Any Tax Experts? - Mercedes-Benz Forum

Reply
 
LinkBack Thread Tools Display Modes
post #1 of 24 (permalink) Old 12-12-2006, 01:47 PM Thread Starter
DP
Moderator
 
DP's Avatar
 
Date registered: Aug 2002
Vehicle: 190E, 400E, SLK350
Location: Chesapeak Bay
Posts: 64,125
Mentioned: 2 Post(s)
Quoted: 991 Post(s)
Lifetime Premium Member
(Thread Starter)
Any Tax Experts?

This past summer I did a gig for the government and they "made me" file a W9. I need to know if I can put the whole amount that I earned but if not possible a good portion of it in a retirment fund. I talked to my college's retirement administrator and she told me to go fish because she can only allow me to contribute through my 403B by deducting from my regular paycheck as faculty.
What kind of retirment fund can I use (Tradional IRA, Roth, Keogh...)? Can I contribute all of the earnings as filed in the W9?
Thanks, I would appreciate some input so I can pick a broker ASAP.
DP is offline  
Sponsored Links
Advertisement
 
post #2 of 24 (permalink) Old 12-12-2006, 01:57 PM
BenzWorld Elite
 
BadBenz94's Avatar
 
Date registered: Feb 2003
Vehicle: 2001 Jaguar XJR, 1994 E320(sold)
Location: Kankakee,IL
Posts: 1,849
Mentioned: 0 Post(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Professor
This past summer I did a gig for the government and they "made me" file a W9. I need to know if I can put the whole amount that I earned but if not possible a good portion of it in a retirment fund. I talked to my college's retirement administrator and she told me to go fish because she can only allow me to contribute through my 403B by deducting from my regular paycheck as faculty.
What kind of retirment fund can I use (Tradional IRA, Roth, Keogh...)? Can I contribute all of the earnings as filed in the W9?
Thanks, I would appreciate some input so I can pick a broker ASAP.
If i give you the proper advise, would you pick me??

I would need more specifics, but in general if you are not maxing out your 403b you can place it in a tax deductable IRA. However due to low income(not knowing what your wife makes) I would recommend paying the taxes due and placing it in a Roth IRA as the money grows tax free and is Federal tax free at retirement. Hope this helps.

If not you can call me at

815-932-3400
815-325-0047

Chris

My Car WOO HOO...... Now SOLD
New car.... 2001 Jaguar XJR!!!!

When the people fear their government, there is tyranny; when the government fears the people, there is liberty.
Thomas Jefferson
BadBenz94 is offline  
post #3 of 24 (permalink) Old 12-12-2006, 02:11 PM Thread Starter
DP
Moderator
 
DP's Avatar
 
Date registered: Aug 2002
Vehicle: 190E, 400E, SLK350
Location: Chesapeak Bay
Posts: 64,125
Mentioned: 2 Post(s)
Quoted: 991 Post(s)
Lifetime Premium Member
(Thread Starter)
I am certain that I am not maxing out the 403b because I never contributed to it other than my employer's contribution. My wife does not work.
I would prefer to defer the taxes and put the whole loot in the fund. In addition I would like to open a trading account to play with any idle money instead of sitting in the savings. The bottom line, I don't want to pay taxes on this earning even though I might have a lower tax bracket right now.
If I chose your services what would be the minimum balance to start an account? Can it combine retirement with active trading? What’s your fees and trading costs? (The latter question you can hold on until later).
But I need an answer to these questions, what’s the maximum contribution one can make into an IRA or a Keogh? Having filed a W9, can that classify the income as earned from self employment even though I have a full time job as a prof.?
I checked the IRS website and I walked away more confused than ever. I need clear plain English instructions; that shit was written for space aliens.
DP is offline  
post #4 of 24 (permalink) Old 12-12-2006, 02:16 PM
BenzWorld Elite
 
FeelTheLove's Avatar
 
Date registered: Sep 2004
Vehicle: 83 Astral Silver 280 SL
Location: Planet Houston
Posts: 28,829
Mentioned: 0 Post(s)
Quoted: 8 Post(s)
If you are under 50 the max is 4 grand, over 5 its 5 grand. If you are putting the money away for a long time do the Roth. Usual practice is to max out your Roth contributions in a given taxable year, then move on to the less advantageous IRA and/or SEP.

