Search found 2072 matches

by cowdogman
Thu Mar 28, 2024 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Tax return was rejected, R0000-058-01. Anyone else experiencing this problem?
Replies: 29
Views: 2095

Re: Tax return was rejected, R0000-058-01. Anyone else experiencing this problem?

Couple suggestions: 1. If this is a problem only for the desktop, call TT and ask for a free copy of the web version. TT can give you a code to enter online. This was a workaround I saw people use in February when there was a similar 7206 issue. 2. Don't take the SEHID and e-file now--without form 7206. When you're back in town, file an amended return with the SEHID. I saw this suggestion a lot back in February. I know it is not an attractive option. 1. I couldn’t get through to a TT person, because I didn’t pay for the live person service. Is that the only way to get the free code for web version? I don’t want to give them money for their own incompetence. 2. SEHID is a huge deduction, and I really don’t have time at the moment to fiddle ...
by cowdogman
Thu Mar 28, 2024 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Tax return was rejected, R0000-058-01. Anyone else experiencing this problem?
Replies: 29
Views: 2095

Re: Tax return was rejected, R0000-058-01. Anyone else experiencing this problem?

Wow. I just checked the TT Community site. What a mess! Another problem with 7206 is that the amount in Line 1 is wrong (or at least was wrong when I did my taxes). I decided to file a few weeks ago thinking TT was never going to fix the error--and I see people are still pointing out the error on TT community. My filing was accepted immediately. I know putting together the TT coding every year is a huge task, but 7206 is just a reporting form. How hard can it be? Did you fix line 1 and filed? No. If I override to fix an incorrect number, TT will not let me e-file with the override. My 7206 (and numerous other peoples' 7206s (probably including your 7206)) have an incorrect Line 1 and a footnote at the bottom of the 7206 with an amount. If ...
by cowdogman
Wed Mar 27, 2024 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Tax return was rejected, R0000-058-01. Anyone else experiencing this problem?
Replies: 29
Views: 2095

Re: Tax return was rejected, R0000-058-01. Anyone else experiencing this problem?

Couple suggestions: 1. If this is a problem only for the desktop, call TT and ask for a free copy of the web version. TT can give you a code to enter online. This was a workaround I saw people use in February when there was a similar 7206 issue. 2. Don't take the SEHID and e-file now--without form 7206. When you're back in town, file an amended return with the SEHID. I saw this suggestion a lot back in February. I know it is not an attractive option. 1. I couldn’t get through to a TT person, because I didn’t pay for the live person service. Is that the only way to get the free code for web version? I don’t want to give them money for their own incompetence. 2. SEHID is a huge deduction, and I really don’t have time at the moment to fiddle ...
by cowdogman
Wed Mar 27, 2024 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Tax return was rejected, R0000-058-01. Anyone else experiencing this problem?
Replies: 29
Views: 2095

Re: Tax return was rejected, R0000-058-01. Anyone else experiencing this problem?

Wow. I just checked the TT Community site. What a mess!

Another problem with 7206 is that the amount in Line 1 is wrong (or at least was wrong when I did my taxes). I decided to file a few weeks ago thinking TT was never going to fix the error--and I see people are still pointing out the error on TT community. My filing was accepted immediately.

I know putting together the TT coding every year is a huge task, but 7206 is just a reporting form. How hard can it be?
by cowdogman
Wed Mar 27, 2024 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: Tax return was rejected, R0000-058-01. Anyone else experiencing this problem?
Replies: 29
Views: 2095

Re: Tax return was rejected, R0000-058-01. Anyone else experiencing this problem?

Couple suggestions:

1. If this is a problem only for the desktop, call TT and ask for a free copy of the web version. TT can give you a code to enter online. This was a workaround I saw people use in February when there was a similar 7206 issue.

2. Don't take the SEHID and e-file now--without form 7206. When you're back in town, file an amended return with the SEHID. I saw this suggestion a lot back in February. I know it is not an attractive option.
by cowdogman
Wed Mar 27, 2024 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: Robinhood 3% Rewards Visa Card
Replies: 20
Views: 1755

Re: Robinhood 3% Rewards Visa Card

So I put myself on the waiting list. In addition to my original questions, I now wonder what and why a waiting list. 🤷🏻‍♂️ "Foot in the door" sales tactic. It's a low hurdle to sign up for a waiting list, no committment. Once you are on the waiting list, you are more likely to complete the sign up process. Yeah, that makes sense. I still wonder if they'll pay 3% on fairly large federal income tax payments. Even with a lower credit limit, I could make multiple federal tax payments each quarter as I top off my credit limit on the card with multiple payments in between statement closing dates. Or will they limit the total amount of 3% points? The PayPal Mastercard (no fee) will pay 3% on federal income tax payments (up to your credi...
by cowdogman
Wed Mar 27, 2024 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Robinhood 3% Rewards Visa Card
Replies: 20
Views: 1755

