the Roth as an Inherited IRA? That would require you to take RMDs beginning the year after the original owner’s death. [not “at age 72” in my original post]. If you transfer ownership of the Roth to you as the spouse, no RMDs will be required whi...
by SuzBanyan
Wed May 26, 2021 3:00 pm
Forum: Personal Investments
Topic: Single Member LLC: Can You Make SEP IRA Contributions and Roth Solo 401k Contributions In The Same Year?
Replies: 7
Views: 486

Re: Single Member LLC: Can You Make SEP IRA Contributions and Roth Solo 401k Contributions In The Same Year?

Fantastic info, thanks all. Since I'm higher income, it sounds like there's no reason to make roth contributions anymore, right? Is there any upside to staying with the SEP-IRA over the solo 401k? Based on what you've all written, it sounds like the solo 401k is ultimately better? You are probably ...
by SuzBanyan
Wed May 26, 2021 12:39 pm
Forum: Personal Investments
Topic: Single Member LLC: Can You Make SEP IRA Contributions and Roth Solo 401k Contributions In The Same Year?
Replies: 7
Views: 486

Re: Single Member LLC: Can You Make SEP IRA Contributions and Roth Solo 401k Contributions In The Same Year?

I believe that you can have both a SEP-IRA and a solo 401(k), as long as the SEP-IRA is not a 5305 plan. https://www.irs.gov/retirement-plans/establishing-a-sep : You may not use Form 5305 - SEP if you: Maintain any other qualified plan (except another SEP - a plan is "maintained" even if ...
by SuzBanyan
Tue May 25, 2021 7:46 pm
Forum: Personal Consumer Issues
Topic: Hospital bill - worth haggling?
Replies: 76
Views: 6338

Re: Hospital bill - worth haggling?

When you talk to the hospital, confirm that no further bill will be sent for other services relating to the hospital stay or services provided. If you are going to try to negotiate the balance billing down, you might as well work on the entire bill instead of doing by piecemeal.
by SuzBanyan
Tue May 25, 2021 2:30 pm
Forum: Personal Investments
Topic: Portfolio Review Please. Involuntary Early Retirement
Replies: 39
Views: 3162

Re: Portfolio Review Please. Involuntary Early Retirement

What are you doing with respect to health insurance before you are 65? Will you be covered u def a plan from your wife’s employment? Do you have a plan is she decides to retire early?
by SuzBanyan
Mon May 24, 2021 11:51 am
Forum: Personal Consumer Issues
Topic: Hospital bill - worth haggling?
Replies: 76
Views: 6338

Re: Hospital bill - worth haggling?

As others have noted, you need to understand the limits on your insurance, both in-network and out of network. Just because Cigna agreed to treat the hospital as in-network, doesn’t mean that other charges are not out of network. Emergency room physicians are famous for being out of network even at ...
by SuzBanyan
Mon May 24, 2021 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Didn’t deduct rental property depreciation for 10+ years. Can I fix?
Replies: 21
Views: 3070

Re: Didn’t deduct rental property depreciation for 10+ years. Can I fix?

Ignoring any subsequent improvements or the death of an owner, if it was purchased in 1986 wouldn’t it have been fully depreciated by 2008? I think because only half of the duplex was initially rented out starting in 1986, only that unit would have the 19 year depreciation schedule as a pre-1987 ac...
by SuzBanyan
Sun May 23, 2021 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: who is skipping medigap?
Replies: 8
Views: 1041

Re: who is skipping medigap?

Sorry but you are asking the wrong question. No one could say they did fine without a Medigap policy. That’s because they are still alive and continue to run the risk of a catastrophic illness that bankrupts them. I believe the question you should ask if people would be willing to share the cost of...
by SuzBanyan
Sun May 23, 2021 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Didn’t deduct rental property depreciation for 10+ years. Can I fix?
Replies: 21
Views: 3070

Re: Didn’t deduct rental property depreciation for 10+ years. Can I fix?

