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Speaking of retirement plans, compensation seems to increasingly be a secondary goal, the primary goal is to now to immunize yourself from lawsuits:quote:Officials at the Labor Department, whose Employee Benefits Security Administration unit enforces benefit plan rules, say they are concerned about companies erecting barriers that make it harder for participants to receive what they are due. They call it a growing problem that hurts participants with limited financial resources, among them people who are already retired, on disability or in ill health. http://www.nytimes.com/2016/06/05/business/when-your-401-k-is-better-for-your-employer.html?src=me It's crazy how much you now have to sign away in most employment agreements, enjoy the stacked deck of arbitration corporatists and sympathetic judges across the land. If you do get hosed somehow your options for recourse are becoming very limited. quote:In some of these suits, plan sponsors have argued that because such investment options were written into plan documents — a settlor function — they had no liability for choices that were not in the best interests of beneficiaries.    Pryor on Fire fucked around with this message at 15:11 on Jun 6, 2016 |
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Jun 6, 2016 15:06
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Job hopping so you can roll your 401k into a trad IRA before it's taken away: GWM?
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Jun 6, 2016 15:59
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I have a friend whose company never started his benefits in 2015(eligible after 90 days). He emailed their HR a couple of times, and they simply never got back to them. He has insurance through a spouse already so that wasn't critical, but it would have been if he hadn't...additionally, no 401k was ever started. The company has attempted it right by depositing the amount equal to what they would have matched into the 401k now, in 2016, but my understanding is that the IRS has a method for addressing this and it involves doing more than just that. They say he can't put money into the 401k for that year at all. Any idea?
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Jun 7, 2016 03:53
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Jaxyon posted:I have a friend whose company never started his benefits in 2015(eligible after 90 days). He emailed their HR a couple of times, and they simply never got back to them. He has insurance through a spouse already so that wasn't critical, but it would have been if he hadn't...additionally, no 401k was ever started.
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Jun 7, 2016 14:20
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Jaxyon posted:I have a friend whose company never started his benefits in 2015(eligible after 90 days). He emailed their HR a couple of times, and they simply never got back to them. He has insurance through a spouse already so that wasn't critical, but it would have been if he hadn't...additionally, no 401k was ever started. 6 months in to 2016 he is likely SOL. He should have raised a huge stink before 2015 ended. If he has a check for $18,000 he can give them he can see about them fixing it for him, but otherwise he likely will have to chalk this up to a life lesson in not getting walked on by your company.
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Jun 7, 2016 14:38
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H110Hawk posted:6 months in to 2016 he is likely SOL. He should have raised a huge stink before 2015 ended. If he has a check for $18,000 he can give them he can see about them fixing it for him, but otherwise he likely will have to chalk this up to a life lesson in not getting walked on by your company. It looks like there's actually a legal requirement to make this right https://www.irs.gov/retirement-plan...e-contributions
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Jun 8, 2016 04:06
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Jaxyon posted:It looks like there's actually a legal requirement to make this right Zang. Print out those emails, print out that page, and print out proof that they deposited an amount trying to make it right. (Which appears to be the QNEC for the matching.)
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Jun 8, 2016 04:24
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Pryor on Fire posted:Speaking of comparing retirement plans, I stumbled upon this tool today that lets you compare yours to lots of big companies: This is a better resource for this kind of thing: https://www.brightscope.com/
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Jun 8, 2016 18:41
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Quick, dumb question since I don't know much about how this works: I've got a Roth IRA set up through ETrade that has about $50 in cash leftovers sitting there doing nothing. What do I do with this? What's the easiest way to zero it out? I haven't found anything to purchase since there are often minimum orders or a $10 purchase fee. If it's simple enough then I'd just buy a fraction of a share wherever to get a nice even $0, otherwise I'll just withdraw the money to support my hooker and blow fund.
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Jun 8, 2016 23:43
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It's probably very (emphasis, very) slightly interest bearing so just leave it alone. Also if you withdraw it, making the assumption that you contribute the maximum allowed, you're robbing yourself of that contribution since you can never catch it back up. You need to set your OCD aside and let there be a $50 cash balance until you make your next contribution which will give you enough money to do something with it.
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Jun 8, 2016 23:49
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Or transfer to your other IRA provider if you have one.
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Jun 9, 2016 00:03
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Is there anything negative about investing post-tax money into your 401k? My company offers the ability to do post tax contributions. It seems like I could invest my Roth IRA money into my 401k, while continuing to max out with pre-tax dollars? Then I could start a traditional IRA and max that out, instead of maxing out a roth...? In essence the post tax money in the 401k takes the place of post tax money in my Roth. That seems too simple to me, am I overlooking something here?
