Search found 652 matches

by SuzBanyan
Mon Aug 02, 2021 5:53 pm
Forum: Personal Investments
Topic: Switching Spouse to W-2 from 1099: Effect on Solo 401k
Replies: 9
Views: 722

Re: Switching Spouse to W-2 from 1099: Effect on Solo 401k

I ended up not paying myself any income from my wife's business via W-2 or 1099. Problem is that I opened a solo401k and sent $1,000 to it in 2020 (thinking I was getting paid in 2020 via 1099 from wife's business at the time.) Now, I'm about to file 2020 taxes. Not planning on taking the $1,000 de...
by SuzBanyan
Mon Aug 02, 2021 12:47 pm
Forum: Personal Investments
Topic: Solo 401k
Replies: 9
Views: 1052

Re: Solo 401k

Here is some practical information from guru SpiritRider: “ By attribution you [husband and wife] are also each deemed to own 100% of the other's business. As such these two businesses constitute a controlled group and the two of you should only adopt a single one-participant 401k plan with individu...
by SuzBanyan
Mon Aug 02, 2021 12:23 pm
Forum: Personal Investments
Topic: Solo 401k
Replies: 9
Views: 1052

Re: Solo 401k

Thank you for everyone`s input...We are separate independent contractors in separate businesses, we have two separate incomes (I am a Real Estate agent and my husband is an independent contractor) and we have a minor child. In this case we can have two solo 401K or only one? Only 1. I believe that ...
by SuzBanyan
Mon Aug 02, 2021 12:09 pm
Forum: Personal Investments
Topic: vanguard i401k confusion
Replies: 5
Views: 335

Re: vanguard i401k confusion

Yes, it’s tied to your business. And even if you are a sole proprietor, you will need an EIN.

Contributions are made through the small biz website. Those contributions are visible on your personal account page.
by SuzBanyan
Sun Aug 01, 2021 2:28 pm
Forum: Forum Issues and Administration
Topic: Forum etiquette: Letting users know what you decide and/or how things went
Replies: 20
Views: 2581

Re: Forum etiquette: Letting users know what you decide and/or how things went

This thread inspired me. I looked up my original portfolio questions thread, which was just over 5 years ago. So I gave an update. Might not help the community much, but the comparison process was very helpful to me.
by SuzBanyan
Sun Aug 01, 2021 11:54 am
Forum: Personal Finance (Not Investing)
Topic: IRMAA Question For New Widow
Replies: 16
Views: 1157

Re: IRMAA Question For New Widow

Because “Death of a Spouse” is a “life changing event” under IRMAA, she can apply in early 2023 to have her IRMAA benefits determined by 2023 estimated MAGI instead of 2021. It will certainly be granted. So she won’t have to pay even a single year of higher costs due to IRMAA.
by SuzBanyan
Sun Aug 01, 2021 9:37 am
Forum: Personal Investments
Topic: 5 Year Update Below: Help Simplify My Asset Allocation
Replies: 13
Views: 1863

Re: Help Simplify My Asset Allocation

Here’s my update, just about 5 years later. We simplified our holdings and removed more than 10 different investments. We also made a substantial donation of other appreciated shares to a DAF but not enough to completely eliminate them. We still have a lot of accounts, which to some extent can’t be ...
by SuzBanyan
Sat Jul 31, 2021 5:16 pm
Forum: Personal Investments
Topic: Who do my parents need to see to get their retirement in order?
Replies: 27
Views: 3369

Re: Who do my parents need to see to get their retirement in order?

To know if they have enough and aren’t likely to outlive their savings, your parents need to know their expected expenses in retirement. The link to the Fidelity planner from Backpacker61 can help with that.
by SuzBanyan
Sat Jul 31, 2021 12:11 pm
Forum: Investing - Theory, News & General
Topic: Nice FIRE Net Worth Blog 2005-2015
Replies: 159
Views: 13049

Re: Nice FIRE Net Worth Blog 2005-2015

It certainly was not a financial failure, but it proves you do need to retire/quit to something. I think an excellent balance for many who reach FI is to find/make work that fits your desired lifestyle. IMO I do not see the need to fully quit work in your 30s-50s. If you define financial failure as...
by SuzBanyan
Sat Jul 31, 2021 10:09 am
Forum: Personal Investments
Topic: Inherited IRA questions
Replies: 4
Views: 722