Ignoring any subsequent improvements or the death of an owner, if it was purchased in 1986 wouldn’t it have been fully depreciated by 2008? I think because only half of the duplex was initially rented out starting in 1986, only that unit would have the 19 year depreciation schedule as a pre-1987 ac...
by SuzBanyan
Sat May 22, 2021 8:40 pm
Forum: Personal Investments
Topic: New member, newly self-employed questions on retirement plan at Vanguard
Replies: 4
Views: 535

Re: New member, newly self-employed questions on retirement plan at Vanguard

Since you have already contributed to your SEP IRA for 2021 you cannot open and fund a solo 401k until 2022. Are you sure about that? Both these sites say you can, you just can't exceed the annual limit. https://www.mysolo401k.net/yes-annual-contributions-can-made-sep-ira-solo-401k/ https://www.ira...
by SuzBanyan
Sat May 22, 2021 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: Simple (maybe silly) HSA question
Replies: 9
Views: 1309

Re: Simple (maybe silly) HSA question

DW and I are both in our early 60's, and covered by my former employer with an HDHP. The plan is in my retirement benefit, but includes coverage of DW. For several years, I've been doing the max family HSA contribution. Once I realized DW could also do the $1000 catch-up, she opened up an individua...
by SuzBanyan
Sat May 22, 2021 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: elderly parent's home
Replies: 35
Views: 2337

Re: elderly parent's home

Depending on the exact numbers, I would think that the following would work: EP moves in with you and pays rent, possibly an amount equal to what you are receiving from Adult Cild. Adult child moves into EP’s house and pays EP rent, possibly an amount equal to what is being paid now to you. The 2 re...
by SuzBanyan
Tue May 18, 2021 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Tax planning (Gain in Primary Home) for Relocation
Replies: 8
Views: 567

Re: Tax planning (Gain in Primary Home) for Relocation

If you are moving due to work, you may be eligible for a partial exclusion even if it has not been 2 years since you sold the last home. See Publication 523 : https://www.irs.gov/publications/p523
by SuzBanyan
Sun May 16, 2021 8:36 am
Forum: Personal Finance (Not Investing)
Topic: 5500 solo 401k reporting question
Replies: 13
Views: 763

Re: 5500 solo 401k reporting question

The current guidance is Publication 560 at page 15, which says, with respect to Employee contributions: “You generally apply your plan contributions to the year in which you make them. But you can apply them to the previous year if all the following requirements are met. 1. You make them by the due ...
by SuzBanyan
Sat May 15, 2021 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Use a Roth IRA for long term savings?
Replies: 5
Views: 794

Re: Use a Roth IRA for long term savings?

Just be aware that there is really no such thing as “recession-proof dividend growth stocks”. And when it comes time to buy that new car, you may find it better to use funds from other accounts, even emergency funds if you have retired, than take money solely from a Roth that might still have years ...
by SuzBanyan
Sat May 15, 2021 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Gift House to DD/SIL - best way to set price and report gift ?
Replies: 10
Views: 1542

Re: Gift House to DD/SIL - best way to set price and report gift ?

It seem odd to expect that for a $400K house you could give them $250K in home equity and get out of any capital gains tax obligation, especially since you expect to take $50K out of the transaction. We've poured a lot more than that into this property over the last 10 years! And the capital gains ...
by SuzBanyan
Fri May 14, 2021 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: Gift House to DD/SIL - best way to set price and report gift ?
Replies: 10
Views: 1542

Re: Gift House to DD/SIL - best way to set price and report gift ?

Let’s do the math. FMV is $400,000. You have a $100,000 loan on the property. Your cost basis is $200,000. If you gift the entire property, the value of the gift would be $300,000. Your child would have a basis in the property of $200,000. If you sell the property to your child for $150,000, then th...
by SuzBanyan
Wed May 12, 2021 9:40 am
Forum: Personal Finance (Not Investing)
Topic: HSAs and Medicare Part B Premium Rebates
Replies: 14
Views: 1191

Re: HSAs and Medicare Part B Premium Rebates

I would agree on the comment from the that generally you cannot double dip. No different than getting a bill for $100 from a health provider and submitting it to your insurer, who reimburses you $80. You can only pull $20 from the HSA, not the entire $100. In fact, there is a procedure to put back t...
by SuzBanyan
Sun May 09, 2021 2:00 pm
Forum: Personal Investments
Topic: Draw down inherited IRA before RMDs start at 72?
Replies: 12
Views: 1157

Re: Draw down inherited IRA before RMDs start at 72?

