Tag Info

New answers tagged

2

You are kicking butt and taking names, especially compared to most people in your age bracket. I wish I'd had the opportunity (and the sense) to live rent-free and max out my 401(k) when I was 23. Keep doing what you're doing and you'll be able to pull off a Mr. Money Mustache style retirement. I think you might have misunderstood the question and answer ...


2

I had $70K in credit card at one point. Limited income, starting a business - it's the only credit available. (yes, all paid off now).


3

You seem to be treating your Roth IRA as a sort of savings account for use in emergency situations. I would use a savings account for savings as withdrawing money from an IRA will have penalties under various circumstances (more than contributions, Roth IRA less than 5 years old, more than $10k for a down payment). Also, you mention folding your IRA into ...


1

I would say you are typical. The way people are able to build their available credit, then subsequently build their average balances is buy building their credit score. According to FICO your credit score is made up as follows: payment history (35%) amount owed (30%) length of credit history (15%) new credit (10%) type of credit used (10%) Given that ...


-1

In the United States, when applying for credit cards, proof of income is on an honor system. You can make $15k a year and write on your application that you make $150k a year. They don't check that value other than to have their computer systems figure out risk and you get a yes or no. It was traditionally easy to attain credit, but that got tightened in ...


4

I'm not sure if the rules in Canada and the US are the same. I'm as amazed as you are by the amounts of debts people have, but I can see how this credit can be extended. Generally, with good credit history and above average pay - it is not unheard of to get about $100K credit limit with a bunch of credit cards. What you do with that after that depends on ...


-1

I wouldn't classify your treatment as abuse. Medical billing has become more complex not less complex. You need to learn to ask even more questions regarding expenses, you probably need to see these price quotes in writing. You did several things correctly. Staying in-network generally is best because many plans have two deductible limits: In-network, and ...


0

Some states will give you a tax deduction for 529 contributions. This will allow some tax savings for money that spends a minimum amount of time in the account. Yes you have missed the best benefit, the tax free growth, but there might be an opportunity for some growth. The child's expenses beyond tuition can be covered by 529 plan. It can even cover room ...


3

You should really be talking to a tax adviser (EA/CPA licensed in your State) about taxes and to a lawyer about the liability protection. You won't find answers from neither of theses here. Besides the liability protection, how do these 2 options affect taxes? There's no liability protection difference between the two (talk to a lawyer to verify) ...


1

The deductible lodging is only during the move itself, i.e.: if you're driving cross country and staying in hotels on the way - these are deductible.


2

I'll take a slightly different approach, no questions, however, I'm not a financial guru. I would always say yes, no matter the length of time you intend to be there. 1) Things change 2) Retirement is part of my game plan, whether I work after retirement is irrelevant to me now (it's something I'll be able to decide), I want to be financially able to ...


1

The real benefit of the 529 is the tax free growth, similar to a Roth IRA. 18-22 years of growth can add up, the investment doubling or tripling. In your situation, it's a year or two of growth. Interest rates are low, and I'd not recommend having this money investe in the market for just a year or two. With sub 1% interest rates in savings, it's up to you ...


1

If you are determined to file a complaint the correct way to do so is with the bank's regulatory agency. This probably won't help you get resolution on the refund, but will definitely get the bank's attention and might make you feel vindicated. Office of The Comptroller of Currency - File a complaint about a national bank. Here is their FAQ page to guide ...


-2

Just as with any other service provider - vote with your wallet. Do not go back to that doctor's office, and make sure they know why. It's unheard of that a service provider will not disclose the anticipated charges ahead of time. A service provider saying "we won't tell you how much we charge" is a huge red flag, and you shouldn't have been dealing with ...


5

Do they offer a match with a sub-one-year vesting (or a reasonable % in the first year)? If not, and if the current IRA limit ($5500 in 2015) covers you, you might be better off just going the IRA route.


14

If you can afford it, Yes. You will be able to roll it over (however much it has in it) to your next 401K, or to your own self-directed IRA. Anything you can afford to save now will begin to compound, and with compounding (and being in your mid-twenties), time is everything.


4

There are specific cases where you are required to use ADS: Required use of ADS. You must use ADS for the following property. Listed property used 50% or less in a qualified business use. See chapter 5 for information on listed property. Any tangible property used predominantly outside the United States during the year. Any tax-exempt use ...


1

is your credit history ruined, or merely dinged? Is the blow recoverable? Any bad credit rating event is recoverable given enough time / money to solve the problem. As far as "Ruined" vs" "Dinged", well, that's a matter of opinion; some people think that one bad item is the end of the world, others not so much. You will have an unpaid debt listed on ...