Re: Robinhood 3% Rewards Visa Card

So I put myself on the waiting list. In addition to my original questions, I now wonder what and why a waiting list. 🤷🏻‍♂️ "Foot in the door" sales tactic. It's a low hurdle to sign up for a waiting list, no committment. Once you are on the waiting list, you are more likely to complete the sign up process. Yeah, that makes sense. I still wonder if they'll pay 3% on fairly large federal income tax payments. Even with a lower credit limit, I could make multiple federal tax payments each quarter as I top off my credit limit on the card with multiple payments in between statement closing dates. Or will they limit the total amount of 3% points? The PayPal Mastercard (no fee) will pay 3% on federal income tax payments (up to your credi...
by cowdogman
Wed Mar 27, 2024 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Dedicated Financial Computer Master Thread
Replies: 209
Views: 9793

Re: Dedicated Financial Computer Master Thread

My system cost less than $500, including the WAP for upstairs. I have some networking background. At one point in time you could have seen me hooking up protocol analyzers and perhaps even changing network code. It wasn't a major focus of my work most years, but I used to be pretty comfortable with the details (albeit not that recently). I have a friend also in the business that runs OpenWRT. Sorry, didn't mean to imply you didn't understand routers--just that (my guess is) that most people don't. Most people (again, my guess) who buy new routers nowadays set them up only to the extent they come up with a clever SSID and make sure there is a password for access--and then they forget about them until there is a problem. This thread is about...
by cowdogman
Tue Mar 26, 2024 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Dedicated Financial Computer Master Thread
Replies: 209
Views: 9793

Re: Dedicated Financial Computer Master Thread

TN_Boy wrote: Tue Mar 26, 2024 11:42 am The router I have has been reliable, runs everything at rated speeds, etc. I.e. no issues annoying enough to require me to either upgrade the router, or learn to setup and configure OpenWRT.
For me the benefit of OpenWRT is that it extends the useful life of routers. I have a few Linksys WRT3200ACM routers. They're great--good signal, fast thruput--but the last firmware update was 2020 and they are officially end of life. Why spend $500 to $1,500 on a mesh system when you can put one together at a fraction of the cost--and really understand how to configure a router.

Here's a video on the topic with a tech guy I like: https://www.youtube.com/watch?v=vVoZppb_FR0
by cowdogman
Tue Mar 26, 2024 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Dedicated Financial Computer Master Thread
Replies: 209
Views: 9793

Re: Dedicated Financial Computer Master Thread

TN_Boy wrote: Tue Mar 26, 2024 11:20 am Maybe, I just haven't looked at it. Some routers support more than one guest network. It isn't a big enough concern that I'm doing anything about it yet ... next router upgrade will be looking for that.
You can do that with OpenWRT.
by cowdogman
Tue Mar 26, 2024 11:18 am
Forum: Personal Finance (Not Investing)
Topic: Dedicated Financial Computer Master Thread
Replies: 209
Views: 9793

Re: Dedicated Financial Computer Master Thread

I also put "smart" devices (think Alexa powered stuff) on the guest network. The concern is that hardware like smart bulbs, doorbells, etc may be more vulnerable to being hacked than a properly maintained home computer. Since the smart devices are on a different network than our computers, should those devices be hacked, they cannot access our computer. Some smart devices might even ship with malware, so that advice seems reasonable especially if your computers share files. People need a router, Thanks for the details cowdogman , hard to believe some folks dont know that yet. Smart devices on a separate network is a standard recommendation. If my router supported three networks , I'd have main, guest, and IOTs network. Curious, c...
by cowdogman
Mon Mar 25, 2024 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Dedicated Financial Computer Master Thread
Replies: 209
Views: 9793

Re: Dedicated Financial Computer Master Thread

1. If your modem has two ethernet ports plug a non-sensitive computer into the modem and see what network connections are available. For example, can you see your neighbors' computers/devices? Can you see other computers devices in your household? If the answer to the first question is yes (which it is in my neighborhood).... hmmm.. I can scan from my laptop wireless and see my neighbors wireless AP but thats to be expected? When I log into my router with my router password, I can only see devices owned by family. you can see your neighbors devices logged on to your router? you can see your neighbors devices from your modem? that doesnt seem good We live in a new area with fiber cable where the houses have ethernet ports (at least one in e...
by cowdogman
Mon Mar 25, 2024 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Dedicated Financial Computer Master Thread
Replies: 209
Views: 9793