My husband has a much smaller inherited IRA. Our analysis suggested that if we need to draw spending money from an IRA, it made sense to draw first from the inherited IRA. He made it to 72, however, with no need to make such withdrawals. We did some Roth conversions during this period from the tIRA....
by SuzBanyan
Sun May 09, 2021 9:20 am
Forum: Personal Consumer Issues
Topic: HOA Advantage
Replies: 125
Views: 9814

Re: HOA Advantage

One possible advantage for living in an HOA, especially for the retired, is the opportunity to serve on the Board. My father has been on the Board for his HOA for much of the time since he retired 30 years ago. He also works as the unofficial handyman for simple repairs at the clubhouse and pool and...
by SuzBanyan
Sun May 09, 2021 8:28 am
Forum: Personal Finance (Not Investing)
Topic: California Homebuying Insanity
Replies: 243
Views: 22472

Re: California Homebuying Insanity

Exactly, there’s lots of $200k jobs in LCOL. The remote jobs, medical, finance, etc And yes the $400k in LCOL is saving 5+ years of expenses annually. Because of their minimal housing expenses. Fastest path to financial independence (25x expenses). We can see why you didn't retype your comparison: ...
by SuzBanyan
Fri May 07, 2021 8:34 am
Forum: Personal Investments
Topic: Late 60s retiring mom...50/50 okay? Pay off mortgage?
Replies: 21
Views: 3466

Re: Late 60s retiring mom...50/50 okay? Pay off mortgage?

With no funds in either a taxable account or Roth, I would not pay off the mortgage, either now or early in retirement. I agree with other posters that she should stop making extra mortgage payments; instead, put those funds in a Roth or taxable account. It looks like when she retires, most of her i...
by SuzBanyan
Wed May 05, 2021 2:09 pm
Forum: Personal Investments
Topic: Solo 401K (Keogh) Over Contribution
Replies: 12
Views: 847

Re: Solo 401K (Keogh) Over Contribution

NewYork140 wrote: Wed May 05, 2021 1:54 pm I'm not sure if that applies here...and forgive my ignorance here.

I own company X- where I did a max contribution of $57K

I worked for company Y, where I did a max employee contribution of $19,500

Are we saying that is allowed?
Yes, as long as you don’t also own Company Y.
by SuzBanyan
Tue May 04, 2021 8:33 am
Forum: Personal Investments
Topic: Solo 401K (Keogh) Over Contribution
Replies: 12
Views: 847

Re: Solo 401K (Keogh) Over Contribution

Because the employer contribution is 20% of net self employment earning (after subtracting half of self employment taxes), you probably need almost $300,000 in 1099 earnings to support a $57,000 contribution as employer. You can put in your numbers from both you W-2 job and self-employment here: htt...
by SuzBanyan
Mon May 03, 2021 1:50 pm
Forum: Personal Investments
Topic: Beneficiary designation for a 401k trust in AZ
Replies: 3
Views: 270

Re: Beneficiary designation for a 401k trust in AZ

I’m confused about your question. A 401k plan is sponsored by a business and the accounts under the plan are owned by individuals. A trust cannot own an account under a 401k plan. Each account owner may designate a beneficiary to inherit the account upon the death of the owner. One possible benefici...
by SuzBanyan
Sun May 02, 2021 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning: Handling of separate property in Community Prop State (CA)
Replies: 32
Views: 2288

Re: Estate planning: Handling of separate property in Community Prop State (CA)

Just so you know, there is a full step up in basis on the death of the first spouse to die for assets held as community property. If your goal is to transfer you assets to your wife with a full step up in basis after your death, there is no need to keep it as your separate property. However, there a...
by SuzBanyan
Sun May 02, 2021 2:22 pm
Forum: Personal Investments
Topic: HSA and California move
Replies: 18
Views: 1697

Re: HSA and California move

OP, if you don't live in CA, is your investment income even subject to CA tax? OP said they were moving to CA before the end of 2021. OP: The best way to think of an HSA when you are a CA resident is that CA treats it just like a taxable account. So, just like you don’t get a tax deduction for putt...