Search found 13938 matches

by Spirit Rider
Thu Feb 04, 2021 5:24 pm
Forum: Personal Investments
Topic: Best way to consolidating accounts from prior employers (403b, 457b, 401a, roth, rollover)
Replies: 8
Views: 591

Re: Best way to consolidating accounts from prior employers (403b, 457b, 401a, roth, rollover)

Some things to think about. Only the 401a plans are guaranteed to be ERISA Title I qualified for full anti-alienation asset protection. Most 403b plans are not ERISA plans. No 457b plans are ERISA plans. 401a/401k/403b in-service rollovers are allowed no later than age 59 1/2. 457b in-service rollov...
by Spirit Rider
Thu Feb 04, 2021 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Fixing Excess HSA Contribution
Replies: 25
Views: 1489

Re: Fixing Excess HSA Contribution

Yes, the steps are: Do nothing with the HSA/custodian. This is purely between you and the IRS. The excess contribution and earnings remain in the plan. If the excess contribution was by salary reduction, report it for 2020 as other income. File a 2020 Form 5329 reporting the 2020 excess $15 HSA cont...
by Spirit Rider
Thu Feb 04, 2021 12:42 pm
Forum: Personal Consumer Issues
Topic: Using an unlicensed painting contractor? (California)
Replies: 49
Views: 2118

Re: Using an unlicensed painting contractor? (California)

The state determined that licensure is important enough in this profession that they regulate it. What makes you qualified to determine that the state is incorrect? Some licensing requirements in many states are driven by the relevant Cabal/Cartel to limit supply and artificially inflate prices. Ob...
by Spirit Rider
Wed Feb 03, 2021 10:37 pm
Forum: Personal Finance (Not Investing)
Topic: CPA woes - SEP-IRA to SIMPLE IRA
Replies: 9
Views: 586

Re: CPA woes - SEP-IRA to SIMPLE IRA

A one-participant 401k allows an up to 100% of compensation employee deferral not to exceed the employee deferral limit (2020 = $19.5K) across all 401k, 403b and SIMPLE IRA plans. It also allows the same employer contribution up to 25% of compensation as a SEP IRA. Combined they can not exceed the l...
by Spirit Rider
Tue Feb 02, 2021 7:37 pm
Forum: Personal Investments
Topic: Amount of earned income counted towards Roth IRA
Replies: 22
Views: 1388

Re: Amount of earned income counted towards Roth IRA

Maybe, the OP is only working one pay period this year.
by Spirit Rider
Tue Feb 02, 2021 7:13 pm
Forum: Personal Investments
Topic: Amount of earned income counted towards Roth IRA
Replies: 22
Views: 1388

Re: Amount of earned income counted towards Roth IRA

See IRS Publication 590-A What is Compensation? It is yearly W-2 (Box 1 Wages - Box 11) + (business profit - 1/2 SE tax - self-employed pre-tax deferrals and employer contributions). Note: W-2 wages are reduced by pre-tax employee deferrals, HSA contributions by salary reduction and other Section 12...
by Spirit Rider
Tue Feb 02, 2021 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Opened 2 Solo 401(k) by mistake. What to do now?
Replies: 25
Views: 909

Re: Opened 2 Solo 401(k) by mistake. What to do now?

Under what basis would an in-service rollover from the Vanguard Individual 401k be allowed with no distributable assets?
by Spirit Rider
Tue Feb 02, 2021 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: HSA: Received 1099SA from old HSA provider
Replies: 9
Views: 592

Re: HSA: Received 1099SA from old HSA provider

It is extremely rare for a properly executed and reported HSA 60-day HSA rollover to result in any communication from the IRS. Technically, it usually is in the form of a CP 2000 Notice. Unfortunately to the uninitiated, in the IRS' warm and fuzzy nature this Notice takes the form of; "you are ...
by Spirit Rider
Tue Feb 02, 2021 5:22 pm
Forum: Investing - Theory, News & General
Topic: 401K Contributions. Why a percentage?
Replies: 29
Views: 1934

Re: 401K Contributions. Why a percentage?

Using deferral election percentages has nothing to do with ADP testing. The ADP percentages are calculated from end of the year totals for deferrals and compensation. Other than the total deferrals, the elections during the year are irrelevant.
by Spirit Rider
Tue Feb 02, 2021 5:15 pm
Forum: Personal Investments
Topic: 529 Transfer
Replies: 2
Views: 263

Re: 529 Transfer

Anyone can do one rollover per twelve (12) month period between 529 plans. You will have to check with the new state, but it would be very unlikely that a rollover qualifies for a deduction. However, it is very common if you have received deductions for the contributions to the current 529. For that...
by Spirit Rider
Tue Feb 02, 2021 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Opened 2 Solo 401(k) by mistake. What to do now?
Replies: 25
Views: 909

Re: Opened 2 Solo 401(k) by mistake. What to do now?