Re: Dedicated Financial Computer Master Thread

I should also add to this, that we never let anyone use our home network (before we moved Independent living). No friends, no relatives, no one. When pressed, I'll tell them that I managed corporate accounting and tax transactions for other businesses, and this was a fiduciary requirement. We set up a separate guest network for visitors. That is also the network where devices like smart outlets connect to the internet. can someone explain this home network vunerability? My setup is a single wireless/modem where multiple users can access with a password. no NAS or filesharing. Should I be concerned? Hard to answer without knowing the specifics of your setup but here are a couple things to check. 1. If your modem has two ethernet ports plug ...
by cowdogman
Mon Mar 25, 2024 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Dedicated Financial Computer Master Thread
Replies: 209
Views: 9793

Re: Dedicated Financial Computer Master Thread

BolderBoy wrote: Mon Mar 25, 2024 10:48 am
cowdogman wrote: Sun Mar 24, 2024 11:59 amQuestion of degrees of security I'm sure, but VM is not as safe as a separate computer. Viruses can break out of a VM and infect the host computer. VM might be good at protecting identity, but it is less good at protecting from viruses.
Data please. Can you give a reference to an example of this having happened and how? Thank you.
If you Google "Virtual Machine Escape" you'll see lots of articles.

Here's a somewhat recent one: https://www.securityweek.com/vmware-pat ... pwn-event/

My point was only that "VM is not as safe as a separate computer," but maybe it is safe enuf for some.
by cowdogman
Sun Mar 24, 2024 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Dedicated Financial Computer Master Thread
Replies: 209
Views: 9793

Re: Dedicated Financial Computer Master Thread

jebmke wrote: Sun Mar 24, 2024 11:42 am I sort of do this now - mainly for search (Google, Amazon ...). Much less now that I don't use them often but I always isolated them in a VM which got nuked when it closed.
Question of degrees of security I'm sure, but VM is not as safe as a separate computer. Viruses can break out of a VM and infect the host computer. VM might be good at protecting identity, but it is less good at protecting from viruses.

I regularly use some software from China that I'm confident is trying to compromise my computer. I would run it only on a dedicated computer on a dedicated network.
by cowdogman
Sun Mar 24, 2024 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Dedicated Financial Computer Master Thread
Replies: 209
Views: 9793

Re: Dedicated Financial Computer Master Thread

I turn this around. The machine I use for financial accounts is not dedicated for that purpose, but all access to financial accounts is done with a single machine. I manage that machine in a more secure manner than other machines. It is segregated on its own virtual network with an Ethernet cable connecting it to the router. I ensure virus signatures are up to date and reboot the machine before accessing a financial account. I minimize the number of software packages installed on the machine, and don't use it for general web surfing. I turn this around further. I have a laptop just for dodgy sites--no, not that kind. If I'm looking to download sheet music or other documents or test or use non-mainstream software, I use my dedicated (siloed...
by cowdogman
Fri Mar 22, 2024 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard i401k, opinion letter?
Replies: 13
Views: 1911

Re: Vanguard i401k, opinion letter?

Just spent 45 minutes on the phone with Vanguard. Spoke with two different reps, both in the small biz department. Both had zero clue about the 5500-EZ form, the IRS letter, or how I or they could easily access an electronic copy of the current plan document for my solo 401(k). Vanguard solo 401(k) customer service is hit and miss. Sometimes I'll get somebody very sharp and knowledgeable and sometimes not*. Bogleheads is often the best resource and/or wait a day and call Vanguard again (and hope you get somebody different). * Favorite examples: 1. "Your wife can't be on your plan. There is a reason it's called a 'solo 401(k)'." 2. "I've never heard anybody mention "controlled groups'." 3. "I've never heard of ...
by cowdogman
Fri Mar 22, 2024 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Dedicated Financial Computer Master Thread
Replies: 209
Views: 9793