Re: Inherited IRA questions

Hello all, I am back again with a few questions on inheritance. I last received some very good information on a trust that I was a beneficiary of, but it turned out my mother was actually the beneficiary. Sadly she has passed and left us: an IRA and an “agency”. I am trying to minimize my tax liabi...
by SuzBanyan
Wed Jul 28, 2021 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Small Business Retirement Account Options
Replies: 4
Views: 379

Re: Small Business Retirement Account Options

Your wife can certainly continue her 401k plan even though she has employees but she will have to transition to a standard 401k plan. That transition probably needed to happen at the time of the new hire, because the Solo 401k plan probably has no eligibility requirements. So the new hire was eligib...
by SuzBanyan
Wed Jul 28, 2021 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Timing for ACA Lifechange declaration with LTCG
Replies: 5
Views: 517

Re: Timing for ACA Lifechange declaration with LTCG

I have a similar question. I’m on the ACA for the first time but this is my second year as a sole proprietor. I used last year income to estimate for ACA. But 2020 was a weird year so now I expect to exceed that income by the end of August 2021. My best guess now is that I will have underpaid by abo...
by SuzBanyan
Tue Jul 27, 2021 5:37 pm
Forum: Personal Investments
Topic: Sold primary home with gains, now what to do?
Replies: 12
Views: 1922

Re: Sold primary home with gains, now what to do?

I am no expert on CA real estate taxes (I think by "Bay Area" you mean you live in CA), but won't you have a quite large property tax bill on a newly purchased ~$2mill property? My back of the envelope calculation comes up with something like $38K/year, or ~$3k/month. And if you invested ...
by SuzBanyan
Tue Jul 27, 2021 9:39 am
Forum: Personal Consumer Issues
Topic: Best Wellness Retreats - or how to recreate one
Replies: 7
Views: 668

Re: Best Wellness Retreats - or how to recreate one

I would think there are many resorts in Hawaii that would fit the bill.
by SuzBanyan
Tue Jul 27, 2021 9:12 am
Forum: Personal Investments
Topic: Solo 401k Question
Replies: 5
Views: 525

Re: Solo 401k Question

And the good news is that you have until your file your tax return next year to make the employee deferral, if any, in the Solo 401k. That means you will know exactly how much you deferred into your W-2 401k. You just need to make an election in writing delivered to the employer (you) by 12/31, whic...
by SuzBanyan
Mon Jul 26, 2021 12:28 pm
Forum: Personal Investments
Topic: Solo 401k Question
Replies: 5
Views: 525

Re: Solo 401k Question

Loooooong time lurker who would appreciate a second set of eyes on the following logic: Through 2020, I've had traditional 401ks from prior employers. I've kept them as is for now. In 2021, all my income to date has been through consulting (sole proprietor). I'd like to sock away as much pre-tax as...
by SuzBanyan
Mon Jul 26, 2021 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Advice on Simple IRA
Replies: 8
Views: 780

Re: Advice on Simple IRA

I contacted the broker at the benefits firm that my company uses. He does not know if the plan is a 5304 or 5305. As far as employee eligibility he said it’s typically 3 years. Shortly after I heard back from him my boss came to me and told me it’s a 5 year wait, unless an employee asks then they l...
by SuzBanyan
Sun Jul 25, 2021 1:55 pm
Forum: Personal Investments
Topic: Employer to only match while using financial advisor/firm
Replies: 92
Views: 5613

Re: Employer to only match while using financial advisor/firm

not to hijack a thread but I just want to make sure that I am understanding this correctly because this is a new thing I've apparently learned. So, we can transfer the money from my wife's current employer's SIMPLE IRA plan (at Capitol Group, currently using American Funds 2035 TDF with an ER of 0....
by SuzBanyan
Sat Jul 24, 2021 6:53 pm
Forum: Personal Investments
Topic: Employer to only match while using financial advisor/firm
Replies: 92
Views: 5613

Re: Employer to only match while using financial advisor/firm

From the IRS: “Financial institutions authorized to hold and invest SIMPLE IRA plan contributions include banks, savings and loan associations, insurance companies, certain regulated investment companies, federally insured credit unions and brokerage firms. SIMPLE IRA plan contributions can be put i...
by SuzBanyan
Sat Jul 24, 2021 5:42 pm
Forum: Personal Investments
Topic: Employer to only match while using financial advisor/firm
Replies: 92
Views: 5613

Re: Employer to only match while using financial advisor

What type of retirement plan is this? This smells of kickbacks. Agree. Lawsuit waiting to happen and with good justification at least morally, not sure about legally. Unless a fantastic job it would be enough to get me to consider a job change. So unethical. You're wrong. This is not a 401k. This i...
by SuzBanyan
Sat Jul 24, 2021 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Can I afford to retire early?
Replies: 5
Views: 1213

Re: Can I afford to retire early?