This one is written for normal stupid people:

http://beginnersinvest.about.com/cs/...ntribution.htm

Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.

-President Barack Obama, 1st Inaugural address

Last edited by FeelTheLove; 12-12-2006 at 02:27 PM.
FeelTheLove is offline  
post #5 of 24 (permalink) Old 12-12-2006, 02:28 PM Thread Starter
DP
Moderator
 
DP's Avatar
 
Date registered: Aug 2002
Vehicle: 190E, 400E, SLK350
Location: Chesapeak Bay
Posts: 64,125
Mentioned: 2 Post(s)
Quoted: 991 Post(s)
Lifetime Premium Member
(Thread Starter)
The problem with Roth is that I can't shield/deduct what I earned this summer from my regular taxable income. Besides 4K that's not going to make a dent because I will be paying way more than that in taxes.
I was thinking if I went with a Keogh I could at least dump all that money in a retirement fund since the ceiling is higher but I am not too sure if I qualify from an employment point of view for this plan and if I do would I have to pay SS tax and other BS right off the top?
DP is offline  
post #6 of 24 (permalink) Old 12-12-2006, 02:38 PM
BenzWorld Elite
 
Jayhawk's Avatar
 
Date registered: Aug 2005
Vehicle: S500/W220/2000
Location: Lawrence, KS (USA)
Posts: 21,652
Mentioned: 0 Post(s)
Quoted: 3 Post(s)
Quote:
Originally Posted by Professor
This past summer I did a gig for the government and they "made me" file a W9. I need to know if I can put the whole amount that I earned but if not possible a good portion of it in a retirment fund. I talked to my college's retirement administrator and she told me to go fish because she can only allow me to contribute through my 403B by deducting from my regular paycheck as faculty.
What kind of retirment fund can I use (Tradional IRA, Roth, Keogh...)? Can I contribute all of the earnings as filed in the W9?
Thanks, I would appreciate some input so I can pick a broker ASAP.
I am not tax expert, but I believe the W9--backup w/holding--form is just to insure that miscellaneous income doesn't slip through a "tax gap." If you got the government money as a contract or grant through your IHE then you could easily put it in your 403b up to legal limits, and defer tax on that income until you cash out or retire. If you aren't maxing-out your 403b contributions--especially if your IHE matches or contributes a %age, YOU ARE NUTS! That, like a 401k or Roth IRA, are w/out a doubt the best savings vehicles ever created by the US government. I ended up w/ over $1 million in TIAA-CREF by paying my salary w/ federal funds and maxing out my 403b. If you cannot pay all or part of your salary w/ the funds, then look into a way of getting it into an IRA, or better yet, a Roth IRA. But try to put it into an account w/ your IHE and pay yourself from that fund while maxing out your 403b.

Don't believe everything you think
Jayhawk is offline  
post #7 of 24 (permalink) Old 12-12-2006, 02:46 PM
BenzWorld Elite
 
Jayhawk's Avatar
 
Date registered: Aug 2005
Vehicle: S500/W220/2000
Location: Lawrence, KS (USA)
Posts: 21,652
Mentioned: 0 Post(s)
Quoted: 3 Post(s)
Quote:
Originally Posted by Professor
The problem with Roth is that I can't shield/deduct what I earned this summer from my regular taxable income. Besides 4K that's not going to make a dent because I will be paying way more than that in taxes.
I was thinking if I went with a Keogh I could at least dump all that money in a retirement fund since the ceiling is higher but I am not too sure if I qualify from an employment point of view for this plan and if I do would I have to pay SS tax and other BS right off the top?
You need to be self-employed to set up a Keogh. It is true you will be taxed on the income if you put it in a Roth, but that money can grow indefinitely w/out any tax consequences to you or your heirs in perpetuity. Over your lifetime a Roth will repay the tax hit a hundred times.