Re: Dedicated Financial Computer Master Thread

I can see the arguments for using a separate dedicated computer, but think it would be overkill if you do the following. Use unique, long passwords Use 2FA with a security key, authenticator or Google Voice number Use a different username for each financial account Use a dedicated email address for financial accounts Check your accounts daily Get email AND text alerts of any trading activity or large transactions Have your brokerage/bank accounts customer services on speed dial Lock your brokerage accounts to the extent possible/practical Install anti-malware (e.g., Malwarebytes) on your computer Otherwise practice good computer hygiene--don't click on email links, visit dodgy sites, etc. I'm sure others will have additions to the above list.
by cowdogman
Sun Mar 17, 2024 10:42 am
Forum: Personal Finance (Not Investing)
Topic: New Form 7206 (SEHID) and TurboTax
Replies: 52
Views: 4821

Re: New Form 7206 (SEHID) and TurboTax

dan-h wrote: Sat Mar 16, 2024 9:42 pm
talzar mentions: "Form 7206 is e-filed as a PDF attachment. That's probably why the form is not supported by the desktop version of TurboTax."
Even tho it may be a pdf. TT should still be able to complete the form correctly.

I gave up waiting and filed with TT a week or two ago. I just now updated TT and checked--7206 is still incorrect in Line 1 (but with a footnote).
by cowdogman
Fri Mar 15, 2024 11:25 am
Forum: Personal Finance (Not Investing)
Topic: What's your primary credit card?
Replies: 117
Views: 10619

Re: What's your primary credit card?

jeffyscott wrote: Fri Mar 15, 2024 9:03 am
BF3000 wrote: Mon Mar 11, 2024 8:13 pm
azanon wrote: Mon Mar 11, 2024 9:56 am Alliant Visa Signature - 2.5% cash back on all purchases.
This. Because 2.5% > 2%.
From what I see on their website, in order to get 2.5%, Alliant requires an average daily balance of $1,000 or more in a checking account that pays nearly nothing (0.25%). Keeping an extra $1000 in checking offsets the extra 0.5% on about $8-10K of purchases per year.
Yes. I put about $60,000/year on the card and so the extra 0.5% is worth about $300/year (tax free)--vs. about $45 (taxable) in lost HY interest on the $1,000. Plus, as I often remind myself, HY savings accounts will not be paying 4.5% for very long (I think).

Not big dollars to be sure, but easy money.
by cowdogman
Thu Mar 14, 2024 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: What's your primary credit card?
Replies: 117
Views: 10619

Re: What's your primary credit card?

fittan wrote: Thu Mar 14, 2024 11:08 am
BF3000 wrote: Mon Mar 11, 2024 8:13 pm
azanon wrote: Mon Mar 11, 2024 9:56 am Alliant Visa Signature - 2.5% cash back on all purchases.
This. Because 2.5% > 2%.
Bank of America travel reward. Because 2.625% > 2.5%.
Alliant Visa Signature - 2.5% cash back on all purchases (up to $10,000 month). Because it's worth giving up 0,125% not to have $100,000+ stuck in a Merrill Edge account (and not to have to deal with BofA).
by cowdogman
Sun Mar 10, 2024 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Vendor unable to challenge customer's reversal of credit card charge
Replies: 29
Views: 3799

Re: Vendor unable to challenge customer's reversal of credit card charge

AAA wrote: Sat Mar 09, 2024 6:48 pm The problem is that the payment provider is telling him he has to talk to the bank that issued the card.
If the payment provider will not deal with the bank then it needs to be cut out of the middle. Otherwise disputed charges will always be charged back to your friend.

Take a look the following to see how payment processors address disputes: https://fingerprint.com/blog/how-major- ... 0processor.
by cowdogman
Sun Mar 10, 2024 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Termination of Unfunded Solo 401(k)
Replies: 18
Views: 1744

Re: Termination of Unfunded Solo 401(k)

Asciiichag wrote: Sun Mar 10, 2024 10:18 am
cowdogman wrote: Wed Jun 01, 2022 4:10 pm For the Plan Characteristic codes I am thinking: 2E, 2J, 2R, 2T, 3B, 3D and 3H.

3H is the only one on which I'm hesitating: "Plan sponsor(s) is (are) a member(s) of a controlled group, or affiliated service group (section 414(b), (c), or (m))."

Any follow up on which plan characteristics code you used when filing your 5500EZ?
Thanks!
Just filed for 2023: 2E 3D 2J 3B 2R 3H. Not sure why I was thinking 2T before.

2023 is the last year for 3H for me given the changes in Secure Act 2.0. viewtopic.php?p=7740927#p7740927
by cowdogman
Sat Mar 09, 2024 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Home office deduction - simplified vs. actual
Replies: 17
Views: 2039

Re: Home office deduction - simplified vs. actual

billaster wrote: Sat Mar 09, 2024 10:24 am As to 1, if you have your home office as principal place of business, you may as well take the home office deduction.
If the taxpayer meets the exclusive use test.

