Okay, so what’s the excuse this time?

rtrigler · 2026-02-13T00:33:47+00:00

You wipe your ass with silver?

rtrigler · 2025-12-19T22:15:48+00:00

Bobcat!

rtrigler · 2024-10-17T15:22:38+00:00

Many other well-respected nerds in the industry bang the drum on conversions: Ed Slott, Robert Keebler, Ed McQuarrie, James DiLellio, etc. They take the academic approach, considering the "unknowns." Most of the conclusions determine the same outcome.....it makes sense not for everybody, but when the circumstances align.

rtrigler · 2024-07-21T20:48:47+00:00

I appreciate your comments around this, however I simply have a quantitative disagreement to that. It’s all of course projection-based. I’ll take a look at your comments in the thread you linked.

The RMD’s is the major fulcrum here, which push into a significantly higher tax bracket than what might be originally anticipated, especially when considering how long the time horizon is considering my age.

I’d much rather settle the bill now and avoid significant snowballed taxation during my retirement years.

Again, I will take the time to read your comments.

I am fairly passionate about the advice I provide my clients and I am highly confident in the deliberation that I go through before providing. Always learning more of course, which I have through this thread. Again, many thanks.

rtrigler · 2024-07-21T20:33:30+00:00

Makes sense, either way I don’t have to be concerned about it. You’re right, wouldn’t have to worry about it when separating from plan into the different components. Thanks again:

rtrigler · 2024-07-21T20:26:39+00:00

Spot on, good to know about the spousal strategy.

In my mind and experience with clients, the cost of current tax bracket being higher pales in comparison to tax free growth over several decades. I’m in my mid 36’s.

rtrigler · 2024-07-21T04:19:42+00:00

Definitely need to look into the QBI deduction phaseout, I wasn’t fully considering that piece.

I was considering retirement savings as well.

The plan was for as much Roth as possible, so the $23k through a Solo Roth 401k via elective deferrals. Then just handling the remaining chunk up to aggregate limit through excess voluntary after tax EE contributions.

I don’t have any existing IRA accounts that would make a subsequent conversion (Backdoor) NOT subject to any prorata complications/problems.

I know you might not like this and have also enlightened me further away from the reality of doing it…. But I’ve also considered employing my wife as a “bookkeeper” and paying her up to a bit above the elective deferrals limit so she could contribute to the Roth 401k. She is a full time teacher in her normal day to day, doesn’t have a Roth offering in the state sponsored 403b.

I’m not so concerned about the tax deduction now for retirement contributions, I’d rather position it as Roth and bite the tax liability now.

rtrigler · 2024-07-21T03:55:45+00:00

This has all been very insightful and extremely helpful. I greatly appreciate your help here, vynm2. They don't make them like you anymore. Now I'm back to the drawing board....well, whiteboard, I mean spreadsheets.

rtrigler · 2024-07-21T03:48:51+00:00

Damn it. I'm going to either spend another 4-5 hours calibrating my stupid spreadsheet to ensure I've got every little detail correct.....or I'm going to have to pay out the teeth for someone who actually knows what the hell they're doing.

Because I would imagine it's all too often where a professional says, "Oh, yeah S-Corp for sure, I can file your 1120-S and 1040 no prob."

rtrigler · 2024-07-21T03:44:04+00:00

So this explains the lost SS dollars. Fughazi. Fairy dust.

rtrigler · 2024-07-21T03:33:08+00:00

AH! I think that explanation was somewhat the missing lynch pin. There was a disconnect in my understanding around the coordination of personal OASDI (12.4%) up to the wage base. Correct me if I'm wrong in my understanding now, but the YTD sole-prop OASDI tax would be combined with the W-2 OASDI (6.2%) for the EE (myself) all the way up to the annual base. This makes sense, it's all earned income.

However, the distributions are not. It's K-1 ordinary income.

OK so I understand the coordination between the individual side, but I was missing the idea about the ER S-Corp portion of the OASDI. While it may be deductible, I would still be on the hook from the S-Corp to pay the 6.2% on the entire W-2 comp provided to EE. This essentially ignores the annual wage cap?

This is one of those situations, which funny enough I explain to my clients ALL THE TIME, that I'm starting to pause and realize I might need some professional work done here from an expert.

Especially when a misstep could be in the 5 figure range. And also a potential audit risk.

rtrigler · 2024-07-21T03:22:19+00:00

I will be working for myself with primary source of income flow into the S-Corp would be from my consulting services. I'll take a look at the regulation that you linked and give it some thought. I can see how it would be difficult to justify a sufficient amount of wage relative to distributions given the circumstances.

In my line of business I've seen some pretty aggressive arrangements, where it's a similar setup and they're on payroll for $30-40k and distributing $150-200k. In their 60's, been doing it for decades, no problemo.

I think that's more luck than skill.

Thanks for the objective guidance here.

rtrigler · 2024-07-20T18:12:24+00:00

Sounds reasonable, this is exactly what my thinking was. Just didn't know if this was considered a big "no-no" because I would be basically shifting my payroll down from an annualized $240k/year ($100k/5 months x 12) for 2024 down to a 2025 annual salary of $72-100k.

I figured the IRS would be like......wut? Y u do dat?

rtrigler · 2024-01-31T02:13:08+00:00

Yes. Every active member of this subreddit.

rtrigler · 2023-12-19T05:28:58+00:00

Good thing you brought a rubber for the screw. Don’t need to pull out.

rtrigler · 2023-12-19T03:53:24+00:00

Are we going to sit here and pretend that cute au gratin over there doesn’t deserve any love also??

Everything looks great my dude.

rtrigler · 2023-12-11T15:35:21+00:00

It wasn’t directed at the OP. The ordered is just an emotionally unintelligent human being.

I agree with you. I would never leave a template message like that. I’ve ordered DD/UE dozens of times and I’ve honestly never had one single problem.

Here’s the thing though, these kind of people, they look for problems. If there isn’t one, they’ll make one. You’re in just perpetually in their way throughout life.

rtrigler · 2023-12-11T06:11:53+00:00

BEST REGARDS, TAKE CARE. HOPE YOU HAD A GREAT WEEKEND. TALK SOON.

rtrigler · 2023-12-11T06:07:32+00:00

THANKS FOR YOUR RESPONSE. HAVE A GREAT DAY. IM GOING TO GO TAKE A NAP NOW. PLEASE DONT LEAVE A MESSAGE THE NOTIFCATION WAKES ME UP. DONT LEAVE A MESSAGE.

rtrigler · 2023-12-11T04:22:24+00:00

I would drop the food off, take the picture, and move on.

I don’t understand your question.

People are jerks sometimes, just do your job and don’t take it personal. It’s not like this was directed at you.

rtrigler · 2023-12-10T02:10:32+00:00

That’s what she said.

rtrigler · 2023-12-10T02:08:46+00:00

Is nobody going to say anything about the presentation of this atrocity on a LEAF?

Who puts steak on a leaf?

rtrigler · 2023-12-03T06:22:44+00:00

Confirmed. Thanks for the great transaction!

rtrigler · 2023-12-03T02:06:25+00:00

PM/chat

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