3

Would I only have to pay regular taxes plus the excess contribution tax on any contributions? Yes, you'll pay regular taxes plus the excess contribution taxes on the contributions until you withdraw. So what would be your gain in doing this? The whole point in HSA is to use pre-tax money for medical expenses, and you're not only going to use post-tax ...


1

In the real world, there are only two times you'll see that 5% become worth anything - ie, something you can exchange for cash - 1) if another company buys them; (2) if they go public. If neither of these things happen, you cannot do anything with the stock or stock options that you own.


1

That sounds unreasonable. The renter isn't necessarily responsible for the rent of the entire remainder of the lease -- the renter is only responsible for the rent until the landlord finds a new tenant if it happens before the end of the lease, and whether that happens cannot be known ahead of time. Plus, the landlord has an obligation to try to find a ...


2

Look at your options with a 529 program. If the money is used for education expenses: that currently includes tuition, room & board (even if living off campus), books, transportation; it grows tax free. Earnings are not subject to federal tax and generally not subject to state tax when used for the qualified education expenses of the designated ...


1

tl,dr: I-bonds do not fit well into most personal finance plans. First the questions (succinct reference): No. The names are weird I agree. I-Bonds are not really securities as they are not tradable. (a) No, in general investors do not get competitive yield from I-Bonds when everything is adjusted for. You note the interest rate for I-Bonds is higher, ...


2

You can contribute to Roth IRA regardless of the foreign income exclusion. You can contribute to Roth IRA only for amounts in excess to FEIE. However, the MAGI limit for Roth IRA contributions ignores the FEIE. So in your case, if you exclude your income, you would not be able to contribute to the IRA. You cannot partially exclude the income. You either ...


3

Both States tax you on the income, so why doesn't it seem right for both of them to also allow you recognizing losses? Nothing wrong here. You get the credit for the actual tax paid in the other state, which will first be offset by the loss recognized by that State. So consider you have $500 rental loss, and you apply it to your CA income. CA will tax you ...


6

Yes, you will need to deposit the funds into your HSA, then withdraw them to reimburse yourself for the expenses. The tax deduction comes when you contribute (deposit) to your HSA. If you do not deposit the money there, you will not be able to claim the deduction. Your HSA provider reports the amount of your contributions to the IRS, so the amount you say ...


0

This is just a partial answer, but I believe the following observations are relevant: If you get a job in 1 month, it may take 2 months before you see the first paycheck There are some things that you really don't want to pay late, and some that may not have too many consequences. Just think: what is the impact of paying your creditcard 2 weeks late, and ...


9

I agree with all the people cautioning against working for free, but I'll also have a go at answering the question: When do I see money related to that 5%? Is it only when they get bought, or is there some sort of quarterly payout of profits? It's up to the shareholders of the company whether and when it pays dividends. A new startup will typically ...


4

As I understand it, the HRA and HSA are completely separate accounts that don't affect each other directly. The HRA is owned by the employer. They are the only ones that can contribute to it, and they are the ones that pay out to reimburse you for medical expenses that you submit. Any money that is left in the HRA belongs to the employer. (Some HRA plans ...


2

Generally, the HSA is self-reported. The bank/financial provider will allow you to withdraw/spend whatever you want from your HSA. They report to the IRS the total that you withdrew for the year (your gross distributions) on a 1099-SA form. At tax time, you use a form 8889 to report this number of your gross distributions, and how much of it was used for ...


0

Fidelity answers this pretty well: Do I need to keep my receipts? Yes. The IRS requires that you keep your receipts for HSA account expenses. While you will receive an HSA bank account statement each month and you can access your account online, the receipts will be required should you ever be audited by the IRS. You may upload your ...


4

You are not permitted to redirect the IRA. If you disclaim your share, the two existing beneficiaries split your portion. It's as if you passed away before mom, and the IRA beneficiaries that were alive were just your siblings. What you can do, is accept your portion, using a beneficiary IRA, and withdraw a controlled portion each year, gifting the ...


15

Read the book, "Slicing Pie: Fund Your Company Without Funds". You can be given 5% over four years and in four years, they hire someone and give him twice as much as you, for working a month and not sacrificing his salary at all. Over the four years, the idiot who offered you the deal will waste investors money on obvious, stupid things because he doesn't ...


1

Thanks to Craig W for pointing out to similar question with the links. From IRS Publication 590-A (2014 tax year): Brokers' commissions. Brokers' commissions paid in connection with your traditional IRA are subject to the contribution limit. and Brokers' commissions. These commissions are part of your IRA contribution and, as such, are ...