We take the home office deduction for my wife's biz but not mine--her space is exclusive, I just work out of the den. I realize I'm probably being conservative in this approach.
by cowdogman
Sat Mar 09, 2024 9:28 am
Forum: Personal Finance (Not Investing)
Topic: Home office deduction - simplified vs. actual
Replies: 17
Views: 2039

Re: Home office deduction - simplified vs. actual

billaster wrote: Wed Mar 06, 2024 5:07 pm Also note that for some people, the home office deduction is less valuable than the fact that you can deduct all mileage from your home to any client locations. Normally mileage from your home is considered normal commuting and non-deductible, but you can deduct it as business mileage if you are departing from your home office.
Are you saying:

1. a taxpayer has to take the home office deduction in order to deduct mileage for travel from home or

2. a taxpayer has to have a home office as his principal place of business in order to deduct mileage for travel from home or

3. both?

2 is true but I don't think 1 or 3 is.
by cowdogman
Sat Mar 09, 2024 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Multiple Solo 401(k)
Replies: 28
Views: 2108

Re: Multiple Solo 401(k)

> do a direct trustee-to-trustee transfer of all plan assets from Vanguard to the new custodian. Thanks but can you elaborate on this? If I get a check from Vanguard and then send mail it to the trustee is that not acceptable? Unfortunately, ACAT is not an option. And I am concerned that direct paper checks might get lost or delayed. That's not how it works. Vanguard will send you a check payable to "new plan provider FBO you". You will then mail that check to your new provider. FBO = for benefit of I believe (haven't done it myself) that if you call, say, Fidelity and say you would like to transfer your 401(k) plan (not account) to to Fidelity, Fidelity will provide you with the necessary paperwork and once that is completed, Fi...
by cowdogman
Tue Mar 05, 2024 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Home office deduction - simplified vs. actual
Replies: 17
Views: 2039

Re: Home office deduction - simplified vs. actual

I believe I will be using a home office for the next five or so years. Therefore, keeping things even, I will get an extra $1100 ($220 * 5) in my pocket. But, If I sell my home in say 6 years, I don't know what kind of taxes I would have to pay when my home is sold for a gain and I recapture the depreciation. My understanding is that the simplified approach doesn't depreciate your home. But if you do the actual approach, your home is depreciated regardless if you take the depreciation or not. I agree the simple approach is better for you. Or, at least, it's what I would do. You don't have to deal with recapture. I have a much larger home deduction (expensive house, high real property taxes, expensive insurance) and so go with the actual ca...
by cowdogman
Tue Mar 05, 2024 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: Home office deduction - simplified vs. actual
Replies: 17
Views: 2039

Re: Home office deduction - simplified vs. actual

BogleBall2 wrote: Tue Mar 05, 2024 6:17 pm Turbotax calculated the depreciation of $640 resulting in the $220 of actual tax savings.
Maybe I'm misunderstanding.

Under the non-simplified approach, you would take the calculated depreciation and add to it 5% of property taxes, home-wide maintenance, home insurance, utilities, etc. to come up with your home office deduction.

Under the simplified method, your deduction is $5 x the relevant square footage.

If you're saying depreciation alone is giving you a tax savings of $220, then your actual home office deduction savings are going to be higher when you add on property taxes, etc.

Or maybe you meant to say "Turbotax calculated the home office deduction of $640 resulting in the $220 of actual tax savings".
by cowdogman
Tue Mar 05, 2024 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Home office deduction - simplified vs. actual
Replies: 17
Views: 2039

Re: Home office deduction - simplified vs. actual

I saw this thread and I have similar questions, but they are slightly different from the original poster. I do my own taxes via TurboTax, so I'm not a tax expert. I own a small business where the home office is 165 SF (about 5% of the size of the home). I am thinking I may have the business for another five years. Perhaps I sell the house then or continue to live in it. Using Turbotax, if I use actuals, I save an $220 in taxes this year (over simplified method) and depreciate my home by $640. If I use the simplified method, I will pay an extra $220 in taxes, but don't have to recapture the depreciation wherever I sell the home. I am in the 22% tax bracket. Saving $220 in taxes isn't material to me. I am more concerned that whenever I sell ...
by cowdogman
Sun Mar 03, 2024 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: E*Trade solo 401(k) Form 5500-EZ filing
Replies: 17
Views: 1720

Re: E*Trade solo 401(k) Form 5500-EZ filing

I just filed my 5500-EZ on EFAST.