Sounds like you will be trying to "amend Schwab to Vanguard". I'm still unsure how that would work to merge two existing plans, but if it does, great. The OP would not be trying to merge two existing plans, but rather amending the original Vanguard Adoption Agreement to amend the Schwab p...
by Spirit Rider
Tue Feb 02, 2021 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Opened 2 Solo 401(k) by mistake. What to do now?
Replies: 25
Views: 909

Re: Opened 2 Solo 401(k) by mistake. What to do now?

I think so, too. So just to be clear, I will: 1. Ask Vanguard to change the original adoption agreement to "amendment." (I hope they wouldn't refuse to do that!) 2. Liquidate all my assets at Schwab. (I'll have to take a loss on some positions. But it's better than having to deal with the...
by Spirit Rider
Tue Feb 02, 2021 4:40 pm
Forum: Personal Finance (Not Investing)
Topic: Opened 2 Solo 401(k) by mistake. What to do now?
Replies: 25
Views: 909

Re: Opened 2 Solo 401(k) by mistake. What to do now?

On 2nd thought, can I amend Schwab to Vanguard, then just roll Schwab assets over to a traditional IRA at Schwab? That way I don't have to deal with Fidelity and everything will be done. No, you can only rollover one-participant 401k plan non-distributable assets upon termination. Then you would be...
by Spirit Rider
Tue Feb 02, 2021 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Opened 2 Solo 401(k) by mistake. What to do now?
Replies: 25
Views: 909

Re: Opened 2 Solo 401(k) by mistake. What to do now?

Thank you, Spirit Rider. The problem is, Vanguard does not allow transfer outside assets in so what do I do with the assets in Schwab account? That's why I'm thinking open another i401(k) at Fidelity (I don't have Roth. They are all traditional.) You are incorrect. Vanguard does not allow rollovers...
by Spirit Rider
Tue Feb 02, 2021 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Opened 2 Solo 401(k) by mistake. What to do now?
Replies: 25
Views: 909

Re: Opened 2 Solo 401(k) by mistake. What to do now?

Unfortunately, I've already contributed to Vanguard. :oops: But I stop contributing to Schwab after Vanguard account was open. A good start. Amending the Schwab Individual 401k to Vanguard is the best option, because it remains the same exact plan and requires no plan termination . The reason I wan...
by Spirit Rider
Tue Feb 02, 2021 11:53 am
Forum: Personal Consumer Issues
Topic: Car hit in parking lot (no note)
Replies: 70
Views: 6389

Re: Car hit in parking lot (no note)

I was always under the impression that this type of damage, "hit and run", is covered under your comprehensive insurance if you have it. You may have a deductible involved there also. I recommend you check with your insurance company. I seem to remember my daughter in the early 1990s bein...
by Spirit Rider
Mon Feb 01, 2021 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: SEP-IRA S-Corp contribution limit
Replies: 2
Views: 152

Re: SEP-IRA S-Corp contribution limit

Small correction, a maximum employer contribution is 25% of compensation for all employees, but as correctly pointed out by @MP123 For W-2 employees, it is W-2 Box 1* + any Box 12 employee deferrals**. A employer contribution for a self-employed individual is calculated as 20% of business profit - 1...
by Spirit Rider
Mon Feb 01, 2021 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: Is it me or a lot of 2020 tax forms late this year?
Replies: 45
Views: 4170

Re: Is it me or a lot of 2020 tax forms late this year?

Does anyone know why this is? Shouldn't these things be "easy" to auto generate? In the case of some mutual fund's Form 1099-DIV, certain security types deliver or amend their dividend information late. The change to a 2/16 1099-DIV reporting date has actually improved things a lot. While...
by Spirit Rider
Mon Feb 01, 2021 5:00 pm
Forum: Personal Consumer Issues
Topic: Car hit in parking lot (no note)
Replies: 70
Views: 6389

Re: Car hit in parking lot (no note)

OP. This should clearly be settled under your uninsured motorist coverage. In my state the deductible would be zero. Doesn’t WA limit the deductible to $300? You may need to push your insurance company. In many states, damage does not fall under uninsured motorist coverage. Unless the driver causin...
by Spirit Rider
Mon Feb 01, 2021 7:54 am
Forum: Personal Finance (Not Investing)
Topic: Can you have SEP contribution from S-Corp and sole prop?
Replies: 3
Views: 249

Re: Can you have SEP contribution from S-Corp and sole prop?

