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  3. krow36

    Guest

    Sorry I misspelled Alan’s user name. It’s “Alan S.”
  4. JS77

    Guest

    Thanks, I'll be looking for Spirit Rider and Allan S. (couldn't find Allan). If you have w2 money for a period of time were you unemployed? Feel free to jump in on this one as I need to know. Thanks.
  5. JS77

    Guest

    As I said IRS/DOL docs are very fuzzy. Years ago I set up 401ks for a foreign company here in the US. I was warned many times about violating "universal availability". Universal availability seems to apply to to 403/457bs. I participated in the 403/457b prior to illegal termination. Termination was illegal. I have w2 income from period of the illegal termination now. Was I unemployed? Second reference is less clear: 5 year rule for non-elective contributions. The example given is for a minister. The principal is some sort of contribution can be made up until 5 years after last year of service. Screens from Pub. 571 are attached. We too often ignore the purpose of legislation like ERISA. It is here to help save for retirement. We construct obscure rules. There is w2 inccome from the period of termination. Back contributions should be made. I agree with you on lawyers. Good ones are hard to find. Thanks for your comments, Ed.
  6. Bashdash

    Guest

    I believe I did read about catch up contributions while employed. ( Not the over 50 type)....
  7. krow36

    Guest

    I don't understand what happened to your 403b and 457 accounts. Are you trying to make contributions for the year(s?) during which you were unemployed? I agree with Ed that employee contributions cannot be made for years when you were not employed. If you want a definitive answer, you should explain your problem on the Boglehead forum. Posters Spirit Rider and Allan S. are experts on IRS regulations concerning 403b and 457b plans. I believe you'll find that neither 403b nor 457b public school district plans are governed by ERISA.
  8. EdLaFave

    Guest

    That comes out in the wash. If they withheld too much, you’ll just get it back at tax time. You can also change your current withholding to minimize future tax payments if you’re convinced you’ve already paid enough.
  9. EdLaFave

    Guest

    This would be news to me. You should post links to the IRS documentation, I’d like to read it. I personally would be extremely hesitant to pay a lawyer with the hopes of reclaiming tax advantages space from previous years. That space has a finite value and lawyers can easily overwhelm that value.
  10. JS77

    Guest

    I’m JS Philly. I’ll post this on both the 403 and 457bs groups as I am concerned with both. I’ll keep this brief and add later if I see I can help in any way. I’ll keep it positive, but my story is ugly. I was illegally terminated from my position at the S.D. of Philadelphia (SDP) and reinstated by the state legal authority. The SDP had on several counts violated the School Law of 1949 and federal due process (Section 1983). A year later I finally got my back pay lump sum and the new problems began. Reinstatement means reinstated to former position with all rights and privileges and be made whole. The SDP payroll refused to make the backup 403 and 467b contributions I requested. Furthermore, they withheld Federal income tax at 33.4% without any consultation (Trump style). I studied IRS and DOL documents related to 403 and 457b. Regulation seems very unclear, but I won’t bore you with details. IRS seems to allow for makeup 403 & 457b contributions and seems only to require that this is earned income (W2 monies). I fully comply. The DOL has jurisdiction for 401Ks, but supposedly not for 403 & 457b. This is not very clear. It is odd because they are all, 401,403 & 457, are represented as ERISA plans. Between lawyer’s fees, payroll deductions and my projected CPA costs (amended returns), I will finish this period losing money even though I was complete reinstated from the bogus situation. What do I need? Ideas to generate leverage to pressure the SDP to make the backup 403 and 457b contributions. This rather easy remedy (back contributions) alone would do a lot to fix my situation. Recommendations for lawyers/tax accountants pro-bono or otherwise would be appreciated (note: the circumstances are unusual). My problem is one aspect of a bigger problem we all share. Regulation and compliance of 403 & 457b is very weak. If you have a problem even roughly resembling mine, you will be on the losing side of regulation, as I am now. Our solution, and 403bwise is making an effort, is more muscular lobbying for the owners of 403 and 457b plans. I don’t know how to get there, but we badly need it. I fear situations like mine will only get more common. Be vigilant.
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  12. Also, the legendary author of the FI and FIRE movement is CL Collins Simple Path to Wealth. He credits Bogle from the first to his last sentence. It's an easy ready Tricia. Here is my Amazon review of Simple Path to Wealth: https://www.amazon.com/gp/customer-reviews/R24LBG260PCZHL/ref=cm_cr_dp_d_rvw_btm?ie=UTF8&ASIN=1533667926#wasThisHelpful And my Amazon review of Your Money or Your Life by Vicki Robin: https://www.amazon.com/gp/customer-reviews/R34XCX7436D7ZK/ref=cm_cr_arp_d_rvw_ttl?ie=UTF8&ASIN=0143115766
  13. If all you knew was the following then you'd get 95% or more of the benefits that somebody who knew everything might get: Pick a stock/bond split such that you won't change your plan when stocks drop by 50%. Put as much money as possible in tax advantaged accounts (HSA, IRA, 401k, 403b, 457b, etc.). If you have money left over, put it in a taxable account. Once the money is in the account, purchase total market index funds with the lowest possible fee (expense ratio) and no sales charges (loads). Direct new purchases towards the asset class (stocks or bonds) that is below the percentage you picked earlier. Every time you have money left over after bills, use it to buy more shares of your preferred total market index funds (notice I didn't say anything about what the market is doing at the time you have money left over). Reject the notion that you or anybody else can predict the what the stock market will do over a period of days, weeks, months, or even a few years.
  14. tony

