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tax specialist / questions
Old 06-17-2016, 05:55 AM   #1
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tax specialist / questions

1.Anyone have one / use a tax specialist or do you rely on the many choices of software to do your income taxes.

2. Can deferred compensation payouts be sheltered via a solo 401K or any other deferred tax vehicle in the year that the deferred comp is paid ( it's paid as w2 income with auto withholding, presumably it would qualify as earned income and be eligible for some form of sheltering)
I don't believe it can be "rolled over" to a regular 401k. But maybe a solo 401k or solo Roth 401k ?
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Old 06-17-2016, 06:10 AM   #2
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I used Quicken for accounting and TurboTax for doing my taxes.

If you get a W2 or a 1099 (regular income), you can do a IRA or 401K for that year. Deferred income, maybe not. If the income was for a previous year, I do not think it is eligible.

My mega-corp does not withhold 401K amounts on my long-term incentive bonuses which are paid in years after it is allocated, even though the amounts are on my W2 when it is received.
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Old 06-17-2016, 06:28 AM   #3
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Thanks senator. As I was researching, I came across this non qualified deferred comp article but doesn't really talk about how one might be able to shelter those earnings ...

https://www.fidelity.com/viewpoints/retirement/nqdc


You must be getting very close to FIRE... Keep us posted !
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Old 06-17-2016, 07:36 AM   #4
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deleted, see post #9
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Old 06-17-2016, 07:39 AM   #5
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One would think if it qualifies as earned income you should be able to use it to fund an IRA.

Not an expert but did taxes for seven years after retirement, H&R Block and the VITA program. The thing about taxes is things like this out of the ordinary require research and even then if there are no clear answers some degree of logic. There is black and white in the tax code and then there are many shades of grey.
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Old 06-17-2016, 08:41 AM   #6
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try asking in the retirement sub-forum at fairmark.com
Look for an Alan S. response.
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Old 06-17-2016, 09:34 AM   #7
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Quote:
Originally Posted by papadad111 View Post
1.Anyone have one / use a tax specialist or do you rely on the many choices of software to do your income taxes.

2. Can deferred compensation payouts be sheltered via a solo 401K or any other deferred tax vehicle in the year that the deferred comp is paid ( it's paid as w2 income with auto withholding, presumably it would qualify as earned income and be eligible for some form of sheltering)
I don't believe it can be "rolled over" to a regular 401k. But maybe a solo 401k or solo Roth 401k ?


I have researched this question quite a bit as I would love to be able to be able to do this! Alas, everything I have read leads me to conclude that "deferred compensation", while equal to W2 income in terms of income tax liability, it is NOT equal to regular W2 income when it comes to IRA or 401k deferral. Just to double-check, I have also asked my CPA to track this down independently, but I'm afraid, I already know what his answer will be

in any event, I'll post what he says as soon as I get his response
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Old 06-17-2016, 09:38 AM   #8
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I'd discuss this issue with your estate/tax attorney
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Old 06-17-2016, 10:32 AM   #9
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I guess I stand corrected from an earlier post.

See: https://www.irahelp.com/slottreport/...a-contribution

It appears that deferred comp does not even entitle you to an IRA contribution.
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Old 06-17-2016, 09:25 PM   #10
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When I first retired, I simplified my life and was able to use software to do my taxes. Since I started doing overseas contract work again, all my income and assets have become more complex again. For retirement/us income and assets are all kept in a trust and pretty strait forward.... but working income in SE Asia, and previous work and investment income in Middle East and real-estate income from France, Dubai, and now SE Asia has made my returns too complex for me or the Tax Software to handle therefore I work with one of the big Six Accounting Firms - It is sad, because I am a CPA and have a masters in Taxation and a PHD in Fin/Accounting an still can't understand our shitty tax laws and need to hire a whole team to understand it.
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Old 06-18-2016, 07:42 AM   #11
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Big Six? Who are the other two?
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Old 06-18-2016, 07:08 PM   #12
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The big six.


KPMG, Deloitte, Ernst & Young, Grant Thornton, BDO, and PwC
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Old 06-19-2016, 09:12 AM   #13
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GT and BDO are much, much smaller... almost to the point where they hardly count... and that is only looking at their US operations... if you go worldwide then they are even more insignificant though the next four shift around a little.

US Employees/US revenues

Big Four
Deloitte: 56k/$13B
PwC: 35k/$10B
E&Y: 29k/$8B
KPMG: 24k/$6B

Next four
McGladrey: 7k/$1B
GT: 6k/$1B
CBIZ/Mayer Hoffman McCan: 4k/$1B
BDO: 3k/$1B

The Top 10 Accounting Firms In The US
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Old 06-19-2016, 05:56 PM   #14
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Sorry, I guess I need to get a life -
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