Under the tax code, your sole proprietorship and S-Corp are considered a controlled group. As such they are considered one employer for employer retirement plan purposes. Additionally, Form 5305-SEP, page 1 indirectly infers it is permitted with the absence of a negative: When not to use Form 5305-S...
by Spirit Rider
Sun Jan 31, 2021 11:09 pm
Forum: Personal Finance (Not Investing)
Topic: SEP deduction for S-Corp cash basis
Replies: 1
Views: 146

Re: SEP deduction for S-Corp cash basis

This information is readily available. Yes, Form 1120S Instructions. Employer contributions deposited by the businesses tax filing deadline including extensions are deducted for the tax year and not the deposit year. Publication 560. Accounting basis is only relevant to income, expenses and profit. ...
by Spirit Rider
Sun Jan 31, 2021 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA for S-Corp <3 years old?
Replies: 5
Views: 173

Re: SEP IRA for S-Corp <3 years old?

In addition, my W2 income (for my 2020 payroll from this s-corp) I did not enter "Retirement plan" on line 13 of the W2. Does this restrict me from using the SEP IRA for my 2020 taxes? No, the purpose of that checkbox is for whether you are considered an "active participant" in ...
by Spirit Rider
Sun Jan 31, 2021 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA for S-Corp <3 years old?
Replies: 5
Views: 173

Re: SEP IRA for S-Corp <3 years old?

The three-year requirement is optional when adopting the SEP IRA plan. If you have no employees or any immediate plan you can elect no employee eligiblity requirements. It certainly sounds like it would be the same employer unless you filed for a different EIN. Even then it would be a controlled gro...
by Spirit Rider
Sun Jan 31, 2021 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: steps to become independent contractor?
Replies: 48
Views: 2319

Re: steps to become independent contractor?

As I already stated and contrary to @vitaflo's blanket assertion. This is dependent on the specific state and/or local jurisdiction. There is no substitute for checking your specific locations.

Federal tax returns are not necessarily the only issue.
by Spirit Rider
Sun Jan 31, 2021 8:40 am
Forum: Personal Investments
Topic: Optimal HSA strategy in retirement
Replies: 46
Views: 3605

Re: Optimal HSA strategy in retirement

You need to start spending down that HSA because at some point, the balance will become too large to offset with medical expenses. If you don't use your HSA, the amount will be fully taxable to your hiers. At 65 they won't need to offset with QMEs. This bucket will not really be any different from ...
by Spirit Rider
Sun Jan 31, 2021 8:08 am
Forum: Personal Finance (Not Investing)
Topic: steps to become independent contractor?
Replies: 48
Views: 2319

Re: steps to become independent contractor?

Depends on if you are using; your name, a fictitious name or a doing business as DBA name and the state's and/or local jurisdiction's business registration requirements. As a general rule you must register the latter two, but not necessarily the former. Also, in many cases can not register if that n...
by Spirit Rider
Sat Jan 30, 2021 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: steps to become independent contractor?
Replies: 48
Views: 2319

Re: steps to become independent contractor?

I've worked in and employed people in IT for a very long time... Never seen an individual T&M contractor that would ever qualify if push come to shove (and yeah I have been one also). You can say anything you want, but that doesn't make it true. I hired dozens of ICs performing only professiona...
by Spirit Rider
Sat Jan 30, 2021 10:06 pm
Forum: Personal Investments
Topic: 401K transfer while employed
Replies: 14
Views: 1174

Re: 401K transfer while employed

My megacorp allowed in-service rollovers of employee contributions , vested employer match, after-tax contributions, and associated earnings. Not if those employee contributions were deferrals. An employer only has discretion on in-service rollovers that are allowed. As already pointed out the tax ...
by Spirit Rider
Sat Jan 30, 2021 11:38 am
Forum: Personal Finance (Not Investing)
Topic: steps to become independent contractor?
Replies: 48
Views: 2319

Re: steps to become independent contractor?