    403b Inquiry

    Krow Krow is good to remind you that Aspire is only a good enough choice if you self-direct your account into a low cost index fund vehicle. Otherwise its not all that great of a deal if you don't self direct and then also purchase funds that are expensive like managed funds.
  15. FIRE is pretty wild in parts and can be practiced to the extreme, but it's really a throwback to America's old fashioned values of thrift and frugality. A time before we were all labeled as "consumers." "Your Money or Your Life" by Vicki Robin is a great light introduction to FIRE, conscious spending and feelings surrounding money. I just posted a video in another thread with a good comment about there being a finite amount you really need to learn about "financial literacy." It's not a never ending insurmountable topic. You could pick up the bulk of the information in a couple weeks/months, then go about the business of living your life with that added knowledge that will keep you from being taken advantage of.
  16. Recorded May 8th: https://youtu.be/rpS10nuR-K0 Their deep dive into the statement: "the stock market is just a chart of rich people's feelings," was interesting to listen in on along with the rest of the conversation surrounding understanding markets/governments. It's lightly sponsored by Inuit and Amanda is trying to sell a workshop, but the ads are unobtrusive and you can skip past them all pretty easily.
  17. Your comment about starting next week made me wonder if you realized that setting up an Aspire account is an online exercise and does not involve a conversation with Aspire? Their FAQ will answer most questions you might have. You can find the Application form and Contract at https://www.aspireonline.com/docs/default-source/form-library/403(b)(7)-application-and-agreement.pdf?sfvrsn=44 Be sure to choose the “self-direct” option and avoid the 0.6% fee of an advisor. You can choose any of the mutual funds on Vanguard’s list, but all you need is a Target Retirement fund, or the 3 basic total market funds (Total Stock Mkt Index, Total Int’l Stock Mkt Index and Total Bond Mkt Index). https://www.aspireonline.com/plan-types/403(b)-plan/fund-search If you go with the 3 Fund Portfolio, ask here on the forum if you want to discuss the relative percentages.
  18. Thanks everyone! Will be getting started on all this next week. Will keep everyone posted with the play by play.
  19. Tony raises a good point about making connections with folks at the vendors you hope to add. If your district isn't particularly willing/helpful about adding the vendors, this will definitely come in handy.
  20. Please, ask as many questions as you can. I think everybody here is happy to share their knowledge/experience.
  21. Great responses. Find it very ironic to get help for this you have to go to anonymous strangers on the internet! Thanks Krow for helping many years ago save me thousands in fees!
  22. Can I just say that I am thoroughly enjoying the discussion and picking up a lot of things I'd want to read about later on...like FIRE (yup..I had to google that one up!). Summer's here and for me that usually means more time to flex my "financial literacy" muscles, of which this discussion has given me much fodder. I will definitely be referencing the different points raised here as I steer ahead in my own investment journey. I feel quite blessed and fortunate to be part of the 403bwise family. Thank you all for your valuable advice!
  23. tony

    403b Inquiry

    I successfully added a 457b plan to my district at time no-one even knew it existed for school systems in my particular state. You need to first contact your state 457b plan administrators and talk to a 457b retirement specialist. One you have them on the phone( don't e-mail) ask them how to proceed to get it established in your school system. They will give you the play by play and will often contact the school system in your behalf. After that you might be advised to get a list together of 20 fellow teachers who want to establish and contribute to it. That should seal the deal. However when I added it ,our 403b TPA did everything it could to not make it happen I guess because it was viewed as competition . They failed to stop its addition and those teacher signatures plus my school board presentation by powerpoint sealed the deal. I had a very supportive personnel director at the time whose clout (and finance degree) helped make it happen.He actually understood personal finance!! Once you can convince the powers that be, its just a matter of the district filling out simple paperwork. If you can't get it to happen, don't fret too much, Aspire is a good enough option if you self-direct the account. It's not a perfect choice but much better than anything else you have plus it can link you with Vanguard and Fidelity . I do think getting Vanguard added directly would be ideal. Same with Fidelity, but only with their index funds. Stay clear of their (Fidelity's) managed funds because they are much more expensive. Vanguard's funds overall are cheaper across the board than Fidelity 's except for Fidelity's index funds which are the cheaper exception. I hope my additions to this discussion is helpful. Everyone's comments have been right on.Please come back often to keep us abreast of how things are progressing. Your playbook may help others do the same.
  24. Thanks everyone! I am going to start reaching out first thing next week! Will reach out with questions I am sure. Appreciate you all taking the time out to help me, this is great!
  25. If your district doesn't offer any 457b plans then this is going to be more difficult than adding a specific 457b vendor to an existing line up. I'd start by contacting your Retirement Services department (or whatever the equivalent is for your district) and asking them if they'll add it. Ask them what the process is for adding a 457b and who the decision makers are. Then talk to those decision makers and if necessary talk to their bosses and if necessary talk to the school board. I want to encourage you to add the 457b because it is great to have that available. However, if can't max out a 403b then your time may be better spent getting them to add Vanguard and/or Fidelity to the existing 403b lineup. You'll have to talk to the same people and maybe you could push both agendas at the same time. ...I speak from the experience of getting OCPS (FL) to add Vanguard and Fidelity to their 403b/457b vendor list. You can do it too and I'll answer any questions along the way.
  26. I would start by simply emailing personnel. Might be easier than you think?
  27. Any suggestions to how to go about this?
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