You might get a different answer if your title was “Can I afford to be a stay at home Dad?” With almost $3,000,000 in savings and your wife earning half the wages, I would expect the answer is yes. You need to get a really good handle on your expenses and not count on much more than 2% withdrawals f...
by SuzBanyan
Fri Jul 23, 2021 9:16 am
Forum: Personal Consumer Issues
Topic: Need to buy an Outback before 8/31
Replies: 26
Views: 3830

Re: Need to buy an Outback before 8/31

This is a timely thread for me. My 92 year old Dad had his 2012 Outback stolen last week from the street in front of my brother’s house while they were vacationing in Hawaii. Because he didn’t think he was in the market for a car, he wasn’t aware of the inventory issues. He has a loaner from another...
by SuzBanyan
Fri Jul 23, 2021 9:11 am
Forum: Personal Finance (Not Investing)
Topic: I Bonds Ladder, how to track with Quicken?
Replies: 6
Views: 607

Re: I Bonds Ladder, how to track with Quicken?

I basically do the same as others, but I use the same screen to update the “price” every month or so using data from Treasury Direct. I treat any I bond purchased in the same month as the same security and set different accounts for ownership if helpful.
by SuzBanyan
Thu Jul 22, 2021 9:08 pm
Forum: Personal Investments
Topic: Just retired; should I redo Solo 401k to enable Mega Backdoor Roth (MBR) for just 1 year?
Replies: 6
Views: 886

Re: Just retired; should I redo Solo 401k to enable Mega Backdoor Roth (MBR) for just 1 year?

Whether it is worth the trouble and expense to do so, just to get another $64,500 into my Roth IRA? It would not be worth it to me, especially since I know nothing about how to administer the plan. This is not the same as administering a vanilla plan. You either have enough money to retire or you d...
by SuzBanyan
Thu Jul 22, 2021 8:00 am
Forum: Personal Investments
Topic: Solo 401k
Replies: 9
Views: 1052

Re: Solo 401k

Is it a single business you run together or separate businesses you run without the other’s involvement? And I know this may sound like a weird question but it matters to the IRS in determine a “controlled group”, if it’s 2 businesses, do you have minor children?
by SuzBanyan
Wed Jul 21, 2021 9:07 am
Forum: Investing - Theory, News & General
Topic: Best inflation hedge besides gold, real estate, stocks, and crypto
Replies: 131
Views: 11432

Re: Best inflation hedge besides gold, real estate, stocks, and crypto

A mortgage Yup. Just refi'd to 2.25% 30 year fixed on a $500k mortgage. With the 10 year breakeven rate @ 2.26%, I'm making money. 4% inflation would not bug me one bit. I am 55, retired, with a COLA pension and free health care for life. Once SS kicks in, I don't need any. more savings. While a pe...
by SuzBanyan
Tue Jul 20, 2021 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: Who needs to pay quarterly taxes?
Replies: 11
Views: 1414

Re: Who needs to pay quarterly taxes?

Adding another twist to OP's query - we just sold my rental property realizing significant capital gains. While my withholdings from our salaries are sufficient for the salary, we would owe a good additional sum when we file due to depreciation recapture and capital gains on top of it. Is an estima...
by SuzBanyan
Mon Jul 19, 2021 8:46 pm
Forum: Personal Investments
Topic: Rolling IRAs into old solo 401K?
Replies: 10
Views: 1149

Re: Rolling IRAs into old solo 401K?

From resident guru SpiritRider in a 2019 post: “The only time you would need to terminate a one-participant 401k is if the business sponsor ceases to exist. A disregarded single member LLC and sole proprietor generally exist from inception until death . I have never heard of the IRS requiring such ...
by SuzBanyan
Mon Jul 19, 2021 8:09 am
Forum: Personal Investments
Topic: Rolling IRAs into old solo 401K?
Replies: 10
Views: 1149

Re: Rolling IRAs into old solo 401K?

From resident guru SpiritRider in a 2019 post: “The only time you would need to terminate a one-participant 401k is if the business sponsor ceases to exist. A disregarded single member LLC and sole proprietor generally exist from inception until death . I have never heard of the IRS requiring such a...
by SuzBanyan
Sun Jul 18, 2021 7:07 pm
Forum: Personal Investments
Topic: Rolling IRAs into old solo 401K?
Replies: 10
Views: 1149

Re: Rolling IRAs into old solo 401K?