For a retiree situation, perhaps consider being a part-time WFH employee. That's what I did. Simpler, but I still set my own hours and can refuse anything I don't want to do. Although the contractor route is probably more lucrative. All depends on what your employer is open to. There are two very i...
by Spirit Rider
Fri Jan 29, 2021 9:52 pm
Forum: Personal Investments
Topic: Protect rollover IRA from potential lawsuit
Replies: 44
Views: 9303

Re: Protect rollover IRA from potential lawsuit

CorduroyGivenToFly wrote: Fri Jan 29, 2021 8:30 pm Is there a distinction between ERISA for funds in the Brokerage Window (I.e. Fidelity BrokerageLink) portion of the plan vs the regular portion?
No.

Balances in all 401k accounts receive full ERISA anti-alienation asset protection.
by Spirit Rider
Fri Jan 29, 2021 9:42 pm
Forum: Personal Investments
Topic: 401K transfer while employed
Replies: 14
Views: 1174

Re: 401K transfer while employed

I would add that it is only vested employer contributions that can be rolled. Even that is subject to the rules of the plan.
by Spirit Rider
Thu Jan 28, 2021 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: S Corp and QBI Deduction question
Replies: 14
Views: 1004

Re: S Corp and QBI Deduction question

Spirit Rider, You state in most cases. But when income exceeds $450k for a non-SSTB, is not the QBI deduction limited to 50% of the amount of W2 wages paid? For example, if one had $1.5 million in S corp income, paid out $750k in salaries and took a $750k distribution, a sole proprietor could not b...
by Spirit Rider
Thu Jan 28, 2021 8:39 am
Forum: Personal Finance (Not Investing)
Topic: S Corp and QBI Deduction question
Replies: 14
Views: 1004

Re: S Corp and QBI Deduction question

You can pass the 199A deduction information from your S Corp to your 1040. Why do you think you need to become a sole proprietor? Also, as a physician you’re subject to SSTB limitations, so be aware of that. I suggest you hire a tax accountant or get a new one. The OP knows exactly what they are ta...
by Spirit Rider
Wed Jan 27, 2021 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Tax on UTMA dividends when kid turned 18
Replies: 5
Views: 410

Re: Tax on UTMA dividends when kid turned 18

He needs to file return so that he can do roth IRA (he did work and had some earned income W2) A tax return is not required in order to make IRA contributions. The W-2 itself is all the proof of IRA compensation needed. There no need for him to file a tax return unless he meets one of the filing re...
by Spirit Rider
Wed Jan 27, 2021 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: Tax on UTMA dividends when kid turned 18
Replies: 5
Views: 410

Re: Tax on UTMA dividends when kid turned 18

Are you sure he is required to file a tax return? Being an adult is not one of the tax filing requirements.

Not to mention, only KY and SD have an 18 UTMA required age of termination. Also SC, because they are the lone UGMA holdout.
by Spirit Rider
Wed Jan 27, 2021 4:40 pm
Forum: Personal Consumer Issues
Topic: Does TV Commercials, Online Ads and Telemarketing Affect Your Consumption Choices?
Replies: 73
Views: 2833

Re: Does TV Commercials, Online Ads and Telemarketing Affect Your Consumption Choices?

Does TV Commercials, Online Ads and Telemarketing Affect Your Consumption Choices? There is no way that anyone including you can answer this question with any degree of certainty. You have absolutely no idea what truly goes into your ultimate conscious and subconscious decision making processes. Yo...
by Spirit Rider
Wed Jan 27, 2021 4:23 pm
Forum: Personal Investments
Topic: 529 kindergarten doublecheck
Replies: 4
Views: 365

Re: 529 kindergarten doublecheck

529 qualified distributions must be in the year of the expense. So if you have two separate expenses that occur in two separate years. You can take distributions up to $10K/year that are considered federal tax-free qualified distributions. However, there is a significant minority of states that have...
by Spirit Rider
Wed Jan 27, 2021 3:56 pm
Forum: Investing - Theory, News & General
Topic: wash sale substantially identical question(s)
Replies: 101
Views: 3530

Re: wash sale substantially identical question(s)

I also want to point out that what Vanguard says is almost exactly in line with what alex_686 has said on this forum repeatedly. I think he deserves some credit for that. Some may still want to label it as too conservative but Vanguard saying something has some weight behind it. Hardly, a financial...
by Spirit Rider
Wed Jan 27, 2021 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: S Corp and QBI Deduction question
Replies: 14
Views: 1004

Re: S Corp and QBI Deduction question

Only you can determine this by estimating the net tax savings over the period of time and whether it is worth it to you. One thing to keep in mind. You can not elect sub-chapter S tax status for five years after you have revoked it. Caveat: While I am reasonably knowledgeable about tax-advantaged ac...
by Spirit Rider
Wed Jan 27, 2021 12:57 am
Forum: Personal Investments
Topic: IRA 60 day roll over, limited by source or destination?
Replies: 11
Views: 838

Re: IRA 60 day roll over, limited by source or destination?