25

The details of how you can convert your 5% equity share to cash or stocks will be detailed in writing in the legal agreement you have already signed. If you do not have any signed written agreement, there is no 5%. Since 0% of anything is zero, you can expect to get $0 some time within the next few years. Lastly, if the person running the business, tells ...


10

Equity could mean stock options. If that's the case if the company makes it big, you'll have the option to buy stocks cheap (which can then be sold at a huge profit) How are you going to buy those without income? 5% equity is laughable. I'd be looking for 30-40% if not better without salary. Or even better, a salary. To elaborate, 5% is fine, and even ...


26

You will probably never see it. The startup at some point may start issuing dividends to the shareholders (which would be the owners, including you if you are in fact getting equity), but that day may never come. If they hire others with this method, you'll likely lose even that 5% as more shares are created. Think of inflation that happens when ...


3

At the most basic level, the employee is getting a share of ownership in the company and would get a percentage of the sales price. That said, as littleadv alluded to, different share classes have different priorities and get paid in different orders. In a bankruptcy, for example, some classes almost never get paid in practice because they are so far down ...


4

With LLCs, the operation agreement can define different shares for different kinds of income or equity, and different partners may be treated differently. In essence, you can end up with a different stock class for each partner/member. So you need to read the grant document and the OA really carefully to know what you're getting. You may want to have a ...


1

If it is a separate unit from the rest of the property, you can use that portion as an investment property. the part, or unit, you are living in is your primary residence. The remainder is your investment. You are eligible to not pay capital gains on the portion you live in After two years. As always consult a tax accountant For advice... Also, if this is ...


1

Have you tried contacting your loan officer? My best guess, based on the information you've provided, is that when you first spoke to someone several weeks ago, they locked in your rate for a specific amount of time. This is fairly standard with any mortgage and generally assumes that the loan will be closing by a certain date. If the loan didn't close by ...


0

Whatever you choose for a remedy (my first impulse is to suggest bankruptcy) you should protect your retirement plans. These are immune from most collection actions, the exception being govt debts (e.g. taxes) and student loans. The sad part is that the student loans won't go away except by paying them off. Miss one payment and it will hound you for 10 ...


0

Tax does not depend on whether you transfer the funds to India or keep in US. If you have spent less than 182 days in a given financial year, then you are treated as "Non-Resident" [NRI] in India. If you are NRI, you need not pay tax for income earned outside India. If you are NRI, you should not be holding Savings account these need to be converted into ...


1

Here are two different sources, one from an actual credit reporting agency, Experian. http://www.experian.com/assistance/sample-credit-report.html http://www.aie.org/manage-your-money/understand-credit/your-interactive-guide-to-credit-reports.cfm If what you want to see an actual real credit report, no one in their right mind is going to show you unless ...


3

Forget the savings for a moment. If the base price of the car is $22,000, you get $1,500 employee discount, and $4,000 trade in, that leaves $16,500. Let's assume there are no additional fees on top of the $22,000 or that these aren't enough to matter. If you borrow $16,500 at 5% interest (that's what I paid for a car loan about a year ago) for 5 years, your ...


0

Everything I have read here sounds good except for one small detail. My bank does indeed identify ATM rebates as taxable income. They, in fact, seemed to have begun this practice several years ago but somehow forgot to send 1099's to their own customers despite sending them to the IRS. This ended up costing me nearly $2,000 in back taxes to cover 2012, ...


-2

Lots of good info on the regulations around this however another angle on this is how to get them to make a decision faster. Go to social media, mention them dragging their feet and costing their customers money on their FB and Twitter. You may be suprised how quickly decisions can be expidited when you put their reputation on the line.


0

Assuming there would not normally be tax implications (in terms of income taxes), then there are no additional tax implications just because you are paying in advance. Foreign VAT is never deductible, so in this particular case there shouldn't be any tax implications. The remainder of this answer is likely not directly applicable to your problem, but may ...


6

In 2010, the Restore Online Shoppers' Confidence Act was passed, which prohibited certain activities, most of which had to do with online sites sharing your CC info with third parties. However, the final part of the act deals with "negative option" marketing, which is basically what you're describing - "We will charge you unless you say no". It requires ...


3

*Disclaimer: I am a tax accountant , but I am not your professional accountant or advocate (unless you have been in my office and signed a contract). This communication is not intended as tax advice, and no tax accountant / client relationship results. *Please consult your own tax accountant for tax advise.** A foreign citizen may form a limited liability ...



Top 50 recent answers are included