A couple things to note:

1. When you electronically sign the 5500-EZ you are NOT done. Go back to the main screen and click the Submit button and follow the prompts to submit the form.

2. Print the PDF after you submit--the PDF will have the signature line filled in.

After submitting you should immediately get an email with a confirm number from EFAST.

Who knows how many people sign and then think they are done!
by cowdogman
Sun Mar 03, 2024 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-Misc from W2 employer and self employment taxes
Replies: 4
Views: 370

Re: 1099G from W2 employer and self employment taxes

Which box(es) was(were) filled in on the 1099-G? Box 1 (unemployment compensation)?

If you FICA'ed out on wages you'll owe no more social security, tho you still may owe Medicare tax. However, unemployment comp is not generally subject to Social Security and Medicare taxes.
by cowdogman
Sat Mar 02, 2024 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Real Stories of College Savings: what was your plan, and what happened?
Replies: 98
Views: 7602

Re: Real Stories of College Savings: what was your plan, and what happened?

jameskay wrote: Sat Mar 02, 2024 10:45 am
Looking Back:
- Definitely dont regret using 529s but would have contributed less spread out over more years.
If I had to do it over I would allocated the same amount of money to 529s and a dedicated taxable account--50/50, 60/40, some allocation.
by cowdogman
Sat Mar 02, 2024 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Real Stories of College Savings: what was your plan, and what happened?
Replies: 98
Views: 7602

Re: Real Stories of College Savings: what was your plan, and what happened?

I was in a similar situation to you, but two kids. We "fully funded" each of our kid's 529 when born. By "fully fund" we decided to fund them in an amount equal to 4 years at the most expensive college at the time. If I remember correctly, it was Harvard at circa $50K/year (so $200K total). So we each put in the five year max initially for each son and then the max each year for each until we hit the goal. The money roughly doubled by the time for college (as did costs). First son went to a good (not top) private school but got a large scholarship and then he went on to grad school. His account is now empty, but we also took withdrawals against the scholarship at the end (pay tax on the withdrawal but not the penalty). I...
by cowdogman
Sat Mar 02, 2024 9:59 am
Forum: Personal Finance (Not Investing)
Topic: wire transfer out of Marcus account
Replies: 18
Views: 6522

Re: wire transfer out of Marcus account

greeny1217 wrote: Sat Mar 02, 2024 1:31 am what happened at the end? I am in the same situation, I need to withdraw money to escrow now!
See whoiskaiyo's post above. Same thing happened to me (and jhurff above).
by cowdogman
Thu Feb 29, 2024 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 822

Re: Solo 401(k)--No Longer a Controlled Group--Next Steps

Just thought of another option: I could login to Vanguard Small Business for the plan and change my participant status to "inactive"--as if I left employment but kept my assets in the plan. That would allow me to kick the can down the road and keep my Trad IRA balance at zero (for backdoor Roths). I could no longer make contributions to the 401(k), but I have no current business income and so that doesn't matter. That raises the question of whether an employee of a no longer affiliated employer can remain in the plan. The plan doc might have something to say about that, not sure. You could always become an employee of your spouse's company as a way around that. Or become an owner, director, or shareholder, so that the controlled ...
by cowdogman
Thu Feb 29, 2024 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 822

Re: Solo 401(k)--No Longer a Controlled Group--Next Steps

Your option #2 above seems like a nice end-run around the issue of how to switch from being an related employer to being your own plan sponsor, unless you need the extra contribution space or Backdoor Roth ability. Other than that it sounds reasonable to me assuming you don't want to remain in a controlled group. Just thought of another option: I could login to Vanguard Small Business for the plan and change my participant status to "inactive"--as if I left employment but kept my assets in the plan. That would allow me to kick the can down the road and keep my Trad IRA balance at zero (for backdoor Roths). I could no longer make contributions to the 401(k), but I have no current business income and so that doesn't matter. For suc...
by cowdogman
Thu Feb 29, 2024 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 822

Re: Solo 401(k)--No Longer a Controlled Group--Next Steps

MP123 wrote: Thu Feb 29, 2024 11:35 am Your option #2 above seems like a nice end-run around the issue of how to switch from being an related employer to being your own plan sponsor, unless you need the extra contribution space or Backdoor Roth ability.

Other than that it sounds reasonable to me assuming you don't want to remain in a controlled group.
Yes, 2 is probably safer and I am now fully retired, but absent this change in law I would have let the 401(k) continue in case I decided to work again.
by cowdogman
Thu Feb 29, 2024 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 822

Re: Solo 401(k)--No Longer a Controlled Group--Next Steps

terran wrote: Thu Feb 29, 2024 10:47 am Like I said, definitely over my pay grade. When you say the plan won't be terminated, is that because it will continue and be sponsored by your wife's business? So you're really wondering how to get your accounts out of your your wife's plan?
Yes, the current plan will continue as before (no changes) with my wife's business as the sponsor.