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Jun 9, 2016 03:14
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Stryguy posted:Is there anything negative about investing post-tax money into your 401k? My company offers the ability to do post tax contributions. It seems like I could invest my Roth IRA money into my 401k, while continuing to max out with pre-tax dollars? Then I could start a traditional IRA and max that out, instead of maxing out a roth...? In essence the post tax money in the 401k takes the place of post tax money in my Roth. Roth and post-tax contributions are not the same thing. Post-tax contributions are taxed on withdrawal just like pre-tax contributions, although they do grow without capital gains. Generally speaking, post-tax contributions are a bad idea, unless you work somewhere that offers Roth 401k options and in-service Roth conversions - in that case, you can do essentially the same backdoor Roth conversion you can do in an IRA, but with a much higher limit.
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Jun 9, 2016 03:30
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Space Gopher posted:Roth and post-tax contributions are not the same thing. Post-tax contributions are taxed on withdrawal just like pre-tax contributions, although they do grow without capital gains.
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Jun 9, 2016 05:29
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Space Gopher posted:Roth and post-tax contributions are not the same thing. Post-tax contributions are taxed on withdrawal just like pre-tax contributions, although they do grow without capital gains. No no no, post-tax contributions are post-tax; they're not taxed again upon withdrawal. (Right?) The gains on the post-tax contributions are taxed on withdrawal, though. It's kind of a weird mix between traditional and Roth in that way, and not very favorable unless (as was said) you can quickly convert the contributions and relatively small gains to Roth. My job just started offering in-service conversions (with Fidelity), so I am undergoing this process for the first time. The money gets rolled into a Roth IRA, which I also have at Fidelity for the time being to make things easier. People online seem to call it the "mega backdoor Roth".
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Jun 9, 2016 06:29
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Alhireth-Hotep posted:No no no, post-tax contributions are post-tax; they're not taxed again upon withdrawal. (Right?) Yes, post-tax contributions to your traditional 401k are taxed again (the gains) upon withdrawal. Roth contributions are not taxed upon withdrawal. Two different things. Guinness fucked around with this message at 21:53 on Jun 9, 2016 |
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Jun 9, 2016 18:40
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No, gains on post-tax contributions to a traditional IRA are taxed as ordinary income on withdrawal. The contributions are not taxed. Withdrawals will be partially taxed in a prorated way. Form 8606.
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Jun 9, 2016 19:58
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https://www.youtube.com/watch?v=wvdNCDVmRPo
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Jun 9, 2016 22:27
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Alhireth-Hotep posted:No no no, post-tax contributions are post-tax; they're not taxed again upon withdrawal. (Right?) The gains on the post-tax contributions are taxed on withdrawal, though. It's kind of a weird mix between traditional and Roth in that way, and not very favorable unless (as was said) you can quickly convert the contributions and relatively small gains to Roth. Guinness posted:Yes, post-tax contributions to your traditional 401k are taxed again (the gains) upon withdrawal. slap me silly posted:No, gains on post-tax contributions to a traditional IRA are taxed as ordinary income on withdrawal. The contributions are not taxed. Withdrawals will be partially taxed in a prorated way. Form 8606. http://www.nytimes.com/2015/09/23/your-money/401ks-and-similar-plans/irs-ruling-makes-after-tax-contributions-more-attractive.html 1. Post-tax contributions to a Traditional 401k/IRA count as Basis when you withdraw them, much like non-deductible IRA contributions. The Basis is not taxed (again), the Gains are taxed when withdrawn. 2. If you roll Post-Tax contributions to a traditional 401k into a Roth IRA then you get all the benefits of a Roth IRA and don't have to track basis or get taxed. Am I reading that right?
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Jun 9, 2016 23:46
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H110Hawk posted:http://www.nytimes.com/2015/09/23/your-money/401ks-and-similar-plans/irs-ruling-makes-after-tax-contributions-more-attractive.html I didn't read the article but that is precisely how I understand post tax 401(k)'s and roll overs to function.
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Jun 9, 2016 23:52
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lol
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Jun 10, 2016 00:17
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If anybody wanted to know how an ETF works in principle (and makes money) here's a handy diagram
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Jun 10, 2016 05:45
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Les Affaires posted:If anybody wanted to know how an ETF works in principle (and makes money) here's a handy diagram Ah, the Goatman Portfolio
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Jun 10, 2016 06:17
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the trick is to maintain a large enough spread so that arbitrage pays for the operation
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Jun 10, 2016 06:24
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What is that man doing to his portfolio??!? Edit: sadly, if pig slut hadn't said it, I'm not sure I would've noticed despite 15+ years on these forums. Oh, that telltale ring.
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Jun 10, 2016 06:29
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Les Affaires posted:If anybody wanted to know how an ETF works in principle (and makes money) here's a handy diagram This should be in RegEd materials.