I think the question comes down to whether the plan will be treated as discontinued. From the IRS: “We haven’t made many contributions to our profit-sharing plan. How will this impact our plan termination? Although employers are not required to contribute every year to a profit-sharing plan, contrib...
by SuzBanyan
Sun Jul 18, 2021 12:37 pm
Forum: Personal Investments
Topic: Solo 401k set up under different LLC than the one being paid.
Replies: 8
Views: 437

Re: Solo 401k set up under different LLC than the one being paid.

You should amend the current plan to add XYZ, LLC as an employer to your existing Solo 401k. If you own both LLCs, they are part of a controlled group and you cannot have a different Solo 401k for each. So i can't set up another solo 401k for XYZ LLC? when you said amend, do you know what is the pr...
by SuzBanyan
Sun Jul 18, 2021 9:26 am
Forum: Personal Investments
Topic: Solo 401k set up under different LLC than the one being paid.
Replies: 8
Views: 437

Re: Solo 401k set up under different LLC than the one being paid.

You should amend the current plan to add XYZ, LLC as an employer to your existing Solo 401k. If you own both LLCs, they are part of a controlled group and you cannot have a different Solo 401k for each. So i can't set up another solo 401k for XYZ LLC? when you said amend, do you know what is the pr...
by SuzBanyan
Sun Jul 18, 2021 9:09 am
Forum: Personal Investments
Topic: Solo 401k set up under different LLC than the one being paid.
Replies: 8
Views: 437

Re: Solo 401k set up under different LLC than the one being paid.

You should amend the current plan to add XYZ, LLC as an employer to your existing Solo 401k. If you own both LLCs, they are part of a controlled group and you cannot have a different Solo 401k for each.
by SuzBanyan
Sun Jul 18, 2021 8:47 am
Forum: Personal Investments
Topic: Mom Passed - Trying To Set Dad Up For Success
Replies: 16
Views: 3137

Re: Mom Passed - Trying To Set Dad Up For Success

So sorry for your loss. Although a few people have mentioned your Dad’s ability to continue to manage his real estate, I have seen anyone bring up the possibility that those properties had a step- up in basis when you Mom passed, making it easier for your Dad to unload the “losers.” Was your Mom a c...
by SuzBanyan
Sat Jul 17, 2021 2:26 pm
Forum: Personal Investments
Topic: 89 Year Old Parents Have 100% of $ in Stocks
Replies: 44
Views: 6691

Re: 89 Year Old Parents Have 100% of $ in Stocks

Any pension or social security?
by SuzBanyan
Sat Jul 17, 2021 9:14 am
Forum: Personal Investments
Topic: First Post: 2-3yr Out Retirement Strategy Review Request
Replies: 4
Views: 1089

Re: First Post: 2-3yr Out Retirement Strategy Review Request

A couple of comments. Because you intend to stay in your house, I wouldn’t count it’s equity as part of your retirement assets. It may be that it will be a cushion for LTC for the second to die and you may want to borrow against that equity in early retirement. That leaves you with $3.2M now and pro...
by SuzBanyan
Fri Jul 16, 2021 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: C Corp Inheritance/Sale
Replies: 1
Views: 168

Re: C Corp Inheritance/Sale

Sorry to hear of you’re loss. If your father owned shares in a C corporation at the time of his death, then his heirs would inherit ownership of those shares. Assuming that it is a closely held business and not traded on an exchange like shares in Apple or Amazon, then there might be an agreement be...
by SuzBanyan
Fri Jul 16, 2021 12:31 pm
Forum: Personal Investments
Topic: Contributing to my company 401(k) vs my wife's solo 401(k)
Replies: 6
Views: 506

Re: Contributing to my company 401(k) vs my wife's solo 401(k)

Your wife could also open a solo 401k that allows Roth accounts (pretty much anywhere but Fidelity) and, depending on net income, contribute up $19500 to the Roth401k without any impact on QBI.
by SuzBanyan
Thu Jul 15, 2021 10:54 am
Forum: Personal Investments
Topic: Sep IRA vs solo 401k revisited
Replies: 31
Views: 1204

Re: Sep IRA vs solo 401k revisited

My understanding is that the employee deferral amount (currently $19500 plus catch-up) combines over all 401k, 403b and SEP IRA plans. Employee contribution to SIMPLE IRA also are included in this combined amount. Separate from that is the ability to contribute to plans on an after tax basis. My und...
by SuzBanyan
Thu Jul 15, 2021 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Advice on Simple IRA
Replies: 8
Views: 780

Re: Advice on Simple IRA

The IRS does require annual notification to each eligible employee regarding participation in a SIMPLE IRA plan. It sounds like you may have been eligible last year and almost certainly are this year. The IRS has a fix-it guide for excluding an eligible employee from participating, which basically r...
by SuzBanyan
Wed Jul 14, 2021 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: HSA reimbursement versus itemized medical deductions (both?)
Replies: 99
Views: 3928

Re: HSA reimbursement versus itemized medical deductions (both?)

