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2

403b plans are used by school districts, colleges and universities, nonprofit hospitals, charitable foundations and the like for their employees while 401k plans are used by most everybody else. I would suspect that a school district etc could used a 401k plan instead of a 403b plan if it chose to do so, but the reverse direction is most likely forbidden: a ...


0

If the gift was stock that they have owned for years there can be one hitch: The basis of the stock doesn't reset when it is gifted. For example if grandparents have owned stock that is currently worth $10,000 today, but they bought it decades ago when it only cost them $1,000; then if the new owner sells it today they will have a gain of $9,000. The clock ...


3

The easiest calculation is to determine what is the amount you have to contribute to get the maximum match, and what will that match be. In your case: 100% of 2% = 2.00% 40% of 2% = 0.80% 25% of 1% = 0.25% --------------------- 5% 3.05% If you put in 5% of your paycheck into the 401K you get a 3.05% match. If you put in 4% of your ...


11

That means if you contribute $1000, and that is equal to 5% of your salary (salary of $20k): $400 = 100% match = $400 $400 = 40% match = $160 $200 = 25% match = $50 ------------------------ $1000 = $610 match It's basically the same as taxes; you can think of it as the marginal rate. So, for the "40% on the next 2%", that means that "first take the ...


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UPDATE for anyone else in this situation: the payment went through! As I said in the original post, my PayPal purchases don't show up on my bank account until at least a day later, and I just checked and the total PayPal amount had been deducted. (My account does not have overdraft coverage, so it says transactions with insufficient funds will be denied, ...


2

"I don't know if it's common or necessary to include capital stock as a liability?" Yes, if you look at the title of the nonasset part of the balance sheet it actually is titled "Liabilities and Shareholders' Equity". Your capital stock is a component of Equity. This sounds like it was reported in a reasonable manner. "$2,582 listed under Loans from ...


0

Existing debt? Assistance repaying that is usually called "your paycheck. " Larger companies do often have programs which will help pay for additional degrees/classes which will improve your value to the company. My own employer has several, from reimbursement after getting a good grade to full scholarship with time off; obviously, the more generous the ...


1

If you are living near a land-grant university, you might be able to find help from the university's Extension Service. In many land-grant universities (the land grants were given to universities formed for the purpose of improving "agricultural and mechanical arts"), the Extension Services have expanded beyond farm-related services to include ...


0

In addition to a fee-only advisor, brought up by dg99, you could consider asking your questions on message boards such as Bogleheads.org. I have found the advice amazing, obviously conflict-free, and free.


2

First off, you should contact your health plan administrator as soon as possible. Different plans may interact differently with Medicare; any advice we could provide here would be tentative at best. Some of the issues you may face: If you have two plans (Medicare and a private insurer), one should be Primary and one Secondary. That means that, say you ...


2

As I'm sure you are reading in Hull's classic, the basic valuation of bonds depends on the chance of entity defaulting on those bonds. Let's start with just looking at the US. The United States has a big advantage over corporations in issuing debt as it also prints the same currency that the debt is denominated in. This makes it much easier not to default ...


0

I don't think so. There is a provision in ObamaCare called "community rating" that applies starting in 2014. Insurance companies must place individual and small group plans into a pool of people from the same geographical region. The same plan must cost the same for all small businesses from the same region. So having employees who have high costs will not ...


11

No they do not. From form 1040 instructions, a single, non-blind dependent under age 65 must file if the following are true: You must file a return if any of the following apply. Your unearned income was over $1,000. Your earned income was over $6,200. Your gross income was more than the larger of— $1,000, or Your earned income (up to ...


1

Do not mix personal accounts and corporate accounts. If you're paid as your self person - this money belongs to you, not the corporation. You can contribute it to the corporation, but it is another tax event and you should understand fully the consequences. Talk to a tax adviser (EA/CPA licensed in your State). If they pay to you personally (1099) - it goes ...


4

I will give a slightly different answer which is actually an addendum to JoeTaxpayer's (soon-to-be-edited) answer. Do NOT go to your financial advisor and ask him "How do I go about transferring my Roth IRA to ...."? where .... is whichever broker or mutual fund family that you have chosen from the list that Joe has suggested. Instead, go to the website of ...


1

What you are looking for is a Money Coach or a Personal Finance Coach. From mymoneycoach.com: "Money Coach: Everyone uses money, but few people fully understand how to use it wisely. To be debt free and enjoy a comfortable lifestyle takes special skills. Money coaches provide solutions for household budgeting, investing, using credit wisely, and saving for ...