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Jun 10, 2016 20:00
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Just received notification that my 401k's expense ratios are dropping by 0.1% :woot:
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Jun 10, 2016 20:19
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Please update the OP to include the helpful ETF explanatory image, thanks in advance
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Jun 10, 2016 20:35
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Hi all - a while ago (probably a year or more at this point) someone posted links to the documents and process for a small business to start up an employee retirement plan through vanguard. Does anyone have this handy, or could they point me in the right direction? I have been pushing my wife to harass her employer, who runs a small business, to set a plan up for ages and it looks like I'm gaining some ground. It would be really helpful if I could provide the forms and procedure for them. Thanks a lot, and if nobody has this handy I'll just dig on my own.
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Jun 11, 2016 08:38
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I don't know how it's done but I think very likely the person who posted that was moana if that helps any.
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Jun 11, 2016 15:49
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P0PCULTUREREFERENCE posted:Hi all - a while ago (probably a year or more at this point) someone posted links to the documents and process for a small business to start up an employee retirement plan through vanguard. Does anyone have this handy, or could they point me in the right direction? Bellagio Sampler posted:It's super easy. We just mailed in about 20 pages of paperwork and they contacted us to set us up with an online account similar to a Vanguard personal account. I'd like to add that their phone representative was very helpful explaining the differences between the plans.
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Jun 11, 2016 21:30
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Thank you! That is immensely helpful! edit: and I see that you posted that in response to me back then too - so, let's hope it goes better this time. Hah P0PCULTUREREFERENCE fucked around with this message at 08:03 on Jun 12, 2016 |
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Jun 12, 2016 07:58
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Can someone suggest a good allocation among my available retirement funds? I'm 32 in case that matters:
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Jun 13, 2016 18:19
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lord1234 posted:Can someone suggest a good allocation among my available retirement funds? I'm 32 in case that matters: What are the expense ratios of those funds? Can you tell us a little about your risk tolerance?
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Jun 13, 2016 18:25
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I'm gonna take a wild guess and suggest that those bny Mellon index funds are the only ones with reasonable ERs and some combination of them is your best bet
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Jun 13, 2016 19:05
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I've had a hell of a time trying to locate information about fees and ERs on my work's 403(b) but finally found what I'm looking for. Here's what I'm currently working with, all checkmarks are investments I hold. This was automatically allocated based off some survey I took. Would it be a bad idea to throw away their suggestions and dump everything in to the FID FREEDOM K 2050 (FFKHX) target fund instead? It's got lower ER than the average of what I'm holding but also it looks like their portfolio planner put too much weight in bonds. I'm 27 and have a separate IRA through Vanguard but use this work account with Fidelity to get my free match money. e: here's my allocations:  e2: John Oliver just covered retirement accounts last night and the bit at the end (18:15) seems like solid advice for spreading around. https://www.youtube.com/watch?v=gvZSpET11ZY tl;dr: get index funds, watch for fees, tell non-fiduciary advisers to gently caress off Teeter fucked around with this message at 20:05 on Jun 13, 2016 |
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Jun 13, 2016 19:58
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Teeter posted:I've had a hell of a time trying to locate information about fees and ERs on my work's 403(b) but finally found what I'm looking for. Here's what I'm currently working with, all checkmarks are investments I hold. This was automatically allocated based off some survey I took. I'm on my phone so I can't go into detail but I wouldn't put money in the 2050 fund at 0.67% if I had access to all the important Vanguard indexes at <0.10%
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Jun 13, 2016 20:18
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Teeter posted:e2: John Oliver just covered retirement accounts last night and the bit at the end (18:15) seems like solid advice for spreading around. As a Financial Life Planning Analyst Advisor, I can tell you that: The Vanguard funds look the best (VIIIX, VMCIX, VSCIX) due to the low expense ratios (0.02/0.07/0.07) which is far below the other stock-based funds. I'd say throw your money in there and forget the Fidelity target funds; the ER for a Vanguard target fund is something like 0.15 or thereabouts. 0.6 is terrible for what amounts to some index funds. Small/Mid/Large cap is basically a scale of risk vs. reward, with smaller market cap companies (and funds that hold their stock) being higher risk/higher reward. totalnewbie fucked around with this message at 20:36 on Jun 13, 2016 |
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Jun 13, 2016 20:30
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Yeah, the Fidelity target funds are kinda ok but not at 0.7% and not when you have those juicy alternatives from Vanguard.
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Jun 13, 2016 20:33
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Awesome, thanks. I was a bit put off from it all because the Vanguard funds it allocated for me were bonds and I overlooked the others (VIIIX, VMCIX, VSCIX). They definitely seem like the best bet so I'll read up a bit and see how I should allocate my money among those 3.
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Jun 13, 2016 20:38
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