This is my thinking as well. And once this can of worms is opened, the IRS can dig elsewhere and continue to dig and the hole can keep on getting bigger. I'd hate to see an audit start out looking at this one issue and then going beyond it to look at every HSA distribution I've made the last 10 yea...
by SuzBanyan
Wed Jul 14, 2021 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: “Free” COBRA if still eligible for parent’s policy?
Replies: 22
Views: 1351

Re: “Free” COBRA if still eligible for parent’s policy?

Also be aware that when you switch plans mid-year, even with the same insurance company, the deductible starts again.
by SuzBanyan
Wed Jul 14, 2021 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: HSA limits for family and individuals
Replies: 5
Views: 421

Re: HSA limits for family and individuals

And one other minor, but important exception, is if the child on the plan is not a tax dependent. Often that is because the child is still in college but older than 24. In that case, the child can have its own HSA and contribute up to the family max. This comes about because funds in Mom or Dad’s HS...
by SuzBanyan
Tue Jul 13, 2021 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: “Free” COBRA if still eligible for parent’s policy?
Replies: 22
Views: 1351

Re: “Free” COBRA if still eligible for parent’s policy?

I don’t see this mentioned specifically in any recap or explanation I have encountered. From what I read, you cannot receive 100% subsidized COBRA premiums enabled by the American Rescue Plan if you are eligible to be covered under another group plan. Does this include a parent’s plan if the COBRA ...
by SuzBanyan
Tue Jul 13, 2021 5:43 pm
Forum: Personal Investments
Topic: Multiple side businesses - Solo 401k question
Replies: 6
Views: 670

Re: Multiple side businesses - Solo 401k question

You should be able to tell you solo 401k provider and I believe they can put multiples businesses on the 401k. I'm assuming both are taxed as sole proprietor so you might not even need to do that. I went through mysolo401k and they've been super helpful. Correct. A single 401k is required for both ...
by SuzBanyan
Tue Jul 13, 2021 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: “Free” COBRA if still eligible for parent’s policy?
Replies: 22
Views: 1351

Re: “Free” COBRA if still eligible for parent’s policy?

I don’t see this mentioned specifically in any recap or explanation I have encountered. From what I read, you cannot receive 100% subsidized COBRA premiums enabled by the American Rescue Plan if you are eligible to be covered under another group plan. Does this include a parent’s plan if the COBRA ...
by SuzBanyan
Sun Jul 11, 2021 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: New LLC - do I need a business checking account
Replies: 14
Views: 1004

Re: New LLC - do I need a business checking account

There are 2 issues. You need to have adequate business records to track income and expenses for your business to properly pay taxes. A separate business checking account and a separate business credit card can help with that. The second issue is whether your act of intermingling business and persona...
by SuzBanyan
Sun Jul 11, 2021 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Grandparent from DCFSA for Childcare
Replies: 7
Views: 1011

Re: Pay Grandparent from DCFSA for Childcare

If the childcare services are performed in the home of the care provider the earnings would be impacted by allocated expenses for the business use of the provider's home. Form 8829 specifically mentions area of the home used regularly for daycare in the square footage calculation. Good point. So if...
by SuzBanyan
Sun Jul 11, 2021 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Pay Grandparent from DCFSA for Childcare
Replies: 7
Views: 1011

Re: Pay Grandparent from DCFSA for Childcare

Your mother will need to report the payment to her as taxable income. Have her run a pro forma tax return to make sure that it doesn’t cause unexpected impacts, such as resulting a higher percentage of her Social Security to be taxed. Work with a knowledgeable company or CPA to set up the payments a...
by SuzBanyan
Fri Jul 09, 2021 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Elderly tax residence when forced to move
Replies: 9
Views: 1061

Re: Elderly tax residence when forced to move

I would recommend that your parents meet with an estate planning attorney in Illinois who is familiar with the issues that might be raised when a married couple moves from Idaho. Your parents need to appropriately assess the requirements imposed by that move (which may require filing a state tax ret...