Rollovers are counted by distributions not contributions for purposes of the rule.

1 distribution, 2 contributions = 1 rollover.
2 distributions, 1 contribution = 2 rollovers.
by Spirit Rider
Tue Jan 26, 2021 11:29 pm
Forum: Personal Finance (Not Investing)
Topic: Claiming social security at 70 and half
Replies: 18
Views: 2824

Re: Claiming social security at 70 and half

Most employers contribute some HSA amount monthly to entice the use of CDHP plan. Do you need to inform HR to stop the employer contribution 6 months in advance as well. Not necessarily. Your maximum HSA yearly contribution limit is based on your months of HSA eligibility. It does not matter who th...
by Spirit Rider
Tue Jan 26, 2021 1:04 am
Forum: Personal Investments
Topic: Self-Directed IRA vs. Solo 401k
Replies: 10
Views: 733

Re: Self-Directed IRA vs. Solo 401k

I should mention that I have a SEP IRA (contributed 25% of profit in 2019) and a SIMPLE (no contribution yet) - both opened in 2020. Originally I was going to contribute to SIMPLE for 2019, but I missed the calendar deadline (I did a tax extension until Oct. 15). Since I have an employer sponsored ...
by Spirit Rider
Mon Jan 25, 2021 8:01 pm
Forum: Investing - Theory, News & General
Topic: wash sale substantially identical question(s)
Replies: 101
Views: 3530

Re: wash sale substantially identical question(s)

The only place I have ever seen this is in this one publication. It is never repeated. This feels like a mistake that got inserted this once, and then was quietly dropped. It was not just inserted once and quietly dropped. It was repeated ten (10) times from 2000 - 2009. You find it convenient to s...
by Spirit Rider
Mon Jan 25, 2021 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Any way to retroactively fix 8606 forms?
Replies: 20
Views: 1638

Re: Any way to retroactively fix 8606 forms?

Huh?

There is no harm in not filing an unrequired Form 8606, but a benefit of doing so.

Your example is do the right thing or be an immoral unethical grifter, not to mention probably in violation of the insurance contract if not criminal fraud.
by Spirit Rider
Mon Jan 25, 2021 9:42 am
Forum: Investing - Theory, News & General
Topic: wash sale substantially identical question(s)
Replies: 101
Views: 3530

Re: wash sale substantially identical question(s)

I am not aware of any cases of different equity securities being treated as "substantially identical" except for different share classes of the same equity security, options, future contracts, etc... VTSAX and VTI certainly would be substantially identical. VTSAX and another ETF tracking t...
by Spirit Rider
Mon Jan 25, 2021 8:06 am
Forum: Personal Investments
Topic: What to do? High fee retirement accountss
Replies: 17
Views: 1110

Re: What to do? High fee retirement accountss

You can certainly check, but it is unlikely that either of the employer retirement plans will accept rollovers from separated participants. If she has done a Roth conversion of non-deductible traditional IRA contributions this year. Rolling over the 403b and 457b to a traditional IRA would make most...
by Spirit Rider
Sun Jan 24, 2021 7:00 pm
Forum: Personal Investments
Topic: Can you have both 529 and UGMA plan
Replies: 5
Views: 332

Re: Can you have both 529 and UGMA plan

Correct.

Texas adopted the model UTMA act on 9/1/1995
by Spirit Rider
Sun Jan 24, 2021 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Any way to retroactively fix 8606 forms?
Replies: 20
Views: 1638

Re: Any way to retroactively fix 8606 forms?

My own view is that it's a good idea to file Form 8606 every year if you have tIRA basis carrying forward, even if there is no requirement to file. @MarkNYC makes a very compelling case for filing Form 8606 every year when you have non-deductible basis. @mauwong, I want to revise my previous post. ...
by Spirit Rider
Sun Jan 24, 2021 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 502
Views: 226625

Re: The Mega Backdoor Roth IRA

Correct
by Spirit Rider
Sun Jan 24, 2021 6:20 pm
Forum: Personal Investments
Topic: Can you have both 529 and UGMA plan
Replies: 5
Views: 332

Re: Can you have both 529 and UGMA plan

First, only SC supports new UGMA accounts. Texas and all other states adopted UTMA accounts.

You can have UTMA accounts and 529 accounts for the same individual, subject to gift tax reporting rules for the combined contributions.