My question is how to comply with the change in law--either in setting up a new plan and transferring assets or doing in-service rollovers to a pre-tax IRA and Roth IRA. I know how to move the assets--just want to determine the right way to do so and all that that entails.
by cowdogman
Thu Feb 29, 2024 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 822

Re: Solo 401(k)--No Longer a Controlled Group--Next Steps

terran wrote: Thu Feb 29, 2024 10:26 am Then I think you're going to need to find out if the 1 year waiting period after closing a plan applies to you.
I don't think the "successor plan rule" applies here because the current plan is not being terminated. See Treasury Reg 1.401(k)-1(d)(4)

I think the "successor plan rule" might be an issue if my business were/continued to be in a controlled group, but now any future plan would be sponsored by a new "employer" (not part of the old "employer").

But I hadn't thought of this issue. Thanks.
by cowdogman
Thu Feb 29, 2024 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 822

Re: Solo 401(k)--No Longer a Controlled Group--Next Steps

terran wrote: Thu Feb 29, 2024 10:19 am The controlled group parts of this are above my pay grade, but just to clarify/confirm, you shouldn't be closing the old 401(k) plan (which requires waiting 1 year to open a new one) and opening a new one, but rather you should be amending the plan and opening new accounts within the same plan and transferring assets between accounts. Since there's no change in plan I wouldn't think there would a form 5500 change other than changing the feature codes if there are any changes there due to the amendment.
The only "Employers" allowed under the plan are the sponsoring Employer and Related Employers--and my business is neither (as of 1/1/24). So staying in the plan is not an option.
by cowdogman
Thu Feb 29, 2024 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k)--No Longer a Controlled Group--Next Steps
Replies: 12
Views: 822

Solo 401(k)--No Longer a Controlled Group--Next Steps

Several years ago my wife established/sponsored a solo 401(k) at Vanguard for her business—pre-tax and Roth. I have participated in the 401(k) for my wholly separate business as a "Related Employer" under the plan documents, which provide, in part, that a Related Employer is another employer in a controlled group. My wife and I were a controlled group both because (1) we live in a community property state and (2) we have a child under 21. Now under a provision of the Secure Act 2.0 (26 USC 414(b)(2)) effective (for us) January 1, 2024, both of those bases have been removed as creating a controlled group. So, my business is no longer in a controlled group and therefore no longer a Related Employer under the plan. Section 414(b)(2) ...
by cowdogman
Wed Feb 28, 2024 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: another 5500ez penalty tale - $210,000
Replies: 131
Views: 23891

Re: another 5500ez penalty tale - $210,000

WARNING! PSA to couples with businesses! I went to read up on when the $250k asset threshold was legislated and found that it was part of 120 Stat. 1057, passed in 2006, to confirm that it is a fixed amount and has never been adjusted for inflation. (It is and it hasn't.) https://www.govinfo.gov/content/pkg/STATUTE-120/pdf/STATUTE-120-Pg780.pdf#page=278 However, further down the page in the definition of a "one-participant plan," one of the conditions to be met states "(a)(2)(D)) the plan does not cover a business that is a member of an affiliated service group, a controlled group of corporations, or a group of businesses under common control;" My reading (disclaimer: IANAL) is that if two spouses are a controlled group...
by cowdogman
Wed Feb 28, 2024 10:53 am
Forum: Personal Finance (Not Investing)
Topic: another 5500ez penalty tale - $210,000
Replies: 131
Views: 23891

Re: another 5500ez penalty tale - $210,000

hvaclorax wrote: Tue Feb 27, 2024 10:38 pm Is there a statute of limitations for this problem?
If one files a 5500-EZ there is a 3-year statute of limitations for the IRS to question it (which is why some people file even if plan assets are less than $250,000).

There is no statute of limitations for a failure to file--same as for a 1040.
by cowdogman
Tue Feb 27, 2024 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Tax Advice - Partial Inservice Rollover - Oh My! [Turbo Tax]
Replies: 19
Views: 1152

Re: Tax Advice - Partial Inservice Rollover - Oh My!