0

This will depend on how your and your bank have agreed to handle overdrafts for that account: Some people have it setup so that you would have a negative balance funds from another account type will bring the balance back to zero. You can also setup an automatic loan to cover these situations. Of course there can be monthly limits on the number of ...


1

I've seen several questions that state CA taxes worldwide income for anytime spent living in CA. Where did you see that? That's not true. CA taxes worldwide income of its residents. As almost any other State in the Union.


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Generally, it doesn't matter which year the original contribution is. If you withdraw - you have 60 days to roll over to (the same or) different account, and you can only do it once a year. If 60 days passed - it is considered distribution. What you can do instead is to reverse your contribution. That requires withdrawing not only the full contributed ...


7

What are reasonable administrative fees for an IRA? was recently discussed here. My answer was zero. An IRA is not an investment. It's a container representing the tax status of an account. Once you decide what to actually invest it in, you'll likely incur additional fees. Mutual funds, for instance can range from .05% per year to 2.00% or more. In your ...


1

Many brokerage accounts for trading stocks are covered under SIPC insurance, which is up to $500,000 You can also have multiple checking and savings accounts with the $250,000 balance split up. You can also check your bank's capital ratio on the FDIC website, somewhere. The FDIC won't move on them unless it falls under 3% and even then FDIC will force ...


4

You do not need to report gifts from US residents (US citizens/green card holders/tax residents due to length of stay) since filing gift tax return is their responsibility. In case of foreigners you need to report gifts in excess of $100K. In any case, transfers between spouses are exempt from gift tax.


0

Look into: "State forestry tax deferment plan providing a considerable reduction in property taxes." "My property was in a “greenway”, which was supposedly county sponsored; but was really funded by the federal government and gave the property had a tax reduction." There are also woodlot exemptions, iirc. Depending on the state, etc.


3

No, PTO should not be calculated like that. The tax office only cares about how much you were paid. They don't care how much you had to work to receive that. If you had been paid $100,000 for working one week, or one day, they don't care. The other way of looking at it is that you were paid $98,000 for working and $2000 as a benefit. You would be taxed on ...


2

New York state will require you file with them, and to the city of NY if that is where you work. New Jersey will give you a credit for taxes paid to other jurisdictions. You should submit a W-4 for New York state with HR/payroll so that your withholding ends up in the correct place. Otherwise you can end up with the situation that one state wants a big ...


1

If you were married the 250K protection can be expanded by the use of joint and individual accounts. A separate limit also exists for IRA accounts. With out those options you will have to put some additional money into another banking institution. This could be a bank or credit union. You have to be careful to make sure that any additional accounts have ...


13

First, what's the reason? Why do you have that much in cash at all - are you concerned about market volatility, are you planning to buy a house, do you have tens of millions of dollars and this is your slush fund? Are you a house flipper and this is part of business for you? If you need the money for short term use - ie, you're buying a house in cash next ...


7

Yes. Although I imagine the risk is small, you can remove the risk by splitting your money amongst multiple accounts at different banks so that none of the account totals exceed the FDIC Insurance limit


4

Don't try individual stocks. If you have a job, any job, even one from mowing lawns, you can open a Roth IRA. If you are under 18 you will need your parents/guardian to setting up the account. You can put the an amount equal to your earned income into the Roth IRA, up to the annual maximum of $5500. There are advantages to a Roth IRA: you are starting to ...


0

It is possible, i've contacted different banks, and only one bank (Wells Fargo) didn't say that they need all members in person, but gave me a form which my colleague filled to authorize me to open an account.


5

First of all, since you're 16 - you will not invest in anything. You cannot, you're a minor. You cannot enter contracts, and as such - you cannot transact in property. Your bank accounts are all UGMA accounts. I.e.: your guardian (or someone else who's the trustee on the account) will be the one transacting, not you. You can ask them to do trades, but they ...


4

Depending on your location, you might have a lot of options to choose from to mitigate your tax burden. There might even be a possibility of combining a few options to make a buck or two off of it. As someone already mentioned, check out conservation easements and REITs, they can be great ways of relieving your burden. Another option that I know is ...


3

I'd bring this up to your payroll department and ask them to issue a corrected W2. It still might be that you're wrong about something, but at the very least they can explain it, however it does sound like a mistake.