Don't believe everything you think
Jayhawk is offline  
post #8 of 24 (permalink) Old 12-12-2006, 02:48 PM Thread Starter
DP
Moderator
 
DP's Avatar
 
Date registered: Aug 2002
Vehicle: 190E, 400E, SLK350
Location: Chesapeak Bay
Posts: 64,125
Mentioned: 2 Post(s)
Quoted: 991 Post(s)
Lifetime Premium Member
(Thread Starter)
I have TIAA CREF running my 403B, but I can't contribute $$ because I need every penny of my paycheck since I am still renovating my house, raising kids and feeding puppies and other critters. I agree that it will be smarter to contribute but my income from the college is small; I make more whenever I am not working on the house and out there consulting but I can't do everything.
I could sell the house and get close to a million right now but I like my house and the feeling that a poor guy like me can live in a mansion for peanuts. So you see Jay, it's a matter of priorities.
DP is offline  
post #9 of 24 (permalink) Old 12-12-2006, 02:54 PM
BenzWorld Elite
 
BadBenz94's Avatar
 
Date registered: Feb 2003
Vehicle: 2001 Jaguar XJR, 1994 E320(sold)
Location: Kankakee,IL
Posts: 1,849
Mentioned: 0 Post(s)
Quoted: 0 Post(s)
PM me with some info, however I suspect that a Roth would still be your best bet. Yes you can have an active trading account within the confines of the IRS tax shelter that either a standard or Roth IRA will provide. Too as much as I would love 2 be your broker based on the amount, an E-trade or similiar account may be your best bet for costs. However u can still pm me.

My Car WOO HOO...... Now SOLD
New car.... 2001 Jaguar XJR!!!!

When the people fear their government, there is tyranny; when the government fears the people, there is liberty.
Thomas Jefferson
BadBenz94 is offline  
post #10 of 24 (permalink) Old 12-12-2006, 03:07 PM Thread Starter
DP
Moderator
 
DP's Avatar
 
Date registered: Aug 2002
Vehicle: 190E, 400E, SLK350
Location: Chesapeak Bay
Posts: 64,125
Mentioned: 2 Post(s)
Quoted: 991 Post(s)
Lifetime Premium Member
(Thread Starter)
Too poor for your portfolio huh?


Is it possible to open a traditional IRA put in the max then open a Roth and put in another max? (4K in each IRA for a total of 8K).

Last edited by DP; 12-12-2006 at 03:10 PM.
DP is offline  
Sponsored Links
Advertisement
 
Reply

  Mercedes-Benz Forum > General Mercedes-Benz Forums > Off-Topic

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Mercedes-Benz Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











  • Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
     
    Thread Tools
    Show Printable Version Show Printable Version
    Email this Page Email this Page
    Display Modes
    Linear Mode Linear Mode



    Similar Threads
    Topic Author Forum Replies Last Post
    need help here experts... MRLUCKY W126 S,SE,SEC,SEL,SD,SDL Class 1 11-18-2006 05:55 PM
    Need an experts help kylek W202 C-Class 3 07-22-2006 11:56 AM
    What do the experts think? messier11 General Mercedes-Benz 1 03-17-2006 03:49 PM
    Puzzle for the Experts!!! nwg Vintage Mercedes-Benz 1 05-10-2005 05:32 AM
    Emissions Experts? niceride W140 S-Class 6 05-07-2005 04:42 AM

    Posting Rules  
    You may post new threads
    You may post replies
    You may not post attachments
    You may not edit your posts

    BB code is On
    Smilies are On
    [IMG] code is On
    HTML code is Off
    Trackbacks are On
    Pingbacks are On
    Refbacks are On

     

    Title goes here

    close
    video goes here
    description goes here. Read Full Story
    For the best viewing experience please update your browser to Google Chrome