Should I do one 3 separate entries in TT? Pre-tax, after-tax, Roth 401k? Yes, the suggestion is you split the code G 1099-R into two so there are three 1099-Rs entered into TT that in total equal the two 1099-Rs you actually received. For 1099-R code G - - 1st split 1099-R would be for the traditional 401k rollover where you answer everything was rolled over to a TIRA. - 2nd split 2099-R would be for the after-tax 401k rollover to Roth IRA. You have to tell TT that (1) the 401k funds are after tax (box 5 entry) and (2) the rollover was to a Roth IRA. If I divide off the after-tax on 1099-R G, I assume I will be changing the Gross distribution amounts in Box 1 on TT? The Gross distribution on G was $393K = but I will change it to reflect $3...
by cowdogman
Tue Feb 27, 2024 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Tax Advice - Partial Inservice Rollover - Oh My! [Turbo Tax]
Replies: 19
Views: 1152

Re: Tax Advice - Partial Inservice Rollover - Oh My!

shelterinplace wrote: Tue Feb 27, 2024 10:51 am I started by entering the 1099-R Coded G which shows the pre-tax and after-tax monies. The pre-tax went to my TIRA and the after-tax went to my Roth IRA.
See my post above.
by cowdogman
Tue Feb 27, 2024 10:49 am
Forum: Personal Finance (Not Investing)
Topic: Tax Advice - Partial Inservice Rollover - Oh My! [Turbo Tax]
Replies: 19
Views: 1152

Re: Tax Advice - Partial Inservice Rollover - Oh My!

You got two 1099's. You enter the two forms separately even though the money for both of them came from the same place. The answer to Q2 above will be "Yes" for one of them and "no" for the other one. Yes, I got 2 1099-Rs. The one Coded G shows both pre-tax and after-tax monies. The one Coded H has Roth 401k monies. Should I do one 3 separate entries in TT? Pre-tax, after-tax, Roth 401k? Thank you! You should talk to Fidelity. Based on the above it sounds like the Roth 401(k) was rolled to the Roth IRA and the Trad 401(k) (both pretax and after tax) was rolled to the Trad IRA (which is allowable notwithstanding what you said Fidelity said). If so, the tax consequence should be zero. I would check your records and also g...
by cowdogman
Tue Feb 27, 2024 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Tax Advice - Partial Inservice Rollover - Oh My! [Turbo Tax]
Replies: 19
Views: 1152

Re: Tax Advice - Partial Inservice Rollover - Oh My!

As noted above, you should enter the two 1099s separately. For the Roth conversion (it's not a rollover) TT will ask what your *basis* is in the amount converted--enter the amount transferred to the Roth. The resulting tax should be zero.

For the above I'm assuming Fidelity did what they should have done--rollover the pretax amount and convert the after-tax amount.
by cowdogman
Sun Feb 25, 2024 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Adjusted Basis in House--IRS Issues
Replies: 8
Views: 1070

Re: Adjusted Basis in House--IRS Issues

Suggest you review Irs Pub 523 "Selling Your Home". Some of the work you did might be considered repairs rather than improvements. For Example: Repairs done as part of larger project. "You can include repair-type work if it is done as part of an extensive remodeling or restoration job. For example, replacing broken windowpanes is a repair, but replacing the same window as part of a project of replacing all the windows in your home counts as an improvement." "Examples of improvements you CAN’T include in your basis. You can’t include: Any costs of repairs or maintenance that are necessary to keep your home in good condition but don’t add to its value or prolong its life. Examples include painting (interior or exteri...
by cowdogman
Sat Feb 24, 2024 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: Adjusted Basis in House--IRS Issues
Replies: 8
Views: 1070

Adjusted Basis in House--IRS Issues

We've been in our house about 14 years. We will have a substantial gain when we sell (fingers crossed), well over the $500,000 exclusion. I'm pretty good about keeping receipts for home improvements and keeping track in Quicken of expenditures that increase basis, but I have not ever (until now) sorted through the receipts and compared them to what I have in Quicken. According to Quicken we have had about $175,000 in improvements over those 14 years, and I have been able to find receipts so far for about $170,000 of that (plus a handful of receipts that I didn't categorize as home improvements in Quicken). The large majority of the missing $5,000 of receipts relates to expenses at Home Depot and a local nursery. My questions: 1. Has anybody...
by cowdogman
Sat Feb 24, 2024 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: [Using PayPal to pay bills and earn 5% on credit cards]
Replies: 603
Views: 90434

Re: [Using PayPal to pay bills and earn 5% on credit cards]

Both of my PPBPs are gone--city water bill and property tax (they were there a couple weeks ago). It was good while it lasted--and I'm surprised it lasted so long.