0

Yes. PTO, typically the sum of holidays, vacation, and sick days, are treated as income and should hit the W2 the same.


8

You should fund the 401(k) and get the 4% matching because it's free money. When you leave the US, patience is a virtue to get the money penalty-free: Rollover to an IRA. Take "Substantially equal periodic payments" for 5 years or until age 59 1/2, whichever is longer, to avoid the 10% penalty. A long payout time for someone starting out, but ...


5

Two things come to mind: a conservation easement has been mentioned already and I think you might also want to look into a timber REIT (Real Estate Investment Trust). REITS are odd beasts, to be sure and the tax situation can be convoluted but it might meet your needs.


1

You will have two problems, in my experience: US banks operate under Know Your Customer laws which they usually interpret to mean that they have to see you in the flesh before they let you open an account US banks are almost always unable to deal with mailing addresses outside the US (for statements, etc.) The best way to solve this problem is to open ...


0

Is it best to pay all expenses before dividing the profits? It's whatever you decide. Taking money out of an S-Corp via distribution isn't a taxable event. Practically speaking, yes, you should make sure you have enough money to afford the distribution after paying your expenses, lest you have to put money back a few days later in to pay the phone ...


6

You could rent it out to hunters, or a charge a fee for camping on it. If you log it, you can often get Federal assistance in paying for replanting. You can also get certifications that your timber is being grown and harvested sustainably, making future timber more valuable, while minimizing the environmental impacts of harvesting on the property. You also ...


1

The 25%/35% bit is a rule of thumb that banks and mortgage companies commonly use to determine whether you qualify for the loan. I wouldn't give it too much weight, because it doesn't take into account your personal financial situation. If you're paying your sick mother's medical bills and next year you will have two kids in college and you're trying to save ...


5

You can point out the following to the buyer when talking him out of trying to cheat on his taxes: As the buyer, the reward from the crime is so small and the penalties so high, it's simply not worth it. If you buy a $10,000 car for $1000, the DMV is going to immediately notice that fair market value wasn't paid and you'll get caught. If you try to wiggle ...


5

When I lived in Ohio, when you went to register a car that you'd bought private sale, they looked up the book value, and if you were some percentage below that, you had a choice of paying tax on the book value, or getting sworn notarized forms that this was the price you really paid, and if you were caught lying, you could go to jail. The one exception ...


29

In some jurisdictions you can donate the development rights. You and the family still own it, but nothing can ever be built on it. In some cases you will still be able to build a cabin or similar structure on a few acres, but the bulk has to be left natural. The advantage is that by giving away the logging or other development rights the land loses much of ...


1

We will bill our clients periodically and will get paid monthly. Who are "we"? If you're not employed - you're not the one doing the work or billing the client. Would IRS care about this or this should be something written in the policy of our company. For example: "Every two months profits get divided 50/50" They won't. S-Corp is a ...


2

Sounds like you're right on top of the math. 28% of gross income is within typical recommendations. I predict you'll be able to get a loan with good rates. One thing to keep in mind is that if the interest rate is essentially the same whether you put down 20% or 30%, I'd recommend a 20% downpayment. You can always make extra payments to bring down your ...


1

If I got the math right, you gross $86K or so, and the condo is about 4X that. It's not too out of line given how low rates are. When we bought our house in 1996, it was 2.5 times our income, and after 20% down, the mortgage was exactly 2X. Keep in mind, the interest and property tax flip you to being able to itemize, but your benefit is only the ...


28

Yes you can get in trouble. Here is the quote from the Bill of Sale form from California: This line is right above where you sign. I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Other states are similar. Virginia uses more words: In accordance with all applicable ...


21

Can doing this get me in trouble later ? Or will it be just the buyer because its the buyers decision or idea ? Definitely can, and not just the buyer since you're signing this thing as well. This is what is called "tax fraud".


3

If you buy foreign currency as an investment, then the gains are ordinary income. The gains are realized when you close the position, and whether you buy something else go back to the original form of investment is of no consequence. In case #1 you have $125 income. In case #2 you have $125 income. In case #3 you have $166 loss. You report all these ...


1

For the buyer - none (except for, potentially, 1099-S - see below). For the seller, it goes on form 8949, and from it to Schedule D. Depending on the seller's situation, additional filings and forms may be required (depreciation recapture, passive losses recovery, primary residence exclusion, gift tax, etc etc). If you're not going through a regular ...



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